Company: CSTL
Filing Date: 2025-05-05
Form Type: 10-Q
Source: 0001447362-25-000069
Chunk: 25

Company: CASTLE BIOSCIENCES INC
Filing Date: 2025-05-05
Form: 10-Q
Item: Item 1
Chunk 25
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6 years. The total unrecognized compensation cost will be adjusted for forfeitures in future periods as they occur. 

13. Income Taxes

Our effective income tax rate was immaterial for the three months ended March 31, 2025, and was 11.0% for the three months ended March 31, 2024. 

The effective rate for the three months ended March 31, 2025 and 2024 differed from our federal statutory rate of 21% was primarily due to the tax impact from the valuation allowance for current year activity, state income taxes and the non-deductibility of other permanent items. 

14. Segment and Related Information

The Company derives revenues through the delivery of test reports for our molecular diagnostic tests. All of our operations are located within the United States and our business is focused on the U.S. market. We have a single reportable segment consisting of a single operating segment.

20

Table of ContentsCASTLE BIOSCIENCES, INC.NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)(UNAUDITED)

The measures of segment profit and loss for of our single reportable segment were as follows (in thousands):Three Months EndedMarch 31,20252024Net revenues from external customers(1)$87,988 $72,974 Significant segment expenses:Personnel costs52,200 45,916 Organizational and business development costs14,229 11,000 Inventory usage4,731 4,787 Clinical studies and publication costs2,085 2,637 Professional services3,576 3,124 Other segment items37,015 8,044 Segment loss$(25,848)$(2,534)(1)For information on disaggregation of segment revenue by type and information about payor concentration, see Note 3.Other segment itemsOther segment items include all other operating expenses types to included IT service and software licensing costs, fixed and variable expenses incurred for leasing of facilities and equipment, depreciation and amortization, gain or losses on disposal of fixed assets in the routine course of business, fair value adjustment for trading securities, realized gains or losses on investment securities, administrative costs, expense for use of prepaids to include insurance premiums and warranties for lab equipment, public company costs (less audit fees), interest and other non-operating income, and income tax expense or benefits. Our CODM does not individually review budgets or results for these activities.Other amounts included in the measure of segment