Company: CSTL
Filing Date: 2025-02-27
Form Type: 10-K
Source: 0001447362-25-000031
Chunk: 26

Company: CASTLE BIOSCIENCES INC
Filing Date: 2025-02-27
Form: 10-K
Item: Item 7
Chunk 26
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 Value of Trading Securities

Change in fair value of trading securities is primarily attributable to unrealized gains and losses on our equity securities which we present as marketable investment securities.

Interest Expense

Interest expense is primarily attributable to long term debt and finance leases.

Income Tax Expense

Income tax expense consists primarily of income taxes related to federal and state jurisdictions in which we conduct business. We maintain a full valuation allowance for deferred tax assets including operating loss carryforwards and research and development credits and other tax credits. Our consolidated financial statements do not reflect any federal or state income tax benefits attributable to the pre-tax losses we have incurred, due to the uncertainty of realizing a benefit from those items. As of December 31, 2024, we had federal NOL carryforwards of $129.4 million, of which $52.9 million will begin to expire in 2031 if not utilized to offset federal taxable income, and $76.5 million may be carried forward indefinitely. Also, as of December 31, 2024, we also had state NOL carryforwards of $86.5 million, which begin to expire in 2028 if not utilized to offset state taxable income.

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Results of Operations

Comparison of the Years Ended December 31, 2024 and 2023

The following table summarizes our results of operations for the periods indicated (in thousands, except percentages):

 Years Ended December 31,Change 20242023NET REVENUES$332,069 $219,788 $112,281 51.1 %OPERATING EXPENSES AND OTHER OPERATING INCOMECost of sales (exclusive of amortization of acquired intangible assets)60,205 44,982 15,223 33.8 %Research and development52,041 53,618 (1,577)(2.9)%Selling, general and administrative200,047 180,152 19,895 11.0 %Amortization of acquired intangible assets11,106 9,013 2,093 23.2 %Total operating expenses, net323,399 287,765 35,634 12.4 %Operating income (loss)8,670 (67,977)76,647 112.8 %Interest income12,916 10,623 2,293 21.6 %Changes in fair value of trading securities555 — 555 NAInterest expense(