16. SEGMENT REPORTING

Operating segments are defined as components of an enterprise about which separate financial information is available that is evaluated regularly by the Chief Operating Decision Maker (“CODM”), or decision making group, whose function is to allocate resources to and assess the performance of the operating segments. The Company has identified its chief executive officer as the CODM. In determining its reportable segments, the Company considered the markets and types of customers served and the products or services provided in those markets.

The Company has identified the following two reportable segments, which are the same as its operating segments:

•

Post-Transplant: This segment focuses on discovery, development and commercialization of clinically differentiated, high-value diagnostic solutions for transplant patients. Its first commercialized testing solution, AlloMap, is a gene expression test that helps clinicians monitor and identify heart transplant recipients with stable graft function who have a low probability of moderate/severe acute cellular rejection. On October 9, 2017, AlloSure became commercially available with Medicare reimbursement. AlloSure is the first and only non-invasive test that assesses organ health by directly measuring allograft injury.

•

Pre-Transplant: This segment develops, manufactures, markets and sells high quality products that increase the chance of successful transplants by facilitating a better match between a donor and a recipient of stem cells and organs. The pre-transplant product lines include Olerup branded products SSP, SBT and QTYPE.

There were no intersegment sales for the three months ended March 31, 2018 or 2017. The following table summarizes the operating results of the Company’s reportable segments (in thousands):

	Three Months Ended March 31,
	2018			2017
Total segments
Revenues	$	14,053		$	11,584
Operating loss		(5,235	)		(8,544	)
Depreciation and amortization		1,039			934
Post-Transplant
Revenues-testing and license and other revenue	$	10,746		$	7,917
Operating loss		(3,195	)		(5,459	)
Depreciation and amortization		329			262
Pre-Transplant
Revenues- product revenue	$	3,307		$	3,667
Operating loss		(2,040	)		(3,085	)
Depreciation and amortization		710			672

	March 31, 2018		December 31, 2017
Assets:
Post-Transplant	$	45,564	$	48,734
Pre-Transplant		33,388		34,831
Total assets	$	78,952	$	83,565

Revenues by geographic regions are based upon the customers’ ship-to address for pre-transplant revenues and the region of testing for post-transplant revenue. The following table summarizes reportable revenues by geographic regions (in thousands):

	Three Months Ended March 31, 2018				Three Months Ended March 31, 2017
	Post-Transplant		Pre-Transplant		Post-Transplant		Pre-Transplant
Revenues:
North America	$	10,729	$	929	$	7,902	$	1,000
Europe		17		1,973		15		2,059
Australia		—		74		—		116
Rest of the World		—		331		—		492
Total	$	10,746	$	3,307	$	7,917	$	3,667

The following table summarizes long-lived assets, consisting of property and equipment, net, by geographic regions (in thousands):

	March 31, 2018		December 31, 2017
Long-lived assets:
North America	$	1,256	$	1,206
Europe		713		776
Australia		86		93
Total	$	2,055	$	2,075