Company: FLDDW
Filing Date: 2025-03-28
Form Type: 10-K
Source: 0001013762-25-004107
Chunk: 1288

Company: Fold Holdings, Inc.
Filing Date: 2025-03-28
Form: 10-K
Item: Item 7A
Chunk 1288
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 Unit to the Sponsor, generating gross proceeds of
$860,810.

Transaction costs related to the Public Offering
and over-allotment amounted to $14,181,568, consisting of $4,973,868 of underwriting commissions, $8,704,270 in deferred underwriting
fees, and $503,430 of other offering costs.

Principles of Consolidation

The accompanying consolidated financial statements
include the accounts of the Company and its wholly owned subsidiary. All significant balances and transactions have been eliminated in
consolidation.

Liquidity
and Going Concern 

As of December 31, 2024, the Company had $906,043 in cash and a working
capital deficit of $8,366,213. Prior to the completion of the Public Offering, the Company’s liquidity needs had been satisfied
through a capital contribution from the Sponsor of $25,000 and a loan to the Company of up to $300,000 by the Company’s Sponsor
under an unsecured promissory note. The outstanding balance under the promissory note of $105,260 was repaid on December 27, 2021, and
the promissory note was terminated.  

The Company incurred significant costs in pursuit
of its Business Combination. These conditions raise substantial doubt about the Company’s ability to continue as a going concern.
Management addressed this issue with the consummation of the Business Combination on February 14, 2025, and has raised sufficient capital
for its operations.

In order to finance transaction costs in connection
with its initial Business Combination, the Sponsor or an affiliate of the Sponsor or certain of the Company’s officers and directors
may, but are not obligated to, loan the Company funds as may be required (the “Working Capital Loans”). If the Company completes
the initial Business Combination, the Company expects to repay such loaned amounts out of the proceeds of the Trust Account released to
it. As of December 31, 2024 and 2023, $5,191,767 and $2,025,000 of Working Capital Loans were outstanding, respectively. As a result of
the Business Combination, the Working Capital Loans were repaid.

F-7

FOLD HOLDINGS, INC.

(F/K/A FTAC EMERALD ACQUISITION CORP.)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

DECEMBER 31, 2024

On January 13, 2023, the