Company: CSTL
Filing Date: 2025-05-05
Form Type: 10-Q
Source: 0001447362-25-000069
Chunk: 170

Company: CASTLE BIOSCIENCES INC
Filing Date: 2025-05-05
Form: 10-Q
Item: Item 2
Chunk 170
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 as marketable investment securities.

Interest Expense

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

Income Tax (Benefit) Expense

Income tax benefit is primarily due to the revised estimated useful life of our intangible asset related to the discontinuation of our IDgenetix test offering, which resulted in a temporary difference and a corresponding deferred tax asset. 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. 

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.

29

Results of Operations

Comparison of the Three Months Ended March 31, 2025 and 2024

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

 Three Months EndedMarch 31,Change 20252024(unaudited)Net revenues$87,988 $72,974 $15,014 20.6 %Operating expensesCost of sales (exclusive of amortization of acquired intangible assets)16,383 13,894 2,489 17.9 %Research and development12,588 13,809 (1,221)(8.8)%Selling, general and administrative58,620 48,495 10,125 20.9 %Amortization of acquired intangible assets28,325 2,247 26,078 NMTotal operating expenses, net115,916 78,445 37,471 47.8 %Operating loss(27,928)(5,471)(22,457)(410.5)%Interest income3,099 2,996 103 3.4 %Changes in fair value of trading securities(1,425)— (1,425)NAInterest expense(17)(14)(3)(21.4)%Loss before income taxes(26,271)(2,489)(23,782