Company: FLDDW
Filing Date: 2025-03-28
Form Type: 10-K
Source: 0001013762-25-004107
Chunk: 1792

Company: Fold Holdings, Inc.
Filing Date: 2025-03-28
Form: 10-K
Item: Item 10
Chunk 1792
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488,041 placement warrants were forfeited by our
sponsor in accordance with the terms of the Sponsor Share Restriction Agreement. The 976,081 placement shares became transferable 30 days
after the consummation of the Business Combination in accordance with the terms of the letter agreement.

On January 3, 2024, the
Company and the Sponsors entered into a subscription agreement (the “Subscription Agreement”) with Polar Multi-Strategy Master
Fund (“Polar”) to cover working capital requirements of the Company. Pursuant to the terms and subject to the conditions of
the Subscription Agreement, Polar agreed to contribute up to $550,000 to ESG Funding (the “Polar Contribution”), which
amount was contributed in full as of April 2024. The Polar Contribution shall be repaid upon the closing of an initial business combination.
The Polar Contribution was non-interest bearing and shall be repaid to, and at the election of, Polar (i) in shares of
common stock, at a rate of 1.0 share for each ten dollars ($10.00) of the Polar Contribution funded as of the Closing or (ii) in
cash.

In consideration of the Polar
Contribution, we agreed to issue 1.0 share of Class A Common Stock for each dollar of the Polar Contribution funded as of or prior
to the Closing, which shares shall be subject to no transfer restrictions or any other lock-up provisions, earn outs, or other contingencies.
At December 31, 2024, $550,000 had been funded pursuant to the Polar Contribution, gross of the discount, under the Subscription Agreement.
At the Closing, Polar received 550,000 shares of Class A Common Stock and $550,000 and the Subscription Agreement was terminated.

Promissory Note — Related Party

Prior to the closing of the
initial public offering, our sponsor loaned us $105,260 for expenses related to our formation and the initial public offering. The loan
was non-interest bearing, unsecured and due on the earlier of March 31, 2022 or the closing of the initial public offering. The outstanding
balance under the promissory note of $105,260 was repaid on December 27, 2021 and the promissory note was terminated and is no longer
available to be drawn upon.

Related Party Loans

In order to finance transaction
costs in connection with an initial business combination, our