Castle Biosciences Files Q2 2024 10-Q

TL;DR

Castle Biosciences dropped its Q2 10-Q. Financials look steady, business chugging along.

AI Summary

Castle Biosciences Inc. filed its 10-Q for the period ending June 30, 2024. The filing details financial performance and operational updates for the second quarter of 2024. Key financial figures and business developments are presented, reflecting the company's ongoing activities in the medical diagnostics sector.

Why It Matters

This filing provides investors with the latest financial health and operational performance of Castle Biosciences, crucial for understanding its market position and future prospects.

Risk Assessment

Risk Level: medium — As a publicly traded company in the biotech sector, Castle Biosciences faces inherent market and regulatory risks, which are typical for this industry.

Key Players & Entities

• Castle Biosciences Inc. (company) — Filer of the 10-Q report
• 20240630 (date) — End of the reporting period
• 20240805 (date) — Filing date of the report

FAQ

Key Financial Figures

• $0.001 — ange on which registered Common Stock, $0.001 par value per share CSTL The Nasdaq Glo

Filing Documents

• cstl-20240630.htm (10-Q) — 1246KB
• exhibit101-nonxemployeedir.htm (EX-10.1) — 23KB
• exhibit311-q22024.htm (EX-31.1) — 15KB
• exhibit312-q22024.htm (EX-31.2) — 15KB
• exhibit321-q22024.htm (EX-32.1) — 7KB
• 0001447362-24-000122.txt ( ) — 6534KB
• cstl-20240630.xsd (EX-101.SCH) — 41KB
• cstl-20240630_cal.xml (EX-101.CAL) — 65KB
• cstl-20240630_def.xml (EX-101.DEF) — 160KB
• cstl-20240630_lab.xml (EX-101.LAB) — 597KB
• cstl-20240630_pre.xml (EX-101.PRE) — 391KB
• cstl-20240630_htm.xml (XML) — 877KB

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION 1

Financial Statements

Item 1. Financial Statements 1 Condensed Consolidated Balance Sheets as of June 30 , 2024 (Unaudited) and December 31, 2023 1 Unaudited Condensed Consolidated Statements of Operations for the Three and S ix Months Ended June 30, 2024 and 202 3 2 Unaudited Condensed Consolidated Statements of Comprehensive Income ( Loss ) for the Three and Six Months Ended June 3 0 , 2024 and 2023 3 Unaudited Condensed Consolidated Statements of Stockholders' Equity for the Three and Six Months Ended June 3 0 , 2024 and 2023 4 Unaudited Condensed Consolidated Statements of Cash Flows for the Six Months Ended June 3 0 , 2024 and 2023 6 Notes to Unaudited Condensed Consolidated Financial Statements 8

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 23

Quantitative and Qualitative Disclosures About Market Risk

Item 3. Quantitative and Qualitative Disclosures About Market Risk 41

Controls and Procedures

Item 4. Controls and Procedures 41

OTHER INFORMATION

PART II. OTHER INFORMATION 43

Legal Proceedings

Item 1. Legal Proceedings 43

Risk Factors

Item 1A. Risk Factors 43

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 47

Defaults Upon Senior Securities

Item 3. Defaults Upon Senior Securities 47

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 47

Other Information

Item 5. Other Information 47

Exhibits

Item 6. Exhibits 48

SIGNATURES

SIGNATURES 49 i Table of Contents

—FINANCIAL INFORMATION

PART I—FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements. CASTLE BIOSCIENCES, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands, except share and per share data) June 30, 2024 December 31, 2023 ASSETS (unaudited) Current Assets Cash and cash equivalents $ 85,572 $ 98,841 Marketable investment securities 174,116 144,258 Accounts receivable, net 45,988 38,302 Inventory 8,013 7,942 Prepaid expenses and other current assets 6,716 6,292 Total current assets 320,405 295,635 Long-term accounts receivable, net 1,125 1,191 Property and equipment, net 38,638 25,433 Operating lease assets 11,621 12,306 Goodwill and other intangible assets, net 112,840 117,335 Other assets – long-term 2,683 1,440 Total assets $ 487,312 $ 453,340 LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities Accounts payable $ 9,540 $ 10,268 Accrued compensation 21,239 28,945 Operating lease liabilities 1,226 1,137 Other accrued and current liabilities 7,449 7,317 Total current liabilities 39,454 47,667 Long-term debt 10,008 — Noncurrent operating lease liabilities 13,645 14,173 Noncurrent finance lease liabilities 312 25 Deferred tax liability — 206 Total liabilities 63,419 62,071 Commitments and Contingencies (Note 11) Stockholders' Equity Preferred stock, $ 0.001 par value per share; 10,000,000 shares authorized as of June 30, 2024 and December 31, 2023; no shares issued and outstanding as of June 30, 2024 and December 31, 2023 — — Common stock, $ 0.001 par value per share; 200,000,000 shares authorized as of June 30, 2024 and December 31, 2023; 27,711,024 and 27,410,532 shares issued and outstanding as of June 30, 2024 and December 31, 2023, respectively 28 27 Additional paid-in capital 636,022 609,477 Accumulated deficit ( 211,985 ) ( 218,371 ) Accumulated other comprehensive (loss) income ( 172 ) 136 Total stockholders' equity 423,893 391,269 Total liabilities and stockholders' equity $ 487,312 $ 453,340 The accompanying notes are an integral part of these unaudited co