Company: FLDDW
Filing Date: 2025-04-11
Form Type: 424B3
Source: 0001213900-25-031004
Chunk: 243

Company: Fold Holdings, Inc.
Filing Date: 2025-04-11
Form: 424B3
Chunk 243
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 of future realization of
our deferred tax assets, including our recent earnings experience by jurisdiction, expectations of future taxable income, and the carryforward
periods available to us for tax reporting purposes, as well as assessing available tax planning strategies. The effect on deferred tax
assets and liabilities of an enacted change in tax rates is recognized in the consolidated statements of operations in the period that
includes the enactment date. Due to inherent complexities arising from the nature of our businesses, future changes in income tax law,
or variances between our actual and anticipated operating results, we make certain judgments and estimates. Therefore, actual income taxes
could materially vary from these estimates.

When the tax law requires interest to be paid
on an underpayment of income taxes, the Company recognizes interest expense from the first period the interest would begin accruing according
to the relevant tax law. Interest and penalties related to unrecognized tax benefits are recognized within provision for income taxes.
We recognize in our consolidated financial statements the impact of a tax position, if that position is more likely than not to be sustained
upon an examination, based on the technical merits of the position.

Recently adopted accounting pronouncements

In November 2023, the FASB issued ASU 2023-07,
Segment Reporting (Topic 280), which requires enhanced segment disclosures primarily focusing on significant segment expense disclosures
for both interim and annual periods. ASU 2023-07 is effective for annual periods beginning after December 15, 2023, and interim periods
within fiscal years beginning after December 15, 2024, with early adoption permitted and requires modified retrospective transition method.
The Company adopted ASU 2023-07 as of January 1, 2024. Refer to Segment information within this Note 2 above for further information.

On January 30, 2025, the SEC issued Staff Accounting
Bulletin Number 122 (“SAB 122”), which rescinds SAB 121 and the obligation to record a safeguarding asset and liability for
digital assets that an entity custodies on behalf of its customers. SAB 122 provides the SEC staff’s view that it would instead
be appropriate for an entity that has an obligation to safeguard digital assets (such as bitcoin) to determine whether to recognize a
liability related to the risk of loss under such an obligation, and if so, the measurement of such a liability, by applying the recognition
and measurement requirements for liabilities arising from contingencies in FASB Subtopic 450-20. Entities