Company: FLDDW
Filing Date: 2025-04-11
Form Type: 424B3
Source: 0001213900-25-031004
Chunk: 92

Company: Fold Holdings, Inc.
Filing Date: 2025-04-11
Form: 424B3
Chunk 92
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 foreign tax authorities. Any adverse outcome of such a challenge
could harm our operating results and financial condition. The determination of our worldwide provision for income taxes and other tax
liabilities requires significant judgment and, in the ordinary course of business, there are many transactions and calculations where
the ultimate tax determination is complex and uncertain. Moreover, if we become a multinational business, we may have subsidiaries that
engage in many intercompany transactions in a variety of tax jurisdictions where the ultimate tax determination is complex and uncertain.
Our existing corporate structure and intercompany arrangements have been implemented in a manner we believe is in compliance with current
prevailing tax laws. Furthermore, if we operate in multiple taxing jurisdictions, the application of tax laws can be subject to diverging
and sometimes conflicting interpretations by tax authorities of these jurisdictions. It is not uncommon for taxing authorities in different
countries to have conflicting views with respect to, among other things, the characterization and source of income or other tax items,
the manner in which the arm’s-length standard is applied for transfer pricing purposes, or with respect to the valuation of intellectual
property. The taxing authorities of the jurisdictions in which we operate or may operate may challenge our tax treatment of certain items
or the methodologies we use for valuing developed technology or intercompany arrangements, which could impact our worldwide effective
tax rate and harm our financial position and operating results.

Further, any changes in the tax
laws governing our activities may increase our tax expense, the amount of taxes we pay, or both. For example, the Tax Cuts and Jobs Act
(the “TCJA”), enacted on December 22, 2017, significantly reformed the U.S. federal tax code, reducing the U.S. federal corporate
income tax rate, making sweeping changes to the rules governing international business operations, and imposing new limitations on a number
of tax benefits, including deductions for business interest and the use of net operating loss carryforwards. Effective beginning in 2022,
the TCJA also eliminated the option to immediately deduct research and development expenditures and required taxpayers to amortize domestic
expenditures over five years and foreign expenditures over fifteen years. The Inflation Reduction Act of 2022 (the “Inflation Reduction
Act”), enacted on August 16, 2022, further amended the U.S. federal tax code, imposing a 15% minimum tax on “adjusted financial
statement income” of certain corporations as well as an excise tax on the repurchase or redemption of stock by certain corporations,
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