Company: FLDDW
Filing Date: 2025-04-01
Form Type: S-1
Source: 0001213900-25-026537
Chunk: 126

Company: Fold Holdings, Inc.
Filing Date: 2025-04-01
Form: S-1
Chunk 126
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 loss due to the change in fair value of SAFEs. For accounting purposes, outstanding SAFEs are classified as liabilities and the change in their fair value is reflected in the statement of operations. However, Fold’s SAFEs were structured to be settled via the delivery of common and/or preferred shares upon execution of an equity financing or liquidity event. On February 14, 2025, upon finalization of the Merger Agreement with FTAC Emerald, all SAFE notes held by the Company converted into common shares. Interest expense Interest expense primarily consists of amortization of the convertible note discount and issuance costs, as well as interest expense on the convertible note. Other income Other income primarily consists of interest income earned on cash and cash equivalents. Income tax expense The provision for income taxes consists primarily of federal, state and local tax. Our effective tax rate fluctuates from period to period due to changes in the mix of income and losses in jurisdictions with a wide range of tax rates, changes resulting from the amount of recorded valuation allowance, permanent differences between U.S. generally accepted accounting principles and local tax laws, and certain one-time items. 72 Results of operations for the years ended December 31, 2024 and 2023 Results of operations

|                                                    |     | Year Ended December 31, |        2024 |   |     |   |       2023 |   |     |   |           $ 
      Change |   |     |     |      % 
 Change |   |
|:---------------------------------------------------|:----|:------------------------|------------:|:--|:----|:--|-----------:|:--|:----|:--|------------:|:--|:----|:----|-------:|:--|
| Revenues, net                                      |     | $                       |  23,753,148 |   |     | $ | 21,534,032 |   |     | $ |   2,219,116 |   |     |     |     10 | % |
| Operating expenses                                 |     |                         |             |   |     |   |            |   |     |   |             |   |     |     |        |   |
| Banking and payment costs                          |     |                         |  22,472,378 |   |     |   | 20,999,385 |   |     |   |   1,472,993 |   |     |     |      7 | % |
| Cust