Company: FLDDW
Filing Date: 2025-04-11
Form Type: 424B3
Source: 0001213900-25-031004
Chunk: 306

Company: Fold Holdings, Inc.
Filing Date: 2025-04-11
Form: 424B3
Chunk 306
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 | $    | 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 in which temporary differences representing
net future deductible amounts become deductible. Management considers the scheduled reversal of deferred tax liabilities, projected future
taxable income and tax planning strategies in making this assessment. After consideration of all of the information available, management
believes that significant uncertainty exists with respect to future realization of the deferred tax assets and has therefore established
a full valuation allowance. For the year ended December 31, 2024, the change in the valuation allowance was $747,528. For the year ended
December 31, 2023, the change in the valuation allowance was $903,665.

A reconciliation of the federal income tax rate
to the Company’s effective tax rate at December 31, 2024 and 2023 is as follows:

|                                   |     | December 31, |        |    |     |      |       |   |
|                                   |     |         2024 |        |    |     | 2023 |       |   |
| Statutory federal income tax rate |     |              |  21.00 | %  |     |      | 21.00 | % |
| M&A expenses                      |     |              |  (11.4 | )% |     |      |     — |   |
| Change in valuation allowance     |     |              | (60.28 | )% |     |      | 13.35 | % |
| Income tax provision              |     |              | (50.68 | )% |     |      | 34.35 | % |

The Company files income tax returns in the U.S.
federal jurisdiction, in various state and local jurisdictions and is subject to examination by the various taxing authorities, since
inception