Company: FLDDW
Filing Date: 2025-03-28
Form Type: 10-K
Source: 0001013762-25-004107
Chunk: 298

Company: Fold Holdings, Inc.
Filing Date: 2025-03-28
Form: 10-K
Item: Item 1A
Chunk 298
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 application
of such laws, could adversely impact our financial position and operating results.

We are subject to complex tax laws and regulations
in the United States and may become subject to a variety of foreign jurisdictions. All of these jurisdictions have in the past and
may in the future make changes to their corporate income tax rates and other income tax laws which could increase our future income tax
provision. For example, our future income tax obligations could be adversely affected by earnings that are lower than anticipated in jurisdictions
where we have lower statutory rates and by earnings that are higher than anticipated in jurisdictions where we have higher statutory rates,
by changes in the valuation of our deferred tax assets and liabilities, by changes in the amount of unrecognized tax benefits, or by changes
in tax laws, regulations, accounting principles, or interpretations thereof, including changes with possible retroactive application or
effect.

Our determination of our tax liability is subject
to review and may be challenged by applicable U.S. and foreign tax authorities. Any adverse outcome of such a challenge could harm
our operating results and financial condition. The determination of our worldwide provision for income taxes and other tax liabilities
requires significant judgment and, in the ordinary course of business, there are many transactions and calculations where the ultimate
tax determination is complex and uncertain. Moreover, if we become a multinational business, we may have subsidiaries that engage in many
intercompany transactions in a variety of tax jurisdictions where the ultimate tax determination is complex and uncertain. Our existing
corporate structure and intercompany arrangements have been implemented in a manner we believe is in compliance with current prevailing
tax laws. Furthermore, if we operate in multiple taxing jurisdictions, the application of tax laws can be subject to diverging and sometimes
conflicting interpretations by tax authorities of these jurisdictions. It is not uncommon for taxing authorities in different countries
to have conflicting views with respect to, among other things, the characterization and source of income or other tax items, the manner
in which the arm’s-length standard is applied for transfer pricing purposes, or with respect to the valuation of intellectual property.
The taxing authorities of the jurisdictions in which we operate or may operate may challenge our tax treatment of certain items or the
methodologies we use for valuing developed technology or intercompany arrangements, which could impact our worldwide effective tax rate
and harm our financial position and operating results.

Further, any changes in the tax laws governing our
activities may increase our tax expense, the amount of taxes we pay, or both. For example, the Tax C