Revenue and Segment Information

3 Months Ended

Mar. 31, 2025

11. Revenue and Segment Information

Disaggregated Revenue

The Company disaggregates revenue from contracts with customers related to OCS transplant by organ type and geographical area as it believes this presentation best depicts how the nature, amount, timing and uncertainty of the Company’s revenue and cash flows are affected by economic factors, as shown below (in thousands):


	Three Months Ended March 31,
	2025		2024
OCS transplant revenue by country by organ(1)(2):
United States
Lung total revenue	$	3,636	$	4,706
Heart total revenue		26,266		20,224
Liver total revenue		108,715		66,926
Total United States OCS transplant revenue		138,617		91,856
All other countries
Lung revenue		375		960
Heart revenue		3,550		3,131
Liver revenue		140		—
Total all other countries OCS transplant revenue		4,065		4,091
Total OCS transplant revenue	$	142,682	$	95,947

(1)

Revenue by country is categorized based on the location of the end customer. Total OCS transplant revenue includes product and service revenue.

(2)

Service revenue unrelated to OCS transplant, which was $0.9 million for each of the three months ended March 31, 2025 and 2024, is not included in this table.

Payments to Customers

In connection with its clinical trials, the Company makes payments to customers for reimbursement of clinical trial materials and customer’s costs incurred to execute specific clinical trial protocols related to the Company’s OCS products, which are recorded as a reduction of revenue. The Company records the reduction of revenue and a corresponding accrual for its estimate of the payments in the same period as the revenue is recognized. The Company updates its accrual estimates as information related to these payments is received with a corresponding adjustment to revenue. For each of the three months ended March 31, 2025 and 2024, the net impact of adjustments to revenue for such payments was insignificant.

The Company also makes payments to customers to obtain information related to post-approval studies or existing standard-of-care protocols unrelated to the Company's OCS products and records such payments as operating expenses. For the three months ended March 31, 2025 and 2024, the Company recorded $1.3 million and $1.5 million, respectively, of operating expense related to these costs.

Segment Information

The Company manages its operations as a single segment for the purposes of assessing performance and making operating decisions. Operating segments are defined as components of an enterprise for which separate financial information is regularly evaluated by the Company’s chief operating decision maker, or decision-making group (the “CODM”), in deciding how to allocate resources and assess performance. The CODM of the Company is the Chief Executive Officer. The CODM assesses performance and allocates resources based on the Company’s consolidated statements of operations and the Company’s operations are managed on a consolidated basis to decide where to allocate and invest additional resources within the business to continue growth. The CODM also utilizes the consolidated balance sheet for resource allocation and segment asset information is not provided to the CODM to allocate resources.

As a single reportable segment entity, the Company’s segment performance measure is net income (loss). Significant segment expenses, as provided to the CODM, are presented below (in thousands):


	Three Months Ended March 31,
	2025		2024
Total revenue	$	143,537	$	96,850
Less:
Cost of net product revenue		16,312		14,084
Cost of service revenue		38,997		22,804
Research, development and clinical trials:
Personnel related (including stock-based compensation expense)		6,252		5,264
Laboratory supplies and research materials		4,956		2,314
Consulting and third-party services		4,173		2,007
Clinical trials costs		81		82
Facility related and other		1,698		1,713
Selling, general and administrative:
Personnel related (including stock-based compensation expense)		27,671		24,387
Professional and consultant fees		7,558		3,765
NOP support		2,406		1,962
Tradeshows and conferences		426		983
Facility related and other		5,564		5,064
Other segment items(1)		1,761		224
Net income	$	25,682	$	12,197

(1) Other segment items include interest income, interest expense, foreign currency exchange gains and losses and income taxes. See the condensed consolidated financial statements for other financial information regarding the Company’s operating segment.