10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)
☒	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2026

OR

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from _________ to _________ 

Commission File Number: 001-38984

CASTLE BIOSCIENCES, INC.

(Exact name of registrant as specified in its charter)

Delaware	77-0701774
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)
1500 W. Parkwood Ave, Suite 400, Friendswood, Texas	77546
(Address of principal executive offices)	(Zip Code)

(866) 788-9007

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, $0.001 par value per share	CSTL	The Nasdaq Global Market

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.     Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).     Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	☐	Accelerated filer	☒
Non-accelerated filer	☐	Smaller reporting company	☐
		Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes ☐ No ☒

As of April 29, 2026, there were 30,329,952 shares of common stock, $0.001 par value per share, issued and outstanding.

Table of Contents

		Page
PART I.	FINANCIAL INFORMATION	1
Item 1.	Financial Statements	1
	Condensed Consolidated Balance Sheets as of March 31, 2026 (Unaudited) and December 31, 2025	1
	Unaudited Condensed Consolidated Statements of Operations for the Three Months Ended March 31, 2026 and 2025	2
	Unaudited Condensed Consolidated Statements of Comprehensive Loss for the Three Months Ended March 31, 2026 and 2025	3
	Unaudited Condensed Consolidated Statements of Stockholders’ Equity for the Three Months Ended March 31, 2026 and 2025	4
	Unaudited Condensed Consolidated Statements of Cash Flows for the Three Months Ended March 31, 2026 and 2025	5
	Notes to Unaudited Condensed Consolidated Financial Statements	7
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	26
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	40
Item 4.	Controls and Procedures	41
PART II.	OTHER INFORMATION	42
Item 1.	Legal Proceedings	42
Item 1A.	Risk Factors	42
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	45
Item 3.	Defaults Upon Senior Securities	45
Item 4.	Mine Safety Disclosures	45
Item 5.	Other Information	46
Item 6.	Exhibits	47
SIGNATURES		48

i

PART I—FINANCIAL INFORMATION

Item 1. Financial Statements.

CASTLE BIOSCIENCES, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands, except share and per share data)

	March 31, 2026		December 31, 2025
ASSETS	(unaudited)
Current Assets
Cash and cash equivalents	$	63,764	$	116,729
Marketable investment securities	197,921		182,776
Accounts receivable, net	42,264		43,382
Inventory	10,461		10,254
Prepaid expenses and other current assets	14,491		7,956
Total current assets	328,901		361,097
Long-term accounts receivable, net	1,921		1,878
Property and equipment, net	100,934		97,443
Operating lease assets	14,424		14,795
Goodwill and other intangible assets, net	97,347		99,574
Other assets – long-term	4,278		3,769
Total assets	$	547,805	$	578,556
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current Liabilities
Accounts payable	$	15,038	$	18,711
Accrued compensation	19,111		38,287
Contingent consideration	1,000		1,000
Operating lease liabilities	1,254		1,325
Current portion of long-term debt	1,667		417
Other accrued and current liabilities	10,691		8,937
Total current liabilities	48,761		68,677
Long-term debt	8,399		9,640
Noncurrent portion of contingent consideration	1,500		1,500
Noncurrent operating lease liabilities	25,116		25,217
Noncurrent finance lease liabilities	288		314
Deferred tax liability	2,325		2,335
Total liabilities	86,389		107,683
Commitments and Contingencies (Note 12)
Stockholders’ Equity
Preferred stock, $0.001 par value per share; 10,000,000 shares authorized as of March 31, 2026 and December 31, 2025; no shares issued and outstanding as of March 31, 2026 and December 31, 2025	—		—
Common stock, $0.001 par value per share; 200,000,000 shares authorized as of March 31, 2026 and December 31, 2025; 30,295,965 and 29,686,314 shares issued and outstanding as of March 31, 2026 and December 31, 2025, respectively	30		30
Additional paid-in capital	700,255		694,860
Accumulated deficit	(238,806)		(224,284)
Accumulated other comprehensive (loss) income	(63)		267
Total stockholders’ equity	461,416		470,873
Total liabilities and stockholders’ equity	$	547,805	$	578,556

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

1

CASTLE BIOSCIENCES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(UNAUDITED)

(in thousands, except per share data)

	Three Months Ended March 31,
	2026		2025
NET REVENUES	$	83,679	$	87,988
OPERATING EXPENSES
Cost of sales (exclusive of amortization of acquired intangible assets)	20,533		16,383
Research and development	14,428		12,588
Selling, general and administrative	64,899		58,620
Amortization of acquired intangible assets	2,226		28,325
Total operating expenses, net	102,086		115,916
Operating loss	(18,407)		(27,928)
Interest income	2,545		3,099
Net gains (losses) on equity securities	2,022		(1,425)
Interest expense	(134)		(17)
Other loss	(439)		—
Loss before income taxes	(14,413)		(26,271)
Income tax expense (benefit)	109		(423)
Net loss	$	(14,522)	$	(25,848)
Loss per share, basic and diluted	$	(0.49)	$	(0.90)
Weighted-average shares outstanding, basic and diluted	29,889		28,609

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

2

CASTLE BIOSCIENCES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS

(UNAUDITED)

(in thousands)

	Three Months Ended March 31,
	2026		2025
Net loss	$	(14,522)	$	(25,848)
Other comprehensive loss:
Net unrealized loss on marketable investment securities	(330)		(99)
Comprehensive loss	$	(14,852)	$	(25,947)

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

3

CASTLE BIOSCIENCES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

(UNAUDITED)

(in thousands, except share data)

	Common Stock			Additional Paid-in Capital		Accumulated Deficit		Accumulated Other Comprehensive Income (Loss)		Total Stockholders’ Equity
	Shares	Amount
BALANCE, JANUARY 1, 2025	28,483,195	$	28	$	655,703	$	(200,126)	$	230	$	455,835
Stock-based compensation expense	—	—		11,179		—		—		11,179
Exercise of common stock options	6,331	—		18		—		—		18
Issuance of common stock from vested restricted stock units, net of shares withheld for taxes	251,970	1		(2,517)		—		—		(2,516)
Issuance of common stock under the employee stock purchase plan	103,441	—		1,737		—		—		1,737
Net unrealized loss on marketable investment securities	—	—		—		—		(99)		(99)
Net loss	—	—		—		(25,848)		—		(25,848)
BALANCE, MARCH 31, 2025	28,844,937	$	29	$	666,120	$	(225,974)	$	131	$	440,306

	Common Stock			Additional Paid-in Capital		Accumulated Deficit		Accumulated Other Comprehensive Income (Loss)		Total Stockholders’ Equity
	Shares	Amount
BALANCE, JANUARY 1, 2026	29,686,314	$	30	$	694,860	$	(224,284)	$	267	$	470,873
Stock-based compensation expense	—	—		9,776		—		—		9,776
Exercise of common stock options	28,494	—		322		—		—		322
Issuance of common stock from vested restricted stock units and performance-based restricted stock units, net of shares withheld for taxes	486,737	—		(6,598)		—		—		(6,598)
Issuance of common stock under the employee stock purchase plan	94,420			1,895		—		—		1,895
Net unrealized loss on marketable investment securities	—	—		—		—		(330)		(330)
Net loss	—	—		—		(14,522)		—		(14,522)
BALANCE, MARCH 31, 2026	30,295,965	$	30	$	700,255	$	(238,806)	$	(63)	$	461,416

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

4

CASTLE BIOSCIENCES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(UNAUDITED)

(in thousands)

	Three Months Ended March 31,
	2026		2025
OPERATING ACTIVITIES
Net loss	$	(14,522)	$	(25,848)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	3,929		29,764
Stock-based compensation expense	9,776		11,179
Net (gains) losses on equity securities	(2,022)		1,425
Deferred income taxes	(10)		(770)
Accretion of discounts on marketable investment securities	(454)		(1,435)
Other	532		30
Change in operating assets and liabilities:
Accounts receivable	1,075		(5,217)
Prepaid expenses and other current assets	(6,667)		(3,364)
Inventory	(207)		1,286
Operating lease assets	371		420
Other assets	(530)		(38)
Accounts payable	3,193		615
Operating lease liabilities	(172)		(526)
Accrued compensation	(19,176)		(14,698)
Other accrued and current liabilities	2,755		1,141
Net cash used in operating activities	(22,129)		(6,036)
INVESTING ACTIVITIES
Purchases of marketable investment securities	(55,136)		(48,431)
Proceeds from maturities of marketable investment securities	39,100		36,300
Purchases of debt securities classified as held-to-maturity	—		(5,569)
Proceeds from sale of equity securities	2,681		—
Purchases of property and equipment	(12,455)		(4,740)
Proceeds from sale of property and equipment	7		9
Net cash used in investing activities	(25,803)		(22,431)
FINANCING ACTIVITIES
Proceeds from exercise of common stock options	322		18
Payment of employees’ taxes on vested restricted stock units and performance-based restricted stock units	(6,598)		(2,515)
Proceeds from contributions to the employee stock purchase plan	1,267		970
Repayment of principal portion of finance lease liabilities	(24)		(26)
Net cash used in financing activities	(5,033)		(1,553)
NET CHANGE IN CASH AND CASH EQUIVALENTS	(52,965)		(30,020)
Beginning of period	116,729		119,709
End of period	$	63,764	$	89,689

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

5

CASTLE BIOSCIENCES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (CONTINUED)

(UNAUDITED)

(in thousands)

	Three Months Ended March 31,
	2026		2025
DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES:
Accrued purchases of property and equipment	$	4,097	$	3,217
Finance lease assets obtained in exchange for lease obligations	$	—	$	44

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

6

CASTLE BIOSCIENCES, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

1. Organization and Description of Business

Castle Biosciences, Inc. (the “Company,” “we,” “us” or “our”) was incorporated in the state of Delaware on September 12, 2007. We are a commercial-stage diagnostics company focused on providing clinicians and their patients with personalized, clinically actionable information to inform treatment decisions and improve health outcomes. We are based in Friendswood, Texas (a suburb of Houston, Texas), and our laboratory operations are conducted at our facilities located in Phoenix, Arizona and Pittsburgh, Pennsylvania.

2. Summary of Significant Accounting Policies

Basis of Presentation

Our unaudited condensed consolidated financial statements include the accounts of Castle Biosciences, Inc. and our wholly owned subsidiaries and have been prepared in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”). All intercompany accounts and transactions have been eliminated in consolidation.

We have a history of recurring net losses and negative cash flows and as of March 31, 2026, we had an accumulated deficit of $238.8 million. We believe our $63.8 million of cash and cash equivalents and $197.9 million of marketable investment securities as of March 31, 2026, and anticipated revenue from our test reports, will be sufficient to meet our cash requirements through at least the 12-month period following the date that these unaudited condensed consolidated financial statements were issued.

Unaudited Interim Financial Information

The accompanying condensed consolidated balance sheet as of March 31, 2026; the condensed consolidated statements of operations, the condensed consolidated statements of comprehensive loss and the condensed consolidated statements of stockholders’ equity, each for the three months ended March 31, 2026 and 2025; and the condensed consolidated statements of cash flows for the three months ended March 31, 2026 and 2025 are unaudited. The unaudited interim condensed consolidated financial statements have been prepared on the same basis as the audited annual financial statements and, in the opinion of management, reflect all adjustments, which include only normal recurring adjustments, necessary for the fair statement of our consolidated financial position as of March 31, 2026, the results of our consolidated operations for the three months ended March 31, 2026 and 2025 and our consolidated cash flows for the three months ended March 31, 2026 and 2025. The financial data and other information disclosed in these notes related to the three months ended March 31, 2026 and 2025 are also unaudited. The results for the three months ended March 31, 2026 are not necessarily indicative of results to be expected for the year ending December 31, 2026, any other interim periods, or any future year or period. The balance sheet as of December 31, 2025 included herein was derived from the audited financial statements as of that date. Certain disclosures have been condensed or omitted from the unaudited condensed consolidated financial statements. These unaudited condensed consolidated financial statements should be read in conjunction with our audited consolidated financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2025 filed with the Securities and Exchange Commission on February 26, 2026.

Use of Estimates

The preparation of condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Significant items subject to such estimates include revenue recognition, the valuation of stock-based compensation, assessing future tax exposure and the realizability of deferred tax assets, the useful lives and recoverability of long-lived assets, the goodwill impairment test, the valuation of acquired intangible assets, the valuation of contingent consideration, and other contingent liabilities. We base these estimates on historical and anticipated results, trends, and various other assumptions that we believe are reasonable under the circumstances, including assumptions as to future events. These estimates form the basis for making judgments about the carrying values of assets and liabilities and recorded revenues and expenses that are not readily apparent from other sources. Actual results could differ from those estimates and assumptions.

7

CASTLE BIOSCIENCES, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(UNAUDITED)

Segment Reporting

Operating segments are components of an enterprise engaging in business activities from which it may recognize revenues and incur expenses, where discrete financial information is available, and where its operating results are regularly reviewed by the public entity’s chief operating decision maker (“CODM”) to make decisions about resources to be allocated to the segment and to assess its performance. A CODM may be an individual or a decision-making group. A reportable segment consists of one or more operating segments. For additional information on our segment reporting, see Note 15.

Cash and Cash Equivalents including Concentrations of Credit Risk

Cash equivalents consist of short-term, highly liquid investments with original maturities of three months or less. Our cash equivalents consist of money market funds, which are not insured by the Federal Deposit Insurance Corporation (“FDIC”), that are primarily invested in short-term United States (“U.S.”) government obligations. Cash deposits at financial institutions may exceed the amount of insurance provided by the FDIC. Management believes that we are not exposed to significant credit risk on our cash deposits due to the financial position of the financial institutions in which deposits are held.

Marketable Investment Securities

Our marketable investment securities are comprised of debt and equity securities. All debt securities are recognized in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 320, Investments-Debt Securities (“ASC 320”). Management determines the appropriate classification of debt securities at the time of purchase and re-evaluates such determination at each balance sheet date. Debt securities that are classified as available-for-sale (“AFS”) are recorded at fair value in accordance with ASC 320. We recognize the unrealized gains and losses related to changes in fair value as a separate component of accumulated other comprehensive income within total stockholders’ equity, net of any related deferred income tax effects, on the condensed consolidated balance sheets. Debt securities that are classified as held-to-maturity (“HTM”) are reported at amortized cost in accordance with ASC 320. Premiums or discounts from par value are amortized to interest income over the life of the underlying investment and are included in interest income in the condensed consolidated statements of operations. Realized gains and losses on AFS and HTM debt securities, if any, are calculated at the individual security level and included in interest income in the condensed consolidated statements of operations. Impairments of AFS or HTM debt securities, if any, are recorded in the condensed consolidated statements of operations. See Notes 5 and 11 for further details.

Our equity securities consist of investments in shares of common stock which are listed and traded on the Nasdaq Global Market and certain foreign exchanges. All equity securities are recognized in accordance with ASC Topic 321, Investments-Equity Securities (“ASC 321”) and reported at their readily determinable fair values based on quoted market prices where changes in fair value are included in net gains (losses) on equity securities in the condensed consolidated statements of operations. For investments denominated in a foreign currency, the fair value is remeasured into U.S. dollars using exchange rates in effect at each balance sheet date in accordance with ASC Topic 830, Foreign Currency Matters (“ASC 830”). As a result, changes in fair value include the effects of both market price movements and foreign currency exchange rate fluctuations. All changes in a marketable security’s fair value are reported in earnings as they occur, and the sale of our equity securities does not necessarily give rise to a significant gain or loss. Investments in equity securities are classified as either current or long-term depending upon management’s intentions. We updated our terminology to refer to these investments as equity securities rather than trading securities to align with the terminology in ASC 321. See Notes 5 and 11 for further details.

8

CASTLE BIOSCIENCES, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(UNAUDITED)

Contingent Consideration

Under the terms of business combinations or asset acquisitions, we may be required to pay additional consideration if specified future events occur or certain conditions are met. In May 2025, we acquired Capsulomics, Inc., d/b/a Previse (“Previse”), which was recorded as an asset acquisition, and agreed to pay additional consideration of up to $2.5 million in cash based on the achievement of certain commercial milestones (the “Earnout Payments”). We account for the contingent consideration as a liability in accordance with ASC 450-20, Loss Contingencies (“ASC 450-20”) when it is both probable and reasonably estimable. In accordance with ASC 450-20, we recorded the contingent consideration at the amount required to settle the respective obligation, and subsequent changes are recognized as adjustments to the cost basis of the acquired assets. These changes are allocated to the acquired assets based on their relative fair values as of the date of acquisition. In December 2025 and March 2026, two commercial milestones were achieved, resulting in aggregate Earnout Payments of $1.0 million becoming payable. The payment related to the initial milestone was extended. Both earnout payments are expected to be made within 60 days following the end of the period.

Contingent consideration is classified as current or noncurrent in the condensed consolidated balance sheets based on the contractual timing of future settlement.

Revenue Recognition

In accordance with ASC Topic 606, Revenue from Contracts with Customers (“ASC 606”), we follow a five-step process to recognize revenues: (1) identify the contract with the customer, (2) identify the performance obligations, (3) determine the transaction price, (4) allocate the transaction price to the performance obligations and (5) recognize revenues when the performance obligations are satisfied. We have determined that we have a contract with the patient when the treating clinician orders the test. Our contracts generally contain a single performance obligation, which is the delivery of the test report, and we satisfy our performance obligation at a point in time upon the delivery of the test report to the treating clinician, at which point we can bill for the report. The amount of revenue recognized reflects the amount of consideration to which we expect to be entitled, or the transaction price, and considers the effects of variable consideration. See Note 3 for further details.

Collaborative Arrangements

We assess whether our licensing and other agreements are collaborative arrangements based on whether they involve joint operating activities and whether both parties have active participation in the arrangement and are exposed to significant risks and rewards. For arrangements that we determine are collaborations, we identify each unit of account and then determine whether a customer relationship exists for that unit of account. If we determine that a performance obligation within the collaborative arrangement is with a customer, we apply ASC 606.

If a portion of a distinct bundle of goods or services within the collaborative arrangement is not with a customer, we apply recognition and measurement based on an analogy to authoritative accounting literature or, if there is no appropriate analogy, a reasonable, rational, and consistently applied accounting policy election. To the extent the arrangement is within the scope of ASC Topic 808, Collaborative Arrangements (“ASC 808”), we assess whether aspects of the arrangement are within the scope of other accounting literature.

In June 2025, we entered into a Collaboration and License Agreement with SciBase Holding AB (“SciBase”). Following approval under the Swedish Screening of Foreign Direct Investments Act in the third quarter of 2025, we completed our investment in SciBase. The agreement aims to jointly develop diagnostic tests for dermatologic diseases, initially focused on atopic dermatitis, by combining SciBase’s Electrical Impedance Spectroscopy technology with our diagnostic and development expertise. Under the arrangement, we hold development and commercialization rights in North America, while SciBase retains rights in certain other territories. SciBase is entitled to royalties on our product sales, a mark-up on product sales to us, and a milestone payment upon achieving specified sales thresholds. Development costs are shared; however, SciBase deferred its initial clinical development costs for the initial indication and we will recover those costs through future royalty payments reductions.

We determined the agreement is a collaborative arrangement under ASC 808. Certain elements of the arrangement, including license rights and sales-based royalty provisions, represent transactions with a customer and are therefore accounted for under ASC 606. Other elements, such as shared development activities and cost reimbursements, are accounted for in accordance with ASC 808 and presented as reductions to research and development (“R&D”) expenses.

9

CASTLE BIOSCIENCES, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(UNAUDITED)

Accounts Receivable and Allowance for Credit Losses

We classify accounts receivable balances that are expected to be paid more than one year from the condensed consolidated balance sheet date as noncurrent assets. The estimated timing of payment utilized as a basis for classification as noncurrent is determined by analyses of historical payor-specific payment experience, adjusted for known factors that are expected to change the timing of future payments.

We accrue an allowance for credit losses against our accounts receivable based on management’s current estimate of amounts that will not be collected. We have elected the practical expedient under ASC Topic 326, Financial Instruments - Credit Losses (“ASC 326”) to assume that current conditions as of the balance sheet date do not change for the remaining life of our accounts receivable. Accordingly, management’s estimates are based on historical loss information adjusted for current conditions. We generally do not perform evaluations of customers’ financial condition and generally do not require collateral. Historically, our credit losses have not been significant. The allowance for credit losses was zero as of March 31, 2026 and December 31, 2025. Adjustments for implicit price concessions attributable to variable consideration, as discussed below, are incorporated into the measurement of the accounts receivable balances and are not part of the allowance for credit losses.

Convertible Loan Receivable

On November 7, 2025, we entered into a Convertible Loan Agreement with SciBase (the “Convertible Loan Receivable”), pursuant to which we loaned SEK 20.0 million, approximately $2.1 million based on the exchange rate in effect on November 7, 2025. The Convertible Loan Receivable bears interest at a rate of 2.00% plus the three-month Stockholm Interbank Offered Rate (“STIBOR”), payable quarterly. SciBase may prepay all or a portion of the Convertible Loan Receivable at any time. The Convertible Loan Receivable matures on November 7, 2030, at which time we have the option, at our sole discretion, to convert the outstanding principal plus accrued interest into shares of SciBase that are listed on the Nasdaq First North Growth Market in Sweden, receive full repayment in cash, or receive a combination of cash and shares.

We accounted for the convertible loan as a receivable within the scope of ASC Topic 310, Receivables. The carrying amount of the convertible loan is presented at amortized cost, within other assets - long-term in the condensed consolidated balance sheets. The Convertible Loan Agreement is remeasured into U.S. dollars using exchange rates in effect at each balance sheet date in accordance with ASC 830 with changes in exchange rates recognized in earnings. In addition, the embedded conversion feature to shares of SciBase did not meet the definition of a derivative and was not bifurcated from the host contract under ASC Topic 815, Derivatives and Hedging. We have determined that expected credit losses associated with the loan are insignificant and, accordingly, have not recorded a credit loss allowance under ASC Topic 326-20, Financial Instruments - Credit Losses.

Interest income on the Convertible Loan Receivable is recognized quarterly and included in interest income in the condensed consolidated statements of operations. Accrued interest receivable is recorded within prepaid expenses and other current assets in the condensed consolidated balance sheets.

Property and Equipment

Property and equipment are stated at cost, less accumulated depreciation and amortization. Depreciation is computed using the straight-line method over the estimated useful lives of the related assets, generally ranging from 5 to 39 years. Leasehold improvements are amortized on a straight-line basis over the shorter of the estimated useful life of the asset or the term of the lease. Leasehold improvements primarily relate to office and laboratory facilities in Phoenix, Arizona and Pittsburgh, Pennsylvania, and are generally depreciated over the remaining lease terms, which expire in 2034 and 2033, respectively.

Maintenance and repairs are expensed as incurred, and material improvements are capitalized. Interest costs incurred during the construction of major capital projects are capitalized until the underlying asset is ready for its intended use, at which point the capitalized interest costs are amortized using the straight-line method over the estimated useful life of the underlying asset. When assets are retired or otherwise disposed of, the cost and accumulated depreciation are removed from the condensed consolidated balance sheets and any resulting gain or loss is reflected in the condensed consolidated statements of operations in the period realized.

10

CASTLE BIOSCIENCES, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(UNAUDITED)

Goodwill

Goodwill represents the excess of the purchase price over the fair value of the net tangible and intangible assets acquired in a business combination. Goodwill is not amortized, but is tested for impairment. We test goodwill for impairment in the fourth quarter of each fiscal year and when events, or changes in circumstances, indicate that it may be impaired. Events and changes in circumstances indicating that goodwill may be impaired include sustained declines in the price of our common stock, increased competition, changes in macroeconomic developments, unfavorable government or regulatory developments and changes in coverage or reimbursement conditions.

Goodwill is tested for impairment at the reporting unit level where goodwill is held. Testing begins with completion of an optional qualitative assessment. If the qualitative assessment suggests that impairment is more likely than not, quantitative testing is conducted. If the qualitative assessment is bypassed, we proceed directly to quantitative testing. Quantitative testing consists of comparing the carrying value of goodwill to its estimated fair value. Impairment of goodwill is the condition that exists when the carrying value exceeds its fair value. Amounts by which carrying value exceed fair value, up to the total amount of goodwill allocated to the reporting unit, are recognized as an impairment loss in the condensed consolidated statements of operations.

Accrued Compensation

We accrue for liabilities under discretionary employee and executive bonus plans. Our estimated compensation liabilities are based on progress against corporate objectives approved by our board of directors, compensation levels of eligible individuals and target bonus percentage levels. Our board of directors reviews and evaluates the performance against these objectives and ultimately determines the actual achievement levels attained. We also accrue for liabilities under employee sales incentive bonus plans with accruals based on performance achieved to date compared to established targets. As of March 31, 2026 and December 31, 2025, we accrued approximately $7.9 million and $28.1 million, respectively, for liabilities associated with these bonus plans. These amounts are classified as current accrued liabilities in the condensed consolidated balance sheets based on the expected timing of payment.

Stock-Based Compensation

Stock-based compensation expense for equity instruments is measured based on the grant-date fair value of the awards. For stock option awards, and purchase rights made under the 2019 Employee Stock Purchase Plan (the “ESPP”), the fair value is estimated on the date of grant using the Black-Scholes option-pricing valuation model. For restricted stock units (“RSUs”) and performance-based restricted stock units (“PSUs”), the fair value is equal to the closing price of our common stock on the date of grant. For awards with graded vesting and only service conditions, we recognize compensation costs on a straight-line basis over the requisite service period of the awards. For stock options and RSUs, the requisite service period is generally the award’s vesting period (typically four years). PSUs vest upon the achievement of certain performance conditions and the provision of service with us through a specified period. Accruals of compensation cost for PSUs are based on the probable outcome of the performance conditions and are reassessed each reporting period. We recognize compensation cost for PSUs separately for each vesting tranche on a ratable basis over the requisite service period. The requisite service period for PSUs is based on an analysis of vesting requirements and performance conditions for the particular award. Certain employees are entitled to acceleration of vesting of a portion of their awards upon retirement, subject to age, service and notice requirements (“Retirement Policy”). Stock-based awards falling into the scope of the Retirement Policy are accounted for as a modification of existing awards under ASC Topic 718, Compensation – Stock Compensation. The modifications do not result in the recognition of incremental compensation cost; however, they do result in a new estimate of the requisite service period, which we reassess at each balance sheet date. For the ESPP, the requisite service period is generally the period of time from the offering date to the purchase date. Forfeitures are accounted for as they occur.

Comprehensive Loss

Comprehensive loss is defined as a change in equity during a period from transactions and other events and circumstances from non-owner sources. Comprehensive loss is made up of net loss plus net unrealized loss on marketable investment securities, which is our only other item of other comprehensive loss.

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(UNAUDITED)

Recently Adopted Accounting Pronouncements

In July 2025, the FASB issued ASU No. 2025-05, Financial Instruments—Credit Losses (Topic 326): Practical Expedient for Certain Current Receivables (“ASU 2025-05”), which provides a practical expedient for estimating expected credit losses on current accounts receivable and contract assets arising from transactions under ASC 606. The practical expedient allows entities to assume that current conditions remain unchanged over the remaining life of the receivables. ASU 2025-05 is effective for annual periods beginning after December 15, 2025, including interim periods within those annual periods. We adopted the standard effective January 1, 2026, with no impact on our consolidated financial statements.

Accounting Pronouncements Yet to be Adopted

In November 2024, the FASB issued ASU No. 2024-03, Income Statement—Reporting Comprehensive Income (Subtopic 220-40)—Expense Disaggregation Disclosures: Disaggregation of Income Statement Expenses (“ASU 2024-03”), which specifies additional disclosure requirements. The amendments in ASU 2024-03 require disclosure about the composition of certain income expense line items, such as purchases of inventory, employee compensation, and other expenses, as well as disclosure about selling expenses. The ASU is effective for fiscal years beginning after December 15, 2026, and interim periods beginning after December 15, 2027. Early adoption is permitted. We are currently evaluating the impact this update will have on the consolidated financial statements and disclosures.

In September 2025, the FASB issued ASU No. 2025-06, Intangibles—Goodwill and Other-Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software (“ASU 2025-06”), which modernizes the accounting for internal-use software costs. The amendments in ASU 2025-06 remove all references to prescriptive and sequential software development stages throughout ASC 350-40. The ASU is effective for annual periods beginning after December 15, 2027, including interim periods within those annual periods. Early adoption is permitted. We are currently evaluating the impact this update will have on the consolidated financial statements and disclosures.

We have evaluated all other recently issued, but not yet effective, accounting pronouncements and do not believe that these accounting pronouncements will have any material impact on the consolidated financial statements or disclosures upon adoption.

3. Revenue

All of our revenues from contracts with customers are associated with the provision of testing services. Our revenues are primarily attributable to our DecisionDx®-Melanoma test for cutaneous melanoma and our TissueCypher® test for patients diagnosed with Barrett’s esophagus. We also provide our DecisionDx®-UM test for uveal melanoma, MyPath® Melanoma test for patients with melanocytic lesions and our DecisionDx®-SCC test for cutaneous squamous cell carcinoma. IDgenetix®, a pharmacogenomics testing service focused on mental health, was previously offered and discontinued in May 2025.

Once we satisfy our performance obligations and bill for the service, the timing of the collection of payments may vary based on the payment practices of the third-party payor and the existence of contractually established reimbursement rates. The payments for our services are primarily made by third-party payors, including Medicare and commercial health insurance carriers. Certain contracts contain a contractual commitment of a reimbursement rate that differs from our list prices. However, absent a positive coverage policy, with or without a contractually committed reimbursement rate, with a commercial carrier or governmental program, our diagnostic tests may or may not be paid by these entities. In addition, patients do not enter into direct agreements with us that commit them to pay any portion of the cost of the tests in the event that their insurance provider declines to reimburse us. We may pursue, on a case-by-case basis, reimbursement from such patients in the form of co-payments and co-insurance, in accordance with the contractual obligations that we have with the insurance carrier or health plan. These situations may result in a delay in the collection of payments.

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(UNAUDITED)

The Medicare claims that are covered by Medicare are generally paid at a rate established on Medicare’s Clinical Laboratory Fee Schedule or by the respective Medicare contractor within 30 days from receipt. Medicare claims that were either submitted to Medicare prior to the local coverage determination or other coverage commencement date or are not covered but meet the definition of being medically reasonable and necessary pursuant to the controlling Section 1862(a)(1)(A) of the Social Security Act are generally appealed and may ultimately be paid at the first (termed “redetermination”), second (termed “reconsideration”) or third level of appeal (de novo hearing with an Administrative Law Judge). A successful appeal at any of these levels may result in prompt payment.

In the absence of Medicare coverage, contractually established reimbursements rates or other coverage, we have concluded that our contracts include variable consideration because the amounts paid by Medicare or commercial health insurance carriers may be paid at less than our standard rates or not paid at all, with such differences considered implicit price concessions. Variable consideration attributable to these price concessions is measured at the expected value using the “most likely amount” method under ASC 606. The amounts are estimated using historical average collection rates by test type and payor category taking into consideration the range of possible outcomes, the predictive value of our past experiences, the time period of when uncertainties expect to be resolved and the amount of consideration that is susceptible to factors outside of our influence, such as the judgment and actions of third parties. Such variable consideration is included in the transaction price only to the extent it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur when the uncertainties with respect to the amount are resolved. Variable consideration may be constrained and excluded from the transaction price in situations where there is no contractually agreed upon reimbursement coverage or in the absence of a predictable pattern and history of collectability with a payor. Accordingly, in such situations revenues are recognized on the basis of actual cash collections. Variable consideration for Medicare claims that are not covered by Medicare, including those claims undergoing appeal, is deemed to be fully constrained due to factors outside our influence (e.g., judgment or actions of third parties) and the uncertainty of the amount to be received is not expected to be resolved for a long period of time. Variable consideration is evaluated each reporting period and adjustments are recorded as increases or decreases in revenues. Included in revenues for the three months ended March 31, 2026 and 2025 were $0.6 million of net negative and $0.8 million of net positive revenue adjustments, respectively, associated with changes in estimated variable consideration related to performance obligations satisfied in previous periods.

These amounts include (i) adjustments for actual collections versus estimated amounts and (ii) cash collections and the related recognition of revenue in current period for tests delivered in prior periods due to the release of the constraint on variable consideration.

Because our contracts with customers have an expected duration of one year or less, we have elected the practical expedient in ASC 606 to not disclose information about our remaining performance obligations. Any incremental costs to obtain contracts are recorded as selling, general and administrative expenses as incurred due to the short duration of our contracts. Contract balances consisted solely of accounts receivable (both current and noncurrent) as of March 31, 2026 and December 31, 2025.

Disaggregation of Revenues

The table below provides the disaggregation of revenue by type (in thousands):

	Three Months Ended March 31,
	2026		2025
Dermatologic(1)	$	41,105	$	62,962
Non-Dermatologic(2)	42,574		25,026
Total net revenues	$	83,679	$	87,988

(1)Consists of DecisionDx-Melanoma, DecisionDx-SCC and MyPath Melanoma.

(2)Consists of TissueCypher, DecisionDx-UM and IDgenetix.

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(UNAUDITED)

We have presented disaggregated net revenues included in our single reportable segment in the table above. The characteristics for each test in our single segment are similar, with each test having a single performance obligation. Our CODM is the single individual responsible for managing our segment and reviews consolidated results and budgets in assessing performance and in allocating resources. See Note 15 for additional information about our reportable segment.

Payor Concentration

We rely upon reimbursements from third-party government payors (primarily Medicare) and private-payor insurance companies to collect accounts receivable related to sales of our tests.

Our significant third-party payors and their related revenues, each of which accounted for more than 10% of total revenues and accounts receivable balances were as follows:

	Percentage of Revenues				Percentage of  Accounts Receivable  (current) as of				Percentage of  Accounts Receivable  (noncurrent) as of
	Three Months Ended March 31,
	2026		2025		March 31, 2026		December 31, 2025		March 31, 2026		December 31, 2025
Medicare	40	%	47	%	19	%	18	%	*		*
Payor A	14	%	15	%	14	%	15	%	17	%	16	%
Payor B	*		*		17	%	22	%	*		10	%

*    Less than 10%

4. Loss Per Share

Basic loss per share is computed by dividing net loss for the period by the weighted-average number of common shares outstanding during the period. Diluted loss per share reflects the additional dilution from potential issuances of common stock, such as stock issuable pursuant to the exercise of stock options, vesting of RSUs and PSUs or purchases under the ESPP. The treasury stock method is used to calculate the potential dilutive effect of these common stock equivalents. Contingently issuable PSU awards are included in the computation of diluted loss per share when the applicable performance criteria would be met and the common shares would be issuable if the end of the reporting period were the end of the contingency period. However, potentially dilutive shares are excluded from the computation of diluted loss per share when their effect is antidilutive.

Because we reported a net loss for all periods presented, all potentially dilutive securities are antidilutive and are excluded from the computation of diluted loss per share for such periods.

The table below provides the weighted-average number of potential common shares associated with outstanding securities not included in our calculation of diluted loss per share for the three months ended March 31, 2026 and 2025 because to do so would be antidilutive or, in the case of PSUs, the applicable performance conditions have not yet been met (in thousands):

	Three Months Ended March 31,
	2026	2025
Stock options	2,769	2,983
RSUs and PSUs	3,946	3,739
ESPP	256	176
Total	6,971	6,898

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(UNAUDITED)

5. Marketable Investment Securities

Marketable investment securities consisted of the following (in thousands):

	March 31, 2026		December 31, 2025
Current marketable investment securities:
Equity securities	$	8,130	$	5,555
Debt securities - AFS	184,194		171,631
Debt securities - HTM	5,597		5,590
Total current marketable investment securities	$	197,921	$	182,776

On January 26, 2026, in connection with SciBase’s rights offering, we completed an amendment to our previously disclosed subscription commitment. We agreed to increase our commitment to subscribe for shares without subscription rights from 115.0 million shares to 125.0 million shares. This amendment was intended to achieve an outcome substantially similar to full participation under our subscription rights. In addition, we purchased subscription rights for another 30.5 million shares from a separate SciBase shareholder. These purchased rights, together with our shares without subscription rights, aggregated to a total share purchase of 155.5 million shares for $3.6 million.

Equity Securities

The portion of unrealized gains and losses related to equity securities still held during the period is as follows (in thousands):

	Three Months Ended March 31,
	2026		2025
Net gains (losses) on equity securities	$	2,022	$	(1,425)
Less: Net loss recognized on equity securities sold	(127)		—
Net unrealized gains (losses) recognized on equity securities still held	$	2,149	$	(1,425)

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(UNAUDITED)

Debt Securities

The following tables present our debt securities (in thousands):

	March 31, 2026
	Amortized Cost		Unrealized				Estimated Fair Value
			Gains		Losses
U.S. government securities - AFS	$	184,257	$	60	$	(123)	$	184,194
U.S. government securities - HTM	5,597		2		—		5,599
Total debt securities	$	189,854	$	62	$	(123)	$	189,793

	December 31, 2025
	Amortized Cost		Unrealized				Estimated Fair Value
			Gains		Losses
U.S. government securities - AFS	$	171,364	$	269	$	(2)	$	171,631
U.S. government securities - HTM	5,590		11		—		5,601
Total debt securities	$	176,954	$	280	$	(2)	$	177,232

Our U.S. government securities includes both AFS and HTM securities. The AFS securities are available to be sold to meet operating needs or otherwise, but are generally held through maturity. We classify all AFS investments as current assets, as these are readily available for use in current operations. As of March 31, 2026 and December 31, 2025, all of our AFS securities had contractual maturities of one year or less.

We classify our HTM investments as current assets, as we have the positive intent and ability to hold these investments to maturity, and all such maturities are less than one year from the balance sheet date.

We evaluated our U.S. government securities under the AFS and HTM impairment model guidance, respectively, and determined our investment portfolio is comprised of low-risk, investment grade securities.

For the three months ended March 31, 2026 and 2025, unrealized losses on our AFS and HTM U.S. government securities are not attributed to credit risk. We believe that an allowance for credit losses is unnecessary because the unrealized losses on certain of our marketable investment securities are due to market factors. The allowance for credit losses was zero as of March 31, 2026 and December 31, 2025.

There were no realized gains or losses on sales of debt securities for the three months ended March 31, 2026 and 2025. In addition, no credit-related or noncredit-related impairment losses were recorded for the three months ended March 31, 2026 and 2025.

Accrued interest receivable for our AFS and HTM U.S. government securities is included in prepaid expenses and other current assets in the condensed consolidated balance sheets. As of March 31, 2026 and December 31, 2025, the accrued interest receivable related to AFS securities was $1.3 million and $1.1 million, respectively. As of March 31, 2026 and December 31, 2025, the accrued interest receivable related to HTM securities was immaterial.

Additional information relating to the fair value of marketable investment securities can be found in Note 11.

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(UNAUDITED)

6. Property and Equipment, Net

Property and equipment, net consisted of the following (in thousands):

	March 31, 2026		December 31, 2025
Land	$	7,245	$	7,245
Building	43,872		—
Lab equipment	33,602		33,034
Leasehold improvements	14,875		14,834
Computer equipment	6,372		5,920
Furniture and fixtures	4,081		3,648
Construction-in-progress	10,751		51,059
Total	120,798		115,740
Less: Accumulated depreciation	(19,864)		(18,297)
Property and equipment, net	$	100,934	$	97,443

In 2025, construction-in-progress related primarily to construction of our new headquarters in Friendswood, Texas, which was substantially completed in February 2026. Upon completion, we commenced depreciation of the capitalized construction costs of the building over an estimated useful life of 39 years. As of March 31, 2026, construction-in-progress related primarily to leasehold improvements for our office and laboratory facilities in Scottsdale, Arizona.

Depreciation expense was recorded in the condensed consolidated statements of operations as follows (in thousands):

	Three Months Ended March 31,
	2026		2025
Cost of sales (exclusive of amortization of acquired intangible assets)	$	1,158	$	903
Research and development	129		94
Selling, general and administrative	416		442
Total	$	1,703	$	1,439

7. Goodwill and Other Intangible Assets, Net

Goodwill

We had a single reportable segment consisting of a single operating segment where the operating segment and the single reporting unit were the same as of March 31, 2026 and December 31, 2025, where all goodwill was allocated. As of March 31, 2026 and December 31, 2025, our goodwill was $10.7 million. There were no accumulated impairments of goodwill as of March 31, 2026 or December 31, 2025.

See Note 15 for additional information on our reportable segment.

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(UNAUDITED)

Other Intangible Assets, Net

Our other intangible assets, net consisted of the following (in thousands):

	March 31, 2026
	Gross carrying value		Accumulated amortization		Net		Weighted-Average Remaining Life (in years)
Developed technology	$	153,500	$	(66,920)	$	86,580	10.0
Assembled workforce	563		(487)		76		0.7
Total other intangible assets, net	$	154,063	$	(67,407)	$	86,656

	December 31, 2025
	Gross carrying value		Accumulated amortization		Net		Weighted-Average Remaining Life (in years)
Developed technology	$	153,500	$	(64,721)	$	88,779	10.3
Assembled workforce	563		(460)		103		0.9
Total other intangible assets, net	$	154,063	$	(65,181)	$	88,882

During the first quarter of 2025, we made the decision to discontinue our IDgenetix test offering, effective May 2025. As a result of this decision, we further revised the estimated useful life of the asset and determined that the intangible asset should be fully amortized as of March 31, 2025. This change resulted in an acceleration of amortization expense of approximately $20.1 million.

Amortization expense of intangible assets was $2.2 million and $28.3 million for the three months ended March 31, 2026 and 2025, respectively.

8. Other Accrued and Current Liabilities

Other accrued and current liabilities consisted of the following (in thousands):

	March 31, 2026		December 31, 2025
Accrued service fees	$	4,007	$	3,213
Clinical studies	2,718		2,674
Self-insurance liability	2,333		—
ESPP contributions	296		924
Other	1,337		2,126
Total	$	10,691	$	8,937

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(UNAUDITED)

9. Long-Term Debt

Our long-term debt is presented in the table below (in thousands):

	March 31, 2026		December 31, 2025
Term debt	$	10,200	$	10,200
Unamortized discount	(134)		(143)
Total debt, net	10,066		10,057
Less: Current portion of long-term debt	(1,667)		(417)
Total long-term debt	$	8,399	$	9,640

Future maturities of principal amounts on long-term debt as of March 31, 2026 were as follows (in thousands):

Years Ending December 31,
2026	$	417
2027	5,000
2028	4,583
Total	$	10,000

2024 Loan and Security Agreement

On March 26, 2024 (the “Closing Date”), we entered into a Loan and Security Agreement, as amended in April 2025 (the “2024 LSA”), by and between us, our wholly owned subsidiary, Castle Narnia Real Estate Holding 1, LLC and Silicon Valley Bank, a division of First-Citizens Bank & Trust Company (the “Lender”). The 2024 LSA provides for (i) a term loan in the principal amount of $10.0 million, which was drawn on the Closing Date (the “2024 Term Loan”), and (ii) a $25.0 million line of credit which expired undrawn on September 30, 2025.

The obligations under the 2024 LSA are secured by substantially all of our assets, excluding intellectual property, the real property held by us, and are subject to certain other exceptions and limitations. We have the right to prepay the 2024 LSA in whole. Amounts repaid may not be reborrowed.

The 2024 LSA contains customary conditions of borrowing, events of default and covenants, including covenants that restrict our ability to dispose of assets, merge with or acquire other entities, incur indebtedness and make distributions to holders of our capital stock. Should an event of default occur, including the occurrence of a material adverse change, we could be liable for immediate repayment of all obligations under the 2024 LSA. Should we seek to further amend the terms of the 2024 LSA, the consent of the Lender would be required. As of March 31, 2026, we were in compliance with all of the covenants.

The 2024 LSA bears interest at a floating rate equal to the greater of (a) the WSJ Prime Rate plus 0.25% or (b) 6.00% per annum. The 2024 Term Loan was interest-only from the Closing Date through November 30, 2025, however, on August 26, 2025, we elected to exercise our option to extend the interest-only period to December 1, 2026. Beginning in December 2026, the principal payments will be made in equal monthly installments through the maturity date of November 1, 2028.

In addition, we are required to make a final payment equal to 2.00% of the aggregate original principal amounts of the 2024 Term Loan, due at maturity or upon full repayment.

2024 Term Loan

On the Closing Date, we drew $10.0 million under the 2024 Term Loan. We are obligated to make a final payment of $0.2 million under the terms of the 2024 LSA final payment provisions. A discount on debt equal to this obligation was recorded on the draw date and is being amortized as additional interest expense using the effective interest method over the term of the debt. As of March 31, 2026, no payment on principal has been made and the weighted-average effective interest rate for all outstanding debt under the 2024 Term Loan was 7.69%.

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(UNAUDITED)

Interest Expense on Long-Term Debt

Interest expense on long-term debt consisted of the following (in thousands):

	Three Months Ended March 31,
	2026		2025
Interest expense on long term debt	$	184	$	202
Less: Capitalized interest	(58)		(194)
Total	$	126	$	8

10. Leases

Unit 1 Pittsburgh Lease

On March 19, 2026, we entered into a lease agreement with Faros ACA RE, LLC for approximately 21,000 square feet of additional office and laboratory space in Pittsburgh, Pennsylvania within a building we already partially occupy (the “Unit 1 Pittsburgh Lease”). The lease has an initial term of approximately 11 years and will commence upon completion of landlord-provided leasehold improvements. The lease includes tenant improvement allowances and provides for an extension option and a one-time early termination option, each subject to certain conditions.

As of March 31, 2026, the Unit 1 Pittsburgh Lease has not commenced, and accordingly, we have not recognized a right-of-use asset or lease liability in our condensed consolidated balance sheet.

11. Fair Value Measurements

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market in an orderly transaction between market participants at the measurement date. The fair value hierarchy prioritizes the inputs to valuation techniques used in measuring fair value. There are three levels to the fair value hierarchy based on the reliability of inputs, as follows:

Level 1 – Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets.

Level 2 – Inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly.

Level 3 – Unobservable inputs in which little or no market data exists, therefore requiring us to develop our own assumptions.

Financial instruments measured at fair value are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. Our assessment of the significance of a particular input to the fair value measurement in its entirety requires management to make judgments and consider factors specific to the asset or liability. For equity securities traded on foreign exchanges, fair values are determined based on quoted market prices in the applicable foreign markets and are remeasured into U.S. dollars using exchange rates in effect at each balance sheet date in accordance with ASC Topic 830, Foreign Currency Matters. The use of different assumptions, exchange rates, and/or estimation methodologies may have a material effect on estimated fair values. Accordingly, the fair value estimates disclosed, or amounts recorded, may not be indicative of the amount that we or holders of the instruments could realize in a current market exchange.

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(UNAUDITED)

The tables below provide information, by level within the fair value hierarchy, of our financial assets and liabilities that are accounted for at fair value on a recurring basis as of March 31, 2026 and December 31, 2025 (in thousands):

	As of March 31, 2026
	Quoted Prices in Active Markets for Identical Items (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
Assets
Money market funds(1)	$	68,684	$	—	$	—	$	68,684
U.S. government securities - AFS(2)	$	184,194	$	—	$	—	$	184,194
Equity securities(2)	$	8,130	$	—	$	—	$	8,130
Liabilities
Term Debt(3)(4)	$	—	$	10,066	$	—	$	10,066

	As of December 31, 2025
	Quoted Prices in Active Markets for Identical Items (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
Assets
Money market funds(1)	$	108,914	$	—	$	—	$	108,914
U.S. government securities - AFS(2)	$	171,631	$	—	$	—	$	171,631
Equity securities(2)	$	5,555	$	—	$	—	$	5,555
Liabilities
Term Debt(3)(4)	$	—	$	10,057	$	—	$	10,057

(1)Classified as “Cash and cash equivalents” in the condensed consolidated balance sheets.

(2)Classified as “Marketable investment securities” in the condensed consolidated balance sheets.

(3)Classified as “Current portion of long-term debt” and “Long term debt” in the condensed 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.

The Convertible Loan Receivable with SciBase is carried at amortized cost which approximates fair value due to the variable interest rate and market-based terms of the instrument. Fair value is estimated using a discounted cash flow model. The inputs used to fair value the Convertible Loan Receivable are classified as Level 2 in the fair value hierarchy and include a three-month STIBOR and a market credit spread. For additional information on the carrying amount and estimated fair value of our Convertible Loan Receivable, see Note 2.

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(UNAUDITED)

12. Commitments and Contingencies

From time to time, we may be involved in legal proceedings arising in the ordinary course of business. 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 the date of issuance of the subpoena. 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 of Health and Human Services, Office of Inspector General, or any other governmental authority as a result of the matters related to this subpoena. No claims have been made against us at this time. Any potential claims could subject us to significant liability for damages and harm our reputation. Our insurance and indemnities may not cover all claims that may be asserted against us. We are unable to predict the outcome and are unable to make a meaningful estimate of the amount or range of loss, if any, that could result from any unfavorable outcome.

13. Stock Incentive Plans and Stock-Based Compensation

Equity Incentive Plan

On July 24, 2019, we adopted the 2019 Equity Incentive Plan (the “2019 Plan”). The 2019 Plan provides for automatic annual increases to the number of shares authorized for issuance, equal to 5% of our common shares outstanding as of the immediately preceding year end, through January 1, 2029. Under this provision, effective January 1, 2026, an additional 1,484,315 shares became available under the 2019 Plan. As of March 31, 2026, 1,590,533 shares remained available for grant under the 2019 Plan.

Inducement Plan

On December 22, 2022, our board of directors approved the 2022 Inducement Plan (the “Inducement Plan”). The Inducement Plan provides for the granting of awards as inducement material to the grantee’s entering into employment with us to the extent such grantee was not previously an employee of ours or is entering into employment following a bona fide period of non-employment with us. As of March 31, 2026, there were 746,182 shares available for grant under the amended Inducement Plan.

Stock Options

Stock option activity under our stock plans for the three months ended March 31, 2026 is set forth below:

		Weighted-Average
	Stock Options Outstanding	Exercise Price		Remaining Contractual Term (Years)	Aggregate Intrinsic Value (in thousands)
Balance as of December 31, 2025	2,784,432	$	36.53
Granted	—	$	—
Exercised	(28,494)	$	11.30
Forfeited/Cancelled	(12,590)	$	53.51
Balance as of March 31, 2026	2,743,348	$	36.71	4.3	$	9,262
Exercisable as of March 31, 2026	2,740,690	$	36.72	4.3	$	9,262

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CASTLE BIOSCIENCES, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(UNAUDITED)

Restricted Stock Units

The following table summarizes our RSU activity for the three months ended March 31, 2026:

	Restricted Stock Units Outstanding	Weighted-Average Grant Date Fair Value
Balance as of December 31, 2025	3,395,762	$	22.42
Granted	1,268,848	$	27.57
Vested(1)	(628,644)	$	22.12
Forfeited/Cancelled	(52,647)	$	24.21
Balance as of March 31, 2026	3,983,319	$	24.08

(1)The aggregate number of shares withheld upon vesting for employee tax obligations was 201,867 for the three months ended March 31, 2026.

Performance-Based Restricted Stock Units

The following table summarizes our PSU activity for the three months ended March 31, 2026:

	Performance-Based Restricted Stock Units Outstanding	Weighted-Average Grant Date Fair Value
Balance as of December 31, 2025	350,144	$	21.72
Granted	172,397	$	27.57
Vested(1)	(88,757)	$	21.23
Forfeited/Cancelled	—	$	—
Balance as of March 31, 2026	433,784	$	24.15

(1)The aggregate number of shares withheld upon vesting for employee tax obligations was 28,797 for the three months ended March 31, 2026.

Employee Stock Purchase Plan

The ESPP provides for certain automatic increases in the number of shares of common stock reserved for issuance, which resulted in an additional 296,863 shares becoming available under the ESPP effective January 1, 2026. During the three months ended March 31, 2026, we issued 94,420 shares of common stock pursuant to scheduled purchases under the ESPP. As of March 31, 2026, 1,373,056 shares remained available for issuance under the ESPP.

Determining Fair Value - Summary of Assumptions

The following table sets forth assumptions used to determine the fair value of the purchase rights issued under the ESPP:

	Three Months Ended March 31,
	2026	2025
Average expected term (years)	1.2	1.2
Expected stock price volatility	54.54% - 58.00%	56.55% - 85.21%
Risk-free interest rate	3.41% - 3.61%	3.88% - 4.22%
Dividend yield	—%	—%

We use the closing price of our common stock on the date of grant to determine the fair value of RSUs and PSUs.

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CASTLE BIOSCIENCES, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(UNAUDITED)

Fair Value

There were no stock options granted for the three months ended March 31, 2026 and 2025. For the three months ended March 31, 2026 and 2025, the weighted-average grant date fair value of the purchase rights granted under the ESPP was $11.27 and $9.43 per share, respectively.

Stock-Based Compensation Expense

Stock-based compensation expense is included in the condensed consolidated statements of operations as follows (in thousands):

	Three Months Ended March 31,
	2026		2025
Cost of sales (exclusive of amortization of acquired intangible assets)	$	1,257	$	1,456
Research and development	1,443		1,895
Selling, general and administrative	7,076		7,828
Total stock-based compensation expense	$	9,776	$	11,179

Included in total stock-based compensation expense is $0.2 million and $0.3 million for the three months ended March 31, 2026 and 2025, respectively, from the accelerated recognition of expense for modifications of awards falling in scope of the Retirement Policy.

As of March 31, 2026, the total unrecognized stock-based compensation cost related to outstanding awards was $94.5 million, which is expected to be recognized over a weighted-average period of 2.8 years. The total unrecognized compensation cost will be adjusted for forfeitures in future periods as they occur.

14. Income Taxes

Our effective tax rate was immaterial for the three months ended March 31, 2026 and 2025.

The effective rate for the three months ended March 31, 2026 and 2025 differed from our federal statutory rate of 21% 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.

15. Segment and Related Information

We derive revenues through the delivery of test reports for our molecular diagnostic tests. All of our operations are located within the U.S. and our business is focused on the U.S. market.

We have a single reportable segment consisting of a single operating segment.

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CASTLE BIOSCIENCES, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(UNAUDITED)

The measures of segment profit or loss for our single reportable segment were as follows (in thousands):

	Three Months Ended March 31,
	2026		2025
Net revenues from external customers(1)	$	83,679	$	87,988
Significant segment expenses:
Personnel costs	58,367		52,200
Organizational and marketing costs	15,594		14,229
Inventory usage	6,437		4,731
Clinical studies and publication costs	2,542		2,085
Professional services	3,007		3,576
Other segment items	12,254		37,015
Segment loss	$	(14,522)	$	(25,848)

(1)For information on disaggregation of segment revenue by type and information about payor concentration, see Note 3.

Other Segment Items

Other segment items include all other operating expenses types, including 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 equity securities, realized gains or losses on investment securities, administrative costs, expense for use of prepaids, including insurance premiums and warranties for lab equipment, public company costs (less audit fees), interest and other non-operating loss or 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 profit or loss were as follows (in thousands):

	Three Months Ended March 31,
	2026		2025
Interest income	$	2,545	$	3,099
Interest expense	(134)		(17)
Depreciation and amortization	3,929		29,764
Income tax expense (benefit)	109		(423)
Stock-based compensation expense	9,776		11,179
Net gains (losses) on equity securities	2,022		(1,425)

Total assets for our reportable segment were located in the U.S. and were $547.8 million and $578.6 million as of March 31, 2026 and December 31, 2025, respectively. Expenditures for additions to long-lived assets were $5.2 million and $5.7 million for the three months ended March 31, 2026, and 2025, respectively.

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

You should read the following discussion and analysis of financial condition and results of operations together with our unaudited condensed consolidated financial statements and the related notes and other financial information included in this Quarterly Report on Form 10-Q with our audited financial statements and notes thereto as of and for the years ended December 31, 2025, and 2024 and the related Management’s Discussion and Analysis of Financial Condition and Results of Operations, including the section entitled “Critical Accounting Estimates,” included in our Annual Report on Form 10-K for the year ended December 31, 2025 (the “2025 10-K”), as filed with the Securities and Exchange Commission (the “SEC”) on February 26, 2026. Unless the context requires otherwise, references in this Quarterly Report on Form 10-Q to “we,” “us” and “our” refer to Castle Biosciences, Inc.

Forward-Looking Statements

The information in this discussion contains forward-looking statements and information within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), which are subject to the “safe harbor” created by those sections. These forward-looking statements include, but are not limited to, statements concerning our strategy, future operations, future financial position, future revenues, projected costs, prospects and plans and objectives of management. The words “anticipate,” “believe,” “could”, “estimate,” “expect,” “intend,” “may,” “plan,” “potential,” “project,” “will,” “would” or the negative or plural of these terms or other similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. We may not actually achieve the plans, intentions or expectations disclosed in our forward-looking statements and you should not place undue reliance on our forward-looking statements. Actual results or events could differ materially from the plans, intentions or expectations disclosed in the forward-looking statements that we make. These forward-looking statements involve risks and uncertainties that could cause our actual results to differ materially from those in the forward-looking statements, including, without limitation, the risks set forth in Part I, Item 1A, “Risk Factors” in the 2025 10-K, Part II, Item 1A, “Risk Factors” in this Quarterly Report on Form 10-Q and in our other filings with the SEC. The forward-looking statements are applicable only as of the date on which they are made, and we do not assume any obligation to update any forward-looking statements, except as may be required by law.

Overview

Castle Biosciences, Inc. is a molecular diagnostics company offering innovative test solutions to aid clinicians in the diagnosis and treatment of dermatologic cancers, Barrett’s esophagus (“BE”), atopic dermatitis (“AD”), and uveal melanoma (“UM”).

Our Test Portfolio

We currently offer six commercially available proprietary multi-analyte assays with algorithmic analysis (“MAAA”) tests for use in the fields of dermatology, gastroenterology, ophthalmology, and most recently includes a test to guide systemic treatment decisions in moderate-to-severe atopic dermatitis.

Our revenue is primarily generated by our DecisionDx-Melanoma risk stratification test for cutaneous melanoma (“CM”) and our TissueCypher risk stratification test for BE which is supplemented by revenue generated from our DecisionDx-UM risk stratification test for UM.

All of our MAAA tests, excluding our recently launched AdvanceAD-Tx test, have been granted Advanced Diagnostic Laboratory Test (“ADLT”) status by the Centers for Medicare and Medicaid (“CMS”) which means each test has demonstrated that (i) when combined with an empirically derived algorithm, it yields a result that predicts the probability a specific individual patient will develop a certain condition or conditions, or will respond to a particular therapy or therapies; and (ii) it provides new clinical diagnostic information that cannot be obtained from any other test or combination of tests. We believe this designation not only demonstrates our focus on developing and validating innovative tests but also enables our Medicare reimbursement rate to be set, over the long term, by the median private payor rate, which we believe provides a fair exchange of value. Further information about Medicare coverage and ADLT status with respect to each of our tests is set forth below.

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Test Overview

Our Dermatology Tests

DecisionDx-Melanoma is our proprietary risk stratification gene expression profile (“GEP”) test designed to predict the likelihood of a positive sentinel lymph node and the risk of metastasis or recurrence for patients diagnosed with invasive CM. In a typical year, we estimate that approximately 130,000 patients are diagnosed with invasive CM in the U.S., representing an estimated U.S. total addressable market (“TAM”) of approximately $540 million. We estimate that approximately 50% of patients diagnosed with CM are 65 years of age or older.

AdvanceAD-Tx is a non-invasive GEP test designed to guide systemic treatment selection for patients aged 12 years and older with moderate-to-severe AD. The test evaluates the expression of 487 genes across 12 known immune, inflammatory and skin-related pathways to identify the underlying biology driving an individual patient’s disease. Results classify patients into one of two molecular profiles: Janus Kinase (“JAK”) Inhibitor Responder Profile or T helper 2 (“Th2”) Molecular Profile. Using multiple data sources focused on one-year prevalence, we estimate that there are approximately 10 million individuals ages 12 and older in the U.S. with moderate-to-severe AD, representing an estimated U.S. TAM of approximately $33 billion. We commenced a limited access launch of the AdvanceAD-Tx test in November 2025.

DecisionDx‑SCC is our proprietary GEP test for use in patients with SCC with one or more risk factors (also referred to as “high-risk” SCC) that both predicts the risk of metastasis as well as response to adjuvant radiation therapy. We estimate 20% of SCC patients, or approximately 200,000 annually in the U.S., are classified as high risk, representing an estimated U.S. TAM of approximately $820 million.

MyPath Melanoma is our proprietary, diagnostic GEP test for use in patients with difficult-to-diagnose melanocytic lesions. Of the 2 million suspicious pigmented lesions biopsied annually in the U.S., we estimate that approximately 300,000 of those present difficult-to-diagnose melanocytic lesion, representing an estimated U.S. TAM of approximately $600 million.

Our Gastroenterology Test

TissueCypher is our proprietary risk stratification spatialomics test designed to predict future development of high-grade dysplasia (“HGD”) and/or esophageal cancer in patients with non-dysplastic (“ND”), indefinite dysplasia (“IND”) or low-grade dysplasia (“LGD”) BE. We estimate a U.S. TAM of approximately $1 billion. In May 2025, we expanded our BE capabilities through the acquisition of Capsulomics, Inc., d/b/a Previse (“Previse”), which includes methylation-based intellectual property and the Esopredict risk-stratification test. We expect these assets to support the future development of TissueCypher and enable the potential incorporation of additional molecular modalities. Beginning in the first quarter of 2026, we began offering Esopredict as a supplemental option when TissueCypher does not produce an actionable result. Revenue and test volume from Esopredict have not been material to date.

Our Ophthalmology Test

DecisionDx-UM is our proprietary, risk stratification GEP test that predicts the risk of metastasis for patients with UM. We believe DecisionDx-UM is the standard of care in the management of newly diagnosed UM in the majority of ocular oncology practices in the United States. We estimate a U.S. TAM of approximately $10 million.

Our Mental Health Test

IDgenetix is a PGx test that guides personalized mental health medication selection and management for patients with depression, anxiety and other mental health conditions. After careful further assessments, we discontinued our IDgenetix test in May 2025.

Reimbursement

The primary source of revenue for our products is reimbursement from third-party payors, which includes government payors, such as Medicare, and commercial payors, such as insurance companies. Achieving broad coverage and reimbursement of our current products by third-party payors and continued Medicare coverage are key components of our financial success.

We bill third-party payors and patients for the tests we perform. We have received Medicare coverage for our DecisionDx-Melanoma, TissueCypher, MyPath Melanoma and DecisionDx-UM tests which meet certain criteria for Medicare and Medicare Advantage beneficiaries. DecisionDx-SCC previously received Medicare coverage, which was subsequently impacted by LCD changes finalized in 2025.

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The Medicare rates discussed below are prior to giving effect to applicable sequestration in effect from time to time as described in further detail under “Government Regulation and Product Approval—Healthcare Reform” included in Item 1, Business, of the 2025 10-K.

DecisionDx-Melanoma

DecisionDx-Melanoma tests are processed from our Phoenix laboratory and since the second quarter of 2022, have been covered under “foundational” local coverage determinations (“LCD” or “LCDs”) finalized by Medicare Administrative Contractors (“MACs”) Palmetto and Noridian.

CMS reviewed and approved DecisionDx-Melanoma for ADLT status in 2019. Our rate is set annually based upon the median private payor rate for the first half of the second preceding calendar year. For example, the rate for 2026 was set using median private payor rate data from January 1, 2024 to June 30, 2024. Our rate for 2024 and 2025 was $7,193 per test and remains $7,193 per test for 2026.

TissueCypher

Our TissueCypher tests are processed in our Phoenix and Pittsburgh laboratories. Palmetto’s MolDX program oversees MAAA tests that are reported from our Phoenix laboratory and Noridian is the MAC responsible for administering Medicare claims for test reports issued by our Phoenix laboratory. Novitas is the MAC responsible for administering Medicare claims for test reports issued by our Pittsburgh laboratory.

CMS reviewed and approved TissueCypher for ADLT status in 2022. Effective January 1, 2023, the published Clinical Laboratory Fee Schedule (“CLFS”) rate for TissueCypher was set at $4,950 per test and remained effective through December 31, 2024. This rate was based on the median private payor rates received between April 1, 2022 and August 31, 2022. Beginning with 2025, the rate for TissueCypher has been set annually based on the median private payor rate for the first half of the second preceding calendar year. The rate for 2026 was set using median private payor rate data from January 1, 2024 to June 30, 2024. Our rate for 2025 was $4,950 per test and remains $4,950 per test for 2026.

DecisionDx‑SCC

We issue our DecisionDx-SCC tests from our Pittsburgh and Phoenix laboratories. Palmetto’s MolDX (“MolDX”) program oversees MAAA tests that are reported from our Phoenix laboratory and Noridian is the MAC responsible for administering Medicare claims for test reports issued by our Phoenix laboratory. Novitas is the MAC responsible for administering Medicare claims for test reports issued by our Pittsburgh laboratory.

CMS reviewed and approved DecisionDx-SCC for ADLT status in 2023. Effective July 1, 2023 and through March 31, 2024, CMS set the initial period rate equal to the list price of $8,500 per test. Effective April 1, 2024, we continued receiving reimbursement at a rate of $8,500 per test, set by CMS using median private payor rate data for the period July 1, 2023 and November 30, 2023, and this rate remained effective through December 31, 2025. Our rate for 2025 was $8,500 per test and remains $8,500 per test for 2026.

On July 4, 2024, Palmetto and Noridian finalized an LCD recommending no coverage for DecisionDx-SCC with an effective date of August 18, 2024. On January 9, 2025, Novitas finalized an oncology biomarker LCD, Genetic Testing for Oncology: Specific Tests, which also lists DecisionDx-SCC as non-covered; that LCD became effective on April 24, 2025.

In July 2025, we submitted reconsideration requests for both the Novitas and MolDX LCDs. Both Novitas and MolDX subsequently confirmed that our requests were valid. These confirmations represent an important procedural step in the reconsideration process, but it does not indicate coverage or a favorable review outcome.

MyPath Melanoma

MyPath Melanoma was covered under a test-specific LCD policy through Noridian that became effective in June 2019. Effective August 6, 2023, Palmetto and Noridian issued LCDs that converted the test-specific MyPath Melanoma LCD to a “foundational” LCD and provided coverage for MyPath Melanoma.

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CMS reviewed and approved MyPath for ADLT status in 2019. Our rate is set annually based upon the median private payor rate for the first half of the second preceding calendar year. For example, the rate for 2026 was set using median private payor rate data from January 1, 2024 to June 30, 2024. Our rate for 2024 and 2025 was $1,950 per test and remains $1,950 per test for 2026.

DecisionDx-UM

DecisionDx-UM tests are processed from our Phoenix laboratory and are covered under LCDs finalized by MAC administrators Palmetto and Noridian in July 2017.

CMS reviewed and approved DecisionDx-UM for ADLT status in 2019. Our rate is set annually based upon the median private payor rate for the first half of the second preceding calendar year. For example, the rate for 2026 was set using median private payor rate data from January 1, 2024 to June 30, 2024. Our rate for 2024 and 2025 was $7,776 per test and remains $7,776 per test for 2026.

IDgenetix

IDgenetix is currently covered under a Noridian LCD policy and accompanying billing and coding article developed by MolDX. During 2023, we obtained a test-specific PLA CPT code for IDgenetix which became effective October 1, 2023. The CLFS rate of $1,336 per test was effective January 1, 2024. Our reimbursement rate for 2024 was $1,336 per test and remained at $1,336 per test in the first quarter of 2025. Our IDgenetix test was discontinued in May 2025.

Delivered Test Reports

The number of test reports we deliver is a key indicator that we use to assess our business. A test report is generated when we receive a sample in our laboratory, and then the relevant test information is entered into our Laboratory Information Management System, the laboratory portion of the test is performed, including proprietary algorithmic analysis of the combined biomarkers, and a report is then delivered to the clinician who ordered the test.

The number of test reports delivered by us are presented in the table below:

	For the Three Months Ended March 31, 2026
	Q1
DecisionDx-Melanoma	10,021
DecisionDx‑SCC	3,702
MyPath Melanoma	973
Dermatologic Total	14,696
TissueCypher	11,745
DecisionDx-UM	492
Grand Total	26,933

	For the Three Months Ended March 31, 2025
	Q1
DecisionDx-Melanoma	8,621
DecisionDx‑SCC	4,375
MyPath Melanoma	926
Dermatologic Total	13,922
TissueCypher	7,432
DecisionDx-UM	470
IDgenetix(1)	2,578
Grand Total	24,402

(1)The IDgenetix test was discontinued effective May 2025.

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For the three months ended March 31, 2026, our test report volume increased by 10% compared to the same period in 2025. Our dermatologic test report volume increased by 6% for the three months ended March 31, 2026 compared to the prior period in 2025, largely driven by continued growth from our DecisionDx-Melanoma test. TissueCypher increased by 58% for the three months ended March 31, 2026, compared to the prior period in 2025, further contributing to the overall volume increase. For a discussion of how we recognize revenue derived from our tests, refer to “Components of Results of Operations—Net Revenues” below.

For our AdvanceAD-Tx product line, we received approximately 650 orders during the three months ended March 31, 2026, while still in the initial limited access phase. We believe early adoption reflects clinician interest in integrating AdvanceAD-Tx into existing AD treatment pathways. We plan to expand availability in a phased manner throughout the remainder of 2026.

For our DecisionDx-SCC product line, we continue to see opportunities for leverage, where many of the clinicians ordering our DecisionDx-Melanoma are the same clinicians who order our DecisionDx-SCC test. During the three months ended March 31, 2026, approximately 54% of all clinicians ordering DecisionDx-SCC had also ordered our DecisionDx-Melanoma test during that same period.

Information About Certain Metrics

The following provides additional information about certain metrics we have disclosed in this Management’s Discussion and Analysis of Financial Condition and Results of Operations.

Test Reports Delivered

Test reports delivered represent the number of completed test reports delivered by us during the reporting period indicated. The period in which a test report is delivered does not necessarily correspond with the period in which the related revenue, if any, is recognized, due to the timing and amount of adjustments for variable consideration under Accounting Standards Codification (“ASC”) Topic 606, Revenue from Contracts with Customers (“ASC 606”). We use this metric to evaluate the growth in adoption of our tests and to measure against our internal performance objectives. We believe this metric is useful to investors in evaluating the volume of our business activity from period-to-period that may not be discernible from our reported revenues under ASC 606.

Other Events

Impact of Macroeconomic Conditions

Macroeconomic conditions, including uncertainties associated with the ongoing conflicts in the Middle East, including the conflict between the U.S. and Iran, the ongoing conflict between Ukraine and Russia and related sanctions, economic slowdowns, the recent shutdown of the federal government including regulatory agencies, public health crises, labor shortages, recessions or market corrections, supply chain disruptions, inflation and monetary policy shifts, current or proposed international tariffs, trade restrictions and retaliatory trade measures, cybersecurity threats, liquidity concerns at, and potential failures of, banks and other financial institutions or other disruptions in the banking system or financing markets, higher interest rates and financial and credit market fluctuations, volatility in the capital markets and other evolving macroeconomic developments, continue to have direct and indirect impacts on our business and could in the future materially impact our results of operations and financial condition. We continue to actively monitor the impact of these macroeconomic factors on our results of operations, financial condition and cash flows. The extent of the impact of these factors on our operational performance and financial condition, including our ability to execute our business strategies and initiatives in the expected timeframe, will depend on future developments, which are uncertain and cannot be predicted; however, any continued or renewed disruption resulting from these factors could negatively impact our business.

Our Financial Results

Our net (loss) income may fluctuate significantly from period to period, depending on the timing of our planned development activities, the growth of our sales and marketing activities and the timing of revenue recognition under ASC 606. We expect our expenses will increase substantially over time as we:

•execute clinical studies to generate evidence supporting our current and future product candidates;

•execute our commercialization strategy for our current and future commercial products;

•continue our ongoing and planned development of new products in our pipeline;

•seek to discover and develop additional product candidates;

•hire additional scientific and research and development (“R&D”) staff;

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•add additional operational, financial and management information systems and personnel; and

•make additional capital expenditures to support business growth and sustain existing operations.

Factors Affecting Our Performance

We believe there are several important factors that have impacted, and that we expect will continue to impact, our operating performance and results of operations, including:

•Report volume. We believe that the number of reports we deliver to clinicians is an important indicator of the growth of adoption among the healthcare provider community. Our revenue and costs are affected by the volume of testing and mix of customers. Our performance depends on our ability to retain and broaden adoption with existing prescribing clinicians, as well as attract new clinicians. Our report volume could be negatively impacted by developments related to evolving macroeconomic developments, as discussed above.

•Reimbursement. We believe that expanding reimbursement is an important indicator of the value of our products. Payors require extensive evidence of clinical utility, clinical validity, patient outcomes and health economic benefits in order to provide reimbursement for diagnostic products. Our revenue depends on our ability to demonstrate the value of our products to these payors.

•Gross margin. We believe that our gross margin is an important indicator of the operating performance of our business. Higher gross margins reflect the average selling price of our tests, as well as the operating efficiency of our laboratory operations.

•Expansion of our sales force and marketing programs. We believe the expansion of our direct sales force and marketing organization to educate clinicians and pathologists on the value of our molecular testing products will significantly impact our performance.

•Integrating acquisitions. Revenue growth, operational results and advances to our business strategy depend on our ability to integrate any acquisitions into our existing business and effectively scale their operations. The integration of acquired assets may impact our revenue growth, increase the cost of operations or may require management resources that otherwise would be available for ongoing development of our existing business.

•New product development. A significant aspect of our business is our investment in R&D activities, including activities related to the development of new products. In addition to the development of new product candidates, we believe these studies are critical to gaining clinician adoption of new products and driving favorable coverage decisions by payors for such products.

Components of the Results of Operations

Net Revenues

We generate revenues from the sale of our products. Currently, our revenues are primarily derived from the sale of DecisionDx-Melanoma, TissueCypher and DecisionDx-UM. We bill third-party payors and patients for the tests we perform.

Under ASC 606, we recognize revenue at the amount we expect to be entitled, subject to a constraint for variable consideration, in the period in which our tests are delivered to the treating clinicians. We have determined that our contracts contain variable consideration under ASC 606 because the amounts paid by third-party payors may be paid at less than our standard rates or not paid at all, with such differences considered implicit price concessions. Variable consideration is recognized only to the extent it is probable that a significant reversal of revenue will not occur in future periods when the uncertainties are resolved. Variable consideration is evaluated each reporting period and adjustments are recorded as increases or decreases in revenues. Variable consideration for Medicare claims that are not covered by Medicare, including those claims undergoing appeal, is deemed to be fully constrained due to factors outside our influence (e.g., judgment or actions of third parties) and the uncertainty of the amount to be received is not expected to be resolved for a long period of time. For these fully constrained claims, we generally recognize revenue in the period the uncertainty is favorably resolved, if at all. Due to potential future changes in Medicare coverage policies and appeal cycles, insurance coverage policies, contractual rates and other trends in the reimbursement of our tests, our revenues may fluctuate significantly from period to period. Our ability to recognize revenue for a test is dependent on the development of reimbursement experience and obtaining coverage decisions. For tests with limited reimbursement experience or no coverage, we recognize revenues on the basis of actual cash collections.

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Our ability to increase our revenues will depend on our ability to further penetrate our target markets, and, in particular, generate sales through our direct sales force, maintain Medicare coverage for our currently marketed products, develop and commercialize additional tests, including through acquisitions, obtain reimbursement from additional third-party payors and increase our reimbursement rate for tests performed.

Cost of Sales (exclusive of amortization of acquired intangible assets)

The components of our cost of sales are material and service costs associated with testing samples, personnel costs (including salaries, bonuses, benefits and stock-based compensation expense), electronic medical record set up costs, order and delivery systems, shipping charges to transport samples, third-party test fees, and allocated overhead including rent, information technology costs, equipment and facilities depreciation and utilities. Costs associated with testing samples are recorded when the test is processed regardless of whether and when revenues are recognized with respect to that test. As a result, our cost of sales as a percentage of revenues may vary significantly from period to period because we do not recognize all revenues in the period in which the associated costs are incurred. We expect cost of sales in absolute dollars to increase as the number of tests we perform increases. Additionally, we expect cost of sales to increase prior to our launching of new tests, or prior to our initiating significant commercial expansion efforts, as we ready our operations to support anticipated business growth. For example, continued investment in and expansion of our laboratory facilities.

Gross margin and gross margin percentage are key indicators we use to assess our business. See the table in “Results of Operations—Comparison of the Three Months Ended March 31, 2026 and 2025” for details.

Research and Development

R&D expenses include costs incurred to develop our tests, collect clinical samples and conduct clinical studies to develop and support our products. These costs consist of personnel costs (including salaries, bonuses, benefits and stock-based compensation expense), prototype materials, laboratory supplies, consulting costs, regulatory costs, electronic medical records set up costs, costs associated with setting up and conducting clinical studies and allocated overhead, including rent, information technology, equipment depreciation and utilities. We expense all R&D costs in the periods in which they are incurred. We expect our R&D expenses to increase in absolute dollars as we continue to invest in R&D activities related to developing enhanced and new products.

We expect to use a portion of our cash and cash equivalents and marketable investment securities to further support and accelerate our ongoing and future clinical studies and pipeline initiatives.

Selling, General and Administrative

Selling, general and administrative (“SG&A”) expenses include executive, selling and marketing, legal, finance and accounting, human resources and billing functions. These expenses consist of personnel costs (including salaries, bonuses, benefits and stock-based compensation expense), direct marketing expenses, audit and legal expenses, consulting costs, payor outreach programs and allocated overhead, including rent, information technology, equipment depreciation, and utilities. Other administrative and professional services expenses within SG&A are expected to increase with the scale of our business, but selling and marketing-related expenses are expected to increase significantly, consistent with our growth strategy.

Amortization of Acquired Intangible Assets

Amortization of acquired intangible assets is primarily associated with developed technology obtained through acquisitions, such as our acquisitions of the Myriad MyPath Laboratory in May 2021, Cernostics in December 2021, and Previse in May 2025.

Interest Income

Interest income consists primarily of earnings on cash and cash equivalents, primarily money market funds, and our short-term U.S. government obligations are a component of our marketable investment securities.

Net Gains (Losses) on Equity Securities

Net gains (losses) on equity securities are primarily attributable to realized and unrealized gains and losses on our equity securities which we present as marketable investment securities.

Interest Expense

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

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Other Loss

Other loss is primarily attributable to unrealized foreign currency losses and gains on our foreign currency-denominated investments and loan receivable, which are presented as marketable investment securities and other assets, respectively.

Income Tax Expense (Benefit)

On July 4, 2025, the One Big Beautiful Bill Act (“OBBBA”) was enacted into law. The OBBBA includes a broad range of tax reform provisions affecting businesses, including reinstatement of permanent expensing of domestic research and development costs, higher EBITDA cap on the deduction for interest expense and 100% bonus depreciation. We will benefit from the reinstatement of permanent expensing of domestic research and development costs and 100% bonus depreciation.

Income tax expense consists primarily of income taxes related to federal and state jurisdictions in which we conduct business. 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 in May 2025, which resulted in a temporary difference and a corresponding deferred tax asset. We maintain a full valuation allowance for deferred tax assets including operating loss carryforwards and R&D credits and other tax credits.

As of December 31, 2025, we had federal NOL carryforwards of $134.8 million, of which $52.9 million will begin to expire in 2032 if not utilized to offset federal taxable income, and $81.9 million may be carried forward indefinitely. Also, as of December 31, 2025, we also had state NOL carryforwards of $113.0 million, which begin to expire in 2030 if not utilized to offset state taxable income.

Results of Operations

Comparison of the Three Months Ended March 31, 2026 and 2025

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

	Three Months Ended March 31,				Change
	2026		2025
	(unaudited)
NET REVENUES	$	83,679	$	87,988	$	(4,309)	(4.9)	%
OPERATING EXPENSES
Cost of sales (exclusive of amortization of acquired intangible assets)	20,533		16,383		4,150		25.3	%
Research and development	14,428		12,588		1,840		14.6	%
Selling, general and administrative	64,899		58,620		6,279		10.7	%
Amortization of acquired intangible assets	2,226		28,325		(26,099)		(92.1)	%
Total operating expenses, net	102,086		115,916		(13,830)		(11.9)	%
Operating loss	(18,407)		(27,928)		9,521		34.1	%
Interest income	2,545		3,099		(554)		(17.9)	%
Net gains (losses) on equity securities	2,022		(1,425)		3,447		241.9	%
Interest expense	(134)		(17)		(117)		(688.2)	%
Other loss	(439)		—		(439)		NA
Loss before income taxes	(14,413)		(26,271)		11,858		45.1	%
Income tax expense (benefit)	109		(423)		532		125.8	%
Net loss	$	(14,522)	$	(25,848)	$	11,326	43.8	%

NA = Not applicable

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Net Revenues

The following table provides a disaggregation of net revenues by type (in thousands):

	Three Months Ended March 31,
	2026		2025		Change
	(unaudited)
Dermatologic(1)	$	41,105	$	62,962	$	(21,857)
Non-Dermatologic(2)	42,574		25,026		17,548
Total net revenues	$	83,679	$	87,988	$	(4,309)

(1)Consists of DecisionDx-Melanoma, DecisionDx-SCC and MyPath Melanoma.

(2)Consists of TissueCypher, DecisionDx-UM and IDgenetix.

Net revenues for the three months ended March 31, 2026 decreased by $4.3 million, or 4.9%, to $83.7 million compared to the three months ended March 31, 2025, due to a $21.9 million decrease in revenues from our dermatologic tests, partially offset by a $17.5 million increase in revenues from our non-dermatologic tests.

The $21.9 million decrease in revenues from our dermatologic tests was primarily due to the loss of Medicare coverage for our DecisionDx-SCC test effective April 24, 2025, partially offset by an increase in DecisionDx-Melanoma revenues, which was primarily driven by a 16% increase in test report volumes and, to a lesser extent, a higher realized average selling price (“ASP”).

The $17.5 million increase in revenues from our non-dermatologic tests was largely attributable to a 58% increase in test report volumes for our TissueCypher test, and, to a much lesser extent, a higher realized ASP. The increase in TissueCypher test report volumes reflects growth driven by our sales force efforts. Net revenues from our non-dermatologic tests as a percentage of total net revenues increased from 28.4% for the three months ended March 31, 2025 to 50.9% for the three months ended March 31, 2026.

Cost of Sales (exclusive of amortization of acquired intangible assets)

Cost of sales (exclusive of amortization of acquired intangible assets) for the three months ended March 31, 2026 increased by $4.2 million, or 25.3%, compared to the three months ended March 31, 2025, primarily due to higher expenses for lab supplies, higher lab services cost, higher personnel costs, and higher depreciation expense. The increase in expenses for lab supplies and lab services expense was driven by higher test report volumes. Increases in personnel costs reflect a higher headcount, due to additions made to support business growth in response to growing test report volumes, as well as merit and annual inflationary wage adjustment for existing employees. The higher depreciation expense reflects continued investment in and expansion of our laboratory facilities.

Due to the nature of our business, a significant portion of our cost of sales expenses represents fixed costs associated with our testing operations. Accordingly, our cost of sales expense will not necessarily increase or decrease commensurately with the change in net revenues from period to period. We expect our cost of sales expenses (exclusive of amortization of acquired intangible assets) to continue to increase in future periods as we hire additional laboratory personnel and related resources to support our expected operational growth and higher test volumes.

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Gross Margin

The following table presents the calculation of gross margin (in thousands, except percentages):

	Three Months Ended March 31,
	2026			2025			Change
	(unaudited)
Net revenues	$	83,679		$	87,988		$	(4,309)
Less: Cost of sales (exclusive of amortization of acquired intangible assets)	20,533			16,383			4,150
Less: Amortization of acquired intangible assets	2,226			28,325			(26,099)
Gross margin	$	60,920		$	43,280		$	17,640
Gross margin percentage	72.8		%	49.2		%	23.6		%

Our gross margin percentage was 72.8% for the three months ended March 31, 2026, compared to 49.2% for the three months ended March 31, 2025. The increase was primarily driven by significantly lower amortization of acquired intangible assets. Amortization expense was elevated in the prior-year period due to accelerated amortization related to the IDgenetix test, which was fully amortized as of March 31, 2025 following the decision to discontinue IDgenetix, resulting in no amortization expense associated with this asset in the current period.

Research and Development

R&D expenses increased by $1.8 million, or 14.6%, for the three months ended March 31, 2026, compared to the three months ended March 31, 2025, primarily due to higher personnel costs and higher clinical studies costs. The increases in personnel costs reflect a higher headcount to support continued business growth and increases in clinical studies costs reflect investment in our pipeline products.

We expect to continue incurring R&D expenses through our continued investments in our ongoing pipeline initiatives and as we seek opportunities to build evidentiary support and new tests where commercial opportunities exist.

Selling, General and Administrative

The following table provides a breakdown of SG&A expenses (in thousands):

	Three Months Ended March 31,
	2026		2025		Change
	(unaudited)
Sales and marketing	$	41,035	$	36,808	$	4,227
General and administrative	23,864		21,812		2,052
Total selling, general and administrative expense	$	64,899	$	58,620	$	6,279

Sales and marketing expenses increased by $4.2 million, or 11.5%, for the three months ended March 31, 2026, compared to the three months ended March 31, 2025. The increase is primarily due to higher personnel costs and higher sales related travel expenses. Increases in personnel costs reflect a higher headcount driven by sales force expansion as well as merit and annual inflationary wage adjustment for existing employees. Higher sales related travel expenses reflect increased field activity to support growing test report volumes. Stock-based compensation expense included in sales and marketing expense was $3.5 million for the three months ended March 31, 2026, compared to $4.0 million for the three months ended March 31, 2025.

General and administrative expenses increased by $2.1 million, or 9.4%, for the three months ended March 31, 2026, compared to the three months ended March 31, 2025. The increase is primarily due to higher personnel costs, higher information technology-related costs, and higher travel costs partially offset by a decrease in professional fees. Increases in personnel costs reflect headcount expansions in our administrative support functions as well as merit and annual inflationary wage adjustment for existing employees. Stock-based compensation expense included in general and administrative expense was $3.6 million for the three months ended March 31, 2026, compared to $3.8 million for the three months ended March 31, 2025.

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Amortization of Acquired Intangible Assets

Amortization decreased by approximately $26.1 million for the three months ended March 31, 2026, compared to the three months ended March 31, 2025, primarily due to our decision to discontinue the IDgenetix test offering beginning in May 2025. As a result of this decision, we revised the estimated useful life of the related developed technology intangible asset and fully amortized the remaining carrying value as of March 31, 2025. The decrease is partially offset by amortization of the developed technology intangible asset recognized in association with the Esopredict test following our acquisition of Previse in May 2025.

Net Gains (Losses) on Equity Securities

Net gains (losses) on equity securities increased by $3.4 million for the three months ended March 31, 2026, compared to the three months ended March 31, 2025. The increase was primarily driven by unrealized gains on equity securities, including our investment in SciBase, partially offset by unrealized and realized losses on other equity securities.

Other Loss

Other loss increased by $0.4 million for the three months ended March 31, 2026, compared to the three months ended March 31, 2025, primarily due to unrealized foreign currency losses on foreign currency-denominated assets. There were no comparable losses in the prior-year period.

Income Tax Expense (Benefit)

Income tax expense was $0.1 million for the three months ended March 31, 2026 and primarily consisted of income taxes related to federal and state jurisdictions in which we conduct business. Our income tax benefit was $0.4 million for the three months ended March 31, 2025, primarily driven by the revision of the estimated useful life of an intangible asset and our net operating loss position during the period.

Stock-Based Compensation Expense

The following table indicates the amount of stock-based compensation expense (non-cash) included in the condensed consolidated statements of operations (in thousands):

	Three Months Ended March 31,
	2026		2025		Change
	(unaudited)
Cost of sales (exclusive of amortization of acquired intangible assets)	$	1,257	$	1,456	$	(199)
Research and development	1,443		1,895		(452)
Selling, general and administrative	7,076		7,828		(752)
Total stock-based compensation expense	$	9,776	$	11,179	$	(1,403)

Stock-based compensation expense, which is allocated among cost of sales, R&D expense and SG&A expense, totaled $9.8 million for the three months ended March 31, 2026, compared to $11.2 million for the three months ended March 31, 2025. The decrease was primarily attributable to higher fair value awards granted in prior periods having substantially vested, resulting in a lower mix of higher fair value awards in the current period.

We expect stock-based compensation expense will continue to be material in future periods, attributable to both existing awards outstanding and anticipated additional grants to our current and future employees. As of March 31, 2026, we had 942 employees compared to 784 as of March 31, 2025. As of March 31, 2026, the total unrecognized stock-based compensation cost related to outstanding awards was $94.5 million, which is expected to be recognized over a weighted-average period of 2.8 years.

Liquidity and Capital Resources

Sources of Liquidity

Our principal sources of liquidity are our cash and cash equivalents, marketable investment securities and cash generated from the sale of our products. All of our marketable investment securities are considered investment grade and are readily available for use in current operations. As of March 31, 2026 and December 31, 2025, we had marketable investment securities of $197.9 million and $182.8 million, respectively. Additionally, as of March 31, 2026 and December 31, 2025, we had cash and cash equivalents of $63.8 million and $116.7 million, respectively.

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On April 4, 2025, we amended the 2024 Loan and Security Agreement (the “2024 LSA”) to modify certain terms, including the extension of the draw period for our line of credit from March 31, 2025 to September 30, 2025. In August 2025, we exercised the interest-only milestone provision under the 2024 LSA to extend the interest-only period on the term loan from November 30, 2025 to December 1, 2026. The line of credit under the 2024 LSA expired on September 30, 2025 and is no longer available as a source of liquidity. No draws were made on the line of credit.

Our liquidity has been primarily derived from the revenue generated from the sale of our products. We believe that our existing cash and cash equivalents, marketable investment securities and anticipated cash generated from sales of our products will be sufficient to fund our operations for at least the next 12 months. However, we have based these estimates on assumptions that may prove to be wrong, and could result in us depleting our capital resources sooner than expected.

As mentioned above, we expect to use a portion of our cash and cash equivalents and marketable investment securities to further support and accelerate our R&D activities, including the clinical studies noted above in “—Components of the Results of Operations—Research and Development.”

Material Cash Requirements

Our primary uses of capital are, and we expect will continue to be, compensation and related expenses, clinical R&D services, laboratory operations, equipment and related supplies, legal and other regulatory expenses, general administrative costs and, from time to time, expansion of our laboratory and office facilities in support of our growth. We anticipate that a substantial portion of our cash requirements in the foreseeable future will relate to the further commercialization of our currently marketed products, the development of our future product candidates in our pipeline and the potential commercialization of these pipeline products, should their development be successful.

In February 2024, we purchased a plot of land in Friendswood, Texas and soon thereafter began development of the land and construction of a commercial office building which now serves as our corporate headquarters. Over the duration of this project, we incurred significant capital expenditures through payments to the developer under a percentage-of-completion basis. We completed the portions of the building that serves as our headquarters in February 2026, at which time we began occupying the building. During the three months ended March 31, 2026 and 2025, we incurred capital expenditures of $2.7 million and $5.1 million, respectively, related to this development project.

Since our inception, we have generally incurred significant losses and negative operating cash flows, and we have relied heavily on proceeds from our financing activities to fund capital expenditures, business expansion campaigns, and to offset operating deficits. For the year ended December 31, 2025, we recognized a net loss of $24.2 million, and generated positive operating cash flow of $64.3 million, however, we may be unable to sustain profitability and positive cash flows in future periods. Medicare coverage for our DecisionDx-SCC test was discontinued in April 2025, which reduced revenues and cash inflows from this test during 2025. We expect this impact to continue unless our reconsideration requests related to both the MolDX and Novitas LCDs are approved. Our ability to maintain profitability will heavily depend on us maintaining Medicare coverage for our currently marketed products, on the successful commercialization of the products we plan to launch in the future, and our ability to manage operating expenses. We expect to continue to incur expenses in the future as we invest in the commercialization of our existing products and the development and commercialization of our current pipeline products and future product candidates.

We believe that our existing cash and cash equivalents, marketable investment securities and anticipated cash generated from the sale of our commercial products will be sufficient to fund our operations for at least the next 12 months. We believe we will meet longer-term expected cash requirements and obligations through a combination of existing cash and cash equivalents, marketable investment securities and anticipated cash generated from sales of our products and issuances of equity securities or debt offerings. However, we have based these estimates on assumptions that may prove to be wrong, and we could utilize our available capital resources sooner than we expect. There are numerous risks and uncertainties associated with developing genomic tests, including, among others, the uncertainty of:

•successful commencement and completion of clinical study protocols;

•successful identification and acquisition of tissue samples;

•the development and validation of genomic classifiers; and

•acceptance of new genomic tests by clinicians, patients and third-party payors including competitor actions.

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Because of the numerous risks and uncertainties associated with research, development and commercialization of product candidates, we are unable to estimate our exact working capital requirements. Our future funding requirements will depend on and could increase significantly as a result of, many factors, including those listed above as well as those listed in Part I, Item 1A, “Risk Factors” in the 2025 10-K and Part II, Item 1A, “Risk Factors” in this Quarterly Report on Form 10-Q and in our other filings with the SEC.

In the event additional funding is required, we expect that we would use a combination of equity and debt financings, which may not be available to us when needed, on terms that we deem to be favorable or at all. To the extent that we raise additional capital through the sale of equity or convertible debt securities, the ownership interest of our stockholders will be diluted, and the terms of these securities may include liquidation or other preferences that adversely affect the rights of common stockholders. Debt financing and preferred equity financing, if available, may involve agreements that include covenants limiting or restricting our ability to take specific actions, such as incurring additional debt, making acquisitions or capital expenditures or declaring dividends. Any disruptions to, or volatility in, the credit and financial markets or any deterioration in overall economic conditions may make any necessary debt or equity financing more difficult to obtain, more costly and/or more dilutive. If we are unable to raise additional funds through debt or equity financing or other arrangements when needed, we may be required to delay, limit, reduce or terminate our product discovery and development activities or future commercialization efforts.

Long-Term Debt

Our long-term debt is presented in the table below (in thousands):

	March 31, 2026		December 31, 2025
	(unaudited)
Term debt	$	10,200	$	10,200
Unamortized discount	(134)		(143)
Total debt, net	10,066		10,057
Less: Current portion of long-term debt	(1,667)		(417)
Total long-term debt	$	8,399	$	9,640

2024 Loan and Security Agreement

On March 26, 2024 (the “Closing Date”), we entered into the 2024 LSA, as amended in April 2025, by and between us, our wholly owned subsidiary, Castle Narnia Real Estate Holding 1, LLC and Silicon Valley Bank, a division of First-Citizens Bank & Trust Company (the “Lender”). The 2024 LSA provides for (i) a term loan in the principal amount of $10.0 million, which was drawn on the Closing Date (the “2024 Term Loan”), and (ii) a $25.0 million line of credit which expired undrawn on September 30, 2025.

The obligations under the 2024 LSA are secured by substantially all of our assets, excluding intellectual property, the real property held by us, and are subject to certain other exceptions and limitations. We have the right to prepay the 2024 LSA in whole. Amounts repaid may not be reborrowed.

The 2024 LSA contains customary conditions of borrowing, events of default and covenants, including covenants that restrict our ability to dispose of assets, merge with or acquire other entities, incur indebtedness and make distributions to holders of our capital stock. Should an event of default occur, including the occurrence of a material adverse change, we could be liable for immediate repayment of all obligations under the 2024 LSA. Should we seek to further amend the terms of the 2024 LSA, the consent of the Lender would be required. As of March 31, 2026, we were in compliance with all of the covenants.

The 2024 LSA bears interest at a floating rate equal to the greater of (a) the WSJ Prime Rate plus 0.25% or (b) 6.00% per annum. The 2024 Term Loan was interest-only from the Closing Date through November 30, 2025, however, on August 26, 2025, we elected to exercise our option to extend the interest-only period to December 1, 2026. Beginning in December 2026, the principal payments will be made in equal monthly installments through the maturity date of November 1, 2028.

In addition, we are required to make a final payment equal to 2.00% of the aggregate original principal amounts of the 2024 Term Loan, due at maturity or upon full repayment.

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2024 Term Loan

On the Closing Date, we drew $10.0 million under the 2024 Term Loan. We are obligated to make a final payment of $0.2 million under the terms of the 2024 LSA final payment provisions. A discount on debt equal to this obligation was recorded on the draw date and is being amortized as additional interest expense using the effective interest method over the term of the debt. As of March 31, 2026, no payment on principal has been made and the weighted-average effective interest rate for all outstanding debt under the 2024 Term Loan was 7.69%.

Leases

We have entered into various operating and finance leases, which are primarily associated with our laboratory facilities and office space.

Total undiscounted future minimum payment obligations under our operating leases and finance leases as of March 31, 2026 totaled approximately $39.2 million, of which $1.9 million is payable through the remainder of 2026 and $37.3 million is payable through early 2037. The leases expire on various dates through 2037 and provide certain options to renew for additional periods. On March 19, 2026, we entered into a new lease agreement with an initial term of approximately 11 years for laboratory and office space located in Pittsburgh, Pennsylvania. As of March 31, 2026, the lease had not yet commenced. Upon commencement, we expect the leases to increase our undiscounted future minimum payment obligations by a total of approximately $7.7 million.

We expect our lease obligations may increase in the future as we expand our facilities, operations and headcount in support of the anticipated growth in our portfolio of commercial products and pipeline tests.

Cash Flows

The following table summarizes our sources and uses of cash and cash equivalents for each of the periods presented (in thousands):

	Three Months Ended March 31,
	2026		2025
	(unaudited)
Net cash used in operating activities	$	(22,129)	$	(6,036)
Net cash used in investing activities	(25,803)		(22,431)
Net cash used in financing activities	(5,033)		(1,553)
Net change in cash and cash equivalents	(52,965)		(30,020)
Cash and cash equivalents, beginning of period	116,729		119,709
Cash and cash equivalents, end of period	$	63,764	$	89,689

Operating Activities

Net cash used in operating activities was $22.1 million for the three months ended March 31, 2026. The net loss of $14.5 million includes non-cash charges of stock-based compensation expense of $9.8 million, depreciation and amortization of $3.9 million, offset by net gains on equity securities of $2.0 million. Cash used as a result of changes in operating assets and liabilities was $19.4 million, primarily due to decreases in accrued compensation of $19.2 million, increases in prepaid expenses and other current assets of $6.7 million, offset by increases in accounts payable of $3.2 million, increases in other accrued and current liabilities of $2.8 million and a decrease in accounts receivable of $1.1 million.

Net cash used in operating activities was $6.0 million for the three months ended March 31, 2025. The net loss of $25.8 million includes non-cash charges of depreciation and amortization of $29.8 million, stock-based compensation expense of $11.2 million, net losses on equity securities of $1.4 million and accretion of discounts on marketable investment securities of $1.4 million. Cash used as a result of changes in operating assets and liabilities was $20.4 million, primarily due to decreases in accrued compensation of $14.7 million, increases in accounts receivable of $5.2 million, increases in prepaid expenses and other current assets of $3.4 million, partially offset by decreases in inventory of $1.3 million and increases in other accrued and current liabilities of $1.1 million.

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The $16.1 million increase in net cash used in operating activities for the three months ended March 31, 2026, compared to the three months ended March 31, 2025, was primarily due to increases in operating expenditures and the timing of working capital changes, including higher payments of annual bonuses and employee benefits. Cash used during the three months ended March 31, 2026 included $28.8 million of such payments, compared to $22.5 million in the prior-year period, and these payments are not expected to recur in the remainder of 2026.

Investing Activities

Net cash used in investing activities was $25.8 million for the three months ended March 31, 2026 and consisted primarily of purchases of marketable investment securities of $55.1 million, purchases of property and equipment of $12.5 million, partially offset by $39.1 million of proceeds from maturities of marketable investment securities, and $2.7 million of proceeds from the sale of equity securities.

Net cash used in investing activities was $22.4 million for the three months ended March 31, 2025 and consisted primarily of purchases of marketable investment securities of $48.4 million, purchases of debt securities classified as held-to-maturity of $5.6 million and purchases of property and equipment of $4.7 million, partially offset by $36.3 million of proceeds from maturities of marketable investment securities.

The $3.4 million increase in cash used in investing activities for the three months ended March 31, 2026, compared to the three months ended March 31, 2025, was primarily due to $7.7 million of higher purchases of property and equipment and $6.7 million of higher purchases of marketable investment securities, partially offset by no purchases of debt securities classified as held-to-maturity, higher proceeds from maturities of marketable investment securities of $2.8 million, and proceeds from the sale of equity securities of $2.7 million.

Financing Activities

Net cash used in financing activities was $5.0 million for the three months ended March 31, 2026, and consisted primarily of $6.6 million of payments for employee taxes related to the vesting of Restricted Stock Units (“RSUs”) and Performance Stock Units (“PSUs”), partially offset by $1.3 million of proceeds from contributions to our 2019 Employee Stock Purchase Plan (the “ESPP”).

Net cash used in financing activities was $1.6 million for the three months ended March 31, 2025, and consisted primarily of $2.5 million of payments for employee taxes attributable to the vesting of RSUs, partially offset by the $1.0 million of proceeds from contributions to our ESPP.

Critical Accounting Estimates

During the three months ended March 31, 2026, there were no significant changes to the information discussed under “Critical Accounting Estimates” included in the Management’s Discussion and Analysis of Financial Condition and Results of Operations section of our 2025 10-K.

Item 3. Quantitative and Qualitative Disclosures About Market Risk.

Interest Rate Risk

We are exposed to market risks in the ordinary course of our business. These risks primarily relate to interest rate fluctuations. As of March 31, 2026, we had cash and cash equivalents of $63.8 million, consisting of bank deposits and money market funds. We had marketable investment securities of $197.9 million, primarily invested in U.S. government securities. Due to the nature of these instruments, we believe our exposure to interest rate risk is not material.

As of March 31, 2026, we had outstanding term debt of $10.1 million under a term loan that bears interest at a floating rate based on the WSJ Prime Rate, subject to an interest rate floor of 6.00%, which exposes us to interest rate risk.

A hypothetical 10% change in interest rates during any of the periods presented would not have had a material impact on our financial statements.

Foreign Currency Risk

We are exposed to foreign currency exchange rate risk primarily related to a loan receivable and certain equity securities denominated in Swedish Krona (“SEK”). As of March 31, 2026, this loan had a principal balance of SEK 20 million and bears interest at a rate of 2.00% plus the three-month Stockholm Interbank Offered Rate. We do not currently hedge our foreign currency exposure. A hypothetical 10% change in foreign currency exchange rates

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would increase or decrease the value of our foreign currency-denominated assets by approximately $1.0 million, which we do not consider material to our financial statements.

Inflation Risk

Our exposure to inflationary pressures is primarily in personnel and related costs. The extent of any future impacts from inflation on our business and our results of operations will depend on the duration and severity of inflationary trends, which we are unable to predict. If inflationary pressures persist or increase, our operating expenses may rise and we may utilize our capital resources sooner than expected. Additionally, due to the reimbursement environment in which we operate, our payors may be unwilling or unable to adjust reimbursement rates to offset inflationary cost increases.

Equity Price Risk

As of March 31, 2026, we held equity securities with a total fair value of $8.1 million. A hypothetical 10% decrease in the market price of these securities would result in an approximate $0.8 million decrease in fair value. These securities are subject to market-related risks that could materially impact their value.

Item 4. Controls and Procedures.

Evaluation of Disclosure Controls and Procedures

We maintain “disclosure controls and procedures,” as defined in Rules 13a-15(e) or 15d-15(e) under the Exchange Act, that are designed to ensure that information required to be disclosed in the reports that we file or submit under the Exchange Act is (1) recorded, processed, summarized and reported, within the time periods specified in the SEC’s rules and forms and (2) accumulated and communicated to our management, including our principal executive officer and principal financial officer, to allow timely decisions regarding required disclosure. Management recognizes that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving their objectives and management necessarily applies its judgment in evaluating the cost-benefit relationship of possible controls and procedures.

Our management, with the participation of our Chief Executive Officer and Chief Financial Officer, evaluated the effectiveness of our disclosure controls and procedures as of March 31, 2026. Based upon the evaluation, our Chief Executive Officer and Chief Financial Officer concluded that, as of such date, our disclosure controls and procedures were effective at the reasonable assurance level.

Changes in Internal Control over Financial Reporting

There have been no changes in our internal control over financial reporting (as defined in Rules 13a-15(f) or 15d-15(f) under the Exchange Act) that occurred during the first quarter of 2026 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

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PART II—OTHER INFORMATION

Item 1. Legal Proceedings.

From time to time, we may be involved in legal proceedings arising in the ordinary course of business. Legal proceedings, including litigation, government investigations and enforcement actions could result in material costs, occupy significant management resources and entail civil and criminal penalties, even if we ultimately prevail. On February 1, 2024, we received a subpoena from U.S. 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 the date of issuance of the subpoena. 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 of Health and Human Services, Office of Inspector General, or any other governmental authority as a result of the matters related to this subpoena. No claims have been made against us at this time. This inquiry, and any potential resulting claim asserted against us, with or without merit, could be time-consuming, expensive to address and divert management’s attention and other resources. These claims also could subject us to significant liability for damages and harm our reputation. Our insurance and indemnities may not cover all claims that may be asserted against us. We are unable to predict the outcome and are unable to make a meaningful estimate of the amount or range of loss, if any, that could result from any unfavorable outcome.

Item 1A. Risk Factors.

In addition to the other information set forth in this Quarterly Report on Form 10-Q, you should carefully consider the risk factors and other cautionary statements described under the heading “Item 1A. Risk Factors” included in the 2025 10-K, which could materially affect our business, financial condition or future results. Additional risks and uncertainties not currently known to us or that we currently deem to be immaterial also may materially and adversely affect our business, financial condition or future results. There have been no material changes in our risk factors from those described the 2025 10-K other than the updates to the risk factors or new risk factors set forth below.

We may disclose changes to risk factors or additional risk factors from time to time in our future filings with the SEC.

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Risks Related to Our Financial Condition

We incurred significant losses in the past, and we may be unable to achieve sustained profitability in the future.

Since our inception, we have had a history of net losses. For the year ended December 31, 2025, we had net loss of $24.2 million, and as of December 31, 2025, we had an accumulated deficit of $224.3 million. For the three months ended March 31, 2026, we had net loss of $14.5 million, and as of March 31, 2026, we had an accumulated deficit of $238.8 million. We cannot predict if we will continue to achieve profitability in the future. We may incur losses in the future as we plan to invest significant additional funds toward the expansion of our commercial organization, the conduct of clinical utility and validity studies to support adoption of our products and the development or acquisition of additional products. We also expect increases in our stock-based compensation expense in future periods due to additional awards outstanding, attributable to increased headcount. Additionally, our performance could be affected by the impacts of geopolitical and macroeconomic developments, such as the ongoing conflicts in the Middle East, including the conflict between the U.S. and Iran, the ongoing conflict between Ukraine and Russia and related sanctions, economic slowdowns, the recent shutdown of the federal government including regulatory agencies, labor shortages, recessions or market corrections, supply chain disruptions, inflation and monetary policy shifts, current or proposed international tariffs, trade restrictions and retaliatory trade measures, cybersecurity threats, liquidity concerns, and the potential failures of bank or other disruptions in the banking system or financial markets, higher interest rates and financial and credit market fluctuations, volatility in the capital markets or other evolving macroeconomic developments. Due to the requirements associated with being a public company, we expect to continue incurring significant additional legal, accounting and other expenses. We also expect that any acquisitions of businesses, assets, products or technologies will increase our expenses. These increased expenses will make it harder for us to achieve future profitability or generate positive cash flows. Furthermore, our revenues from our DecisionDx-SCC test represented a lesser portion of our 2025 revenues compared to prior years following the discontinuance of Medicare reimbursement as of April 24, 2025, and we expect it will continue to be a smaller portion of our 2026 operating results. See “—Risks Related to Our Business—Our revenue currently depends primarily on sales from our DecisionDx-Melanoma, TissueCypher, and DecisionDx-SCC tests, and we will need to generate sufficient revenue from these products and other products to grow our business.” We may also incur significant losses in the future for a number of reasons, many of which are beyond our control, including the other risks described in the 2025 10-K, adoption of our products, coverage of and reimbursement rates for our products from third-party payors, and future research and development activities. Our failure to achieve profitability in the future could cause the market price of our common stock to decline and make it more difficult or costly for us to raise additional capital.

Risks Related to Our Business

Our revenue currently depends primarily on sales from our DecisionDx-Melanoma, TissueCypher and DecisionDx-SCC tests, and we will need to generate sufficient revenue from these products and other products to grow our business.

Our revenue in 2025 was primarily derived from the sale of our DecisionDx-Melanoma, TissueCypher, and DecisionDx-SCC tests. While we also derive revenue from our other tests, we expect that the majority of our revenue for the next several years will be derived from sales of our DecisionDx-Melanoma and TissueCypher tests. Revenues from our DecisionDx-SCC test represented a significant portion of our 2025 revenues but are not expected to be so in our 2026 operating results. On January 9, 2025, Novitas finalized an oncology biomarker LCD that became effective on April 24, 2025. On April 24, 2025, the Novitas LCD, Genetic Testing for Oncology: Specific Tests, that includes DecisionDx-SCC as noncovered, became effective.

In July 2025, we submitted reconsideration requests for both the Novitas and MolDX LCDs. Novitas subsequently confirmed that our request for DecisionDx-SCC was valid. MolDX also subsequently confirmed that our request for DecisionDx-SCC was valid and that the test has been placed on its waiting list, with an Open Meeting date to be determined. These confirmations represent another procedural step in the reconsideration process, but it does not indicate coverage or a favorable review outcome.

We believe that our long-term commercial success, and ability to generate revenue, will depend on our ability to develop and market additional products, on our ability to increase market penetration for our existing and potential future products and on our ability to obtain favorable coverage and reimbursement policies from government payors, such as Medicare, and from private payors, such as insurance companies.

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Without positive coverage policies, our products may not be reimbursed and we may not be able to recognize revenue. If we are unable to increase sales and expand coverage and reimbursement for DecisionDx-Melanoma, TissueCypher, and our other tests, develop and commercialize other products, and successfully obtain coverage and adequate reimbursement for such products, our revenue and our ability to achieve profitability would be impaired, and the market price of our stock could decline substantially.

Unfavorable U.S. and global economic conditions could adversely affect our business, financial condition, results of operations or cash flows.

Our results of operations could be adversely affected by general conditions in the U.S. and global economies, the U.S. and global financial markets and adverse macroeconomic developments. U.S. and global market and economic conditions have been, and continue to be, disrupted and volatile due to many factors, including public health crises, geopolitical and macroeconomic developments, the ongoing conflict in the Middle East, including the conflict between the U.S. and Iran, the ongoing conflict between Ukraine and Russia and related sanctions, economic slowdowns, the recent shutdown of the federal government including regulatory agencies, labor shortages, recessions or market corrections, supply chain disruptions, inflation and monetary policy shifts, current or proposed international tariffs, trade restrictions and retaliatory trade measures, cybersecurity threats, liquidity concerns, and the potential failures of bank or other disruptions in the banking system or financial markets, higher interest rates and financial and credit market fluctuations, volatility in the capital markets or other evolving macroeconomic developments, among others. General business and economic conditions that could affect our business, financial condition or results of operations include fluctuations in economic growth, debt and equity capital markets, foreign currency exchange rates, liquidity of the global financial markets, changes in trade and tariff policies, the availability and cost of credit, investor and consumer confidence, and the strength of the economies in which we, our collaborators, our manufacturers and our suppliers operate.

A severe or prolonged global economic downturn could result in a variety of risks to our business. For example, inflation rates, particularly in the U.S., have increased recently to levels not seen in years, and increased inflation has resulted in increased personnel costs and increased prices for certain lab supplies and may result in additional increases in our operating costs (including our labor costs), reduced liquidity and limits on our ability to access credit or otherwise raise capital on acceptable terms, if at all. In addition, the U.S. Federal Reserve has raised, and may again raise, interest rates in response to concerns about inflation, which coupled with reduced government spending and volatility in financial markets may have the effect of further increasing economic uncertainty and heightening these risks. Furthermore, the closures of specific financial institutions, or the broader financial services industry, may lead to market-wide liquidity shortages that could materially harm our business and financial condition. For example, closures of Silicon Valley Bank, Signature Bank and First Republic Bank in 2023 resulted in broader financial institution liquidity risk and concerns. Additionally, rapid changes in U.S. trade policy, such as the imposition of additional tariffs and trade barriers, as well as potential retaliatory measures taken by other governments, could increase the price of and/or affect the availability of imported raw materials used in the production of our products.

Risks of a prolonged global economic downturn are particularly true in Europe, which is undergoing a continued severe economic crisis. A weak or declining economy could also strain our suppliers and manufacturers, possibly resulting in supply disruption. Any of the foregoing could harm our business and we cannot anticipate all of the ways in which the current economic climate and financial market conditions could adversely impact our business.

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Financial markets around the world are experiencing volatility following the conflict between the U.S. and Iran in February 2026 and the invasion of Ukraine by Russia in February 2022. As a result of the U.S. and Iran conflict the U.S., UK, Canada, Australia, Japan, South Korea, Israel, and the European Union have placed sanctions and export controls on Iran. Due to the escalation of the ongoing conflict involving the U.S. and Iran, the closure and risk of closure of the Strait of Hormuz has imposed significant constraints on global oil and energy transportation and production. Additionally, in response to the invasion of Ukraine, the U.S., UK and European Union, along with others, imposed significant new sanctions and export controls against Russia, Russian banks and certain Russian individuals and may implement additional sanctions or take further punitive actions in the future. The full economic and social impact of the sanctions imposed on Russia (as well as possible future punitive measures that may be implemented), as well as the counter measures imposed by Russia, in addition to the ongoing military conflict between Ukraine and Russia, which could conceivably expand into the surrounding region, remains uncertain; however, both the conflict and related sanctions have resulted and could continue to result in disruptions to trade, commerce, pricing stability, credit availability and/or supply chain continuity in both Europe and globally, and has introduced significant uncertainty into global markets. In particular, the Russia-Ukraine conflict has contributed to rapidly rising costs of living (driven largely by higher energy prices) in Europe and other advanced economies. More recently, the escalation of hostilities between Iran and Israel has introduced additional geopolitical instability and uncertainty, particularly in the Middle East. This conflict has the potential to disrupt global energy supplies, impact shipping routes, and lead to broader regional or international involvement, further straining global supply chains and financial markets. Further, a weak or declining economy could strain our suppliers, manufacturers and collaborators, possibly resulting in additional supply disruption for our product candidates. As a result, our business and results of operations may be adversely affected by the ongoing conflict between the U.S. and Iran and the conflict between Ukraine and Russia, particularly to the extent it escalates to involve additional countries, further economic sanctions or wider military conflict. If economic conditions in Europe, the Middle East, or other key markets for our business and the business of our suppliers, manufacturers and collaborators remain uncertain or deteriorate further, we could experience adverse effects on our business, financial condition, results of operations or cash flows.

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

Use of Proceeds from IPO of Common Stock

On July 29, 2019, we completed our IPO, pursuant to which we issued and sold 4,600,000 shares of our common stock, including 600,000 shares associated with the full exercise of the underwriters’ option to purchase additional shares, at a price to the public of $16.00 per share.

The offer and sale of all of the shares of our common stock in the IPO were registered under the Securities Act pursuant to our Registration Statements on Form S-1, as amended (File Nos. 333-232369 and 333-232796), which were declared or became effective on July 24, 2019.

There has been no material change in our planned use of the net proceeds from the IPO as described in the final prospectus filed with the SEC on July 26, 2019 relating to our Registration Statements on Form S-1 (File Nos. 333-232369 and 333-232796).

Since the effective date of our registration statement through March 31, 2026, we have not used any of the net proceeds from the IPO. Pending such uses, we have invested, and plan to continue to invest, the balance of the net proceeds from the IPO in cash and cash equivalent securities or highly liquid investment securities.

Item 3. Defaults Upon Senior Securities.

None.

Item 4. Mine Safety Disclosures.

Not applicable.

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Item 5. Other Information.

Insider Trading Arrangements

On March 9, 2026, Frank Stokes, our Chief Financial Officer, adopted a Rule 10b5-1 trading arrangement providing for the sale from time to time of an aggregate of up to 29,421 shares of our common stock. The trading arrangement is intended to satisfy the affirmative defense in Rule 10b5-1(c). The duration of the trading arrangement is estimated to be from June 8, 2026 until the earlier of all transaction under the trading arrangement being completed or June 30, 2026.

No other officers or directors, as defined in Rule 16a-1(f), adopted and/or terminated a Rule 10b5-1 trading arrangement or a non-Rule 10b5-1 trading arrangement, as defined in Regulation S-K Item 408, for the three months ended March 31, 2026.

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Item 6. Exhibits.

Exhibit Number	Description
3.1	Amended and Restated Certificate of Incorporation of the Registrant, incorporated by reference to Exhibit 3.1 of the Registrant’s Current Report on Form 8-K filed with the SEC on May 23, 2025.
3.2	Amended and Restated Bylaws of the Registrant, incorporated by reference to Exhibit 3.1 of the Registrant’s Current Report on Form 8-K filed with the SEC on August 8, 2025.
4.1	Form of Common Stock Certificate of the Registrant, incorporated by reference to Exhibit 4.1 of the Registrant’s Registration Statement on Form S-1 (File No. 333-232369), as amended, originally filed with the SEC on June 26, 2019.
10.1*	First Amendment to Office Lease Agreement, dated March 5, 2026, by and between the Registrant and Perimeter Gateway Portfolio LLC.
10.2*†	Lease Agreement, dated March 19, 2026, by and between the Registrant and Faros ACA RE LLC.
10.3*†	Second Amendment to Lease Agreement, dated March 19, 2026, by and between the Registrant and ACA Concourse East Unit 3 LLC.
31.1*	Certification of Principal Executive Officer pursuant to Rules 13a-14(a) and 15d-14(a) of the Exchange Act.
31.2*	Certification of Principal Financial Officer pursuant to Rules 13a-14(a) and 15d-14(a) of the Exchange Act.
32.1**	Certification of Principal Executive Officer and Principal Financial Officer pursuant to Rules 13a-14(b) or 15d-14(b) of the Exchange Act, and 18 U.S.C. Section 1350.
101.INS*	Inline XBRL Instance Document—the instance document does not appear in the Interactive Data File as its XBRL tags are embedded within the Inline XBRL document.
101.SCH*	Inline XBRL Taxonomy Extension Schema.
101.CAL*	Inline XBRL Taxonomy Extension Calculation Linkbase.
101.DEF*	Inline XBRL Taxonomy Extension Definition Linkbase.
101.LAB*	Inline XBRL Taxonomy Extension Label Linkbase.
101.PRE*	Inline XBRL Taxonomy Extension Presentation Linkbase.
104*	Cover Page Interactive Data File (embedded within the Inline XBRL and contained in Exhibit 101).

*    Filed herewith

**    Furnished herewith

† Certain schedules or exhibits have been omitted pursuant to Item 601(a)(5) of Regulation S-K. A copy of any omitted schedule or exhibit will be furnished to the SEC upon request; provided, however, that we may request confidential treatment pursuant to Rule 24b-2 of the Exchange Act for any schedule or exhibit so furnished.

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

		CASTLE BIOSCIENCES, INC.
Date:	May 6, 2026	By:	/s/ Derek J. Maetzold
			Derek J. Maetzold President and Chief Executive Officer (Principal Executive Officer)
Date:	May 6, 2026	By:	/s/ Frank Stokes
			Frank Stokes Chief Financial Officer (Principal Financial and Accounting Officer)

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EX-10.01

Exhibit 10.1

FIRST AMENDMENT TO OFFICE LEASE AGREEMENT

THIS FIRST AMENDMENT TO OFFICE LEASE AGREEMENT (this “First Amendment”) is made and entered into by and between PERIMETER GATEWAY PORTFOLIO LLC, a Delaware limited liability company (“Landlord”), and CASTLE BIOSCIENCES, INC., a Delaware corporation (“Tenant”), effective as of 3/5/2026, 2026 (the “Effective Date”).

W I T N E S S E T H:

WHEREAS, Landlord and Tenant previously entered into that certain Office Lease Agreement dated as of May 14, 2025 (the “Existing Lease”), pursuant to which Tenant leases certain premises (the “ Existing Premises”) known as Suite B-110, comprising approximately 55,573 rentable square feet, located on the first (1st) floor of the building having an address of 8667-8701 East Hartford Drive in Scottsdale, Arizona; and

WHEREAS, pursuant to Section 2.3 of the Existing Lease, Tenant had a ROFR on Suites B-220 (“Suite B-220”) and B-230 located on the second (2nd) floor of the Building having an address of 8667 East Hartford Drive, Scottsdale, Arizona, 85260; and

WHEREAS, Landlord delivered a ROFR Notice to Tenant on Suite B-220 and Tenant has elected not to exercise its ROFR with respect to Suite B-220;

WHEREAS, the parties have agreed to amend Section 2.3 of the Existing Lease and to provide Tenant with an Expansion Option (as hereinafter defined), all as more particularly set forth herein; and

WHEREAS, the parties have further agreed to correct an error regarding the allocation of parking spaces in the Existing Lease.

NOW, THEREFORE, for and in consideration of the promises contained herein, and other good and valuable consideration paid by each of Landlord and Tenant to the other, the receipt and sufficiency of which are hereby acknowledged, Landlord and Tenant agree that the Lease is hereby ratified and amended as follows:

1.Defined Terms. The Existing Lease, as amended by this First Amendment, is hereinafter referred to as the “Lease”. Unless otherwise defined in this First Amendment, all capitalized terms used herein shall have the same meaning as set forth in the Existing Lease.

2.ROFR. The parties hereby acknowledge and agree that Tenant has elected not to exercise its ROFR with respect to Suite B-220 and that, provided Tenant’s ROFR with respect to B-220 is not revived and continued pursuant to the terms of Section 2.3 of the Existing Lease, Tenant shall no longer have a ROFR with respect to Suite B-220 and Section 2.3 of the Existing Lease shall be deemed to be deleted in its entirety and replaced with the following:

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“Subject to the right of any other tenant with respect to the ROFR Available Space (as hereinafter defined), which rights, if any, are superior to the rights granted to Tenant herein, and provided that (i) no Event of Default exists under this Lease as of the date of exercise, and (ii) Tenant is leasing the entire Premises as of the date Landlord is otherwise obligated to deliver the ROFR Notice (as hereinafter defined), Tenant shall have an ongoing right of first refusal (the “ROFR”) on (a) the space known as of the Effective Date as Suite B-230 located on the second (2nd) floor of the Building having an address of 8667 East Hartford Drive, Scottsdale, Arizona, 85260 (“Suite B-230”) and (b) all space located on the first (1st) floor of the Building having an address of 8701 East Hartford Drive, Scottsdale, Arizona, 85260 (together with Suite B-230, the “ROFR Available Space”) on any occasion on which any third-party makes a bona fide offer to Landlord to lease the ROFR Available Space (or any portion thereof) that Landlord is willing to accept (an “Offer”). Upon Landlord’s receipt of an Offer, Landlord shall promptly deliver written notice thereof to Tenant (a “ROFR Notice”); provided, however, that Landlord shall not deliver a ROFR Notice to Tenant for Suite B-230 prior to April 1, 2027. The ROFR Notice shall contain in reasonable detail all of the material terms of such Offer (including, but not limited to, square footage, rental rate, base year, tenant improvement and other allowances, rent concessions and abatements and other financial inducements, included parking spaces and lease term). Upon Tenant’s receipt of a ROFR Notice, Tenant shall, within ten (10) Business Days (as hereinafter defined) following such receipt, deliver to Landlord a written notice (a “ROFR Reply Notice”) stating whether or not it elects to exercise the ROFR with respect to the space identified in the ROFR Notice and that consists of or includes all or a portion of the ROFR Available Space (the “ROFR Space”), on the same terms and conditions stated in the Offer; provided, however, (X) if Tenant exercises its ROFR within the first twenty-four (24) months of the Lease Term, any tenant improvement allowance, rent abatement or other financial incentives contained in such ROFR Notice shall be appropriately pro-rated for the remaining Lease Term, and, (Y) if Tenant exercises its ROFR after the first twenty-four (24) months of the Lease Term, the term of the lease of the ROFR Space shall be the longer of the remaining Lease Term and the term set forth in the Offer and (A) if the term of the lease of the ROFR Space is the remaining Lease Term, any tenant improvement allowance, rent abatement or other financial incentives contained in such ROFR Notice shall be appropriately pro-rated and (B) if the term of the lease of the ROFR Space is the term set forth in the Offer, the Lease Term for the Premises shall be extended to be coterminous with the term of the lease for the ROFR Space, in which event Base Monthly Rent for the Premises shall be increased by $0.75 per rentable square foot of the Premises on each annual anniversary of the Commencement Date. Tenant’s ROFR Reply Notice shall be binding on and irrevocable by Tenant. Within thirty (30) days following Tenant’s timely issuance of a ROFR Reply Notice, the parties shall use good faith efforts to execute an appropriate amendment to this Lease regarding the terms of this Lease of the ROFR Space. If Tenant does not timely deliver its ROFR Reply Notice or if the parties, despite good faith efforts, are unable to timely reach agreement on an appropriate amendment after Tenant’s timely issuance of a ROFR Reply Notice, Landlord shall be free to lease such ROFR Space to the third-party; provided, however, that if (i) Landlord does not execute the lease described in the ROFR Notice within nine (9) months after Tenant declines to exercise the ROFR, or (ii) Landlord does not execute the lease

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described in the ROFR Notice and is willing to accept material economic terms of the lease described in the ROFR Notice that are more favorable to the third-party by five percent (5%) or more than those contained in the ROFR Notice, then Tenant shall again have the ROFR set forth in this Section 2.3. If (1) Landlord delivers to Tenant a ROFR Notice that pertains to less than all of the ROFR Available Space and (2) Landlord enters into a lease with Tenant or the prospective lessee on the terms described in the ROFR Notice, Tenant’s ROFR shall continue in effect with respect to the remaining ROFR Available Space. If the ROFR Space identified in any ROFR Notice includes space that is not part of the ROFR Available Space, Tenant’s acceptance of Landlord’s offer in the ROFR Notice shall not require Tenant to enter into a lease for any of the ROFR Space identified in the ROFR Notice that is not part of the ROFR Available Space. The ROFR is personal to the Named Tenant and may not be assigned, transferred or conveyed to any party, except in connection with a permitted transfer of this Lease pursuant to Article 23.”

In the event Tenant’s ROFR with respect to B-220 is revived and continued pursuant to the terms of Section 2.3 of the Existing Lease, then Section 2.3 as stated in the Existing Lease shall remain in full force and effect, and shall not be replaced with the preceding paragraph.

3.Expansion Option. From the Effective Date until March 31, 2027 (“Expansion Option Exercise Date”), Landlord hereby grants Tenant the right to expand (“Expansion Option”) into Suite B-230. Suite B-230 is subject to a lease with another tenant (the “Existing Lease”). Landlord shall (a) not, prior to the Expansion Option Exercise Date: extend or renew the term of the Existing Lease; (b) use commercially reasonable efforts to not permit the existing tenant under the Existing Lease to remain in possession of Suite B-230 beyond the expiration of the term of the Existing Lease; (c) not permit any other party any right of occupancy to Suite B-230 prior the Expansion Option Exercise Date; (d) not market, offer for lease, or accept any offers for lease or occupancy of Suite B-230 prior the Expansion Option Exercise Date; and (e) not knowingly take any other action that would interfere with Tenant’s right to exercise the Expansion Option. In order to exercise the Expansion Option, Tenant shall deliver written notice (“Expansion Notice”) to Landlord by no later than March 31, 2027, following which, the parties shall enter into an amendment to the Lease to memorialize the expansion of the Premises to include Suite B-230 on the following terms (the “Expansion Amendment”), which Expansion Amendment the parties shall use good faith efforts to execute within thirty (30) days after Tenant’s delivery of the Expansion Notice. The terms of the Expansion Amendment shall be as follows: (a) Landlord shall improve the Suite B-230 (the “Suite B-230 Tenant Improvements”) in accordance with plans and specifications mutually agreed upon by Landlord and Tenant, each acting reasonably and in good faith, (b) the Lease Term for Suite B-230 (the “Suite B-230 Lease Term”) shall commence upon the date (the “Suite B-230 Commencement Date”) on which Landlord delivers Suite B-230 to Tenant with the Suite B-230 Tenant Improvements Substantially Completed subject to Tenant Delays, but not later than the date that is seven (7) months after the effective date of the Expansion Amendment, subject to Landlord Delays (to be defined in the Expansion Amendment) and/or Force Majeure Delays, and shall expire upon the expiration of the Lease Term for the Existing Premises, (c) subject to abatement as provided below, Base Monthly Rent for Suite B-230 shall start at $35.75 per rentable square foot of Suite B-230

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and shall increase by $0.75 on each annual anniversary of the Suite B-230 Commencement Date, (d) Base Monthly Rent for Suite B-230 shall be abated for a period equal to twelve (12) months multiplied by a fraction, the numerator of which is the number of months in the Suite B-230 Lease Term and the denominator of which is one hundred and thirty-two (132), (e) Tenant’s Pro Rata Share shall increase by the rentable square footage of Suite B-230, (f) the Base Year for Suite B-230 shall be calendar year 2027, (g) Tenant shall be entitled to sixty (60) additional Reserved Spaces at no additional charge to Tenant, fifty-one (51) of which additional Reserved Spaces shall be in the West Garage and nine (9) of which additional Reserved Spaces shall be in the East Garage (subject to adjustment as to location as may be mutually agreed upon by the parties), (h) Tenant shall be entitled to seventy-three (73) additional unreserved spaces at no additional charge to Tenant, which additional unreserved spaces shall be located within the Garages and/or on the rooftop of the Garages and/or on the Surface Lot, (j) in connection with the Suite B-230 Tenant Improvements, Landlord shall credit Tenant with an allowance equal to $130.00 per rentable square foot of Suite B-230 multiplied by a fraction, the numerator of which is the number of months in the Suite B-230 Lease Term and the denominator of which is one hundred and thirty-two (132), (k) Base Monthly Rent for the Existing Premises (as same is escalated as provided in the Existing Lease) shall, upon the first day following the expiration of the Parking Charge Abatement Period, increase from the amount set forth in the Existing Lease by $0.75 per rentable square foot of the Existing Premises, and (l) Tenant shall not be obligated to pay Parking Charges for any of the Reserved Spaces.

4.ROFO. The parties hereby acknowledge and agree that Landlord delivered a Lease Offer to Tenant that Tenant elected not to accept and that, accordingly, the right of first offer granted to Tenant in Section 2.4 of the Existing Lease is no longer of any force or effect.

5.Parking. Article 12 of the Existing Lease is amended to state that eighteen (18) of Tenant’s covered, reserved spaces are located in the East Garage and ninety-two (92) of Tenant’s covered, reserved spaces are located in the West Garage, as correctly shown on Exhibit “F” attached to the Existing Lease.

6.Brokers. Tenant represents and warrants that it has not dealt with any broker or agent in connection with this First Amendment other than LevRose Commercial Real Estate, an Arizona limited liability company (“Tenant’s Broker”). The Commission Agreement dated April 4, 2025, by and between Tenant’s Broker and Landlord (the “Commission Agreement”), shall remain in full force and effect without modification. In the event of any sale, transfer, assignment, or conveyance of the Building or the Landlord’s interest in the Lease, Landlord shall (i) provide notice to Tenant’s Broker of such transfer, (ii) disclose the Commission Agreement to the transferee, and (iii) use commercially reasonable efforts to assign the Commission Agreement to the transferee.

7.Authority To Execute Agreement. Each party hereto represents and warrants to the other that the individual executing this First Amendment on behalf of such party is duly authorized to execute and deliver this First Amendment on behalf of such party.

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8.Entire Agreement. This First Amendment, together with the Existing Lease, represents the entire agreement among the parties with respect to the Premises and supersedes any prior negotiations, representations, or agreements, whether written or oral, with respect to the subject matter contained herein. Nothing in this First Amendment shall be deemed to waive or modify any of the provisions of the Lease, except as expressly stated herein. If there are any inconsistencies between this First Amendment and the Lease, the provisions of this First Amendment shall prevail. This First Amendment may be amended, modified, or altered only by a written instrument signed by Landlord and Tenant.

9.Legal Advice, Neutral Interpretation, Headings. Each party has received independent legal advice from their attorneys with respect to the advisability of executing this First Amendment and the meaning of the provisions hereof. The provisions of this First Amendment shall be construed as to their fair meaning, and not for or against any party based upon any attribution to such party as the source of the language in question. Headings used in this First Amendment are for convenience of reference only and shall not be used in construing this First Amendment.

10.Choice of Law. This First Amendment shall be governed by and construed in accordance with the laws of the State of Arizona. The parties hereto irrevocably submit to the jurisdiction of Superior Court of the State of Arizona located in Maricopa County and waive any rights to object to or challenge the appropriateness thereby.

11.Severability. If any term, covenant or provision of this First Amendment, or the application thereof to any person or circumstance, shall to any extent be held by a court of competent jurisdiction to be invalid, void, or unenforceable, the remainder of the terms, covenants, conditions or provisions of this First Amendment, or the application thereof to any person or circumstance, shall remain in full force and effect and shall in no way be affected, impaired or invalidated thereby.

12.Submission of Agreement. The submission of this First Amendment to Tenant, Tenant’s agent or attorney for review or signature does not constitute an offer to Tenant. This First Amendment shall have no binding force or effect until its execution and delivery by both Landlord and Tenant.

13.Confidentiality. In consideration of the covenants and agreements hereunder, each party hereto hereby covenants and agrees not to disclose any terms, covenants or conditions of the Lease to any other party without the prior written consent of the other party. The terms of this section shall survive expiration of the Term or earlier termination of the Lease.

14.Counterparts. This First Amendment may be executed in any number of counterparts, each of which shall be deemed an original, and all of such counterparts shall constitute one agreement. To facilitate execution of this First Amendment, the parties may execute and exchange counterparts of the signature pages by email or facsimile and email or facsimile counterparts shall serve as originals.

5

15.Ratification of Lease. Except as expressly set forth herein, the Lease is hereby ratified and confirmed in its entirety and remains unchanged and in full force and effect.

[SIGNATURE PAGE FOLLOWS]

6

SIGNATURE PAGE TO FIRST AMENDMENT TO OFFICE LEASE AGREEMENT

BY AND BETWEEN

PERIMETER GATEWAY PORTFOLIO LLC, AS LANDLORD

AND

CASTLE BIOSCIENCES, INC., AS TENANT

IN WITNESS WHEREOF, Landlord and Tenant, acting herein by duly authorized individuals, have caused this First Amendment to be executed as of the Effective Date set forth herein.

LANDLORD:

PERIMETER GATEWAY PORTFOLIO LLC,

a Delaware limited liability company

By: /s/James R. Wentworth    

Name: James R. Wentworth    

Title: Authorized Signatory    

[SIGNATURE PAGE CONTINUES ON NEXT PAGE]

7

TENANT

CASTLE BIOSCIENCES, INC.,

a Delaware corporation

By: /s/Kristen Oelschlager            

Name: Kristen Oelschlager            

Title: Chief Operating Officer        

By:

Name:

Title:

By:

Name:

Title:

8

EX-10.02

Exhibit 10.2

LEASE AGREEMENT

Between

FAROS ACA RE LLC

and

CASTLE BIOSCIENCES, INC.

Unit 1, Nova Place Concourse, Pittsburgh, Pennsylvania

Contents

Article I - Premises and Term	1
Section 1.1 - Description of Premises	1
Section 1.2 - Interests Granted with the Premises.	2
Section 1.3 - Term	2
Section 1.4 - Reserved Rights	3
Section 1.5 - Extension Option	3
Article II - Rent	4
Section 2.1 - Definition of Lease Year.	5
Section 2.2 - Tenant’s Proportionate Share	5
Section 2.3 - Basic Rent	5
Section 2.4 - Taxes.	5
Section 2.5 - Personal Property Taxes	8
Section 2.6 - Operating Cost Payment	8
Section 2.7 - Electricity	11
Section 2.8 - Additional Rent	11
Section 2.9 - Late Charges	12
Section 2.10 - Place of Payment	12
Section 2.11 - Utilities in General	12
Section 2.12 - General Allocation Procedures	12
Section 2.13 - Domestic Water and Sewer Service	13
Section 2.14 - Janitorial Service	13
Section 2.15 - Trash	13
Article III - Use of Premises	13
Section 3.1 - Use of Premises.	13
Section 3.2 - Unlawful Purpose	13
Section 3.3 - Compliance with Laws	13
Section 3.4 - Hazardous Materials	14
Section 3.5 - Floor Loading	15
Section 3.6 - Entry by Landlord	15
Section 3.7 - Rules and Regulations of Landlord	16
Section 3.8 - Signs	16
Article IV- Quiet Enjoyment	16
Article V - Delivery of Premises, Tenant’s Work, Alterations and Maintenance	17
Section 5.1 - Improvements by Landlord.	17
Section 5.2 - Condition	18
Section 5.3 - Alterations by Tenant	18
Section 5.4 - Maintenance by Tenant	19
Section 5.5 - Landlord’s Services	19
Section 5.6 - Maintenance by Landlord	19
Section 5.7 - Liens	20
Section 5.8 - Landlord’s Liability	20
Section 5.9 - Interruption of Service	20
Section 5.10 - Security	20
Article VI - Insurance and Indemnification	21
Section 6.1 - Property Insurance	21
Section 6.2 - Tenant’s Insurance	21
Section 6.3 - Increase in Insurance Premiums	23
Section 6.4 - Qualifications of Insurers	23
Section 6.5 - Evidence of Insurance	23
Section 6.6 - Indemnification	23
Section 6.7 - Tenant Waiver; Mutual Waiver of Subrogation	24
Section 6.8 - Landlord Indemnification	24
Article VII - Damage and Condemnation	25
Section 7.1 - Damage and Destruction.	25
Section 7.2 - Taking of All	26
Section 7.3 - Taking of Less Than All	26
Section 7.4 - Removal of Property	26
Article VIII - Assignment and Subleasing	27
Section 8.1 - Assignment and Subleasing	27
Section 8.2 - Consent to Assignment or Subletting	27
Section 8.3 - Division of Premises	30

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Castle Biosciences - Unit 1 - Nova Place

Section 8.4 - Documentation	30
Section 8.5 - Definition of Assignment	30
Section 8.6 - No Release	30
Section 8.7 - Permitted Transfers	30
Article IX - Default	31
Section 9.1 - Default	31
Section 9.2 - Landlord’s Remedies	32
Section 9.3 - Non-Waiver	34
Section 9.4 - Waiver by Tenant	34
Section 9.5 - Self-Help	34
Section 9.6 - Landlord’s Default	35
Section 9.7 - Provisions Not Exclusive	35
Section 9.8 - Attorneys’ Fees	35
Article X - Subordination and Relationship of the Parties	35
Section 10.1 - Subordination	35
Section 10.2 - Estoppel Certificate	35
Section 10.3 - No Joint Venture	36
Article XI - Security Deposit	36
Article XII - Termination and Surrender	36
Section 12.1 - Condition of Premises	36
Section 12.2 - Holding-Over	36
Section 12.3 - Landlord and Tenant Act of 1951	36
Article XIII - Miscellaneous Provisions	37
Section 13.1 - Broker	37
Section 13.2 - Amendments	37
Section 13.3 - Successors	37
Section 13.4 - Construction	37
Section 13.5 - Captions	37
Section 13.6 - Notices	37
Section 13.7 - Counterparts and Electronic Signatures	38
Section 13.8 - Partial Invalidity	38
Section 13.9 - Limitation of Liability	38
Section 13.10 - Joint and Several Liability	39
Section 13.11 - Financial Statements	39
Section 13.12 - Relocation	39
Section 13.13 - Governing Law	39
Section 13.14 - Waiver of Jury Trial	39
Section 13.15 - Notice of Lease	39
Section 13.16 - Number and Gender	39
Section 13.17 - Force Majeure	39
Section 13.18 - Entire Agreement	39
Section 13.19 - Time of the Essence	39
Section 13.20 - Guaranty of Lease	40
Section 13.21 - Sale of Unit by Landlord	40
Section 13.22 - When Lease Becomes Binding	40
Section 13.23 - Authority for Execution	40
Section 13.24 - Tenant’s Understanding	40
Section 13.25 - Confidentiality	40
Section 13.26 - Parking Validation	40
Section 13.27 - Condominium	41
Section 13.28 - Early Termination Option.	41
Section 13.29 - Right of First Refusal	41
EXHIBIT A - DIAGRAM OF PREMISES	44
EXHIBIT B - RULES AND REGULATIONS	45
EXHIBIT C - LANDLORD’S WORK	47
SCHEDULE C-1 - PLAN FOR LANDLORD’S WORK	48
SCHEDULE C-2 - LANDLORD’S WORK LETTER	49
EXHIBIT D - CONSTRUCTION INSURANCE REQUIREMENTS	51
EXHIBIT E - LANDLORD SERVICES	54
EXHIBIT F - CONFIRMATION OF LEASE PROVISIONS	55

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Castle Biosciences - Unit 1 - Nova Place

LEASE AGREEMENT

THIS LEASE AGREEMENT (“Lease”) is made as of the date of the last party to sign below (“Effective Date”) between FAROS ACA RE LLC, a Delaware limited liability company (“Landlord”) and CASTLE BIOSCIENCES, INC., a Delaware corporation (“Tenant”). Landlord and Tenant are sometimes individually referenced herein as “Party” and collectively as “Parties”.

Article I - Premises and Term

Section 1.1 - Description of Premises.The premises leased by Landlord to Tenant (“Premises”) are described as follows:

Floor Area of the Premises: Agreed to be 21,207 rentable square feet of space in the Unit, as hereinafter defined.

Diagram of Premises: The Premises are outlined on Exhibit A to this Lease.

Unit: The Premises are located in the condominium unit number 1 which consists of a building known as the Concourse Building, Nova Place, Pittsburgh, Pennsylvania (“Unit”) and is comprised of an agreed upon 472,455 rentable square feet. The Unit is more particularly described in the Plats and Plans of Nova Place Condominium recorded on August 2, 2017 with the Department of Real Estate in Allegheny County, Pennsylvania in Plan Book Volume 293, Page 138.

Land: The Premises and the Unit are located on a parcel of land described in the Deed dated May 28, 2019, effective June 3, 2019 and recorded on June 4, 2019 with the Department of Real Estate in Allegheny County, Pennsylvania in Deed Book Volume 17639, Page 306 (“Land”).

Property: At times hereafter the Unit and all other improvements thereon are collectively referred to as the “Property”.

Nova Place Condominium/Project: The development commonly known as Nova Place Condominium (formerly known as Allegheny Center), created by a Declaration of Condominium, made pursuant to the provisions of the Pennsylvania Uniform Condominium Act 68 Pa. C.S.A. §§3101 et. seq., as amended, dated July 27, 2017, with an effective date of July 31, 2017 and recorded on August 2, 2017 with the Department of Real Estate in Allegheny County, Pennsylvania in Deed Book Volume 16888, Page 128, including the Land, the buildings and all other improvements hereon are collectively referred to as “Nova Place” or the “Project”.

Notwithstanding anything to the contrary set forth in this Lease, Landlord and the Executive Board of the Condominium reserve the right from time to time to re-measure the Premises, the Units and/or Nova Place inaccordance with the current or revised standards promulgated from time to time by the Building Owners and Managers Association (BOMA) or the American National Standards Institute or other generally accepted measurement standards utilized by Landlord or the Executive Board of the Condominium and to thereafter adjust the rentable square footage of the Premises and/or the Unit. Landlord shall, at Tenant’s written request, provide Tenant with any additional information reasonably requested by Tenant to confirm the accuracy of any such re-measurement of the Premises, Unit or Nova Place. Upon Landlord’s request, Tenant shall promptly enter into an amendment to this Lease to document the results of such re-measurement, provided that, in no event shall any such re-measurement increase Tenant’s financial obligations under this Lease.

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Castle Biosciences - Unit 1 - Nova Place

Section 1.2 - Interests Granted with the Premises. Together with the Premises, Tenant shall have the following rights, subject to reasonable rules and regulations from time to time established by Landlord pursuant to Section 3.7:

(a)    The right for Tenant and Tenant’s employees and invitees to pass over and through the common areas of the Land, Unit and other portions of the other condominium units of Nova Place, including walks, driveways and parking garages, vestibules, hallways, elevators and stairways as they may exist from time to time, for the purpose of going to and from the Premises.

(b)    The right to use in common with other tenants and their employees and invitees common shared bathrooms and other common areas and facilities as may be located in the Unit or other portions of Nova Place condominium units from time to time.

(c)    Tenant shall have access to the Premises twenty-four (24) hours per day, seven (7) days per week, subject to reasonable restrictions based on emergency conditions and restricted access at times outside of Normal Business Hours (as defined in Exhibit E attached hereto and incorporated herein), which restrictions shall be imposed to provide security for the Unit, and all other applicable provisions of this Lease. Tenant shall install and maintain a security system to control access to the Premises, provided that Landlord shall be given a code, key or other authorization permitting it to access the Premises, if required pursuant to the terms of this Lease or in the event of an emergency.

(d)    Tenant shall be provided with the right to use sixty-four (64) parking spaces passes non-commercial vehicles for the Nova Place Parking Garage, which is Unit 6 of the Nova Place Condominium, at no additional charge. Tenant shall be given eighty (80) parking passes and Tenant shall be responsible for any parking charges whenever more than sixty-four (64) vehicles use the garage. Such parking charges will be additional rent. In addition to the parking provided by the parking passes described in the immediately preceding sentence, Tenant and Tenant’s employees shall have the right to purchase additional parking passes in the Nova Place Parking Garage directly from the owner of such Unit 6 (currently ACA Garage Unit 6 LLC) on a monthly basis at the published rate in effect from time to time for tenants of Nova Place, subject to availability. Additionally, subject to availability in the Nova Place Parking Garage, Tenant, its employees and visitors may use the Nova Place Parking Garage on an hourly or daily basis at the published rates for the public. The use and occupancy of the Nova Place Parking Garage shall be subject to and governed by all of the terms, conditions, and provisions set forth in this Lease applicable to the Premises demised hereunder and any rules and regulations established by Landlord or any operator regarding the Nova Place Parking Garage. Tenant’s parking shall be in common with others in the Nova Place Parking Garage, as may exist from time to time, except any parking spaces that may be designated for the exclusive use. Tenant shall also have the ability to participate in parking validation programs, as set forth in Section 13.26 below.

Section 1.3 - Term.

(a)    Subject to the completion of Landlord’s Work as described in Section 5.1 below, the term of this Lease (“Term”) shall commence upon Landlord’s delivery of the Premises to Tenant in accordance with Section 5.1 hereafter (“Commencement Date”) and end on the last day of the one hundred twenty-eighth (128th) full calendar month thereafter (“Expiration Date”) unless sooner terminated or extended as provided in this Lease. Subject to Section 1.3(c) below, Landlord anticipates the Commencement Date shall be no later than two hundred seventy (270) days after receipt of a Building Permit to perform Landlord’s Work. Notwithstanding the foregoing, if Tenant’s personnel shall occupy all or any part of the Premises for the conduct of its business prior to the Commencement Date, as determined pursuant to the first sentence of this sub-section, such date of occupancy shall, for all purposes of this Lease, be the Commencement Date. Landlord and Tenant

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shall execute a written instrument certifying the Commencement Date in the form attached hereto and incorporated herein as Exhibit F, within thirty (30) days after the Commencement Date, but the failure by either party to execute and deliver such memorandum shall have no effect on the Commencement Date, as hereinabove determined. Notwithstanding the Parties’ agreement that the Term begins on the Commencement Date, the Parties understand and agree that this Lease is a binding obligation in full force and effect from and after the Effective Date (as defined on the signature page below).

(b)    Tenant shall be given non-exclusive access to the Premises at times reasonably acceptable to Landlord prior to the Commencement Date for installation of its phone and data systems and furniture delivery and set up, subject to all the terms of this Lease except the obligation to pay any rent for the period prior to the Commencement Date. Tenant agrees not to unreasonably interfere with Landlord’s Work, as defined hereafter. All of the terms of this Lease shall apply to such early access except for the payment of Basic Rent and Additional Rent (as hereinafter defined).

(c)    If Landlord is unable to deliver possession of the Premises to Tenant due to: (i) Landlord’s failure to complete Landlord’s Work, if any, by the anticipated commencement date; (ii) Landlord’s failure to obtain any necessary final inspection of the Premises or (iii) a Tenant Delay (as defined below), then Landlord shall not be subject to any liability to Tenant nor shall the validity of this Lease be impaired. The Commencement Date, and the Term, shall be extended until Landlord is able to deliver possession of the Premises to Tenant. For purposes of this Lease, “Tenant Delay” shall mean any delay in the completion of Landlord’s Work resulting from any or all of the following: (1) Tenant’s failure to timely perform any of its obligations pursuant to this Lease or Exhibit C, including any failure to complete, on or before the due date therefor, any action item which is Tenant’s responsibility pursuant to the work schedule or any schedule delivered by Landlord to Tenant pursuant to this Lease or Exhibit C; (2) Tenant’s changes to the Landlord’s Work or approved Plan attached as Schedule C-1 after the Effective Date; (3) Tenant’s request for materials, finishes, or installations which are not readily available or which are incompatible with Landlord’s Building standards; (4) any delay of Tenant in making payment to Landlord for any costs for Tenant’s changes to the approved Plan, as provided in Exhibit C; or (5) any other act or failure to act by Tenant, Tenant’s employees, agents, architects, independent contractors, consultants and/or any other person performing or required to perform services on behalf of Tenant.

Section 1.4 - Reserved Rights. Landlord reserves the right at any time to make alterations or additions to the Unit; to build additional stories thereon; to construct additional buildings or improvements on the Unit; to change from time to time the size, location and nature of the common areas included in the Unit; to install, maintain, use, repair and replace pipes, ducts, conduits, wires and appurtenant fixtures leading through the Premises in locations which will not materially interfere with Tenant’s use thereof. Tenant also understands that the other unit owners have, without limitation, the rights to make alterations or additions to their units and to build additional stories thereon, to construct additional buildings or improvements on their units, to change from time to time the size, location and nature of the common areas included in their units.

Section 1.5 - Extension Option. If this Lease shall then be in full force and effect and if Tenant shall have fully performed all of its terms and conditions, Tenant shall have the option to extend this Lease for one (1) additional term of five (5) years (“Extension Term”), provided that: (i) written notice exercising such option is delivered to the Landlord not more than seven hundred twenty (720) days and not less than five hundred forty(540) days prior to the Expiration Date and (ii) no Event of Default shall exist at the time of giving the notice and the commencement of the Extension Term and (iii) the original Tenant, named herein (or a Permitted Transferee) is occupying the Premises both at the time of giving the notice and at the time of commencement of the Extension Term. All of the provisions of this Lease shall pertain to such Extension Term, except that (a) the Basic Rent provided for in Section 2.3 shall be increased pursuant to the procedure set forth below and (b) there shall be

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no further options to extend the Term. Upon commencement of the Extension Term Landlord shall not be obligated to make or pay for any improvements to the Premises nor pay any inducement payments of any kind or nature. Within thirty (30) days of receipt of Tenant's notice exercising its option for the Extension Term, Landlord shall propose the Basic Rent for each year of the Extension Term at an amount comparable to the base or minimum rent then currently being attained for renewal tenants in similar buildings in the Northshore office submarket of the City of Pittsburgh, Allegheny County and having due regard for the size, location and use of the Premises and amenities provided (the “Fair Market Rent”); provided, further, that the annual Basic Rent for each year of the Extension Term shall in no event be less than one hundred two percent of the rent in effect for the immediately preceding year. Tenant shall have a period of ten (10) days from receipt of Landlord’s notice to either accept Landlord’s proposed Fair Market Rent or to make a counter-proposal. If Tenant counter-proposes and Landlord and Tenant do not reach agreement upon an acceptable Fair Market Rent within ten (10) days thereafter, the Fair Market Rent for each year of the Extension Term shall be resolved through arbitration as provided below. In the event Tenant exercises its option to extend the term as provided herein, the Expiration Date shall then be that date which is the last day of the Extension Term. If Tenant shall fail to give timely notice of the exercise of such option as aforesaid, Tenant shall have no right to extend the Term of this Lease, time being of the essence of the foregoing provisions.

If the parties are unable to reach agreement on Fair Market Rent during the period specified above, then the determination of Fair Market Rent shall be submitted to arbitration as set forth herein. The Fair Market Rent shall be determined by impartial arbitrators, one to be chosen by Landlord, one to be chosen by Tenant, and a third to be selected, if necessary, as below provided. Within ten (10) days after the expiration of the ten (10) day period referenced in the preceding paragraph, the parties shall each notify the other of the name and address of their designated arbitrator. The arbitrator shall be a commercial real estate broker or appraiserwith at least ten (10) years of experience with commercial rental rates in greater Pittsburgh, Pennsylvania area. If one party fails to notify the other of the appointment of its arbitrator, within or by the time above specified, then the arbitrator which has been so appointed shall be the sole arbitrator to determine the issue. The unanimous written decision of the two arbitrators first chosen or the written decision of the third arbitrator chosen and selected as provided below, shall be conclusive and binding upon Landlord and Tenant. If the two (2) arbitrators are not able to reach a unanimous determination of Fair Market Rent within ten (10) business days after appointment, the arbitrators themselves, shall jointly appoint a third arbitrator, who shall be a competent and impartial person with qualifications similar to those required of the first two arbitrators. The role of the third arbitrator shall be to select which of the two proposed resolutions most closely approximates his or her determination of Fair Market Rent. The third arbitrator shall have no right to propose a middle ground or any modification of either of the two proposed resolutions. The third arbitrator shall issue its decision within ten (10) business days after appointment. Each party shall pay the fees of the arbitrator selected by it, and if a third arbitrator is selected as provided above, each party shall pay one-half of the fees of said third arbitrator. The arbitrators shall advise the parties of their determination at least thirty (30) days prior to the commencement of the applicable Extension Term. If the dispute between the parties as to a Fair Market Rent has not been resolved before the commencement of Tenant’s obligation to pay rent based upon such Fair Market Rent, then Tenant shall pay Basic Rent and other charges under the Lease in respect of the Premises in the amounts which were applicable to the twelve (12) month period immediately prior to the applicable Extension Term until either the agreement of the parties as to the Fair Market Rent designated by Landlord, or the decision of the arbitrators, as the case may be, at which time Tenant shall pay any underpayment of Basic Rent and other charges to Landlord. When the Fair Market Rent has been determined, each party shall at the request of the other, execute a certificate confirming the Fair Market Rent as it is determined in accordance with the provisions of this Section.

Article II - Rent

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Castle Biosciences - Unit 1 - Nova Place

Section 2.1 - Definition of Lease Year. Intentionally deleted.

Section 2.2 - Tenant’s Proportionate Share. As used herein, “Tenant’s Proportionate Share” shall mean a fraction, which may be expressed as a percentage, the numerator of which is the Floor Area of the Premises, and the denominator of which is the rentable floor area of the Unit, including the Premises, which is agreed to be 472,455 rentable square feet. Therefore, Tenant’s Proportionate Share will be 4.49%.

Section 2.3 - Basic Rent. Beginning on the Commencement Date, Tenant shall pay to Landlord, without notice, offset, abatement, deduction or demand, an annual Basic Rent as set forth below, which shall be paid in equal monthly installments, in advance, on the first day of each calendar month during the Term, in lawful money of the United States, and sent to the address as set forth in Section 13.6 herein, in the amounts as set forth below:

Basic Rent Period	Basic Rent (per Basic Rent Period)	Monthly Basic Rent	Rate per r.s.f.
Months 1-8	$30,800.00	$3,850.00	$2.18
Month 9 -10/31/27	TBD	$57,468.37	$32.52
11/1/27-10/31/28	$703,268.58	$58,605.72	$33.16
11/1/28-10/31/29	$717,359.40	$59,779.95	$33.83
11/1/29-10/31/30	$731,681.14	$60,973.43	$34.50
11/1/30-10/31/31	$746,446.25	$62,203.85	$35.20
11/1/31-10/31/32	$761,230.96	$63,435.91	$35.90
11/1/32-10/31/33	$776,459.82	$64,704.99	$36.61
11/1/34-10/31/34	$791,989.02	$65,999.09	$37.35
11/1/34-10/31/35	$807,828.80	$67,319.07	$38.09
11/1/35-10/31/36	$823,985.38	$68,665.45	$38.85
11/1/36-Month 128	TBD	$70,038.76	$39.63

In the event that the Commencement Date is other than a first day of a calendar month, for purposes of calculating the Basic Rent payments owed pursuant to this Section 2.3 the “first month” of the Term of the Lease shall be deemed to mean the number of days between the Commencement Date and the last day of such calendar month plus the next full calendar month.

Landlord acknowledges and agrees that Tenant, at Tenant’s option, shall have the right to pay amounts due under this Lease to Landlord via electronic funds transfer. Upon receipt of a written request, Landlord will provide Tenant with the required information to allow Tenant to establish that manner of payment. Tenant shall initiate payment via electronic funds in sufficient time for such payment to be in Landlord’s designated account on the date such payment is due.

Section 2.4 - Taxes. Tenant further covenants and agrees to pay to Landlord, as additional rent, sums computed as follows:

(a)    As used in this Lease:

(1)    The term “Taxes” shall mean: (I) all real estate taxes, assessments, special or otherwise, county taxes, transit taxes, license fee, license tax, business license fee, business license tax, commercial rental tax, levy, charge, penalty, tax or any other governmental charge of a similar or dissimilar nature, whether general, special, ordinary or extraordinary, foreseen or unforeseen, which may be levied or assessed upon or with respect to all or any part of the Property or Project, as well as surrounding grounds, plazas and the

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sidewalks or streets in front of or adjacent thereto and any improvements located, including any tax excise or fee measured by or payable with respect to any rent, and levied against Landlord and/or any part of the Property under the laws of the United States, the Commonwealth of Pennsylvania, County of Allegheny, City of Pittsburgh, any school, agricultural, lighting, drainage or other improvement or special district thereof or any other taxing authority; (II) any assessment, tax, fee, levy or charge in substitution, partially or totally, of any assessment, tax, fee, levy or charge previously included within the definition of Taxes; and (III) costs and expenses, including reasonable attorneys’ and appraisers’ fees (which may include reasonably allocated in-house counsel fees), as may be incurred from time to time by Landlord and/or the Executive Board of the Condominium in seeking favorable assessments and in appealing assessments which Landlord and/or the Executive Board of the Condominium reasonably deems to be excessive, regardless of whether or not such efforts are ultimately successful in achieving an assessment reduction. In the event such expenses are incurred in connection with proceedings which relate to more than one condominium unit, such expenses shall be reasonably apportioned by the Executive Board of the Condominium to such units. The Taxes shall be equal to the product obtained by multiplying the taxes levied on the tax lot of which the Unit is a part by a fraction: the numerator of which shall be the rentable area of the Unit and the denominator of which shall be the rentable area of all buildings located on the tax lot of which the Unit is a part, as calculated by Landlord. If any Taxes are imposed relating to Nova Place as a whole, such amounts shall be allocated among the condominium units comprising Nova Place based on their respective rentable areas.

If, however, by Applicable Law (as defined in Section 3.3 below), any assessment may be divided and paid in annual installments, then, for the purposes of this paragraph:

(aa)    such assessment shall be deemed payable in the maximum number of installments permitted by Applicable Law; and

(bb)    there shall be deemed included in Taxes for each Tax Year the annual installment of such assessment becoming payable during such Tax Year together with interest on such annual installment and on all installments thereafter becoming due as provided by Applicable Law, all as if such assessment had been so divided.

(cc)    Notwithstanding the above, the term “Taxes” shall not include:

(i) income, privilege or franchise taxes levied against Landlord, capital levy, estate, succession or transfer taxes of Landlord, or any unincorporated business tax imposed upon Landlord provided, however, that if the methods or scope of taxation shall be subsequently altered to cause any income, privilege, franchise, capital levy, estate, succession, transfer or unincorporated business tax to be substituted, in whole or in part, for any portion of the Taxes, then such income, privilege, franchise, capital levy, estate, succession, transfer or unincorporated business tax shall be deemed included in the term “Taxes” as used in this Lease; and

(ii) interest and penalties on Taxes if Tenant has made payments to Landlord on behalf of such Taxes within the periods provided by this Section.

(3)    If at any time during the Term the methods of taxation prevailing at the date hereof shall be altered so that in lieu of or as an addition to or as a substitute for the whole or any part of the taxes, assessments, levies, impositions or charges now levied, assessed or imposed, on all or any part of the Property or Project shall be levied, assessed or imposed:

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(i) a tax, assessment, levy, imposition or charge based on the rents received therefrom whether or not wholly or partially as a capital levy or otherwise; (ii) a tax, assessment, levy, imposition or charge measured by or based in whole or in part upon all or any part of the Property or Project and imposed upon Landlord; (iii) a license fee measured by the rent payable by Tenant to Landlord; or (iv) any other tax, levy, imposition, charge or license fee however described or imposed, then all such taxes, assessments, levies, impositions, charges or license fees, or the part thereof so measured or based, shall be deemed to be Taxes.

(4)    The term “Tax Year” shall mean the period of twelve months commencing on January 1 of each year.

(5)    The term “Base Taxes” shall mean Taxes for calendar year 2022. The term “Base Taxes” shall exclude all special assessments.

(6)    The term “Landlord’s Tax Statement” shall mean a written statement provided by Landlord and given to Tenant containing a computation of any additional rent due for Taxes pursuant to the provisions of this Lease.

(b)    As of the Commencement Date, if Taxes payable in any Tax Year, falling wholly or partially within the Term, shall be in such amount as shall constitute an increase from the Base Taxes, Tenant shall pay as additional rent (“Tax Payment”) a sum equal to Tenant’s Proportionate Share of the amount by which Taxes for such Tax Year exceed the Base Taxes. If Taxes payable in any Tax Year shall be less than the Base Taxes there shall be no adjustment in the Basic Rent payable pursuant to this Lease. Payments by Tenant shall be prorated if necessary, to correspond with that portion of a Tax Year occurring within the Term. Tenant shall pay any additional Taxes attributable to alterations, additions or improvements to the Premises made by or for Tenant. If the Term of this Lease expires or is otherwise terminated prior to December 31 of any calendar year, Tenant’s obligation to pay any additional rent under this Section 2.4 for such partial calendar year shall survive the expiration or termination of this Lease even though the determination of such additional rent cannot be made until after such expiration or termination and, pursuant to Article XI below, Landlord shall have the right to retain a reasonable estimate of year-end adjustments from the Security Deposit.

(c)    Landlord’s Tax Statement shall include an estimate for the next Tax Payment. Tenant shall make monthly payments in each Tax Year on behalf of estimated Tax Payment (“Estimated Tax Payment”). The monthly Estimated Tax Payment shall be adjusted annually by Landlord. Upon receipt of Landlord’s Tax Statement the Estimated Tax Payment for the then-current Tax Year shall be adjusted in accordance with the Estimated Tax Payment set forth in the Landlord’s Tax Statement. The Estimated Tax Payment shall be paid without notice or demand each month along with Basic Rent and the Estimated Tax Payment shall be deemed additional rent hereunder. Within thirty (30) days from receipt of Landlord’s Tax Statement, Tenant shall pay Landlord the deficiency, if any, between the Estimated Tax Payment and the Tax Payment but if the Estimated Tax Payment exceeds the Tax Payment for the applicable Tax Year, provided that Tenant is not otherwise in default, Landlord shall refund same or credit the difference against the next accruing rent and other charges due under this Lease, except that the balance of any overpayment in respect to the last Tax Year shall be paid by Landlord to Tenant within sixty (60) days after Landlord’s determination of the actual Taxes for the final Tax Year.

(d)    If, as a result of any application or proceeding brought by or on behalf of Landlord, the Base Taxes shall be decreased, Landlord’s Tax Statement next following such decrease shall reflect such decrease in the Base Taxes. If, as a result of any application or proceeding brought by or on behalf of Landlord for reduction of the assessed valuation of the Property, Unit and/or Land for

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any period subsequent to the period upon which Base Taxes are computed for an applicable Tax Year, Landlord’s Tax Statement next following such decrease shall include an adjustment for such Tax Year reflecting such decrease in Taxes (less all reasonable costs and expenses, including reasonable attorneys’ fees (which may include reasonably allocated in-house counsel fees), incurred by Landlord in connection with such application or proceeding).

(e)    Landlord’s failure to render a Landlord’s Tax Statement with respect to any Tax Year shall not prejudice Landlord’s right to render a Landlord’s Tax Statement with respect to that or any subsequent Tax Year. The obligations of Landlord and Tenant under the provisions of this Article with respect to any additional rent shall survive the expiration or any sooner termination of the Term.

(f)    Each Landlord’s Tax Statement shall be conclusive and binding upon Tenant unless within thirty (30) days after receipt of such Landlord’s Tax Statement Tenant shall notify Landlord that it disputes the correctness of Landlord’s Tax Statement, specifying the respects in which Landlord’s Tax Statement is claimed to be incorrect. Pending the determination of such dispute by agreement or arbitration, if agreement cannot be reached, Tenant shall pay additional rent in accordance with the applicable Landlord’s Tax Statement, and such payment shall be without prejudice to Tenant’s position. If the dispute shall be determined in Tenant’s favor, provided Tenant is not then in default, Landlord shall forthwith pay Tenant the amount of Tenant’s overpayment of additional rent resulting from compliance with Landlord’s Tax Statement or credit such overpayment against the Basic Rent or additional rent next accruing.

Section 2.5 - Personal Property Taxes. In addition to the Basic Rent payable under Section 2.3, Tenant shall pay all personal property taxes assessed and levied against its personal property, including trade fixtures and inventory, on the Premises. In the event that the taxes provided for under this Article are billed to Landlord, these taxes shall be paid in full as additional rent within ten (10) days after demand therefor by Landlord. The tax bill submitted by Landlord to Tenant shall be sufficient evidence of the amount of the taxes assessed or levied against the personal property to which such bill relates.

Section 2.6 - Operating Cost Payment.

(a)    As used in this Lease:

(1)    The term “Operating Cost Year” shall mean each calendar year, or any part thereof, during the Term.

(2)    The term “Base Operating Cost” shall mean the Operating Cost for calendar year 2022. The term “Tenant’s Proportionate Share” shall have the meaning set forth in Section 2.2 above.

(3)    The term “Operating Cost” shall mean all those costs and expenses incurred or borne by Landlord or Landlord’s agents (except for Taxes described in Section 2.4 above) including condominium fees and assessments as well as common area and service area utility expenses, in connection with the operation and maintenance of the Unit, Property or Project, including, without limitation, the costs and expenses incurred in providing services to tenants in accordance with consistently applied accounting principles for commercial real estate with respect to the operation and maintenance of first-class office buildings in Allegheny County. Without limiting the generality of the foregoing, “Operating Cost” shall be reasonable with respect to the operation and maintenance of a first-class office building in Allegheny County, subject to Section 2.12 below and shall include the following items: (aa) salaries, wages, medical, surgical and general welfare benefits (including, without limitation, group life insurance, hospitalization and disability benefits), pension payments of any kind,

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any and all other fringe benefits of employees of Landlord or its property manager engaged in the operation and maintenance of the Property for their time spent in work for the Property and any and all other payments made on behalf of or for the account of such employees; (bb) payroll taxes, workers’ compensation insurance, uniforms and cleaning uniforms for employees of Landlord or its property manager engaged in the operation and maintenance of the Property for their time spent in work for the Property (but, for the avoidance of doubt, shall not include wages and other benefits for employees with seniority above the property manager level); (cc) steam and any other fuel; (dd) the cost of all charges for electricity, heat, ventilation, air-conditioning (and water and sewer charges which are not or may not be liens against the Property, or the Land) furnished to the Property or used in the operation of the service facilities of the Property including any fuel adjustment factor, surcharges or meter reading charges (except those separately metered or paid by another tenant of the Unit for its space); (ee) the cost of all charges for rent, casualty and risk insurance, extended coverage, personal injury and property damage liability insurance and any and all other insurance which Landlord maintains, whether on account of the requirement of any mortgagee, Condominium requirement or underlying lessor or otherwise; (ff) the cost of all building and cleaning supplies for the Property and the charges for telephone for the elevators and the lobby of the Property; (gg) the cost of all charges for maintenance of the Property, window cleaning, cleaning, exterminating, rubbish removal, security, alarm and all other service or maintenance contracts, provided that such charges are comparable to and competitive with charges for the same or similar services paid by the owners of other first- class office buildings in Allegheny County; (hh) the cost of rentals of capital equipment designed to result in savings or reductions in Operating Costs; (ii) all costs of lobby re-decorations and interior landscape and plant care and maintenance; (jj) all costs of painting in the public and service areas of the Property; (kk) professional and consulting fees (including, without limitation, legal, accounting and tax fees, which may include reasonably allocated in-house counsel fees) relating solely to the operation of the Property (but excluding the management fee set forth in (tt) below); (ll) real estate and landlord association dues with respect to the Property; (mm) capital equipment, improvements, or replacements to the extent that the same are expenses or regarded as deferred expenses under consistently applied accounting principles for commercial real estate, or required by Applicable Law or result in an average periodic savings in the amount of Operating Costs equal to or greater than the prorated cost of such capital improvement or replacement allocated to such period (in any of such cases, the cost of the capital improvements shall be included in Operating Cost for the Operating Cost Year in which the costs are incurred and subsequent Operating Cost Years, on a straight line basis, to the extent that such items are amortized over their useful life in accordance with the regulations established by the Internal Revenue Service, with an interest factor equal to 1.5% above the prime rate of the Citibank, NA at the time such capital expenses are incurred); (nn) costs incurred in complying with governmental requirements respecting health, safety, fire prevention and similar purposes (e.g. local laws) applicable to the Property, which are effective after the Commencement Date and not reimbursed by individual tenants under their leases; (oo) costs of maintenance and repair of the elevators; (pp) costs of general maintenance and upkeep for the Property (including, without limitation, exterior lighting system maintenance and repair costs); (qq) the cost for maintenance and operation of the parking garage, entry way and sidewalks, including but not limited to landscaping, snow removal, pot hole repair, cleaning and paving; (rr) costs for amenities located within Nova Place which are available to Tenant, including, but not limited to bike storage area and locker rooms; (ss) a proportional share of fees, costs and expenses, as determined pursuant to Section 2.12 below, which are incurred by the owner of Unit 7 of the Project which owns the majority of the “common areas” of the Nova Place Condominium; and (tt) a fee for the management of the Property, not to exceed five percent (5%) of the gross revenues of the Property, including, without limitation, all rent and other charges paid by tenants in the Unit, together with the cost of reasonable legal and other professional fees

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relating to the Property, but excluding such fees and commissions paid in connection with services rendered for securing or renewing leases and for matters not related to the normal administration and operation of the Property.

Notwithstanding the foregoing, Operating Cost shall not include, except as provided below, expenditures for any of the following: (i) repairs or other work occasioned by fire, windstorm or other casualty or hazard; (ii) leasing commissions, advertising expenses, and other costs incurred in leasing or in procuring new tenants or preparing space therefor; (iii) tenant change work (other than repairs) performed for other tenants; (iv) repairs or rebuilding necessitated by condemnation; (v) depreciation and amortization of the Property, other than depreciation or amortization of equipment, devices or installations which reduce Operating Cost, but only to the extent such annual depreciation or amortization does not exceed such reduction or is otherwise expressly allowed pursuant to this Lease; (vi) professional fees not allocable to the operation or management of the Property and professional fees allocable to disputes with, or preparation of leases for, other tenants and prospective tenants; (vii) costs incurred because Landlord or another tenant violated the terms of any lease; and (viii) costs incurred to remediate Hazardous Materials (as defined in Section 3.4 below) provided, however, that such exclusion shall apply only to significant releases and Operating Costs may include costs to remedy de minimis amounts of Hazardous Materials in the course of maintaining the common areas (i.e., addressing a release in connection with a spill of cleaning materials).

The calculation of Tenant’s Proportionate Share of Operating Costs shall include an adjustment to actual Operating Costs to reflect expenses that would be incurred assuming occupancy in the Unit equal to the greater of (i) 95% occupancy, or (ii) actual occupancy so that Tenant shall not be unfairly charged for any increased Operating Costs incurred by Landlord in maintaining a Unit at less than 95% occupancy.

(b)    If the Operating Cost payable in any Operating Cost Year falling wholly or partially within the Term shall be in such amount as shall constitute an increase from the Base Operating Cost, Tenant shall pay, as additional rent, within thirty (30) days after receipt of Landlord’s Statement (as defined below) (“Operating Cost Payment”) a sum equal to Tenant’s Proportionate Share of the amount by which the actual Operating Cost for such Operating Cost Year exceeds the Base Operating Cost. If the Operating Cost payable in any Operating Cost Year shall be less than the Base Operating Cost there shall be no adjustment in the Basic Rent payable pursuant to this Lease. Payments by Tenant shall be pro-rated if necessary, to correspond with that portion of an Operating Cost Year occurring within the Term. If the Term of this Lease expires prior to December 31 of any calendar year, Tenant’s obligation to pay any additional rent under this Section 2.6 for such partial calendar year shall survive the expiration or termination of this Lease even though the determination of such additional rent cannot be made until after such expiration or termination and, pursuant to Article XI below, Landlord shall have the right to retain a reasonable estimate of year-end adjustments from the Security Deposit.

(c)    In the event Tenant shall be required to make an Operating Cost Payment pursuant to subsection 2.6(b), Tenant shall thereafter make monthly payments in each Operating Cost Year on behalf of estimated Operating Costs (“Estimated Cost Payment”). The monthly Estimated Cost Payment shall be additional rent hereunder and shall be adjusted annually based on one-twelfth (1/12th) of the Operating Cost Payment for the immediately preceding year. Upon receipt of Landlord’s Statement (as hereinafter defined) the Estimated Cost Payment for the then-current Operating Cost Year shall be adjusted in accordance with the Operating Cost Payment due to Landlord on behalf of the previous Operating Cost Year. The Estimated Cost Payment shall be paid without notice or demand each month, along with Basic Rent. Within thirty (30) days from receipt of Landlord’s Statement, Tenant shall pay Landlord the deficiency, if any, between the Estimated Cost Payments made for the applicable Operating Cost Year and the Operating Cost Payment but if the

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Estimated Cost Payments exceed the Operating Cost Payment, provided Tenant is not otherwise in default, Landlord shall refund same or credit the difference against the next accruing rent and other charges due under this Lease, except that the balance of any overpayment in respect to the last Operating Cost Year shall be paid by Landlord to Tenant within sixty (60) days after Landlord’s determination of the actual Operating Costs for the final Operating Cost Year.

(d)    Landlord’s failure to render a Landlord’s Statement with respect to any Operating Cost Year shall not prejudice Landlord’s right to render a Landlord’s Statement with respect to that or any subsequent Operating Cost Year. The obligations of Landlord and Tenant under the provisions of this Article with respect to any additional rent shall survive the expiration or any sooner termination of the Term.

(e)    The term “Landlord’s Statement” as used in this Section 2.6 shall mean a written statement of the actual Operating Cost with respect to the subject Operating Cost Year consistently prepared in accordance with this Section 2.6 and setting forth in reasonable detail categories of expenses and amounts included therein. Each Landlord’s Statement shall be conclusive and binding upon Tenant unless within thirty (30) days after receipt of such Landlord’s Statement Tenant shall notify Landlord that it disputes the correctness of Landlord’s Statement, specifying the respects in which Landlord’s Statement is claimed to be incorrect. Pending the determination of such dispute by agreement or, if agreement cannot be reached, arbitration, Tenant shall pay additional rent in accordance with the applicable Landlord’s Statement, and such payment shall be without prejudice to Tenant’s position. If the dispute shall be determined in Tenant’s favor, provided Tenant is not then otherwise in default, Landlord shall forthwith pay Tenant the amount of Tenant’s overpayment of Additional Rent resulting from compliance with Landlord’s Statement.

Section 2.7 - Electricity.

(a)     In addition to Basic Rent due and payable under Section 2.3 and other charges owed by Tenant pursuant to separate provisions of this Lease, Tenant shall pay to Landlord, as Additional Rent, all charges applicable to its use of electricity at the Premises, including, but not limited to, all generation and transmission charges, miscellaneous charges imposed by the utility provider, taxes and tariffs, as well as costs to distribute HVAC within the Premises (collectively, “Electric Charge”). The Premises shall be sub-metered by Landlord at Landlord’s sole cost and expense so that Tenant’s use of electricity in the Premises is documented. Landlord shall provide Tenant with an invoice setting forth the Electric Charge based on the reading of the sub-meter and any other charges imposed by the utility provider which are applicable to the Premises without markup by Landlord or administrative fee. Tenant shall pay the applicable monthly Electric Charge to Landlord within thirty (30) days of Landlord’s billing therefore. Notwithstanding anything to the contrary herein, Tenant shall continue to be responsible for its Proportionate Share of electric usage relating to the common areas as part of the Operating Cost calculation. The Electric Charge shall be Additional Rent hereunder.

(b)    Subject to the terms and provisions of Section 5.10 below, Landlord shall not be liable to Tenant for any loss or damage or expense which Tenant may sustain or incur if either the quantity or character of electric service is changed or is no longer available or suitable for Tenant’s requirements. Tenant covenants and agrees that at all times its use of electric current shall never exceed the capacity of existing feeders to the Property or the risers or wiring installation.

(c)    Landlord shall furnish and install, at Tenant’s expense, all replacement lighting tubes, lamps, bulbs and ballasts required in the Premises, provided that the cost therefore shall not exceed comparable charges in other first class office buildings in Allegheny County.

Section 2.8 - Additional Rent. Any and all payments payable by Tenant under this Lease

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other than Basic Rent shall be deemed “Additional Rent” or “additional rent” and Landlord reserves the same rights and remedies against Tenant for default in making any such payments as Landlord shall have for default in the payment of Basic Rent; including, but not limited to, the right to seek and recover such payments as rent under any applicable provisions of the United States Bankruptcy Code. As used herein, the term “Rent” shall mean Basic Rent plus Additional Rent.

Section 2.9 - Late Charges. If any Basic Rent or Additional Rent for any month is not paid when due, Tenant shall pay a late charge of five percent (5%) of the overdue installment due Landlord (it being understood that a late charge shall not be due for the first such occurrence during any given calendar year). This late charge shall be paid on the first day of the next calendar month. The late charge does not constitute a penalty and is acknowledged by Tenant to be fair and reasonable and it will be in addition to, and will not preclude Landlord from, any other remedy at law, in equity and/or under this Lease.

Section 2.10 - Place of Payment. Payment of Basic Rent and Additional Rent shall be made to Landlord at the address set forth in Section 13.6 or to such other person or legal entity or to such other address as Landlord shall designate by notice to Tenant. All such payments shall be paid to Landlord without notice or demand and without abatement, deduction, counterclaim or set-off whatsoever.

Section 2.11 - Utilities in General. It shall be Tenant’s responsibility to contract directly with the appropriate public utility companies for telephone and other public utility services which are not specifically addressed in this Article 2. Tenant shall make such applications and arrangements as shall be necessary to become a customer of the public utility companies supplying such services, and for the separate metering of such utilities and the direct billing of Tenant for such utilities by the companies supplying such utilities. Tenant shall pay directly to the public utility companies all costs and expenses of such utility services supplied to the Premises during the Term of this Lease. Landlord shall identify for Tenant the point at which Tenant may connect to the electrical distribution system at the Unit. It shall be Tenant's responsibility to ensure that such site complies with all laws, statutes, ordinances, codes, rules and regulations pertaining thereto and is approved by all agencies or authorities having jurisdiction thereover. Tenant shall indemnify, defend and hold Landlord and its officers, agents and employees harmless from any claims arising out of any of any utility services provided to Tenant. Tenant shall have no authority on behalf of Landlord to give anyone the right and Tenant shall not allow anyone to place a lien on the Land or any part of the Unit or Land for such services, and should any such lien be placed, Tenant shall have the same removed within ten (10) days after notice thereof. Upon Tenant’s failure to so remove any such lien Landlord may take whatever steps are necessary to have the same removed, and the cost thereof shall be paid upon demand by Tenant to Landlord as Additional Rent. Tenant’s indemnity, as set forth above, shall survive the termination or expiration of this Lease.

Section 2.12 - General Allocation Procedures. Landlord and Tenant acknowledge that to the extent practicable and known exactly, all Taxes and Operating Costs will be accounted for and attributed separately for the Unit and for the other condominium units that comprise Nova Place (the “Other Condominium Units”). To the extent allocations of an item of Taxes or Operating Costs in accordance with the foregoing sentence is not practicable and known exactly, allocations will be made between and among the Unit and the Other Condominium Units proportionately among all thereof (based upon the respective rentable square footage of each), or equally among all thereof, or in such other proportions as may reasonably be determined by Landlord in the exercise of prudent management practices. For avoidance of doubt, Unit 7 of the Condominium (which is currently owned by ACA Unit 7 LLC) was designed to hold the majority of the common areas of the Nova Place Condominium. Therefore, Taxes and Operating Costs which are allocated to Unit 7 or which are incurred by Unit 7 shall be equitably allocated to the remaining Condominium Units and Tenant shall be responsible for its proportionate share of such costs and expenses which are allocated to

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the Unit.

Section 2.13 - Domestic Water and Sewer Service. In the event that Tenant’s usage of water exceeds normal office use then Landlord shall install, at Tenant’s sole cost and expense, a submeter to measure consumption of domestic water and sewer usage in the Premises. Tenant shall reimburse Landlord, as Additional Rent, for Landlord’s actual and direct cost of domestic water and sewer services to the Premises. Landlord’s cost for domestic water and sewer services to the Premises shall be determined by multiplying the total amount of each municipal or other public utility bill received by Landlord for domestic water and sewer service supplied to the Unit, or portion thereof containing the Premises, during the Term of this Lease by a fraction, of which (a) the numerator shall be the amount of domestic water supplied to the Premises during the period covered by such domestic water or sewer bill, as determined by Landlord's reading of the said sub-meter, and (b) the denominator shall be the total amount of domestic water supplied to the Unit (or such portion thereof) during the same period, as determined by the municipal or other utility supplying such domestic water service. Landlord shall invoice Tenant periodically for amounts due under this Section 2.13, but no less frequently than annually and no more frequently than monthly. Such invoices shall be accompanied by copies of the domestic water bills and sewer bills and, if sub-metered, the water meter and sub-meter readings on which they are based. Each such invoice shall be paid by Tenant to Landlord within thirty (30) days after Tenant’s receipt thereof.

Section 2.14 - Janitorial Service. All janitorial services required or desired by Tenant to be performed within the Premises shall be at the sole cost and expense of Tenant. Tenant may, at its option, arrange for such services independently of Landlord, or upon request from Tenant, Landlord will assist Tenant in arranging for such janitorial services as are desired by Tenant to be provided by the janitorial service company regularly employed by Landlord. In either case, Tenant shall pay the costs thereof directly to the janitorial service company supplying such services to Tenant.

Section 2.15 - Trash. Tenant agrees to place only general office trash generated in the Premises (and only such trash) in containers approved by Landlord and keep the area surrounding the Premises free from boxes, cartons and rubbish. Tenant further agrees to keep the Premises in a clean condition as to not attract vermin. Tenant shall be responsible for the proper disposal, at its own cost and expense, of all trash, including, without limitation, any regulated, medical or hazardous waste generated at the Premises using properly licensed contractors in full compliance with all Applicable Laws.

Article III - Use of Premises

Section 3.1 - Use of Premises. Tenant covenants and agrees that during the Term, the Premises shall be used and occupied solely for life science uses and general office purposes and for no other purpose (the “Permitted Use”). Tenant also covenants not to do or suffer any waste or damage, disfigurement or injury to any portion of the Premises or Property.

Section 3.2 - Unlawful Purpose. Tenant will not use or allow the Premises or any part thereof to be used or occupied for any unlawful purpose or in violation of any Certificate of Occupancy or certificate of compliance covering the use of the Property or Premises or any part thereof or in violation of any permit or license affecting the Property or Premises or any part thereof and will not suffer any act to be done or any condition to exist on the Property or Premises or any part thereof or any article to be brought thereon which may be dangerous (unless safeguarded as required by Applicable Law) or which may, in law, constitute a nuisance, public or private, or which may make void or voidable any insurance then in force with respect thereto.

Section 3.3 - Compliance with Laws. Throughout the Term, Tenant, at its sole cost and

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expense, will promptly comply with all present and future laws, ordinances, statutes, codes, bylaws, administrative guidelines, directives, orders, rules, regulations and requirements of all Federal, State, County, City and municipal governments, departments, commissions, boards and officers, any quasi-governmental authority, including, without limitation, the Americans with Disabilities Act and all orders, rules and regulations of the National Board of Fire Underwriters, the local Board of Fire Underwriters or any other body or bodies exercising similar functions, foreseen or unforeseen, ordinary as well as extraordinary, which may be applicable to Tenant’s use or occupancy of the Premises (collectively, “Applicable Laws”). Landlord represents that, as of the Effective Date that Landlord has not received any notification from governmental authorities that indicates the Premises are not in compliance with Applicable Laws.

Section 3.4 - Hazardous Materials.

(a)    Tenant shall not (either with or without negligence) cause or permit the introduction, escape, disposal, release or threat of release of any biologically or chemically active or other Hazardous Materials (as said term is hereafter defined) on, in, upon or under the Land, the Unit, the Project or the Premises. Tenant shall not allow the introduction, generation, storage, use or disposal of such Hazardous Materials in any manner prohibited by Applicable Law, nor allow to be brought into the Land, Unit or Premises any such Hazardous Materials except for use in the ordinary course of Tenant’s business, and then only after written notice is given to Landlord of the identity of such Hazardous Materials as further set forth herein. As of the date hereof, Tenant has provided Landlord written notice of the chemicals used in Tenant’s ordinary course of business, which includes Hazardous Materials (“Tenant Chemicals Notice”). During the Term of this Lease, in the event Tenant’s use of Hazardous Materials shall change, Tenant shall provide to Landlord an updated Tenant Chemicals Notice, which such updated Tenant Chemicals Notice shall provide any change in Tenant’s Hazardous Materials usage within a previous six (6) month period. “Hazardous Materials” shall include, without limitation, any material or substance which is (i) petroleum, (ii) asbestos, (iii) designated as a “hazardous substance” pursuant to Section 311 of the Federal Water Pollution Control Act, 33 U.S.C. §1251 et seq. (33 U.S.C. § 1321) or listed pursuant to §307 of the Federal Water Pollution Control Act (33 U.S.C. § 1317), (iv) defined as a “hazardous waste” pursuant to Section 1004 of the Resource Conservation and Recovery Act, 42 U.S.C. § 6901 et seq. (42 U.S.C. § 6903), (v) defined as a “hazardous substance” pursuant to Section 101 of the Comprehensive Environmental Response, Compensation, and Liability Act, 42 U.S.C. § 9601 et seq. (42 U.S.C. § 9601), as amended, or (vi) defined as “oil” or a “hazardous waste”, a “hazardous substance”, a “hazardous material” or a “toxic material” under any other Applicable Law, including, without limitation, the Pennsylvania Consolidated Statutes, as amended. If any lender or governmental agency shall ever require testing to ascertain whether or not there has been any release of Hazardous Materials, then the reasonable costs thereof shall be reimbursed by Tenant to Landlord upon demand as additional charges but only if such requirement applies to the Premises or may be the result of the acts or omissions of Tenant. In addition, Tenant shall execute affidavits, representations and the like, from time to time, at Landlord’s request concerning Tenant’s best knowledge and belief regarding the presence of Hazardous Materials on the Premises. Tenant agrees to defend, indemnify and hold harmless Landlord, its members, managers, agents and employees from and against any and all administrative and judicial actions and rulings, claims, causes of action, demands and liability (collectively, “Claims”) including, but not limited to, damages, costs, expenses, assessments, penalties, fines, losses, judgments and reasonable attorneys’ fees (which may include reasonably allocated in-house counsel fees) that Landlord, its members, managers, agents and employees may suffer or incur due to the introduction, release or threat of release of Hazardous Materials, the existence of any Hazardous Materials on the Land, Unit or Premises or the migration of any Hazardous Materials to other properties or the release of any Hazardous Materials into the environment (collectively, “Actions”), that relate to or arise from Tenant’s activities or the activities of Tenant’s employees, agents, officers, subtenants, invitees or contractors on the Land, Unit or Premises. The indemnifications in this section specifically include,

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without limitation, costs incurred in connection with any investigation of site conditions or any cleanup, remedial, removal or restoration work required by any governmental authority. The covenants and indemnity set forth in this Section 3.4 shall survive the expiration or earlier termination of the Term. Landlord expressly reserves the right to enter the Premises to perform regular inspections and testing with respect to the presence, existence, release or threat of release of Hazardous Materials. Tenant agrees to comply, at its sole cost and expense, with all Applicable Laws regarding the generation, use, treatment, storage, disposal and transportation of Hazardous Materials. Tenant shall immediately notify Landlord of any introduction, release or threatened release of Hazardous Materials by Tenant at the Land, Unit or Premises and it shall be Tenant’s sole and absolute responsibility to investigate, remediate, monitor and remove such introduction or release of Hazardous Materials in strict accordance with all Applicable Laws and regulations.

(b)    Tenant shall immediately notify Landlord of its actual knowledge of (i) any inspection, enforcement, cleanup or other regulatory action taken or threatened by any regulatory authority with respect to any Hazardous Material on or from the Premises or the migration thereof from or to other property placed, deposited, discharged, disposed, spilled, or leaked in, on, under or about the Premises, or any portion of the Project by Tenant, its employees, agents, contractors, licensees, or invitees (excluding any tenant improvement work done by Landlord), (ii) any demands or claims made or threatened by any party relating to any loss or injury claimed to have resulted from any Hazardous Material on or from the Premises placed, deposited, discharged, disposed, spilled, or leaked in, on, under or about the Premises or any portion of the Project by Tenant, its employees, agents, contractors, licensees, or invitees (excluding any tenant improvement work done by Landlord), (iii) any use, storage, maintenance, generation, processing, treatment, manufacture, handling, release, discharge, spill, leak, disposal or transportation of any Hazardous Material on or from the Premises placed, deposited, discharged, disposed, spilled, or leaked in, on, under or about the Premises or any portion of the Project by Tenant, its employees, agents, contractors, licensees, or invitees (excluding any tenant improvement work done by Landlord) in violation of this Section, and any damage, loss or injury to persons, property or business resulting or claimed to have resulted therefrom, and (iv) any matters where Tenant is required by Law to give a notice to any regulatory authority respecting any Hazardous Materials on or from the Premises placed, deposited, discharged, disposed, spilled, or leaked in, on, under or about the Premises or any portion of the Project by Tenant, its employees, agents, contractors, licensees, or invitees (excluding any tenant improvement work done by Landlord). Landlord shall have the right (but not the obligation) to notify regulatory authorities concerning actual and claimed violations of this Section.

(c)    Landlord shall defend, indemnify and hold harmless Tenant and its members, officers, directors, agents and employees from and against any and all Claims including, but not limited to, damages, costs, expenses, assessments, penalties, fines, losses, judgments and reasonable attorneys’ fees that Tenant, its members, managers, agents, and employees may suffer or incur due to the presence of Hazardous Materials that are not introduced by Tenant, its members, managers, agents or employees.

Section 3.5 - Floor Loading. Tenant shall not knowingly place any load on any floor of the Premises in excess of its floor load capacity. Landlord makes no representation as to the weight bearing capacity of the Premises. Shelving, machinery, fixtures, equipment, materials and the like which may be placed on the Premises by Tenant shall be at Tenant’s own risk.

Section 3.6 - Entry by Landlord. Landlord or its authorized representatives shall have the right to enter the Premises at all reasonable times, upon reasonable advance notice of at least one (1) business day being deemed reasonable (and, provided further, that notwithstanding anything to the contrary herein, such notice may be given by electronic mail only), for the following purposes: (a) inspecting the same; (b) making any necessary repairs thereto and performing any work therein that may be necessary by reason of Tenant’s failure to make any such repairs or perform any such work

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or to commence the same after written notice from Landlord; (c) showing the Unit to prospective buyers; (d) showing the Premises to prospective tenants during the last twelve (12) months of the Term; or (e) in the event of an emergency or entry to perform repairs necessary to preserve the Premises or Unit, provided that no such advance notice shall be necessary in such event. Nothing herein shall be deemed or construed as a duty upon the part of Landlord to do any such repairs upon Tenant’s default in failing to perform the same. No such entry of the Landlord onto the Premises shall entitle Tenant to an abatement of any sums payable hereunder or constitute a breach of Landlord’s covenant of quiet enjoyment or an actual or constructive eviction in whole or in part.

Section 3.7 - Rules and Regulations of Landlord. The rules and regulations regarding the Unit attached to and made a part of this Lease as Exhibit B (“Rules and Regulations”), as well as any other and further reasonable rules and regulations which shall be made by Landlord shall be observed by Tenant and by Tenant’s officers, employees, servants, agents, subtenants, contractors and invitees. Landlord reserves the right to rescind any presently existing rules applicable to the Unit and to make such other and further reasonable rules and regulations as, in its judgment, may from time to time be desirable for the safety, care and cleanliness of the Unit for the preservation of good order therein, which rules, when so made and notice thereof given to Tenant, shall have the same force and effect as if originally made a part of this Lease. Any rules shall be equally applicable to all tenants in the Unit. Nothing herein shall be construed to give Tenant or any other party any claim, demand or cause of action against Landlord arising out of the violation of such Rules and Regulations by any other tenant or visitor of the Unit, or out of the enforcement, modification or waiver of the Rules and Regulations by Landlord in any particular instance.

Section 3.8 - Signs.

(a)    No sign, advertisement or notice shall be affixed to or placed upon any part of the Premises, Unit or Property by Tenant, except in such location and manner and of such size, design and color as shall be previously approved by Landlord, in writing, which approval shall not be unreasonably withheld, conditioned or delayed. Any sign, advertisement or notice so placed or affixed shall comply with all Applicable Laws. If Tenant erects a sign without Landlord’s prior approval, then Landlord may remove it and repair any damage caused by the installation or removal of the sign at Tenant’s sole cost and expense. Tenant shall pay to Landlord such costs and expenses within five (5) days of a submission of a bill by Landlord.

(b)    Landlord, at Landlord’s expense, shall provide Tenant with standard signage on the Unit directory, in the main lobby directory and elevator lobby signage on Tenant’s floor, provided, however, that any changes or replacements of such signs after the initial installation shall be at Tenant’s expense. Additionally, Tenant shall have the right to install its name and logo on the main entrance to the Premises, at Tenant’s expense, provided that Landlord shall have prior approval rights to any such entrance signage, which approval shall not be unreasonably withheld, conditioned or delayed.

Article IV- Quiet Enjoyment

Tenant shall, upon paying the Basic and Additional Rent reserved hereunder and observing and performing all of the terms, covenants and conditions on Tenant’s part to be observed and performed, peaceably and quietly, have and hold the Premises, without hindrance or molestation by any person or persons lawfully claiming by, through or under Landlord, subject, however, to the terms of this Lease and to any fee mortgage or other matters of record, but it is understood and agreed that this covenant and any and all other covenants of Landlord contained in the Lease shall be binding upon Landlord and Landlord’s successors only with respect to breaches occurring during Landlord’s and Landlord’s successors’ respective ownership of Landlord’s interest hereunder.

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Article V - Delivery of Premises, Tenant’s Work, Alterations and Maintenance

Section 5.1 - Improvements by Landlord.

(a)    Upon the execution of this Lease, Landlord agrees to make or cause to be made the improvements to the Premises described in Exhibit C attached hereto and incorporated into this Lease (“Landlord’s Work”). Landlord’s Work shall be accomplished in a workmanlike manner in compliance with all Applicable Laws. Landlord’s Work shall be deemed “Substantially Complete” upon the issuance of a statement by Landlord’s architect confirming Landlord’s Work has been completed with only minor punch-list items outstanding or that Landlord’s Work would have been completed but for a Tenant Delay (as defined in Section 1.3(c) above). The Commencement Date shall occur upon delivery of the Premises to Tenant with Landlord’s Work Substantially Complete. Landlord agrees to complete any punch-list items as soon as reasonably possible following the Commencement Date.

(b)    Notwithstanding anything to the contrary herein, Landlord shall only be required to spend up to One Million Sixty Thousand Three Hundred Fifty and NO/100 Dollars ($1,060,350.00) on the Landlord’s Work for the Premises (the “Landlord’s Work Cap”) and Tenant shall be responsible for any and all costs for the Landlord’s Work which exceed such amount. Landlord and Tenant shall work together to mutually agree upon the best way to handle the physical construction of the Premises in phases, to maximize economies of scale and to manage supply chain issues.

(c)    Tenant shall fund all costs related to the Landlord’s Work. Landlord shall submit invoices to Tenant related to the Landlord’s Work and Tenant shall pay such invoices directly within ten (10) business days of receipt and shall provide proof of payment to Landlord. If Tenant does not pay any such invoice within such ten (10) business day period, Landlord shall have the right to immediately stop any and all construction activities for Landlord’s Work and such work stoppage shall be a Tenant Delay. Provided that all costs and fees for the Landlord’s Work have been paid in full, Landlord shall reimburse Tenant for the costs to complete the Landlord’s Work, which amount shall not exceed the Landlord’s Work Cap, within ten (10) business days after the Commencement Date. Notwithstanding anything to the contrary herein, if Landlord fails to make such reimbursement of the Landlord’s Work Cap, Tenant shall have the right to apply any unpaid reimbursement to any amount of Basic Rent owed under the Lease, provided that any application of such amounts towards Basic Rent can only cover up to one-half of the amount of Basic Rent owed for such month. A final true-up and accounting shall be performed after completion of construction of the Landlord’s Work, in order to document all costs of the Landlord’s Work. If the cost of Landlord’s Work does not exceed the Landlord’s Work Cap, Tenant may utilize any amount remaining towards the purchase of furniture, installation of telecommunication and data wiring, security system, signage or moving costs.

(d)    Landlord shall perform the Landlord’s Work on a so-called “open book” basis and will consult with Tenant on the budget for the Landlord’s Work. Landlord shall charge a three percent (3%) project management fee, which fee shall be applied to the Landlord’s Work Cap and paid by Tenant directly after the cost of the Landlord’s Work exceeds the Landlord’s Work Cap.

(e)    Landlord’s contractor, Faros Construction LLC, shall be the general contractor for the Landlord’s Work. Landlord shall competitively bid the Landlord’s Work with at least three (3) acceptable qualified subcontractors for each trade. Following receipt of the bids, Landlord shall provide Tenant with an itemized statement of estimated construction costs, including fees for permits, and architectural and engineering fees. Tenant shall have five (5) business days to approve or object to the budget. If Tenant objects to the proposed budget, Tenant shall provide reasonably specific reasons for its objection and shall submit a revised budget for Landlord’s review. In the event that Tenant fails to respond to a proposed budget within such five (5) business day period, the budget

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shall be deemed approved. In the event that Tenant objects to a proposed budget, then Landlord may stop all work related to the Landlord’s Work until the budget is approved by both Landlord and Tenant. Should the budget show that the cost of the Landlord’s Work will exceed the Landlord’s Work Cap, Tenant shall deposit with Landlord the total amount of the excess cost or fund the proportional share of the anticipated excess with every construction payment that is issued by Landlord.

(f)    After the initial budget is approved by both Landlord and Tenant, during the construction process Landlord shall inform Tenant of any change in budgeted items which vary by 5% or more. If the budgeted item increases in cost, Tenant shall have three (3) business days to approve or object to the change. If Tenant fails to approve the change within such three (3) business day period, then Landlord may stop all work related to the Landlord’s Work until the revised budget is approved by both Landlord and Tenant and Tenant has deposited the overage, if any, with Landlord.

Section 5.2 - Condition. Tenant acknowledges that the taking of possession of the Premises by Tenant shall be conclusive evidence that the Premises were in satisfactory condition at the time such possession was taken, including Substantial Completion of Landlord’s Work, but excluding any identified punch-list or other specified items. In addition, Tenant shall have a period of thirty (30) days following the Commencement Date to notify Landlord regarding any other unsatisfactory or incomplete items required to be completed by Landlord as part of Landlord’s Work. Except as expressly provided herein, Tenant agrees that it has accepted the Premises in an “AS IS, WHERE IS” condition. The parties hereby agree that Landlord and Landlord’s agents have not made, and Tenant has not relied upon, any representations, warrantees, either expressed or implied, or promises with respect to the physical condition of the Premises or Property, the rents, leases, expense of operation or any other matter or thing affecting or related to the Property or Premises except as herein expressly set forth, and no rights, easements or licenses are acquired by Tenant by implication or otherwise except as expressly set forth in the provisions of this Lease.

Section 5.3 - Alterations by Tenant. Tenant shall make no changes, renovations, improvements, alterations or additions to the Premises or any other portion of the Unit or Property (“Tenant Alterations”), without the prior written permission of Landlord, which shall not be unreasonably withheld, conditioned or delayed. Tenant shall submit plans and specifications for any such Tenant Alterations to Landlord and obtain Landlord’s written consent prior to commencing any such work in connection with such Tenant Alterations. Landlord reserves the right to require all approved work to be done under Landlord’s supervision using Landlord’s approved contractors, all at Tenant’s cost and expense. All Tenant Alterations shall be performed in a good and workmanlike manner by properly licensed contractors approved in writing by Landlord and shall be in compliance with all Applicable Laws. In connection with any Tenant Alterations, Tenant shall secure all insurance requirements set forth in Exhibit D. If the Tenant Alterations are performed by Tenant’s contractors, then Tenant shall supply fully-executed lien waivers from any contractors who perform work or furnish materials to or on the Premises upon completion of the Tenant Alterations or prior to the commencement of the work if permitted by Applicable Laws. Tenant shall be required to remove any Tenant Alterations (other than Cosmetic Alterations) upon the expiration or earlier termination of this Lease if Landlord requires removal when providing its consent to such Tenant Alteration. If applicable, Tenant shall also obtain all required approvals of the Executive Board of the Nova Place Condominium required with respect to the Tenant Alterations and shall fully comply with all requirements of the Condominium relating to such Tenant Alterations. Notwithstanding anything to the contrary set forth in this Lease, Tenant shall be permitted to make Tenant Alterations, upon notice to Landlord (which shall include reasonable details) but without obtaining Landlord’s prior written consent, to make so-called decorative and/or cosmetic alternations to the Premises (including, but not limited to, hanging pictures and whiteboards, minor painting, and installing minor floor coverings

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and related products) which do not involve or which might affect any structural or exterior element of the Building, any area or element outside of the Premises, or any Building/Property system or facility serving any area of the Building/Property outside of the Premises, or which will require unusual expense to re-adapt the Premises to normal office use on the termination or expiration of the Lease (collectively, “Cosmetic Alterations”), which Cosmetic Alterations shall not exceed Ten Thousand and 00/100 Dollars ($10,000.00) per alteration or Twenty Thousand and 00/100 Dollars ($20,000.00) in the aggregate in any calendar year.

Section 5.4 - Maintenance by Tenant. Tenant shall, throughout the Term, take good care of and maintain the Premises and the fixtures and appurtenances therein in good condition and, at its sole cost and expense, make all necessary repairs to the interior of the Premises, except those required of Landlord under the terms of this Lease, as and when needed to preserve them in good working order and condition, reasonable wear and tear and damage from the elements, fire or other casualty not the fault of Tenant excepted. When used in this Article, the term “repairs” shall include all necessary replacement and renewals. Notwithstanding the foregoing, all damage or injury to the Premises or to any other part of the Property or to the fixtures, equipment and appurtenances, thereto, whether requiring structural or nonstructural repairs, caused by or resulting from negligence, carelessness, omission, neglect or improper conduct of Tenant, its servants, employees, invitees or licensees, shall be repaired promptly by Tenant at its sole cost and expense, to the reasonable satisfaction of Landlord. Tenant shall also repair all damage to the Premises or Property caused by the moving of Tenant’s fixtures, furniture or equipment. All such repairs shall be done in a good and workmanlike manner. There shall be no allowance to Tenant for a diminution of rental value and no liability on the part of Landlord by reason of inconvenience, annoyance or injury to business arising from Tenant or others, excluding Landlord, making or failing to make any repairs, alterations, additions or improvements in or to any portion of the Property or in and to the fixtures, appurtenances or equipment thereof. Tenant shall also, at Tenant’s expense, repair and refurbish the Premises and any part and portion thereof from time to time to assure that the same are kept in a first class, tenantable and attractive condition throughout the Term.

Section 5.5 - Landlord’s Services. Landlord shall furnish the Premises with the services described on Exhibit E attached hereto and incorporated herein (“Landlord Services”) on the days and times provided therein. Landlord shall not be liable for failure to furnish any of the Landlord Services when such failure is caused by Force Majeure (as defined in Section 13.17 below) or Applicable Laws; nor shall Landlord be liable for loss of or injury to property however occurring through or in connection with or incidental to the furnishing of any of the foregoing, nor shall such failure relieve Tenant from its duty to pay the full amount of rent herein reserved, or constitute or be construed as a constructive or other eviction of Tenant.

Section 5.6 - Maintenance by Landlord. Except for repairs required due to the negligence, carelessness, omission, neglect or improper conduct of Tenant, its officers, employees, agents, servants, contractors, licensees or invitees, which shall be Tenant’s responsibility, Landlord, in its discretion, shall make all reasonably necessary repairs to the Unit, within a reasonable time after written notice from Tenant, to the roof, foundation, exterior walls of the Unit and to any plumbing, heating, air conditioning or electrical systems located in, servicing or passing through the Premises within a reasonable time after written notice from Tenant or otherwise on the ordinary course of business consistent with similar buildings in Allegheny County, Pennsylvania. Tenant agrees to give Landlord prompt notice of any defective condition in any of the structural parts of the Unit or any such systems. Landlord shall never be liable for any delay or failure to make repairs which are Landlord’s responsibility hereunder, if Tenant has actual knowledge of the need for repair and has failed to give Landlord notice of the need to make such repairs within a reasonable time period. Landlord shall also maintain the common areas of the Unit and the Property in good condition and repair and shall remove snow and ice from the walkways in a reasonably prompt manner. In addition, Landlord shall maintain, or cause the utility providers to maintain, all water, sewer, electric, gas and

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other utility lines serving the Unit. Landlord reserves the right to stop services of heating, air conditioning, plumbing, electrical systems and other utility services when necessary by reason of accident or emergency or for repairs, alterations, replacements or improvements or if, in the reasonable judgment of Landlord, such repairs are necessary or desirable until said repairs, alterations, replacements or improvements shall have been completed. Notwithstanding the foregoing, Landlord agrees to use commercially reasonable efforts to minimize interference with Tenant’s business in making any such repairs. Landlord agrees to give Tenant reasonable written notice (which, notwithstanding anything to the contrary herein, may be given by electronic mail) prior to interrupting utility service and HVAC systems to the Premises, except in the event of an emergency when no such prior notice shall be required. Landlord shall have no responsibility or liability for interruptions in heat, air conditioning, plumbing and electrical and utility services to the Premises during said period or when prevented from doing so or so doing by Force Majeure, by any cause beyond Landlord’s control, by Applicable Laws or failure of coal, oil, gas or other suitable fuel supplies.

Section 5.7 - Liens. Nothing contained in this Lease shall be construed as a consent on the part of the Landlord to subject the estate of the Landlord to liability under the Mechanic’s Lien Law of the Commonwealth of Pennsylvania, for of Tenant’s Alterations or other work performed by or done on behalf of Tenant, it being expressly understood that the Landlord’s estate shall not be subject to such liability. Tenant shall strictly comply with The Mechanic’s Lien Law of 1963 of the Commonwealth of Pennsylvania as set forth in 49 P.S. § 1301 et. Seq., or any successor statute. In the event that a mechanics’ lien claim of lien is filed against the Unit or any portion of the Project, in connection with any of Tenant’s Alterations or other work performed by or done on behalf of Tenant, Tenant shall satisfy or shall deposit a bond or a sum with the Court of Common Pleas of Allegheny County in an amount sufficient to cause the Court to release the lien against the Unit or any portion of the Project pending the resolution of the challenge, within twenty (20) days from receipt of written notice of the filing thereof. In the event that Tenant fails to satisfy, bond or deposit such sums within said twenty (20) day period, Landlord may, but shall not be obligated to, do so and thereafter charge Tenant as Additional Rent, all costs incurred by Landlord in connection with satisfaction of such claim, including reasonable attorney’s fees and interest at a rate of 8% per annum, or the highest rate permitted by Applicable Law, whichever is greater (the “Default Rate”). Further, Tenant agrees to indemnify, defend and save the Landlord harmless from and against any damages or loss incurred by the Landlord as a result of any such mechanics’ claim of lien including but not limited to reasonable attorney’s fees and costs. If so requested by the Landlord, the Tenant shall execute a “No-Lien Agreement,” which may, in the Landlord’s discretion, be recorded in the Department of Real Estate of Allegheny County, Pennsylvania for the purpose of protecting the Landlord's estate from mechanics’ claims of lien, as provided in 49 P.S. § 1402. The Security Deposit paid by the Tenant, if any, may be used by the Landlord for the satisfaction or transfer of any mechanics’ claim of lien as provided in this Section, but such use shall not be deemed to cure such default and upon demand Tenant will promptly reimburse the Security Deposit or any portion of it used. This Section shall survive the termination of this Lease.

Section 5.8 - Landlord’s Liability. Except to the extent caused by Landlord’s negligence or willful misconduct, Landlord shall not be liable for any damage or injury to any person(s), including bodily injury or death, or to any property of Tenant or of any other person from water, rain, snow, ice, sewerage, soot, gas, petroleum or electricity which may leak into or issue or flow from any part of the Premises or of the Property, or from the bursting, breaking, obstruction, leaking or any defect of any of the pipes or plumbing appliances or from electric wiring or other fixtures on the Premises, Unit or Property or from the condition of the Premises, Unit or Property, or from the street or subsurface.

Section 5.9 - Interruption of Service. No interruption or curtailment of any service or maintenance, repair or replacement in the Unit or other portions of the Property shall entitle Tenant to any claim against Landlord or to any abatement of Rent, nor shall the same constitute constructive

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or partial eviction or disturbance of Tenant’s use and possession of the Premises or rights under this Lease, nor shall Landlord be liable to Tenant for consequential or other damages of any kind or nature, in each case regardless of whether or not Landlord shall have received notice of the same and regardless of any negligence of Landlord or any of its agents or contractors. However, Landlord shall exercise diligent efforts to minimize any interruption of services.

Section 5.10 - Security. Landlord may from time to time, but shall not be obligated to, provide one or more attendants to patrol the Project, and the costs of such services shall constitute Operating Costs in accordance with the provisions of Section 2.6 hereof. Tenant expressly acknowledges and agrees that, if provided: (i) such attendants shall not serve as police officers, and will be unarmed, and will not be trained in situations involving potentially physical confrontation; and (ii) such attendants will be solely an amenity to tenants of the Unit and Project for purposes such as assisting visitors and invitees of tenants and others in the Unit and Project, monitoring fire control and alarm equipment, and summoning emergency services to the Unit and Project as and when needed, and not for the purpose of securing any individual tenant premises or guaranteeing the physical safety of the Premises, Unit, Project or the personal property or of Tenant’s employees, agents, contractors or invitees. Landlord expressly disclaims any and all responsibility and/or liability for the physical safety of Tenant’s property, and for that of Tenant’s employees, agents, contractors and invitees, and, without in any way limiting the operation of Article VI hereof, Tenant, for itself and its agents, contractors, invitees and employees, hereby expressly waives any claim, action, cause of action or other right which may accrue or arise as a result of any damage or injury to the person or property of Tenant or any such agent, invitee, contractor or employee, except to the extent due to the gross negligence or willful misconduct of Landlord or its employees, agents or contractors. Tenant agrees that, as between Landlord and Tenant, it is Tenant’s responsibility to advise its employees, agents, contractors and invitees as to necessary and appropriate safety precautions.

Article VI - Insurance and Indemnification

Section 6.1 - Property Insurance. Landlord shall keep the Unit insured against loss or damage by fire and against loss or damage by other risks and such other risks or hazards as are customarily insured against at the time in connection with buildings of similar type in the locality, with due regard to the type of construction, use and occupancy of the Unit. Landlord shall not be required to insure Tenant’s leasehold improvements or the personal property or fixtures belonging to Tenant or its employees and located on the Premises.

Section 6.2 - Tenant’s Insurance. At all times subsequent to the execution of the Lease and during its full term, Tenant, at its sole cost and expense, shall procure and maintain the following insurance policies in the minimum amounts required below:

(a)    Property Insurance. Tenant shall obtain and maintain Property insurance covering all owned furniture, fixtures, and equipment and other personal property; tenant improvements and betterments to the extent they have not become the property of the Landlord; as well as property of others associated with the operation of Tenant’s business and Premises that Tenant is responsible for insuring. The amount of insurance shall be equivalent to the full replacement cost value of the insured property, subject to an Agreed Amount Endorsement without consideration for coinsurance. Coverage shall be provided on an “All Risk” or Special Perils basis covering all risks of physical loss except those specifically excluded in the policy. The covered perils shall include, but not be limited to, fire and extended coverage, theft, vandalism, malicious mischief, collapse, debris removal, and building ordinance and law, flood, earthquake and certified acts of terrorism. Loss of Business Income and Extra Expense coverage are to be afforded on an actual loss sustained basis, without monthly limitation and in an amount equal to at least twelve (12) months projected net income, after deduction for non-continuing expenses following a loss.

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It is understood and agreed that Tenant assumes all risk of damage to its property arising from any cause whatsoever. Tenant also agrees that Landlord and Landlord’s property manager shall not be responsible or liable to Tenant, or those claiming by, through or under Tenant, for any loss or damage including loss of use, that may be occasioned by or through the acts or omissions of persons occupying any part of the Premises adjacent, adjoining or connected to the Premises.

(b)    Commercial General Liability Insurance. Tenant agrees to maintain in full force and effect, Commercial General Liability insurance written on the most current Insurance Services Office (ISO) form, CG 00 01 12 07, or an equivalent policy, that provides coverage on an occurrence basis and affords the following minimum limits of liability:

Combined Single Limit for Bodily Injury and Property Damage	$2,000,000.00 per occurrence
Personal Injury and Advertising Injury	$1,000,000.00 per occurrence
Products/ Completed Operations	$1,000,000.00 aggregate
General Aggregate Limit	$2,000,000.00 aggregate
Medical Expense	$5,000.00 per person
Fire Legal Liability	$100,000.00 per fire

If coverage is provided for more than one premises under Tenant’s policy, the General Aggregate limit shall apply on a “per location” basis.

(c)    Liquor Liability Insurance. Intentionally deleted.

(d)    Automobile Liability Insurance. Tenant shall maintain in full force and effect Automobile Liability insurance, if applicable, covering all owned, non-owned and hired vehicles used in the course of its operations. Such coverage shall be maintained with minimum limits of not less than $1,000,000.00 combined single limit per accident or loss for bodily injury and property damage. The minimum required Auto Liability insurance requirements may be satisfied alone or in combination with the required Umbrella Liability insurance.

(e)    Workers’ Compensation Insurance. Tenant shall maintain in full force and effect Workers’ Compensation insurance providing statutory coverage in all states of operation for Workers’ Compensation claims and Employers Liability coverage subject to the following minimum limits or the minimum underlying Employers Liability limits required by Tenant’s Umbrella Liability insurer:

Bodily Injury by Accident	$1,000,000.00 each accident
Bodily Injury by Disease	$1,000,000.00 each employee
Bodily Injury by Disease	$1,000,000.00 policy limit

The minimum Employers Liability limits may be satisfied alone or in combination with your Umbrella Liability insurance.

(f)    Umbrella Liability Insurance. Tenant shall maintain in full force and effect Umbrella Liability insurance that provides excess follow-form coverage over the underlying Commercial General Liability, Automobile Liability, and Employers Liability coverages previously described. The Umbrella policy shall provide minimum per occurrence and aggregate limits of liability of $5,000,000.00. If the underlying Commercial General Liability aggregate limit applies on a “per location” basis, the Umbrella Liability aggregate limit shall provide follow-form coverage on the same basis.

(g)    Modification of Insurance. Landlord reserves the right to request additional types of insurance that are pertinent and necessary for the proper protection of Tenant’s business operations

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or changes in the above mentioned minimum insurance requirements due to increase in risk, inflation and/or changes in insurance standards or laws.

(h)    Deductibles. None of Tenant’s required insurance policies shall be subject to a per occurrence or per accident deductible or self-insured retention that exceeds Twenty-Five Thousand and NO/100 Dollars ($25,000.00) without the prior written approval of Landlord.

(i)    Additional Interests. All of Tenant’s required insurance policies, with the exception of the Property and Workers’ Compensation Insurance, shall extend coverage to Landlord and its property manager (currently, Faros Property Management LLC) and their members, managers, officers, directors and employees, as Additional Insureds.

The limits of Tenant’s insurance shall not limit Tenant’s liability under the Lease, at law, or in equity.

Neither the insurance requirements set forth in this Lease nor Landlord’s review and approval of any insurer or insurance policy shall be deemed to limit Tenant’s obligations under this Lease or Tenant’s underlying liability in any manner. The insurance requirements herein merely prescribe the minimum amounts and forms of insurance coverage that Tenant and their contractors are required to carry. Any failure by Landlord to enforce in a timely manner any of the provisions of this Lease shall not act as a waiver to enforcement of any of such provisions at a later date.

Section 6.3 - Increase in Insurance Premiums. Tenant shall pay any increase in the insurance rates or premiums on policies of insurance carried by Landlord on the Property caused by Tenant’s acts or omissions or any change in the character of Tenant’s actual use of the Premises from the use authorized in Section 3.1 above. Tenant shall pay these increases as Additional Rent within fifteen (15) days after presentation of a copy of a bill for the same by Landlord.

Section 6.4 - Qualifications of Insurers. All insurance required to be maintained by Tenant under this Article shall be by valid and enforceable policies of insurers of recognized responsibility who are authorized to do business in the Commonwealth of Pennsylvania, and shall maintain an A.M. Best financial rating of A- VIII or higher. Each of Tenant’s required insurance policies, with exception of the Workers’ Compensation Insurance, shall provide Landlord with thirty (30) days advance written notice of policy cancellation or non-renewal. In the event of cancellation due to non-payment of premium, ten (10) days advance written notice may be provided.

Section 6.5 - Evidence of Insurance. Tenant shall furnish the following certificates of insurance to Landlord (a) prior to entry upon the Premises, and (b) within fifteen (15) days of each subsequent policy renewal:

(i)    Property Insurance/Builders Risk Insurance shall be evidenced on an ACORD 27 Evidence of Property Insurance certificate, with an authorized representative’s signature and Landlord named as Certificate Holder.

(ii)    Evidence of required Commercial General Liability, Automobile Liability, Workers’ Compensation, and Umbrella Liability coverages shall be outlined on an ACORD 25-S Certificate of Liability Insurance form, with an authorized representative’s signature and Landlord shall be named as Certificate Holder. Landlord and Landlord’s property manager (currently, Faros Property Management LLC) shall be named as Additional Insureds in accordance with Section 6.2(i) above.

Section 6.6 - Indemnification. To the extent allowed by Applicable Law, in addition to all other indemnities provided by Tenant in this Lease, except to the extent due to the negligence or other misconduct of Landlord, its property manager or either of their members, managers, employees or

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agents, Tenant shall defend, indemnify and save harmless Landlord, its property manager and either of their members, managers, agents and employees against and from all liabilities, suits, actions, damages, liability and expense, penalties, claims and costs which may be imposed upon or incurred by or asserted against Landlord or its property manager or either of their members, managers, agents or employees to the extent arising out of Tenant’s use or occupancy of the Premises or any part thereof or occasioned wholly or in part by any act or omission of Tenant, its officers, agents, contractors, employees, subtenants, servants, invitees, licensees or concessionaires on or about the Premises or Property, including, but not limited to, any of the following:

(a)    Any work done in, on or about the Premises or any part thereof by or on the request of Tenant, its officers, agents, contractors, sub-contractors, servants, employees, subtenants, licensees, invitees or concessionaires;

(b)    Any negligence or otherwise wrongful act or omission on the part of Tenant or any of its officers, agents, contractors, sub-contractors, servants, employees, subtenants, licensees, invitees or concessionaires;

(c)    Any accident, injury or damage to any person or property occurring in, on or about the Premises; or

(d)    Any failure on the part of Tenant to perform or comply with any of the covenants, agreements, terms, provisions, conditions or limitations contained in this Lease on its part to be performed or complied with.

In case any action or proceeding is brought against Landlord by reason of any such claim, Tenant, upon written notice from Landlord, shall, at Tenant’s expense, resist or defend such action or proceeding by counsel approved by Landlord in writing, which approval Landlord shall not unreasonably withhold. Tenant’s indemnity, as stated above, shall survive the expiration or other termination of this Lease.

Section 6.7 - Tenant Waiver; Mutual Waiver of Subrogation. Tenant agrees to release Landlord and Landlord’s property manager and waive all claims for recovery for any direct or indirect damage to property located within or upon or constituting a part of the Premises or liability claims resulting in connection with Tenant’s operations that are caused during the term of this Lease, or any extension or renewal thereof, by the fault or negligence of Tenant or Tenant’s agents, servants, contractors, subcontractors or employees, to the extent that such damage or liability is covered under Tenant’s insurance in force at the time of loss. Without limitation of the foregoing, each party’s required Property, Commercial Liability, Automobile Liability and Umbrella Liability insurance policies shall contain Waiver of Subrogation provisions that permit such release and deny to the insurer rights of subrogation against the other party (and with respect to Landlord, its property manager) to the extent these rights have been waived by the applicable party prior to the occurrence of loss. During the course of any construction by Tenant or of the performance of any Tenant Alterations, Tenant and Tenant’s contractor shall provide a Workers Compensation Waiver of Subrogation in favor of Landlord and Landlord’s property manager.

Section 6.8 - Landlord Indemnification. Except to the extent due to the negligence or willful misconduct of Tenant, its members, managers, agents and employees, Landlord shall defend, indemnify and save harmless Tenant and its members, managers, agents and employees against and from all liabilities, suits, actions, damages, liability and expense, penalties, claims and costs (including reasonable attorneys’ fees) which may be imposed upon or incurred by or asserted against Tenant or its members, managers, agents or employees to the extent arising from Landlord’s negligence or willful misconduct. In the event that any action or proceeding is brought against Tenant by a third party by reason of any such claim, Landlord, upon written notice from Tenant, shall, at

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Landlord’s expense, resist and defend such action or proceeding. Landlord’s indemnity, as set forth in this Section 6.8, shall survive the expiration or other termination of this Lease.

Article VII - Damage and Condemnation

Section 7.1 - Damage and Destruction.

(a)    In the event that the Premises, or any part thereof, or access thereto, shall be damaged or destroyed by fire or other insured casualty, but Tenant shall continue to have safe and reasonably convenient access to the Premises and the Premises shall not thereby be rendered unfit for use and occupancy by Tenant for the use set forth in Section 3.1 above, Landlord shall repair such damage or destruction (except damage or destruction to Tenant’s property or Tenant’s Alterations) with reasonable diligence. During the period when such repair work is being conducted, the rent shall not be abated or suspended.

(b)    In the event that the Premises or any part thereof, or access thereto, shall be so damaged or destroyed by fire or other insured casualty that Tenant shall not have safe and reasonably convenient access to the Premises or the Premises shall thereby be rendered unfit for use and occupancy by Tenant for the use set forth in Section 3.1 above, and if in the reasonable judgment of Landlord the damage or destruction may be repaired within one hundred twenty (120) days from the time the repair work would commence, then Landlord shall so notify Tenant within sixty (60) days after the occurrence of the damage or destruction and Landlord shall repair such damage or destruction (except damage or destruction to Tenant’s property, Tenant’s Work or Tenant’s alterations or improvements) with reasonable diligence. If in the reasonable judgment of Landlord the Premises or means of access thereto cannot be repaired within one hundred twenty (120) days from the time the repair work would commence and Landlord does not give Tenant the notice referred to in this subsection, then either party shall have the right to terminate this Lease by giving written notice of such termination to the other party within the period of sixty (60) to seventy- five (75) days after the occurrence of such damage or destruction. If neither party gives such notice of intention to terminate this Lease, then Landlord shall repair the damage or destruction with reasonable diligence.

(c)    In the event that Tenant shall not have reasonably convenient access to the Premises or the Premises shall otherwise be rendered unfit for the use set forth in Section 3.1 above by Tenant by reason of such damage or destruction, and if such damage or destruction was not caused bythe negligence or willful act or omission of Tenant or any of its officers, employees, contractors, agents, subtenants or invitees, then the Basic Rent and Additional Rent shall be equitably suspended or abated until Landlord shall have substantially completed the repair of the Premises and the means of access thereto and, if applicable, the appropriate municipal entity shall have issued a certificate of occupancy for the Premises.

(d)    In addition to and apart from the foregoing provisions of this Article, (i) if more than twenty-five percent (25%) of the Premises shall be totally or almost totally damaged or destroyed by fire or other cause and if such damage or destruction was not caused by the negligence or willful act or omission of Tenant or any of its officers, employees, contractors, subtenants, agents or invitees at any time during the last twelve (12) months of the Term or any renewal thereof, either Landlord or Tenant may terminate this Lease by giving notice of such termination to the other party within thirty (30) days after the occurrence of such damage or destruction, and (ii) if the Unit is damaged or destroyed by fire or other cause to such extent that the cost to repair the damage or destruction, as reasonably estimated by Landlord, will be more than twenty-five percent (25%) of the replacement value of the Unit immediately prior to the occurrence of such damage or destruction, then, whether or not the Premises are damaged, Landlord may terminate this Lease by giving notice of such

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termination to Tenant within thirty (30) days after the occurrence of such damage or destruction.

(e)    No damages, compensation or claim shall be payable by Landlord to Tenant, or any other person, by reason of inconvenience, loss to personal property, loss of business or annoyance arising from any damage or destruction, or any repair thereof, as is referred to in this Article.

(f)    In addition to and apart from the foregoing provisions of this Article, in the event any mortgagee under a mortgage deed or security agreement on the Unit or Land should require that the insurance proceeds be used to retire the mortgage debt, Landlord shall have no obligation to rebuild and this Lease shall terminate upon notice to Tenant. Except as hereinafter provided, any insurance which may be carried by Landlord or Tenant against loss or damage to the Property, Unit or Premises shall be for the sole benefit of the party carrying such insurance and under its sole control.

Section 7.2 - Taking of All. If at any time during the Term all or materially all of either the Premises, Unit or Property, or so much of the Premises, Unit or Property that the remaining area can no longer properly be used for the purpose for which the same was being used prior to such taking, as reasonably determined by Landlord, shall be taken by condemnation or eminent domain or for any public or quasi-public use under any statute, including a deed to the condemning authority in lieu of taking, then this Lease shall terminate and expire on the date that Tenant shall be deprived of possession by the taking authority, and the Basic Rent and Additional Rent provided to be paid by Tenant shall be apportioned and paid to the date such possession is taken. In such event, any award received or sum accepted by a compromise disposition or otherwise as a result of such condemnation or taking shall be distributed to Landlord only. Tenant shall have the right to file and receive compensation for moving expenses and costs or loss to which Tenant might be put in removing Tenant’s equipment, but not for the leasehold and provided the same does not reduce or diminish Landlord’s award.

Section 7.3 - Taking of Less Than All. If at any time during the Term any lesser portion of the Premises, Unit or Property than that described in Section 7.2 shall be taken in any eminent domain or condemnation proceeding or deed in lieu thereof, which does not materially alter Tenant’s use of the Premises, then this Lease shall continue and, if any portion of the Premises shall have been taken, then Basic Rent and Additional Rent shall be proportionately reduced for the remainder of the Term based on the rentable floor area remaining after the taking.

Section 7.4 - Removal of Property. In the event of any damage to the Premises or the condemnation of all or a portion thereof, Tenant shall as soon as practicable (but no later than seven (7) Business Days after receiving a notice from Landlord) remove any and all of Tenant’s Removable Property (as defined herein) from the Premises or the portion thereof destroyed or taken, as the case may be, and if Tenant does not promptly so remove Tenant’s Removable Property, Landlord, at Tenant’s expense, may discard the same or may remove Tenant’s Removable Property to a public warehouse for deposit or retain the same in its own possession and at its discretion may sell the same at either public auction or private sale, the proceeds of which shall be applied first to the expenses of removal, storage and sale, second to any sums owed by Tenant to Landlord, with any balance remaining to the paid to Tenant; if the expenses of such removal, storage and sale shall exceed the proceeds of any sale, Tenant shall pay such excess to Landlord upon demand. As used herein “Removable Property” shall mean all articles of personal property and all business and trade fixtures, furniture, moveable partitions, freestanding cabinet work, machinery and equipment owned or installed by Tenant or any party claiming by, through or under Tenant. Tenant shall be solely responsible for arranging for any visits to the Premises by Tenant’s insurance adjuster that may be desired by Tenant prior to the removal of Tenant’s Removable Property by Tenant or Landlord, as provided in this paragraph or the performance by Landlord of any restoration work and Landlord shall be under no obligation to delay the performance of same, nor shall Landlord have any liability to Tenant in the event that Tenant fails to do so. Tenant shall promptly permit Landlord access to the

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Premises for the purpose of performing any evaluation or the restoration work.

Article VIII - Assignment and Subleasing

Section 8.1 - Assignment and Subleasing.

(a)    Tenant shall not assign this Lease or sublet the Premises without Landlord’s prior written consent, which consent shall not be unreasonably withheld, conditioned or delayed subject to the terms of this Article. If Tenant shall desire to assign this Lease or sublet the Premises, Tenant shall submit to Landlord a written request for Landlord’s consent to such assignment or subletting, which request shall contain or be accompanied by the following information: (1) the name and address of the proposed assignee or subtenant; (2) the terms and conditions of the proposed assignment or subletting; (3) the nature and character of the business of the proposed assignee or subtenant and of its proposed use of the Premises; (4) any other terms agreed between Tenant and proposed assignee or subtenant; and (5) current financial information and any other information as Landlord may reasonably request with respect to the proposed assignee or subtenant. Additionally, if the proposed assignee or subtenant will be guaranteed by any person or entity, Tenant’s submission shall not be considered complete until the information described in (1) and (5) have been provided with respect to each proposed guarantor.

(b)    Landlord shall have the option, to be exercised by notice given to Tenant within twenty (20) days after the later of (1) receipt of Tenant’s request for consent or (2) receipt of such further information as Landlord may reasonably request pursuant to clause (a)(5) above (such request to be made within ten (10) days after Landlord’s receipt of Tenant’s initial information package) to either (aa) request a surrender of the Premises, such surrender to be effective on the earlier of (i) the 90th day following the exercise of the option by Landlord or (ii) the date of the commencement of the proposed assignment or subletting but not prior to 30 days from the date of Landlord’s notice of exercise of Landlord’s option hereunder; or (bb) grant or deny its consent to the proposed assignment or subletting.

Section 8.2 - Consent to Assignment or Subletting. If Landlord shall not exercise its option with respect to a surrender under Section 8.1(b)(aa) above, then Landlord shall not unreasonably withhold, condition or delay its consent to the proposed assignment or subletting referred to in Tenant’s notice provided the following additional conditions (fulfillment of which shall not of themselves preclude Landlord’s exercise of its further reasonable consent) shall be satisfied by Tenant:

(a)    no assignment or subletting shall be to a person or entity which does not have a financial standing and be of a character and be engaged in business, or propose to use the assigned or sublet premises in a manner in keeping with the standards in such respects of the other tenancies in the Property and the character of the community;

(b)    the assignment or subletting shall be expressly subject to all of the obligations of Tenant under this Lease and the proposed assignee or subtenant shall assume all of Tenant’s obligations under this Lease pursuant to an assumption agreement satisfactory to Landlord in both form and content and, without limiting the generality of the foregoing, any assignment or sublease shall impose at least the same restrictions and conditions with respect to use as are contained in Article III and shall specifically provide that there shall be no further assignment or subletting without the prior written consent of Landlord as provided in this Article and compliance with all of the procedures and restrictions with respect to such consent;

(c)    that part, if any, of the term of any such assignment or sublease or any renewal or extension thereof, which shall extend beyond the Expiration Date or earlier termination of the Term, if

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any, shall be a nullity;

(d)    Landlord shall be furnished with a duplicate original of the assignment or sublease within ten (10) days after the date of its execution;

(e)    there shall be no uncured default by Tenant under any of the terms, covenants and conditions of this Lease, of which Landlord has previously notified Tenant, at the time that Landlord’s consent to any such assignment or subletting is requested and on the date of the commencement of the term of any such proposed assignment or sublease;

(f)    Tenant shall pay to Landlord, as additional rent, an amount equal to fifty percent (50%) of the Assignment Profit (hereinafter defined) or Sublease Profit (hereinafter defined), as the case may be. “Assignment Profit” shall mean an amount equal to all sums and other considerations paid to Tenant by the assignee for or by reason of such assignment (including, but not limited to, sums paid for the sale or rental of Tenant’s fixtures and leasehold improvements, equipment, furniture, furnishings or other personal property, less, in the case of a sale thereof, the then net unamortized or undepreciated cost thereof determined on the basis of Tenant’s federal income tax returns) which is in excess of the Basic Rent and Additional Rent accruing pursuant to the terms hereof through the remainder of the Term, provided further that the parties agree that the Assignment Profit shall not in any event include the sale proceeds in connection with the sale of substantially all of the assets of Tenant (other than with respect to the value of Tenant’s fixtures and leasehold improvements). “Sublease Profit” shall mean, in any year of the Term (aa) any rents, additional charges or other consideration payable under the sublease to Tenant by the subtenant which is in excess of the Basic Rent and Additional Rent accruing during such year of the Term in respect of the subleased space (at the rate per square foot payable by Tenant hereunder) pursuant to the terms hereof and (bb) all sums paid for the sale or rental of Tenant’s fixtures and leasehold improvements, equipment, furniture or other personal property, less, in the case of the sale thereof, the then net unamortized or undepreciated cost thereof determined on the basis of Tenant’s federal income tax returns, which net unamortized amount shall be deducted from the sums paid in connection with such sale in equal monthly installments over the balance of the term of the sublease (each such monthly deduction to be in an amount equal to the quotient of the net unamortized amount, divided by the number of months remaining in the Term), provided further that the parties agree that the Sublease Profit shall not in any event include the sale proceeds in connection with the sale of substantially all of the assets of Tenant (other than with respect to the value of Tenant’s fixtures, leasehold improvements, equipment, furniture or other personal property). The sums payable under this Article shall be paid to Landlord as and when due from the subtenant to Tenant. Tenant shall make reasonable efforts to collect said sums payable to Tenant by an assignee or subtenant, as the case may be;

(g)    Tenant shall not advertise, publicize or list in any way the availability of the Premises or state any proposed sublease rental rate without prior notice to and written approval by Landlord;

(h)    Tenant shall reimburse Landlord for any reasonable costs that may be actually incurred by Landlord in connection with any proposed assignment or sublease, including without limitation the costs of making investigations as to the acceptability of a proposed assignee or subtenant, and legal costs (which may include reasonably allocated in-house counsel fees) incurred in connection with its review of any requested consent;

(i)    The proposed subtenant shall not then be a tenant of any space in the Unit or Nova Place, or any affiliated corporation of any other tenant, or any other occupant of the Unit or Nova Place, or a Prospective Tenant (unless Landlord has otherwise consented). For the purposes of this Article, the term “Prospective Tenant” shall mean any person, corporation or other entity who has inspected space available for lease by Landlord in the Unit or by another Condominium Unit Owner

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of Nova Place within ninety (90) days prior to Tenant’s request for consent to an assignment or subletting;

(j)    Tenant fully complies with the provisions of Article 8;

(k)    The proposed use of the Premises shall be the same as Tenant’s Permitted Use and the proposed subtenant or assignee will not cause a breach of any provision of any existing lease for other space in the Unit;

(l)    Tenant shall not be released from responsibility for the performance of all of the terms and provisions of this Lease and the Tenant shall remain responsible for such performance;

(m)    The proposed assignment or sublease shall not be construed as modifying or limiting the rights of the Landlord under this Article;

(n)    The proposed assignment or sublease shall not be construed as modifying any provision of this Lease unless Landlord specifically consents in writing to the change;

(o)    The proposed assignment or sublease shall not be construed to apply to any transaction other than the one specifically consented to or acquiesced in; and

(p)    The proposed assignment or sublease shall not release any guarantor from its obligations under its guaranty.

Notwithstanding the foregoing, in no event shall Landlord ever be deemed unreasonable in denying its consent to an assignment of this Lease or subletting of the entire Premises: (i) if such assignment or subletting would allow the Premises be used for other than the Permitted Use or require alterations to the Premises inconsistent with the Permitted Use, or would require a use in conflict with an exclusive granted to another tenant in the Unit; or (ii) if there is a vacancy of comparably sized space in the Unit and if the terms and conditions of the assignment or subletting are less favorable for the landlord/sublessor than those conditions on which Landlord is then offering to lease such space; or (iii) if at the time of the request for Landlord’s consent and at the date of the sublease or assignment, Tenant shall be in breach or default of this Lease; or (iv) the assignee or subtenant is a Prospective Tenant (as defined in Section 8.2(i) above); or (v) the assignee or subtenant is a school, college, university or educational institution, whether or not non-profit; or (vi) the assignee or subtenant is a government, governmental or quasi-governmental organization, or any agency or subdivision thereof; or (vii) the assignee or subtenant is a tenant or subtenant of a tenant of Landlord or its affiliates, an occupant of the Unit or any other building in the county where the Unit is located owned by the Landlord or its affiliates; or (viii) any guarantor of this Lease refuses to consent to the assignment or sublease or to execute a written agreement reaffirming the guaranty, if applicable; or (ix) the assignee or subtenant is an entity or person whose projected or reasonably likely use of the Premises would classify the Premises as a “place of public accommodation” under the American with Disabilities Act of 1990, as may be amended from time to time, or furthermore whose projected or reasonably likely use of the Premises would create obligations in excess of Landlord’s obligations under this Lease but for the sublease or assignment or would conflict with the terms of any agreement then in effect with respect to the Unit.

Additionally, in the event that this Lease is assigned or if the Premises are sublet or occupied by anyone other than Tenant, Landlord may, at any time and from time to time, collect rent and other charges from the assignee, subtenant or occupant, and apply the net amount collected to the rent and other charges herein reserved, but no such assignment, subletting, occupancy, collection or modification of any provisions of this Lease shall be deemed a waiver of the foregoing covenant, or the acceptance of the assignee, subtenant or occupant as a tenant or a release of the original named

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Tenantfrom the further performance by the original named Tenant hereunder or release the original named guarantor from its obligations under its guaranty. No assignment or subletting hereunder shall relieve Tenant from its obligations hereunder and Tenant shall remain fully and primarily liable therefor.

Section 8.3 - Division of Premises. If a part of the Premises is surrendered to Landlord pursuant to Section 8.1(b)(aa) above, then Landlord, at the cost and expense of Tenant, shall make such alterations as may be required physically to separate such surrendered space from the remainder of the Premises and shall make such repairs and alterations as may be required to restore to tenantable condition any part of the remainder of the Premises which is physically affected by such separation. Tenant shall afford Landlord and its tenants, assignees or undertenants reasonably appropriate means of ingress and egress to and from such surrendered space. Further, Landlord and Tenant shall execute and deliver a supplementary agreement modifying this Lease, as of the day following such surrender, by eliminating such surrendered space from the Premises, reducing the rents (Basic Rent and additional rent) payable hereunder by the amount allocable to such part of the Premises and appropriately modifying the other terms of the provisions of the Lease to reflect the elimination of such surrendered space from the Premises.

Section 8.4 - Documentation. No assignment of this Lease to a successor corporation or otherwise, shall be binding upon Landlord unless the assignee shall execute, acknowledge and deliver to Landlord an agreement, in recordable form, whereby the assignee agrees unconditionally to be bound by and to perform all of the obligations of Tenant hereunder and further expressly agrees that notwithstanding such assignment the provisions of this Article shall continue to be binding upon said assignee with respect to all future assignments; but the failure or refusal of the assignee to execute or deliver such an agreement shall not release the assignee from its liability for the obligations of Tenant hereunder assumed by acceptance or the assignment of this Lease.

Section 8.5 - Definition of Assignment. As used in this Lease, “assignment” shall mean: a transfer (by one or more transfers) of a majority of the stock or partnership/member or equity interests, or other evidences of ownership of Tenant as if such transfer were an assignment of this Lease; a merger or consolidation of Tenant, a transfer or sale of all or substantially all of Tenant's assets or stock, the division of Tenant into two (2) or more entities, any other transfer of the control or operation of Tenant by operation of law and any mortgage, pledge or hypothecation by Tenant of all or any of its interest in this Lease.

Section 8.6 - No Release. In the event of any assignment or subletting pursuant to the provisions of this Article Tenant shall not be relieved of its obligations under this Lease.

Section 8.7 - Permitted Transfers. Notwithstanding anything to the contrary herein, Landlord’s consent shall not be required where Tenant’s entire interest hereunder is assigned, or all or a portion of the Premises is subleased, to any of the following: (a) an entity wholly-owned by Tenant; (b) an entity into which or with which Tenant is merged or consolidated, (c) an entity controlled by or under common control with Tenant, or (d) an entity acquiring all or substantially all of Tenant’s assets or all or substantially all of Tenant’s ownership interest (including, but not limited to, stock or membership interest) (each a “Permitted Transferee”). Notwithstanding any such assignment or subletting, Tenant shall remain primarily liable for all of its obligations as tenant under this Lease. Additionally, a Permitted Transferee must be an on-going business with sufficient net worth and financial condition to reasonably satisfy Landlord and, in the event of such a sale of all or substantially all of Tenant’s assets to a Permitted Transferee, Tenant shall include an assignment and assumption of this Lease as part of the assets transferred thereunder. It is understood by the parties that this Section 8.7 has been incorporated into this Lease solely for the purpose of allowing Tenant the flexibility to perform only transfers expressly set forth in this Section 8.7, and not to circumvent any obligation of Tenant to obtain Landlord’s prior consent with respect to a transfer as

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described hereinabove in this Article VIII. To that end, the following shall be applicable to any assignment or sublease to a Permitted Transferee: (i) Landlord shall receive notice describing the structure of the transaction, the parties involved, and the financial information required herein, certified by an officer of Tenant and/or the Permitted Transferee at least fifteen (15) days in advance (unless Tenant is not permitted to make such disclosure pursuant to Applicable Law), and a copy of the executed transfer document (in form reasonably acceptable to Landlord consistent with the provisions hereof) within fifteen (15) days after the transfer occurs, (ii) Tenant shall remain liable for all of Tenant’s obligations under this Lease, (iii) the Permitted Transferee shall expressly assume all of Tenant’s obligations under this Lease in writing reasonably acceptable to Landlord, (iv) this provision shall not be deemed consent to any further sublease, assignment or other transfer; and (v) any Permitted Transfer shall be subject to the terms and provisions of Section 8.2(c), (e), (h), (k), (m) and (n).

Article IX - Default

Section 9.1 - Default. Each of the following shall be an “Event of Default” by Tenant:

(a)    Failure of Tenant to pay any Basic Rent or Additional Rent (including, without limitation, the Electrical Charge) within five (5) days after the same shall become due and payable, provided however, that if Tenant fails to pay any such amount when such payment is due two (2) times in any twelve (12) month period, Tenant’s subsequent failure to make any such payment when due shall, at Landlord’s option, be deemed an immediate Event of Default without any such five (5) day grace period or the opportunity for cure;

(b)    Any assignment made of the property of Tenant or any guarantor of Tenant’s obligations hereunder for the benefit of creditors;

(c)    The appointment of a receiver, trustee or assignee for Tenant or any guarantor with respect to all or substantially all of its assets;

(d)    The declaration of bankruptcy or insolvency by Tenant or any guarantor of Tenant’s obligations hereunder;

(e)    The commencement of any bankruptcy proceedings by or against Tenant or any guarantor of Tenant’s obligations hereunder, provided, however, the commencement of an involuntary proceeding against Tenant or any guarantor shall not be an Event of Default if dismissed within sixty (60) days following commencement;

(f)    The vacation or abandonment of the Premises by Tenant;

(g)    Failure by Tenant to maintain all required insurance coverage and provide evidence thereof to Landlord as and when required under Article VI above;

(h)    Tenant’s failure to timely vacate the Premises in the condition required by Article XII hereof upon the expiration of the Term without the written consent of Landlord;

(i)    Attachment, execution or other judicial seizure of substantially all of Tenant’s assets located in the Premises or of Tenant’s interest in the Lease;

(j)    Tenant’s failure to remove or abate any Hazardous Materials in accordance with its obligations as set forth in Section 3.4 hereof within ten (10) days after receipt of notice from Landlord regarding such removal or abatement obligation, provided that such cure period may be extended by Landlord if the removal or abatement reasonably requires more than ten (10) days to perform an

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adequate cure;

(k)    Intentionally deleted;

(l)    Neglect or failure by Tenant to perform or comply with any of the agreements, terms, covenants or conditions of this Lease, other than those referred to subsections (a) through (k) above, for a period of thirty (30) days (or such shorter period for completing a cure for such default as may be required by applicable Laws or by virtue of an emergency situation) after notice from Landlord to Tenant specifying the items in default, or if such failure is of such a nature that Tenant cannot reasonably remedy the same within such thirty (30) day period, Tenant shall fail to commence promptly (and in any event within such thirty (30) day period) to remedy the same and thereafter to diligently prosecute such remedy to completion with diligence and continuity (and in any event, within ninety (90) days after the notice described in this subparagraph (h)), provided that (x) in no event shall Tenant have such additional period of time that would (A) subject Landlord or any mortgagee to prosecution for a crime or any other fine or charge, (B) subject the Property, or any part thereof, to any lien or encumbrance which is not removed or bonded within the time period required under this Lease, or (C) result in a default under any mortgage and (y) such written notice for a similar default shall only be required twice in any twelve (12) month period, with any subsequent similar performance default constituting an automatic Event of Default without need for an additional written notice); or

(m)     If Tenant’s obligations under this Lease are guaranteed: (1) the death of a guarantor, (2) the termination of a guarantor’s liability with respect to this Lease other than in accordance with the terms of such guaranty, (3) a guarantor’s refusal to honor the guaranty, or (4) a guarantor’s breach of its guaranty obligation on an anticipatory breach basis.

Section 9.2 - Landlord’s Remedies.

(a)    Upon the occurrence of an Event of Default by Tenant, Landlord may pursue any and all remedies available to it at law or in equity. Landlord may give Tenant a notice of intention to end the Term of this Lease at the expiration of three (3) business days from the date of the giving of such notice, and, in the event such notice is given, this Lease and the Term and estate hereby granted (whether or not the Term shall theretofore have commenced) shall expire and terminate upon the expiration of said three (3) business days with the same effect as if that day were the date hereinbefore set for the expiration of the full Term of this Lease, but Tenant shall remain liable for damages as provided in this Lease or pursuant to Applicable Laws. If the term “Tenant”, as used in this Lease refers to more than one person, then as used in this Article IX, said Term shall be deemed to include all of such persons or any one of them. If any of the obligations of Tenant under this Lease is guaranteed, the term “Tenant” as used in said clauses, shall be deemed to include also the guarantor or, if there be more than one guarantor, all or any one of them; and, if this Lease shall have been assigned, the term “Tenant”, as used in said clauses, shall be deemed to include the assignee and the assignor or either of them under any such assignment.

(b)    If an Event of Default occurs and Landlord elects not to terminate this Lease, then (i) Landlord shall have the immediate right, pursuant to legal process, if any be applicable, to either pay any sums or do any act on behalf of Tenant, in order to cure a default by Tenant, and any sums expended by Landlord, together with interest thereon accruing at the Default Rate shall be immediately due and payable by Tenant to Landlord, or (ii) Landlord may, pursuant to legal process, if any be applicable, re-enter the Premises and Landlord may remove all persons and property from the Premises and such property may be removed and stored in a public warehouse or elsewhere at the cost of, and for the account of, Tenant without Landlord being deemed guilty of trespass or becoming liable for any loss or damage which may be occasioned thereby.

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(c)    In addition, if an Event of Default occurs, then whether or not Landlord terminates this Lease, Landlord may elect to re-enter or take possession pursuant to legal proceedings or pursuant to any notice provided for by Applicable Laws. Upon Landlord’s election to re-enter or to take possession it may make such alterations and repairs as may be necessary in order to relet the Premises or any part thereof, for such term or terms (which may be for a term extending beyond the Term) and at such rentals and upon such other terms and conditions as Landlord in its commercially reasonable discretion may deem advisable and upon each such reletting all rentals received by Landlord from such reletting shall be applied first, to the payment of any indebtedness other than Basic Rent and Additional Rent due hereunder from Tenant to Landlord, second, to the payment of the cost of any such alterations and repairs, third, to the payment of Basic Rent and Additional Rent due and unpaid hereunder, and any amount remaining shall be held by Landlord and applied in payment of future Basic Rent and Additional Rent as the same may become due and payable hereunder. If such rentals received from such reletting during any month be less than the Basic Rent and Additional Rent to be paid during that month by Tenant hereunder, then Tenant shall pay any such deficiency to Landlord. Such deficiency shall be calculated and paid monthly. Landlord may recover from Tenant, from time to time, all damages it may incur by reason of Tenant’s default, including the cost of recovering the Premises and reasonable attorneys’ fees (which may include reasonably allocated in-house counsel fees), all of which amount shall be immediately due and payable from Tenant to Landlord. Landlord shall in no event be liable in any way whatsoever for failure to re-let the Premises, or, in the event that the Premises are re-let, for failure to collect the rent under such re-letting.

(d)    Additionally, at any time after such re-entry or possession or in lieu thereof, without any further notice or demand, whatsoever, Landlord may terminate this Lease and forthwith repossess the Premises by delivering notice accordingly; in which case Tenant must immediately surrender the Premises to Landlord, and if Tenant fails to do so, Landlord may, without prejudice to any other remedy which Landlord may have for possession or arrearages in Rent, enter upon and take possession of the Premises, by forcible entry or detainer suit or otherwise, by force if necessary (except where prohibited by Applicable Laws), without demand or notice of any kind to Tenant, without being liable for prosecution for claims of damages therefor; in which case, Landlord will be entitled to recover from Tenant, on demand, the liquidated damages set out as follows. Landlord and Tenant agree that it is difficult to determine, with any degree of certainty, the loss Landlord will incur if the Lease is terminated as a result of an Event of Default; accordingly, Landlord and Tenant agree that the total sum of money determined in accordance with the following formula represents a reasonable estimate of such loss and is intended as a liquidated damages provision: (i) the cost of recovering the Premises; plus (ii) the unpaid Basic Rent and Additional Rent at the time of termination; plus (iii) the Basic Rent, if any, which was abated at the beginning of the Term; plus (iv) the amount equal to: (1) the total Rent which Landlord would have received under this Lease for the remainder of the Term (assuming that, for the purposes of this paragraph, annual payments by Tenant on account of Taxes and Operating Costs would be the same as the payments required for the immediately preceding year) less (2) the then fair market value of the remaining un-expired portion of the Lease determined at the then Fair Market Rental Rate (as defined below) for the Premises, and the result of such calculation shall be discounted to the net present value (computed using the prime rate of the Citibank, NA in effect at the date of such termination); plus (v) all other reasonable expenses incurred by Landlord in connection with Tenant’s default, reletting the Premises and all other sums of money and damages due to Landlord. For the purposes of this Section 9.2, the term “Fair Market Rental Rate” shall take into consideration the rental rate for the Premises and comparable buildings, taking into account any concessions generally granted in the Northshore office submarket of the City of Pittsburgh, which are generally then prevailing in the market at the time of such determination and taking into consideration the likelihood and probable timing of the re-letting of the Premises.

(e)    IN ADDITION TO ANY AND ALL REMEDIES PROVIDED HEREUNDER OR BY

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LAW, FOR VALUE RECEIVED AND UPON ANY EVENT OF DEFAULT BY TENANT HEREUNDER, OR UPON TERMINATION OF THE TERM AND THE FAILURE OF TENANT TO DELIVER POSSESSION OF THE PREMISES TO LANDLORD, TENANT HEREBY EMPOWERS ANY ATTORNEY OF ANY COURT OF COMPETENT JURISDICTION TO APPEAR FOR TENANT AND, WITHOUT COMPLAINT FILED, EITHER IN ADDITION TO OR WITHOUT A JUDGMENT FOR THE SPECIFIC AMOUNT OF RENT OR ACCELERATED RENT DUE UNDER THIS LEASE, TO APPEAR FOR TENANT, AND FOR ANY OTHER PERSONS CLAIMING UNDER, BY OR THROUGH TENANT, AND CONFESS JUDGMENT, OR A SERIES OF JUDGMENTS, FORTHWITH AGAINST TENANT AND SUCH OTHER PERSONS AND IN FAVOR OF LANDLORD, ITS SUCCESSORS AND/OR ASSIGNS, IN AN AMICABLE ACTION OF EJECTMENT FOR THE PREMISES, AND FOR COSTS OF SUIT AND ATTORNEYS’ COMMISSION OF FIVE THOUSAND AND NO/100 DOLLARS ($5,000.00) AND WITH RELEASE OF ALL ERRORS, AND WITHOUT STAY OF EXECUTION, AND THE ENTRY OF JUDGMENT UNDER THE FOREGOING WARRANT SHALL NOT EXHAUST THE WARRANT, BUT SUCCESSIVE JUDGMENTS MAY BE ENTERED THEREUNDER FROM TIME TO TIME AS OFTEN AS DEFAULTS OCCUR.

TENANT’S INITIALS: /s/DM /s/FS

Section 9.3 - Non-Waiver. Landlord’s failure to act upon breach of any of the covenants of this Lease by Tenant shall in no way constitute a waiver of the rights of Landlord, at any time in the future, to act upon such default; nor shall any such failure to act prevent Landlord from acting in the event of any other or further breach of Tenant’s covenants. No provision of this Lease shall be deemed to have been waived unless such waiver is in writing signed by Landlord. No payment by Tenant or receipt by Landlord of a lesser amount than the Basic Rent or Additional Rent then due shall be deemed other than on account of the earliest rent then unpaid, nor shall any endorsement or statement on any check or any letter accompanying any check or payment as rent be deemed an accord and satisfaction, and Landlord may accept such check or payment without prejudice to Landlord’s right to recover the balance of such rent or pursue any other remedy provided for in this Lease.

Section 9.4 - Waiver by Tenant. Tenant hereby waives any demand for Basic Rent and Additional Rent, re-entry for condition broken, or other formalities to which Tenant may be entitled after an Event of Default. Tenant hereby expressly waives any and all rights of redemption granted by or under present or future laws in the event of Tenant being evicted or dispossessed for any reasonable cause or in the event of Landlord obtaining possession of the Premises by reason of the violation by Tenant of any of the provisions of this Lease or otherwise under the terms of this Lease. The acceptance of Basic Rent and Additional Rent or failure to re-enter by Landlord after such default shall not be held to be a waiver of its right to terminate this Lease, and Landlord may re-enter and take possession thereof the same as if no rent had been accepted after such default. Tenant expressly waives any right of defense which it may have to claim a merger and neither the commencement of any action or proceeding nor the settlement thereof or entering of judgment therein shall bar Landlord from bringing subsequent actions or proceedings from time to time.

Section 9.5 - Self-Help. If Tenant fails, within seven (7) days after notice from Landlord, to proceed with due diligence to perform any of its obligations and covenants contained in this Lease, Landlord may, but shall not be required to, and in addition to any other rights of Landlord hereunder or at law or in equity, perform the same and the expenses thereof incurred by Landlord shall be collectable as Additional Rent after rendition of a bill or statement therefor, provided however, that nothing herein shall prevent Landlord from performing any of Tenant’s obligations and covenants prior to the expiration of such 7-day period if Landlord determines, in its commercially reasonable

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discretion, that failure to so perform would put the Unit or Landlord interest therein at risk.

Section 9.6 - Landlord’s Default. Landlord shall in no event be in default in the performance of any of its obligations in this Lease contained unless and until Landlord shall have failed to perform such obligation within thirty (30) days, or such additional time as is reasonably required to correct any such default, after notice by Tenant to Landlord properly specifying wherein Landlord has failed to perform any such obligation.

Section 9.7 - Provisions Not Exclusive. Any and all rights and remedies herein created for Landlord shall be cumulative, and the use of one remedy shall not be taken to exclude or waive the right to the use of another. The foregoing rights and remedies are not intended to be exclusive but as additional to all rights and remedies Landlord would otherwise have by Applicable Laws.

Section 9.8 - Attorneys’ Fees. Tenant shall pay Landlord for, and indemnify Landlord against, all reasonable legal costs and charges, including attorneys’ fees (which may include reasonably allocated in-house counsel fees), reasonably incurred by Landlord in any action under this Lease.

Article X - Subordination and Relationship of the Parties

Section 10.1 - Subordination. Tenant agrees that this Lease shall be and hereby is automatically subordinate to any present or future mortgage on the Unit or Land. Without limiting the foregoing, Tenant agrees, so long as Tenant’s rights under this Lease and its quiet and peaceable possession of the Premises are not disturbed, if so requested in writing by Landlord, to sign any documents required to evidence such waiver and surrender any and all right of prior lien which Tenant has, might have, or ought to have by virtue of this Lease over any mortgage or mortgages which now are or shall hereafter be placed upon the Premises, the Unit or Land or any part thereof and to deliver the same within twenty (20) days of such written request. In the event Tenant fails to deliver such document or statement within such twenty (20) day period, Tenant hereby appoints Landlord as its attorney-in-fact to execute any and all documents necessary to effect such waiver and surrender of rights or priority. Tenant agrees that such mortgage or mortgages shall take precedence over this Lease and shall be entitled to the same rights and benefits, both at law and in equity, as said mortgage or mortgages would have had if executed, delivered and recorded prior to the lien of this Lease. In the event that Tenant requests that Landlord obtain a Subordination, Non-Disturbance and Attornment Agreement from any mortgage holder, Tenant shall reimburse Landlord for all costs incurred in obtaining such Subordination, Non-Disturbance and Attornment Agreement, including, but not limited to, reasonable attorneys’ fees (which may include reasonably allocated in-house counsel fees) and processing charges required by any such mortgage holder.

Section 10.2 - Estoppel Certificate. Landlord and Tenant, as applicable, shall, from time to time upon written request by the requesting party, execute and deliver to the requesting party within twenty (20) days of such written request, a written declaration using the commercially reasonable form provided by the requesting party: (a) expressing the commencement and expiration dates thereof; (b) certifying that this Lease is in full force and effect and has not been assigned, modified, supplemented or amended (except by such writings as shall be stated); (c) that all conditions under this Lease to be performed by the requesting party have been satisfied, or stating those alleged to remain unsatisfied; (d) that there are no defenses or offsets against the enforcement of this Lease by the requesting party, or stating those claimed by the non-requesting party; (e) the amount of advance Rent, if any, paid by Tenant; (f) the date to which Rent has been paid; and (g) any other reasonably requested information regarding the Lease. Landlord, Landlord’s mortgage lenders and/or purchasers of the Property and their lender and Tenant shall be entitled to rely upon the applicable estoppel certificate. If the non-requesting party fails to deliver such a statement or declaration within such twenty (20) day period, then such failure shall be a default hereunder, and it shall be conclusively deemed that this Lease is in full force and effect and unmodified and that there

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are no uncured defaults in the non-requesting party’s performance hereunder.

Section 10.3 - No Joint Venture. Notwithstanding any obligation from one party to the other herein, the parties hereto state that they have not created and do not intend to create by this Lease a Joint Venture or Partnership relation between them; it being their sole purpose and intent to create only a Landlord-Tenant relationship.

Article XI - Security Deposit

Intentionally deleted.

Article XII - Termination and Surrender

Section 12.1 - Condition of Premises. Upon expiration or other termination of this Lease, Tenant shall:

(a)    Quit and surrender the Premises, broom cleaned and in good condition, reasonable wear and tear excepted.

(b)    Remove from the Premises its goods and effects and those of all persons claiming under Tenant, such goods and effects to include but not be limited to all movable partitions erected by it, appliances, shelving and all other equipment, stock and materials which Tenant may have installed in or brought upon the Premises, including removal of any data or communication wiring installed by Tenant. Tenant shall, at its own expense, repair all damage to the Premises by reason of removal as required by this section.

All repairs, alterations, other improvements or installations made to or upon the Premises which are so attached to the realty that the same will be, by law, deemed to be a part of the realty shall be the property of Landlord and remain upon and be surrendered with the Premises upon the termination of the Term. Notwithstanding the foregoing, all trade fixtures, lighting fixtures and signs, whether by law deemed to be a part of the realty or not, installed by Tenant or anyone claiming under Tenant at any time, shall remain the property of Tenant or such persons claiming under Tenant and may be removed by Tenant or such persons claiming under Tenant at any time or times during the Term.

Section 12.2 - Holding-Over. If Tenant remains on the Premises beyond the expiration or termination of this Lease or any renewal or extension thereof without the written consent of Landlord, such holding-over shall be deemed to create a tenancy at sufferance at a rate equal to one hundred fifty percent (150%) of the amount of Basic Rent and Additional Rent in effect on the date immediately preceding such expiration or earlier termination, and Landlord shall have, in addition, all of the rights and remedies reserved to it under this Lease. In the event that the tenancy at sufferance continues for more than thirty (30) days, then Tenant shall also pay over to Landlord and indemnify, defend and save Landlord harmless from and against all liabilities, suits, actions, damages, costs and expenses, penalties and claims arising out of Tenant’s holding over in the Premises including without limitation all third party claims against Landlord. Tenant’s indemnity, as stated above, shall survive the expiration or other termination of this Lease or the tenancy at sufferance as stated above.

Section 12.3 - Landlord and Tenant Act of 1951. TENANT EXPRESSLY WAIVES TO LANDLORD THE BENEFIT TO TENANT OF 68 P.S. SECTION 250.501, BEING SECTION 501 OF THAT ACT, APPROVED APRIL 6, 1951, ENTITLED “LANDLORD AND TENANT ACT OF 1951”, AS MAY BE AMENDED FROM TIME TO TIME, REQUIRING NOTICE TO QUIT UPON THE EXPIRATION OF THE TERM OF THIS LEASE OR AT THE EXPIRATION OF ANY EXTENSION OR RENEWAL THEREOF, OR UPON ANY EARLIER TERMINATION OF THIS LEASE, AS HEREIN PROVIDED. TENANT COVENANTS AND AGREES TO VACATE, REMOVE FROM AND

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DELIVER UP AND SURRENDER THE POSSESSION OF THE PREMISES TO LANDLORD UPON THE EXPIRATION OF THE TERM OR UPON THE EXPIRATION OF ANY EXTENSION OR RENEWAL THEREOF, OR UPON ANY EARLIER TERMINATION OF THIS LEASE, AS HEREIN PROVIDED, WITHOUT SUCH NOTICE, IN THE CONDITION AS REQUIRED ABOVE.

Article XIII - Miscellaneous Provisions

Section 13.1 - Broker. Landlord and Tenant hereby represent and agree that they have neither communicated nor dealt with any real estate broker or agent in connection with the Premises or the transaction contemplated herein except CBRE, Inc., as Landlord’s agent and Rise Commercial, as Tenant’s agent (collectively, “Broker”) and that no other broker or agent is entitled to any commission or any other remuneration on account of this transaction. Landlord agrees to pay the commission due Broker. Landlord and Tenant agree that if either has communicated or dealt with any real estate broker or agent, other than Broker, who makes a claim for commission in connection with this transaction, then the party so communicating or dealing shall indemnify and hold the other party harmless against any costs or expenses, including the cost of defense, resulting from any such claim. The indemnity, as set forth in this Section 13.1, shall survive the termination or expiration of this Lease.

Section 13.2 - Amendments. This Lease shall not be amended, modified, altered or changed in any respect whatsoever except by further agreement, in writing, duly executed by each of the parties hereto.

Section 13.3 - Successors. This Lease shall be binding upon and inure to the benefit of the parties hereto and to their respective heirs, successors, personal representatives and assigns.

Section 13.4 - Construction. The parties agree that this document shall not be construed more severely against one of the parties than the other.

Section 13.5 - Captions. The captions of this Lease are for convenience and reference only and in no way define, describe, extend or limit the scope or intent of this Lease or of any provision hereof.

Section 13.6 - Notices. Any notice, demand, offer or other written instrument (“notice”) required or permitted to be given, made or sent under this Lease shall be in writing, signed by or on behalf of the party giving such notice and shall be hand delivered or sent by a recognized overnight delivery service providing proof of delivery (such as Federal Express or UPS), addressed as follows:

TO LANDLORD:	TO TENANT:
Faros ACA RE LLC	Castle Biosciences, Inc.
c/o Faros Property Management	3737 N. 7th Street, Suite 160
1 Allegheny Square	Phoenix, AZ 85014
Nova Tower One, Suite 300	Attn: Kristen Oelschlager, COO
Pittsburgh, PA 15212
With a copy to:
Faros Properties
Attn: General Counsel
14 Beacon Street, 7th Floor
Boston, MA 02108
ADDITIONALLY, Rent payments shall be sent to Landlord as follows:

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Via Regular Mail or Hand Delivery:
Faros ACA RE LLC	Via Overnight Delivery
1 Allegheny Square	Faros ACA RE LLC
Nova Tower One, Suite 300	Lockbox# 781108
Attn: Accounting Department	Wells Fargo Bank
	MAC Y1372-045
Pittsburgh, PA 15212	401 Market Street
	Philadelphia, PA 19106
Via Wire Transfer:
To be provided upon request

Either party may change its address set forth in this Article by giving notice to the other party in accordance with this Article.

A notice shall be effective upon hand delivery or, if by overnight delivery the date of receipt or rejection evidenced on the courier’s records. Provided further however that rejection or refusal to accept or inability to deliver because of change of address (without proper notice of such change of notice address as required hereunder) shall be deemed receipt of the notice sent as of the first day of refusal or rejection or the first date of attempted delivery to the address specified herein in the case of a change of notice address without proper notice of such change of address as aforesaid.

Any notice given by an attorney on behalf of Landlord shall be considered as given by Landlord and shall be fully effective.

Section 13.7 - Counterparts and Electronic Signatures. This Lease may be executed in several counterparts, each of which shall be deemed an original but all of which shall constitute one and the same document, and when each of the parties hereto has executed one or more of such counterparts, this Lease shall be deemed fully executed and effective in accordance with its terms. Documents executed, scanned and transmitted electronically and electronic signatures shall be deemed original signatures for purposes of this Lease and all matters related thereto, with such scanned and electronic signatures having the same legal effect as original signatures. This Lease, any other document necessary for the consummation of the transaction contemplated by this Lease may be accepted, executed or agreed to through the use of an electronic signature in accordance with the Electronic Signatures in Global and National Commerce Act, Title 15, United States Code, Sections 7001 et seq., the Uniform Electronic Transaction Act and any applicable state law. Any document accepted, executed or agreed to in conformity with such laws will be binding on each party as if it were physically executed.

Section 13.8 - Partial Invalidity. The invalidity of one or more of the phrases, sentences, clauses, Sections or Articles contained in this Lease shall not affect the remaining portions so long as the material purposes of this Lease can be determined and effectuated. If any portion of this Lease may be interpreted in two or more ways, one of which would render the portion invalid or inconsistent with the rest of this Lease, it shall be interpreted to render such portion valid or consistent.

Section 13.9 - Limitation of Liability. Anything in this Lease to the contrary notwithstanding, Tenant agrees that it shall look solely to the Landlord’s then equity interest in the Land and Unit and subject to the prior rights of any mortgagee of the property and subject to Landlord’s rights under a leasehold interest of the Land or part thereof, if any, for the collection of any judgment (or other judicial process) requiring the payment of money by Landlord in the event of any default or breach by Landlord with respect to any of the terms, covenants and conditions of this Lease to be observed and/or performed by Landlord, and no other assets of Landlord, or any of its members, managers or partners, shall be subject to levy, execution or other procedures for the satisfaction of Tenant’s

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remedies. It is specifically agreed that Landlord or its members, managers or partners shall never be personally liable for any such judgment or for the payment of any monetary obligation to Tenant. Further, in no event shall Landlord or its members, managers or partners be liable to Tenant for any indirect, special or consequential damages suffered by Tenant from whatever cause or in connection with any act of Landlord, its members, managers, agents, employees, invitees, independent contractors or otherwise.

Section 13.10 - Joint and Several Liability. If this Lease is executed by more than one person or entity as Tenant, each of such persons and entities shall be jointly and severally liable for the performance of all of Tenant’s obligations set forth in this Lease.

Section 13.11 - Financial Statements. If Tenant’s financial statements are accessible on line through filings with the United States Securities and Exchange Commission, or any other governmental authority of which Tenant notifies Landlord and Landlord is readily able to access the website of the such governmental authority, Tenant shall not be required to provide the requested financial information. However, if during the Term of the Lease Tenant’s financial statements are not accessible to the public without charge via a website, then within ten (10) days after Landlord has made a written request, Tenant shall deliver to Landlord a complete financial statement certified by an independent certified public accounting firm or an authorized officer of Tenant. Tenant agrees to maintain accounting controls and books of account, in form adequate for auditing purposes.

Section 13.12 - Relocation. Intentionally deleted.

Section 13.13 - Governing Law. This Lease shall be governed by, construed and enforced in accordance with the substantive laws of the Commonwealth of Pennsylvania without regard to principles of conflicts of law.

Section 13.14 - Waiver of Jury Trial. The parties hereby waive trial by jury in any action, proceeding or counterclaim brought by either party.

Section 13.15 - Notice of Lease. The Parties agree that they will not record this Lease or a Notice of Lease.

Section 13.16 - Number and Gender. Any reference to the masculine gender shall be deemed to include the feminine and neuter genders, and vice versa, and any reference to the singular shall include the plural, and vice versa, unless the context otherwise requires.

Section 13.17 - Force Majeure. Except as otherwise specifically provided elsewhere in this Lease, in any case where either party hereto is required to do any act (other than Tenant’s obligations to pay Basic Rent and Additional Rent and to maintain insurance under this Lease and Tenant’s option to extend this Lease, if any), the time for such performance shall be extended by the period of delays caused by fire or other casualty, labor difficulties, strikes, labor disturbances, shortages of labor, materials or equipment, government regulations, governmental preemptions, federal, state or local governmental orders, quarantines or restrictions relating to the coronavirus/Covid-19 pandemic or any other epidemic, pandemic, quarantine order or governmental regulations related thereto or other causes beyond the reasonable control of such party, excluding in all cases financial inability to perform (“Force Majeure”).

Section 13.18 - Entire Agreement. All understandings and agreements heretofore had between the parties are merged in this Lease which alone fully and completely expresses their understanding.

Section 13.19 - Time of the Essence. Time shall be of the essence under this Lease.

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Section 13.20 - Guaranty of Lease. Intentionally deleted.

Section 13.21 - Sale of Unit by Landlord. In the event of any transfer of title to the Unit by Landlord, Landlord shall thereafter be entirely freed and relieved from the performance and observance of all covenants and obligations hereunder which are to be performed or observed from and after the date of such transfer. Landlord shall provide Tenant with notice of the transfer, which shall confirm transfer of any security deposit held by Landlord under this Lease to the new owner.

Section 13.22 - When Lease Becomes Binding. The submission of this document for examination and negotiation does not constitute an offer to lease, or a reservation of, or option for, the Premises, and this document shall become effective and binding only upon the execution and delivery hereof by both Landlord and Tenant. All negotiations, considerations, representations and understandings between Landlord and Tenant are incorporated herein and this Lease expressly supersedes any proposals or other written documents relating hereto. This Lease may be modified or altered only by written agreement between Landlord and Tenant, and no act or omission of any employee or agent of Landlord shall alter, change or modify any of the provisions hereof. Notwithstanding the Parties’ agreement that the Lease Term begins on the Commencement Date, the Parties understand and agree that this Lease is a binding obligation in full force and effect from and after the Effective Date (as defined below).

Section 13.23 - Authority for Execution. Each person executing this Lease on behalf of Landlord or Tenant, as applicable, hereby covenants and warrants that he or she was duly authorized to so execute this Lease and that this Lease is the valid and binding obligation of Landlord or Tenant, as applicable.

Section 13.24 - Tenant’s Understanding. TENANT HEREBY ACKNOWLEDGES AND AGREES THAT TENANT UNDERSTANDS THE CONFESSIONS OF JUDGMENT AUTHORIZED IN SECTION 9.2(E) OF THIS LEASE; THAT THIS TRANSACTION IS COMMERCIAL AND NONRESIDENTIAL IN NATURE; AND THAT TENANT WAIVES ANY RIGHT TO A HEARING OR TRIAL IN COURT WHICH WOULD OTHERWISE BE REQUIRED BY LAW AS A PRIOR CONDITION TO LANDLORD’S OBTAINING THE JUDGMENTS AUTHORIZED IN SECTION 9.2(E) OF THIS LEASE.

Section 13.25 - Confidentiality. Tenant agrees that this Lease and the terms contained herein will be treated as strictly confidential and except as required by Applicable Laws (or except with the written consent of Landlord) Tenant shall not disclose the same to any third party except for Tenant’s partners, members, managers, agents, lenders, accountants, attorneys and potential assignees (provided such potential assignee has executed a confidentiality agreement) who have been advised of the confidentiality provisions contained herein and agree to be bound by the same. In the event Tenant is required by Applicable Laws to provide this Lease or disclose any of its terms, Tenant shall give Landlord prompt notice of such requirement prior to making disclosure so that Landlord may seek an appropriate protective order. If failing the entry of a protective order Tenant is compelled to make disclosure, Tenant shall only disclose portions of the Lease which Tenant is required to disclose and will exercise reasonable efforts to obtain assurance that confidential treatment will be accorded to the information so disclosed.

Section 13.26 - Parking Validation. Tenant shall have the right to participate in any parking validation program established by the Executive Board of the Nova Place Condominium and Landlord from time to time regarding the Nova Place Garage. Any charges incurred under such parking validation program shall be deemed additional rent under this Lease and shall be paid to Landlord within thirty (30) days after submission of an invoice to Tenant for such charges.

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Castle Biosciences - Unit 1 - Nova Place

Section 13.27 - Condominium. Landlord and Tenant acknowledge that the Premises are a part of Unit 3 of the Nova Place Condominium created by the Declaration of Condominium of the Nova Place Condominium dated July 27, 2017, with an effective date of July 31, 2017 and recorded on August 2, 2017 with the Department of Real Estate in Allegheny County, Pennsylvania in Deed Book Volume 16888, Page 128, and that this Lease is subject to the provisions of the Declaration of Condominium.

Section 13.28 - Early Termination Option. Provided that Tenant has not exercised its right of First Refusal (as set forth in Section 13.29 below) and Landlord has not provided Tenant with notice of an ongoing default of its obligations hereunder and such default remains uncured, Tenant shall have the one-time option to terminate this Lease (the “Early Termination Option”) effective at the expiration of the one hundred fourth (104th) month after the Rent Commencement Date (the “Early Termination Date”) provided that Tenant gives Landlord written notice of its election to exercise the Termination Option prior to the end of the ninety-second (92nd) month after the Commencement Date of the Term (the “Early Termination Option Exercise Period”). The date of Tenant’s notice of the election to exercise this option shall be the “Early Termination Option Exercise Date”. Tenant’s exercise of the Early Termination Option shall be irrevocable and expressly conditioned on each of the following items being properly and timely completed: (i) as of the Early Termination Option Exercise Date and the Early Termination Date, all Basic Rent and Additional Rent shall be current and shall be apportioned as of the Early Termination Date; and (ii) within thirty (30) days after Landlord’s receipt of Tenant’s timely and written exercise of the Early Termination Option, Tenant shall submit to Landlord a termination fee equal to 50% of the Basic Rent owed between the Early Termination Date and the Expiration Date, provided that such amount shall be revised in the event that the Lease is amended so that the Basic Rent is adjusted (the “Termination Payment”); and (iii) neither party shall have any rights, liabilities or obligations under this Lease for the period accruing after the Early Termination Date, except those which, by the provisions of this Lease, expressly survive the termination of the term of this Lease; and (iv) Tenant shall surrender the Premises in the condition required under this Lease. Provided that Tenant properly exercises its Early Termination Option and timely submits the Termination Payment, pursuant to the terms of this section, Landlord and Tenant shall promptly execute an amendment to this Lease to document the Early Termination Date. If Tenant fails to strictly comply with the terms and provisions of this sub-section, then this Lease shall remain in full force and effect.

Section 13.29 - Right of First Refusal.

(a)    Grant of Option. Subject to the terms of Section 13.29(e) below, in the event that all or any portion of the 10,000 rentable square feet of contiguous space on the Terrace Level (the “Offered Space”) is available for lease by Landlord, and if Landlord intends to enter into a lease (the “Proposed Lease”) for such Offered Space with a third party (a “Proposed Tenant”), Landlord shall offer to Tenant the right to lease the applicable portion of the Offered Space upon all the terms and conditions of the Proposed Lease. Notwithstanding the foregoing, in the event that Landlord intends to lease any portion of the Offered Space to an Affiliate of Landlord, Landlord shall follow the process set forth in this subsection 13.29 but the economic terms for the Proposed Lease shall be the lesser of: (i) the then-current terms of this Lease, or (ii) Fair Market Rent for the Offered Space, as defined and subject to the process set forth in Section 1.5 above.

(b)    Process. Such offer will be made by Landlord to Tenant in a written notice (the “Offer Notice”) which offer will designate the applicable portion of the Offered Space being offered and specify the terms for such Offered Space which will be the same as those set forth in the Proposed Lease. Tenant may accept the offer set forth in the Offer Notice by delivering to Landlord an unconditional acceptance (“Tenant’s Notice”) of such offer within five (5) business days after delivery by Landlord of the Offer Notice to Tenant. Time will be of the essence with respect to the giving of Tenant’s Notice. If Tenant does not accept (or fails to timely accept) an offer made by

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Landlord designated in the Offer Notice, Landlord shall be free to enter into a lease with a third party for the particular Offered Space, except as set forth in (c) below. In order to send the Offer Notice, Landlord does not need to have negotiated a complete lease with the Proposed Tenant but may merely have a fully negotiated, non-binding term sheet or letter of intent for the Proposed Lease, and Tenant must make its decision with respect to the Offered Space as long as it has received the Offer Notice containing a description of the material economic terms of such term sheet or letter of intent. Tenant must accept the entire space offered by Landlord in the Offer Notice if it desires to accept any of the space and may not exercise its right with respect to only a portion of such space identified in the Offer Notice.

(c)    Effect of Non-Acceptance. If Tenant does not accept the Offer Notice, Tenant will be deemed to have irrevocably waived all further rights with respect to the Offered Space included in the Offer Notice and Landlord shall be free to lease all or any portion of the Offered Space to the Proposed Tenant or any subsequent tenant pursuant to the terms set forth in the Offer Notice. Notwithstanding the foregoing, if Tenant declines to lease the space in the Offer Notice, and if Landlord has not leased such space by the date that is eighteen (18) months following the date of the applicable Offer Notice, and if after such date Landlord intends to enter into a Proposed Lease with a party other than the original Proposed Tenant upon terms materially different than those contained in the original Offer Notice (meaning terms less than ninety percent (90%) of the economic terms set forth in the original Offer Notice), Landlord shall again offer the Offered Space to Tenant in accordance with the terms of Subsection (b), above.

(d)    Election to Expand. If Tenant elects to lease the space set forth in the Offer Notice as provided above, then the parties shall promptly enter into an amendment of Lease to include such space as part of the Premises on the terms set forth in the Offer Notice (inclusive of any tenant improvement allowance, base year, rental rate, term length and other material terms) after Landlord’s receipt of Tenant’s Notice. The failure of the parties to execute such amendment within said time period shall not relieve the parties of their obligation to lease the identified space on the terms set forth in the Offer Notice.

(e)    The provisions of this Section 13.29 shall not be effective and Tenant shall not have the right to lease the space identified in the Offer Notice if (i) the original Tenant named herein has assigned this Lease (except for a Permitted Transfer allowed pursuant to the terms of Section 8.7 above); or (ii) Tenant is then in default in the performance of its obligations under this Lease, beyond the expiration of all applicable notice and cure periods; or (iii) Tenant has been in default in the performance of its obligations under this Lease, and Landlord has given Tenant notice of such default within the preceding twenty-four (24) months; or (iv) any portion of the Premises has then been sublet and the sublease remains in effect; or (v) there has been a material negative change in Tenant’s financial condition, as determined by Landlord in its reasonable discretion; or (vi) it is during the last forty-eight (48) months of the Term; or (vii) another tenant of the Nova Place.

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SIGNATURE PAGE FOLLOWS

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This Lease shall be deemed effective as of the date of the last party to sign below (the “Effective Date”).

	TENANT:		LANDLORD:
	CASTLE BIOSCIENCES, INC.,		FAROS ACA RE LLC,
	a Delaware corporation		a Delaware limited liability company
By:	/s/Derek Maetzold	By:	/s/Alexander Leventhal
Name:	Derek Maetzold	Name:	Alexander Leventhal
Title:	President and CEO	Title:	Manager
Date:	March 2, 2026	Date:	March 19, 2026
By:	/s/Franklin Stokes
Name:	Franklin Stokes
Title:	CFO
Date:	March 2, 2026

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Castle Biosciences - Unit 1 - Nova Place

EXHIBIT A - DIAGRAM OF PREMISES

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Castle Biosciences - Unit 1 - Nova Place

EXHIBIT B - RULES AND REGULATIO

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Castle Biosciences - Unit 1 - Nova Place

EXHIBIT C - LANDLORD’S WORK

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SCHEDULE C-1 - PLAN FOR LANDLORD’S WORK

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SCHEDULE C-2 - LANDLORD’S WORK LETTER

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EXHIBIT D - CONSTRUCTION INSURANCE REQUIREMENTS

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EXHIBIT E - LANDLORD SERVICES

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EXHIBIT F - CONFIRMATION OF LEASE PROVISIONS

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EX-10.03

Exhibit 10.3

SECOND AMENDMENT TO LEASE AGREEMENT

THIS SECOND AMENDMENT TO LEASE AGREEMENT (this “Amendment”) is made and entered into as of the date of the last party to sign below (the “Effective Date”), by and between ACA CONCOURSE EAST UNIT 3 LLC, a Delaware limited liability company (“Landlord”) and CASTLE BIOSCIENCES, INC., a Delaware corporation (“Tenant”). Landlord and Tenant are sometimes individually referenced herein as “Party” and collectively as “Parties”.

R E C I T A L S :

A.    Landlord and Tenant entered into that certain Lease Agreement dated April 1, 2022 as amended by the First Amendment to Lease Agreement dated April 2, 2024 (collectively, the “Lease”), pursuant to which Landlord has leased to Tenant and Tenant leased from Landlord certain space in the Unit, which is located at Nova Place, Pittsburgh, Pennsylvania (the “Premises”).

B.    Tenant is entering into a lease with an affiliate of Landlord for additional space within another condominium unit at the Project (the “Affiliate Lease”).

C.    Landlord and Tenant now desire to: (i) extend the Term of the Lease so that it is coterminous with the Affiliate Lease; and (ii) modify various terms and provisions of the Lease, all as hereinafter provided.

D.    All capitalized terms when used herein shall have the same meanings given such terms in the Lease unless expressly superseded by the terms of this Amendment.

NOW THEREFORE, in consideration of the foregoing recitals and the mutual covenants contained herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

1.    Extension of Lease Term. The Expiration Date of the Lease is October 31, 2033. Effective as of the Commencement Date of the space associated with the Affiliate Lease, the Expiration Date is revised to be the last day of the one hundred twenty-eighth (128th) full calendar month thereafter (“Revised Expiration Date”) unless this Lease is sooner terminated or extended as provided in this Lease.

2.Basic Rent. As of the Commencement Date of the Affiliate Lease, the Basic Rent table set forth in Section 2.3 of the Lease shall be revised based on the determination of the new Expiration Date.

Basic Rent Period	Basic Rent (per Basic Rent Period)	Monthly Basic Rent	Rate per r.s.f.
11/1/25-10/31/26	$1,328,720.85	$110,726.74	$29.74
11/1/26-10/31/27	$1,355,295.27	$112,941.27	$30.34
11/1/27-10/31/28	$1,382,401.17	$115,200.10	$30.94
11/1/28-10/31/29	$1,410,049.20	$117,504.10	$31.56
11/1/29-10/31/30	$1,438,250.18	$119,854.18	$32.19
11/1/30-10/31/31	$1,467,015.18	$122,251.27	$32.84
11/1/31-10/31/32	$1,496,355.49	$124,696.29	$33.49
11/1/32-10/31/33	$1,526,282.60	$127,190.22	$34.16
11/1/33-10/31/34	$1,556,808.25	$129,734.02	$34.85
11/1/34-10/31/35	$1,587,944.41	$132,328.70	$35.54
11/1/35-10/31/36	$1,619,703.30	$134,975.28	$36.25

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11/1/36-Month 128after Commencement of Affiliate Lease $1,652,097.37 $137,674.78 $36.98

The revised Basic Rent Table shall be set forth with the exact dates in the Confirmation of Amendment Provisions, the form of which is attached hereto and incorporated herein as Exhibit A-2.

(e)    The following is added as a new sub-paragraph in Section 2.3:

“In the event that the Expansion Date is other than the first day of a calendar month, for purposes of calculating the Basic Rent payments owed pursuant to this Section 2.3 the “first month” of the Term after the Expansion Date shall be deemed to mean the number of days between the Expansion Date and the last day of such calendar month plus the next full calendar month.”

3.    Notices. Landlord’s address in Section 13.6 of the Lease is hereby deleted in its entirety and replaced with the following:

“TO LANDLORD:

ACA Concourse East Unit 3 LLC

c/o Faros Property Management

1 Allegheny Square

Nova Tower One, Suite 300

Pittsburgh, PA 15212

With a copy to:

Faros Properties

Attn: General Counsel

14 Beacon Street, 7th Floor

Boston, MA 02108 ”

4.    Early Termination Option. Section 13.28 is hereby deleted in its entirety and replaced with the following:

“Section 13.28 - Early Termination Option. Provided that Landlord has not provided Tenant with notice of an ongoing default of its obligations hereunder and such default remains uncured, Tenant shall have the one-time option to terminate this Lease (the “Early Termination Option”) effective at the expiration of the one hundred fourth (104th) month after the Affiliate Lease Commencement Date (the “Early Termination Date”) provided that Tenant gives Landlord written notice of its election to exercise the Termination Option prior to the end of the ninety-second (92nd) month after the Affiliate Lease Commencement Date of the Term (the “Early Termination Option Exercise Period”). The date of Tenant’s notice of the election to exercise this option shall be the “Early Termination Option Exercise Date”. Tenant’s exercise of the Early Termination Option shall be irrevocable and expressly conditioned on each of the following items being properly and timely completed: (i) as of the Early Termination Option Exercise Date and the Early Termination Date, all Basic Rent and Additional Rent shall be current and shall be apportioned as of the Early Termination Date; and (ii) within thirty (30) days after Landlord’s receipt of Tenant’s timely and written exercise of the Early Termination Option, Tenant shall submit to Landlord a termination fee equal to 50% of the Basic Rent owed between the Early Termination Date and the Expiration Date, provided that such amount shall be revised in the event that the Lease is amended so that the Basic Rent is adjusted (the “Termination Payment”); and (iii) neither party shall have any rights, liabilities or obligations under this Lease for the period accruing after the Early Termination Date, except those which, by the provisions

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of this Lease, expressly survive the termination of the term of this Lease; and (iv) Tenant shall surrender the Premises in the condition required under this Lease. Provided that Tenant properly exercises its Early Termination Option and timely submits the Termination Payment, pursuant to the terms of this section, Landlord and Tenant shall promptly execute an amendment to this Lease to document the Early Termination Date. If Tenant fails to strictly comply with the terms and provisions of this sub-section, then this Lease shall remain in full force and effect.”

5.    Right of First Refusal. Section 13.29 of the Lease is hereby deleted in its entirety.

6.    Confession of Judgment. Notwithstanding anything to the contrary set forth in the Lease, Tenant hereby agrees that IN ADDITION TO ANY AND ALL REMEDIES PROVIDED HEREUNDER OR BY LAW, FOR VALUE RECEIVED AND UPON ANY EVENT OF DEFAULT BY TENANT HEREUNDER, OR UPON TERMINATION OF THE TERM AND THE FAILURE OF TENANT TO DELIVER POSSESSION OF THE PREMISES TO LANDLORD, TENANT HEREBY EMPOWERS ANY ATTORNEY OF ANY COURT OF COMPETENT JURISDICTION TO APPEAR FOR TENANT AND, WITHOUT COMPLAINT FILED, EITHER IN ADDITION TO OR WITHOUT A JUDGMENT FOR THE SPECIFIC AMOUNT OF RENT OR ACCELERATED RENT DUE UNDER THIS LEASE, TO APPEAR FOR TENANT, AND FOR ANY OTHER PERSONS CLAIMING UNDER, BY OR THROUGH TENANT, AND CONFESS JUDGMENT, OR A SERIES OF JUDGMENTS, FORTHWITH AGAINST TENANT AND SUCH OTHER PERSONS AND IN FAVOR OF LANDLORD, ITS SUCCESSORS AND/OR ASSIGNS, IN AN AMICABLE ACTION OF EJECTMENT FOR THE PREMISES, AND FOR COSTS OF SUIT AND ATTORNEYS’ COMMISSION OF FIVE THOUSAND AND NO/100 DOLLARS ($5,000.00) AND WITH RELEASE OF ALL ERRORS, AND WITHOUT STAY OF EXECUTION, AND THE ENTRY OF JUDGMENT UNDER THE FOREGOING WARRANT SHALL NOT EXHAUST THE WARRANT, BUT SUCCESSIVE JUDGMENTS MAY BE ENTERED THEREUNDER FROM TIME TO TIME AS OFTEN AS DEFAULTS OCCUR.

TENANT’S INITIALS: /s/DM /s/FS

7.    Broker. Landlord and Tenant each hereby represents and warrants to the other party that it has had no dealings with any real estate broker or agent in connection with the negotiation of this Amendment except CBRE, Inc., as Landlord’s agent, and Rise Commercial, as Tenant’s agent (collectively, “Broker”) and that no other broker or agent is entitled to a commission or any other remuneration on account of this Amendment. Landlord agrees to pay any commission due Broker. Each party agrees to indemnify and defend the other party against and hold the other party harmless from any and all claims, demands, losses, liabilities, lawsuits, judgments and costs and expenses (including, without limitation, reasonable attorneys’ fees) with respect to any leasing commission or equivalent compensation alleged to be owing on account of the indemnifying party’s dealings with any real estate broker or agent in connection with this Amendment other than Broker.

8.    No Further Modification. Except as set forth in this Amendment, all of the terms and provisions of the Lease shall remain unmodified and in full force and effect and that, except as expressly amended hereby, the terms and conditions of the Lease are hereby ratified and confirmed. The Lease and this Amendment, along with any exhibits or attachments, constitute the entire agreement between the parties relative to the Premises and there are no oral agreements or representations between the parties with respect to the subject matter hereof. The Lease, as amended by this Amendment, supersedes and cancels all other prior agreements and understandings with respect to the subject matter hereof. This Amendment shall be effective only upon the execution hereof by Landlord and Tenant. The parties acknowledge that this Amendment is drafted jointly and, for interpretation purposes, neither party is deemed the drafting party. The parties acknowledge that they have had the opportunity to have counsel review and explain the contents and effects of this Amendment and that they execute the same voluntarily, knowingly and with a full understanding of the legal effect hereof. In case suit shall be brought for any breach of or to interpret or enforce this Amendment by either party hereto, the prevailing

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party shall be entitled to a reasonable attorneys’ fees which shall be fixed by the Court, or in any compromise or settlement such attorneys’ fees shall be deemed to have accrued on the commencement of such action and shall be paid whether or not such action is prosecuted to judgment. Tenant hereby represents and warrants to Landlord that, to Tenant’s actual knowledge, Landlord is not in default of any of its obligations under the Lease, and that no events have occurred which, with the passage of time or the giving of notice, or either of them, would constitute a breach or default by Landlord under the Lease. Landlord hereby represents and warrants to Tenant that, to Landlord’s actual knowledge, Tenant is not in default of any of its obligations under the Lease, and that no events have occurred which, with the passage of time or the giving of notice, or either of them, would constitute a breach or default by Tenant under the Lease. Tenant hereby represents and warrants that as of the Effective Date, the Lease is in full force and effect, and is an enforceable obligation of Tenant, and that Tenant has no rights of offset, defenses or counterclaims to Landlord’s enforcement thereof.

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SIGNATURE PAGE FOLLOWS

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IN WITNESS WHEREOF, the parties have caused this Amendment to be duly executed by their duly authorized representatives as of the Effective Date.

“TENANT”:		“LANDLORD”:
CASTLE BIOSCIENCES, INC.,		ACA CONCOURSE EAST UNIT 3 LLC
a Delaware corporation		a Delaware limited liability company
By:	/s/Derek Maetzold	By:	/s/Alexander Leventhal
Name:	Derek Maetzold	Name:	Alexander Leventhal
Title:	President and CEO	Title:	Manager
Date:	March 2, 2026	Date:	March 19, 2026
By:	/s/Franklin Stokes
Name:	Franklin Stokes
Title:	CFO
Date:	March 2, 2026

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Second Amendment - Castle Biosciences - U3 Nova

EXHIBIT A-2 - CONFIRMATION OF AMENDMENT PROVISIONS

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EX-31.1

Exhibit 31.1

CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER

PURSUANT TO EXCHANGE ACT RULE 13a-14(a)/15d-14(a),

AS ADOPTED PURSUANT TO SECTION 302

OF THE SARBANES-OXLEY ACT OF 2002

I, Derek J. Maetzold, certify that:
1.	I have reviewed this Quarterly Report on Form 10-Q of Castle Biosciences, Inc.;
2.	Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3.	Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
4.	The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
	(a)	Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
	(b)	Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
	(c)	Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
	(d)	Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
5.	The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
	(a)	All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize, and report financial information; and
	(b)	Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date:	May 6, 2026	/s/ Derek J. Maetzold
		Derek J. Maetzold President and Chief Executive Officer (Principal Executive Officer)

EX-31.2

Exhibit 31.2

CERTIFICATION OF PRINCIPAL FINANCIAL OFFICER

PURSUANT TO EXCHANGE ACT RULE 13a-14(a)/15d-14(a),

AS ADOPTED PURSUANT TO SECTION 302

OF THE SARBANES-OXLEY ACT OF 2002

I, Frank Stokes, certify that:
1.	I have reviewed this Quarterly Report on Form 10-Q of Castle Biosciences, Inc.;
2.	Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3.	Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
4.	The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
	(a)	Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
	(b)	Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
	(c)	Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
	(d)	Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
5.	The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
	(a)	All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize, and report financial information; and
	(b)	Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date:	May 6, 2026	/s/ Frank Stokes
		Frank Stokes Chief Financial Officer (Principal Financial and Accounting Officer)

EX-32.1

Exhibit 32.1

CERTIFICATIONS PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2026 of Castle Biosciences, Inc. (the “Company”), as filed with the Securities and Exchange Commission on the date hereof (the “Report”), Derek J. Maetzold, President and Chief Executive Officer of the Company, and Frank Stokes, Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that to their knowledge:
	(1)	the Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”); and
	(2)	the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date:	May 6, 2026
/s/ Derek J. Maetzold		/s/ Frank Stokes
Derek J. Maetzold President and Chief Executive Officer (Principal Executive Officer)		Frank Stokes Chief Financial Officer (Principal Financial and Accounting Officer)

This certification accompanies the Form 10-Q to which it relates, is not deemed filed with the Securities and Exchange Commission and is not to be incorporated by reference into any filing of Castle Biosciences, Inc. under the Securities Act of 1933, as amended, or the Exchange Act (whether made before or after the date of the Form 10-Q), irrespective of any general incorporation language contained in such filing.

XML

Cover - shares	3 Months Ended
	Mar. 31, 2026	Apr. 29, 2026
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Mar. 31, 2026
Document Transition Report	false
Entity File Number	001-38984
Entity Registrant Name	CASTLE BIOSCIENCES, INC.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	77-0701774
Entity Address, Address Line One	1500 W. Parkwood Ave
Entity Address, Address Line Two	Suite 400
Entity Address, City or Town	Friendswood
Entity Address, State or Province	TX
Entity Address, Postal Zip Code	77546
City Area Code	866
Local Phone Number	788-9007
Title of 12(b) Security	Common Stock, $0.001 par value per share
Trading Symbol	CSTL
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		30,329,952
Entity Central Index Key	0001447362
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2026
Document Fiscal Period Focus	Q1
Amendment Flag	false

XML

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Mar. 31, 2026	Dec. 31, 2025
Current Assets
Cash and cash equivalents	$ 63,764	$ 116,729
Marketable investment securities	197,921	182,776
Accounts receivable, net	42,264	43,382
Inventory	10,461	10,254
Prepaid expenses and other current assets	14,491	7,956
Total current assets	328,901	361,097
Long-term accounts receivable, net	1,921	1,878
Property and equipment, net	100,934	97,443
Operating lease assets	14,424	14,795
Goodwill and other intangible assets, net	97,347	99,574
Other assets – long-term	4,278	3,769
Total assets	547,805	578,556
Current Liabilities
Accounts payable	15,038	18,711
Accrued compensation	19,111	38,287
Contingent consideration	1,000	1,000
Operating lease liabilities	1,254	1,325
Current portion of long-term debt	1,667	417
Other accrued and current liabilities	10,691	8,937
Total current liabilities	48,761	68,677
Long-term debt	8,399	9,640
Noncurrent portion of contingent consideration	1,500	1,500
Noncurrent operating lease liabilities	25,116	25,217
Noncurrent finance lease liabilities	288	314
Deferred tax liability	2,325	2,335
Total liabilities	86,389	107,683
Commitments and Contingencies (Note 12)
Stockholders’ Equity
Preferred stock, $0.001 par value per share; 10,000,000 shares authorized as of March 31, 2026 and December 31, 2025; no shares issued and outstanding as of March 31, 2026 and December 31, 2025	0	0
Common stock, $0.001 par value per share; 200,000,000 shares authorized as of March 31, 2026 and December 31, 2025; 30,295,965 and 29,686,314 shares issued and outstanding as of March 31, 2026 and December 31, 2025, respectively	30	30
Additional paid-in capital	700,255	694,860
Accumulated deficit	(238,806)	(224,284)
Accumulated other comprehensive (loss) income	(63)	267
Total stockholders’ equity	461,416	470,873
Total liabilities and stockholders’ equity	$ 547,805	$ 578,556

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CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Mar. 31, 2026	Dec. 31, 2025
Statement of Financial Position [Abstract]
Preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001
Preferred stock, shares authorized (in shares)	10,000,000	10,000,000
Preferred stock, shares issued (in shares)	0	0
Preferred stock, shares outstanding (in shares)	0	0
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized (in shares)	200,000,000	200,000,000
Common stock, shares issued (in shares)	30,295,965	29,686,314
Common stock, shares outstanding (in shares)	30,295,965	29,686,314

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CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2026	Mar. 31, 2025
Income Statement [Abstract]
NET REVENUES	$ 83,679	$ 87,988
OPERATING EXPENSES
Cost of sales (exclusive of amortization of acquired intangible assets)	20,533	16,383
Research and development	14,428	12,588
Selling, general and administrative	64,899	58,620
Amortization of acquired intangible assets	2,226	28,325
Total operating expenses, net	102,086	115,916
Operating loss	(18,407)	(27,928)
Interest income	2,545	3,099
Net gains (losses) on equity securities	2,022	(1,425)
Interest expense	(134)	(17)
Other loss	(439)	0
Loss before income taxes	(14,413)	(26,271)
Income tax expense (benefit)	109	(423)
Net loss	$ (14,522)	$ (25,848)
Loss per share, basic (in dollars per share)	$ (0.49)	$ (0.90)
Loss per share, diluted (in dollars per share)	$ (0.49)	$ (0.90)
Weighted-average shares outstanding, basic (in shares)	29,889	28,609
Weighted-average shares outstanding, diluted (in shares)	29,889	28,609

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CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2026	Mar. 31, 2025
Statement of Comprehensive Income [Abstract]
Net loss	$ (14,522)	$ (25,848)
Other comprehensive loss:
Net unrealized loss on marketable investment securities	(330)	(99)
Comprehensive loss	$ (14,852)	$ (25,947)

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CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY - USD ($) $ in Thousands	Total	Common Stock	Additional Paid-in Capital	Accumulated Deficit	Accumulated Other Comprehensive Income (Loss)
Common stock, shares outstanding, beginning balance (in shares) at Dec. 31, 2024		28,483,195
Beginning balance at Dec. 31, 2024	$ 455,835	$ 28	$ 655,703	$ (200,126)	$ 230
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock-based compensation expense	11,179		11,179
Exercise of common stock options (in shares)		6,331
Exercise of common stock options	18		18
Issuance of common stock from vested restricted stock units and performance-based restricted stock units, net of shares withheld for taxes (in shares)		251,970
Issuance of common stock from vested restricted stock units and performance-based restricted stock units, net of shares withheld for taxes	(2,516)	$ 1	(2,517)
Issuance of common stock under the employee stock purchase plan (in shares)		103,441
Issuance of common stock under the employee stock purchase plan	1,737		1,737
Net unrealized loss on marketable investment securities	(99)				(99)
Net loss	(25,848)			(25,848)
Common stock, shares outstanding, ending balance (in shares) at Mar. 31, 2025		28,844,937
Ending balance at Mar. 31, 2025	$ 440,306	$ 29	666,120	(225,974)	131
Common stock, shares outstanding, beginning balance (in shares) at Dec. 31, 2025	29,686,314	29,686,314
Beginning balance at Dec. 31, 2025	$ 470,873	$ 30	694,860	(224,284)	267
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock-based compensation expense	$ 9,776		9,776
Exercise of common stock options (in shares)	28,494	28,494
Exercise of common stock options	$ 322		322
Issuance of common stock from vested restricted stock units and performance-based restricted stock units, net of shares withheld for taxes (in shares)		486,737
Issuance of common stock from vested restricted stock units and performance-based restricted stock units, net of shares withheld for taxes	(6,598)		(6,598)
Issuance of common stock under the employee stock purchase plan (in shares)		94,420
Issuance of common stock under the employee stock purchase plan	1,895		1,895
Net unrealized loss on marketable investment securities	(330)				(330)
Net loss	$ (14,522)			(14,522)
Common stock, shares outstanding, ending balance (in shares) at Mar. 31, 2026	30,295,965	30,295,965
Ending balance at Mar. 31, 2026	$ 461,416	$ 30	$ 700,255	$ (238,806)	$ (63)

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CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2026	Mar. 31, 2025
OPERATING ACTIVITIES
Net loss	$ (14,522)	$ (25,848)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	3,929	29,764
Stock-based compensation expense	9,776	11,179
Net (gains) losses on equity securities	(2,022)	1,425
Deferred income taxes	(10)	(770)
Accretion of discounts on marketable investment securities	(454)	(1,435)
Other	532	30
Change in operating assets and liabilities:
Accounts receivable	1,075	(5,217)
Prepaid expenses and other current assets	(6,667)	(3,364)
Inventory	(207)	1,286
Operating lease assets	371	420
Other assets	(530)	(38)
Accounts payable	3,193	615
Operating lease liabilities	(172)	(526)
Accrued compensation	(19,176)	(14,698)
Other accrued and current liabilities	2,755	1,141
Net cash used in operating activities	(22,129)	(6,036)
INVESTING ACTIVITIES
Purchases of marketable investment securities	(55,136)	(48,431)
Proceeds from maturities of marketable investment securities	39,100	36,300
Purchases of debt securities classified as held-to-maturity	0	(5,569)
Proceeds from sale of equity securities	2,681	0
Purchases of property and equipment	(12,455)	(4,740)
Proceeds from sale of property and equipment	7	9
Net cash used in investing activities	(25,803)	(22,431)
FINANCING ACTIVITIES
Proceeds from exercise of common stock options	322	18
Payment of employees’ taxes on vested restricted stock units and performance-based restricted stock units	(6,598)	(2,515)
Proceeds from contributions to the employee stock purchase plan	1,267	970
Repayment of principal portion of finance lease liabilities	(24)	(26)
Net cash used in financing activities	(5,033)	(1,553)
NET CHANGE IN CASH AND CASH EQUIVALENTS	(52,965)	(30,020)
Beginning of period	116,729	119,709
End of period	63,764	89,689
DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES:
Accrued purchases of property and equipment	4,097	3,217
Finance lease assets obtained in exchange for lease obligations	$ 0	$ 44

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Organization and Description of Business

3 Months Ended

Mar. 31, 2026

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Organization and Description of Business

Organization and Description of Business

Castle Biosciences, Inc. (the “Company,” “we,” “us” or “our”) was incorporated in the state of Delaware on September 12, 2007. We are a commercial-stage diagnostics company focused on providing clinicians and their patients with personalized, clinically actionable information to inform treatment decisions and improve health outcomes. We are based in Friendswood, Texas (a suburb of Houston, Texas), and our laboratory operations are conducted at our facilities located in Phoenix, Arizona and Pittsburgh, Pennsylvania.

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Summary of Significant Accounting Policies

3 Months Ended

Mar. 31, 2026

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

Summary of Significant Accounting Policies

Basis of Presentation

Our unaudited condensed consolidated financial statements include the accounts of Castle Biosciences, Inc. and our wholly owned subsidiaries and have been prepared in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”). All intercompany accounts and transactions have been eliminated in consolidation.

We have a history of recurring net losses and negative cash flows and as of March 31, 2026, we had an accumulated deficit of $238.8 million. We believe our $63.8 million of cash and cash equivalents and $197.9 million of marketable investment securities as of March 31, 2026, and anticipated revenue from our test reports, will be sufficient to meet our cash requirements through at least the 12-month period following the date that these unaudited condensed consolidated financial statements were issued.

Unaudited Interim Financial Information

The accompanying condensed consolidated balance sheet as of March 31, 2026; the condensed consolidated statements of operations, the condensed consolidated statements of comprehensive loss and the condensed consolidated statements of stockholders’ equity, each for the three months ended March 31, 2026 and 2025; and the condensed consolidated statements of cash flows for the three months ended March 31, 2026 and 2025 are unaudited. The unaudited interim condensed consolidated financial statements have been prepared on the same basis as the audited annual financial statements and, in the opinion of management, reflect all adjustments, which include only normal recurring adjustments, necessary for the fair statement of our consolidated financial position as of March 31, 2026, the results of our consolidated operations for the three months ended March 31, 2026 and 2025 and our consolidated cash flows for the three months ended March 31, 2026 and 2025. The financial data and other information disclosed in these notes related to the three months ended March 31, 2026 and 2025 are also unaudited. The results for the three months ended March 31, 2026 are not necessarily indicative of results to be expected for the year ending December 31, 2026, any other interim periods, or any future year or period. The balance sheet as of December 31, 2025 included herein was derived from the audited financial statements as of that date. Certain disclosures have been condensed or omitted from the unaudited condensed consolidated financial statements. These unaudited condensed consolidated financial statements should be read in conjunction with our audited consolidated financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2025 filed with the Securities and Exchange Commission on February 26, 2026.

Use of Estimates

The preparation of condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Significant items subject to such estimates include revenue recognition, the valuation of stock-based compensation, assessing future tax exposure and the realizability of deferred tax assets, the useful lives and recoverability of long-lived assets, the goodwill impairment test, the valuation of acquired intangible assets, the valuation of contingent consideration, and other contingent liabilities. We base these estimates on historical and anticipated results, trends, and various other assumptions that we believe are reasonable under the circumstances, including assumptions as to future events. These estimates form the basis for making judgments about the carrying values of assets and liabilities and recorded revenues and expenses that are not readily apparent from other sources. Actual results could differ from those estimates and assumptions.

Segment Reporting

Operating segments are components of an enterprise engaging in business activities from which it may recognize revenues and incur expenses, where discrete financial information is available, and where its operating results are regularly reviewed by the public entity’s chief operating decision maker (“CODM”) to make decisions about resources to be allocated to the segment and to assess its performance. A CODM may be an individual or a decision-making group. A reportable segment consists of one or more operating segments. For additional information on our segment reporting, see Note 15.

Cash and Cash Equivalents including Concentrations of Credit Risk

Cash equivalents consist of short-term, highly liquid investments with original maturities of three months or less. Our cash equivalents consist of money market funds, which are not insured by the Federal Deposit Insurance Corporation (“FDIC”), that are primarily invested in short-term United States (“U.S.”) government obligations. Cash deposits at financial institutions may exceed the amount of insurance provided by the FDIC. Management believes that we are not exposed to significant credit risk on our cash deposits due to the financial position of the financial institutions in which deposits are held.

Marketable Investment Securities

Our marketable investment securities are comprised of debt and equity securities. All debt securities are recognized in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 320, Investments-Debt Securities (“ASC 320”). Management determines the appropriate classification of debt securities at the time of purchase and re-evaluates such determination at each balance sheet date. Debt securities that are classified as available-for-sale (“AFS”) are recorded at fair value in accordance with ASC 320. We recognize the unrealized gains and losses related to changes in fair value as a separate component of accumulated other comprehensive income within total stockholders’ equity, net of any related deferred income tax effects, on the condensed consolidated balance sheets. Debt securities that are classified as held-to-maturity (“HTM”) are reported at amortized cost in accordance with ASC 320. Premiums or discounts from par value are amortized to interest income over the life of the underlying investment and are included in interest income in the condensed consolidated statements of operations. Realized gains and losses on AFS and HTM debt securities, if any, are calculated at the individual security level and included in interest income in the condensed consolidated statements of operations. Impairments of AFS or HTM debt securities, if any, are recorded in the condensed consolidated statements of operations. See Notes 5 and 11 for further details.

Our equity securities consist of investments in shares of common stock which are listed and traded on the Nasdaq Global Market and certain foreign exchanges. All equity securities are recognized in accordance with ASC Topic 321, Investments-Equity Securities (“ASC 321”) and reported at their readily determinable fair values based on quoted market prices where changes in fair value are included in net gains (losses) on equity securities in the condensed consolidated statements of operations. For investments denominated in a foreign currency, the fair value is remeasured into U.S. dollars using exchange rates in effect at each balance sheet date in accordance with ASC Topic 830, Foreign Currency Matters (“ASC 830”). As a result, changes in fair value include the effects of both market price movements and foreign currency exchange rate fluctuations. All changes in a marketable security’s fair value are reported in earnings as they occur, and the sale of our equity securities does not necessarily give rise to a significant gain or loss. Investments in equity securities are classified as either current or long-term depending upon management’s intentions. We updated our terminology to refer to these investments as equity securities rather than trading securities to align with the terminology in ASC 321. See Notes 5 and 11 for further details.

Contingent Consideration

Under the terms of business combinations or asset acquisitions, we may be required to pay additional consideration if specified future events occur or certain conditions are met. In May 2025, we acquired Capsulomics, Inc., d/b/a Previse (“Previse”), which was recorded as an asset acquisition, and agreed to pay additional consideration of up to $2.5 million in cash based on the achievement of certain commercial milestones (the “Earnout Payments”). We account for the contingent consideration as a liability in accordance with ASC 450-20, Loss Contingencies (“ASC 450-20”) when it is both probable and reasonably estimable. In accordance with ASC 450-20, we recorded the contingent consideration at the amount required to settle the respective obligation, and subsequent changes are recognized as adjustments to the cost basis of the acquired assets. These changes are allocated to the acquired assets based on their relative fair values as of the date of acquisition. In December 2025 and March 2026, two commercial milestones were achieved, resulting in aggregate Earnout Payments of $1.0 million becoming payable. The payment related to the initial milestone was extended. Both earnout payments are expected to be made within 60 days following the end of the period.

Contingent consideration is classified as current or noncurrent in the condensed consolidated balance sheets based on the contractual timing of future settlement.

Revenue Recognition

In accordance with ASC Topic 606, Revenue from Contracts with Customers (“ASC 606”), we follow a five-step process to recognize revenues: (1) identify the contract with the customer, (2) identify the performance obligations, (3) determine the transaction price, (4) allocate the transaction price to the performance obligations and (5) recognize revenues when the performance obligations are satisfied. We have determined that we have a contract with the patient when the treating clinician orders the test. Our contracts generally contain a single performance obligation, which is the delivery of the test report, and we satisfy our performance obligation at a point in time upon the delivery of the test report to the treating clinician, at which point we can bill for the report. The amount of revenue recognized reflects the amount of consideration to which we expect to be entitled, or the transaction price, and considers the effects of variable consideration. See Note 3 for further details.

Collaborative Arrangements

We assess whether our licensing and other agreements are collaborative arrangements based on whether they involve joint operating activities and whether both parties have active participation in the arrangement and are exposed to significant risks and rewards. For arrangements that we determine are collaborations, we identify each unit of account and then determine whether a customer relationship exists for that unit of account. If we determine that a performance obligation within the collaborative arrangement is with a customer, we apply ASC 606.

If a portion of a distinct bundle of goods or services within the collaborative arrangement is not with a customer, we apply recognition and measurement based on an analogy to authoritative accounting literature or, if there is no appropriate analogy, a reasonable, rational, and consistently applied accounting policy election. To the extent the arrangement is within the scope of ASC Topic 808, Collaborative Arrangements (“ASC 808”), we assess whether aspects of the arrangement are within the scope of other accounting literature.

In June 2025, we entered into a Collaboration and License Agreement with SciBase Holding AB (“SciBase”). Following approval under the Swedish Screening of Foreign Direct Investments Act in the third quarter of 2025, we completed our investment in SciBase. The agreement aims to jointly develop diagnostic tests for dermatologic diseases, initially focused on atopic dermatitis, by combining SciBase’s Electrical Impedance Spectroscopy technology with our diagnostic and development expertise. Under the arrangement, we hold development and commercialization rights in North America, while SciBase retains rights in certain other territories. SciBase is entitled to royalties on our product sales, a mark-up on product sales to us, and a milestone payment upon achieving specified sales thresholds. Development costs are shared; however, SciBase deferred its initial clinical development costs for the initial indication and we will recover those costs through future royalty payments reductions.

We determined the agreement is a collaborative arrangement under ASC 808. Certain elements of the arrangement, including license rights and sales-based royalty provisions, represent transactions with a customer and are therefore accounted for under ASC 606. Other elements, such as shared development activities and cost reimbursements, are accounted for in accordance with ASC 808 and presented as reductions to research and development (“R&D”) expenses.

Accounts Receivable and Allowance for Credit Losses

We classify accounts receivable balances that are expected to be paid more than one year from the condensed consolidated balance sheet date as noncurrent assets. The estimated timing of payment utilized as a basis for classification as noncurrent is determined by analyses of historical payor-specific payment experience, adjusted for known factors that are expected to change the timing of future payments.

We accrue an allowance for credit losses against our accounts receivable based on management’s current estimate of amounts that will not be collected. We have elected the practical expedient under ASC Topic 326, Financial Instruments - Credit Losses (“ASC 326”) to assume that current conditions as of the balance sheet date do not change for the remaining life of our accounts receivable. Accordingly, management’s estimates are based on historical loss information adjusted for current conditions. We generally do not perform evaluations of customers’ financial condition and generally do not require collateral. Historically, our credit losses have not been significant. The allowance for credit losses was zero as of March 31, 2026 and December 31, 2025. Adjustments for implicit price concessions attributable to variable consideration, as discussed below, are incorporated into the measurement of the accounts receivable balances and are not part of the allowance for credit losses.

Convertible Loan Receivable

On November 7, 2025, we entered into a Convertible Loan Agreement with SciBase (the “Convertible Loan Receivable”), pursuant to which we loaned SEK 20.0 million, approximately $2.1 million based on the exchange rate in effect on November 7, 2025. The Convertible Loan Receivable bears interest at a rate of 2.00% plus the three-month Stockholm Interbank Offered Rate (“STIBOR”), payable quarterly. SciBase may prepay all or a portion of the Convertible Loan Receivable at any time. The Convertible Loan Receivable matures on November 7, 2030, at which time we have the option, at our sole discretion, to convert the outstanding principal plus accrued interest into shares of SciBase that are listed on the Nasdaq First North Growth Market in Sweden, receive full repayment in cash, or receive a combination of cash and shares.

We accounted for the convertible loan as a receivable within the scope of ASC Topic 310, Receivables. The carrying amount of the convertible loan is presented at amortized cost, within other assets - long-term in the condensed consolidated balance sheets. The Convertible Loan Agreement is remeasured into U.S. dollars using exchange rates in effect at each balance sheet date in accordance with ASC 830 with changes in exchange rates recognized in earnings. In addition, the embedded conversion feature to shares of SciBase did not meet the definition of a derivative and was not bifurcated from the host contract under ASC Topic 815, Derivatives and Hedging. We have determined that expected credit losses associated with the loan are insignificant and, accordingly, have not recorded a credit loss allowance under ASC Topic 326-20, Financial Instruments - Credit Losses.

Interest income on the Convertible Loan Receivable is recognized quarterly and included in interest income in the condensed consolidated statements of operations. Accrued interest receivable is recorded within prepaid expenses and other current assets in the condensed consolidated balance sheets.

Property and Equipment

Property and equipment are stated at cost, less accumulated depreciation and amortization. Depreciation is computed using the straight-line method over the estimated useful lives of the related assets, generally ranging from 5 to 39 years. Leasehold improvements are amortized on a straight-line basis over the shorter of the estimated useful life of the asset or the term of the lease. Leasehold improvements primarily relate to office and laboratory facilities in Phoenix, Arizona and Pittsburgh, Pennsylvania, and are generally depreciated over the remaining lease terms, which expire in 2034 and 2033, respectively.

Maintenance and repairs are expensed as incurred, and material improvements are capitalized. Interest costs incurred during the construction of major capital projects are capitalized until the underlying asset is ready for its intended use, at which point the capitalized interest costs are amortized using the straight-line method over the estimated useful life of the underlying asset. When assets are retired or otherwise disposed of, the cost and accumulated depreciation are removed from the condensed consolidated balance sheets and any resulting gain or loss is reflected in the condensed consolidated statements of operations in the period realized.

Goodwill

Goodwill represents the excess of the purchase price over the fair value of the net tangible and intangible assets acquired in a business combination. Goodwill is not amortized, but is tested for impairment. We test goodwill for impairment in the fourth quarter of each fiscal year and when events, or changes in circumstances, indicate that it may be impaired. Events and changes in circumstances indicating that goodwill may be impaired include sustained declines in the price of our common stock, increased competition, changes in macroeconomic developments, unfavorable government or regulatory developments and changes in coverage or reimbursement conditions.

Goodwill is tested for impairment at the reporting unit level where goodwill is held. Testing begins with completion of an optional qualitative assessment. If the qualitative assessment suggests that impairment is more likely than not, quantitative testing is conducted. If the qualitative assessment is bypassed, we proceed directly to quantitative testing. Quantitative testing consists of comparing the carrying value of goodwill to its estimated fair value. Impairment of goodwill is the condition that exists when the carrying value exceeds its fair value. Amounts by which carrying value exceed fair value, up to the total amount of goodwill allocated to the reporting unit, are recognized as an impairment loss in the condensed consolidated statements of operations.

Accrued Compensation

We accrue for liabilities under discretionary employee and executive bonus plans. Our estimated compensation liabilities are based on progress against corporate objectives approved by our board of directors, compensation levels of eligible individuals and target bonus percentage levels. Our board of directors reviews and evaluates the performance against these objectives and ultimately determines the actual achievement levels attained. We also accrue for liabilities under employee sales incentive bonus plans with accruals based on performance achieved to date compared to established targets. As of March 31, 2026 and December 31, 2025, we accrued approximately $7.9 million and $28.1 million, respectively, for liabilities associated with these bonus plans. These amounts are classified as current accrued liabilities in the condensed consolidated balance sheets based on the expected timing of payment.

Stock-Based Compensation

Stock-based compensation expense for equity instruments is measured based on the grant-date fair value of the awards. For stock option awards, and purchase rights made under the 2019 Employee Stock Purchase Plan (the “ESPP”), the fair value is estimated on the date of grant using the Black-Scholes option-pricing valuation model. For restricted stock units (“RSUs”) and performance-based restricted stock units (“PSUs”), the fair value is equal to the closing price of our common stock on the date of grant. For awards with graded vesting and only service conditions, we recognize compensation costs on a straight-line basis over the requisite service period of the awards. For stock options and RSUs, the requisite service period is generally the award’s vesting period (typically four years). PSUs vest upon the achievement of certain performance conditions and the provision of service with us through a specified period. Accruals of compensation cost for PSUs are based on the probable outcome of the performance conditions and are reassessed each reporting period. We recognize compensation cost for PSUs separately for each vesting tranche on a ratable basis over the requisite service period. The requisite service period for PSUs is based on an analysis of vesting requirements and performance conditions for the particular award. Certain employees are entitled to acceleration of vesting of a portion of their awards upon retirement, subject to age, service and notice requirements (“Retirement Policy”). Stock-based awards falling into the scope of the Retirement Policy are accounted for as a modification of existing awards under ASC Topic 718, Compensation – Stock Compensation. The modifications do not result in the recognition of incremental compensation cost; however, they do result in a new estimate of the requisite service period, which we reassess at each balance sheet date. For the ESPP, the requisite service period is generally the period of time from the offering date to the purchase date. Forfeitures are accounted for as they occur.

Comprehensive Loss

Comprehensive loss is defined as a change in equity during a period from transactions and other events and circumstances from non-owner sources. Comprehensive loss is made up of net loss plus net unrealized loss on marketable investment securities, which is our only other item of other comprehensive loss.

Recently Adopted Accounting Pronouncements

In July 2025, the FASB issued ASU No. 2025-05, Financial Instruments—Credit Losses (Topic 326): Practical Expedient for Certain Current Receivables (“ASU 2025-05”), which provides a practical expedient for estimating expected credit losses on current accounts receivable and contract assets arising from transactions under ASC 606. The practical expedient allows entities to assume that current conditions remain unchanged over the remaining life of the receivables. ASU 2025-05 is effective for annual periods beginning after December 15, 2025, including interim periods within those annual periods. We adopted the standard effective January 1, 2026, with no impact on our consolidated financial statements.

Accounting Pronouncements Yet to be Adopted

In November 2024, the FASB issued ASU No. 2024-03, Income Statement—Reporting Comprehensive Income (Subtopic 220-40)—Expense Disaggregation Disclosures: Disaggregation of Income Statement Expenses (“ASU 2024-03”), which specifies additional disclosure requirements. The amendments in ASU 2024-03 require disclosure about the composition of certain income expense line items, such as purchases of inventory, employee compensation, and other expenses, as well as disclosure about selling expenses. The ASU is effective for fiscal years beginning after December 15, 2026, and interim periods beginning after December 15, 2027. Early adoption is permitted. We are currently evaluating the impact this update will have on the consolidated financial statements and disclosures.

In September 2025, the FASB issued ASU No. 2025-06, Intangibles—Goodwill and Other-Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software (“ASU 2025-06”), which modernizes the accounting for internal-use software costs. The amendments in ASU 2025-06 remove all references to prescriptive and sequential software development stages throughout ASC 350-40. The ASU is effective for annual periods beginning after December 15, 2027, including interim periods within those annual periods. Early adoption is permitted. We are currently evaluating the impact this update will have on the consolidated financial statements and disclosures.

We have evaluated all other recently issued, but not yet effective, accounting pronouncements and do not believe that these accounting pronouncements will have any material impact on the consolidated financial statements or disclosures upon adoption.

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Revenue

3 Months Ended

Mar. 31, 2026

Revenue from Contract with Customer [Abstract]

Revenue

Revenue

All of our revenues from contracts with customers are associated with the provision of testing services. Our revenues are primarily attributable to our DecisionDx®-Melanoma test for cutaneous melanoma and our TissueCypher® test for patients diagnosed with Barrett’s esophagus. We also provide our DecisionDx®-UM test for uveal melanoma, MyPath® Melanoma test for patients with melanocytic lesions and our DecisionDx®-SCC test for cutaneous squamous cell carcinoma. IDgenetix®, a pharmacogenomics testing service focused on mental health, was previously offered and discontinued in May 2025.

Once we satisfy our performance obligations and bill for the service, the timing of the collection of payments may vary based on the payment practices of the third-party payor and the existence of contractually established reimbursement rates. The payments for our services are primarily made by third-party payors, including Medicare and commercial health insurance carriers. Certain contracts contain a contractual commitment of a reimbursement rate that differs from our list prices. However, absent a positive coverage policy, with or without a contractually committed reimbursement rate, with a commercial carrier or governmental program, our diagnostic tests may or may not be paid by these entities. In addition, patients do not enter into direct agreements with us that commit them to pay any portion of the cost of the tests in the event that their insurance provider declines to reimburse us. We may pursue, on a case-by-case basis, reimbursement from such patients in the form of co-payments and co-insurance, in accordance with the contractual obligations that we have with the insurance carrier or health plan. These situations may result in a delay in the collection of payments.

The Medicare claims that are covered by Medicare are generally paid at a rate established on Medicare’s Clinical Laboratory Fee Schedule or by the respective Medicare contractor within 30 days from receipt. Medicare claims that were either submitted to Medicare prior to the local coverage determination or other coverage commencement date or are not covered but meet the definition of being medically reasonable and necessary pursuant to the controlling Section 1862(a)(1)(A) of the Social Security Act are generally appealed and may ultimately be paid at the first (termed “redetermination”), second (termed “reconsideration”) or third level of appeal (de novo hearing with an Administrative Law Judge). A successful appeal at any of these levels may result in prompt payment.

In the absence of Medicare coverage, contractually established reimbursements rates or other coverage, we have concluded that our contracts include variable consideration because the amounts paid by Medicare or commercial health insurance carriers may be paid at less than our standard rates or not paid at all, with such differences considered implicit price concessions. Variable consideration attributable to these price concessions is measured at the expected value using the “most likely amount” method under ASC 606. The amounts are estimated using historical average collection rates by test type and payor category taking into consideration the range of possible outcomes, the predictive value of our past experiences, the time period of when uncertainties expect to be resolved and the amount of consideration that is susceptible to factors outside of our influence, such as the judgment and actions of third parties. Such variable consideration is included in the transaction price only to the extent it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur when the uncertainties with respect to the amount are resolved. Variable consideration may be constrained and excluded from the transaction price in situations where there is no contractually agreed upon reimbursement coverage or in the absence of a predictable pattern and history of collectability with a payor. Accordingly, in such situations revenues are recognized on the basis of actual cash collections. Variable consideration for Medicare claims that are not covered by Medicare, including those claims undergoing appeal, is deemed to be fully constrained due to factors outside our influence (e.g., judgment or actions of third parties) and the uncertainty of the amount to be received is not expected to be resolved for a long period of time. Variable consideration is evaluated each reporting period and adjustments are recorded as increases or decreases in revenues. Included in revenues for the three months ended March 31, 2026 and 2025 were $0.6 million of net negative and $0.8 million of net positive revenue adjustments, respectively, associated with changes in estimated variable consideration related to performance obligations satisfied in previous periods.

These amounts include (i) adjustments for actual collections versus estimated amounts and (ii) cash collections and the related recognition of revenue in current period for tests delivered in prior periods due to the release of the constraint on variable consideration.

Because our contracts with customers have an expected duration of one year or less, we have elected the practical expedient in ASC 606 to not disclose information about our remaining performance obligations. Any incremental costs to obtain contracts are recorded as selling, general and administrative expenses as incurred due to the short duration of our contracts. Contract balances consisted solely of accounts receivable (both current and noncurrent) as of March 31, 2026 and December 31, 2025.

Disaggregation of Revenues

The table below provides the disaggregation of revenue by type (in thousands):

	Three Months Ended March 31,
	2026		2025
Dermatologic(1)	$	41,105	$	62,962
Non-Dermatologic(2)	42,574		25,026
Total net revenues	$	83,679	$	87,988

(1)Consists of DecisionDx-Melanoma, DecisionDx-SCC and MyPath Melanoma.

(2)Consists of TissueCypher, DecisionDx-UM and IDgenetix.

We have presented disaggregated net revenues included in our single reportable segment in the table above. The characteristics for each test in our single segment are similar, with each test having a single performance obligation. Our CODM is the single individual responsible for managing our segment and reviews consolidated results and budgets in assessing performance and in allocating resources. See Note 15 for additional information about our reportable segment.

Payor Concentration

We rely upon reimbursements from third-party government payors (primarily Medicare) and private-payor insurance companies to collect accounts receivable related to sales of our tests.

Our significant third-party payors and their related revenues, each of which accounted for more than 10% of total revenues and accounts receivable balances were as follows:

	Percentage of Revenues				Percentage of  Accounts Receivable  (current) as of				Percentage of  Accounts Receivable  (noncurrent) as of
	Three Months Ended March 31,
	2026		2025		March 31, 2026		December 31, 2025		March 31, 2026		December 31, 2025
Medicare	40	%	47	%	19	%	18	%	*		*
Payor A	14	%	15	%	14	%	15	%	17	%	16	%
Payor B	*		*		17	%	22	%	*		10	%

*    Less than 10%

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Loss Per Share

3 Months Ended

Mar. 31, 2026

Earnings Per Share [Abstract]

Loss Per Share

Loss Per Share

Basic loss per share is computed by dividing net loss for the period by the weighted-average number of common shares outstanding during the period. Diluted loss per share reflects the additional dilution from potential issuances of common stock, such as stock issuable pursuant to the exercise of stock options, vesting of RSUs and PSUs or purchases under the ESPP. The treasury stock method is used to calculate the potential dilutive effect of these common stock equivalents. Contingently issuable PSU awards are included in the computation of diluted loss per share when the applicable performance criteria would be met and the common shares would be issuable if the end of the reporting period were the end of the contingency period. However, potentially dilutive shares are excluded from the computation of diluted loss per share when their effect is antidilutive.

Because we reported a net loss for all periods presented, all potentially dilutive securities are antidilutive and are excluded from the computation of diluted loss per share for such periods.

The table below provides the weighted-average number of potential common shares associated with outstanding securities not included in our calculation of diluted loss per share for the three months ended March 31, 2026 and 2025 because to do so would be antidilutive or, in the case of PSUs, the applicable performance conditions have not yet been met (in thousands):

	Three Months Ended March 31,
	2026	2025
Stock options	2,769	2,983
RSUs and PSUs	3,946	3,739
ESPP	256	176
Total	6,971	6,898

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Marketable Investment Securities

3 Months Ended

Mar. 31, 2026

Investments, Debt and Equity Securities [Abstract]

Marketable Investment Securities

Marketable Investment Securities

Marketable investment securities consisted of the following (in thousands):

	March 31, 2026		December 31, 2025
Current marketable investment securities:
Equity securities	$	8,130	$	5,555
Debt securities - AFS	184,194		171,631
Debt securities - HTM	5,597		5,590
Total current marketable investment securities	$	197,921	$	182,776

On January 26, 2026, in connection with SciBase’s rights offering, we completed an amendment to our previously disclosed subscription commitment. We agreed to increase our commitment to subscribe for shares without subscription rights from 115.0 million shares to 125.0 million shares. This amendment was intended to achieve an outcome substantially similar to full participation under our subscription rights. In addition, we purchased subscription rights for another 30.5 million shares from a separate SciBase shareholder. These purchased rights, together with our shares without subscription rights, aggregated to a total share purchase of 155.5 million shares for $3.6 million.

Equity Securities

The portion of unrealized gains and losses related to equity securities still held during the period is as follows (in thousands):

	Three Months Ended March 31,
	2026		2025
Net gains (losses) on equity securities	$	2,022	$	(1,425)
Less: Net loss recognized on equity securities sold	(127)		—
Net unrealized gains (losses) recognized on equity securities still held	$	2,149	$	(1,425)

Debt Securities

The following tables present our debt securities (in thousands):

	March 31, 2026
	Amortized Cost		Unrealized				Estimated Fair Value
			Gains		Losses
U.S. government securities - AFS	$	184,257	$	60	$	(123)	$	184,194
U.S. government securities - HTM	5,597		2		—		5,599
Total debt securities	$	189,854	$	62	$	(123)	$	189,793

	December 31, 2025
	Amortized Cost		Unrealized				Estimated Fair Value
			Gains		Losses
U.S. government securities - AFS	$	171,364	$	269	$	(2)	$	171,631
U.S. government securities - HTM	5,590		11		—		5,601
Total debt securities	$	176,954	$	280	$	(2)	$	177,232

Our U.S. government securities includes both AFS and HTM securities. The AFS securities are available to be sold to meet operating needs or otherwise, but are generally held through maturity. We classify all AFS investments as current assets, as these are readily available for use in current operations. As of March 31, 2026 and December 31, 2025, all of our AFS securities had contractual maturities of one year or less.

We classify our HTM investments as current assets, as we have the positive intent and ability to hold these investments to maturity, and all such maturities are less than one year from the balance sheet date.

We evaluated our U.S. government securities under the AFS and HTM impairment model guidance, respectively, and determined our investment portfolio is comprised of low-risk, investment grade securities.

For the three months ended March 31, 2026 and 2025, unrealized losses on our AFS and HTM U.S. government securities are not attributed to credit risk. We believe that an allowance for credit losses is unnecessary because the unrealized losses on certain of our marketable investment securities are due to market factors. The allowance for credit losses was zero as of March 31, 2026 and December 31, 2025.

There were no realized gains or losses on sales of debt securities for the three months ended March 31, 2026 and 2025. In addition, no credit-related or noncredit-related impairment losses were recorded for the three months ended March 31, 2026 and 2025.

Accrued interest receivable for our AFS and HTM U.S. government securities is included in prepaid expenses and other current assets in the condensed consolidated balance sheets. As of March 31, 2026 and December 31, 2025, the accrued interest receivable related to AFS securities was $1.3 million and $1.1 million, respectively. As of March 31, 2026 and December 31, 2025, the accrued interest receivable related to HTM securities was immaterial.

Additional information relating to the fair value of marketable investment securities can be found in Note 11.

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Property and Equipment, Net

3 Months Ended

Mar. 31, 2026

Property, Plant and Equipment [Abstract]

Property and Equipment, Net

Property and Equipment, Net

Property and equipment, net consisted of the following (in thousands):

	March 31, 2026		December 31, 2025
Land	$	7,245	$	7,245
Building	43,872		—
Lab equipment	33,602		33,034
Leasehold improvements	14,875		14,834
Computer equipment	6,372		5,920
Furniture and fixtures	4,081		3,648
Construction-in-progress	10,751		51,059
Total	120,798		115,740
Less: Accumulated depreciation	(19,864)		(18,297)
Property and equipment, net	$	100,934	$	97,443

In 2025, construction-in-progress related primarily to construction of our new headquarters in Friendswood, Texas, which was substantially completed in February 2026. Upon completion, we commenced depreciation of the capitalized construction costs of the building over an estimated useful life of 39 years. As of March 31, 2026, construction-in-progress related primarily to leasehold improvements for our office and laboratory facilities in Scottsdale, Arizona.

Depreciation expense was recorded in the condensed consolidated statements of operations as follows (in thousands):

	Three Months Ended March 31,
	2026		2025
Cost of sales (exclusive of amortization of acquired intangible assets)	$	1,158	$	903
Research and development	129		94
Selling, general and administrative	416		442
Total	$	1,703	$	1,439

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Goodwill and Other Intangible Assets, Net

3 Months Ended

Mar. 31, 2026

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Other Intangible Assets, Net

Goodwill and Other Intangible Assets, Net

Goodwill

We had a single reportable segment consisting of a single operating segment where the operating segment and the single reporting unit were the same as of March 31, 2026 and December 31, 2025, where all goodwill was allocated. As of March 31, 2026 and December 31, 2025, our goodwill was $10.7 million. There were no accumulated impairments of goodwill as of March 31, 2026 or December 31, 2025.

See Note 15 for additional information on our reportable segment.

Other Intangible Assets, Net

Our other intangible assets, net consisted of the following (in thousands):

	March 31, 2026
	Gross carrying value		Accumulated amortization		Net		Weighted-Average Remaining Life (in years)
Developed technology	$	153,500	$	(66,920)	$	86,580	10.0
Assembled workforce	563		(487)		76		0.7
Total other intangible assets, net	$	154,063	$	(67,407)	$	86,656

	December 31, 2025
	Gross carrying value		Accumulated amortization		Net		Weighted-Average Remaining Life (in years)
Developed technology	$	153,500	$	(64,721)	$	88,779	10.3
Assembled workforce	563		(460)		103		0.9
Total other intangible assets, net	$	154,063	$	(65,181)	$	88,882

During the first quarter of 2025, we made the decision to discontinue our IDgenetix test offering, effective May 2025. As a result of this decision, we further revised the estimated useful life of the asset and determined that the intangible asset should be fully amortized as of March 31, 2025. This change resulted in an acceleration of amortization expense of approximately $20.1 million.

Amortization expense of intangible assets was $2.2 million and $28.3 million for the three months ended March 31, 2026 and 2025, respectively.

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Other Accrued and Current Liabilities

3 Months Ended

Mar. 31, 2026

Payables and Accruals [Abstract]

Other Accrued and Current Liabilities

Other Accrued and Current Liabilities

Other accrued and current liabilities consisted of the following (in thousands):

	March 31, 2026		December 31, 2025
Accrued service fees	$	4,007	$	3,213
Clinical studies	2,718		2,674
Self-insurance liability	2,333		—
ESPP contributions	296		924
Other	1,337		2,126
Total	$	10,691	$	8,937

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Long-Term Debt

3 Months Ended

Mar. 31, 2026

Debt Disclosure [Abstract]

Long-Term Debt

Long-Term Debt

Our long-term debt is presented in the table below (in thousands):

	March 31, 2026		December 31, 2025
Term debt	$	10,200	$	10,200
Unamortized discount	(134)		(143)
Total debt, net	10,066		10,057
Less: Current portion of long-term debt	(1,667)		(417)
Total long-term debt	$	8,399	$	9,640

Future maturities of principal amounts on long-term debt as of March 31, 2026 were as follows (in thousands):

Years Ending December 31,
2026	$	417
2027	5,000
2028	4,583
Total	$	10,000

2024 Loan and Security Agreement

On March 26, 2024 (the “Closing Date”), we entered into a Loan and Security Agreement, as amended in April 2025 (the “2024 LSA”), by and between us, our wholly owned subsidiary, Castle Narnia Real Estate Holding 1, LLC and Silicon Valley Bank, a division of First-Citizens Bank & Trust Company (the “Lender”). The 2024 LSA provides for (i) a term loan in the principal amount of $10.0 million, which was drawn on the Closing Date (the “2024 Term Loan”), and (ii) a $25.0 million line of credit which expired undrawn on September 30, 2025.

The obligations under the 2024 LSA are secured by substantially all of our assets, excluding intellectual property, the real property held by us, and are subject to certain other exceptions and limitations. We have the right to prepay the 2024 LSA in whole. Amounts repaid may not be reborrowed.

The 2024 LSA contains customary conditions of borrowing, events of default and covenants, including covenants that restrict our ability to dispose of assets, merge with or acquire other entities, incur indebtedness and make distributions to holders of our capital stock. Should an event of default occur, including the occurrence of a material adverse change, we could be liable for immediate repayment of all obligations under the 2024 LSA. Should we seek to further amend the terms of the 2024 LSA, the consent of the Lender would be required. As of March 31, 2026, we were in compliance with all of the covenants.

The 2024 LSA bears interest at a floating rate equal to the greater of (a) the WSJ Prime Rate plus 0.25% or (b) 6.00% per annum. The 2024 Term Loan was interest-only from the Closing Date through November 30, 2025, however, on August 26, 2025, we elected to exercise our option to extend the interest-only period to December 1, 2026. Beginning in December 2026, the principal payments will be made in equal monthly installments through the maturity date of November 1, 2028.

In addition, we are required to make a final payment equal to 2.00% of the aggregate original principal amounts of the 2024 Term Loan, due at maturity or upon full repayment.

2024 Term Loan

On the Closing Date, we drew $10.0 million under the 2024 Term Loan. We are obligated to make a final payment of $0.2 million under the terms of the 2024 LSA final payment provisions. A discount on debt equal to this obligation was recorded on the draw date and is being amortized as additional interest expense using the effective interest method over the term of the debt. As of March 31, 2026, no payment on principal has been made and the weighted-average effective interest rate for all outstanding debt under the 2024 Term Loan was 7.69%.

Interest Expense on Long-Term Debt

Interest expense on long-term debt consisted of the following (in thousands):

	Three Months Ended March 31,
	2026		2025
Interest expense on long term debt	$	184	$	202
Less: Capitalized interest	(58)		(194)
Total	$	126	$	8

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Leases

3 Months Ended

Mar. 31, 2026

Leases [Abstract]

Leases

Leases

Unit 1 Pittsburgh Lease

On March 19, 2026, we entered into a lease agreement with Faros ACA RE, LLC for approximately 21,000 square feet of additional office and laboratory space in Pittsburgh, Pennsylvania within a building we already partially occupy (the “Unit 1 Pittsburgh Lease”). The lease has an initial term of approximately 11 years and will commence upon completion of landlord-provided leasehold improvements. The lease includes tenant improvement allowances and provides for an extension option and a one-time early termination option, each subject to certain conditions.

As of March 31, 2026, the Unit 1 Pittsburgh Lease has not commenced, and accordingly, we have not recognized a right-of-use asset or lease liability in our condensed consolidated balance sheet.

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Fair Value Measurements

3 Months Ended

Mar. 31, 2026

Fair Value Disclosures [Abstract]

Fair Value Measurements

Fair Value Measurements

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market in an orderly transaction between market participants at the measurement date. The fair value hierarchy prioritizes the inputs to valuation techniques used in measuring fair value. There are three levels to the fair value hierarchy based on the reliability of inputs, as follows:

Level 1 – Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets.

Level 2 – Inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly.

Level 3 – Unobservable inputs in which little or no market data exists, therefore requiring us to develop our own assumptions.

Financial instruments measured at fair value are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. Our assessment of the significance of a particular input to the fair value measurement in its entirety requires management to make judgments and consider factors specific to the asset or liability. For equity securities traded on foreign exchanges, fair values are determined based on quoted market prices in the applicable foreign markets and are remeasured into U.S. dollars using exchange rates in effect at each balance sheet date in accordance with ASC Topic 830, Foreign Currency Matters. The use of different assumptions, exchange rates, and/or estimation methodologies may have a material effect on estimated fair values. Accordingly, the fair value estimates disclosed, or amounts recorded, may not be indicative of the amount that we or holders of the instruments could realize in a current market exchange.

The tables below provide information, by level within the fair value hierarchy, of our financial assets and liabilities that are accounted for at fair value on a recurring basis as of March 31, 2026 and December 31, 2025 (in thousands):

	As of March 31, 2026
	Quoted Prices in Active Markets for Identical Items (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
Assets
Money market funds(1)	$	68,684	$	—	$	—	$	68,684
U.S. government securities - AFS(2)	$	184,194	$	—	$	—	$	184,194
Equity securities(2)	$	8,130	$	—	$	—	$	8,130
Liabilities
Term Debt(3)(4)	$	—	$	10,066	$	—	$	10,066

	As of December 31, 2025
	Quoted Prices in Active Markets for Identical Items (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
Assets
Money market funds(1)	$	108,914	$	—	$	—	$	108,914
U.S. government securities - AFS(2)	$	171,631	$	—	$	—	$	171,631
Equity securities(2)	$	5,555	$	—	$	—	$	5,555
Liabilities
Term Debt(3)(4)	$	—	$	10,057	$	—	$	10,057

(1)Classified as “Cash and cash equivalents” in the condensed consolidated balance sheets.

(2)Classified as “Marketable investment securities” in the condensed consolidated balance sheets.

(3)Classified as “Current portion of long-term debt” and “Long term debt” in the condensed 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.

The Convertible Loan Receivable with SciBase is carried at amortized cost which approximates fair value due to the variable interest rate and market-based terms of the instrument. Fair value is estimated using a discounted cash flow model. The inputs used to fair value the Convertible Loan Receivable are classified as Level 2 in the fair value hierarchy and include a three-month STIBOR and a market credit spread. For additional information on the carrying amount and estimated fair value of our Convertible Loan Receivable, see Note 2.

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Commitments and Contingencies

3 Months Ended

Mar. 31, 2026

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

Commitments and Contingencies

From time to time, we may be involved in legal proceedings arising in the ordinary course of business. 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 the date of issuance of the subpoena. 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 of Health and Human Services, Office of Inspector General, or any other governmental authority as a result of the matters related to this subpoena. No claims have been made against us at this time. Any potential claims could subject us to significant liability for damages and harm our reputation. Our insurance and indemnities may not cover all claims that may be asserted against us. We are unable to predict the outcome and are unable to make a meaningful estimate of the amount or range of loss, if any, that could result from any unfavorable outcome.

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Stock Incentive Plans and Stock-Based Compensation

3 Months Ended

Mar. 31, 2026

Share-Based Payment Arrangement [Abstract]

Stock Incentive Plans and Stock-Based Compensation

Stock Incentive Plans and Stock-Based Compensation

Equity Incentive Plan

On July 24, 2019, we adopted the 2019 Equity Incentive Plan (the “2019 Plan”). The 2019 Plan provides for automatic annual increases to the number of shares authorized for issuance, equal to 5% of our common shares outstanding as of the immediately preceding year end, through January 1, 2029. Under this provision, effective January 1, 2026, an additional 1,484,315 shares became available under the 2019 Plan. As of March 31, 2026, 1,590,533 shares remained available for grant under the 2019 Plan.

Inducement Plan

On December 22, 2022, our board of directors approved the 2022 Inducement Plan (the “Inducement Plan”). The Inducement Plan provides for the granting of awards as inducement material to the grantee’s entering into employment with us to the extent such grantee was not previously an employee of ours or is entering into employment following a bona fide period of non-employment with us. As of March 31, 2026, there were 746,182 shares available for grant under the amended Inducement Plan.

Stock Options

Stock option activity under our stock plans for the three months ended March 31, 2026 is set forth below:

		Weighted-Average
	Stock Options Outstanding	Exercise Price		Remaining Contractual Term (Years)	Aggregate Intrinsic Value (in thousands)
Balance as of December 31, 2025	2,784,432	$	36.53
Granted	—	$	—
Exercised	(28,494)	$	11.30
Forfeited/Cancelled	(12,590)	$	53.51
Balance as of March 31, 2026	2,743,348	$	36.71	4.3	$	9,262
Exercisable as of March 31, 2026	2,740,690	$	36.72	4.3	$	9,262

Restricted Stock Units

The following table summarizes our RSU activity for the three months ended March 31, 2026:

	Restricted Stock Units Outstanding	Weighted-Average Grant Date Fair Value
Balance as of December 31, 2025	3,395,762	$	22.42
Granted	1,268,848	$	27.57
Vested(1)	(628,644)	$	22.12
Forfeited/Cancelled	(52,647)	$	24.21
Balance as of March 31, 2026	3,983,319	$	24.08

(1)The aggregate number of shares withheld upon vesting for employee tax obligations was 201,867 for the three months ended March 31, 2026.

Performance-Based Restricted Stock Units

The following table summarizes our PSU activity for the three months ended March 31, 2026:

	Performance-Based Restricted Stock Units Outstanding	Weighted-Average Grant Date Fair Value
Balance as of December 31, 2025	350,144	$	21.72
Granted	172,397	$	27.57
Vested(1)	(88,757)	$	21.23
Forfeited/Cancelled	—	$	—
Balance as of March 31, 2026	433,784	$	24.15

(1)The aggregate number of shares withheld upon vesting for employee tax obligations was 28,797 for the three months ended March 31, 2026.

Employee Stock Purchase Plan

The ESPP provides for certain automatic increases in the number of shares of common stock reserved for issuance, which resulted in an additional 296,863 shares becoming available under the ESPP effective January 1, 2026. During the three months ended March 31, 2026, we issued 94,420 shares of common stock pursuant to scheduled purchases under the ESPP. As of March 31, 2026, 1,373,056 shares remained available for issuance under the ESPP.

Determining Fair Value - Summary of Assumptions

The following table sets forth assumptions used to determine the fair value of the purchase rights issued under the ESPP:

	Three Months Ended March 31,
	2026	2025
Average expected term (years)	1.2	1.2
Expected stock price volatility	54.54% - 58.00%	56.55% - 85.21%
Risk-free interest rate	3.41% - 3.61%	3.88% - 4.22%
Dividend yield	—%	—%

We use the closing price of our common stock on the date of grant to determine the fair value of RSUs and PSUs.

Fair Value

There were no stock options granted for the three months ended March 31, 2026 and 2025. For the three months ended March 31, 2026 and 2025, the weighted-average grant date fair value of the purchase rights granted under the ESPP was $11.27 and $9.43 per share, respectively.

Stock-Based Compensation Expense

Stock-based compensation expense is included in the condensed consolidated statements of operations as follows (in thousands):

	Three Months Ended March 31,
	2026		2025
Cost of sales (exclusive of amortization of acquired intangible assets)	$	1,257	$	1,456
Research and development	1,443		1,895
Selling, general and administrative	7,076		7,828
Total stock-based compensation expense	$	9,776	$	11,179

Included in total stock-based compensation expense is $0.2 million and $0.3 million for the three months ended March 31, 2026 and 2025, respectively, from the accelerated recognition of expense for modifications of awards falling in scope of the Retirement Policy.

As of March 31, 2026, the total unrecognized stock-based compensation cost related to outstanding awards was $94.5 million, which is expected to be recognized over a weighted-average period of 2.8 years. The total unrecognized compensation cost will be adjusted for forfeitures in future periods as they occur.

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Income Taxes

3 Months Ended

Mar. 31, 2026

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

Our effective tax rate was immaterial for the three months ended March 31, 2026 and 2025.

The effective rate for the three months ended March 31, 2026 and 2025 differed from our federal statutory rate of 21% 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.

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Segment and Related Information

3 Months Ended

Mar. 31, 2026

Segment Reporting [Abstract]

Segment and Related Information

Segment and Related Information

We derive revenues through the delivery of test reports for our molecular diagnostic tests. All of our operations are located within the U.S. and our business is focused on the U.S. market.

We have a single reportable segment consisting of a single operating segment.

The measures of segment profit or loss for our single reportable segment were as follows (in thousands):

	Three Months Ended March 31,
	2026		2025
Net revenues from external customers(1)	$	83,679	$	87,988
Significant segment expenses:
Personnel costs	58,367		52,200
Organizational and marketing costs	15,594		14,229
Inventory usage	6,437		4,731
Clinical studies and publication costs	2,542		2,085
Professional services	3,007		3,576
Other segment items	12,254		37,015
Segment loss	$	(14,522)	$	(25,848)

(1)For information on disaggregation of segment revenue by type and information about payor concentration, see Note 3.

Other Segment Items

Other segment items include all other operating expenses types, including 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 equity securities, realized gains or losses on investment securities, administrative costs, expense for use of prepaids, including insurance premiums and warranties for lab equipment, public company costs (less audit fees), interest and other non-operating loss or 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 profit or loss were as follows (in thousands):

	Three Months Ended March 31,
	2026		2025
Interest income	$	2,545	$	3,099
Interest expense	(134)		(17)
Depreciation and amortization	3,929		29,764
Income tax expense (benefit)	109		(423)
Stock-based compensation expense	9,776		11,179
Net gains (losses) on equity securities	2,022		(1,425)

Total assets for our reportable segment were located in the U.S. and were $547.8 million and $578.6 million as of March 31, 2026 and December 31, 2025, respectively. Expenditures for additions to long-lived assets were $5.2 million and $5.7 million for the three months ended March 31, 2026, and 2025, respectively.

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Insider Trading Arrangements

3 Months Ended

Mar. 31, 2026

shares

Trading Arrangements, by Individual

Non-Rule 10b5-1 Arrangement Adopted

false

Rule 10b5-1 Arrangement Terminated

false

Non-Rule 10b5-1 Arrangement Terminated

false

Frank Stokes [Member]

Trading Arrangements, by Individual

Material Terms of Trading Arrangement

On March 9, 2026, Frank Stokes, our Chief Financial Officer, adopted a Rule 10b5-1 trading arrangement providing for the sale from time to time of an aggregate of up to 29,421 shares of our common stock. The trading arrangement is intended to satisfy the affirmative defense in Rule 10b5-1(c). The duration of the trading arrangement is estimated to be from June 8, 2026 until the earlier of all transaction under the trading arrangement being completed or June 30, 2026.

Name

Frank Stokes

Title

Chief Financial Officer

Rule 10b5-1 Arrangement Adopted

true

Adoption Date

March 9, 2026

Expiration Date

June 30, 2026

Arrangement Duration

22 days

Aggregate Available

29,421

XML

Summary of Significant Accounting Policies (Policies)

3 Months Ended

Mar. 31, 2026

Accounting Policies [Abstract]

Basis of Presentation

Our unaudited condensed consolidated financial statements include the accounts of Castle Biosciences, Inc. and our wholly owned subsidiaries and have been prepared in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”).

Consolidation

All intercompany accounts and transactions have been eliminated in consolidation.

Use of Estimates

The preparation of condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Significant items subject to such estimates include revenue recognition, the valuation of stock-based compensation, assessing future tax exposure and the realizability of deferred tax assets, the useful lives and recoverability of long-lived assets, the goodwill impairment test, the valuation of acquired intangible assets, the valuation of contingent consideration, and other contingent liabilities. We base these estimates on historical and anticipated results, trends, and various other assumptions that we believe are reasonable under the circumstances, including assumptions as to future events. These estimates form the basis for making judgments about the carrying values of assets and liabilities and recorded revenues and expenses that are not readily apparent from other sources. Actual results could differ from those estimates and assumptions.

Segment Reporting

Operating segments are components of an enterprise engaging in business activities from which it may recognize revenues and incur expenses, where discrete financial information is available, and where its operating results are regularly reviewed by the public entity’s chief operating decision maker (“CODM”) to make decisions about resources to be allocated to the segment and to assess its performance. A CODM may be an individual or a decision-making group. A reportable segment consists of one or more operating segments.

Cash and Cash Equivalents

Cash equivalents consist of short-term, highly liquid investments with original maturities of three months or less. Our cash equivalents consist of money market funds, which are not insured by the Federal Deposit Insurance Corporation (“FDIC”), that are primarily invested in short-term United States (“U.S.”) government obligations.

Concentration of Credit Risk

Cash deposits at financial institutions may exceed the amount of insurance provided by the FDIC. Management believes that we are not exposed to significant credit risk on our cash deposits due to the financial position of the financial institutions in which deposits are held.

Marketable Investment Securities

Our marketable investment securities are comprised of debt and equity securities. All debt securities are recognized in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 320, Investments-Debt Securities (“ASC 320”). Management determines the appropriate classification of debt securities at the time of purchase and re-evaluates such determination at each balance sheet date. Debt securities that are classified as available-for-sale (“AFS”) are recorded at fair value in accordance with ASC 320. We recognize the unrealized gains and losses related to changes in fair value as a separate component of accumulated other comprehensive income within total stockholders’ equity, net of any related deferred income tax effects, on the condensed consolidated balance sheets. Debt securities that are classified as held-to-maturity (“HTM”) are reported at amortized cost in accordance with ASC 320. Premiums or discounts from par value are amortized to interest income over the life of the underlying investment and are included in interest income in the condensed consolidated statements of operations. Realized gains and losses on AFS and HTM debt securities, if any, are calculated at the individual security level and included in interest income in the condensed consolidated statements of operations. Impairments of AFS or HTM debt securities, if any, are recorded in the condensed consolidated statements of operations. See Notes 5 and 11 for further details.

Our equity securities consist of investments in shares of common stock which are listed and traded on the Nasdaq Global Market and certain foreign exchanges. All equity securities are recognized in accordance with ASC Topic 321, Investments-Equity Securities (“ASC 321”) and reported at their readily determinable fair values based on quoted market prices where changes in fair value are included in net gains (losses) on equity securities in the condensed consolidated statements of operations. For investments denominated in a foreign currency, the fair value is remeasured into U.S. dollars using exchange rates in effect at each balance sheet date in accordance with ASC Topic 830, Foreign Currency Matters (“ASC 830”). As a result, changes in fair value include the effects of both market price movements and foreign currency exchange rate fluctuations. All changes in a marketable security’s fair value are reported in earnings as they occur, and the sale of our equity securities does not necessarily give rise to a significant gain or loss. Investments in equity securities are classified as either current or long-term depending upon management’s intentions. We updated our terminology to refer to these investments as equity securities rather than trading securities to align with the terminology in ASC 321.

Contingent Consideration

Under the terms of business combinations or asset acquisitions, we may be required to pay additional consideration if specified future events occur or certain conditions are met. In May 2025, we acquired Capsulomics, Inc., d/b/a Previse (“Previse”), which was recorded as an asset acquisition, and agreed to pay additional consideration of up to $2.5 million in cash based on the achievement of certain commercial milestones (the “Earnout Payments”). We account for the contingent consideration as a liability in accordance with ASC 450-20, Loss Contingencies (“ASC 450-20”) when it is both probable and reasonably estimable. In accordance with ASC 450-20, we recorded the contingent consideration at the amount required to settle the respective obligation, and subsequent changes are recognized as adjustments to the cost basis of the acquired assets. These changes are allocated to the acquired assets based on their relative fair values as of the date of acquisition. In December 2025 and March 2026, two commercial milestones were achieved, resulting in aggregate Earnout Payments of $1.0 million becoming payable. The payment related to the initial milestone was extended. Both earnout payments are expected to be made within 60 days following the end of the period.

Contingent consideration is classified as current or noncurrent in the condensed consolidated balance sheets based on the contractual timing of future settlement.

Revenue Recognition

In accordance with ASC Topic 606, Revenue from Contracts with Customers (“ASC 606”), we follow a five-step process to recognize revenues: (1) identify the contract with the customer, (2) identify the performance obligations, (3) determine the transaction price, (4) allocate the transaction price to the performance obligations and (5) recognize revenues when the performance obligations are satisfied. We have determined that we have a contract with the patient when the treating clinician orders the test. Our contracts generally contain a single performance obligation, which is the delivery of the test report, and we satisfy our performance obligation at a point in time upon the delivery of the test report to the treating clinician, at which point we can bill for the report. The amount of revenue recognized reflects the amount of consideration to which we expect to be entitled, or the transaction price, and considers the effects of variable consideration.

Collaborative Arrangements

We assess whether our licensing and other agreements are collaborative arrangements based on whether they involve joint operating activities and whether both parties have active participation in the arrangement and are exposed to significant risks and rewards. For arrangements that we determine are collaborations, we identify each unit of account and then determine whether a customer relationship exists for that unit of account. If we determine that a performance obligation within the collaborative arrangement is with a customer, we apply ASC 606.

If a portion of a distinct bundle of goods or services within the collaborative arrangement is not with a customer, we apply recognition and measurement based on an analogy to authoritative accounting literature or, if there is no appropriate analogy, a reasonable, rational, and consistently applied accounting policy election. To the extent the arrangement is within the scope of ASC Topic 808, Collaborative Arrangements (“ASC 808”), we assess whether aspects of the arrangement are within the scope of other accounting literature.

In June 2025, we entered into a Collaboration and License Agreement with SciBase Holding AB (“SciBase”). Following approval under the Swedish Screening of Foreign Direct Investments Act in the third quarter of 2025, we completed our investment in SciBase. The agreement aims to jointly develop diagnostic tests for dermatologic diseases, initially focused on atopic dermatitis, by combining SciBase’s Electrical Impedance Spectroscopy technology with our diagnostic and development expertise. Under the arrangement, we hold development and commercialization rights in North America, while SciBase retains rights in certain other territories. SciBase is entitled to royalties on our product sales, a mark-up on product sales to us, and a milestone payment upon achieving specified sales thresholds. Development costs are shared; however, SciBase deferred its initial clinical development costs for the initial indication and we will recover those costs through future royalty payments reductions.

We determined the agreement is a collaborative arrangement under ASC 808. Certain elements of the arrangement, including license rights and sales-based royalty provisions, represent transactions with a customer and are therefore accounted for under ASC 606. Other elements, such as shared development activities and cost reimbursements, are accounted for in accordance with ASC 808 and presented as reductions to research and development (“R&D”) expenses.

Accounts Receivable

We classify accounts receivable balances that are expected to be paid more than one year from the condensed consolidated balance sheet date as noncurrent assets. The estimated timing of payment utilized as a basis for classification as noncurrent is determined by analyses of historical payor-specific payment experience, adjusted for known factors that are expected to change the timing of future payments.

Allowance for Credit Losses

We accrue an allowance for credit losses against our accounts receivable based on management’s current estimate of amounts that will not be collected. We have elected the practical expedient under ASC Topic 326, Financial Instruments - Credit Losses (“ASC 326”) to assume that current conditions as of the balance sheet date do not change for the remaining life of our accounts receivable. Accordingly, management’s estimates are based on historical loss information adjusted for current conditions. We generally do not perform evaluations of customers’ financial condition and generally do not require collateral. Historically, our credit losses have not been significant. The allowance for credit losses was zero as of March 31, 2026 and December 31, 2025. Adjustments for implicit price concessions attributable to variable consideration, as discussed below, are incorporated into the measurement of the accounts receivable balances and are not part of the allowance for credit losses.

Convertible Loan Receivable

We accounted for the convertible loan as a receivable within the scope of ASC Topic 310, Receivables. The carrying amount of the convertible loan is presented at amortized cost, within other assets - long-term in the condensed consolidated balance sheets. The Convertible Loan Agreement is remeasured into U.S. dollars using exchange rates in effect at each balance sheet date in accordance with ASC 830 with changes in exchange rates recognized in earnings. In addition, the embedded conversion feature to shares of SciBase did not meet the definition of a derivative and was not bifurcated from the host contract under ASC Topic 815, Derivatives and Hedging. We have determined that expected credit losses associated with the loan are insignificant and, accordingly, have not recorded a credit loss allowance under ASC Topic 326-20, Financial Instruments - Credit Losses.

Interest income on the Convertible Loan Receivable is recognized quarterly and included in interest income in the condensed consolidated statements of operations. Accrued interest receivable is recorded within prepaid expenses and other current assets in the condensed consolidated balance sheets.

Property and Equipment

Property and equipment are stated at cost, less accumulated depreciation and amortization. Depreciation is computed using the straight-line method over the estimated useful lives of the related assets, generally ranging from 5 to 39 years. Leasehold improvements are amortized on a straight-line basis over the shorter of the estimated useful life of the asset or the term of the lease. Leasehold improvements primarily relate to office and laboratory facilities in Phoenix, Arizona and Pittsburgh, Pennsylvania, and are generally depreciated over the remaining lease terms, which expire in 2034 and 2033, respectively.

Maintenance and repairs are expensed as incurred, and material improvements are capitalized. Interest costs incurred during the construction of major capital projects are capitalized until the underlying asset is ready for its intended use, at which point the capitalized interest costs are amortized using the straight-line method over the estimated useful life of the underlying asset. When assets are retired or otherwise disposed of, the cost and accumulated depreciation are removed from the condensed consolidated balance sheets and any resulting gain or loss is reflected in the condensed consolidated statements of operations in the period realized.

Goodwill

Goodwill represents the excess of the purchase price over the fair value of the net tangible and intangible assets acquired in a business combination. Goodwill is not amortized, but is tested for impairment. We test goodwill for impairment in the fourth quarter of each fiscal year and when events, or changes in circumstances, indicate that it may be impaired. Events and changes in circumstances indicating that goodwill may be impaired include sustained declines in the price of our common stock, increased competition, changes in macroeconomic developments, unfavorable government or regulatory developments and changes in coverage or reimbursement conditions.

Goodwill is tested for impairment at the reporting unit level where goodwill is held. Testing begins with completion of an optional qualitative assessment. If the qualitative assessment suggests that impairment is more likely than not, quantitative testing is conducted. If the qualitative assessment is bypassed, we proceed directly to quantitative testing. Quantitative testing consists of comparing the carrying value of goodwill to its estimated fair value. Impairment of goodwill is the condition that exists when the carrying value exceeds its fair value. Amounts by which carrying value exceed fair value, up to the total amount of goodwill allocated to the reporting unit, are recognized as an impairment loss in the condensed consolidated statements of operations.

Accrued Compensation

We accrue for liabilities under discretionary employee and executive bonus plans. Our estimated compensation liabilities are based on progress against corporate objectives approved by our board of directors, compensation levels of eligible individuals and target bonus percentage levels. Our board of directors reviews and evaluates the performance against these objectives and ultimately determines the actual achievement levels attained. We also accrue for liabilities under employee sales incentive bonus plans with accruals based on performance achieved to date compared to established targets. As of March 31, 2026 and December 31, 2025, we accrued approximately $7.9 million and $28.1 million, respectively, for liabilities associated with these bonus plans. These amounts are classified as current accrued liabilities in the condensed consolidated balance sheets based on the expected timing of payment.

Stock-Based Compensation

Stock-based compensation expense for equity instruments is measured based on the grant-date fair value of the awards. For stock option awards, and purchase rights made under the 2019 Employee Stock Purchase Plan (the “ESPP”), the fair value is estimated on the date of grant using the Black-Scholes option-pricing valuation model. For restricted stock units (“RSUs”) and performance-based restricted stock units (“PSUs”), the fair value is equal to the closing price of our common stock on the date of grant. For awards with graded vesting and only service conditions, we recognize compensation costs on a straight-line basis over the requisite service period of the awards. For stock options and RSUs, the requisite service period is generally the award’s vesting period (typically four years). PSUs vest upon the achievement of certain performance conditions and the provision of service with us through a specified period. Accruals of compensation cost for PSUs are based on the probable outcome of the performance conditions and are reassessed each reporting period. We recognize compensation cost for PSUs separately for each vesting tranche on a ratable basis over the requisite service period. The requisite service period for PSUs is based on an analysis of vesting requirements and performance conditions for the particular award. Certain employees are entitled to acceleration of vesting of a portion of their awards upon retirement, subject to age, service and notice requirements (“Retirement Policy”). Stock-based awards falling into the scope of the Retirement Policy are accounted for as a modification of existing awards under ASC Topic 718, Compensation – Stock Compensation. The modifications do not result in the recognition of incremental compensation cost; however, they do result in a new estimate of the requisite service period, which we reassess at each balance sheet date. For the ESPP, the requisite service period is generally the period of time from the offering date to the purchase date. Forfeitures are accounted for as they occur.

Comprehensive Loss

Comprehensive loss is defined as a change in equity during a period from transactions and other events and circumstances from non-owner sources. Comprehensive loss is made up of net loss plus net unrealized loss on marketable investment securities, which is our only other item of other comprehensive loss.

Recently Adopted Accounting Pronouncements and Accounting Pronouncements Yet to be Adopted

Recently Adopted Accounting Pronouncements

In July 2025, the FASB issued ASU No. 2025-05, Financial Instruments—Credit Losses (Topic 326): Practical Expedient for Certain Current Receivables (“ASU 2025-05”), which provides a practical expedient for estimating expected credit losses on current accounts receivable and contract assets arising from transactions under ASC 606. The practical expedient allows entities to assume that current conditions remain unchanged over the remaining life of the receivables. ASU 2025-05 is effective for annual periods beginning after December 15, 2025, including interim periods within those annual periods. We adopted the standard effective January 1, 2026, with no impact on our consolidated financial statements.

Accounting Pronouncements Yet to be Adopted

In November 2024, the FASB issued ASU No. 2024-03, Income Statement—Reporting Comprehensive Income (Subtopic 220-40)—Expense Disaggregation Disclosures: Disaggregation of Income Statement Expenses (“ASU 2024-03”), which specifies additional disclosure requirements. The amendments in ASU 2024-03 require disclosure about the composition of certain income expense line items, such as purchases of inventory, employee compensation, and other expenses, as well as disclosure about selling expenses. The ASU is effective for fiscal years beginning after December 15, 2026, and interim periods beginning after December 15, 2027. Early adoption is permitted. We are currently evaluating the impact this update will have on the consolidated financial statements and disclosures.

In September 2025, the FASB issued ASU No. 2025-06, Intangibles—Goodwill and Other-Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software (“ASU 2025-06”), which modernizes the accounting for internal-use software costs. The amendments in ASU 2025-06 remove all references to prescriptive and sequential software development stages throughout ASC 350-40. The ASU is effective for annual periods beginning after December 15, 2027, including interim periods within those annual periods. Early adoption is permitted. We are currently evaluating the impact this update will have on the consolidated financial statements and disclosures.

We have evaluated all other recently issued, but not yet effective, accounting pronouncements and do not believe that these accounting pronouncements will have any material impact on the consolidated financial statements or disclosures upon adoption.

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Revenue (Tables)

3 Months Ended

Mar. 31, 2026

Revenue from Contract with Customer [Abstract]

Schedule of Disaggregation of Revenue

The table below provides the disaggregation of revenue by type (in thousands):

	Three Months Ended March 31,
	2026		2025
Dermatologic(1)	$	41,105	$	62,962
Non-Dermatologic(2)	42,574		25,026
Total net revenues	$	83,679	$	87,988

(1)Consists of DecisionDx-Melanoma, DecisionDx-SCC and MyPath Melanoma.

(2)Consists of TissueCypher, DecisionDx-UM and IDgenetix.

Schedule of Concentration of Risk, by Risk Factor

Our significant third-party payors and their related revenues, each of which accounted for more than 10% of total revenues and accounts receivable balances were as follows:

	Percentage of Revenues				Percentage of  Accounts Receivable  (current) as of				Percentage of  Accounts Receivable  (noncurrent) as of
	Three Months Ended March 31,
	2026		2025		March 31, 2026		December 31, 2025		March 31, 2026		December 31, 2025
Medicare	40	%	47	%	19	%	18	%	*		*
Payor A	14	%	15	%	14	%	15	%	17	%	16	%
Payor B	*		*		17	%	22	%	*		10	%

*    Less than 10%

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Loss Per Share (Tables)

3 Months Ended

Mar. 31, 2026

Earnings Per Share [Abstract]

Schedule of Antidilutive Securities Excluded from Computation of Earnings (Loss) Per Share

The table below provides the weighted-average number of potential common shares associated with outstanding securities not included in our calculation of diluted loss per share for the three months ended March 31, 2026 and 2025 because to do so would be antidilutive or, in the case of PSUs, the applicable performance conditions have not yet been met (in thousands):

	Three Months Ended March 31,
	2026	2025
Stock options	2,769	2,983
RSUs and PSUs	3,946	3,739
ESPP	256	176
Total	6,971	6,898

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Marketable Investment Securities (Tables)

3 Months Ended

Mar. 31, 2026

Investments, Debt and Equity Securities [Abstract]

Schedule of Marketable Securities

Marketable investment securities consisted of the following (in thousands):

	March 31, 2026		December 31, 2025
Current marketable investment securities:
Equity securities	$	8,130	$	5,555
Debt securities - AFS	184,194		171,631
Debt securities - HTM	5,597		5,590
Total current marketable investment securities	$	197,921	$	182,776

Unrealized Gains and Losses on Equity Securities

The portion of unrealized gains and losses related to equity securities still held during the period is as follows (in thousands):

	Three Months Ended March 31,
	2026		2025
Net gains (losses) on equity securities	$	2,022	$	(1,425)
Less: Net loss recognized on equity securities sold	(127)		—
Net unrealized gains (losses) recognized on equity securities still held	$	2,149	$	(1,425)

Schedule of Debt Securities, Available-for-Sale and Held-to-Maturity

The following tables present our debt securities (in thousands):

	March 31, 2026
	Amortized Cost		Unrealized				Estimated Fair Value
			Gains		Losses
U.S. government securities - AFS	$	184,257	$	60	$	(123)	$	184,194
U.S. government securities - HTM	5,597		2		—		5,599
Total debt securities	$	189,854	$	62	$	(123)	$	189,793

	December 31, 2025
	Amortized Cost		Unrealized				Estimated Fair Value
			Gains		Losses
U.S. government securities - AFS	$	171,364	$	269	$	(2)	$	171,631
U.S. government securities - HTM	5,590		11		—		5,601
Total debt securities	$	176,954	$	280	$	(2)	$	177,232

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Property and Equipment, Net (Tables)

3 Months Ended

Mar. 31, 2026

Property, Plant and Equipment [Abstract]

Schedule of Property and Equipment, Net

Property and equipment, net consisted of the following (in thousands):

	March 31, 2026		December 31, 2025
Land	$	7,245	$	7,245
Building	43,872		—
Lab equipment	33,602		33,034
Leasehold improvements	14,875		14,834
Computer equipment	6,372		5,920
Furniture and fixtures	4,081		3,648
Construction-in-progress	10,751		51,059
Total	120,798		115,740
Less: Accumulated depreciation	(19,864)		(18,297)
Property and equipment, net	$	100,934	$	97,443

Depreciation expense was recorded in the condensed consolidated statements of operations as follows (in thousands):

	Three Months Ended March 31,
	2026		2025
Cost of sales (exclusive of amortization of acquired intangible assets)	$	1,158	$	903
Research and development	129		94
Selling, general and administrative	416		442
Total	$	1,703	$	1,439

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Goodwill and Other Intangible Assets, Net (Tables)

3 Months Ended

Mar. 31, 2026

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Other Intangible Assets, Net

Our other intangible assets, net consisted of the following (in thousands):

	March 31, 2026
	Gross carrying value		Accumulated amortization		Net		Weighted-Average Remaining Life (in years)
Developed technology	$	153,500	$	(66,920)	$	86,580	10.0
Assembled workforce	563		(487)		76		0.7
Total other intangible assets, net	$	154,063	$	(67,407)	$	86,656

	December 31, 2025
	Gross carrying value		Accumulated amortization		Net		Weighted-Average Remaining Life (in years)
Developed technology	$	153,500	$	(64,721)	$	88,779	10.3
Assembled workforce	563		(460)		103		0.9
Total other intangible assets, net	$	154,063	$	(65,181)	$	88,882

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Other Accrued and Current Liabilities (Tables)

3 Months Ended

Mar. 31, 2026

Payables and Accruals [Abstract]

Schedule of Accrued And Current Liabilities

Other accrued and current liabilities consisted of the following (in thousands):

	March 31, 2026		December 31, 2025
Accrued service fees	$	4,007	$	3,213
Clinical studies	2,718		2,674
Self-insurance liability	2,333		—
ESPP contributions	296		924
Other	1,337		2,126
Total	$	10,691	$	8,937

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Long-Term Debt (Tables)

3 Months Ended

Mar. 31, 2026

Debt Disclosure [Abstract]

Schedule of Long-term Debt Instruments

Our long-term debt is presented in the table below (in thousands):

	March 31, 2026		December 31, 2025
Term debt	$	10,200	$	10,200
Unamortized discount	(134)		(143)
Total debt, net	10,066		10,057
Less: Current portion of long-term debt	(1,667)		(417)
Total long-term debt	$	8,399	$	9,640

Schedule of Maturities of Long-Term Debt

Future maturities of principal amounts on long-term debt as of March 31, 2026 were as follows (in thousands):

Years Ending December 31,
2026	$	417
2027	5,000
2028	4,583
Total	$	10,000

Schedule of Components of Interest Expense

Interest expense on long-term debt consisted of the following (in thousands):

	Three Months Ended March 31,
	2026		2025
Interest expense on long term debt	$	184	$	202
Less: Capitalized interest	(58)		(194)
Total	$	126	$	8

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Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2026

Fair Value Disclosures [Abstract]

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis

The tables below provide information, by level within the fair value hierarchy, of our financial assets and liabilities that are accounted for at fair value on a recurring basis as of March 31, 2026 and December 31, 2025 (in thousands):

	As of March 31, 2026
	Quoted Prices in Active Markets for Identical Items (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
Assets
Money market funds(1)	$	68,684	$	—	$	—	$	68,684
U.S. government securities - AFS(2)	$	184,194	$	—	$	—	$	184,194
Equity securities(2)	$	8,130	$	—	$	—	$	8,130
Liabilities
Term Debt(3)(4)	$	—	$	10,066	$	—	$	10,066

	As of December 31, 2025
	Quoted Prices in Active Markets for Identical Items (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
Assets
Money market funds(1)	$	108,914	$	—	$	—	$	108,914
U.S. government securities - AFS(2)	$	171,631	$	—	$	—	$	171,631
Equity securities(2)	$	5,555	$	—	$	—	$	5,555
Liabilities
Term Debt(3)(4)	$	—	$	10,057	$	—	$	10,057

(1)Classified as “Cash and cash equivalents” in the condensed consolidated balance sheets.

(2)Classified as “Marketable investment securities” in the condensed consolidated balance sheets.

(3)Classified as “Current portion of long-term debt” and “Long term debt” in the condensed consolidated balance sheets.

(4)Borrowings approximate their fair value as the interest rate is variable and reflects market rates.

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Stock Incentive Plans and Stock-Based Compensation (Tables)

3 Months Ended

Mar. 31, 2026

Share-Based Payment Arrangement [Abstract]

Schedule of Share-based Payment Arrangement on Stock Option Activity

Stock option activity under our stock plans for the three months ended March 31, 2026 is set forth below:

		Weighted-Average
	Stock Options Outstanding	Exercise Price		Remaining Contractual Term (Years)	Aggregate Intrinsic Value (in thousands)
Balance as of December 31, 2025	2,784,432	$	36.53
Granted	—	$	—
Exercised	(28,494)	$	11.30
Forfeited/Cancelled	(12,590)	$	53.51
Balance as of March 31, 2026	2,743,348	$	36.71	4.3	$	9,262
Exercisable as of March 31, 2026	2,740,690	$	36.72	4.3	$	9,262

Schedule of Share-based Payment Arrangement on Restricted Stock Units

The following table summarizes our RSU activity for the three months ended March 31, 2026:

	Restricted Stock Units Outstanding	Weighted-Average Grant Date Fair Value
Balance as of December 31, 2025	3,395,762	$	22.42
Granted	1,268,848	$	27.57
Vested(1)	(628,644)	$	22.12
Forfeited/Cancelled	(52,647)	$	24.21
Balance as of March 31, 2026	3,983,319	$	24.08

(1)The aggregate number of shares withheld upon vesting for employee tax obligations was 201,867 for the three months ended March 31, 2026.

Schedule of Share-Based Payment Arrangement, Performance Shares, Activity

The following table summarizes our PSU activity for the three months ended March 31, 2026:

	Performance-Based Restricted Stock Units Outstanding	Weighted-Average Grant Date Fair Value
Balance as of December 31, 2025	350,144	$	21.72
Granted	172,397	$	27.57
Vested(1)	(88,757)	$	21.23
Forfeited/Cancelled	—	$	—
Balance as of March 31, 2026	433,784	$	24.15

(1)The aggregate number of shares withheld upon vesting for employee tax obligations was 28,797 for the three months ended March 31, 2026.

Schedule of Share-based Payment Award, ESPP, Valuation Assumptions

The following table sets forth assumptions used to determine the fair value of the purchase rights issued under the ESPP:

	Three Months Ended March 31,
	2026	2025
Average expected term (years)	1.2	1.2
Expected stock price volatility	54.54% - 58.00%	56.55% - 85.21%
Risk-free interest rate	3.41% - 3.61%	3.88% - 4.22%
Dividend yield	—%	—%

Schedule of Share-based Payment Arrangement, Expensed and Capitalized, Amount

Stock-based compensation expense is included in the condensed consolidated statements of operations as follows (in thousands):

	Three Months Ended March 31,
	2026		2025
Cost of sales (exclusive of amortization of acquired intangible assets)	$	1,257	$	1,456
Research and development	1,443		1,895
Selling, general and administrative	7,076		7,828
Total stock-based compensation expense	$	9,776	$	11,179

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Segment and Related Information (Tables)

3 Months Ended

Mar. 31, 2026

Segment Reporting [Abstract]

Schedule of Measures of Segment Profit (Loss) Income

The measures of segment profit or loss for our single reportable segment were as follows (in thousands):

	Three Months Ended March 31,
	2026		2025
Net revenues from external customers(1)	$	83,679	$	87,988
Significant segment expenses:
Personnel costs	58,367		52,200
Organizational and marketing costs	15,594		14,229
Inventory usage	6,437		4,731
Clinical studies and publication costs	2,542		2,085
Professional services	3,007		3,576
Other segment items	12,254		37,015
Segment loss	$	(14,522)	$	(25,848)

(1)For information on disaggregation of segment revenue by type and information about payor concentration, see Note 3.

Schedule of Other Amounts Included in the Measure of Segment Profit (Loss) Income

Other amounts included in the measure of segment profit or loss were as follows (in thousands):

	Three Months Ended March 31,
	2026		2025
Interest income	$	2,545	$	3,099
Interest expense	(134)		(17)
Depreciation and amortization	3,929		29,764
Income tax expense (benefit)	109		(423)
Stock-based compensation expense	9,776		11,179
Net gains (losses) on equity securities	2,022		(1,425)

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Summary of Significant Accounting Policies (Details) kr in Millions	3 Months Ended
	Mar. 31, 2026 USD ($) milestone	Dec. 31, 2025 USD ($)	Nov. 07, 2025 USD ($)	Nov. 07, 2025 SEK (kr)	May 31, 2025 USD ($)
Class of Stock [Line Items]
Accumulated deficit	$ 238,806,000	$ 224,284,000
Cash and cash equivalents	63,764,000	116,729,000
Marketable investment securities	197,921,000	182,776,000
Allowance for credit losses	0	0
Convertible loan receivable			$ 2,100,000	kr 20.0
Convertible loan receivable, basis spread on variable rate			2.00%	2.00%
Accrued bonuses	$ 7,900,000	$ 28,100,000
Stock options
Class of Stock [Line Items]
Service period	4 years
Restricted Stock Units (RSUs)
Class of Stock [Line Items]
Service period	4 years
Building
Class of Stock [Line Items]
Property and equipment, useful life	39 years
Minimum
Class of Stock [Line Items]
Property and equipment, useful life	5 years
Maximum
Class of Stock [Line Items]
Property and equipment, useful life	39 years
Capsulomics
Class of Stock [Line Items]
Additional consideration payable based on achievement of certain commercial milestones					$ 2,500,000
Number of commercial milestone achievement | milestone	2
Earnout payment of contingent consideration	$ 1,000,000.0
Contingent consideration, milestone achievement	60 days

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Revenue - Narrative (Details) $ in Millions	3 Months Ended		12 Months Ended
	Mar. 31, 2026 USD ($) segment	Mar. 31, 2025 USD ($)	Dec. 31, 2025 segment
Revenue from Contract with Customer [Abstract]
Number of days contract with customer is generally paid	30 days
Variable consideration adjustments included in revenue | $	$ (0.6)	$ 0.8
Number of reportable segments | segment	1		1

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Revenue - Schedule of Disaggregation of Revenue (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2026	Mar. 31, 2025
Disaggregation of Revenue [Line Items]
Total net revenues	$ 83,679	$ 87,988
Dermatologic
Disaggregation of Revenue [Line Items]
Total net revenues	41,105	62,962
Non-Dermatologic
Disaggregation of Revenue [Line Items]
Total net revenues	$ 42,574	$ 25,026

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Revenue - Schedule of Concentration of Risk, by Risk Factor (Details) - Third-Party Payor Concentration Risk	3 Months Ended		12 Months Ended
	Mar. 31, 2026	Mar. 31, 2025	Dec. 31, 2025
Medicare | Percentage of Revenues
Concentration Risk [Line Items]
Concentration risk percentage	40.00%	47.00%
Medicare | Percentage of Accounts Receivable (current)
Concentration Risk [Line Items]
Concentration risk percentage	19.00%		18.00%
Payor A | Percentage of Revenues
Concentration Risk [Line Items]
Concentration risk percentage	14.00%	15.00%
Payor A | Percentage of Accounts Receivable (current)
Concentration Risk [Line Items]
Concentration risk percentage	14.00%		15.00%
Payor A | Percentage of Accounts Receivable (noncurrent)
Concentration Risk [Line Items]
Concentration risk percentage	17.00%		16.00%
Payor B | Percentage of Accounts Receivable (current)
Concentration Risk [Line Items]
Concentration risk percentage	17.00%		22.00%
Payor B | Percentage of Accounts Receivable (noncurrent)
Concentration Risk [Line Items]
Concentration risk percentage			10.00%

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Loss Per Share - Schedule of Antidilutive Securities Excluded from Computation of Earnings (Loss) Per Share (Details) - shares shares in Thousands	3 Months Ended
	Mar. 31, 2026	Mar. 31, 2025
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share, amount (in shares)	6,971	6,898
Stock options
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share, amount (in shares)	2,769	2,983
RSUs and PSUs
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share, amount (in shares)	3,946	3,739
ESPP
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share, amount (in shares)	256	176

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Marketable Investment Securities - Schedule of Marketable Securities (Details) - USD ($) $ in Thousands	Mar. 31, 2026	Dec. 31, 2025
Current marketable investment securities:
Equity securities	$ 8,130	$ 5,555
Debt securities - AFS	184,194	171,631
Debt securities - HTM	5,597	5,590
Total current marketable investment securities	$ 197,921	$ 182,776

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Marketable Investment Securities - Schedule of Unrealized Gain (Loss) on Investments (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2026	Mar. 31, 2025
Investments, Debt and Equity Securities [Abstract]
Net gains (losses) on equity securities	$ 2,022	$ (1,425)
Less: Net loss recognized on equity securities sold	(127)	0
Net unrealized gains (losses) recognized on equity securities still held	$ 2,149	$ (1,425)

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Marketable Investment Securities - Schedule of Available-for-Sale Debt Securities (Details) - U.S. government securities - USD ($) $ in Thousands	Mar. 31, 2026	Dec. 31, 2025
Debt Securities, Available-for-Sale, Amortized Cost [Abstract]
Available-for-Sale, Amortized Cost, Total	$ 184,257	$ 171,364
Available-for-Sale, Unrealized Gains	60	269
Available-for-Sale, Unrealized Losses	(123)	(2)
Available-for-Sale, Estimated Fair Value	184,194	171,631
Debt Securities, Held-to-Maturity, Amortized Cost, after Allowance for Credit Loss [Abstract]
Held-to-Maturity, Amortized Cost, Total	5,597	5,590
Held-to-Maturity, Unrealized Gains	2	11
Held-to-Maturity, Unrealized Losses	0	0
Held-to-Maturity, Estimated Fair Value	5,599	5,601
Amortized Cost	189,854	176,954
Unrealized Gains	62	280
Unrealized Losses	(123)	(2)
Estimated Fair Value	$ 189,793	$ 177,232

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Marketable Investment Securities - Narrative (Details) - USD ($) shares in Millions, $ in Millions			3 Months Ended
	Jan. 26, 2026	Jan. 25, 2026	Mar. 31, 2026	Mar. 31, 2025	Dec. 31, 2025
Debt Securities, Available-for-Sale [Line Items]
Available-for-sale securities, allowance for credit loss			$ 0.0		$ 0.0
Debt securities, held-to-maturity, allowance for credit loss			0.0		0.0
Realized gain (loss) on sale of investment			0.0	$ 0.0
Impairment loss			0.0	$ 0.0
Accrued interest receivable			$ 1.3		$ 1.1
SciBase
Debt Securities, Available-for-Sale [Line Items]
Maximum shares available under subscription commitment without subscription rights (in shares)	125.0	115.0
Rights offering, subscription rights purchased (in shares)	30.5
Rights offering, total shares purchased with and without subscription rights (in shares)	155.5
Rights offering, value of total shares purchased with and without subscription rights	$ 3.6

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Property and Equipment, Net - Schedule of Property and Equipment (Details) - USD ($) $ in Thousands	Mar. 31, 2026	Dec. 31, 2025
Property, Plant and Equipment [Line Items]
Total	$ 120,798	$ 115,740
Less: Accumulated depreciation	(19,864)	(18,297)
Property and equipment, net	100,934	97,443
Land
Property, Plant and Equipment [Line Items]
Total	7,245	7,245
Building
Property, Plant and Equipment [Line Items]
Total	43,872	0
Lab equipment
Property, Plant and Equipment [Line Items]
Total	33,602	33,034
Leasehold improvements
Property, Plant and Equipment [Line Items]
Total	14,875	14,834
Computer equipment
Property, Plant and Equipment [Line Items]
Total	6,372	5,920
Furniture and fixtures
Property, Plant and Equipment [Line Items]
Total	4,081	3,648
Construction-in-progress
Property, Plant and Equipment [Line Items]
Total	$ 10,751	$ 51,059

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Property and Equipment, Net - Narrative (Details)	Mar. 31, 2026
Building
Property, Plant and Equipment [Line Items]
Property and equipment, useful life	39 years

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Property and Equipment, Net - Schedule of Depreciation Expense (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2026	Mar. 31, 2025
Property, Plant and Equipment [Line Items]
Depreciation	$ 1,703	$ 1,439
Cost of sales (exclusive of amortization of acquired intangible assets)
Property, Plant and Equipment [Line Items]
Depreciation	1,158	903
Research and development
Property, Plant and Equipment [Line Items]
Depreciation	129	94
Selling, general and administrative
Property, Plant and Equipment [Line Items]
Depreciation	$ 416	$ 442

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Goodwill and Other Intangible Assets, Net - Narrative (Details) $ in Thousands	3 Months Ended		12 Months Ended
	Mar. 31, 2026 USD ($) segment reporting_unit	Mar. 31, 2025 USD ($)	Dec. 31, 2025 USD ($) segment reporting_unit
Finite-Lived Intangible Assets [Line Items]
Number of reportable segments | segment	1		1
Number of operating segments | segment	1		1
Number of reporting units | reporting_unit	1		1
Goodwill	$ 10,700		$ 10,700
Goodwill accumulated impairment	0		$ 0
Amortization of acquired intangible assets	$ 2,226	$ 28,325
Developed Technology Rights, IDGenetix
Finite-Lived Intangible Assets [Line Items]
Amortization of acquired intangible assets		$ 20,100

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Goodwill and Other Intangible Assets, Net - Schedule of Other Intangible Assets, Net (Details) - USD ($) $ in Thousands	Mar. 31, 2026	Dec. 31, 2025
Finite-Lived Intangible Assets [Line Items]
Gross carrying value	$ 154,063	$ 154,063
Accumulated amortization	(67,407)	(65,181)
Net	86,656	88,882
Developed technology
Finite-Lived Intangible Assets [Line Items]
Gross carrying value	153,500	153,500
Accumulated amortization	(66,920)	(64,721)
Net	$ 86,580	$ 88,779
Weighted-Average Remaining Life (in years)	10 years	10 years 3 months 18 days
Assembled workforce
Finite-Lived Intangible Assets [Line Items]
Gross carrying value	$ 563	$ 563
Accumulated amortization	(487)	(460)
Net	$ 76	$ 103
Weighted-Average Remaining Life (in years)	8 months 12 days	10 months 24 days

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Other Accrued and Current Liabilities (Details) - USD ($) $ in Thousands	Mar. 31, 2026	Dec. 31, 2025
Payables and Accruals [Abstract]
Accrued service fees	$ 4,007	$ 3,213
Clinical studies	2,718	2,674
Self-insurance liability	2,333	0
ESPP contributions	296	924
Other	1,337	2,126
Total	$ 10,691	$ 8,937

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Long-Term Debt - Schedule of Long-term Debt Instruments (Details) - USD ($) $ in Thousands	Mar. 31, 2026	Dec. 31, 2025
Debt Disclosure [Abstract]
Term debt	$ 10,200	$ 10,200
Unamortized discount	(134)	(143)
Total debt, net	10,066	10,057
Less: Current portion of long-term debt	(1,667)	(417)
Total long-term debt	$ 8,399	$ 9,640

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Long-Term Debt - Schedule of Maturities of Long-Term Debt (Details) $ in Thousands	Mar. 31, 2026 USD ($)
Debt Disclosure [Abstract]
2026	$ 417
2027	5,000
2028	4,583
Total	$ 10,000

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Long-Term Debt - Narrative (Details) - 2024 Loan and Security Agreement - Secured Debt - USD ($) $ in Millions	Mar. 26, 2024	Mar. 31, 2026
Debt Instrument [Line Items]
Aggregate principal amount	$ 10.0
Basis spread on variable rate	0.25%
Debt instrument, interest rate, stated percentage	6.00%
Final payment, percentage of principal	2.00%
Proceeds from term loan draw	$ 10.0
Final payment	0.2
Effective interest rate		7.69%
Line of Credit
Debt Instrument [Line Items]
Maximum borrowing capacity	$ 25.0

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Long-Term Debt - Schedule of Components of Interest Expense (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2026	Mar. 31, 2025
Debt Disclosure [Abstract]
Interest expense on long term debt	$ 184	$ 202
Less: Capitalized interest	(58)	(194)
Total	$ 126	$ 8

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Leases (Details) - Unit 1 Pittsburgh Lease ft² in Thousands	Mar. 19, 2026 ft² option
Lessor, Lease, Description [Line Items]
Area of real estate property | ft²	21
Lease not yet commenced, term of contract	11 years
Number of options to terminate | option	1

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Fair Value Measurements (Details) - USD ($) $ in Thousands	Mar. 31, 2026	Dec. 31, 2025
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Money market funds	$ 68,684	$ 108,914
Long-term debt	10,066	10,057
U.S. government securities - AFS
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale debt securities	184,194	171,631
Equity Funds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Equity securities	8,130	5,555
Quoted Prices in Active Markets for Identical Items (Level 1)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Money market funds	68,684	108,914
Long-term debt	0	0
Quoted Prices in Active Markets for Identical Items (Level 1) | U.S. government securities - AFS
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale debt securities	184,194	171,631
Quoted Prices in Active Markets for Identical Items (Level 1) | Equity Funds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Equity securities	8,130	5,555
Significant Other Observable Inputs (Level 2)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Money market funds	0	0
Long-term debt	10,066	10,057
Significant Other Observable Inputs (Level 2) | U.S. government securities - AFS
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale debt securities	0	0
Significant Other Observable Inputs (Level 2) | Equity Funds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Equity securities	0	0
Significant Unobservable Inputs (Level 3)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Money market funds	0	0
Long-term debt	0	0
Significant Unobservable Inputs (Level 3) | U.S. government securities - AFS
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale debt securities	0	0
Significant Unobservable Inputs (Level 3) | Equity Funds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Equity securities	$ 0	$ 0

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Stock Incentive Plans and Stock-Based Compensation - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions		3 Months Ended
	Jan. 01, 2026	Mar. 31, 2026	Mar. 31, 2025
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Accelerated recognition of compensation expense		$ 0.2	$ 0.3
Unrecognized compensation costs		$ 94.5
Unrecognized compensation expense, period for recognition		2 years 9 months 18 days
2019 Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Percentage of outstanding stock, annual increase		5.00%
Additional shares authorized (in shares)	1,484,315
Number of shares available for grant (in shares)		1,590,533
2022 Inducement Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares available for grant (in shares)		746,182
Employee Stock Purchase Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
ESPP shares issued, weighted-average grant date fair value (in dollars per share)		$ 11.27	$ 9.43
Employee Stock Purchase Plan | ESPP
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Additional shares authorized (in shares)	296,863
Number of shares available for grant (in shares)		1,373,056
Shares issued during period (in shares)		94,420

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Stock Incentive Plans and Stock-Based Compensation - Schedule of Activity Under Stock Incentive Plan (Details) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2026 USD ($) $ / shares shares
Stock Options Outstanding
Beginning balance (in shares) | shares	2,784,432
Granted (in shares) | shares	0
Exercised (in shares) | shares	(28,494)
Forfeited/Cancelled (in shares) | shares	(12,590)
Ending balance (in shares) | shares	2,743,348
Options exercisable, number of options (in shares) | shares	2,740,690
Exercise Price
Beginning balance (in dollars per share) | $ / shares	$ 36.53
Granted (in dollars per share) | $ / shares	0
Exercised (in dollars per share) | $ / shares	11.30
Forfeited/Cancelled (in dollars per share) | $ / shares	53.51
Ending balance (in dollars per share) | $ / shares	36.71
Options exercisable, weighted average exercise price (in dollars per share) | $ / shares	$ 36.72
Stock Option Activity, Additional Disclosures
Options outstanding, weighted average remaining contractual term	4 years 3 months 18 days
Options exercisable, weighted average remaining contractual term	4 years 3 months 18 days
Options outstanding, aggregate intrinsic value | $	$ 9,262
Options exercisable, aggregate intrinsic value | $	$ 9,262

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Stock Incentive Plans and Stock Based Compensation - Schedule of Restricted Stock Units and Performance Stock Units (Details)	3 Months Ended
	Mar. 31, 2026 $ / shares shares
Restricted Stock Units (RSUs)
Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]
Beginning balance (in shares)	3,395,762
Granted (in shares)	1,268,848
Vested (in shares)	(628,644)
Forfeited/Cancelled (in shares)	(52,647)
Ending balance (in shares)	3,983,319
Weighted-Average Grant Date Fair Value
Weighted average grant date fair value at beginning balance (in dollars per share) | $ / shares	$ 22.42
Granted (in dollars per share) | $ / shares	27.57
Vested (in dollars per share) | $ / shares	22.12
Forfeited / Cancelled (in dollars per share) | $ / shares	24.21
Weighted average grant date fair value at ending balance (in dollars per share) | $ / shares	$ 24.08
Withheld upon vesting for employee tax obligations (in shares)	201,867
Performance-Based Restricted Stock Units
Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]
Beginning balance (in shares)	350,144
Granted (in shares)	172,397
Vested (in shares)	(88,757)
Forfeited/Cancelled (in shares)	0
Ending balance (in shares)	433,784
Weighted-Average Grant Date Fair Value
Weighted average grant date fair value at beginning balance (in dollars per share) | $ / shares	$ 21.72
Granted (in dollars per share) | $ / shares	27.57
Vested (in dollars per share) | $ / shares	21.23
Forfeited / Cancelled (in dollars per share) | $ / shares	0
Weighted average grant date fair value at ending balance (in dollars per share) | $ / shares	$ 24.15
Withheld upon vesting for employee tax obligations (in shares)	28,797

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Stock Incentive Plans and Stock-Based Compensation - Schedule of Assumptions Used in Fair Value of Stock Options and ESPP (Details) - ESPP - Employee Stock Purchase Plan	3 Months Ended
	Mar. 31, 2026	Mar. 31, 2025
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Average expected term (years)	1 year 2 months 12 days	1 year 2 months 12 days
Expected stock price volatility, minimum	54.54%	56.55%
Expected stock price volatility, maximum	58.00%	85.21%
Risk-free interest rate, minimum	3.41%	3.88%
Risk-free interest rate, maximum	3.61%	4.22%
Dividend yield	0.00%	0.00%

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Stock Incentive Plans and Stock-Based Compensation - Schedule of Stock-based Compensation Expense (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2026	Mar. 31, 2025
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation expense	$ 9,776	$ 11,179
Cost of sales (exclusive of amortization of acquired intangible assets)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation expense	1,257	1,456
Research and development
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation expense	1,443	1,895
Selling, general and administrative
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation expense	$ 7,076	$ 7,828

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Income Taxes (Details)	3 Months Ended
	Mar. 31, 2026
Income Tax Disclosure [Abstract]
Effective income tax rate	0.00%

XML

Segment and Related Information - Narrative (Details) $ in Thousands	3 Months Ended		12 Months Ended
	Mar. 31, 2026 USD ($) segment	Mar. 31, 2025 USD ($)	Dec. 31, 2025 USD ($) segment
Segment Reporting Information [Line Items]
Number of reportable segments | segment	1		1
Number of operating segments | segment	1		1
Assets	$ 547,805		$ 578,556
Reportable Segment
Segment Reporting Information [Line Items]
Long-lived assets, expenditure	5,200	$ 5,700
Reportable Segment | UNITED STATES
Segment Reporting Information [Line Items]
Assets	$ 547,800		$ 578,600

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Segment and Related Information - Schedule of Measures of Segment Profit (Loss) Income (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2026	Mar. 31, 2025
Segment Reporting Information [Line Items]
Net revenues from external customers	$ 83,679	$ 87,988
Significant segment expenses:
Net loss	(14,522)	(25,848)
Reportable Segment
Segment Reporting Information [Line Items]
Net revenues from external customers	83,679	87,988
Significant segment expenses:
Personnel costs	58,367	52,200
Organizational and marketing costs	15,594	14,229
Inventory usage	6,437	4,731
Clinical studies and publication costs	2,542	2,085
Professional services	3,007	3,576
Other segment items	12,254	37,015
Net loss	$ (14,522)	$ (25,848)

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Segment and Related Information - Schedule of Other Amounts Included in the Measure of Segment Profit (Loss) Income (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2026	Mar. 31, 2025
Segment Reporting Information [Line Items]
Interest income	$ 2,545	$ 3,099
Interest expense	(134)	(17)
Depreciation and amortization	3,929	29,764
Income tax expense (benefit)	109	(423)
Stock-based compensation expense	9,776	11,179
Net gains (losses) on equity securities	2,149	(1,425)
Reportable Segment
Segment Reporting Information [Line Items]
Interest income	2,545	3,099
Interest expense	(134)	(17)
Depreciation and amortization	3,929	29,764
Income tax expense (benefit)	109	(423)
Stock-based compensation expense	9,776	11,179
Net gains (losses) on equity securities	$ 2,022	$ (1,425)