Company: FLDDW
Filing Date: 2025-03-28
Form Type: 10-K
Source: 0001013762-25-004107
Chunk: 116

Company: Fold Holdings, Inc.
Filing Date: 2025-03-28
Form: 10-K
Item: Item 1
Chunk 116
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 Warrants as set forth above even if the holders are otherwise unable to exercise the Public
Warrants. Redemption of the outstanding Public Warrants could force you: (i) to exercise your Public Warrants and pay the exercise
price therefor at a time when it may be disadvantageous for you to do so, (ii) to sell your Public Warrants at the then-current market
price when you might otherwise wish to hold your Public Warrants or (iii) to accept the nominal redemption price which, at the time
the outstanding Public Warrants are called for redemption, is likely to be substantially less than the market value of your Public Warrants.

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A 1% U.S. federal excise tax may be imposed on us in connection
with our redemptions of our shares in connection with redemptions pursuant to the Business Combination.

The Inflation Reduction Act, among other things,
generally imposes a 1% U.S. federal excise tax (the “Excise Tax”) on certain repurchases of stock by “covered corporations”
(which include publicly traded domestic (i.e., U.S.) corporations and certain domestic subsidiaries of publicly traded foreign (i.e.,
non-U.S.) corporations). The Excise Tax is imposed on the repurchasing corporation itself, not its stockholders from which the stock is
repurchased. The amount of the Excise Tax is generally 1% of the fair market value of the shares repurchased at the time of the repurchase.
However, for purposes of calculating the Excise Tax, repurchasing corporations are permitted to net the fair market value of certain new
stock issuances against the fair market value of stock repurchases during the same taxable year. In addition, certain exceptions apply
to the Excise Tax. The U.S. Department of the Treasury (the “Treasury”) has authority to provide regulations and other
guidance to carry out, and prevent the abuse or avoidance of, the Excise Tax. On December 27, 2022, the Treasury issued a notice
that provides interim operating rules for the Excise Tax, including rules governing the calculation and reporting of the Excise Tax. The
Treasury issued proposed regulations on April 12, 2024 and final regulations on June 28, 2024, which generally adopt (but in
some respects expand or modify) the rules and guidance set forth in the earlier notice. Although such notice and Treasury regulations
clarify certain aspects