Company: FLDDW
Filing Date: 2025-03-28
Form Type: 10-K
Source: 0001013762-25-004107
Chunk: 133

Company: Fold Holdings, Inc.
Filing Date: 2025-03-28
Form: 10-K
Item: Item 1
Chunk 133
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 those estimates. We
have identified the following as our critical accounting policies and estimates:

Class A Common Stock Subject to Possible Redemption

We account for our Class A common stock subject
to possible redemption in accordance with the guidance in Accounting Standards Codification (“ASC”) Topic 480, “Distinguishing
Liabilities from Equity.” Class A common stock subject to mandatory redemption is classified as a liability instrument and is measured
at fair value. Conditionally redeemable common stock (including common stock that features redemption rights that are within the control
of the holder or subject to redemption upon the occurrence of uncertain events not solely within the Company’s control) is classified
in temporary equity. At all other times, common stock is classified as stockholders’ equity. Our Class A common stock sold in the
Public Offering and over-allotment feature certain redemption rights that are considered to be outside of our control and subject to the
occurrence of uncertain future events. Accordingly, as of December 31, 2024 and 2023, 4,645,816 and 15,630,150 shares of Class A common
stock are presented at redemption value as temporary equity, outside of the stockholders’ deficit section of our balance sheets,
respectively.

We recognize changes in redemption value immediately
as they occur and adjust the carrying value of Class A common stock to equal the redemption value at the end of each reporting period.
Increases or decreases in the carrying amount of redeemable Class A common stock are affected by charges against additional paid in capital
and accumulated deficit. This method would view the end of the reporting period as if it were also the redemption date for the security.

Net (Loss) Income Per Common Share

We historically had two classes of shares, which
are referred to as Class A common stock and Class B common stock. Earnings and losses are shared pro rata between the two classes of shares.
Accretion associated with the redeemable shares of Class A common stock is excluded from earnings per share as the redemption value approximates
fair value. We have not considered the effect of the warrants in the calculation of diluted net (loss) income per share, if any, since
their exercise is contingent upon future events. As a result, diluted net (loss) income per share of common stock is the same as basic
net (loss) income per share of common stock.

Recent Accounting Standards

Management does not believe that any recently
issued, but not yet effective, accounting standards, if currently adopted, would have a