Strata Critical Medical, Inc. Class A Common Stock 2026 Jefferies Healthcare Services and Technology Conference

Thanks for the intro. Real quick, we'll talk about some forward-looking statements today. Please check our regulatory filings for more information about that. For those of you that are new to Strata Critical, we are one of the largest providers of both logistics and clinical services to the transplant industry, and we use those same resources to provide perfusion services to cardiothoracic surgery centers across the U.S. So more than 250 hospitals across the U.S., where we support open heart surgeries with our perfusionists and the associated equipment. We want to start, though, with our mission, because the mission that we perform is really, really important. Every day in the United States, about 15 people die waiting for an organ that's not going to come in time.

There is a huge shortage of donor organs available for people who need them, and that's just counting the people, 100,000 of them, that are currently on the transplant wait list because they qualify. There's multiples of that of people who need donor organs, but they don't qualify to be on that wait list because they're too sick. They have any number of other disqualifiers. There's millions of people who could benefit from an organ transplant, and we're trying to help solve this problem by increasing the supply. It's a very logistically challenging process to recover an organ, because you have only hours to get that organ from the donor to the recipient. It requires dedicated private air transportation, and it also requires synchronization of any number of other clinical services, the surgical recovery of that organ from the donor, the perfusion of that organ.

That's a fancy word for pumping oxygenated blood through the organ that can repair damage that's done to the organs during the dying process. All of this has to happen in a very specific order and a very short timeline. We put all of these things together for our customers, which are transplant centers. There's 250 of them that have the patient that's going to receive that transplant. Organ Procurement Organizations, there's about 50 of them, and they're responsible for identifying suitable donors and matching them with a potential recipient. We put all of those things together in a one-call solution that allows transplant centers to pursue more potential donor organs and get them to recipients more efficiently with less cost, which helps to close that massive gap between the supply of organs and the demand for them.

Just briefly walking through specifically what we do in each part of our business. Transplant air logistics is the largest part of what we do. We have dedicated aircraft across the U.S. Asset-light model. We own less than 30% of the supply that we use to transport these organs. That is 10 airplanes is all that we own. Allows us to be very capital efficient as we grow, and we do not have any need to grow the number of airplanes that we have. We have a small number for strategic reasons. It allows us to compete for RFPs where aircraft ownership is required, and it also allows us to more effectively negotiate with the 70% of our supply base that consists of third-party owners and operators of aircraft.

Aviation, as we talked about, is incredibly important here, because once that organ comes out, it is only going to remain viable for a short number of hours. If we were recovering a heart and a liver for the same transplant center, it is so time sensitive, you would actually use two different airplanes for that. Put the heart on its own airplane, and then 30 or 45 minutes later, put the liver on a second airplane. That is because every minute matters, and if you look at outcomes on a graph, the longer you take to get an organ to its destination, the less likely the outcome is going to be positive for that recipient. It is very, very important to move quickly. We also harmonize the air transportation with ground transportation using both owned vehicles that are spread across the U.S. and a network of vetted third-party operators.

We couple that with all the clinical services you need to one phone call to Strata, go and procure a donor organ from anywhere in the country. So that is everything from clinicians that are on call 24/7, 365 to help our transplant centers determine if they are going to accept an organ for transplant. That is called organ placement. We are evaluating if an organ offer that comes in is a good match for a recipient, and then arranging all the administrative items that need to be taken care of to support the recovery of that organ. That is third-party surgical recovery, meaning sending our own surgeons instead of sending a surgeon that works for the transplant center to recover a donor organ.

We will talk about how that can be much more efficient and can save transplant centers money, and also reduce the risk that they fly a transplant surgeon across the country and then come back empty-handed. Finally, the perfusion of those organs. We talked about it briefly, but there is a category of organ donor, Donation after Circulatory Death. This is a donor whose heart has stopped. So much damage is done when a donor's heart has stopped that you need to repair that damage through a process called perfusion. We are one of the largest providers of what is called normothermic regional perfusion. It is the lowest cost way to repair the damage that is done to those organs because you are perfusing all of the organs inside the body of the deceased very efficiently.

We're delivering all of our transplant clinical services as much as possible through a local service delivery model. Very differentiated relative to what you see out in the marketplace, because about two-thirds of the time, we're able to bring our clinicians and associated equipment to the location of the donor, either on the ground or via commercial air. This saves our customers a lot of money. It's a very different way than the rest of the industry operates. As we alluded to earlier, those same perfusionists and the same perfusion equipment that you utilize to repair the damage that's done to donor organs can also be used to support open heart surgeries. We do this in 250 hospitals across the U.S. It's a growing part of our business.

It's much more efficient for hospitals to outsource that kind of work because we can pull from all across the country to deal with the ebbs and flows of their surgical demand. Furthermore, with our business, we can leverage the staff that we have for transplant and for traditional cardiac perfusion to be a much more efficient model than what else is out there in the industry. Those same kind of people can also support ECMO, autotransfusion, blood management. Very low market share across all of our transplant offerings. It's an extremely fragmented marketplace because the industry has changed so much in the last five years. If you rewind the clock to five years ago, matching was very local. You weren't allowed to fly across the country, in most cases, to match a donor to a recipient.

That was very inefficient because instead of getting a donor organ to the person who's sickest and who needs it most, you got it to a person who was closest. Regulation has evolved, and technology has evolved to allow us to more efficiently get that organ to the person who needs it, who may not have time to wait for another organ. As a result, the industry over decades evolved in a very local model without thinking about the implications of having to transport organs across the country, and more importantly, not thinking about the implications of having to recover organs all across the country. Transplant centers sent their own surgeon for a one-hour flight or a two-hour drive to recover an organ on their own.

Now that that organ could be five hours away, that system has broken down, and it creates a big opportunity for us to start helping transplant centers with that problem, growing both organically and through acquisition. You see the very low market share in organ placement gives us a lot of room to outpace the growth in the market. The same is true in recovery and perfusion, and we have about a third of the market in logistics. We'll walk through a few highlights of why we think we're best suited to help this industry solve this life-saving problem. We think we're the only one out there that's doing things the way that we're doing them. We have the end-to-end offering that is not captive to any particular medical device.

More and more transplant centers have a variety of choices in terms of different machines they can use to help preserve organs when they are in transit or when they make it back to the transplant center. We are agnostic as to what decisions our customers make. We still believe in that phrase, "The customer is always right," and we just want to make things simple and cost-effective for that transplant center. As you look at the pipeline of new devices that are expected to be introduced to the U.S. market over the next three, six, nine months, the machine perfusion space is only going to become more fragmented. Our model allows us to build economies of scale where they exist. That is airplanes that do all the flying for our customers, whether they are using a device or not, it does not matter which device they are using.

The more hours we fly those airplanes, the less they cost to fly. The same is true for our surgeons and our perfusionists. We want them to support any device our customer may use. That allows our surgeons to do more cases, and we amortize whatever we pay them in salary or an on-call fee over more organs, lowering the cost to deliver that service. We have a national footprint to support this project. There is no place in the United States that we cannot support our customers in recovering a donor organ and flying it back to its recipient. Because we have so many local resources available, we are able to dispatch our clinicians more efficiently.