Company: CRCL
Filing Date: 2025-08-12
Form Type: S-1
Source: 0001193125-25-178989
Chunk: 348

Company: Circle Internet Group, Inc.
Filing Date: 2025-08-12
Form: S-1
Chunk 348
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 liabilities                 |     |   |  (2,383 | ) |
| Deferred tax liabilities, net             |     |   |  (1,043 | ) |
| Total purchase consideration              |     | $ | 100,065 |   |

The fair value of consideration transferred was approximately $ 100.1 million, subject to customary adjustments, consisting of $ 10.2 million in cash. including a purchase price adjustment of $ 0.3 million, and approximately 2.9 million Class A common stock. 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 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 provided for the issuance of up to approximately 1.8 million additional Class A common stock to certain Hashnote employees, 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 the Company due to the fact that we are not the primary beneficiary as we do not have an obligation to absorb losses or a right to receive benefits that could potentially be significant to each fund. The Company’s maximum exposure to loss associated with each fund is limited to its insignificant investment and its obligations to perform services as the manager of each fund. The Company provides no guarantees and has no other financial obligations to each of the funds.

| 4. | Leases |

The Company leases facilities under non-cancelable operating leases. In addition to fixed monthly lease payments, the Company is required to pay operating expenses and real estate taxes for certain of these facilities.

<div align='center'>F-13</div>

The components of lease cost were as follows (in thousands):

| Table 4