SWK Holdings Corp Files 2023 Annual Report on Form 10-K

TL;DR

<b>SWK Holdings Corp has filed its 2023 annual report (10-K) detailing its financial performance and corporate information.</b>

AI Summary

SWK Holdings Corp (SWKHL) filed a Annual Report (10-K) with the SEC on March 20, 2024. SWK Holdings Corp filed its 2023 10-K report on March 20, 2024. The company's fiscal year ends on December 31st. SWK Holdings Corp was formerly known as KANA SOFTWARE INC and KANA COMMUNICATIONS INC. The company is incorporated in Delaware. Its business and mailing address is 5956 Sherry Lane, Suite 650, Dallas, TX 75225.

Why It Matters

For investors and stakeholders tracking SWK Holdings Corp, this filing contains several important signals. This filing provides a comprehensive overview of SWK Holdings Corp's financial health and operational status for the fiscal year 2023, crucial for investors assessing the company's performance and future prospects. Understanding the details within this 10-K is essential for stakeholders to evaluate the company's financial position, risks, and strategic direction as of December 31, 2023.

Risk Assessment

Risk Level: low — SWK Holdings Corp shows low risk based on this filing. The filing is a standard annual report (10-K) and does not contain immediate, significant new risks or financial disclosures that would alter the company's risk profile.

Analyst Insight

Review the detailed financial statements and risk factors within the 10-K to understand SWK Holdings Corp's performance and potential challenges in fiscal year 2023.

Key Numbers

• 2023-12-31 — Fiscal Year End (Reported period end date)
• 2024-03-20 — Filing Date (Date the 10-K was filed)

Key Players & Entities

• SWK Holdings Corp (company) — Filer name
• KANA SOFTWARE INC (company) — Former company name
• KANA COMMUNICATIONS INC (company) — Former company name
• 20240320 (date) — Filing date
• 20231231 (date) — Fiscal year end
• Dallas, TX (location) — Business address city and state
• 5956 Sherry Lane, Suite 650 (address) — Business address
• 75225 (zip_code) — Business address zip code

FAQ

Industry Context

SWK Holdings Corp operates within the financial services sector, specifically as a business credit institution.

Regulatory Implications

The company is subject to standard SEC regulations for public companies, including the requirement to file annual reports (Form 10-K) detailing financial performance and business operations.

What Investors Should Do

1. Analyze the financial statements within the 10-K for revenue, net income, and balance sheet details.
2. Review the 'Risk Factors' section for any new or updated risks disclosed by SWK Holdings Corp.
3. Examine management's discussion and analysis (MD&A) for insights into the company's performance and outlook.

Key Dates

• 2023-12-31: Fiscal Year End — End of the reporting period for the 10-K.
• 2024-03-20: Filing Date — Date the 10-K was officially submitted to the SEC.

Year-Over-Year Comparison

This is the initial 10-K filing analyzed, so no prior filing data is available for comparison.

Key Financial Figures

• $0.001 — ch Registered Common Stock, par value $0.001 per share SWKH The Nasdaq Stock Mar
• $16.74 — reported on The Nasdaq Stock Market of $16.74 per share. O n March 14, 2024, the Reg
• $50 million — We fill an underserved niche in the sub-$50 million transaction size market. Since many of
• $779.4 million — , funding an aggregate of approximately $779.4 million in various financial products across th
• $25 million — d the full amount of transactions up to $25 million through our working capital. In circu
• $25 m — ces where a transaction is greater than $25 million, we typically seek to syndicate a

Filing Documents

• e24067_swkh-10k.htm (10-K) — 1503KB
• e24067_ex10-21.htm (EX-10.21) — 33KB
• e24067_ex21-1.htm (EX-21.01) — 7KB
• e24067_ex23-1.htm (EX-23.01) — 3KB
• e24067_ex31-1.htm (EX-31.01) — 14KB
• e24067_ex32-1.htm (EX-32.01) — 5KB
• e24067_ex97-01.htm (EX-97.01) — 32KB
• e24067001.jpg (GRAPHIC) — 3KB
• 0001552781-24-000162.txt (&nbsp;) — 7731KB
• swkh-20231231.xsd (EX-101.SCH) — 43KB
• swkh-20231231_cal.xml (EX-101.CAL) — 77KB
• swkh-20231231_def.xml (EX-101.DEF) — 224KB
• swkh-20231231_lab.xml (EX-101.LAB) — 392KB
• swkh-20231231_pre.xml (EX-101.PRE) — 356KB
• e24067_swkh-10k_htm.xml (XML) — 1291KB

Business

Business 1 Item 1A Risk Factors 5 Item 1B Unresolved Staff Comments 25 Item 1C Cybersecurity 25 Item 2

Properties

Properties 25 Item 3 Legal Proceedings 25 Item 4 Mine Safety Disclosures 25 PART II. Item 5 Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 26 Item 6 Reserved 27 Item 7 Management's Discussion and Analysis of Financial Condition and Results of Operations 28 Item 7A Quantitative and Qualitative Disclosures about Market Risk 38 Item 8 Financial 39 Item 9 Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 80 Item 9A Controls and Procedures 80 Item 9B Other Information 81 Item 9C Disclosure Regarding Foreign Jurisdictions that Prevent Inspection 81 PART III. Item 10 Directors, Executive Officers and Corporate Governance 82 Item 11 Executive Compensation 82 Item 12 Security 82 Item 13 Certain Relationships and Related Transactions, and Director Independence 82 Item 14 Principal Accountant Fees and Services 82 PART IV. Item 15 Exhibits and Financial Statement Schedules 83 Item 16 Form 10-K Summary 84

Signatures

Signatures 85 Exhibit Index 86 PART I Special Note Regarding Forward-Looking In addition to historical information, this Annual Report on Form 10-K ("Annual 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 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," 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-l

BUSINESS

ITEM 1. BUSINESS Overview SWK Holdings Corporation (the "Company," "we," or "us") was incorporated in July 1996 in California and reincorporated in Delaware in September 1999. In July 2012, we commenced a strategy of building a specialty finance and asset management business. In August 2019, we commenced a complementary strategy of building a pharmaceutical development, manufacturing and intellectual property licensing business. Our operations comprise two reportable segments: "Finance Receivables" and "Pharmaceutical Development." We evaluate and invest in a broad range of healthcare related companies and products with innovative intellectual property, including the biotechnology, medical device, medical diagnostics and related tools, animal health and pharmaceutical industries (collectively, "life science"). We allocate capital to each segment in order to generate income through the sales of life science products by third parties and related earned income sources. We are headquartered in Dallas, Texas. 1 Finance Receivables Segment Our Finance Receivables segment strategy is to be a leading healthcare capital provider by offering customized financing solutions to a broad range of life science companies, institutions and inventors. This segment is primarily focused on monetizing cash flow streams derived from commercial-stage products and related intellectual property through royalty purchases and financings, as well as through the creation of synthetic revenue interests in commercialized products. Our business partners are primarily engaged in selling products that directly or indirectly treat diseases and/or improve the wellness of people or animals, or they receive royalties paid on the sales of such products. For example, our biotechnology and pharmaceutical business partners commercialize medicines that treat disease states, whereas our life science tools partners sell a wide variety of research instrumentation to help other companies conduct clinical

RISK FACTORS

ITEM 1A. RISK FACTORS An investment in our common stock involves significant risks. You should carefully consider the risks and uncertainties and the risk factors set forth in the documents and reports filed with the SEC and the risks described below before you make an investment decision regarding our common stock. Additional risks and uncertainties not presently known to us or that we currently deem immaterial may also affect our business operations. Risks Related to Finance Receivables Segment We may suffer losses on our principal invested in credit and royalty transactions. Most of the assets of our Finance Receivables segment are, and are expected to continue to be, royalty streams or debt backed by royalty streams or revenue interests paid by small and middle-market life science businesses, which are highly speculative and involve a high degree of risk of credit loss. In addition, we own royalties or invest in debt backed by royalties or revenue interests that are derived by pharmaceutical and biologic products that are early in their commercial launch, face intense competition or are subject to other risks, which similarly involve a high degree of risk of principal loss. If the underlying products do not generate anticipated revenues, we may suffer a loss of our investment. In addition, the small and middle-market companies that we target to advance debt are subject to a number of other significant risks, including: these companies may have limited financial resources and may be unable to meet their obligations under their financial instruments that we hold, which may be accompanied by a deterioration in the value of their assets or of any collateral with respect to any financial obligations and a reduction in the likelihood of our realization of any guarantees we may have obtained in connection with our investment; they may have shorter operating histories, narrower product lines and smaller market shares than larger businesses, which tend to r

View Full Filing

View this 10-K filing on SEC EDGAR