Company: FLDDW
Filing Date: 2025-04-11
Form Type: 424B3
Source: 0001213900-25-031004
Chunk: 258

Company: Fold Holdings, Inc.
Filing Date: 2025-04-11
Form: 424B3
Chunk 258
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 by (ii) 82.5% (rounded down to the nearest whole share). As the Merger satisfied the performance
vesting condition under the RSU awards, 1.4 million RSUs of post-Merger shares vested on the date that Fold Holdings, Inc. became a public
company, resulting in the recognition of share-based compensation expense totaling $4.4 million.

Restricted Stock Awards

The Company’s awarded RSAs are not subject to
any performance condition vesting requirements and are instead subject only to service conditions. We recorded a nominal amount of share-based
compensation expense related to RSAs for the year ended December 31, 2023, and did not recognize any share-based compensation expense
for the year ended December 31, 2024. There was no material unrecognized compensation expense related to RSAs as of December 31, 2024,
as all unvested shares were purchased by the Participants at fair value at the time of issuance. There were not any additional RSAs granted
during the years ended December 31, 2024 or 2023. Share-based compensation expense for RSAs is included in compensation and benefits in
the accompanying statements of operations.

Determination of fair value

The initial value of the awards on the dates that
the RSUs and RSAs were granted was determined based on the underlying value of the Company’s common stock. As a private company,
the common stock was valued by performing an enterprise valuation using a guideline public company market approach method. This method
leverages an analysis of publicly traded peers to develop relevant market multiples and ratios applied to the Company’s historical
and expected cash flows.

RSU and RSA activity

The following table summarizes RSU and RSA share
activity under the Equity Plan for the years ended December 31, 2024 and 2023:

|                                       |     | RSUs |           |   |     | RSAs |          |   |
| Shares nonvested at January 1, 2023   |     |      | 1,583,089 |   |     |      |  700,825 |   |
| Granted                               |     |      |   242,010 |   |     |      |        - |   |
| Vested                                |     |      |         - |   |     |      | (550,367 | ) |
| Forfeited                             |     |      |  (284,123 | ) |     |      |        -