Company: FLDDW
Filing Date: 2025-01-22
Form Type: S-4/A
Source: 0001213900-25-005202
Chunk: 452

Company: Fold Holdings, Inc.
Filing Date: 2025-01-22
Form: S-4/A
Chunk 452
---
 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 | ) |     |   |     (272,544 | ) |
| Capitalized software, net carrying value    |     | $ |      553,766 |   |     | $ |      471,526 |   |

The gross carrying amount of internally developed software costs that had been capitalized but not placed into service is as follows:

|                                              |     | December 31, 
 2023         |         |     | December 31, 
 2022         |   |
|:---------------------------------------------|:----|:-------------|--------:|:----|:-------------|:--|
| Capitalized software not placed into service |     | $            | 204,370 |     | $            | — |

During the years ended