Company: FLDDW
Filing Date: 2025-04-11
Form Type: 424B3
Source: 0001213900-25-031004
Chunk: 237

Company: Fold Holdings, Inc.
Filing Date: 2025-04-11
Form: 424B3
Chunk 237
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 shares. Although the number of shares will be variable,
the Investor will receive a fixed monetary value equal to the fixed contract price. Because at inception the final settlement amount that
Fold is obligated to deliver represents a fixed monetary amount (regardless of the share price determined at delivery), the Company determined
that these SAFEs should be classified as liabilities pursuant to ASC 480-10-25-14(a).

Issuance costs related to the SAFEs are expensed
in the period incurred. Refer to Note 8 for further information on the Company’s issued SAFEs as of December 31, 2024 and 2023.

On February 14, 2025, upon finalization of the
Merger Agreement with FTAC Emerald, all SAFE notes held by the Company converted into common shares.

<div align='center'>F-13

Fold, Inc.

Notes to Financial Statements</div>

Convertible note, net and warrants

In December 2024, the Company entered into a Securities
Purchase Agreement (the “SPA”) with an institutional investor (the “Investor”) for the sale of Senior Secured
Convertible Notes which are convertible into shares of the Company’s common stock.

The Company has accounted for the December 2024
Initial Investor Note and the Investor Warrants using the relative fair value allocation method on the date of issuance. Further, the
Company concluded that the Investor’s right to acquire the Additional Investor Note is separately exercisable from the December
2024 Initial Investor Note and the Investor Warrants. Refer to Note 9 for further information.

The Company’s debt instruments contain a
host liability, freestanding warrants, and an embedded conversion feature. The Company uses the guidance under FASB ASC Topic 815 Derivatives
and Hedging (“ASC 815”) to determine if the embedded conversion feature must be bifurcated and separately accounted for as
a derivative under ASC 815. It also determines whether any embedded conversion features requiring bifurcation and/or freestanding warrants
qualify for any scope exceptions contained within ASC 815. Generally, contracts issued or held by a reporting entity that are both (i)
indexed to its own stock, and (ii) classified in shareholders equity, would not be considered a derivative for the purposes of applying
ASC 815. Any embedded conversion features and/or freestanding warrants that do not meet the scope exception noted above are classified
as derivative liabilities, initially measured at fair value, and remeasured at fair value each reporting