Company: FLDDW
Filing Date: 2025-01-22
Form Type: S-4/A
Source: 0001213900-25-005202
Chunk: 550

Company: Fold Holdings, Inc.
Filing Date: 2025-01-22
Form: S-4/A
Chunk 550
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. The Company evaluated the classification and accounting of the stock redemptions under ASC 450, “Contingencies”. ASC 450 states that when a loss contingency exists the likelihood that the future event(s) will confirm the loss or impairment of an asset, or the incurrence of a liability can range from probable to remote. A contingent liability must be reviewed at each reporting period to determine appropriate treatment. The Company evaluated the current status and probability of completing a Business Combination as of September 30, 2024, and concluded that it is probable that a contingent liability should be recorded. As of September 30, 2024, the Company recorded $ 2,122,813of excise tax liability calculated as 1% of shares redeemed on September 19, 2023 and 1% of the shares redeemed on January 19, 2024. On October 31, 2024, the Company filed its 2023 Excise tax return and paid the excise tax of $ 967,916related to the share redemptions that occurred during the period from January 1, 2023 to December 31, 2023. NOTE 3. INITIAL PUBLIC OFFERING On December 20, 2021, the Company consummated its IPO of 22,000,000Units at a purchase price of $ 10.00per Unit. Each Unit consists of oneshare of Class A common stock and one -halfof oneredeemable warrant (the “Public Warrants”). On January 11, 2022, the underwriter partially exercised its over -allotmentoption, resulting in the sale on January 14, 2022 of an additional 2,869,342Units. All the shares of Class A common stock sold as part of the Units in the IPO contain a redemption feature which allows for the redemption of such public shares in connection with the Company’s liquidation, if there is a stockholder vote or tender offer in connection with the Business Combination and in connection with certain amendments to the Company’s certificate of incorporation. In accordance with the guidance in ASC Topic 480, “Distinguishing Liabilities from Equity,” and with the SEC and its staff’s guidance on redeemable equity instruments, which has been codified in ASC 480 -10-S99, redemption provisions not solely within the control of the Company require common stock subject to redemption to be classified outside of permanent deficit. F-80

FTAC EMERALD ACQUIS