Company: FLDDW
Filing Date: 2025-01-22
Form Type: S-4/A
Source: 0001213900-25-005202
Chunk: 484

Company: Fold Holdings, Inc.
Filing Date: 2025-01-22
Form: S-4/A
Chunk 484
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 in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, and expenses, as well as related disclosure of contingent assets and liabilities. The Company bases its estimates on historical experience and on assumptions that the Company believes are reasonable; however, actual results could significantly differ from those estimates. The Company evaluates these estimates on an ongoing basis. Estimates, judgments, and assumptions in these financial statements include, but are not limited to, those related to the determination of the recognition, measurement, and valuation of current and deferred income taxes; the fair value of performance stock -basedawards issued; the useful lives and impairment assessment of long -livedassets; allowance for credit losses; the fair value of safeguarding customer digital assets and liabilities; the fair value of customer reward liability derivative instruments; the fair value of Simple Agreements for Future Equity (“SAFEs”); and loss contingency identification and valuation, including assessing the likelihood of adverse outcomes from positions, claims, and disputes, recoveries of losses recorded, and associated timing. Capitalized software development costs, net The Company capitalizes significant costs incurred in the acquisition or development of the internal software for use in the Company’s various service offerings. The Company incurs costs in developing software inclusive of direct external costs and internal payroll costs. Internal payroll costs typically include salaries and wages. Capitalized software costs are stated at cost net of accumulated amortization. Amortization is provided utilizing the straight -linemethod over the estimated useful life of the software, which is three years. Costs incurred in the preliminary and post -implementationphases of the Company’s internal use software are expensed as incurred. Capitalized software development costs consisted of the following:

|                                             |     |   | September 30, 
          2024 |   |     |   | December 31, 
         2023 |   |
|:--------------------------------------------|:----|:--|--------------:|:--|:----|:--|-------------:|:--|
| Capitalized software, gross carrying amount |     | $ |     1,257,714 |   |     | $ |      747,663 |   |
| Less: accumulated amortization              |     |   |      (401,797 | ) |     |   |     (193,897 | ) |
| Capitalized software, net carrying value    |     | $ |       855,917 |   |     | $ |      553,766 |