Company: SWKH
Filing Date: 2025-04-29
Form Type: ARS
Source: 0001628280-25-020753
Chunk: 105

Company: SWK Holdings Corp
Filing Date: 2025-04-29
Form: ARS
Chunk 105
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4,884 |     | $    | -1,274 |

The components of the income tax expense (benefit) are as follows (in thousands):

|                                                |     | December 31, |   2024 |     |   |   2023 |
|:-----------------------------------------------|:----|:-------------|-------:|:----|:--|-------:|
| Federal tax provision at statutory rate        |     | $            |  3,858 |     | $ |  3,070 |
| Change in valuation allowance                  |     |              |      — |     |   | -6,697 |
| State taxes, net of federal income tax benefit |     |              |    -13 |     |   |    -52 |
| Impairment of goodwill                         |     |              |      — |     |   |  1,765 |
| Mark-to-market adjustments                     |     |              |   -476 |     |   |    -50 |
| Tax credits                                    |     |              |     -4 |     |   |   -167 |
| Contingent consideration revaluation           |     |              | -1,029 |     |   | -1,323 |
| Other                                          |     |              |    143 |     |   |    116 |
| Write off of expired deferred tax assets       |     |              |  2,405 |     |   |  2,064 |
| Total income tax expense (benefit)             |     | $            |  4,884 |     | $ | -1,274 |

The Company records deferred tax assets if the realization of such assets is more likely than not to occur in accordance with accounting standards that address income taxes. Significant management judgment is required in determining whether a valuation allowance against the Company’s deferred tax assets is required. The Company has considered all available evidence, both positive and negative, such as historical levels of income and predictability of future forecasts of taxable income from existing investments, in determining whether a valuation allowance is required. The Company is also required to forecast future taxable income in accordance with accounting standards that address income taxes to assess the appropriateness of a valuation allowance, which further requires the

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exercise of significant management judgment. The Company focuses on forecasting future taxable income for the investment portfolio that exists as of the balance sheet date. Specifically, the Company evaluated the following criteria when considering a valuation allowance: