Company: FLDDW
Filing Date: 2025-01-14
Form Type: S-4/A
Source: 0001213900-25-003167
Chunk: 455

Company: Fold Holdings, Inc.
Filing Date: 2025-01-14
Form: S-4/A
Chunk 455
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 within a one -yearperiod. The excess of our digital assets held over the customer reward liability is classified as a long -termasset held for investment. Safeguarding customer digital assets and liabilities On March 31, 2022, the Securities and Exchange Commission issued Staff Accounting Bulletin Number 121 (“SAB 121”), which provides the SEC staff’s view that it would be appropriate for an entity that has an obligation to safeguard digital assets (such as bitcoin) held for platform users to record a liability and corresponding asset on its balance sheet at the fair value of the digital assets. We adopted the guidance in SAB 121 for the period beginning January 1, 2022, which was the first period where this guidance was applicable to our business. We provide custody services on behalf of our customers through unrelated third -partyservice providers, who are qualified custodians. We do not own digital assets held in a custodial capacity on behalf of our customers. We maintain internal record keeping of those assets and are obligated to safeguard the assets. We do not hold the cryptographic key information on behalf of our customers. The qualified custodians used by Fold hold our customer cryptographic key information. For further detail on our safeguarding customer digital assets and liabilities, refer to Note 14. Capitalized software development costs, net The Company capitalizes significant costs incurred in the acquisition or development of the internal software for use in the Company’s various service offerings. The Company incurs costs in developing software inclusive of direct external costs and internal payroll costs. Internal payroll costs typically include salaries and wages. Capitalized software costs are stated at cost net of accumulated amortization. Amortization is provided utilizing the straight -linemethod over the estimated useful life of the software, which is three years. Costs incurred in the preliminary and post -implementationphases of the Company’s internal use software are expensed as incurred. Capitalized software development costs consisted of the following:

|                                             |     |   | December 31, 
         2023 |   |     |   | December 31, 
         2022 |   |
|:--------------------------------------------|:----|:--|-------------:|:--|:----|:--|-------------:|:--|
| Capitalized software, gross carrying amount |     | $ |      747,663 |   |     | $ |      744,070 |   |
| Less: accumulated amortization              |     |   |     (193,897 | ) |