Company: FLDDW
Filing Date: 2025-03-28
Form Type: 10-K
Source: 0001013762-25-004107
Chunk: 723

Company: Fold Holdings, Inc.
Filing Date: 2025-03-28
Form: 10-K
Item: Item 2
Chunk 723
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31, 2024 
     550,000 

There were no transfers between Levels 1, 2 and
3 during the periods ended December 31, 2024 and 2023.

NOTE 9. INCOME TAXES

The Company’s net deferred tax assets are
as follows: 

    December 31, 

    2024  
    2023 
  
    Deferred tax asset 

      Organizational costs/Start-up costs 
    $2,001,367  
    $1,253,839 
  
      Federal net operating loss 
     —  
     — 
  
    Total deferred tax asset 
     2,001,367  
     1,253,839 
  
    Valuation allowance 
     (2,001,367) 
     (1,253,839)
  
    Deferred tax asset, net of allowance 
    $—  
    $— 

The income tax provision for the years ended December
31, 2024 and 2023 consists of the following:

    December 31, 

    2024  
    2023 
  
    Federal 

      Current 
    $628,508  
    $2,325,087 
  
      Deferred 
     (747,528) 
     (903,665)
  
    State 

      Current 
    $—  
    $— 
  
      Deferred 
     —  
     — 
  
    Change in valuation allowance 
     747,528  
     903,665 
  
    Income tax provision 
    $628,508  
    $2,325,087 

As of December 31, 2024 and 2023, the Company
had a total of $0 of U.S. federal net operating loss carryovers available to offset future taxable income. The federal net operating loss
can be carried forward indefinitely. As of December 31, 2024 and 2023, the Company did not have any state net operating loss carryovers
available to offset future taxable income.

In assessing the realization of the deferred tax assets, management
considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization
of deferred tax assets is dependent upon the generation of future taxable income during the periods