Company: CRCL
Filing Date: 2025-02-13
Form Type: DRS/A
Source: 0000950123-25-001965
Chunk: 298

Company: Circle Internet Group, Inc.
Filing Date: 2025-02-13
Form: DRS/A
Chunk 298
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the fair value of derivatives and embedded derivatives, the fair value of certain non-current liabilities, the fair value of investments under measurement alternative, the fair value of stock-based awards issued, the assessment of the amount and
likelihood of adverse outcomes from claims and disputes, and the valuation of intangible assets acquired in business combinations, including goodwill and deferred taxes. The Company bases its estimates on historical experience and various other
assumptions which we believe to be reasonable under the circumstances. These estimates may change as new events occur, and additional information becomes available. Actual results could differ from these estimates and any such differences may be
material to the financial statements.

Cash and cash equivalents

Cash and cash equivalents are cash and short-term, highly liquid investments with original maturities of 90 days or less at the date of purchase.

Restricted cash

Restricted cash represents amounts held
at financial institutions related to the Company’s banking collateral requirements. Restricted cash is restricted from withdrawal due to contractual or regulatory banking requirements or not available for general use and as such is classified
as restricted on the Consolidated Balance Sheets.

Available-for-sale securities

The Company holds debt securities classified as available-for-sale securities which are recorded at fair value. Any unrealized holding gains or losses on
available-for-sale debt securities are reported as accumulated other comprehensive gain or loss, which is a separate component of stockholders’ equity, net of tax, until realized. Beginning January 1, 2023, available-for-sale debt securities
are analyzed for credit losses in accordance with ASU 2016-13, Financial Instruments — Credit Losses: Measurement of Credit Losses on Financial Instruments (Topic 326) (“ASU 2016-13”) which requires the Company to determine whether
declines in fair value are credit related. Any such credit-related decline in fair value is recorded to a credit loss allowance. Changes in the credit loss allowance are reported as a component of provision for credit losses included in General and administrative expenses in the Consolidated Statements of Operations. There was no credit loss allowance recorded as of December 31, 2023. We classify our available-for-sale securities as current or non-current based on each
instrument’s underlying effective maturity date and for which we have the intent and ability to hold the investment for a period of greater than 12 months. Available-for-sale securities with maturities of less than 12 months are classified
as current in the Consolidated Balance Sheets. Available-for-sale securities with maturities greater than 12 months for