Company: SWKH
Filing Date: 2025-04-29
Form Type: ARS
Source: 0001628280-25-020753
Chunk: 94

Company: SWK Holdings Corp
Filing Date: 2025-04-29
Form: ARS
Chunk 94
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 stock.

Preferred Stock

The Company’s Board may, without further action by the stockholders, issue one or more series of preferred stock and fix the rights and preferences of those shares, including the dividend rights, dividend rates, conversion rights, exchange rights, voting rights, terms of redemption, redemption price or prices, liquidation preferences, the number of shares constituting any series and the designation of such series. As of December 31, 2024, no shares of preferred stock have been issued.

Stock Compensation Plans

The Company’s 2010 Stock Incentive Plan (the “2010 Stock Incentive Plan”) provides for options, restricted stock, and other customary forms of equity to be granted to the Company’s directors, officers, employees, and independent contractors. All forms of equity incentive compensation are granted at the discretion of the Board and have a term not greater than 10 years from the date of grant.

The calculation of the fair values of our stock-based compensation plans requires estimates that require management’s judgments. Under ASC 718, Compensation - Stock Compensation, the fair value of each stock option is estimated on the grant date using the Black-Scholes option-pricing model. The valuation models require assumptions and estimates to determine expected volatility, expected life and expected risk-free interest rates. The expected volatility was determined using historical volatility of our stock based on the contractual life of the award. The risk-free interest rate assumption was based on the yield on zero-coupon U.S. Treasury strips at the award grant date. There were no options granted in the fiscal years ended December 31, 2024 and 2023.

The following table summarizes activities under the 2010 Stock Incentive Plan for the indicated periods:

|                                                                                               |     | Options Outstanding 
 Number of Shares    |         |     | Weighted-Average Exercise Price |       |       |     | Weighted-Average Remaining Contractual Term (in years) |     |     |     | Aggregate Intrinsic Value (in thousands) |     |     |
|:----------------------------------------------------------------------------------------------|:----|:--------------------|--------:|:----|:--------------------------------|------:|------:|:----|:-------------------------------------------------------|:----|----:|:----|:-----------------------------------------|----:|----:|
| Balances, December 31, 2022                                                                   |     |                     |  90,000 |     | $                               | 10.88 |       |     |                                                        |     | 6.3 |