Company: FLDDW
Filing Date: 2025-01-14
Form Type: S-4/A
Source: 0001213900-25-003167
Chunk: 294

Company: Fold Holdings, Inc.
Filing Date: 2025-01-14
Form: S-4/A
Chunk 294
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 U.S. federal income tax purposes as a result of the Merger. A Fold U.S. Holder’s aggregate tax basis in the New Fold Common Stock received in exchange for the Fold Common Stock surrendered in connection with the Merger will equal the Fold U.S. Holder’s aggregate adjusted tax basis in the shares of Fold Common Stock exchanged therefor. A Fold U.S. Holder’s holding period in the New Fold Common Stock received will include the holding period for the holder’s shares of Fold Common Stock surrendered in exchange therefor. If a Fold U.S. Holder has acquired different blocks of Fold Common Stock at different times or at different prices, then such holder’s tax basis and holding period in shares of New Fold Common Stock received in the Merger generally should be determined with reference to each block of Fold Common Stock. Any such holders should consult their tax advisors with respect to identifying the bases or holding periods of the shares of New Fold Common Stock received in the Merger. If the Merger is not treated as a “reorganization” within the meaning of Section 368(a) of the Code, then each Fold U.S. Holder generally would recognize gain or loss in an amount equal to the difference between (x) the fair market value of the Emerald Public Shares received and (y) such Fold U.S. Holder’s adjusted tax basis in the shares of Fold Common Stock surrendered therefor. Such capital gain or capital loss generally would be long -termcapital gain or capital loss if the Fold U.S. Holder has held the shares of Fold Common Stock for more than one year. The deductibility of capital losses is subject to limitations. For purposes of the above discussion, Fold stockholders who acquired their Fold Common Stock at different times or for different prices should consult their tax advisors regarding the manner in which gain or loss should be determined in their specific circumstances. 174 Reporting Requirements Each Fold U.S. Holder that receives shares of New Fold Common Stock in the Merger is required to retain permanent records pertaining to the Merger and make such records available to any authorized IRS officers and employees. Such records should specifically include information regarding the number, basis, and fair market value of the Fold Common Stock exchanged and the number of shares of New Fold Common Stock received in exchange therefor. Additionally, Fold U.S. Holders who owned immediately before the Merger (a) at least one percent (by vote or value) of the total outstanding stock of Fold or (b) Fold Common Stock with a tax basis of $1.0 million or more are