Company: FLDDW
Filing Date: 2025-01-24
Form Type: 424B3
Source: 0001213900-25-006075
Chunk: 470

Company: Fold Holdings, Inc.
Filing Date: 2025-01-24
Form: 424B3
Chunk 470
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         |       — |     |         |  8,727,540 |
| Total liabilities                         |     | $                       | 11,994,609 |     | $       |         — |     | $       | 257,407 |     | $       | 11,737,202 |

F-24

Fold, Inc.
Notes to Financial Statements 13. FAIR VALUE MEASUREMENTS (cont.) The carrying amounts of certain financial instruments, including cash and cash equivalents, accounts receivables, accounts payable and accrued liabilities, and deferred revenue approximate their fair values due to their short -termnature. The fair value of the safeguarding obligation for digital assets and the corresponding safeguarding asset for digital assets was determined using Level 2 inputs which included using the value of the safeguarded asset in the market we determined to be the principal market for the related digital asset as of December 31, 2023 and 2022. Customer rewards liability The customer reward liability is classified as a Level 3 financial instrument within the fair value hierarchy primarily due to the reward forfeiture rate applied to the value of the bitcoin obligation, which is an unobservable input to the fair value measurement. The Company has determined the bitcoin price based on its value in the market we determined to be the principal market for the related digital asset as of December31, 2023 and 2022, which is considered a Level 1 input. The forfeiture rate is then applied to reflect an estimated breakage rate of rewards that have been forfeited based on the contractual terms and conditions of our Rewards Program and historical trends of forfeiture rates on a three -yeartrailing basis. The estimated forfeiture rate applied to our customer rewards liability for the years ended December31, 2023 and 2022 was 10%. Simple Agreements for Future Equity The estimated fair value of the SAFEs (refer to Note 8) is determined based on the aggregated, probability -weightedaverage of the outcomes of certain scenarios, including: (i) equity financing, with conversion of the SAFEs into a number of shares of convertible preferred stock at the lower of the post -moneyvaluation cap price or discount price (ii) liquidity event (change of control, direct listing, or an initial public offering) with mandatory conversion to common stock at the lower of the post -moneyvaluation cap price or discount price and (iii) dissolution event, with SAFE holders automatically entitled to receive cash payments equal to the purchase amount, prior to and in preference to any distribution of