Company: FLDDW
Filing Date: 2025-01-24
Form Type: 424B3
Source: 0001213900-25-006075
Chunk: 209

Company: Fold Holdings, Inc.
Filing Date: 2025-01-24
Form: 424B3
Chunk 209
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 of September 30, 2024 the accounting for the transaction required by U.S. Generally Accepted Accounting Principles (U.S. GAAP) as if the Business Combination and December 2024 Initial Investor Financing transactions were completed as of September 30, 2024. The pro forma condensed combined statements of operations of Emerald and Fold for the nine months ended September 30, 2024 and the year ended December 31, 2023 reflect any corresponding effects of the balance sheet adjustments to the statement of operations assuming those adjustments were made as of the beginning of the period presented. These adjustments are described in the accompanying notes and are based on available information and certain assumptions we believe are reasonable but are subject to change. Emerald and Fold are collectively referred to herein as the “Companies,” and the Companies, subsequent to the Business Combination and the Transactions, are referred to herein as “New Fold”. The Business Combination will be accounted for as a reverse recapitalization because Fold has been determined to be the accounting acquirer under Financial Accounting Standards Board’s Accounting Standards Codification Topic 805, Business Combinations(“ASC 805”) under the minimum redemption, 25% redemption and maximum redemption scenarios. The determination is primarily based on the evaluation of the following facts and circumstances taking into consideration each of the redemption scenarios: •the pre -combinationequityholders of Fold will hold the majority of voting rights in New Fold; •the pre -combinationequityholders of Fold will have the right to appoint the majority of the directors on the New Fold Board; •the senior management of Fold will comprise the senior management of New Fold; and •the operations of Fold will comprise the ongoing operations of New Fold. Under the reverse recapitalization model, the Business Combination will be treated as Fold issuing equity for the net assets of Emerald, with no goodwill or intangible assets recorded. The unaudited pro forma condensed combined information contained herein assumes that Emerald’s shareholders approve the Business Combination. Emerald’s public shareholders may elect to redeem their public shares for cash even if they approve the Business Combination. Emerald cannot predict how many of its public shareholders will exercise their right to have their Class A common stock redeemed for cash. As a result, Emerald has elected to provide the unaudited pro forma condensed combined financial information under three different redemption scenarios, which produce different allocations of total New Fold equity between holders of the common shares. The unaudited pro forma condensed combined financial information has been prepared using the assumptions below with respect to the potential redemption of Emerald Class A Common Stock