Company: FLDDW
Filing Date: 2025-04-01
Form Type: S-1
Source: 0001213900-25-026537
Chunk: 112

Company: Fold Holdings, Inc.
Filing Date: 2025-04-01
Form: S-1
Chunk 112
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SAFEs”) convert to Fold common shares, which, collectively with the Fold historical common shares, are exchanged for New Fold Common Shares and additional paid-in-capital. Additionally, reflects the reclassification of Fold’s previously deferred transaction costs asset to additional paid-in-capital. c) Reflects the reclassification of $51.3 million of cash and cash equivalents held in Emerald’s Trust Account that became available for transaction expenses, redemption of public shares, and the operating activities following the Business Combination. This adjustment does not reflect appreciation of the Trust Account subsequent to December 31, 2024 of approximately $0.1 million. d) Reflects the repayment of Emerald’s balances due to related parties at the Business Combination date. e) Reflects the repayment of Emerald’s promissory note of $0.6 million, net of a fully amortized original issue discount, under its subscription agreement with Polar Multi-Strategy Master Fund (“Polar”). This agreement stipulates the repayment to Polar of its Capital Contribution in cash or shares. This reflects a cash repayment of the Capital Contribution. f) Reflects the payment of Emerald’s deferred advisory fee due at the closing of the Business Combination. g) Reflects the accrual of Emerald and Fold transaction costs of $7.3 million incurred related to the closing of the Business Combination. Transaction costs include direct and incremental costs, such as legal, third party advisory, investment banking, and other miscellaneous fees. Transaction costs previously incurred that are not direct and incremental to the transaction have been included within the historical statement of operations of Emerald and Fold. h) Reflects the cashless exercise of 500,000 Series B Warrant Shares for a nominal exercise price of $0.001 per share available at the closing of the Business Combination. i) Reflects the elimination of Emerald’s historical retained earnings. j) Reflects the reclassification of Fold's convertible note, net balance to long-term liabilities to reflect the change in maturity date to 36 months from the Business Combination. 63 Note 3. Unaudited Pro Forma Condensed Combined Statements of Operations The pro forma adjustments included in the unaudited pro forma condensed combined statements of operations for the year ended December 31, 2024, are as follows: a) Represents the elimination of interest income on Emerald’s Trust Account for the year ended December 31, 2024. b) Represents the recognition of the share-based compensation expense associated with the Restricted Stock Units which will convert to Fold Common Stock immediately prior to the closing of the transaction