Company: FLDDW
Filing Date: 2025-01-22
Form Type: S-4/A
Source: 0001213900-25-005202
Chunk: 355

Company: Fold Holdings, Inc.
Filing Date: 2025-01-22
Form: S-4/A
Chunk 355
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     |   |      1,990 |   |     |   |    150,635 |   |     | NM(i) |          |
| Less: Sales returns and allowances |     |                         |    (15,422 | ) |     |   |    (49,700 | ) |     |   |     34,278 |   |     | (69   | )%       |
| Revenues, net                      |     | $                       | 21,534,032 |   |     | $ | 28,877,975 |   |     | $ | (7,343,943 | ) |     | (25   | )%       |

____________ (i)Not meaningful (“NM”) Total net revenue for the year ended December 31, 2023 decreased by $7.3 million, or 25%, compared to the year ended December 31, 2022.

222 Banking and payments The primary driver behind decreased revenues related to merchant offers within our banking and payments business. In August 2022 and in February 2023 Fold reduced rewards rates for certain merchant offers in an effort to achieve product -levelprofitability on merchant offers. These rate reductions resulted in decreased volumes for some of our largest brands including Amazon, Home Depot, Uber, DoorDash, and Lowe’s, among others. While these rate reductions caused merchant offer volumes to fall, we achieved product -levelprofitability on merchant offers beginning in March 2023 and have remained profitable on merchant offers every month since. Gross revenues from merchant offers decreased 25% from $25.4 million for the year ended December 31, 2022 to $19.1 million for the year ended December 31, 2023. Excluding merchant offers, our gross banking and payments revenues decreased to $2.2 million for the year ended December 31, 2023 compared to $3.5 million for the year ended December 31, 2022. This decrease was driven primarily by increased Revenue Rewards for certain debit card transactions during 2023, specifically category boosts and merchant boosts that provide users with a flat percent reward on each qualifying transaction. As noted above, Revenue Rewards are accounted for as a direct reduction to the transaction price (contra -revenue). Custody and trading In Q2 2023, we transitioned Bitcoin Service Providers from Prime Trust LLC to Fortress Trust LLC to support our custody and trading business. We re -launchedwith Fortress Trust LLC in Q4