Core Points - Class Action Attorney Juan Monteverde's firm, Monteverde & Associates PC, is investigating SWK Holdings Corporation regarding its proposed sale to Runway Growth Finance Corp, which involves cash and stock considerations for shareholders [1] - The proposed transaction offers SWK shareholders either cash equal to the per-share net asset value (NAV) or Runway stock based on the NAV ratio, along with a guaranteed cash payment of approximately $0.74 per share [1] Company Overview - Monteverde & Associates PC is recognized as a Top 50 Firm in the 2024 ISS Securities Class Action Services Report and has recovered millions for shareholders [1] - The firm operates from the Empire State Building in New York City and has a successful track record in securities class action litigation [2] Legal Context - The investigation aims to determine if the terms of the proposed transaction are fair for SWK shareholders [1] - The firm encourages shareholders with concerns to reach out for additional information [3]

PresentationLadies and gentlemen, thank you for standing by, and please be advised that today's conference is being recorded. I'd now like to hand the conference over to Quinlan Abel, Assistant Vice President, Investor Relations. Please go ahead.Quinlan AbelAssistant Vice President of Investor Relations Thank you, operator. Good morning, everyone. Joining us on the call today from Runway Growth Finance are David Spreng, Chief Executive Officer; Greg Greifeld, Chief Investment Officer of Runway Growth Capita ...

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Runway Growth Finance Corp. Overview of Proposed Acquisition of SWK Holdings NASDAQ Listed I RWAY I RWAYL I RWAYZ October 2025 © Runway Growth Capital LLC 2025 Forward-looking Statements This presentation dated October 2025 is being provided by Runway Growth Finance Corp. ("Runway Growth" or the "Company") for discussion purposes only and is neither an offer to sell, nor a solicitation of an offer to purchase, an interest in the Company. It is solely intended to describe the general business, investment obj ...

NEW YORK--(BUSINESS WIRE)--Halper Sadeh LLC, an investor rights law firm, is investigating whether the sale of SWK Holdings Corporation (NASDAQ: SWKH) to Runway Growth Finance Corp. is fair to SWK shareholders. Halper Sadeh encourages SWK shareholders to click here to learn more about their legal rights and options or contact Daniel Sadeh or Zachary Halper at (212) 763-0060 or sadeh@halpersadeh.com or zhalper@halpersadeh.com. The investigation concerns whether SWK and its board of directors vio. ...

Acquisition of high-quality portfolio centered on healthcare and life sciences investments Accelerates strategy to diversify and optimize portfolio while adding significant scale Enhances financial profile and is expected to be accretive to net investment income (“NII”) MENLO PARK, Calif., Oct. 09, 2025 (GLOBE NEWSWIRE) -- Runway Growth Finance Corp. (Nasdaq: RWAY) (“Runway Growth” or the “Company”), a leading provider of flexible capital solutions to late- and growth-stage companies seeking an alternative ...

Core Viewpoint - SWK Holdings (NASDAQ: SWKH) is primarily focused on financing the healthcare industry, with a minor segment dedicated to pharmaceutical development [1] Company Overview - SWK Holdings has a 9% coupon baby bond (NASDAQ: SWKHL) alongside its shares [1] - The company is involved in income investing through common shares, preferred shares, or bonds [1] Analyst Background - The author has a Bachelor's degree in history/political science and a Master's in Business Administration with a specialization in Finance and Economics [1] - The author has been investing since 2000 and is currently the CEO of an independent living retirement community in Illinois [1]

Group 1: Zacks Premium Overview - Zacks Premium offers various tools for investors to enhance their stock market strategies, including daily updates on Zacks Rank and Industry Rank, Equity Research reports, and Premium stock screens [1] - The service aims to help investors become more confident and informed in their investment decisions [1] Group 2: Zacks Style Scores - Zacks Style Scores are indicators designed to assist investors in selecting stocks with the highest potential to outperform the market within a 30-day timeframe, rated from A to F based on value, growth, and momentum characteristics [2] - The Style Scores are categorized into four types: Value Score, Growth Score, Momentum Score, and VGM Score, each focusing on different investment strategies [3][4][5][6] Group 3: Value Score - The Value Score identifies attractive and discounted stocks using financial ratios such as P/E, PEG, Price/Sales, and Price/Cash Flow, appealing to value investors [3] Group 4: Growth Score - The Growth Score evaluates stocks based on projected and historical earnings, sales, and cash flow, targeting companies with sustainable growth potential [4] Group 5: Momentum Score - The Momentum Score focuses on stocks experiencing upward or downward trends, utilizing factors like one-week price changes and monthly earnings estimate changes to identify favorable investment opportunities [5] Group 6: VGM Score - The VGM Score combines all three Style Scores, providing a comprehensive indicator for investors who utilize multiple investment strategies, highlighting stocks with strong value, growth, and momentum [6] Group 7: Zacks Rank and Style Scores Integration - The Zacks Rank is a proprietary stock-rating model that leverages earnings estimate revisions to guide investors in building successful portfolios [7] - Stocks rated 1 (Strong Buy) have historically produced an average annual return of +23.75% since 1988, significantly outperforming the S&P 500 [8] Group 8: Stock Selection Strategy - Investors are encouraged to select stocks with a Zacks Rank of 1 or 2 that also possess Style Scores of A or B to maximize potential success [9] - The direction of earnings estimate revisions is crucial; stocks with lower ranks (4 or 5) may still have high Style Scores but are likely to decline in value [10] Group 9: Company Spotlight - Stanley Black & Decker - Stanley Black & Decker (SWK) is currently rated 3 (Hold) with a VGM Score of A, indicating potential for momentum investors [11] - The company has seen a 4.7% increase in shares over the past four weeks, with four analysts raising earnings estimates for fiscal 2025, leading to a Zacks Consensus Estimate increase of $0.20 to $4.59 per share [12] - SWK has an average earnings surprise of +57.3%, making it a noteworthy option for investors [12]

Financial Data and Key Metrics Changes - SWK Holdings reported GAAP pretax net income of $4.6 million or $0.37 per diluted share for Q2 2025, with a net income of $3.5 million after tax expenses [8] - The GAAP book value per share was $20.23, an 11% decrease from $22.72 as of June 30, 2024, but adjusted for the $4 per share dividend, it was $24.46, reflecting a 6.8% year-over-year increase [9] - Non-GAAP adjusted net income for the finance segment was $4.6 million, indicating a stable run rate for the business going forward [5][12] Business Line Data and Key Metrics Changes - The finance receivables segment revenue decreased by $1.2 million year-over-year, primarily due to a $3.4 million decrease in interest and fees from paydowns and the sale of the majority of the royalty portfolio [8] - The pharmaceutical development segment revenue increased by $500,000 year-over-year [8] - Operating expenses for the finance receivables segment decreased significantly from $7.4 million in 2024 to $4.2 million in 2025, largely due to a reduction in provision for credit losses [10] Market Data and Key Metrics Changes - The company has returned $49 million to shareholders through a $4 per share dividend and an additional $3 million through share repurchases [4][5] - The remaining financial assets include $234 million in gross performing first lien term loans with an effective yield of 14.1% [5] Company Strategy and Development Direction - The company is focused on realizing the underlying value of its assets and ensuring shareholder benefits through asset sales and capital returns [4][5] - The management team aims to simplify the business structure and maintain a healthy loan book, indicating a disciplined approach to capital deployment [12] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in the second quarter's results as a reasonable proxy for future earnings power, despite some expected noise in Q3 due to the transition services agreement with Aptar [12] - Concerns regarding regulatory changes, particularly from the FDA, were addressed, with management indicating minimal impact on their portfolio companies [22][23] Other Important Information - The company completed the sale of the majority of its royalty assets and the Mod three subsidiary, which was seen as a successful outcome for shareholders [4][6] - The company has been disciplined in capital deployment, with a focus on existing performing borrowers and cautious about new loans [30][31] Q&A Session Summary Question: What about the costs associated with the Mod three sale? - Management confirmed that all costs associated with Mod three have been transferred to Aptar, with no ongoing costs remaining on their side [15][16] Question: What is the impact of FDA changes on portfolio companies? - Management indicated that there are minimal concerns regarding FDA changes affecting their portfolio, as they do not have companies pending drug approvals [22][23] Question: How does the influx of private credit affect deal flow? - Management acknowledged the increased capital in the market but emphasized a disciplined approach to capital deployment, focusing on core deals and existing borrowers [30][31]

[Financial and Operational Highlights](index=1&type=section&id=Financial%20and%20Operational%20Highlights) This section covers corporate strategic shifts, key financial metrics, and the impact of the royalty portfolio sale on book value and net income [Corporate Highlights & CEO Commentary](index=1&type=section&id=Corporate%20Highlights%20%26%20CEO%20Commentary) In Q2 2025, SWK Holdings simplified its business by selling the majority of its royalty portfolio and the assets of its MOD3 subsidiary, enabling a focused strategy on its core life science loan business - Sold the majority of its royalty portfolio for approximately book value and paid a **$4.00 per share special dividend** to shareholders[3](index=3&type=chunk) - Sold the majority of assets at its MOD3 subsidiary post-quarter end, simplifying the business to focus on the core life science loan strategy[3](index=3&type=chunk) Post-Monetization Asset Portfolio | Asset Type | Gross Value (in millions) | | :--- | :--- | | Performing Finance Receivables | $234.1M | | Non-Performing Finance Receivables | $12.3M | | Public Equities & Warrants | $5.2M | | Allowance for Credit Losses | ($8.8M) | - GAAP book value per share was **$20.23**, a **6.8% increase** year-over-year when excluding the **$4.00 per share dividend**. Non-GAAP tangible financing book value per share was **$18.47**, an **11.7% year-over-year increase** after adjusting for the dividend[3](index=3&type=chunk) [Key Financial Metrics](index=1&type=section&id=Key%20Financial%20Metrics) The company reported GAAP net income of $3.5 million, a slight decrease from the prior year, while finance receivables segment adjusted non-GAAP net income grew significantly to $4.6 million Q2 2025 vs Q2 2024 Key Metrics | Metric | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | GAAP Net Income | $3.5M | $3.7M | -5.4% | | Finance Receivables Segment Adj. Non-GAAP Net Income | $4.6M | $2.6M | +76.9% | | Net Finance Receivables | $237.6M | - | -10.4% (vs Jun 30, 2024) | | Effective Yield | 14.1% | 14.6% | -50 bps | | GAAP Book Value per Share | $20.23 | $22.72 | -11.0% | | Non-GAAP Tangible Financing Book Value per Share | $18.47 | $20.14 | -8.3% | - Adjusting for the **$4.00 per share special dividend**, GAAP book value per share would have increased **6.8% YoY**, and non-GAAP tangible financing book value per share would have increased **11.7% YoY**[4](index=4&type=chunk) [Detailed Financial Performance](index=2&type=section&id=Detailed%20Financial%20Performance) This section details the company's second quarter 2025 financial results, including revenue breakdown, profitability, investment asset changes, and portfolio activity [Second Quarter 2025 Financial Results](index=2&type=section&id=Second%20Quarter%202025%20Financial%20Results) For Q2 2025, total revenue decreased by 6.5% to $10.1 million, primarily due to a $1.2 million drop in Finance Receivables segment revenue following the sale of the royalty portfolio Q2 2025 Revenue Breakdown | Metric | Q2 2025 (in millions) | Q2 2024 (in millions) | Change (in millions) | | :--- | :--- | :--- | :--- | | Total Revenue | $10.1M | $10.8M | -6.5% | | Finance Receivables Segment Revenue | - | - | -$1.2M | | Pharmaceutical Development Segment Revenue | - | - | +$0.5M | Q2 2025 Profitability | Metric | Q2 2025 (in millions) | Q2 2024 (in millions) | | :--- | :--- | :--- | | Income Before Income Tax | $4.6M | $4.7M | | GAAP Net Income | $3.5M | $3.7M | | Diluted EPS | $0.29 | $0.30 | - Total investment assets decreased by **8.9%** to **$242.8 million** as of June 30, 2025, primarily due to the monetization of royalty assets for total proceeds of approximately **$51.3 million**[8](index=8&type=chunk) - During Q2, SWK repurchased **58,954 shares** for **$0.9 million**. Year-to-date through August 8, 2025, repurchases totaled **198,162 shares** for **$3.0 million**[9](index=9&type=chunk) [Portfolio Status and Activity](index=2&type=section&id=Portfolio%20Status%20and%20Activity) In Q2, SWK sold the majority of its royalty portfolio for $34.0 million and advanced $13.5 million to two existing borrowers - Key Q2 activities included selling the majority of the royalty portfolio for **$34.0 million**, paying a **$49.1 million dividend**, and funding an additional **$13.5 million** to performing borrowers AOTI, Inc. and Nicoya Life Sciences, Inc[11](index=11&type=chunk) Portfolio Yields (Q2 2025 vs Q2 2024) | Yield Type | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | Effective Yield | 14.1% | 14.6% | -50 bps | | Realized Yield | 14.3% | 15.4% | -110 bps | - As of June 30, 2025, three finance receivables were in nonaccrual status: Flowonix (**$7.1M carrying value**), Best ABT (**$2.3M**), and Ideal Implant (**$2.8M**)[13](index=13&type=chunk) Q2 2025 Portfolio Investment Activity (in thousands) | Activity | Amount | | :--- | :--- | | Beginning Portfolio | $227,776 | | Investment in finance receivables | $13,500 | | Paydowns received on investments | ($466) | | Provision for credit losses | ($541) | | Ending Portfolio | $242,819 | [Non-GAAP Financial Measures](index=4&type=section&id=Non-GAAP%20Financial%20Measures) This section provides reconciliations of non-GAAP financial measures to their GAAP equivalents and explains their relevance for analyzing the company's core operations [Reconciliation of Non-GAAP Measures](index=4&type=section&id=Reconciliation%20of%20Non-GAAP%20Measures) The company provides reconciliations for several non-GAAP metrics to their GAAP counterparts Reconciliation of GAAP Net Income to Non-GAAP Net Income (in thousands) | | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | GAAP Net Income | $3,536 | $3,680 | | Adjustments | $1,093 | ($1,712) | | **Non-GAAP Net Income** | **$4,629** | **$1,968** | Finance Receivables Segment Adjusted Non-GAAP Net Income (in thousands) | | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Non-GAAP Net Income | $4,629 | $1,968 | | MOD3 operating (income) loss | ($18) | $670 | | **Finance Receivables Segment Adjusted Non-GAAP Net Income** | **$4,611** | **$2,638** | Reconciliation of GAAP Book Value to Non-GAAP Tangible Finance Book Value Per Share | | June 30, 2025 | June 30, 2024 | | :--- | :--- | :--- | | GAAP book value per share | $20.23 | $22.72 | | **Non-GAAP Tangible book value per share** | **$18.47** | **$20.14** | [Explanation of Non-GAAP Measures](index=5&type=section&id=Explanation%20of%20Non-GAAP%20Measures) SWK utilizes non-GAAP measures such as adjusted net income and tangible financing book value per share to provide investors with a clearer view of its core ongoing operations - Non-GAAP adjusted net income is adjusted for non-cash items such as changes in fair-market value of equities and warrants, income taxes (due to NOLs), amortization, and changes in contingent consideration[20](index=20&type=chunk) - Non-GAAP finance receivable segment net income further excludes the operating results of the MOD3 subsidiary[21](index=21&type=chunk) - Non-GAAP tangible financing book value per share is calculated by excluding the deferred tax asset, intangible assets, and contingent consideration related to the MOD3 transaction from GAAP book value[21](index=21&type=chunk) [Consolidated Financial Statements](index=7&type=section&id=Consolidated%20Financial%20Statements) This section presents the condensed consolidated balance sheets, statements of income, and statements of cash flows, highlighting key financial positions and performance for the period [Condensed Consolidated Balance Sheets](index=7&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of June 30, 2025, SWK's total assets were $285.7 million, down from $332.2 million at year-end 2024, primarily due to a decrease in net finance receivables Balance Sheet Summary (in thousands) | Account | June 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Total Assets | $285,697 | $332,235 | | Finance receivables, net | $237,604 | $277,760 | | Total Liabilities | $39,228 | $43,545 | | Total Stockholders' Equity | $246,469 | $288,690 | [Condensed Consolidated Statements of Income](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income) For the three months ended June 30, 2025, total revenues were $10.1 million, a decrease from $10.8 million in the prior-year period Income Statement Summary - Three Months Ended June 30 (in thousands) | Account | 2025 | 2024 | | :--- | :--- | :--- | | Total Revenues | $10,052 | $10,847 | | Provision for credit losses | $761 | $4,095 | | Income before income tax expense | $4,562 | $4,715 | | Net Income | $3,536 | $3,680 | | Diluted EPS | $0.29 | $0.30 | [Condensed Consolidated Statements of Cash Flows](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) For the six months ended June 30, 2025, net cash provided by operating activities was $16.1 million Cash Flow Summary - Six Months Ended June 30 (in thousands) | Activity | 2025 | 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $16,081 | $9,843 | | Net cash provided by investing activities | $42,841 | $4,813 | | Net cash used in financing activities | ($56,843) | ($14,343) | | Net increase in cash | $2,079 | $313 | - Key financing activities in the first six months of 2025 included paying **$49.1 million** in cash dividends and repurchasing **$1.7 million** of common stock[31](index=31&type=chunk) [Additional Information](index=5&type=section&id=Additional%20Information) This section provides details on the upcoming conference call for Q2 2025 results and an overview of SWK Holdings Corporation's business model and financing solutions [Conference Call Information](index=5&type=section&id=Conference%20Call%20Information) SWK Holdings will host a conference call on August 15, 2025, at 9:00 a.m. CST to discuss the second quarter 2025 financial results - A conference call to discuss Q2 2025 results is scheduled for **August 15, 2025**, at **9:00 a.m. CST**[23](index=23&type=chunk) [About SWK Holdings Corporation](index=6&type=section&id=About%20SWK%20Holdings%20Corporation) SWK Holdings Corporation is a specialty finance company focused on the life sciences sector - SWK is a life science-focused specialty finance company providing non-dilutive financing to small- and mid-sized commercial-stage healthcare companies[24](index=24&type=chunk) - Financing solutions include structured debt, royalty monetization, and asset purchases, with typical transaction sizes ranging from **$5.0 million** to **$25.0 million**[24](index=24&type=chunk)