Company: CRCL
Filing Date: 2025-06-02
Form Type: S-1/A
Source: 0001193125-25-132755
Chunk: 341

Company: Circle Internet Group, Inc.
Filing Date: 2025-06-02
Form: S-1/A
Chunk 341
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 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                                  |     |   | 96,545 |   |
| Intangible assets, net                    |     |   |  4,480 |   |
| Accounts payable and accrued expenses     |     |   |   (655 | ) |
| Other current liabilities                 |     |   | (2,383 | ) |
| Deferred tax liabilities, net             |     |   | (1,043 | ) |
| Total purchase consideration              |     | $ | 99,770 |   |

The fair value of consideration transferred was approximately $99.8 million, subject to customary adjustments, consisting of $9.9 million in cash and approximately 2.9 million Class A common shares of Circle. The intangible assets acquired consist of developed technology of $1.7 million and customer relationships of $2.8 million and were each assigned useful lives of 2 years. The fair value of the customer relationships were determined using the income approach, and the developed technology was determined using the cost approach. These valuations F-12

are considered Level 3 fair value measurements due to the use of unobservable inputs including projected timing and amounts of future revenues, cash flows, discount rates and current replacement costs. The excess of the purchase consideration over the fair value of net tangible and identifiable intangible assets acquired and liabilities assumed was recorded as goodwill and is attributable to Hashnote’s workforce and the synergies expected to arise from the acquisition. The Company does not expect goodwill to be deductible for income tax purposes. The agreement also provides for the issuance of up to approximately 1.8 million additional Class A common shares of Circle to certain Hashnote employees, of which are subject to the satisfaction of vesting conditions and will be accounted for as compensation expense over the requisite service period. The Company also holds investments in certain funds managed by affiliates of Hashnote. These funds, including Hashnote International Short Duration Yield Fund Ltd., are variable interest entities that are not consolidated by