What changed in this filing

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Item 1. Financial Statements

2022-05-10 compared with 2021-11-12 · 158 added, 260 removed, 472 unchanged (47% of the section changed)

3 unchanged sentences

thousands, except par value and share data)

September 30,

Current assets:

7 unchanged sentences

Cost method investment

Deferred tax assets, net

Deferred tax asset, net

Warrant assets

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5,000,000 shares authorized;

no shares issued and outstanding as of September 30, 2021 and December 31, 2020, respectively

no shares issued and outstanding as of March 31, 2022 and December 31, 2021, respectively

Common stock, $ 0.001 par value;

250,000,000 shares authorized;

12,801,313 and 12,792,586 shares issued and outstanding as of September 30, 2021 and December 31, 2020, respectively

12,834,813 and 12,836,133 shares issued and outstanding as of March 31, 2022 and December 31, 2021, respectively

Additional paid-in capital

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notes to the unaudited condensed consolidated financial statements.

HOLDINGS CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(in thousands,

except per share data)

thousands, except per share data)

Three Months Ended

September 30,

Nine Months Ended

September 30,

Finance receivables interest income, including fees

Finance receivable interest income, including fees

Pharmaceutical development

1 unchanged sentence

Costs and expenses:

Impairment expense

Interest expense

Pharmaceutical manufacturing, research and development expense

Change in fair value of acquisition-related contingent consideration

Depreciation and amortization expense

General and administrative

Total costs and expenses

Other income (expense), net

Unrealized net (loss) gain on warrants

Unrealized net gain (loss) on equity securities

Income before income tax expense (benefit)

Income tax expense (benefit)

Consolidated net income

Income from operations

Other (expense) income, net

Unrealized net (loss) gain on derivatives

Unrealized net (loss) gain on equity securities

Income before income tax expense

Income tax expense

Net income per share

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notes to the unaudited condensed consolidated financial statements.

HOLDINGS CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

(in thousands,

except share data)

Nine Months Ended September 30, 2021

thousands, except share data)

Months Ended March 31, 2022

Stockholders’

Paid-In Capital

Balances at December 31, 2020

$ ( 4,190,425 )

Stock-based compensation

Issuance of common stock

Balances at March 31, 2021

( 4,187,036 )

Stock-based compensation

Issuance of common stock

Balances at June 30, 2021

at December 31, 2021

$ ( 4,164,496 )

Stock-based compensation

Issuance of common stock

Balances at September 30, 2021

of common stock upon vesting of restricted stock

of unvested restricted stock

at March 31, 2022

$ ( 4,161,018 )

Nine Months Ended September 30, 2020

Months Ended March 31, 2021

Stockholders’

Paid-In Capital

Balances at December 31, 2019

$ ( 4,195,627 )

Stock-based compensation

Issuance of common stock

Repurchases of common stock in open market

Balances at March 31, 2020

( 4,200,287 )

Stock-based compensation

Issuance of common stock in lieu of payment of employee cash bonuses

Issuance of common stock

Repurchases of common stock in open market

Balances at June 30, 2020

at December 31, 2020

$ ( 4,190,425 )

Stock-based compensation

Issuance of common stock

Repurchases of common stock in open market

Balances at September 30, 2020

of common stock upon vesting of restricted stock

at March 31, 2021

$ ( 4,187,036 )

1 unchanged sentence

notes to the unaudited condensed consolidated financial statements.

HOLDINGS CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

Nine Months Ended

September 30,

Three Months Ended

Cash flows from operating activities:

Consolidated net income

Adjustments to reconcile net income to net cash provided by operating activities:

Impairment expense

Amortization of debt issuance costs

2 unchanged sentences

Change in fair value of equity securities

Change in fair value of acquisition-related contingent consideration

Loan discount amortization and fee accretion

Interest paid-in-kind

Interest income paid-in-kind

Stock-based compensation

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Cash flows from investing activities:

Investment in equity securities

Investment in finance receivables

Repayment of finance receivables

Corporate debt securities principal payment

Corporate debt securities principal payments

Purchases of property and equipment

Net cash provided by (used in) investing activities

Net cash used in investing activities

Cash flows from financing activities:

Net (payments on) proceeds from credit facility

Payment of acquisition-related contingent consideration

Repurchases of common stock, including fees and expenses

Net payments on credit facility

Net cash used in financing activities

Net increase in cash and cash equivalents

Net decrease in cash and cash equivalents

Cash and cash equivalents at beginning of period

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notes to the unaudited condensed consolidated financial statements.

UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

HOLDINGS CORPORATION

TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

SWK Holdings Corporation and Summary of Significant Accounting Policies

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the sales of life science products by third parties.

The Company is headquartered in Dallas, Texas, and as of September 30, 2021,

the Company had 35 employees.

The Company is headquartered in Dallas, Texas, and as of March 31, 2022,

the Company had 35 full-time employees.

Company has net operating loss carryforwards (“NOLs”) and believes that the ability to utilize these NOLs is an important

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might result in the ability to utilize more of the NOLs.

of November 8, 2021, the Company and its partners have executed transactions with 42 different parties under its specialty

finance strategy, funding an aggregate of $600.0 million in various financial products across the life science sector.

of May 4, 2022, the Company and its partners have executed transactions with 45 different parties under its specialty finance

strategy, funding an aggregate of $643.2 million in various financial products across the life science sector.

The Company’s

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on Form 10-K for the year ended December 31, 2021, filed with the SEC on March 25, 2022.

Reclassification

prior period amounts have been reclassified to conform to current period presentation.

The amounts for prior periods have been reclassified

to be consistent with current presentation and have no impact on previously reported total assets, total stockholders’

equity or net income.

preparation of the Company’s consolidated financial statements in conformity with GAAP requires the Company to make estimates

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March 2022, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”)

2020-04, “Reference Rate Reform (Topic 848),” which provides optional guidance for a limited period of time to ease

the potential burden in accounting for (or recognizing the effects of) reference rate reform on financial reporting.

provides optional expedients and exceptions for applying GAAP to transactions affected by reference rate reform if certain criteria

2022-02, “Financial Instruments - Credit Losses (Topic 326):

Troubled Debt Restructurings and Vintage Disclosures, which

updates the requirements for accounting for credit losses under ASC 326, eliminates the accounting guidance on troubled debt restructurings

for creditors, and enhances creditors’ disclosure requirements related to loan refinancings and restructurings for borrowers

experiencing financial difficulty.

The ASU also amends the guidance on vintage disclosures to require disclosure of gross write-offs

by year of origination.

The amendments are effective in periods beginning after December 15, 2022 using either a prospective or

modified retrospective transition.

Early adoption of certain or all of the amendments is permitted.

The Company is currently evaluating

the provisions of the amendments and the impact on its future consolidated financial statements.

March 2020, the FASB issued ASU 2020-04, “Reference Rate Reform (Topic 848),” which provides optional guidance for

a limited period of time to ease the potential burden in accounting for (or recognizing the effects of) reference rate reform

on financial reporting.

ASU 2020-04 provides optional expedients and exceptions for applying GAAP to transactions affected by

reference rate reform if certain criteria are met.

These transactions include:

(i) contract modifications, (ii) hedging relationships, and (iii) sales or transfers of debt

securities classified as held-to-maturity.

ASU 2020-04 is effective from March 12, 2020 through December 31, 2022.

An entity may

elect to adopt the amendments for contract modifications as of any date from the beginning of an interim period that includes

or is subsequent to March 12, 2020, or prospectively from a date within an interim period that includes or is subsequent to March

12, 2020, up to the date that the financial statements are available to be issued.

An entity may elect to apply the amendments

in ASU 2020-04 to eligible hedging relationships existing as of the beginning of the interim period that includes March 12, 2020

and to new eligible hedging relationships entered into after the beginning of the interim period that includes March 12, 2020.

The one-time election to sell, transfer, or both sell and transfer debt securities classified as held-to-maturity may be made

at any time after March 12, 2020 but no later than December 31, 2022.

The Company expects that it will elect to apply some of

the expedients and exceptions provided in ASU 2020-04;

however, the Company is still evaluating the guidance, and therefore, the

impact of the adoption of ASU 2020-04 on the Company’s financial condition and results of operations has not yet been determined.

(i) contract modifications, (ii) hedging relationships,

and (iii) sales or transfers of debt securities classified as held-to-maturity.

ASU 2020-04 is effective from March 12, 2020 through

December 31, 2022.

An entity may elect to adopt the amendments for contract modifications as of any date from the beginning of

an interim period that includes or is subsequent to March 12, 2020, or prospectively from a date within an interim period that

includes or is subsequent to March 12, 2020, up to the date that the financial statements are available to be issued.

may elect to apply the amendments in ASU 2020-04 to eligible hedging relationships existing as of the beginning of the interim

period that includes March 12, 2020 and to new eligible hedging relationships entered into after the beginning of the interim

period that includes March 12, 2020.

The one-time election to sell, transfer, or both sell and transfer debt securities classified

as held-to-maturity may be made at any time after March 12, 2020 but no later than December 31, 2022.

The Company has identified

existing loans that reference LIBOR and is in the process of evaluating alternatives in each situation.

The Company expects that

it will elect to apply some of the expedients and exceptions provided in ASU 2020-04 and does not believe the adoption of this

standard will have a material impact on the Company’s consolidated financial statements.

June 2016, the FASB issued ASU 2016-13, “Financial Instruments - Credit Losses (Topic 326).” This standard adds an

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per share amounts):

of Computation of Basic and Diluted Net Income (Loss)

Schedule of Basic

and Diluted Earning per Share

Three Months Ended

September 30,

Nine Months Ended

September 30,

Weighted-average shares outstanding

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Diluted net income per share

the three months ended September 30, 2021 and 2020, outstanding options to purchase shares of common stock and outstanding shares

the three months ended March 31, 2022 and 2021, outstanding options to purchase shares of common stock and outstanding shares

of restricted stock in an aggregate of approximately 300,000 and 411,000 , respectively, have been excluded from the calculation

of diluted net income per share as such securities were anti-dilutive.

For the nine months ended September 30, 2021 and 2020,

outstanding options to purchase shares of common stock and outstanding shares of restricted stock in an aggregate of approximately

390,000 and 455,000 , respectively, have been excluded from the calculation of diluted net income per share as such securities

were anti-dilutive.

Receivables, Net

Finance Receivables, Net

receivables are reported at their determined principal balances net of any unearned income, cumulative charge-offs and unamortized

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expected using the effective interest method.

of September 30, 2021 and December 31, 2020, the Company had a credit loss allowance of $8.4 million.

of March 31, 2022 and December 31, 2021, the Company had a credit loss allowance of $8.4 million.

Of the total $8.4 million, $1.2

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that was recognized in order to reflect the Best royalty at its estimated fair value.

The carrying values of finance receivables

are as follows (in thousands):

carrying values of finance receivables are as follows (in thousands):

Schedule of carrying value of finance receivables

September 30,

Royalty purchases

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Schedule of analysis of nonaccrual and performing loans by portfolio segment

September 30, 2021

March 31, 2022

December 31, 2021

Royalty purchases, net of credit loss allowance

Royalty purchases, net of credit loss

Total carrying value

of September 30, 2021, the Company had two finance receivables in nonaccrual status:

(1) the term loan to B&D Dental Corporation

(“B&D”), with a net carrying value of $ 8.3 million and (2) the Best royalty, with a net carrying value of

$ 3.5 million .

Although in nonaccrual status, the B&D term loan was not considered impaired as of September 30, 2021 and

December 31, 2020.

The Company collected $0.4 million on the Best royalty during the nine months ended September 30, 2021,

which was credited toward the royalty’s carrying value.

in available-for-sale corporate debt securities and equity securities as of September 30, 2021 and December 31, 2020 consist of

the following (in thousands):

of March 31, 2022, the Company had two finance receivables in nonaccrual status:

(1) the term loan to Flowonix Medical, Inc.

(“Flowonix”),

with a net carrying value of $9.8 million and (2) the Best royalty, with a net carrying value of $3.2 million.

in nonaccrual status, the Flowonix term loan was not considered impaired as of March 31, 2022 and December 31, 2021.

collected $0.5 million on its nonaccrual finance receivables during the three months ended March 31, 2022.

Marketable Investments

in available-for-sale corporate debt securities and equity securities as of March 31, 2022 and December 31, 2021 consist of the

following (in thousands):

Schedule of marketable investments

September 30,

Corporate debt securities

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amortized cost basis amounts, gross unrealized holding gains, gross unrealized holding losses and fair values of available-for-sale

corporate debt securities as of September 30, 2021 and December 31, 2020, are as follows (in thousands):

corporate debt securities as of March 31, 2022 and December 31, 2021, are as follows (in thousands):

Schedule of available-for-sale securities reconciliation

September 30, 2021

March 31, 2022

December 31, 2021

following table presents unrealized net income (loss) on equity securities during the three and nine months ended September 30,

2021 and 2020 (in thousands):

following table presents unrealized net income (loss) on equity securities during the three months ended March 31, 2022 and 2021

(in thousands):

Schedule of Proceeds from sales, gross unrealized gains and gross unrealized losses for available-for-sale securities

Three Months Ended

September 30,

Nine Months Ended

September 30,

Unrealized net income (loss) on equity securities reflected in the unaudited condensed consolidated statements of income

Goodwill and Intangible

was no change in the carrying amount of goodwill from December 31, 2020 to September 30, 2021, and net book value remains at $8.4

The net book value of goodwill is solely related to the Enteris acquisition in 2019.

Unrealized net (loss) gain on equity securities reflected in the unaudited condensed consolidated statements of income

Intangible Assets

following table summarizes the gross book value, accumulated amortization and net book value balances of intangible assets as

of September 30, 2021 and December 31, 2020 (in thousands):

of March 31, 2022 and December 31, 2021 (in thousands):

Schedule of Intangible Assets

September 30, 2021

March 31, 2022

December 31, 2021

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Customer relationships

Deferred patent costs

Total intangible assets

(1) Prior to the acquisition, Enteris entered into a non-exclusive

commercial license agreement (the “License Agreement”) with Cara Therapeutics, Inc.

(“Cara”), for oral formulation

rights to Enteris’ Peptelligence® technology to develop and commercialize Oral KORSUVA TM in any indication worldwide,

excluding South Korea and Japan.

Cara is obligated to pay Enteris certain development, regulatory and tiered commercial milestone payments,

as well as low single-digit royalties based on net sales in the licensed territory.

expense related to intangible assets was $ 0.6 million and $ 2.6 million for the three months ended September 30, 2021 and 2020,

respectively.

Amortization expense related to intangible assets was $ 2.9 million and $ 9.4 million for the nine months ended September

30, 2021 and 2020, respectively.

estimated future amortization expense related to intangible assets as of September 30, 2021 is as follows (in thousands):

(1) Prior to the acquisition,

Enteris entered into a non-exclusive commercial license agreement (the “License Agreement”) with Cara Therapeutics,

(“Cara”), for oral formulation rights to Enteris’ Peptelligence® technology to develop and commercialize

Oral KORSUVA TM in any indication worldwide, excluding South Korea and Japan.

Cara is obligated to pay Enteris certain

development, regulatory and tiered commercial milestone payments, as well as low single-digit royalties based on net sales in

the licensed territory.

expense related to intangible assets was $0.5 million and $1.6 million for the three months ended March 31, 2022 and 2021, respectively.

estimated future amortization expense related to intangible assets as of March 31, 2022 is as follows (in thousands):

Schedule of Intangible Asset Amortization Expense

Remainder of 2022

2026 and thereafter

Credit Facility

September 27, 2021, the Company entered into the Third Amendment to Loan and Security Agreement (the “Third Amendment”)

with Cadence Bank, N.A.

as a lender and the administrative agent.

Pursuant to the Third Amendment, the Loan and Security Agreement

dated as of June 29, 2018 (“Loan Agreement”) was amended to extend the Loan Agreement Termination Date to September

30, 2022 and increase the Loan Agreement Commitment to $22.0 million.

The Loan Agreement requires the payment of an unused line

fee of 0.50 percent and also provides for quarterly minimum fee income of $60,000 less the aggregate interest and unused line

fees paid during the immediately preceding quarter.

Unused line fees and minimum fee income are recorded as interest expense.

Loan Agreement accrues interest at the Daily LIBOR Rate, with a floor of 1.00 percent, plus a 3.25 percent margin and principal

is repayable in full at maturity.

Interest is generally required to be paid monthly in arrears.

In connection with the Third Amendment,

the Company paid a $50,000 amendment fee, which was capitalized as deferred financing costs and is being amortized on a straight-line

basis over the remaining term of the Loan Agreement.

Loan Agreement has an advance rate against the Company’s finance receivables portfolio, including 85 percent against senior

first lien loans, 70 percent against second lien loans and 50 percent against royalty receivables, subject to certain eligibility

requirements as defined in the Loan Agreement.

The Loan Agreement contains certain affirmative and negative covenants including

minimum asset coverage and minimum interest coverage ratios.

the nine months ended September 30, 2021 and 2020, the Company recognized $ 0.3 million and $ 0.4 million , respectively, of interest

As of September 30, 2021, approximately $ 8,000 was outstanding under the revolving credit facility, and approximately

$ 22.0 million was available for borrowing.

Commitments and Contingencies

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date until the contingency is resolved, with changes in the estimated fair value recognized in earnings.

As of September 30, 2021

and December 31, 2020, the fair value of contingent consideration was $ 10.7 million and $ 16.9 million , respectively.

nine months ended September 30, 2021, the Company recognized $10.0 million of revenue related to the completion of a milestone

under the License Agreement with Cara.

During the nine months ended September 30, 2021, the Company paid $6.1 million of such

amount to the seller of Enteris, pursuant to the earnout provisions of the merger agreement.

The Company also recognized a $0.1

million change in the estimated fair value of its contingent consideration during the nine months ended September 30, 2021.

of September 30, 2021, the Company’s unfunded commitments were as follows (in millions):

The estimated fair value

of contingent consideration as of March 31, 2022 and December 31, 2021 was $8.5 million.

The Company did not recognize a

change in the estimated fair value of its contingent consideration during the three months ended March 31, 2022 and 2021.

of March 31, 2022, the Company’s unfunded commitments were as follows (in millions):

Schedule of Unfunded Commitments

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subject to being advanced as long as an event of default does not exist.

Value Measurements

Fair Value Measurements

Company measures and reports certain financial and non-financial assets and liabilities on a fair value basis.

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into or out of any hierarchy level are recognized at the end of the reporting period in which the transfers occurred.

no transfers between any levels during the nine months ended September 30, 2021.

no transfers between any levels during the three months ended March 31, 2022.

following information is provided to help readers gain an understanding of the relationship between amounts reported in the accompanying

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non-exchange traded derivatives, fair value is based on option pricing models and are classified as Level 3.

following table presents financial assets and liabilities measured at fair value on a recurring basis as of September 30, 2021

(in thousands):

following table presents financial assets and liabilities measured at fair value on a recurring basis as of March 31, 2022 (in

Schedule of fair value assets measured on recurring basis

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Contingent consideration payable

changes in fair value of the warrant assets during the nine months ended September 30, 2021 were as follows (in thousands):

changes in fair value of the warrant assets during the three months ended March 31, 2022 and 2021 were as follows (in thousands):

Schedule of fair value assets measured on recurring basis unobservable input reconciliation

March 31, 2022

March 31, 2021

Fair value – Fair value - December 31, 2021

Fair value - December 31, 2020

Change in fair value

Fair value – September 30, 2021

Change in fair value

Fair value - March 31, 2022

Fair value - March 31, 2021

Company holds warrants issued to the Company in conjunction with certain term loan investments.

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Schedule of weighted average assumptions

September 30,

Dividend rate range

Risk-free rate range

0.53 % to 1.32 %

0.17 % to 0.65 %

Expected life (years) range

Expected life (years)

Expected volatility range

61.3 % to 157.9 %

74.3 % to 174.7 %

of September 30, 2021 and December 31, 2020, the Company had three royalties, Besivance®, Best, and Cambia®, that were

deemed to be impaired based on reductions in carrying values in prior periods.

The following table presents these royalties measured

at fair value on a nonrecurring basis as of September 30, 2021 and December 31, 2020 (in thousands):

Schedule of fair value assets and liabilities measured on nonrecurring basis

of March 31, 2022 and December 31, 2021, the Company had two royalties, Best and Cambia®, that were deemed to be impaired

based on reductions in carrying values in prior periods.

The following table presents these royalties measured at fair value on

a nonrecurring basis as of March 31, 2022 and December 31, 2021 (in thousands):

Schedule of fair value

assets and liabilities measured on nonrecurring basis

Quoted Prices

or Liabilities

September 30, 2021

March 31, 2022

December 31, 2021

were no liabilities measured at fair value on a nonrecurring basis as of September 30, 2021 and December 31, 2020.

were no liabilities measured at fair value on a nonrecurring basis as of March 31, 2022 and December 31, 2021.

following information is provided to help readers gain an understanding of the relationship between amounts reported in the accompanying

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Schedule of fair value by balance sheet grouping

of September 30, 2021 (in thousands):

of March 31, 2022 (in thousands):

Financial Assets

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Finance Receivables segment does not have any revenues received from contracts with customers.

following table provides the contract revenue recognized by revenue source for the three and nine months ended September 30, 2021

and 2020 (in thousands):

following table provides the contract revenue recognized by revenue source for the three months ended March 31, 2022 and 2021

(in thousands):

Schedule of Revenue Recognized by Revenue Source

Three Months Ended

September 30,

Nine Months Ended

September 30,

Pharmaceutical Development Segment

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Schedule of Company's Contract Liabilities

September 30,

Pharmaceutical Development Segment

1 unchanged sentence

Total contract liabilities

the nine months ended September 30, 2021, the Company recognized $ 0.3 million of 2020 deferred revenue from satisfaction of performance

The Company did not have any contract assets nor did it have any contract liabilities related to the License Agreement

as of September 30, 2021 or December 31, 2020.

the three months ended March 31, 2022, the Company recognized $ 0.1 million of 2021 deferred revenue from satisfaction of

performance obligations.

The Company did not have any contract assets nor did it have any contract liabilities related to the

License Agreement as of March 31, 2022 or December 31, 2021.

Segment Information

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offered within each segment.

performance is evaluated based on several factors, including income (loss) from continuing operations before income.

uses this measure of income (loss) to evaluate segment performance because the Company believes this measure is indicative of

The Company does not report assets by reportable segment, as this metric is not used by the Company’s

chief executive officer in assessing performance or allocating resources to the segments.

following table presents financial information for the Company’s reportable revenue by geographic region for the periods

indicated (in thousands):

Schedule of Reportable Revenue by

Geographic Region

Three Months Ended

United States , country of domicile

International

Total revenue

performance is evaluated based on several factors, including income (loss) from continuing operations before income taxes.

uses this measure of net income (loss) to evaluate segment performance because the Company believes this measure is indicative of

performance trends and the overall earnings potential of each segment.

1 unchanged sentence

Schedule of Reportable Segments

Three Months Ended September 30, 2021

Three Months Ended March 31, 2022

Pharmaceutical

Development and

Holding Company

Other revenue

Interest expense

Manufacturing, research and development

Depreciation and amortization

Depreciation and amortization expense

General and administrative

Other income, net

Other expense, net

Income tax expense

Consolidated net income (loss)

Three Months Ended September 30, 2020

Pharmaceutical

Development and

Interest expense

Manufacturing, research and development

Depreciation and amortization

Change in fair value of acquisition-related contingent consideration

General and administrative

Other (expense) income, net

Income tax benefit

Consolidated net income (loss)

Nine Months Ended September 30, 2021

Net income (loss)

Three Months Ended March 31, 2021

Pharmaceutical

Development and

Holding Company

Other revenue

1 unchanged sentence

Manufacturing, research and development

Depreciation and amortization

Change in fair value of acquisition-related contingent consideration

Depreciation and amortization expense

General and administrative

1 unchanged sentence

Income tax expense

Consolidated net income (loss)

Nine Months Ended September 30, 2020

Pharmaceutical

Development and

Other revenue

Provision for credit losses and impairment

Interest expense

Manufacturing, research and development

Depreciation and amortization

Change in fair value of acquisition-related contingent consideration

General and administrative

Other (expense) income, net

Income tax benefit

Consolidated net income (loss)

Net income (loss)

in Holding Company and Other are the expenses of the parent holding company and certain other enterprise-wide overhead costs,

1 unchanged sentence

consolidated amounts.

Subsequent Events

October 22, 2021, SWK Funding received $ 0.5 million for the payoff of the Thermedx LLC term loan.

The proceeds included accrued

interest and interest paid-in-kind.

Misonix, Inc.

October 29, 2021, Misonix, Inc.

(“Misonix”) was acquired by Bioventus, Inc.

(“Bioventus”).

of the transaction, SWK Funding received $ 31.6 million for the payoff of the Misonix term loan.

The proceeds included accrued

interest, prepayment and exit fees.

The Company also tendered its Misonix common stock and received $ 1.9 million in cash and 71,361

shares of Bioventus common stock valued at $1.2 million at the date of transaction.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements