Company: FLDDW
Filing Date: 2025-03-28
Form Type: 10-K
Source: 0001013762-25-004107
Chunk: 93

Company: Fold Holdings, Inc.
Filing Date: 2025-03-28
Form: 10-K
Item: Item 1
Chunk 93
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 the pool of qualified talent is extremely limited, particularly with respect to executive talent,
engineering, risk management, and financial regulatory expertise. We face intense competition for qualified individuals from numerous
software and other technology companies. To attract and retain key personnel, we incur significant costs, including salaries, benefits
and equity incentives. Even so, these measures may not be enough to attract and retain the personnel we require to operate our business
effectively. The loss of even a few key employees or senior leaders, or an inability to attract, retain and motivate additional highly
skilled employees required for the planned expansion of our business could adversely impact our operating results and impair our ability
to grow.

53

Our culture emphasizes innovation, and if we cannot maintain
this culture, our business and operating results could be adversely impacted.

We believe that our entrepreneurial and innovative
corporate culture has been a key contributor to our success. We encourage and empower our employees to develop and launch new and innovative
products and services, which we believe is essential to attracting high quality talent, partners, and developers, as well as serving the
best, long-term interests of our company. If we cannot maintain this culture, we could lose the innovation, creativity and teamwork that
has been integral to our business. Additionally, from time to time, we realign our resources and talent to implement stage-appropriate
business strategies, including furloughs, layoffs, or reductions in force. In such cases, we may find it difficult to prevent a negative
effect on employee morale or attrition beyond our planned reduction, in which case our products and services may suffer and our business,
operating results, and financial condition could be adversely impacted.

In the event of employee or service provider misconduct or error,
our business may be adversely impacted.

Employee or service provider misconduct or error
could subject us to legal liability, financial losses, and regulatory sanctions and could seriously harm our reputation and negatively
affect our business. Such misconduct could include engaging in improper or unauthorized transactions or activities, misappropriation of
customer funds, insider trading and misappropriation of information, failing to supervise other employees or service providers, improperly
using confidential information, as well as improper trading activity such as spoofing, layering, wash trading, manipulation and front-running.
Employee or service provider errors, including mistakes in executing, recording, or processing transactions for customers, could expose
us to the risk of material losses even if the errors are detected. Although we have implemented processes and procedures and provide trainings