Company: CRCL
Filing Date: 2025-04-18
Form Type: S-1/A
Source: 0001193125-25-084832
Chunk: 164

Company: Circle Internet Group, Inc.
Filing Date: 2025-04-18
Form: S-1/A
Chunk 164
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 accordance with GAAP. The preparation of consolidated financial statements also requires us to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue, costs, and expenses and related disclosures. We base our estimates on historical experience and on various other assumptions that we believe to be reasonable under the circumstances. Actual results could differ significantly from our estimates. To the extent that there are differences between our estimates and actual results, our future financial statement presentation, financial condition, operating results, and cash flows will be affected. We believe that the accounting policies described below involve a significant degree of judgment and complexity. Accordingly, we believe these are the most critical to aid in fully understanding and evaluating our consolidated financial condition and results of operations. For more information, see the notes to our consolidated financial statements included elsewhere in this prospectus. Stock-based compensation including valuation of common stock We account for share-based awards under the recognition and measurement provisions of Accounting Standards Codification Topic 718, Stock-Based Compensation. In the absence of a public trading market, our management and board of directors considered various objectives and subjective factors to determine the fair value of Circle’s common stock as of each grant date, including the value determined by a third-party valuation firm. These factors included, among other things, the following:

| • |     | our actual operating and financial performance and estimated trends and prospects for our future performance; |

| • |     | the composition of, and changes to, our management team and board of directors; |

| • |     | consideration of the lack of liquidity of the common stock as a private company; |

| • |     | our stage of development, business strategy, and the material risks related to our business and industry; |

| • |     | the valuations of publicly traded companies in the financial services sector, as well as recently completed mergers and 
 acquisitions of peer companies;                                                                                         |

| • |     | external market conditions affecting the financial services sector; |

| • |     | the likelihood of achieving a liquidity event for the holders of our common stock; |

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| • |     | the prices, rights, preferences, and privileges of our convertible preferred stock relative to those of our common stock; 
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| • |     | the prices of our convertible preferred stock and common stock sold to investors in 
 arm’s-length transactions or offered to investors through a tender offer.           |

Our policy is to value our common shares at least quarterly with significant events potentially requiring additional valuations. In September 2021,