false
0001089907
0001089907
2024-05-15
2024-05-15
0001089907
swkh:CommonStockParValueMember
2024-05-15
2024-05-15
0001089907
swkh:Sec9.00SeniorNotesDue2027Member
2024-05-15
2024-05-15
iso4217:USD
xbrli:shares
iso4217:USD
xbrli:shares
UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
Washington,
D.C. 20549
FORM
8-K
CURRENT
REPORT
Pursuant
to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date
of Report (Date of Earliest Event Reported): May 15, 2024
SWK
HOLDINGS CORPORATION
(Exact
Name of the Registrant as Specified in Its Charter)
Delaware
(State
or Other Jurisdiction of Incorporation)
001-39184 |
77-0435679 |
(Commission
File Number) |
(IRS
Employer Identification No.) |
|
|
5956
Sherry Lane, Suite 650, Dallas, TX |
75255 |
(Address
of Principal Executive Offices) |
(Zip
Code) |
(972)
687-7250
(Registrant’s
Telephone Number, Including Area Code)
Check
the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant
under any of the following provisions:
☐ |
Written
communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
☐ |
Soliciting
material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
☐ |
Pre-commencement
communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
☐ |
Pre-commencement
communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
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, par value
$0.001
per share |
SWKH |
The
Nasdaq Stock Market LLC |
9.00%
Senior Notes Due 2027 |
SWKHL |
The
Nasdaq Stock Market LLC |
Indicate
by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405
of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
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.
☐
Item
2.02. |
Results of Operations and Financial Condition. |
Attached as Exhibit 99.1 to this Current Report on form 8-K is a copy of
a press release of SWK Holdings Corporation, dated May 15, 2024, reporting SWK Holdings Corporation’s 2024 First Quarter Financial
Results. Such information, including the Exhibit attached hereto, shall not be deemed “filed” for purposes of Section 18 of
the Securities Exchange Act of 1934, as amended (the “Exchange Act”), nor shall it be deemed incorporated by reference in any
filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference
in such filing.
Item
9.01 |
Financial
Statements and Exhibits. |
SIGNATURE)
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.
SWK
HOLDINGS CORPORATION |
|
|
By: |
/s/
Joe D. Staggs |
|
Joe
D. Staggs |
|
Chief Executive Officer |
Date:
May 15, 2024
Exhibit 99.1
SWK
Holdings Corporation Announces Financial Results for First Quarter 2024
Conference
Call and Live Audio Webcast Scheduled for Thursday, May 16, 2024, at 10:00 a.m. ET
Corporate
Highlights
| · | First
quarter 2024 GAAP net income was $0.9 million, compared with net income of $4.6 million
or $0.36 per share, for the first quarter 2023 |
| · | First
quarter 2024 finance receivables segment adjusted non-GAAP net income was $2.7 million,
compared with adjusted non-GAAP net income of $7.3 million for the first quarter 2023 |
| · | As
of March 31, 2024, gross finance receivables were $274.5 million, a 10.3% increase from
March 31, 2023 |
| · | As
of March 31, 2024, book value per share was $22.46 |
| · | As
of March 31, 2024, non-GAAP tangible financing book value per share was $19.69 |
| · | First
quarter 2024 finance portfolio effective yield was 14.2%, a 130-basis-point decrease
from March 31, 2023 |
| · | During
first quarter 2024, Enteris signed the Option and Asset Purchase Agreement with a strategic partner and Enteris received the first low-single digit million option fee in April 2024 |
| · | SWK
repurchased 58,298 shares of common stock during the first quarter 2024 for a total cost of approximately $1.0
million |
| | |
Dallas,
TX, May 15, 2024 – SWK Holdings Corporation (Nasdaq: SWKH) (“SWK” or the “Company”), a life science-focused
specialty finance company catering to small- and mid-sized commercial-stage companies, today provided a business update and announced
its financial and operating results for the first quarter ended March 31, 2024.
“During
the first quarter, our finance segment generated a 10.3% year-over-year
increase in gross finance receivables to $274.5 million coupled with a 14.2% effective yield, and a 16.3% realized yield. This led
to a 23.7% year-over-year increase in segment revenue to $11.5 million, which is near an all-time high,” stated Jody Staggs,
President and CEO of SWK. “The strong revenue growth enabled our finance segment to remain profitable in the quarter
generating $0.9 million of GAAP net income and $2.7 million of adjusted non-GAAP net income despite a $6.0 million impairment to our
loan book.”
Mr.
Staggs continued: “Our Enteris division signed an Exclusive Option and Asset
Purchase agreement with a strategic partner granting the partner a two-year exclusive option to purchase certain Enteris tangible assets
in exchange for a series of payments. We received the first low-single digit million-dollar option fee in April and expect to receive
the first guaranteed revenue payment at the mid-year mark. Our first quarter results did not include any revenue from the agreement. The
Enteris team is working with our partner to increase the project pipeline and generate new business.”
Mr.
Staggs concluded: “We are pursuing multiple loan and royalty opportunities
while remaining cognizant of increased competition in certain pockets of the life science finance market. We are focused on opportunities
to partner with commercial-stage life science companies that possess high-margin, moated products with demonstrated strategic value. We
are also working with our non-accrual borrowers to achieve beneficial resolutions. Finally, management and the Board remain committed
to returning value to shareholders through the ongoing share repurchase program.”
First Quarter 2024 Financial
Results
For
the first quarter 2024, SWK reported total revenue of $11.8 million, a 25.5% increase compared to $9.4 million for the first quarter
2023. The $2.4 million increase in revenue for the three months ended March 31, 2024 consisted of a $2.2 million increase in Finance
Receivables segment revenue and a $0.2 million increase in Pharmaceutical Development segment revenue. The $2.2 million increase
in Finance Receivables segment revenue was primarily due to a $4.1 million increase in interest and fees earned due to funding new
and existing loans offset by $1.9 million decrease in interest, fees and royalties earned on finance receivables that were paid
off in 2023.
Income before income tax expense for the quarter decreased to $1.1 million for the three months ended March 31, 2024, compared to $4.5
million for the same period of the previous year. The year-over-year decrease is primarily due to a $6.0 million impairment in our loan
portfolio and a $1.1 million increase in interest expense, offset by a $2.4 million increase in consolidated revenue.
GAAP
net income for the quarter ended March 31, 2024, decreased to $0.9 million, or $0.07 per diluted share, from $4.6 million, or $0.36 per
diluted share, for the first quarter 2023.
For
the first quarter 2024, non-GAAP adjusted net income was $1.5 million, a decrease from $5.7 million for the first quarter 2023. Non-GAAP
adjusted net income for the Finance Receivables segment was $2.7 million, a decrease from $7.3 million for the first quarter 2023.
During
the three months ended March 31, 2024, there were $19.1 million in investment
cash inflows in which $6.3 million were principal loan repayments. Gross income-producing assets (defined as finance receivables and corporate
debt securities) totaled $274.5 million as of March 31, 2024. This is a 10.3% increase compared with gross income-producing assets of
$248.8 million as of March 31, 2023. The allowance for credit loss at quarter’s end totaled $13.2 million, an increase from $11.8
million in the first quarter of 2023. Net income-producing assets (defined as finance receivables and corporate debt securities) totaled
$261.3 million as of March 31, 2024. Gross total investment assets, which include income-producing assets plus equity-linked securities,
were $275.5 million as of March 31, 2024, compared to March 31, 2023, gross total investment assets of $249.6 million. Net total investment
assets totaled $262.3 million as of March 31, 2024.
Book
value per share was $22.46 as of March 31, 2024, a 5.0% increase compared
to $21.39 as of March 31, 2023. Non-GAAP tangible financing book value per share totaled $19.69, a 6.8% increase compared to $18.45 at
March 31, 2023. Management views non-GAAP tangible financing book value per share as a relevant metric to value the Company’s core
finance receivable business. Non-GAAP tangible financing book value per share removes the value of the deferred tax assets and Enteris
net asset value.
Tables
detailing SWK’s financial performance for the first quarter 2024 are below.
Portfolio
Status
SWK
did not close any financings during the quarter and funded $0.4 million
to an existing borrower. After quarter end, SWK advanced $2.0 million to an existing, performing borrower.
For the first quarter 2024, the realized yield of the finance receivables portfolio
was 16.3%, a 100 bps increase compared to 15.3% for the same period in the previous year. The realized yield was negatively impacted
by the classification of the $6.8 million loan to Exeevo to non-accrual status during the quarter. The realized yield is inclusive of
all fees, including all realized unamortized fees, amendment fees, and prepayment fees, and is calculated based on the simple average
of finance receivables at the beginning and end of the period. The realized yield may differ from the effective yield due to actual cash
collections being greater or lesser than modeled.
As
of March 31, 2024, non-accrual finance receivables totaled $26.8 million.
Of the total $26.8 million, $10.4 million consisted of a non-accrual financing originally to Flowonix Medical, $6.8 million consisted
of a loan to Exeevo, $3.6 million consisted of a loan to Trio Healthcare, $3.6 million consisted of a royalty purchase originally to Ideal
Implant, and $2.5 million consisted of a royalty to Best ABT, Inc.
As of March 31, 2024, SWK
had $5.0 million of unfunded commitments, and after quarter close added an additional $5.0 million of unfunded commitments.
Total
portfolio investment activity for the three months ended March 31, 2024, and 2023 was as follows (in thousands):
| |
Three Months Ended March 31, | |
| |
2024 | | |
2023 | |
Beginning Portfolio | |
$ | 276,311 | | |
$ | 237,851 | |
Provision for credit losses and impairments | |
| (5,323 | ) | |
| — | |
Interest paid-in-kind | |
| 477 | | |
| 351 | |
Investment in marketable investments | |
| 346 | | |
| (185 | ) |
Investment in finance receivables | |
| 446 | | |
| 12,990 | |
Loan discount and fee accretion | |
| 1,250 | | |
| 1,020 | |
Net unrealized gain (loss) on marketable investments and warrant assets | |
| (33 | ) | |
| (982 | ) |
Warrant and equity investments, net of sales and cancellations | |
| (984 | ) | |
| 444 | |
Fair value remeasurement of finance receivable | |
| (832 | ) | |
| — | |
Principal payments received on investments | |
| (6,464 | ) | |
| (498 | ) |
Royalty (paydowns) accretion | |
| (2,905 | ) | |
| (1,418 | ) |
Ending Portfolio | |
$ | 262,289 | | |
$ | 249,573 | |
| |
| | | |
| | |
Adjusted
Non-GAAP Net Income
The following table provides a reconciliation of SWK’s reported (GAAP) consolidated net income to SWK’s adjusted consolidated
net income (Non-GAAP) for the three-month periods ended March 31, 2024 and 2023. The table eliminates provisions for income taxes, non-cash
mark-to-market changes on warrant assets and equity securities, amortization of Enteris intangible assets, foreign currency transaction
losses, and any non-cash impact on the remeasurement of contingent consideration.
| |
Three Months Ended March 31, | |
| |
2024 | | |
2023 | |
Net income | |
$ | 861 | | |
$ | 4,635 | |
Add (subtract): Income tax (benefit) expense | |
| 229 | | |
| (109 | ) |
Add: Enteris amortization expense | |
| 289 | | |
| 426 | |
Add (subtract): Unrealized net gain on warrants assets | |
| 95 | | |
| 982 | |
Add: Loss on exercise of warrant | |
| 143 | | |
| — | |
Add: Foreign currency transaction loss | |
| (87 | ) | |
| (186 | ) |
Adjusted income before income tax (benefit) expense | |
| 1,530 | | |
| 5,748 | |
Adjusted income tax (benefit) expense | |
| — | | |
| — | |
Non-GAAP net income | |
$ | 1,530 | | |
$ | 5,748 | |
| |
| | | |
| | |
In
the table above, management has deducted the following non-cash items: (i) change in the fair-market value of equities and warrants,
as mark-to-market changes are non-cash, (ii) income taxes, as the Company has substantial net operating losses to offset against
future income, (iii) amortization expense associated with Enteris intangible assets, and (iv) (gain) loss on remeasurement of
contingent consideration, , and (v) foreign currency (loss) gain.
Finance Receivables Adjusted
Non-GAAP Net Income
The
following table provides a reconciliation of SWK’s consolidated adjusted income before provision for income tax expense,
listed in the table above, to the non-GAAP adjusted net income for the Finance Receivable segment for the three-month periods
ended March 31, 2024 and 2023. The table eliminates Enteris operating (income) loss. The adjusted income before income tax expense
is derived in the table above and eliminates income tax expense, non-cash mark-to-market changes on equity securities.
| |
Three Months Ended March 31, | |
| |
2024 | | |
2023 | |
Non-GAAP net income | |
$ | 1,530 | | |
$ | 5,748 | |
Add (subtract): Enteris operating loss (income), excluding amortization expense and change in fair value of contingent consideration | |
| 1,166 | | |
| 1,546 | |
Adjusted Finance Receivable segment income before income tax (benefit) expense | |
$ | 2,696 | | |
$ | 7,294 | |
Adjusted income tax (benefit) expense | |
| — | | |
| — | |
Finance Receivables segment adjusted non-GAAP net income | |
$ | 2,696 | | |
$ | 7,294 | |
| |
| | | |
| | |
Non-GAAP Tangible Finance
Book Value Per Share
The
following table provides a reconciliation of SWK’s GAAP book value per share to its non-GAAP tangible finance book value
per share as of March 31, 2024 and 2023. The table eliminates the deferred tax assets, intangible assets, goodwill, Enteris property
and equipment and acquisition-related contingent consideration (in thousands, except per share data):
| |
Three Months Ended
March 31, | |
| |
2024 | | |
2023 | |
GAAP shareholder’s equity | |
$ | 280,288 | | |
$ | 274,385 | |
Shares outstanding | |
| 12,482 | | |
| 12,830 | |
GAAP book value per share | |
$ | 22.46 | | |
$ | 21.39 | |
| |
| | | |
| | |
Less: Deferred tax assets, net | |
| (28,077 | ) | |
| (27,128 | ) |
Less: Intangible assets, net | |
| (6,198 | ) | |
| (7,764 | ) |
Less: Goodwill | |
| — | | |
| (8,404 | ) |
Less: Enteris Property and equipment, net | |
| (5,102 | ) | |
| (5,599 | ) |
Plus: Contingent consideration payable | |
| 4,900 | | |
| 11,200 | |
Non-GAAP tangible finance book value | |
| 245,811 | | |
| 236,690 | |
Shares outstanding | |
| 12,482 | | |
| 12,830 | |
Non-GAAP Tangible book value per share | |
$ | 19.69 | | |
$ | 18.45 | |
| |
| | | |
| | |
Non-GAAP
Financial Measures
This
release includes non-GAAP adjusted net income, non-GAAP finance receivable segment net income, and non-GAAP tangible financing
book value per share, which are metrics that are not compliant with generally accepted accounting principles in the United States
(GAAP).
Non-GAAP
adjusted net income is adjusted for certain items (including (i) changes in the fair-market value of public equity-related assets
and SWK’s warrant assets as mark-to-market changes are non-cash, (ii) income taxes as the Company has substantial net operating
losses to offset against future income, (iii) changes in the fair-market value of contingent consideration associated with the
Enteris acquisition as these changes are non-cash, and (iv) depreciation and amortization expenses, primarily associated with
the Enteris acquisition.
In
addition to the adjustments noted above, non-GAAP finance receivable segment net income also excludes Enteris operating losses.
Non-GAAP
tangible financing book value per share excludes the deferred tax asset, intangible assets, goodwill, Enteris PP&E, and contingent
consideration associated with the Enteris transaction.
These non-GAAP measures may not be directly comparable to similar measures
used by other companies in the Company's industry, as other companies may define such measures differently. Management believes that these
measures are useful to investors and management in understanding our ongoing operations and in analysis of ongoing operating trends and
provides useful additional information relating to our operations and financial condition. The Company encourages investors to carefully
consider its results under GAAP, as well as its supplemental non-GAAP information and the reconciliation between these presentations,
to better understand its business. Non-GAAP financial results are reported in addition to, and not as a substitute for, or superior to,
financial measures calculated in accordance with GAAP. Further, non-GAAP financial measures, even if similarly titled, may not be calculated
in the same manner by all companies, and therefore should not be compared.
Conference Call Information
SWK Holdings will host a conference call
and live audio webcast on Thursday, May 16, 2024, at 10:00 a.m. ET, to discuss its corporate and financial results for the first quarter
2024.
Interested participants and investors may
access the audio webcast via the Events section of SWK Holdings’ Investor Relations website,
https://swkhold.investorroom.com/events, or https://www.webcaster4.com/Webcast/Page/3029/50578.
Additionally, interested participants and investors
may access the conference call telephonically by dialing either:
|
a. |
888-506-0062 (U.S.) |
|
b. |
973-528-0011 (International) |
|
c. |
Participant Access Code: 282310 |
An archive of the webcast will remain
available on SWK Holdings’ website for 12 months beginning at approximately 11:00 a.m. ET, on May 16, 2024.
About SWK
Holdings Corporation
SWK
Holdings Corporation is a life science focused specialty finance company partnering with small- and mid-sized commercial-stage
healthcare companies. SWK provides non-dilutive financing to fuel the development and commercialization of lifesaving and life-enhancing
medical technologies and products. SWK’s unique financing structures provide flexible financing solutions at an attractive
cost of capital to create long-term value for all SWK stakeholders. SWK’s solutions include structured debt, traditional
royalty monetization, synthetic royalty transactions, and asset purchases typically ranging in size from $5.0 million to $25.0
million. SWK also owns Enteris BioPharma, a clinical development and manufacturing organization
providing development services to pharmaceutical partners as well as innovative formulation solutions built around its proprietary
oral drug delivery technologies, the Peptelligence® platform. Additional information on the life science finance market
is available on the Company’s website at www.swkhold.com.
Safe
Harbor For Forward-Looking Statements
This
press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995.
Statements including words such as “believes,” “expects,” “anticipates,” “intends,”
“estimates,” “plan,” “will,” “may,” “look forward,” “intend,”
“guidance,” “future” or similar expressions are forward-looking statements. Because these statements reflect
SWK’s current views, expectations and beliefs concerning future events, these forward-looking statements involve risks and
uncertainties. Investors should note that many factors, as more fully described under the caption “Risk Factors” and
elsewhere in SWK’s Form 10-K, Form 10-Q and Form 8-K filings with the Securities and Exchange Commission and as otherwise
enumerated herein, could affect the Company’s future financial results and could cause actual results to differ materially
from those expressed in such forward-looking statements. The forward-looking statements in this press release are qualified by
these risk factors. These are factors that, individually or in the aggregate, could cause the Company’s actual results to
differ materially from expected and historical results. You should not place undue reliance on any forward-looking statements,
which speak only as of the date they are made. We assume no obligation to publicly update any forward-looking statements, whether
as a result of new information, future developments or otherwise.
For more information,
please contact:
Tiberend Strategic Advisors, Inc.
Daniel Kontoh-Boateng (Investors)
dboateng@tiberend.com
Jason Rando (Media)
jrando@tiberend.com
SWK HOLDINGS
CORPORATION
UNAUDITED
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands,
except share data)
| |
March 31, 2024 | | |
December 31, 2023 | |
Assets: | |
| | | |
| | |
Current assets: | |
| | | |
| | |
Cash and cash equivalents | |
$ | 5,498 | | |
$ | 4,503 | |
Restricted cash | |
| — | | |
| 733 | |
Interest, accounts receivable and other receivables, net | |
| 6,352 | | |
| 4,729 | |
Other current assets | |
| 2,086 | | |
| 1,904 | |
Total current assets | |
| 13,936 | | |
| 11,869 | |
| |
| | | |
| | |
Finance receivables, net of allowance for credit losses of $13,224 and $13,901
as of March 31, 2024 and December 31, 2023, respectively | |
| 261,285 | | |
| 274,504 | |
Collateral on foreign currency forward contract | |
| 2,750 | | |
| 2,750 | |
Marketable investments | |
| 394 | | |
| 48 | |
Deferred tax assets, net | |
| 28,077 | | |
| 28,290 | |
Warrant assets | |
| 610 | | |
| 1,759 | |
Intangible assets, net | |
| 6,198 | | |
| 6,487 | |
Property and equipment, net | |
| 5,212 | | |
| 5,438 | |
Other non-current assets | |
| 3,888 | | |
| 3,109 | |
Total assets | |
$ | 322,350 | | |
$ | 334,254 | |
| |
| | | |
| | |
Liabilities and Stockholders’ Equity:
| |
| | | |
| | |
Current liabilities: | |
| | | |
| | |
Accounts payable and accrued liabilities | |
$ | 4,376 | | |
$ | 3,944 | |
Total current liabilities | |
| 4,376 | | |
| 3,944 | |
| |
| | | |
| | |
Contingent consideration payable | |
| 4,900 | | |
| 4,900 | |
Unsecured senior notes, net | |
| 30,927 | | |
| 30,781 | |
Revolving credit facility | |
| — | | |
| 12,350 | |
Other non-current liabilities | |
| 1,859 | | |
| 1,964 | |
Total liabilities | |
| 42,062 | | |
| 53,939 | |
| |
| | | |
| | |
Commitments and contingencies (Note 6) | |
| | | |
| | |
| |
| | | |
| | |
Stockholders’ equity: | |
| | | |
| | |
Preferred stock, $0.001 par value; 5,000,000 shares authorized; no shares issued and outstanding | |
| — | | |
| — | |
Common stock, $0.001 par value; 250,000,000 shares authorized; 12,481,944 and 12,497,770 shares issued and outstanding as of March 31, 2024 and December 31, 2023, respectively | |
| 12 | | |
| 12 | |
Additional paid-in capital | |
| 4,424,216 | | |
| 4,425,104 | |
Accumulated deficit | |
| (4,143,940 | ) | |
| (4,144,801 | ) |
Total stockholders’ equity | |
| 280,288 | | |
| 280,315 | |
Total liabilities and stockholders’ equity | |
$ | 322,350 | | |
$ | 334,254 | |
SWK HOLDINGS
CORPORATION
UNAUDITED
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(in
thousands, except per share data)
| |
Three Months Ended March 31, | |
| |
2024 | | |
2023 | |
Revenues: | |
| | | |
| | |
Finance receivable interest income, including fees | |
$ | 11,454 | | |
$ | 9,260 | |
Pharmaceutical development | |
| 279 | | |
| 118 | |
Other | |
| 46 | | |
| 33 | |
Total revenues | |
| 11,779 | | |
| 9,411 | |
Costs and expenses: | |
| | | |
| | |
Provision for credit losses | |
| 5,323 | | |
| — | |
Interest expense | |
| 1,256 | | |
| 182 | |
Pharmaceutical manufacturing, research and development expense | |
| 530 | | |
| 719 | |
Depreciation and amortization expense | |
| 514 | | |
| 648 | |
General and administrative | |
| 2,684 | | |
| 2,540 | |
Income from operations | |
| 1,472 | | |
| 5,322 | |
Other income (expense), net | |
| | | |
| | |
Unrealized net loss on warrants | |
| (95 | ) | |
| (982 | ) |
Loss on exercise of warrants | |
| (143 | ) | |
| — | |
Realized loss on sale of marketable investments | |
| (231 | ) | |
| — | |
Gain on foreign currency transactions | |
| 87 | | |
| 186 | |
Income before income tax expense (benefit) | |
| 1,090 | | |
| 4,526 | |
Income tax expense (benefit) | |
| 229 | | |
| (109 | ) |
Net income | |
$ | 861 | | |
$ | 4,635 | |
| |
| | | |
| | |
Net income per share | |
| | | |
| | |
Basic | |
$ | 0.07 | | |
$ | 0.36 | |
Diluted | |
$ | 0.07 | | |
$ | 0.36 | |
Weighted average shares outstanding | |
| | | |
| | |
Basic | |
| 12,475 | | |
| 12,833 | |
Diluted | |
| 12,540 | | |
| 12,875 | |
SWK HOLDINGS
CORPORATION
UNAUDITED
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
| |
Three Months Ended March 31, | |
| |
2024 | | |
2023 | |
Cash flows from operating activities: | |
| | | |
| | |
Net income | |
$ | 861 | | |
$ | 4,635 | |
Adjustments to reconcile net income to net cash provided by operating activities: | |
| | | |
| | |
Provision for credit losses | |
| 5,323 | | |
| — | |
Right-of-use asset amortization | |
| 91 | | |
| 68 | |
Amortization of debt issuance costs | |
| 248 | | |
| 15 | |
Deferred income taxes | |
| 229 | | |
| (122 | ) |
Change in fair value of warrants | |
| 95 | | |
| 982 | |
Loss on exercise of warrants | |
| 143 | | |
| — | |
Foreign currency transaction (gain) loss | |
| (918 | ) | |
| 186 | |
Realized loss on sale of equity securities | |
| 231 | | |
| — | |
Loan discount and fee accretion on finance receivables | |
| (1,256 | ) | |
| (1,466 | ) |
Interest paid-in-kind | |
| (478 | ) | |
| (351 | ) |
Stock-based compensation | |
| 111 | | |
| 35 | |
Depreciation and amortization | |
| 514 | | |
| 648 | |
Changes in operating assets and liabilities: | |
| | | |
| | |
Interest, accounts, and other receivables | |
| (1,623 | ) | |
| (1,251 | ) |
Derivative assets and liabilities, net | |
| 831 | | |
| (388 | ) |
Other assets | |
| (283 | ) | |
| (915 | ) |
Accounts payable and other liabilities | |
| 311 | | |
| (1,412 | ) |
Net cash provided by operating activities | |
| 4,430 | | |
| 664 | |
| |
| | | |
| | |
Cash flows from investing activities: | |
| | | |
| | |
Sale of marketable investments | |
| 258 | | |
| — | |
Investment in finance receivables | |
| (446 | ) | |
| (12,990 | ) |
Repayment of finance receivables | |
| 9,362 | | |
| 1,906 | |
Corporate debt securities principal payments | |
| 7 | | |
| 10 | |
Purchases of property and equipment | |
| — | | |
| (8 | ) |
Net cash provided by (used in) investing activities | |
| 9,181 | | |
| (11,082 | ) |
| |
| | | |
| | |
Cash flows from financing activities: | |
| | | |
| | |
Net (payments on) proceeds from credit facility | |
| (12,350 | ) | |
| 8,037 | |
Repurchases of common stock, including fees and expenses | |
| (999 | ) | |
| (531 | ) |
Net cash (used in) provided by financing activities | |
| (13,349 | ) | |
| 7,506 | |
| |
| | | |
| | |
Net increase (decrease) in cash, cash equivalents, and restricted cash | |
| 262 | | |
| (2,912 | ) |
Cash, cash equivalents, and restricted cash at beginning of period | |
| 5,236 | | |
| 6,156 | |
Cash, cash equivalents, and restricted cash at end of period | |
$ | 5,498 | | |
$ | 3,244 | |
v3.24.1.1.u2
Cover
|
May 15, 2024 |
Document Type |
8-K
|
Amendment Flag |
false
|
Document Period End Date |
May 15, 2024
|
Entity File Number |
001-39184
|
Entity Registrant Name |
SWK
HOLDINGS CORPORATION
|
Entity Central Index Key |
0001089907
|
Entity Tax Identification Number |
77-0435679
|
Entity Incorporation, State or Country Code |
DE
|
Entity Address, Address Line One |
5956
Sherry Lane
|
Entity Address, Address Line Two |
Suite 650
|
Entity Address, City or Town |
Dallas
|
Entity Address, State or Province |
TX
|
Entity Address, Postal Zip Code |
75255
|
City Area Code |
(972)
|
Local Phone Number |
687-7250
|
Written Communications |
false
|
Soliciting Material |
false
|
Pre-commencement Tender Offer |
false
|
Pre-commencement Issuer Tender Offer |
false
|
Entity Emerging Growth Company |
false
|
Common Stock, par value |
|
Title of 12(b) Security |
Common
Stock, par value
|
Trading Symbol |
SWKH
|
Security Exchange Name |
NASDAQ
|
9.00% Senior Notes Due 2027 |
|
Title of 12(b) Security |
9.00%
Senior Notes Due 2027
|
Trading Symbol |
SWKHL
|
Security Exchange Name |
NASDAQ
|
X |
- DefinitionBoolean flag that is true when the XBRL content amends previously-filed or accepted submission.
+ References
+ Details
Name: |
dei_AmendmentFlag |
Namespace Prefix: |
dei_ |
Data Type: |
xbrli:booleanItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionFor the EDGAR submission types of Form 8-K: the date of the report, the date of the earliest event reported; for the EDGAR submission types of Form N-1A: the filing date; for all other submission types: the end of the reporting or transition period. The format of the date is YYYY-MM-DD.
+ References
+ Details
Name: |
dei_DocumentPeriodEndDate |
Namespace Prefix: |
dei_ |
Data Type: |
xbrli:dateItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionThe type of document being provided (such as 10-K, 10-Q, 485BPOS, etc). The document type is limited to the same value as the supporting SEC submission type, or the word 'Other'.
+ References
+ Details
Name: |
dei_DocumentType |
Namespace Prefix: |
dei_ |
Data Type: |
dei:submissionTypeItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionAddress Line 1 such as Attn, Building Name, Street Name
+ References
+ Details
Name: |
dei_EntityAddressAddressLine1 |
Namespace Prefix: |
dei_ |
Data Type: |
xbrli:normalizedStringItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionAddress Line 2 such as Street or Suite number
+ References
+ Details
Name: |
dei_EntityAddressAddressLine2 |
Namespace Prefix: |
dei_ |
Data Type: |
xbrli:normalizedStringItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- Definition
+ References
+ Details
Name: |
dei_EntityAddressCityOrTown |
Namespace Prefix: |
dei_ |
Data Type: |
xbrli:normalizedStringItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionCode for the postal or zip code
+ References
+ Details
Name: |
dei_EntityAddressPostalZipCode |
Namespace Prefix: |
dei_ |
Data Type: |
xbrli:normalizedStringItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionName of the state or province.
+ References
+ Details
Name: |
dei_EntityAddressStateOrProvince |
Namespace Prefix: |
dei_ |
Data Type: |
dei:stateOrProvinceItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionA unique 10-digit SEC-issued value to identify entities that have filed disclosures with the SEC. It is commonly abbreviated as CIK.
+ ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Exchange Act -Number 240 -Section 12 -Subsection b-2
+ Details
Name: |
dei_EntityCentralIndexKey |
Namespace Prefix: |
dei_ |
Data Type: |
dei:centralIndexKeyItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionIndicate if registrant meets the emerging growth company criteria.
+ ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Exchange Act -Number 240 -Section 12 -Subsection b-2
+ Details
Name: |
dei_EntityEmergingGrowthCompany |
Namespace Prefix: |
dei_ |
Data Type: |
xbrli:booleanItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionCommission file number. The field allows up to 17 characters. The prefix may contain 1-3 digits, the sequence number may contain 1-8 digits, the optional suffix may contain 1-4 characters, and the fields are separated with a hyphen.
+ References
+ Details
Name: |
dei_EntityFileNumber |
Namespace Prefix: |
dei_ |
Data Type: |
dei:fileNumberItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionTwo-character EDGAR code representing the state or country of incorporation.
+ References
+ Details
Name: |
dei_EntityIncorporationStateCountryCode |
Namespace Prefix: |
dei_ |
Data Type: |
dei:edgarStateCountryItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionThe exact name of the entity filing the report as specified in its charter, which is required by forms filed with the SEC.
+ ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Exchange Act -Number 240 -Section 12 -Subsection b-2
+ Details
Name: |
dei_EntityRegistrantName |
Namespace Prefix: |
dei_ |
Data Type: |
xbrli:normalizedStringItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionThe Tax Identification Number (TIN), also known as an Employer Identification Number (EIN), is a unique 9-digit value assigned by the IRS.
+ ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Exchange Act -Number 240 -Section 12 -Subsection b-2
+ Details
Name: |
dei_EntityTaxIdentificationNumber |
Namespace Prefix: |
dei_ |
Data Type: |
dei:employerIdItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionLocal phone number for entity.
+ References
+ Details
Name: |
dei_LocalPhoneNumber |
Namespace Prefix: |
dei_ |
Data Type: |
xbrli:normalizedStringItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionBoolean flag that is true when the Form 8-K filing is intended to satisfy the filing obligation of the registrant as pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act.
+ ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Exchange Act -Number 240 -Section 13e -Subsection 4c
+ Details
Name: |
dei_PreCommencementIssuerTenderOffer |
Namespace Prefix: |
dei_ |
Data Type: |
xbrli:booleanItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionBoolean flag that is true when the Form 8-K filing is intended to satisfy the filing obligation of the registrant as pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act.
+ ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Exchange Act -Number 240 -Section 14d -Subsection 2b
+ Details
Name: |
dei_PreCommencementTenderOffer |
Namespace Prefix: |
dei_ |
Data Type: |
xbrli:booleanItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionTitle of a 12(b) registered security.
+ ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Exchange Act -Number 240 -Section 12 -Subsection b
+ Details
Name: |
dei_Security12bTitle |
Namespace Prefix: |
dei_ |
Data Type: |
dei:securityTitleItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionName of the Exchange on which a security is registered.
+ ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Exchange Act -Number 240 -Section 12 -Subsection d1-1
+ Details
Name: |
dei_SecurityExchangeName |
Namespace Prefix: |
dei_ |
Data Type: |
dei:edgarExchangeCodeItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionBoolean flag that is true when the Form 8-K filing is intended to satisfy the filing obligation of the registrant as soliciting material pursuant to Rule 14a-12 under the Exchange Act.
+ ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Exchange Act -Number 240 -Section 14a -Subsection 12
+ Details
Name: |
dei_SolicitingMaterial |
Namespace Prefix: |
dei_ |
Data Type: |
xbrli:booleanItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionTrading symbol of an instrument as listed on an exchange.
+ References
+ Details
Name: |
dei_TradingSymbol |
Namespace Prefix: |
dei_ |
Data Type: |
dei:tradingSymbolItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionBoolean flag that is true when the Form 8-K filing is intended to satisfy the filing obligation of the registrant as written communications pursuant to Rule 425 under the Securities Act.
+ ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Securities Act -Number 230 -Section 425
+ Details
Name: |
dei_WrittenCommunications |
Namespace Prefix: |
dei_ |
Data Type: |
xbrli:booleanItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- Details
Name: |
us-gaap_StatementClassOfStockAxis=swkh_CommonStockParValueMember |
Namespace Prefix: |
|
Data Type: |
na |
Balance Type: |
|
Period Type: |
|
|
X |
- Details
Name: |
us-gaap_StatementClassOfStockAxis=swkh_Sec9.00SeniorNotesDue2027Member |
Namespace Prefix: |
|
Data Type: |
na |
Balance Type: |
|
Period Type: |
|
|
SWK (NASDAQ:SWKHL)
Historical Stock Chart
Von Dez 2024 bis Jan 2025
SWK (NASDAQ:SWKHL)
Historical Stock Chart
Von Jan 2024 bis Jan 2025