Company: CRCL
Filing Date: 2025-02-13
Form Type: DRS/A
Source: 0000950123-25-001965
Chunk: 335

Company: Circle Internet Group, Inc.
Filing Date: 2025-02-13
Form: DRS/A
Chunk 335
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 federal and various state jurisdictions. The years open for audit for federal and state are 2020 through 2023. There are no open income tax examinations as of December 31, 2023. The Company is also subject to income taxes in Canada, France, Ireland, Singapore, Taiwan and Hong Kong. 14. Debt Loans payable, net of debt discount To facilitate an acquisition during 2018, the Company entered into a loan agreement with a bank for $20.0 million, at an 8.0% interest rate for a three year term, less discounts of $1.5 million, which was repaid in full in November 2019. In connection with this loan, the bank was issued warrants convertible into 1,450,000 ordinary shares of Parent with an expiration date seven years from the date of issuance at February 21, 2018, which are classified in equity. There are an additional 85,000 Series E warrants with a strike price of $16.23 per share with an expiration date of February 21, 2025, which are classified as liabilities. These warrants are still outstanding after repayment of the loan and have a fair value of $1.6 million and $2.7 million as of December 31, 2023 and 2022, respectively, which are reflected as Warrant liabilityon the Consolidated Balance Sheets. In July 2020, the Company entered into a loan agreement with a digital asset financial services company for $25.0 million, with a maturity date of July 16, 2022. The loan carried an initial annual loan fee of 16.8% and was F-42

CONFIDENTIAL TREATMENT REQUESTED BY CIRCLE INTERNET GROUP, INC. PURSUANT TO 17 C.F.R. § 200.83

amended in October 2020. The loan and the embedded derivative related to its interest
rate adjustment feature were reflected as Loans payable, net of debt discounton the Consolidated Statements of Operations. The debt discount was amortized and included in Other income (expense), netin the Consolidated Statements of
Operations. In June 2022, the Company repaid the entire principal balance of $25.0 million and accrued interest of $6.1 million in USDC.

Convertible debt, net of debt discount

In March 2019, the Company
entered into an agreement with an investment company to issue two convertible promissory notes in connection with an acquisition.