Company: CSTL
Filing Date: 2025-05-05
Form Type: 10-Q
Source: 0001447362-25-000069
Chunk: 109

Company: CASTLE BIOSCIENCES INC
Filing Date: 2025-05-05
Form: 10-Q
Item: Item 8
Chunk 109
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 INC.NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)(UNAUDITED)

As of December 31, 2024 Quoted Prices in Active Markets for Identical Items (Level 1)Significant Other Observable Inputs(Level 2)Significant Unobservable Inputs(Level 3)TotalAssetsMoney market funds(1)$114,091 $— $— $114,091 U.S. government securities - AFS(2)$169,866 $— $— $169,866 Trading securities(2)$3,555 $— $— $3,555 LiabilitiesTerm Debt (3)(4)$— $10,023 $— $10,023 (1)Classified as “Cash and cash equivalents” in the unaudited condensed consolidated balance sheets.(2)Classified as “Marketable investment securities” in the unaudited condensed consolidated balance sheets.(3)Classified as “Current portion of long-term debt” and “Long term debt” in the consolidated balance sheets.(4)Borrowings approximate their fair value as the interest rate is variable and reflects market rates.We have U.S. government securities that are HTM investments and are carried at amortized costs. The fair value of our HTM investments is classified as Level 1 of the fair value hierarchy. For additional information on the carrying amount and fair value of our HTM investments, see Note 5.

11. Commitments and Contingencies 

From time to time, we may be involved in legal proceedings arising in the ordinary course of business. We believe there is no threatened litigation or litigation pending that could have, individually or in the aggregate, a material adverse effect on our financial position, results of operations or cash flows. On February 1, 2024, we received a Subpoena from the Department of Health and Human Services, Office of Inspector General, seeking documents and information concerning claims submitted for payment under federal healthcare programs. The Subpoena requested that we produce documents relating primarily to interactions with medical providers and billing to government-funded healthcare programs for our tests. The time period covered by the Subpoena is January 1, 2015 through February 1, 2024. We are continuing to cooperate with the government’s request and are in the process of responding to the Subpoena. We are unable to predict what action, if any, might be taken in the future by the Department