Company: FLDDW
Filing Date: 2025-01-24
Form Type: 424B3
Source: 0001213900-25-006075
Chunk: 468

Company: Fold Holdings, Inc.
Filing Date: 2025-01-24
Form: 424B3
Chunk 468
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cliff vesting requirement (though some RSUs have been granted with different service -vestingschedules, including without the one -yearcliff), and a performance condition related to the consummation of a liquidity event defined in the award agreements as the first to occur of a change of control or the first sale of common stock pursuant to an IPO. Compensation expense related to the RSUs will be recognized at such time that a liquidity event is effected. Unrecognized compensation expense as of December31, 2023 and 2022, respectively, was $0.8million and $0.1million for the RSUs. The weighted -averageperiod over which unrecognized compensation expense as of December31, 2023 and 2022 will be recognized is not estimable, as the performance condition for the recognition of RSU expense is not considered probable to occur until consummation of a liquidity event. The weighted -averagegrant date fair value during the year ended December31, 2023 was $2.56 per share. Restricted Stock Awards The Company’s awarded RSAs are not subject to any performance condition vesting requirements and are instead subject only to service conditions. We recorded a nominal amount of share -basedcompensation expense related to RSAs for each of the years ended December31, 2023 and 2022, respectively. There was no material unrecognized compensation expense related to RSAs as of December31, 2023, as all unvested shares were F-21

Fold, Inc.
Notes to Financial Statements 10. SHARE-BASED COMPENSATION EXPENSE (cont.) purchased by the Participants at fair value at the time of issuance. There were not any additional RSAs granted during the years ended December31, 2023 and 2022. Share -basedcompensation expense for RSAs is included in compensation and benefits in the accompanying statements of operations. Determination of fair value The initial value of the awards on the dates that the RSUs and RSAs were granted was determined based on the underlying value of the Company’s common stock. As a private company, the common stock was valued by performing an enterprise valuation using a guideline public company market approach method. This method leverages an analysis of publicly traded peers to develop relevant market multiples and ratios applied to the Company’s historical and expected cash flows. RSU and RSA activity The following table summarizes RSU and RSA share activity under the Equity Plan for the years ended December31, 2023 and 2022:

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