Company: CRCL
Filing Date: 2025-08-12
Form Type: S-1
Source: 0001193125-25-178989
Chunk: 396

Company: Circle Internet Group, Inc.
Filing Date: 2025-08-12
Form: S-1
Chunk 396
---
 custody and blockchain application development.

<div align='center'>F-5 4</div>

In accordance with ASC 805, Business Combinations, the acquisition was accounted for as a business combination under the acquisition method. The following table summarizes the allocation of the purchase consideration to the fair value of the assets acquired and liabilities assumed (in thousands):

| Cash                                     |     | $ |   1,498 |   |
| Fixed assets, net                        |     |   |     528 |   |
| Operating lease right-of-use assets      |     |   |   1,114 |   |
| Intangible assets, net                   |     |   |  24,407 |   |
| Other assets                             |     |   |     335 |   |
| Goodwill                                 |     |   | 120,917 |   |
| Deferred tax liabilities                 |     |   |  (4,148 | ) |
| Other current and noncurrent liabilities |     |   |  (2,418 | ) |
| Total purchase consideration             |     | $ | 142,233 |   |

**The total fair value of consideration transferred was $ 142.2 million, consisting of $ 37.6 million in cash and USDC and 2.2 million common shares of Circle valued at $ 104.5 million. The intangible assets acquired consist of developed technology of $ 15.6 million, customer relationships of $ 6.6 million and trade name of $ 2.2 million, and were assigned useful lives of 6.0 , 2.5 and 8.5 years, respectively. The fair value of the developed technology, customer relationships, and trade name were determined using the income approach. These valuations are considered Level 3 fair value measurements due to the use of unobservable inputs including projected timing and amounts of future cash flows and revenues, useful lives, and discount rates. 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 Cybavo’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 1.6 million additional common shares of Circle to certain Cybavo employees, subject to the satisfaction of certain vesting conditions. All common shares issuable in connection with the Cybavo acquisition that are subject