Company: FLDDW
Filing Date: 2025-03-28
Form Type: 10-K
Source: 0001013762-25-004107
Chunk: 117

Company: Fold Holdings, Inc.
Filing Date: 2025-03-28
Form: 10-K
Item: Item 1
Chunk 117
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 of the Excise Tax, the interpretation and operation of certain other aspects of the Excise Tax remain unclear.

Because we are a Delaware corporation and our securities
trade on Nasdaq, we are a “covered corporation” for purposes of the Excise Tax. Because the application of the Excise Tax
is not entirely clear, the redemptions effected in connection with the Business Combination may be subject to the Excise Tax. The extent
to which we will be subject to the Excise Tax in connection with such redemptions will depend on a number of factors, including: (i) whether
the redemption is treated as a repurchase of stock for purposes of the Excise Tax, (ii) the fair market value of the redemptions,
(iii) the nature and amount of any PIPE issuances, (iv) the nature and amount of the equity issued by us in connection with
the Business Combination, including the shares issued to Legacy Fold stockholders in the Business Combination (or otherwise issued by
EMLD not in connection with the Business Combination but within the same taxable year of the redemption treated as a repurchase of stock),
and (v) the content of any proposed or final regulations and other guidance from the Treasury.

The imposition of the Excise Tax on us as a result
of such redemptions could reduce the amount of cash available to the Company following the Closing, which could cause investors in our
securities who did not redeem or the other stockholders of the Company to economically bear the impact of any such Excise Tax. 

Item
1B. UNRESOLVED STAFF COMMENTS.

None.

Item
1C. CYBERSECURITY.

Cybersecurity Risk Management and Strategy

We have developed and implemented cybersecurity risk management processes
intended to protect the confidentiality, integrity, and availability of our critical systems and information. While everyone at our company
plays a part in managing cybersecurity risks, primary cybersecurity oversight responsibility is shared by our board of directors, our
audit and compliance committee (“Audit Committee”), and senior management. Our cybersecurity risk management program is integrated
into our overall enterprise risk management program.

Our cybersecurity risk management program includes:

●physical,
                                            technological, and administrative controls intended to support our cybersecurity and data
                                            governance framework, including protections designed to protect the confidentiality, integrity,
                                            and availability of our key information systems and customer, employee, partner, and other
                                            third-party information stored on those systems, such as access controls, encryption