Company: FLDDW
Filing Date: 2025-03-28
Form Type: 10-K
Source: 0001013762-25-004107
Chunk: 292

Company: Fold Holdings, Inc.
Filing Date: 2025-03-28
Form: 10-K
Item: Item 1A
Chunk 292
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 announcements
as negative, the market price of our common stock may decline. Even if intellectual property claims are meritless, do not result in litigation
or are resolved in our favor, these claims, and the time and resources necessary to resolve them, could divert the resources of our management
and require significant expenditures. Any of the foregoing could prevent us from competing effectively and could have an adverse effect
on our business, operating results, and financial condition.

52

Our platform contains third-party open source software components,
and failure to comply with the terms of the underlying open source software licenses could harm our business.

Our technology platform includes software licensed
to us by third-party authors under “open source” licenses. Use and distribution of open source software may entail greater
risks than use of third-party commercial software, as open source licensors generally do not provide support, warranties, indemnification
or other contractual protections regarding infringement claims or the quality of the code. In addition, the public availability of such
software may make it easier for others to compromise our technology or services.

Some open source licenses contain requirements that
we make available source code for modifications or derivative works we create based upon the type of open source software we use, or grant
other licenses to our intellectual property. If we combine our proprietary software with open source software in a certain manner, we
could, under certain open source licenses, be required to release the source code of our proprietary software to the public, be precluded
from charging fees to users of our proprietary software, or be required to license our proprietary software for purposes of making derivative
works. Among other things, this would allow our competitors to create similar offerings with lower development effort and time and ultimately
could result in a loss of competitive advantage. While we try to avoid subjecting our proprietary software to such open-source licenses,
we cannot guarantee we will always be successful, and if we discover any potential open-source issues, we could be required to expend
substantial time and resources to re-engineer some or all of our software.

We have not recently conducted an extensive audit
of our use of open source software and, as a result, we cannot assure you that our processes for controlling our use of open source software
in our platform are, or will be, effective. If we are held to have breached or failed to fully comply with all the terms and conditions
of an open source software license, we could face litigation or other liability, or be required to seek costly licenses from third parties
to continue providing