Company: FLDDW
Filing Date: 2025-01-24
Form Type: 424B3
Source: 0001213900-25-006075
Chunk: 482

Company: Fold Holdings, Inc.
Filing Date: 2025-01-24
Form: 424B3
Chunk 482
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 recorded as a reduction in the transaction price of the related revenue earned — see Revenue recognitionbelow. Marketing Rewards are recorded as a marketing expense within operating expenses. The liability is initially recorded at the fair value of the bitcoin earned upon the action by the user and subsequently marked to fair value until redeemed or reversed, with gains and losses on this liability recorded within gain (loss) on customer rewards liability in our accompanying statements of operations. The liability is derecognized when the Reward is redeemed by the user and delivered to the user’s bitcoin wallet. Per the terms and conditions of the Fold Rewards Program, Rewards are subject to adjustment for chargebacks, returns, refunds, or other circumstances. In addition, Rewards are subject to expiry if users fail to maintain an active account for more than twelve consecutive months. The Company estimates the amount of Rewards that will expire based on historical data, current user trends, and other factors and records those estimated amounts in the period those Rewards were earned. These accruals are accounted for as an adjustment to the transaction price of the original revenue transaction if the expiration relates to Revenue Rewards, or as contra -expensewithin marketing expense if the expiration relates to Marketing Rewards. Derivatives As our customer rewards liability results in an obligation to deliver a fixed amount of digital assets in the future, the Company has determined that it meets the definition of a derivative and marked it to fair value as discussed above. The Company has not designated this derivative instrument as a hedging instrument. As of September 30, 2024 and December 31, 2023, the notional amount of the customer rewards liability outstanding was 100 and 126 bitcoin, respectively, and the derivative instrument was valued at $6.4 million and $5.3 million, respectively, within ‘Customer rewards liability’ on our accompanying balance sheets. For the nine months ended F-35

Fold, Inc.
Notes to Unaudited Condensed Financial Statements 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.) September 30, 2024 and 2023, the Company recorded a loss of $2.3 million and $2.3 million, respectively, on the remeasurement of this liability. For more detail on the fair value measurement of this derivative instrument, refer to Note 12. Recently adopted accounting pronouncements For the nine months ended September 30, 2024, there were no significant changes to the recently adopted accounting pronouncements applicable to us from those disclosed in Note 2 to the financial statements included