Company: FLDDW
Filing Date: 2025-03-28
Form Type: 10-K
Source: 0001013762-25-004107
Chunk: 1030

Company: Fold Holdings, Inc.
Filing Date: 2025-03-28
Form: 10-K
Item: Item 5
Chunk 1030
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 2024 and 2023 consists of the following:

    December 31, 

    2024  
    2023 
  
    Federal 

      Current 
    $628,508  
    $2,325,087 
  
      Deferred 
     (747,528) 
     (903,665)
  
    State 

      Current 
    $—  
    $— 
  
      Deferred 
     —  
     — 
  
    Change in valuation allowance 
     747,528  
     903,665 
  
    Income tax provision 
    $628,508  
    $2,325,087 

As of December 31, 2024 and 2023, the Company
had a total of $0 of U.S. federal net operating loss carryovers available to offset future taxable income. The federal net operating loss
can be carried forward indefinitely. As of December 31, 2024 and 2023, the Company did not have any state net operating loss carryovers
available to offset future taxable income.

In assessing the realization of the deferred tax assets, management
considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization
of deferred tax assets is dependent upon the generation of future taxable income during the periods in which temporary differences representing
net future deductible amounts become deductible. Management considers the scheduled reversal of deferred tax liabilities, projected future
taxable income and tax planning strategies in making this assessment. After consideration of all of the information available, management
believes that significant uncertainty exists with respect to future realization of the deferred tax assets and has therefore established
a full valuation allowance. For the year ended December 31, 2024, the change in the valuation allowance was $747,528. For the year ended
December 31, 2023, the change in the valuation allowance was $903,665.

A reconciliation of the federal income tax rate
to the Company’s effective tax rate at December 31, 2024 and 2023 is as follows:

    December 31, 

    2024  
    2023 
  
    Statutory federal income tax rate 
     21.00% 
     21.00%
  
    M&A expenses 
     (11.4)% 
     — 
  
    Change in