Company: FLDDW
Filing Date: 2025-04-11
Form Type: 424B3
Source: 0001213900-25-031004
Chunk: 242

Company: Fold Holdings, Inc.
Filing Date: 2025-04-11
Form: 424B3
Chunk 242
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 any element of financing. For more detail on deferred revenue, refer to Note 3.

Share-based compensation expense

Share-based compensation expense relates to restricted
stock awards (“RSAs”) and restricted stock units (“RSUs”) granted or outstanding during the period. Our RSAs and
RSUs are measured at fair value on the date of grant and recognized as expense in compensation and benefits in the accompanying statements
of operations over the requisite service period if all vesting conditions have been met or, or in the case of liquidity event conditions,
are probable to be met. Expense is recognized on a straight-line basis for awards that vest based solely on a service condition. In addition
to a service condition, RSUs under our equity incentive plan include a performance condition that is satisfied upon certain liquidity
events. We have deferred recognition of expense of RSUs until a liquidity event is probable to occur. The fair value of our RSAs and RSUs
is determined as the most recent valuation price of our common stock on the date of the grant. We account for forfeitures as they occur.
Refer to Note 11 for additional information about share-based compensation.

<div align='center'>F-16

Fold, Inc.

Notes to Financial Statements</div>

Marketing expense

In addition to expense related to the Fold Rewards
Program, the Company incurs marketing expenses for advertising, events and sponsorships, and promotional materials. These amounts are
expensed as incurred and were $0.3 million and $0.2 million for the years ended December 31, 2024 and 2023, respectively.

Other selling, general and administrative expense

Other selling, general and administrative expenses
consist primarily of costs associated with contract labor, computer and internet, insurance, customer support costs, dues and subscriptions,
and travel.

Income taxes

The Company accounts for income taxes using the
asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences
between the financial statement carrying amounts and income tax bases of assets and liabilities and the expected benefits of utilizing
net operating loss and tax credit carryforwards. The deferred tax assets and liabilities are calculated using enacted tax rates in effect
for each taxing jurisdiction in which the Company operates for the year in which those temporary differences are expected to be recovered
or settled. Net deferred tax assets are then reduced by a valuation allowance if the Company believes it more likely than not that such
net deferred tax assets will not be realized. We consider all relevant factors when assessing the likelihood