Company: FLDDW
Filing Date: 2025-01-22
Form Type: S-4/A
Source: 0001213900-25-005202
Chunk: 473

Company: Fold Holdings, Inc.
Filing Date: 2025-01-22
Form: S-4/A
Chunk 473
---
 litigation as of December 31, 2023 or 2022 and accordingly, has not made any accrual related to legal proceedings in the Company’s balance sheets.

F-22

Fold, Inc.
Notes to Financial Statements 12. INCOME TAXES Income tax (benefit) expense consists of:

|                              |     |   | December 31, 
         2023 |     |   | December 31, 
         2022 |
|:-----------------------------|:----|:--|-------------:|:----|:--|-------------:|
| Federal current tax expense  |     | $ |            — |     | $ |            — |
| State current tax expense    |     |   |       10,242 |     |   |       10,715 |
| Total current tax expense    |     |   |       10,242 |     |   |       10,715 |
| Federal deferred tax expense |     |   |            — |     |   |            — |
| State deferred tax expense   |     |   |            — |     |   |            — |
| Total deferred tax expense   |     |   |            — |     |   |            — |
| Total tax expense            |     | $ |       10,242 |     | $ |       10,715 |

Income tax (benefit) expense differs from the amounts computed by applying the applicable U.S. federal income tax rate of 21% as a result of the following:

|                                                  |     |   | December 31, 
         2023 |   |     |   | December 31, 
         2022 |   |
|:-------------------------------------------------|:----|:--|-------------:|:--|:----|:--|-------------:|:--|
| Income tax expense at the federal statutory rate |     | $ |   (1,504,180 | ) |     | $ |   (2,342,161 | ) |
| Non-deductible/non-taxable items                 |     |   |      295,266 |   |     |   |      209,457 |   |
| State taxes                                      |     |   |     (241,365 | ) |     |   |     (432,733 | ) |
| True-up                                          |     |   |        6,967 |   |     |   |        6,600 |   |
| Rate change