Company: FLDDW
Filing Date: 2025-08-11
Form Type: 424B3
Source: 0001213900-25-074298
Chunk: 163

Company: Fold Holdings, Inc.
Filing Date: 2025-08-11
Form: 424B3
Chunk 163
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critical accounting estimate” is defined as an estimate that meets two criteria: 1.Material impact:The accounting estimate must involve a significant degree of estimation uncertainty and have a material impact on the financial condition or operating performance as presented in the financial statements. 2.Judgment and complexity:The estimate involves a high degree of judgment and complexity, where changes in the assumptions and estimates could significantly alter the financial portrayal of the company’s condition and results. Simple agreements for future equity (“SAFEs”) The Company has issued certain SAFEs, none of which remained outstanding as of March 31, 2025, that grant investors rights to participate in a future equity financing. The number of shares deliverable upon settlement is determined based on the market price of the shares at the settlement date. The Company’s SAFEs are recorded as a liability in the accompanying balance sheets and the Company records subsequent remeasurements in changes in fair value of SAFEs in the statements of operations. Issuance costs related to the SAFEs are expensed in the period incurred. Convertible notes and warrants The Company has accounted for the December 2024 Investor Note and the related Investor Warrants issued using the relative fair value allocation method on the date of issuance. The estimated fair values of the conversion option under the December 2024 Initial Investor Note and Investor Warrants were calculated under a Black -Scholesmodel utilizing the enterprise valuation of Fold’s common shares as of December 31, 2024. The fair value of the December 2024 Investor Note included the fair value of the conversion option as well as the discounted future contractually obligated cash flows under scenarios in which the Company achieved or did not achieve a public offering. The estimated fair value of the March 2025 Investor Note was calculated under a Monte Carlo model as of March 31, 2025. The March 2025 Warrants were calculated under a Black -Scholesmodel utilizing Fold’s stock price as of the issuance date. Stock-based compensation expense Each of the granted RSU’s in historical periods required both service -basedand performance -basedvesting criteria, including the occurrence of a specified liquidity event in order to vest. The liquidity event requirements were met in conjunction with the Merger, and as such the Company recognized stock -basedcompensation expense associated with the outstanding RSU grants vested on that date. The Fold Board of Directors relied on independent third -partyvaluations of Fold Common Stock in determining the fair value of the RSU’s on each grant date. Between grant dates, Fold