Company: CRNX
Filing Date: 2025-02-27
Form Type: 10-K
Source: 0000950170-25-029050
Chunk: 49

Company: Crinetics Pharmaceuticals, Inc.
Filing Date: 2025-02-27
Form: 10-K
Item: Item 14
Chunk 49
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 on estimates of the period in which services and efforts provided by contract research organizations (“CROs”) and other third parties. Estimates are determined by reviewing cost information provided by CROs, other third-party vendors and internal clinical personnel, and contractual arrangements with CROs and the scope of work to be performed. As of December 31, 2024, the Company recorded $3.1 million in clinical trial accruals, which was included in accounts payable and accrued expenses on the consolidated balance sheet. 

We identified the estimation of clinical trial accruals as a critical audit matter. Management’s judgment was required in estimating the progress of services and the associated costs incurred used to determine the accrued liabilities for clinical trial expenses. Auditing clinical trial accruals was especially challenging due to the nature and extent of audit effort required to address the matter.  

F-2

The primary procedures we performed to address this critical audit matter included:

•Testing management’s process for estimating clinical trial accruals by: (i) obtaining and inspecting certain agreements and amendments and (ii) confirming total clinical costs incurred and total amounts billed with certain third-party vendors.

•Testing the completeness of the Company’s clinical trial accruals by: (i) evaluating internal materials and publicly available information (such as press releases and public databases that track clinical trials) and (ii) testing invoices received after year-end for certain third-party vendors.

/s/ BDO USA, P.C. 

We have served as the Company’s auditor since 2016. 

San Diego, California

February 27, 2025

F-3

CRINETICS PHARMACEUTICALS, INC.

Consolidated Balance Sheets

(In thousands, except per share amounts) 

    December 31,2024

    December 31,2023

    Assets

    Current assets:

    Cash and cash equivalents
     
    $
    264,545

    $
    54,897

    Restricted cash

    500

    —

    Investment securities, amortized cost of $1,088,561 at December 31, 2024 and $502,681 at December 31, 2023

    1,089,524

    503,658

    Prepaid expenses and other current assets

    20,819

    15,598

    Total current assets

    1,375,388

    574,153

    Property and equipment, net