Company: SWKH
Filing Date: 2025-04-29
Form Type: ARS
Source: 0001628280-25-020753
Chunk: 74

Company: SWK Holdings Corp
Filing Date: 2025-04-29
Form: ARS
Chunk 74
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 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 earnings per share for the following (in thousands, except per share amounts):

|                                     |     | Year Ended December 31, |   2024 |     |   |   2023 |
|:------------------------------------|:----|:------------------------|-------:|:----|:--|-------:|
| Numerator:                          |     |                         |        |     |   |        |
| Net income                          |     | $                       | 13,488 |     | $ | 15,887 |
| Denominator:                        |     |                         |        |     |   |        |
| Weighted-average shares outstanding |     |                         | 12,369 |     |   | 12,653 |
| Effect of dilutive securities       |     |                         |     82 |     |   |     43 |
| Weighted-average diluted shares     |     |                         | 12,451 |     |   | 12,696 |
| Basic net income per share          |     | $                       |   1.09 |     | $ |   1.26 |
| Diluted net income per share        |     | $                       |   1.08 |     | $ |   1.25 |

As of December 31, 2024 and 2023, outstanding options to purchase shares of common stock and outstanding shares of restricted stock in an aggregate of approximately 158,000 and 122,000, 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. Goodwill and Intangible Assets

#### Goodwill
The net book value of goodwill was solely related to the Enteris acquisition in 2019. The Company reviews goodwill for impairment on an annual basis or whenever events or changes in circumstances indicate the carrying value of an asset may not be recoverable. During the year ended December 31, 2023, the Company decreased its financial expectations for the License Agreement with Cara and elected to bypass the qualitative goodwill impairment assessment and proceed directly with a quantitative