Company: FLDDW
Filing Date: 2025-04-11
Form Type: 424B3
Source: 0001213900-25-031004
Chunk: 136

Company: Fold Holdings, Inc.
Filing Date: 2025-04-11
Form: 424B3
Chunk 136
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primarily product and engineering. The Company recorded $14.2 thousand of severance and other related expenses for the year ended December
31, 2024 and $74.6 thousand of severance and other related expenses for the year ended December 31, 2023. As of December 31, 2024, we
employed a total of 28 full time employees.

In 2025 we expect to hire additional staff in
strategic roles to support the launches of our new product lines and continued growth.

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Marketing expenses

Marketing expenses related to the Marketing Rewards
earned under the Fold Rewards Program were $0.2 million for each of the years ended December 31, 2024 and 2023, respectively.

The remaining portion of marketing expenses relates
to traditional advertising and other promotional expenses. These amounts totaled $0.3 million and $0.2 million for the years ended December
31, 2024 and 2023, respectively.

As noted above, to further accelerate growth we
plan to increase investments in paid marketing and affiliate opportunities in 2025, with a budgeted allocation of approximately $3.0 million
for traditional marketing and advertising strategies.

Professional fees

Professional fees increased to $1.9 million for
the year ended December 31, 2024, compared to $0.4 million for the year ended December 31, 2023. This increase was driven primarily by
fees paid to our independent auditors and accounting consultants during 2024 in support of our Merger with FTAC Emerald.

Gain (loss) on customer reward liability and digital assets - rewards treasury

Gain (loss) on customer reward liability and digital
assets - rewards treasury include components of unrealized gains (losses) resulting from the remeasurement gain or loss for the change
in fair value of bitcoin held by Fold for the purposes of fulfilling our customer rewards liability in the current reporting period, as
well as realized gains (losses) that occur upon the fulfillment of customer rewards liabilities. The price of bitcoin was approximately
$16.5 thousand, $42.3 thousand, and $93.4 thousand as of the years ended December 31, 2022, 2023, and 2024, respectively. These price
changes were the primary driver of gains (losses) for both customer rewards liabilities and digital assets - rewards treasury for the
years ended December 31, 2024