Company: FLDDW
Filing Date: 2025-03-28
Form Type: 10-K
Source: 0001013762-25-004107
Chunk: 706

Company: Fold Holdings, Inc.
Filing Date: 2025-03-28
Form: 10-K
Item: Item 2
Chunk 706
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, including (i) the fair market value of the redemptions and repurchases in connection with the Business
Combination, extension vote or otherwise, (ii) the structure of a Business Combination, (iii) the nature and amount of any “PIPE”
or other equity issuances in connection with a Business Combination (or otherwise issued not in connection with a Business Combination
but issued within the same taxable year of a Business Combination) and (iv) the content of regulations and other guidance from the Treasury.
The foregoing could cause a reduction in the cash available on hand to complete a Business Combination and in the Company’s ability
to complete a Business Combination.

F-12

FOLD HOLDINGS, INC.

(F/K/A FTAC EMERALD ACQUISITION CORP.)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

DECEMBER 31, 2024

On September 19, 2023, in connection with the
approval of the Charter Amendment at the Meeting, the Company’s stockholders exercised their right to redeem 9,239,192 shares for
a total of $96,791,644. On January 19, 2024, in connection with the approval of the January Charter Amendment at the January Meeting,
the Company’s stockholders exercised their right to redeem 10,872,266 shares for a total of $115,489,643. On December 17, 2024,
in connection with approval and implementation of the Third Charter Amendment at the Third Extension Meeting, the Company’s stockholders
exercised their right to redeem 112,068 shares for a total of $1,234,852. The Company evaluated the classification and accounting of the
stock redemptions under ASC 450, “Contingencies”. ASC 450 states that when a loss contingency exists the likelihood that the
future event(s) will confirm the loss or impairment of an asset, or the incurrence of a liability can range from probable to remote. A
contingent liability must be reviewed at each reporting period to determine appropriate treatment. The Company evaluated the current status
and probability of completing a Business Combination as of December 31, 2024, and concluded that it is probable that a contingent liability
should be recorded. As of December 31, 2024, the Company recorded $1,167,245 of excise tax liability calculated as 1% of shares redeemed
on January 19, 2024 and 1% of the shares