Company: FLDDW
Filing Date: 2025-01-22
Form Type: S-4/A
Source: 0001213900-25-005202
Chunk: 360

Company: Fold Holdings, Inc.
Filing Date: 2025-01-22
Form: S-4/A
Chunk 360
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 date and valuation date. Additionally, in the Company’s estimate of the fair value of the Bitcoin SAFEs, the current value of bitcoin was used as an estimate of the future value of a BTC -denominatedpayout. If there is not a Liquidity Event, the SAFE will result in the repayment of the bitcoin contributed at the issuance of the note. To value this scenario, which is weighted at an 18% probability, the Company considered the value of the underlying bitcoin as of the valuation date, reflecting an estimate of the future price. Financial condition Liquidity and Capital Resources Our ability to meet our requirements and plans for cash, including meeting our working capital and capital expenditure requirements, will depend on many factors, including market acceptance of bitcoin, our growth, our ability to attract and retain customers on our platform, the continuing market acceptance of our products and services, the introduction of new products and services on our platform, expansion of sales and marketing activities, and overall economic conditions. We believe that our existing cash and cash equivalents will be sufficient to meet our working capital needs, including any transaction expenditures related to our Merger Agreement with FTAC Emerald Acquisition Corp., for at least the next 12 months. As of September 30, 2024, we had approximately $18.4 million of available liquidity, comprised of $4.4 million of cash and cash equivalents and $14.0 million of unencumbered bitcoin treasury assets. During the nine months ended September 30, 2024, we entered into SAFEs to raise $20.1 million of operational capital. We may continue to pursue additional capital via SAFEs or other instruments in the future, however, such funding may not be available on terms acceptable to us or at all. As of September 30, 2024, we held bitcoin assets in excess of our existing customer rewards liability, which is denominated in bitcoin. We anticipate being able to cover the costs for future rewards via future revenues and operational capital on hand. As of September 30, 2024, we held no debt instruments. For accounting purposes, outstanding SAFEs are classified as liabilities. However, these agreements are structured to be settled via the delivery of common and/or preferred shares upon execution of an equity financing event. If a liquidity event occurs, the investors have the option of settling in the delivery of common and/or preferred shares or a cash payment. In June 2024, we entered into SAFEs to raise $50.0 million, and in July 2024, we