Company: CRCL
Filing Date: 2025-02-13
Form Type: DRS/A
Source: 0000950123-25-001965
Chunk: 310

Company: Circle Internet Group, Inc.
Filing Date: 2025-02-13
Form: DRS/A
Chunk 310
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DC in circulation held outside of each respective party’s platforms and (ii) the amount of USDC held on each respective party’s platform. The Company accounts for these agreements as executory contracts F-18

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

and accrues amounts payable as reserve income is earned and the amounts to be allocated
are determinable. The costs associated with the distribution arrangement and the collaboration arrangement are recognized in Distribution and transaction costs in the Consolidated Statements of Operations.

Marketing expenses

The Company expenses the cost of producing
advertisements at the time production occurs and expenses the cost of communicating advertisements in the period during which the advertising space or airtime is used as sales and marketing expense. Online advertising expenses are recognized based
on the terms of the individual agreements, which are generally over the greater of the ratio of the number of impressions delivered over the total number of contracted impressions, on a
pay-per-click basis, or on a straight-line basis over the term of the contract. Marketing expenses are expensed as incurred and presented as a component of Operating
Expenses in the Consolidated Statements of Operations.

General and administrative expenses

General and administrative expenses include costs incurred to support the Company’s business, including professional services fees paid for legal and accounting
services, rent, employee meals and entertainment, travel expenses, bad debt and credit losses, insurance, training and education, compliance and other administrative services. General and administrative costs are expensed as incurred and presented
as a component of Operating Expenses in the Consolidated Statements of Operations.

Income taxes

Deferred tax assets and liabilities are recognized for the future tax consequences attributable to temporary differences between the financial statement carrying amounts
of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be
recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period of the enactment date. Valuation allowances are established when it is more likely than not that some or all of
the deferred tax assets will not be realized.

The Company recognizes the effect of income tax positions only if those positions are more likely than not to be
sustained. The Company recognizes accrued interest and penalties related to unrecognized tax benefits as income tax expense.

For U.S. Federal tax purposes, digital