Company: CRCL
Filing Date: 2025-08-12
Form Type: S-1
Source: 0001193125-25-178989
Chunk: 347

Company: Circle Internet Group, Inc.
Filing Date: 2025-08-12
Form: S-1
Chunk 347
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04, Clarifications to Share-Based Consideration Payable to a Customer(“ASU 2025-04”). ASU 2025-04 clarifies guidance on accounting for share-based payments granted to a customer, that are accounted for as a reduction of revenue, by revising the definition of a performance condition to include conditions based on customer purchases and eliminating a policy election to account for forfeitures of customer awards as they occur. The guidance also clarifies that the variable consideration constraint does not apply to share-based consideration payments to customers. ASU 2025-04 is effective for the Company for its fiscal year beginning January 1, 2027 and for interim periods beginning in that year. The guidance allows for either a modified retrospective or full retrospective adoption, and early adoption is permitted. The Company is currently assessing ASU 2025-04 and its impact on its financial statements and disclosures.

| 3. | Acquisitions and divestitures |

In January 2025, the Company acquired 100 % of the ownership interest in Hashnote Holdings LLC, a Delaware limited liability company (together with its subsidiaries, “Hashnote”), which, through its affiliates, is the fund manager of Hashnote International Short Duration Yield Fund Ltd., a tokenized money market fund and the issuer of USYC.

<div align='center'>F-12</div>

In accordance with ASC 805, Business Combinations, the acquisition was accounted for as a business combination under the acquisition method. The allocation of the purchase price for this acquisition has been prepared on a preliminary basis and changes to the allocation to certain assets, liabilities, and tax estimates may occur as additional information becomes available.

The following table summarizes the preliminary allocation of the purchase consideration to the fair value of the assets acquired and liabilities assumed (in thousands):

| Cash and cash equivalents                 |     | $ |   2,412 |   |
| Accounts receivable, net                  |     |   |     193 |   |
| Prepaid expenses and other current assets |     |   |     109 |   |
| Fixed assets, net                         |     |   |       8 |   |
| Digital assets                            |     |   |     104 |   |
| Goodwill                                  |     |   |  96,840 |   |
| Intangible assets, net                    |     |   |   4,480 |   |
| Accounts payable and accrued expenses     |     |   |    (655 | ) |
| Other current