Segment Reporting

6 Months Ended

Jun. 30, 2016

Segment Reporting [Abstract]

Segment Reporting

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.

Prior to the acquisition of Allenex, the Company operated as a single reportable segment. Subsequent to the acquisition of Allenex, the Company has identified the following two reportable segments, which are the same as its operating segments:

· CareDx: 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.

· Allenex: 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. Its Olerup SSP product line, which addresses HLA typing, is used prior to hematopoietic stem cell/bone marrow and organ transplantations to match donors with recipients.

There were no intersegment sales for the three and six months ended June 30, 2016. The following table summarizes the operating results of the Company’s reportable segments (in thousands):

	Three Months Ended June 30,						Six Months Ended June 30,
	2016			2015			2016			2015
Total segments
Net revenues	$	10,735		$	7,129		$	17,297		$	14,344
Operating loss		(6,968	)		(2,886	)		(13,538	)		(4,277	)
Depreciation and amortization		843			193			1,104			358
CareDx
Net revenues	$	7,260		$	7,129		$	13,822		$	14,344
Operating loss		(5,243	)		(2,886	)		(11,813	)		(4,277	)
Depreciation and amortization		299			193			560			358
Allenex
Net revenues	$	3,475		$	—		$	3,475		$	—
Operating loss		(1,725	)		—			(1,725	)		—
Depreciation and amortization		544			—			544			—

	June30,2016		December31,2015
Assets:
CareDx	$	42,707	$	55,638
Allenex		57,746		—
Total assets	$	100,453	$	55,638

Revenues by geographic regions are based upon the customers’ ship-to address or headquarters location. The following table summarizes reportable revenues by geographic regions (in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
	2016		2015		2016		2015
Revenues:
United States	$	8,098	$	7,129	$	14,631	$	14,344
Europe, Middle East and Africa		2,404		—		2,418		—
Latin America and Canada		233		—		248		—
Total	$	10,735	$	7,129	$	17,297	$	14,344

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

	June30,2016		December31,2015
Long-lived assets:
United States	$	2,443	$	2,425
Europe		970		—
Total	$	3,413	$	2,425