Company: FLDDW
Filing Date: 2025-03-28
Form Type: 10-K
Source: 0001013762-25-004107
Chunk: 900

Company: Fold Holdings, Inc.
Filing Date: 2025-03-28
Form: 10-K
Item: Item 4
Chunk 900
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 3, and the sale of 890,000 placement units (the
“Private Placement Units”) at a price of $10.00 per Private Placement Unit in a private placement to the Sponsor, which is
discussed in Note 4 (“Private Placement”).

The underwriter of the Company’s IPO subsequently
provided notice of its election to partially exercise its over-allotment option, and the closing of the issuance and sale of the additional
Units (the “Over-Allotment Option Units”) occurred on January 14, 2022. A total aggregate issuance by the Company of 2,869,342
Over-Allotment Option Units at a price of $10.00 per Over-Allotment Option Unit resulted in total gross proceeds of $28,693,420 to the
Company.

Simultaneously with the issuance and sale of the
Over-Allotment Option Units, the Company consummated the private sale of an additional 86,081 Private Placement Units (the “Additional
Private Placement Units”) at a price of $10.00 per Additional Private Placement Unit to the Sponsor, generating gross proceeds of
$860,810.

Transaction costs related to the Public Offering
and over-allotment amounted to $14,181,568, consisting of $4,973,868 of underwriting commissions, $8,704,270 in deferred underwriting
fees, and $503,430 of other offering costs.

Principles of Consolidation

The accompanying consolidated financial statements
include the accounts of the Company and its wholly owned subsidiary. All significant balances and transactions have been eliminated in
consolidation.

Liquidity
and Going Concern 

As of December 31, 2024, the Company had $906,043 in cash and a working
capital deficit of $8,366,213. Prior to the completion of the Public Offering, the Company’s liquidity needs had been satisfied
through a capital contribution from the Sponsor of $25,000 and a loan to the Company of up to $300,000 by the Company’s Sponsor
under an unsecured promissory note. The outstanding balance under the promissory note of $105,260 was repaid on December 27, 2021, and
the promissory note was terminated.  

The Company incurred significant costs in pursuit
of its Business Combination. These conditions raise substantial doubt about the Company’s ability to continue as a going concern.
Management addressed this issue