Company: SWKH
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0001628280-25-050155
Chunk: 61

Company: SWK Holdings Corp
Filing Date: 2025-11-06
Form: 10-Q
Item: Part I, Item 8
Chunk 61
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 ASU on its consolidated financial statements and related disclosures.In November 2024, the FASB issued ASU 2024-03, "Disaggregation of Income Statement Expenses." The ASU enhances disclosures related to income statement expenses to further disaggregate expenses in 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.

9

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 EndedSeptember 30,Nine Months EndedSeptember 30,2025202420252024Numerator:Net income$8,780 $3,468 $16,855 $7,616 Denominator:Weighted-average shares outstanding12,117 12,318 12,184 12,417 Effect of dilutive securities— 90 — 75 Weighted-average diluted shares12,117 12,408 12,184 12,492 Basic net income per share$0.72 $0.28 $1.38 $0.61 Diluted net income per share$0.72 $0.28 $1.38 $0.61 There were no outstanding options to purchase shares of common stock for the three and nine months ended September 30, 2025. For the three and nine months ended September 30, 2024, outstanding options to purchase shares of common stock in an aggregate of approximately 160,000 and 161,000, respectively, have been excluded from the calculation of diluted net income