Company: FLDDW
Filing Date: 2025-03-28
Form Type: 10-K
Source: 0001013762-25-004107
Chunk: 819

Company: Fold Holdings, Inc.
Filing Date: 2025-03-28
Form: 10-K
Item: Item 3
Chunk 819
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deeming shareholders
to be $838,825 or $0.754 per share. The fair value of the Investor Shares was recorded as an expense with a corresponding credit to additional
paid-in capital. The fair value was determined using the standard closed-form Black Scholes model which is considered to be a Level 3
fair value measurement.

The key inputs into the Black Scholes model for
the Investor Shares were as follows at January 3, 2024:

    Input 
    January 3, 2024 
  
    Risk-free interest rate 
     3.90%
  
    Term (in years) 
     5.0 
  
    Probability of de-SPAC 
     20.0%
  
    Exercise price 
    $11.50 
  
    Public Warrant Price 
    $0.053 

Subscription Agreement

The Company evaluated the accounting for the Subscription
Agreement under ASC 480 “Distinguishing Liabilities from Equity”. The Company concluded that the subscription shares to be
issued as part of the bundled transaction are classified and accounted for as equity. Therefore, the proceeds are required to be allocated
based on the relative fair values of the base instrument of the investment amount and the Common Stock in accordance with the guidance
in ASC 470 “Debt.” On April 2, 2024 and January 2, 2024, Polar contributed a $200,000 Capital Contribution and a $350,000
Capital Contribution, respectively, pursuant to the Subscription Agreement. At December 31, 2024 and 2023, $550,000 and $0 were outstanding
under the promissory note of the subscription agreement, respectively.

The table below summarizes the outstanding promissory note under the
Subscription Agreement as of December 31, 2024:

    Principal value of promissory note January 13, 2024 
    $350,000 
  
    Principal value of promissory note April 2, 2024 
     200,000 
  
    Total promissory notes 
    $550,000 

F-17

FOLD HOLDINGS, INC.

(F/K/A FTAC EMERALD 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