Company: FLDDW
Filing Date: 2025-03-28
Form Type: 10-K
Source: 0001013762-25-004107
Chunk: 717

Company: Fold Holdings, Inc.
Filing Date: 2025-03-28
Form: 10-K
Item: Item 2
Chunk 717
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D ACQUISITION CORP.)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

DECEMBER 31, 2024

Merger Agreement

On July 24, 2024, the Company and Fold, Inc. announced
that they have entered into an Agreement and Plan of Merger by and among the Company, EMLD Merger Sub Inc., a wholly-owned subsidiary
of the Company, and Fold, pursuant to which, among other things, Merger Sub will be merged with and into Fold with Fold surviving the
merger as a wholly-owned subsidiary of the Company.

As a result of the Transactions, Fold will become
a subsidiary of the Company, with the former stockholders of Fold becoming stockholders of the Company.

Consideration

The aggregate consideration to be paid in the
Transactions will consist of shares of the Company’s Class A common stock based on Fold’s pre-money equity value of $365 million.
In the event the 60-volume weighted average price of Bitcoin as of the day immediately prior to the closing of the Merger (the “Closing”)
is greater than $90,000, the aggregated consideration to be paid in the Transactions will be increased by 20% of the increase in value
of the amount of Bitcoin in Fold’s treasury as of July 24, 2024, up to a maximum of $54.75 million. There are no other adjustments
to the consideration amount contemplated in the Merger Agreement.

For a description of the Business Combination
and certain agreements executed in connection therewith, see the Current Report on Form 8-K filed by the Company on July 24, 2024 and
February 14, 2025.

NOTE 7. STOCKHOLDERS’ DEFICIT

Preferred Stock

The Company is authorized to issue 1,000,000 shares
of preferred stock with a par value of $0.0001 per share. As of December 31, 2024 and 2023, there were no shares of preferred stock issued
or outstanding.

Class A Common Stock

The Company is authorized to issue 42,000,000
shares of Class A common stock with a par value of $0.0001 per share. Holders of Class A common stock are entitled to one vote for each
share. Following the Meeting on September 19, 2023, the Sponsor determined to convert all the outstanding shares of Class B common stock
into shares of Class A common stock on a one