swkh-20250331

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the Quarterly Period Ended March 31, 2025

o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Commission File Number: 001-39184

SWK Holdings Corporation

(Exact Name of Registrant as Specified in its Charter)


Delaware			77-0435679
(State or Other Jurisdiction of Incorporation or Organization)			(I.R.S. Employer Identification No.)

5956 Sherry Lane, Suite 650
Dallas, TX			75225
(Address of Principal Executive Offices)			(Zip Code)

(Registrant’s Telephone Number, Including Area Code): (972) 687-7250

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 (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. x Yes o No

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). x Yes o No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act:

Large Accelerated Filer o

Accelerated Filer o

Non-Accelerated Filer x

Smaller Reporting Company x

Emerging Growth Company o

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. o

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). o Yes x No

As of May 7, 2025, there were 12,269,614 shares of the registrant’s Common Stock, $0.001 par value per share, outstanding.

SWK Holdings Corporation

Form 10-Q

Quarter Ended March 31, 2025

Table of Contents


PART I. FINANCIAL INFORMATION

Item 1.	Financial Statements	1

	Unaudited Condensed Consolidated Balance Sheets—March 31, 2025 and December 31, 2024	1

	Unaudited Condensed Consolidated Statements of Income—Three Months Ended March 31, 2025 and 2024	2

	Unaudited Condensed Consolidated Statements of Stockholders' Equity—Three Months Ended March 31, 2025 and 2024	3

	Unaudited Condensed Consolidated Statements of Cash Flows—Three Months Ended March 31, 2025 and 2024	4

	Notes to the Unaudited Condensed Consolidated Financial Statements	5

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	23

Item 3.	Quantitative and Qualitative Disclosures About Market Risk	30

Item 4	Controls and Procedures	30

PART II. OTHER INFORMATION

Item 1.	Legal Proceedings	31

Item 1A.	Risk Factors	31

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds.	31

Item 3.	Defaults Upon Senior Securities	31

Item 4.	Mine Safety Disclosures	31

Item 5.	Other Information	32

Item 6.	Exhibits	33

	Signatures	35

FORWARD-LOOKING STATEMENTS

In addition to historical information, this report contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. From time to time, we may also provide oral or written forward-looking statements in other materials we release to the public. Such forward-looking statements are subject to the safe harbor created by the Private Securities Litigation Reform Act of 1995. The forward-looking statements are not historical facts but rather are based on current expectations, estimates and projections about our business and industry, and our beliefs and assumptions, and include, but are not limited to, statements under the heading “Management’s Discussion and Analysis of Financial Condition and Results of Operations.” Words such as “anticipate,” “believe,” “could,” “estimate,” “expects,” “intend,” “may,” “plan,” “should,” “will” and variations of these words and similar expressions identify forward-looking statements. These statements are not guarantees of future performance and are subject to risks, uncertainties and other factors, many of which are beyond our control, are difficult to predict and could cause actual results to differ materially (both favorably and unfavorably) from those expressed or forecasted in the forward-looking statements.

These risks and uncertainties include, but are not limited to, those described in Item 1A, “Risk Factors,” those described in Item 1A. "Risk Factors in our Annual Report on Form 10-K for the year ended December 31, 2024, and elsewhere in this report. Forward-looking statements that were believed to be true at the time made may ultimately prove to be incorrect or false. We undertake no obligation to revise or publicly release the results of any revision to these forward-looking statements. Given these risks and uncertainties, readers are cautioned not to place undue reliance on such forward-looking statements.

PART I. FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

SWK HOLDINGS CORPORATION

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands, except par value and share data)


	March 31, 2025		December 31, 2024
Assets:
Current assets:
Cash and cash equivalents	$	29,809	$	5,927

Interest, accounts receivable and other receivables, net	4,676		5,788

Assets held for sale, net (Note 4)	6,409		6,398
Finance receivables and related interest receivable held for sale (Note 4)	33,990		—
Other current assets	1,054		2,141
Total current assets	75,938		20,254

Finance receivables, net of allowance for credit losses of $8,785 and $11,249 as of March 31, 2025 and December 31, 2024, respectively	223,076		277,760
Collateral on foreign currency forward contract	2,750		2,750
Marketable investments	455		580
Deferred tax assets, net	22,219		23,484
Warrant assets	4,245		4,366

Property and equipment, net	28		48
Other non-current assets	2,553		2,993
Total assets	$	331,264	$	332,235

Liabilities and Stockholders' Equity:
Current liabilities:
Accounts payable and accrued liabilities	$	2,045	$	2,810
Liabilities held for sale (Note 4)	1,325		1,255
Deferred income	3,349		1,500
Total current liabilities	6,719		5,565


Unsecured senior notes, net	31,567		31,412
Revolving credit facility	—		6,233
Other non-current liabilities	309		335
Total liabilities	38,595		43,545

Commitments and contingencies (Note 7)

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; 12,222,522 and 12,213,599 shares issued and outstanding as of March 31, 2025 and December 31, 2024, respectively	12		12
Additional paid-in capital	4,419,431		4,419,991
Accumulated deficit	(4,126,774)		(4,131,313)
Total stockholders' equity	292,669		288,690
Total liabilities and stockholders' equity	$	331,264	$	332,235

See accompanying notes to the unaudited condensed consolidated financial statements.

SWK HOLDINGS CORPORATION

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(in thousands, except per share data)


	Three Months Ended March 31,
		2025		2024
Revenues:
Finance receivable interest income, including fees		$	10,712	$	11,035
Pharmaceutical development		963		279
Other		157		46
Total revenues		11,832		11,360
Costs and expenses:
Provision (benefit) for credit losses		(1,465)		5,297

Interest expense		1,130		1,256
Pharmaceutical manufacturing, research and development expense		758		530

Depreciation and amortization expense		19		514
General and administrative expense		3,277		2,684
Income from operations		8,113		1,079
Other income (expense), net
Unrealized net loss on warrants		(424)		(95)
Net loss on exercise and cancellation of warrants		—		(143)
Loss on sale of assets		(82)		—
Net loss on marketable investments		(105)		(231)
Realized gain on early payment of finance receivable		1,729		—
Loss on revaluation of finance receivables held for sale		(3,727)		—
Realized and unrealized foreign currency transaction gains		313		87
Income before income tax expense		5,817		697
Income tax expense		1,278		229
Net income		$	4,539	$	468

Net income per share
Basic		$	0.37	$	0.04
Diluted		$	0.37	$	0.04
Weighted average shares outstanding
Basic		12,229		12,475
Diluted		12,240		12,496

See accompanying notes to the unaudited condensed consolidated financial statements.

SWK HOLDINGS CORPORATION

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY

(in thousands, except share data)


	Three Months Ended March 31, 2025
	Common Stock			Additional Paid-In Capital		Accumulated Deficit		Total Stockholders' Equity
	Shares	Amount
Balances at December 31, 2024	12,213,599	$	12	$	4,419,991	$	(4,131,313)	$	288,690
Stock-based compensation	—	—		307		—		307

Issuance of restricted common stock	61,260	—		—		—		—
Repurchases of common stock in open market	(52,337)	—		(867)		—		(867)
Net income	—	—		—		4,539		4,539
Balances at March 31, 2025	12,222,522	12		4,419,431		(4,126,774)		292,669


	Three Months Ended March 31, 2024
	Common Stock			Additional Paid-In Capital		Accumulated Deficit		Total Stockholders' Equity
	Shares	Amount
Balances at December 31, 2023	12,497,770	$	12	$	4,425,104	$	(4,144,801)	$	280,315
Stock-based compensation	—	—		111		—		111
Issuance of restricted common stock	48,918	—		—		—		—
Forfeiture of unvested restricted stock	(6,446)	—		—		—		—
Repurchases of common stock in open market	(58,298)	—		(999)		—		(999)
Net income	—	—		—		468		468
Balances at March 31, 2024	12,481,944	12		4,424,216		(4,144,333)		279,895

See accompanying notes to the unaudited condensed consolidated financial statements.

SWK HOLDINGS CORPORATION

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)


	Three Months Ended March 31,
	2025		2024
Cash flows from operating activities:
Net income	$	4,539	$	468
Adjustments to reconcile net income to net cash provided by operating activities:

SEC Form 10-Q filed by SWK Holdings Corporation