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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): August 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 |
75225 |
(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 August 15, 2024, reporting SWK Holdings Corporation’s 2024 Second 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. |
SIGNATURES
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 |
|
(Principal Executive Officer) |
|
|
By: |
/s/ Adam Rice |
|
Adam Rice |
|
Chief Financial Officer |
|
(Principal Financial and Accounting Officer) |
Date: August 15, 2024
Exhibit 99.1
![](https://www.sec.gov/Archives/edgar/data/1089907/000155278124000494/e24351001.jpg)
SWK
Holdings Corporation Announces Financial Results for Second Quarter 2024
Conference
Call Scheduled for Friday, August 16, 2024, at 09:00 a.m. CST
Corporate
Highlights
| · | Second
quarter 2024 GAAP net income was $4.4 million, compared with net income of $3.9 million
for the second quarter 2023 |
| · | Second
quarter 2024 finance receivables segment adjusted non-GAAP net income was $6.5 million,
compared with adjusted non-GAAP net income of $7.6 million for the second quarter 2023 |
| · | As
of June 30, 2024, net finance receivables were $265.5 million, a 19.0% increase from
June 30, 2023 |
| · | The
second quarter 2024 effective yield was 14.6%, a 10 bps increase from second quarter
2023 |
| · | As
of June 30, 2024, non-GAAP tangible financing book value per share was $20.17, a 6.3%
increase from $18.95 at June 30, 2023 |
Dallas, TX,
August 16, 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 second quarter ended June 30, 2024.
“For the
second quarter 2024, our core Finance Receivables segment reported a 15.3% increase in revenue to $10.7 million. Our finance segment
generated $3.3 million of GAAP net income and $6.5 million of adjusted non-GAAP net income as strong performance from the majority
of our portfolio was partially offset by a $4.1 million provision for credit losses driven by impairments on two non-accrual loans.
Positive developments in the portfolio include a $2.5 million increase in the carrying value of Illuvien as a result of entering
into an amendment with the marketer as well as a $0.7 million gain from the conversion of private warrants in AOTI, Inc. to common
stock as the company completed an initial public offering during the quarter.” said Jody Staggs, President and CEO of SWK.
Mr. Staggs concluded:
“In August we closed an up to $11 million royalty financing to Relief Therapeutics. The custom solution monetized three discrete
royalty streams, providing capital to Relief to advance its clinical pipeline while giving SWK a diversified stream of royalties.
For the remainder of 2024 we are focused on closing similar loan and royalty financings to innovative life science partners, working
with our non-accrual borrowers to achieve positive outcomes, supporting the team at Enteris as it collaborates with our strategic
partner to build value.”
Second Quarter 2024 Financial
Results
For the second
quarter 2024, SWK reported total revenue of $11.5 million, a 21.1% increase compared to $9.5 million for the second quarter 2023.
The $2.0 million increase in revenue for the three months ended June 30, 2024 consisted of a $1.4 million increase in Finance
Receivables segment revenue and a $0.6 million increase in Pharmaceutical Development segment revenue.
Income before
income tax expense for the quarter was $5.4 million for both the three months ended June 30, 2024 and 2023. Although consistent,
second quarter 2024 income before income tax expense benefited from a $2.0 million increase in consolidated revenue from interest
and fees earned due to funding new loans, a $4.9 million gain from the write off of acquisition-related contingent consideration
previously due under the Cara licensing agreement, and a $2.5 million gain on revaluation of Iluvien royalty resulting from an
amendment signed in 2Q24, offset by a $5.8 million impairment of the Cara License intangible asset due to cancellation of the
related clinical trial, a $2.1 million impairment on our Trio loan, and a $2.2 million impairment on our Exeevo loan directly
recorded to the provision for credit losses during 2Q24.
GAAP net income
for the quarter ended June 30, 2024, increased to $4.4 million, or $0.35 per diluted share, from $3.9 million, or $0.31 per diluted
share, for the second quarter 2023.
For the second
quarter 2024 and 2023, non-GAAP adjusted net income was $5.8 million, or $0.47 per share. Non-GAAP adjusted net income for the
Finance Receivables segment was $6.5 million, a decrease from $7.6 million for the second quarter 2023.
Total
investment assets (defined as finance receivables, marketable investments, and warrant assets less the allowance for credit losses)
totaled $267.0 million as of June 30, 2024. A 19.0% increase compared with total investment assets of $224.5 million as of June
30, 2023. The allowance for credit loss at quarter’s end totaled $13.1 million, an increase from $11.1 million in the second
quarter of 2023.
GAAP
book value per share was $22.75 as of June 30, 2024, a 4.4% increase compared to $21.79 as of June 30, 2023. Non-GAAP tangible
financing book value per share totaled $20.17, a 6.4% increase compared to $18.95 at June 30, 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.
Portfolio
Status
SWK did not
close any new financings during the quarter ended June 30, 2024 and advanced $7.0 million to existing borrowers. Subsequent
to June 30, 2024, SWK closed an up to $11.0 million royalty monetization with $5.8 million
advanced at close.
The second quarter
2024 realized yield was 15.4%, unchanged from the second quarter of 2023. 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 June 30,
2024, non-accrual finance receivables totaled $22.4 million. Of the total $22.4 million, $10.4 million consisted of a non-accrual
financing originally to Flowonix Medical, $4.5 million consisted of a loan to Exeevo, $3.6 million consisted of a royalty purchase
originally to Ideal Implant, and $2.4 million consisted of a royalty to Best ABT, Inc, and $1.5 million consisted of a loan to
Trio Healthcare.
As of June 30, 2024, SWK had $5.0
million of unfunded commitments, and after quarter close SWK added an additional $10.3 million of unfunded commitments.
Total portfolio
investment activity for the three months ended June 30, 2024, and 2023 was as follows (in thousands):
| |
Three Months Ended June 30, | |
| |
2024 | | |
2023 | |
Beginning Portfolio | |
$ | 262,288 | | |
$ | 237,787 | |
(Provision) benefit for credit losses and impairments | |
| (4,074 | ) | |
| 682 | |
Interest paid-in-kind | |
| 904 | | |
| 606 | |
Investment in finance receivables | |
| 7,000 | | |
| 111 | |
Loan discount and fee accretion | |
| 1,354 | | |
| 454 | |
Net unrealized gain on marketable investments and warrant assets | |
| 226 | | |
| 399 | |
Warrant and equity investments, net of sales and cancellations | |
| 44 | | |
| 377 | |
Fair value remeasurement of finance receivable | |
| (1,339 | ) | |
| (864 | ) |
Principal payments received on investments | |
| (1,703 | ) | |
| (154 | ) |
Royalty paydowns | |
| (815 | ) | |
| (988 | ) |
Gain on revaluation of investment receivable | |
| 2,495 | | |
| — | |
Sale of finance receivables | |
| — | | |
| (13,942 | ) |
Net realized gain on exercise of warrants | |
| 656 | | |
| — | |
Ending Portfolio | |
$ | 267,036 | | |
$ | 224,468 | |
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 June 30, 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 June 30, | |
| |
2024 | | |
2023 | |
Net income | |
$ | 4,395 | | |
$ | 3,934 | |
Add: Income tax expense | |
| 1,035 | | |
| 1,454 | |
Add: Enteris amortization expense | |
| 196 | | |
| 426 | |
Subtract: Unrealized net gain on warrants assets | |
| (226 | ) | |
| (399 | ) |
Add: Foreign currency transaction gain | |
| (437 | ) | |
| (316 | ) |
Add: Intangible asset impairment expense (Cara License) | |
| 5,771 | | |
| — | |
Add: Change in fair value of acquisition related contingent consideration (Cara License) | |
| (4,900 | ) | |
| — | |
Adjusted income before income tax (benefit) expense | |
| 5,834 | | |
| 5,099 | |
Adjusted income tax (benefit) expense | |
| — | | |
| — | |
Non-GAAP net income | |
$ | 5,834 | | |
$ | 5,099 | |
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) impairment/write off of Cara license
and associated change in fair value of contingent considerable payable, and (v) foreign currency 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 June
30, 2024 and 2023. The table eliminates Enteris operating 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, amortization of Enteris intangible
assets, intangible asset impairment expense, foreign currency transaction gains, and any non-cash impact on the remeasurement
of contingent consideration.
| |
Three Months Ended June 30, | |
| |
2024 | | |
2023 | |
Non-GAAP net income | |
$ | 5,834 | | |
$ | 5,099 | |
Add: Enteris operating loss, excluding amortization expense and change in fair value of contingent consideration | |
| 670 | | |
| 2,515 | |
Adjusted Finance Receivable segment income before income expense | |
$ | 6,504 | | |
$ | 7,614 | |
Adjusted income tax (benefit) expense | |
| — | | |
| — | |
Finance Receivables segment adjusted non-GAAP net income | |
$ | 6,504 | | |
$ | 7,614 | |
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
June 30, 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 June 30, | |
| |
2024 | | |
2023 | |
GAAP stockholder’s equity | |
$ | 283,204 | | |
$ | 273,884 | |
Shares outstanding | |
| 12,447 | | |
| 12,567 | |
GAAP book value per share | |
$ | 22.75 | | |
$ | 21.79 | |
| |
| | | |
| | |
Less: Deferred tax assets, net | |
| (27,052 | ) | |
| (25,689 | ) |
Less: Intangible assets, net | |
| (232 | ) | |
| (7,339 | ) |
Less: Goodwill | |
| — | | |
| (8,404 | ) |
Less: Enteris Property and equipment, net | |
| (4,921 | ) | |
| (5,492 | ) |
Plus: Contingent consideration payable | |
| — | | |
| 11,200 | |
Non-GAAP tangible finance book value | |
| 250,999 | | |
| 238,160 | |
Shares outstanding | |
| 12,447 | | |
| 12,567 | |
Non-GAAP Tangible book value per share | |
$ | 20.17 | | |
$ | 18.95 | |
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, (iv) intangible asset impairment expense, and (v) 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 on Friday, August 16, 2024, at 9:00 a.m. CST, to discuss its corporate and financial results for the
second 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:
| 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. CT, on August
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:
Investor Relations and Media
Ira M. Gostin
investorrelations@swkhold.com
SWK HOLDINGS
CORPORATION
UNAUDITED
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands,
except share data)
| |
June 30, 2024 | | |
December 31, 2023 | |
Assets: | |
| | | |
| | |
Current assets: | |
| | | |
| | |
Cash and cash equivalents | |
$ | 5,549 | | |
$ | 4,503 | |
Restricted cash | |
| — | | |
| 733 | |
Interest, accounts receivable and other receivables, net | |
| 7,384 | | |
| 4,729 | |
Other current assets | |
| 1,859 | | |
| 1,904 | |
Total current assets | |
| 14,792 | | |
| 11,869 | |
| |
| | | |
| | |
Finance receivables, net of allowance for credit losses of $13,083 and $13,901 as of June 30, 2024 and December 31, 2023, respectively | |
| 265,470 | | |
| 274,504 | |
Collateral on foreign currency forward contract | |
| 2,750 | | |
| 2,750 | |
Marketable investments | |
| 731 | | |
| 48 | |
Deferred tax assets, net | |
| 27,052 | | |
| 28,290 | |
Warrant assets | |
| 835 | | |
| 1,759 | |
Intangible assets, net | |
| 232 | | |
| 6,487 | |
Property and equipment, net | |
| 5,008 | | |
| 5,438 | |
Other non-current assets | |
| 4,504 | | |
| 3,109 | |
Total assets | |
$ | 321,374 | | |
$ | 334,254 | |
| |
| | | |
| | |
Liabilities and Stockholders’ Equity:
| |
| | | |
| | |
Current liabilities: | |
| | | |
| | |
Accounts payable and accrued liabilities | |
$ | 3,310 | | |
$ | 3,935 | |
Total current liabilities | |
| 5,526 | | |
| 3,944 | |
| |
| | | |
| | |
Contingent consideration payable | |
| — | | |
| 4,900 | |
Unsecured senior notes, net | |
| 31,078 | | |
| 30,781 | |
Revolving credit facility | |
| — | | |
| 12,350 | |
Other non-current liabilities | |
| 1,566 | | |
| 1,964 | |
Total liabilities | |
| 38,170 | | |
| 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; 12,447,195 and 12,497,770 shares issued and outstanding as of June 30, 2024 and December 31, 2023, respectively | |
| 12 | | |
| 12 | |
Additional paid-in capital | |
| 4,423,472 | | |
| 4,425,104 | |
Accumulated deficit | |
| (4,140,280 | ) | |
| (4,144,801 | ) |
Total stockholders’ equity | |
| 283,204 | | |
| 280,315 | |
Total liabilities and stockholders’ equity | |
$ | 321,374 | | |
$ | 334,254 | |
SWK HOLDINGS
CORPORATION
UNAUDITED
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(in thousands,
except per share data)
| |
Three Months Ended June 30, | | |
Six Months Ended June 30, | |
| |
2024 | | |
2023 | | |
2024 | | |
2023 | |
Revenues: | |
| | | |
| | | |
| | | |
| | |
Finance receivable interest income, including fees | |
$ | 10,680 | | |
$ | 9,278 | | |
$ | 21,399 | | |
$ | 18,538 | |
Pharmaceutical development | |
| 804 | | |
| 183 | | |
| 1,083 | | |
| 301 | |
Other | |
| 57 | | |
| 36 | | |
| 103 | | |
| 69 | |
Total revenues | |
| 11,541 | | |
| 9,497 | | |
| 22,585 | | |
| 18,908 | |
Costs and expenses: | |
| | | |
| | | |
| | | |
| | |
Provision (benefit) for credit losses | |
| 4,074 | | |
| (682 | ) | |
| 9,397 | | |
| (682 | ) |
Loss on impairment of intangibles assets | |
| 5,771 | | |
| — | | |
| 5,771 | | |
| — | |
Interest expense | |
| 1,119 | | |
| 363 | | |
| 2,375 | | |
| 545 | |
Pharmaceutical manufacturing, research and development expense | |
| 520 | | |
| 1,509 | | |
| 1,050 | | |
| 2,228 | |
Change in fair value of acquisition-related contingent consideration | |
| (4,900 | ) | |
| — | | |
| (4,900 | ) | |
| — | |
Depreciation and amortization expense | |
| 421 | | |
| 637 | | |
| 935 | | |
| 1,285 | |
General and administrative expense | |
| 2,923 | | |
| 2,997 | | |
| 5,607 | | |
| 5,537 | |
Income from operations | |
| 1,613 | | |
| 4,673 | | |
| 2,350 | | |
| 9,995 | |
Other income (expense), net | |
| | | |
| | | |
| | | |
| | |
Unrealized net gain (loss) on warrants | |
| 226 | | |
| 399 | | |
| 131 | | |
| (583 | ) |
Net realized gain on sale of marketable investments | |
| 656 | | |
| — | | |
| 513 | | |
| — | |
Realized gain (loss) on sale of assets | |
| 3 | | |
| — | | |
| (228 | ) | |
| — | |
Gain on revaluation of finance receivable | |
| 2,495 | | |
| — | | |
| 2,495 | | |
| — | |
Realized and unrealized foreign currency transaction gains | |
| 437 | | |
| 316 | | |
| 524 | | |
| 502 | |
Income before income tax expense | |
| 5,430 | | |
| 5,388 | | |
| 5,785 | | |
| 9,914 | |
Income tax expense | |
| 1,035 | | |
| 1,454 | | |
| 1,264 | | |
| 1,345 | |
Net income | |
$ | 4,395 | | |
$ | 3,934 | | |
$ | 4,521 | | |
$ | 8,569 | |
| |
| | | |
| | | |
| | | |
| | |
Net income per share | |
| | | |
| | | |
| | | |
| | |
Basic | |
$ | 0.35 | | |
$ | 0.31 | | |
$ | 0.36 | | |
$ | 0.67 | |
Diluted | |
$ | 0.35 | | |
$ | 0.31 | | |
$ | 0.36 | | |
$ | 0.67 | |
Weighted average shares outstanding | |
| | | |
| | | |
| | | |
| | |
Basic | |
| 12,457 | | |
| 12,741 | | |
| 12,466 | | |
| 12,787 | |
Diluted | |
| 12,528 | | |
| 12,785 | | |
| 12,534 | | |
| 12,830 | |
SWK HOLDINGS
CORPORATION
UNAUDITED
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
| |
Six Months Ended June 30, | |
| |
2024 | | |
2023 | |
Cash flows from operating activities: | |
| | | |
| | |
Net income | |
$ | 4,521 | | |
$ | 8,569 | |
Adjustments to reconcile net income to net cash provided by operating activities: | |
| | | |
| | |
Provision (benefit) for credit losses | |
| 9,397 | | |
| (682 | ) |
Loss on impairment of intangible assets | |
| 5,771 | | |
| — | |
Right-of-use amortization and cease use costs | |
| 261 | | |
| 156 | |
Amortization of debt issuance costs | |
| 491 | | |
| 168 | |
Deferred income taxes, net | |
| 1,239 | | |
| 1,316 | |
Net change in fair value of warrant assets | |
| (131 | ) | |
| 583 | |
Net realized gain on exercise of warrants | |
| (513 | ) | |
| — | |
Realized loss from sale of assets | |
| 228 | | |
| — | |
Change in fair value of acquisition-related contingent consideration | |
| (4,900 | ) | |
| — | |
Gain on revaluation of finance receivable | |
| (2,495 | ) | |
| — | |
Foreign currency transaction gain | |
| (327 | ) | |
| (516 | ) |
Loan discount amortization and fee accretion | |
| (2,592 | ) | |
| (2,297 | ) |
Interest paid-in-kind | |
| (904 | ) | |
| (957 | ) |
Stock-based compensation | |
| 360 | | |
| 199 | |
Depreciation and amortization expense | |
| 935 | | |
| 1,285 | |
Changes in operating assets and liabilities: | |
| | | |
| | |
Interest, accounts receivable and other receivables | |
| (2,655 | ) | |
| (1,287 | ) |
Other assets | |
| (150 | ) | |
| (792 | ) |
Accounts payable, accrued expenses, and other non-current liabilities | |
| (900 | ) | |
| (354 | ) |
Deferred income | |
| 2,207 | | |
| (3 | ) |
Net cash provided by operating activities | |
| 9,843 | | |
| 5,388 | |
| |
| | | |
| | |
Cash flows from investing activities: | |
| | | |
| | |
Sale of finance receivables | |
| — | | |
| 13,942 | |
Sale of marketable investments | |
| 574 | | |
| | |
Investment in finance receivables | |
| (7,446 | ) | |
| (13,101 | ) |
Repayment of finance receivables | |
| 11,693 | | |
| 3,041 | |
Corporate debt securities principal payments | |
| 13 | | |
| 17 | |
Purchases of property and equipment | |
| (21 | ) | |
| (191 | ) |
Net cash provided by investing activities | |
| 4,813 | | |
| 3,708 | |
| |
| | | |
| | |
Cash flows from financing activities: | |
| | | |
| | |
Net settlement for employee taxes on stock options | |
| (43 | ) | |
| — | |
Net payments on credit facility | |
| (12,350 | ) | |
| (2,445 | ) |
Payments for financing costs | |
| — | | |
| (872 | ) |
Repurchases of common stock, including fees and expenses | |
| (1,950 | ) | |
| (5,130 | ) |
Net cash used in financing activities | |
| (14,343 | ) | |
| (8,447 | ) |
Net increase in cash, cash equivalents, and restricted cash | |
| 313 | | |
| 649 | |
Cash, cash equivalents, and restricted cash at beginning of period | |
| 5,236 | | |
| 6,156 | |
Cash, cash equivalents, and restricted cash at end of period | |
$ | 5,549 | | |
$ | 6,805 | |
| |
| | | |
| | |
Supplemental non-cash activity: | |
| | | |
| | |
Derecognition of ROU assets to operating lease liabilities upon termination of lease | |
$ | 82 | | |
$ | — | |
v3.24.2.u1
Cover
|
Aug. 15, 2024 |
Document Type |
8-K
|
Amendment Flag |
false
|
Document Period End Date |
Aug. 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 |
75225
|
City Area Code |
(972)
|
Local Phone Number |
687-7250
|
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false
|
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false
|
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false
|
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false
|
Entity Emerging Growth Company |
false
|
Common Stock, par value |
|
Title of 12(b) Security |
Common
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|
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
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SWK (NASDAQ:SWKH)
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부터 7월(7) 2024 으로 8월(8) 2024
SWK (NASDAQ:SWKH)
과거 데이터 주식 차트
부터 8월(8) 2023 으로 8월(8) 2024