Company: FLDDW
Filing Date: 2025-04-11
Form Type: 424B3
Source: 0001213900-25-031004
Chunk: 132

Company: Fold Holdings, Inc.
Filing Date: 2025-04-11
Form: 424B3
Chunk 132
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 value of bitcoin held by Fold in our Rewards
Treasury in the current reporting period as well as realized gains (losses) that occur upon the fulfillment of Rewards. Management has
determined that gains or losses on digital assets held for the purposes of rewards redemptions are related to its core operations, and
therefore classifies all gains and losses on the remeasurement of these digital assets as an operating income or expense in its financial
statements.

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Other selling, general and administrative expenses

Other selling, general and administrative expenses
consist primarily of costs associated with contract labor, computer and internet, insurance, customer support costs, dues and subscriptions,
and travel.

Other income (expense)

Gain (loss) on digital assets - investment treasury

Gain (loss) on digital assets - investment treasury
includes components of unrealized gains (losses) resulting from the remeasurement in fair value of bitcoin held by Fold with the intention
to hold as a long-term investment in the current reporting period. Management has determined that gains or losses on digital assets held
as a long-term investment are not related to its core operations, and therefore classifies all gains and losses on the remeasurement of
these digital assets as a non-operating income or expense in its financial statements.

Change in fair value of SAFEs

Change in fair value of SAFEs results from unrealized
gain or loss due to the change in fair value of SAFEs. For accounting purposes, outstanding SAFEs are classified as liabilities and the
change in their fair value is reflected in the statement of operations. However, Fold’s SAFEs were structured to be settled via the delivery
of common and/or preferred shares upon execution of an equity financing or liquidity event. On February 14, 2025, upon finalization of
the Merger Agreement with FTAC Emerald, all SAFE notes held by the Company converted into common shares.

Interest expense

Interest expense primarily consists of amortization
of the convertible note discount and issuance costs, as well as interest expense on the convertible note.

Other income

Other income primarily consists of interest income
earned on cash and cash equivalents.

Income tax expense

The provision for income taxes consists primarily
of federal, state and local tax. Our effective tax rate fluctuates from period to period due to changes in the mix of income and losses
in jurisdictions with a wide range of tax rates, changes resulting from the amount of recorded valuation allowance, permanent differences
between U.S.