Company: FLDDW
Filing Date: 2025-07-28
Form Type: S-1/A
Source: 0001213900-25-068264
Chunk: 269

Company: Fold Holdings, Inc.
Filing Date: 2025-07-28
Form: S-1/A
Chunk 269
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 the “Investor Notes”), subject to the mutual discretion of Fold and the Investor.

F-22

Fold, Inc.
Notes to Financial Statements 9. SENIOR SECURED CONVERTIBLE NOTES AND WARRANTS (cont.) As of December 31, 2024, the principal amount outstanding under the December 2024 Initial Investor Note was $20.0 million. The Investor Notes are secured by Fold’s assets as collateral, including 300 bitcoin held within Fold’s digital asset Investment Treasury, and mature ten months from the date of issuance, or 36 months from the Public Company Date, if that date has occurred. The Company has included the net balance of the December 2024 Initial Investor Note within current liabilities, as the Public Company Date is not within the Company’s control and cannot be considered probable to occur until the Merger transaction is consummated. The Company has accounted for the December 2024 Initial Investor Note and the Investor Warrants using the relative fair value allocation method on the date of issuance. The estimated fair values of the conversion option under the December 2024 Initial Investor Note and Investor Warrants were calculated under a Black -Scholesmodel utilizing the enterprise valuation of Fold’s common shares as of December 31, 2024. The Company has elected not to subsequently remeasure the convertible note. Further, the Company concluded that the Investor’s right to acquire the Additional Investor Note is separately exercisable from the December 2024 Initial Investor Note and the Investor Warrants. Each of the Investor Notes will be sold at an original issue discount of 5%. The Company’s December 2024 Initial Investor Note was comprised of the following components:

|                                          |     | December 31, 
 2024         |            |     | December 31, 
 2023         |   |
|:-----------------------------------------|:----|:-------------|-----------:|:----|:-------------|:--|
| Senior Secured Convertible Notes         |     | $            | 20,000,000 |     | $            | — |
| Less:                                    |     |              |            |     |              |   |
| Debt discount, net of amortization       |     |              |  6,636,805 |     |              | — |
| Debt issuance costs, net of amortization |     |              |  1,610,290 |     |              | — |
| Convertible debt, net                    |     | $            | 11,752,