Company: FLDDW
Filing Date: 2025-01-24
Form Type: 424B3
Source: 0001213900-25-006075
Chunk: 460

Company: Fold Holdings, Inc.
Filing Date: 2025-01-24
Form: 424B3
Chunk 460
---
ouncements In June 2016, the FASB issued Accounting Standards Update (“ASU”) 2016 -13, Financial Instruments — Credit Losses(“ASC 326”). This new standard, as amended, changes how companies account for credit impairment for trade and other receivables as well as changing the measurement of credit losses for most financial assets and certain other instruments (excluding operating leases) that are not measured at fair value through net income. ASC 326 replaced the current “incurred loss” model with an “expected loss” model. Under the “incurred loss” model, a loss (or allowance) is recognized only when an event has occurred (such as a payment delinquency) that causes the entity to believe that a loss is probable (i.e., that it has been “incurred”). Under the “expected loss” model, a loss (or allowance) is recognized upon initial recognition of the asset that reflects all future events that leads to a loss being realized, regardless of whether it is probable that the future event will occur. The “incurred loss” model considers past events and current conditions, while the “expected loss” model includes expectations for the future which have yet to occur. This standard prescribes that financial assets (or a group of financial assets) should be measured at amortized cost basis to be presented at the net amount expected to be collected based on relevant historical information from historical experience, adjusted for current conditions and reasonable and supportable forecasts that affect collectability. Credit losses relating to these financial assets are recorded through an allowance for credit losses. The Company adopted ASC 326, along with its related clarifications and amendments, on January 1, 2023, with no material impact on its financial statements. Results for reporting periods prior to 2023 continue to be presented in accordance with previously applicable U.S. GAAP, while results for subsequent reporting periods are presented under ASC 326. In February 2016, the FASB issued ASU 2016 -02, Leases(Topic 842), followed by other related ASUs that provided targeted improvements and additional practical expedient options (collectively “ASC 842”). The Company adopted ASC 842 on January 1, 2022 using the modified retrospective method whereby previously reported periods continue to be reported in accordance with historical accounting guidance for leases that were in effect for those prior periods. Policy elections and practical expedients that the Company has implemented as part of adopting ASC 842 include (a) excluding from the balance sheet