SWK Holdings(SWKH) - 2024 Q4 - Annual Results

Financial Performance - For Q4 2024, SWK reported total revenue of $12.4 million, a 25.0% increase from $9.9 million in Q4 2023[6] - GAAP net income for Q4 2024 was $5.9 million, up from $2.8 million in Q4 2023, representing a 110.7% increase[8] - SWK's adjusted non-GAAP net income for Q4 2024 was $6.6 million, compared to $2.8 million for Q4 2023, reflecting a significant growth[9] - Total revenues for the year ended December 31, 2024, increased to $44,987,000, up 19% from $37,760,000 in 2023[34] - Net income for the year ended December 31, 2024, was $13,488,000, a decrease of 15% from $15,887,000 in 2023[34] - Net income for 2024 was $13,488,000, a decrease of 15.1% from $15,887,000 in 2023[35] Assets and Liabilities - As of December 31, 2024, net finance receivables were $277.8 million, a 1.2% increase from the previous year[8] - Total investment assets as of December 31, 2024, were $282.7 million, a 2.3% increase from $276.3 million in the previous year[10] - Total current assets increased significantly to $20,254,000 in 2024, compared to $11,869,000 in 2023, representing a growth of 70%[32] - Total liabilities decreased to $43,545,000 as of December 31, 2024, down from $53,939,000 in 2023, a reduction of approximately 19%[32] - The company’s total stockholders' equity increased to $288,690,000 in 2024 from $280,315,000 in 2023, reflecting a growth of 3%[32] Cash Flow and Financing - Net cash provided by operating activities rose to $23,049,000, up 54.5% from $14,888,000 in the previous year[35] - Net cash used in investing activities improved to $(10,134,000) from $(48,948,000), reflecting better investment management[35] - Net cash used in financing activities was $(12,224,000), a significant decrease from $33,140,000 in 2023, indicating reduced financing costs[35] - The company’s cash and cash equivalents increased to $5,927,000 in 2024 from $4,503,000 in 2023, marking a growth of 32%[32] - Cash, cash equivalents, and restricted cash at the end of the period increased to $5,927,000 from $5,236,000[35] Credit and Provisions - The company reported a provision for credit losses of $12,756,000 for the year ended December 31, 2024, compared to $1,912,000 in 2023, indicating a substantial increase in credit loss provisions[34] - Provision for credit losses increased significantly to $12,756,000 from $1,912,000, indicating a rise in expected credit losses[35] Financing Activities - SWK closed a term loan with Triple Ring totaling $8.0 million and expanded its credit facility with Eton to $30.0 million during Q4 2024[12] - The effective yield for Q4 2024 was 15.5%, a 150 basis points increase from 14.0% in Q4 2023[15] - Non-GAAP tangible financing book value per share increased by 8.3% to $21.15 from $19.53 as of December 31, 2023[11] - Interest paid increased to $3,082,000 from $1,351,000, reflecting higher borrowing costs[35] - The amortization of debt issuance costs rose to $1,054,000 from $493,000, indicating increased financing activities[35] Other Notable Events - The company anticipates declaring a dividend following the closing of a larger royalty monetization transaction expected in March 2025[5] - The company experienced a foreign currency transaction gain of $1,414,000, compared to a loss of $1,876,000 in the previous year[35] - The company reported a loss on impairment of intangible assets amounting to $5,771,000, with no such loss reported in 2023[35] - SWK Holdings plans to continue providing non-dilutive financing solutions to healthcare companies, focusing on long-term value creation[28]