Company: FLDDW
Filing Date: 2025-01-14
Form Type: S-4/A
Source: 0001213900-25-003167
Chunk: 490

Company: Fold Holdings, Inc.
Filing Date: 2025-01-14
Form: S-4/A
Chunk 490
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                           |     | $         |  6,371,951 |   |

F-38 Fold, Inc.
Notes to Unaudited Condensed Financial Statements 5. CUSTOMER REWARDS LIABILITY (cont.) Rewards fulfilments represent amounts that were distributed to customers to fulfill customer rewards obligations. 6. RELATED PARTIES On May 31, 2024, the Company entered into a SAFE with Thesis, Inc., a principal shareholder and related party, with aggregate gross proceeds of $1.0 million. 7. SAFEs During the nine months ended September 30, 2024, the Company: •Entered into six SAFEs with various investors with aggregate gross proceeds of $72.1 million; and •Received $1.0 million of proceeds related to a SAFE issued in September 2023 Three of the SAFEs (the “Bitcoin SAFEs”) issued during 2024, totaling $64.1 million, were funded with bitcoin that the Company held in treasury as of September 30, 2024. Two of the Bitcoin SAFEs, totaling $50.0 million (the “Purchase Amount”) stipulate that the Company agrees to use the bitcoin received exclusively for treasury purposes, defined here as holding the bitcoin as a long -terminvestment, and that the Company may not use the bitcoin for operational or any other purposes during the eighteen (18) months beginning from the date of issuance. If there is a Public Offering before the termination of these SAFEs they will automatically convert into a number of shares of New Public Preferred Stock equal to the Purchase Amount divided by the applicable Public Offering Conversion Price. If there is no Public Offering before the termination of these SAFEs, at the written election of the Investor, (A) the Company shall transfer to the Investor the number of Bitcoins that the Investor paid to the Company on account of the Purchase Amount, or (B) the Safe shall be converted into the number of shares of a new series of Preferred Stock of the Company (the “New Private Preferred Stock”), equal to the Purchase Amount divided by the No Public Offering Conversion Price. The remaining terms for the other SAFEs issued in 2024 reflect similar rights to, and obligations of, the Company as historically issued SAFEs. Apart from the aforementioned terms, the SAFEs have no maturity dates and bear no interest. Upon an equity financing, the SAFEs will convert into a variable number of shares dependent on the terms of the individual SAFE, such as the Purchase Amount, Discount Rate, Post -MoneyValuation Cap