Company: CSTL
Filing Date: 2025-02-27
Form Type: 10-K
Source: 0001447362-25-000031
Chunk: 43

Company: CASTLE BIOSCIENCES INC
Filing Date: 2025-02-27
Form: 10-K
Item: Item 7
Chunk 43
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 of each award, with input from management, considering our most recently available third-party valuations of common stock and our board of directors’ assessment of additional objective and subjective factors that it believed 

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were relevant and which may have changed from the date of the most recent valuation through the date of the grant, which intended all options granted to be exercisable at price per share not less than the per share fair value of our common stock underlying those options on the grant date. Subsequent to our IPO, the fair value of our common stock is the closing selling price per share of our common stock as reported on the Nasdaq Global Market on the date of grant or other relevant determination date.

The following table sets forth the assumptions used to determine the fair value of stock options:

Years Ended December 31,202420232022Average expected term (years)5.05.05.8Expected stock price volatility80.20% - 80.20%75.57% - 76.01%68.3% - 75.0%Risk-free interest rate4.39% - 4.39%3.57% - 3.57%1.5% - 4.2%Dividend yield—%—%—%

The following table sets forth assumptions used to determine the fair value of the purchase rights issued under the ESPP:

Years Ended December 31,202420232022Average expected term (years)1.21.31.3Expected stock price volatility59.85% - 105.39%72.80% - 130.95%63.0% - 91.8%Risk-free interest rate3.82% - 5.14%4.74% - 5.33%0.6% - 3.5%Dividend yield—%—%—%

Intangible Assets and Goodwill

Intangible assets

Our intangible assets, which are comprised primarily of acquired developed technology, are considered to be finite-lived and are amortized on a straight-line basis over their estimated useful lives. Estimating the useful lives of our intangible assets requires considerable judgment. In determining the estimated useful lives, management considers factors such as historical experience, industry and regulatory factors, competition, patent expirations and commercial plans. If new information becomes available in future periods, we may be required to revise our estimated useful lives. If the revised useful lives are shorter than originally estimated, our future amortization expense will increase.

In late 2024,