Company: FLDDW
Filing Date: 2025-03-28
Form Type: 10-K
Source: 0001013762-25-004107
Chunk: 1989

Company: Fold Holdings, Inc.
Filing Date: 2025-03-28
Form: 10-K
Item: Item 15
Chunk 1989
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aid on December 27, 2021, and
the promissory note was terminated.  

The Company incurred significant costs in pursuit
of its Business Combination. These conditions raise substantial doubt about the Company’s ability to continue as a going concern.
Management addressed this issue with the consummation of the Business Combination on February 14, 2025, and has raised sufficient capital
for its operations.

In order to finance transaction costs in connection
with its initial Business Combination, the Sponsor or an affiliate of the Sponsor or certain of the Company’s officers and directors
may, but are not obligated to, loan the Company funds as may be required (the “Working Capital Loans”). If the Company completes
the initial Business Combination, the Company expects to repay such loaned amounts out of the proceeds of the Trust Account released to
it. As of December 31, 2024 and 2023, $5,191,767 and $2,025,000 of Working Capital Loans were outstanding, respectively. As a result of
the Business Combination, the Working Capital Loans were repaid.

F-7

FOLD HOLDINGS, INC.

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

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

DECEMBER 31, 2024

On January 13, 2023, the Sponsor agreed to loan
the Company up to $1,500,000 (the “Promissory Note”). The Promissory Note is non-interest bearing and all outstanding amounts
under the Promissory Note will be due on the date on which the Company consummates a Business Combination. No portion of the amounts outstanding
under the Promissory Note may be converted into units at a price of $10.00 per unit, which would have been permissible as described in
the prospectus filed in connection with the Public Offering. On October 16, 2023, the Company and the Lender amended the Promissory Note
to increase the aggregate principal amount of the Promissory Note from $1,500,000 to $3,000,000. All other material terms of the Promissory
Note remain in full force and effect. As of December 31, 2024 and 2023, there was $3,000,000 and $2,025,000 outstanding under the Promissory
Note, respectively. As a result of the Business Combination, the Promissory Note was