Company: SWKH
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0001628280-25-050155
Chunk: 70

Company: SWK Holdings Corp
Filing Date: 2025-11-06
Form: 10-Q
Item: Part I, Item 8
Chunk 70
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,2025202420252024Net income (loss) before taxes$660 $(892)$144 $(4,084)Agreement and Plan of Merger

On October 9, 2025, the Company, entered into an Agreement and Plan of Merger (the “Merger Agreement”) with Runway Growth Finance Corp., a Maryland corporation (“Parent”), RWAY Portfolio Holding Corp., a Delaware corporation and a direct wholly owned subsidiary of Parent (“Intermediary Sub”), RWAY Portfolio Corp., a Delaware corporation and a direct wholly owned subsidiary of Intermediary Sub (“Acquisition Sub”), and Runway Growth Capital LLC, a Delaware limited liability company (“Parent External Adviser”). 

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Note 5. Marketable Investments

Investments in corporate debt and equity securities consist of the following (in thousands):September 30, 2025December 31, 2024Corporate debt securities$— $21 Equity securities275 559 Total marketable investments$275 $580  The amortized cost basis amounts, gross unrealized holding gains, gross unrealized holding losses and fair values of available-for-sale debt securities are as follows (in thousands):Amortized CostGross Unrealized Gains Gross Unrealized LossesFair ValueDecember 31, 2024$21 $— $— $21 Equity SecuritiesOn May 29, 2025, as part of an amendment to an existing term loan finance receivable agreement with Elutia, Inc ("Elutia") the Company received 50,000 shares of common shares with a fair value of $0.1 million, or $1.65 per share. Sale of the shares is restricted until maturity of the term loan finance receivable with Elutia.On June 30, 2024, the Company exercised its right to purchase AOTI, Inc ("AOTI") common shares. Upon exercise, the Company received 402,634 shares of AOTI shares with a fair value of 0.7 million, or $1.68 per share. The following table presents gains and losses on equity securities as prescribed by ASC 321, Investments - Equity Securities (in thousands):Three Months Ended September 30,Nine Months Ended September 30,2025202420252024Net gain (loss) on equity securities during the period$(246)$(6)$(314)$276 Net gain on warrants exercised or cancelled during the period— — —