Company: SWKH
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001628280-25-025955
Chunk: 55

Company: SWK Holdings Corp
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 8
Chunk 55
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 the footnotes to the consolidated financial statements. The standard requires disaggregation of any relevant expense caption presented on the face of the income statement that contains the following expense categories: purchases of inventory, employee compensation, depreciation (including amortization of leasehold improvements), intangible asset amortization, and depletion expense. Further, the standard requires disclosure of the total amount and the entity's definition of selling expenses. The ASU is effective for fiscal years beginning with its annual financial statements for the year ended December 31, 2027. The Company is currently evaluating the impact of this ASU on its consolidated financial statements and related disclosures.

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Note 2. Net Income Per Share

Basic net income per share is computed using the weighted-average number of outstanding shares of common stock. Diluted net income per share is computed using the weighted-average number of outstanding shares of common stock, and when dilutive, shares of common stock issuable upon exercise of options and warrants deemed outstanding using the treasury stock method.The following table shows the computation of basic and diluted net income per share for the following periods (in thousands, except per share amounts):Three Months EndedMarch 31,20252024Numerator:Net income$4,539 $468 Denominator:Weighted-average shares outstanding12,229 12,475 Effect of dilutive securities11 21 Weighted-average diluted shares12,240 12,496 Basic net income per share$0.37 $0.04 Diluted net income per share$0.37 $0.04 For the three months ended March 31, 2025 and 2024, outstanding options to purchase shares of common stock in an aggregate of approximately 38,000 and 47,000, respectively, have been excluded from the calculation of diluted net income per share, as such securities were anti-dilutive.

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Note 3. Finance Receivables

Finance receivablesFinance receivables exclusive of finance receivables held for sale ("Finance Receivables"), are reported at their determined principal balances net of any unearned income, cumulative write offs charged against the allowance for credit losses, and unamortized deferred fees and costs. Unearned income and deferred fees and costs are amortized to interest income based on all cash flows expected using the effective interest method. For details on Finance receivables held for sale see Note 4.The carrying values of finance receivables were as follows (in thousands): March 31,