Company: FLDDW
Filing Date: 2025-01-24
Form Type: 424B3
Source: 0001213900-25-006075
Chunk: 469

Company: Fold Holdings, Inc.
Filing Date: 2025-01-24
Form: 424B3
Chunk 469
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            — |   |
| Capitalized software                       |                |   |       (7,487 | ) |     |   |      (29,180 | ) |
| Total deferred tax liabilities             |                |   |     (560,076 | ) |     |   |      (29,180 | ) |
| Net deferred tax asset (liability)         |                | $ |            — |   |     | $ |            — |   |

F-23

Fold, Inc.
Notes to Financial Statements 12. INCOME TAXES (cont.) As of December 31, 2023 and 2022, the Company had $6.1 million and $4.6 million in net deferred tax assets, respectively. At each reporting date, management considers new evidence, both positive and negative that could affect its view of the future realization of deferred tax assets. On the basis of this evaluation, only the portion of the deferred tax asset that is more likely than not to be realized was recognized. However, if the Company is not able to generate sufficient taxable income from its operations in the future, then a valuation allowance to reduce the Company’s U.S. deferred tax assets may be required, which would increase the Company’s expenses in the period the allowance is recognized. As of December 31, 2023 and 2022, the Company recorded a valuation allowance of $6.1 million and $4.6 million, respectively. As of December 31, 2023 and 2022, the Company has federal net operating losses of $15.1 million and $8.7 million, respectively, which do not expire. Utilization of the net operating losses may be subject to annual limitations due to the “change in ownership” provisions of the Internal Revenue Code of 1986 under Section 382. As of December 31, 2023, the Company has state net operating loss carryforwards of $16.2 million, of which $1.7 million do not expire and $14.5 million expire in various jurisdictions in 2036 through 2042. As of December 31, 2022, the Company has state net operating loss carryforwards of $11.8 million, of which $1.2 million do not expire and $10.6 million expire in various jurisdictions in 2036 through 2043. As of December 31, 2023 and 2022, the Company did not have any unrecognized tax benefits. To the