Document_And_Entity_Informatio
Document And Entity Information | 3 Months Ended | |
Mar. 31, 2014 | 9-May-14 | |
Document and Entity Information [Abstract] | ' | ' |
Entity Registrant Name | 'SWK Holdings Corporation | ' |
Document Type | '10-Q | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Common Stock, Shares Outstanding | ' | 43,174,894 |
Amendment Flag | 'false | ' |
Entity Central Index Key | '0001089907 | ' |
Entity Current Reporting Status | 'Yes | ' |
Entity Voluntary Filers | 'No | ' |
Entity Filer Category | 'Smaller Reporting Company | ' |
Entity Well-known Seasoned Issuer | 'No | ' |
Document Period End Date | 31-Mar-14 | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q1 | ' |
Unaudited_Condensed_Consolidat
Unaudited Condensed Consolidated Balance Sheets (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
Current assets: | ' | ' |
Cash and cash equivalents | $3,867,000 | $7,664,000 |
Accounts receivable | 356,000 | 528,000 |
Prepaid expenses and other current assets | 289,000 | 16,000 |
Finance receivables | 957,000 | 660,000 |
Deferred tax asset | 111,000 | 164,000 |
Total current assets | 5,580,000 | 9,032,000 |
Finance receivables | 40,708,000 | 28,626,000 |
Marketable investments | 3,119,000 | 3,119,000 |
Investment in unconsolidated entities | 9,952,000 | 10,425,000 |
Deferred tax asset | 8,986,000 | 9,639,000 |
Debt issuance costs | 488,000 | 523,000 |
Other assets | 422,000 | 211,000 |
Total assets | 69,255,000 | 61,575,000 |
Current liabilities: | ' | ' |
Accounts payable and accrued liabilities | 809,000 | 363,000 |
Total current liabilities | 809,000 | 363,000 |
Loan credit agreement | 11,000,000 | 5,000,000 |
Warrant liability | 250,000 | 292,000 |
Other long-term liabilities | ' | 3,000 |
Total liabilities | 12,059,000 | 5,658,000 |
Stockholders’ equity: | ' | ' |
Common stock, $0.001 par value; 250,000,000 shares authorized; 43,174,894 and 43,034,894 shares issued and outstanding at March 31, 2014 and December 31, 2013, respectively | 43,000 | 43,000 |
Additional paid-in capital | 4,321,530,000 | 4,321,454,000 |
Accumulated deficit | -4,269,736,000 | -4,271,193,000 |
Accumulated other comprehensive income | 0 | 0 |
Total SWK Holdings Corporation stockholders’ equity | 51,837,000 | 50,304,000 |
Non-controlling interests in consolidated entities | 5,359,000 | 5,613,000 |
Total stockholders’ equity | 57,196,000 | 55,917,000 |
Total liabilities and stockholders’ equity | $69,255,000 | $61,575,000 |
Unaudited_Condensed_Consolidat1
Unaudited Condensed Consolidated Balance Sheets (Parentheticals) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
Preferred stock, par value (in Dollars per share) | $0.00 | $0.00 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value (in Dollars per share) | $0.00 | $0.00 |
Common stock, shares authorized | 250,000,000 | 250,000,000 |
Common stock, shares issued | 43,174,894 | 43,034,894 |
Common stock, shares outstanding | 43,174,894 | 43,034,894 |
Unaudited_Condensed_Consolidat2
Unaudited Condensed Consolidated Statements of Income (USD $) | 3 Months Ended | |
Share data in Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Revenues | ' | ' |
Finance receivable interest income, including fees | $2,031,000 | $374,000 |
Marketable investments interest income | 91,000 | ' |
Income related to investments in unconsolidated entities | 1,503,000 | ' |
Management fees | 42,000 | 56,000 |
Total Revenues | 3,667,000 | 430,000 |
Costs and expenses: | ' | ' |
General and administrative | 669,000 | 390,000 |
Total costs and expenses | 669,000 | 390,000 |
Income from operations | 2,998,000 | 40,000 |
Interest and other income (expense), net | -34,000 | 23,000 |
Income before provision for income tax | 2,964,000 | 63,000 |
Provision for income tax | 706,000 | 3,000 |
Consolidated net income | 2,258,000 | 60,000 |
Net income attributable to non-controlling interests | 801,000 | ' |
Net income attributable to SWK Holdings Corporation Stockholders | $1,457,000 | $60,000 |
Net income per share attributable to SWK Holdings Corporation Stockholders | ' | ' |
Basic (in Dollars per share) | $0.04 | $0 |
Diluted (in Dollars per share) | $0.04 | $0 |
Weighted Average Shares | ' | ' |
Basic (in Shares) | 41,462 | 41,316 |
Diluted (in Shares) | 41,530 | 41,396 |
Unaudited_Condensed_Consolidat3
Unaudited Condensed Consolidated Statements of Comprehensive Income (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Net income | $2,258 | $60 |
Comprehensive income | 2,258 | 60 |
Comprehensive income attributable to non-controlling interests | 801 | ' |
Comprehensive income attributable to SWK Holdings Corporation Stockholders | $1,457 | $60 |
Unaudited_Condensed_Consolidat4
Unaudited Condensed Consolidated Statements of Cash Flows (USD $) | 3 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Cash flows from operating activities: | ' | ' |
Net income | $2,258,000 | $60,000 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' |
Income from investments in unconsolidated entities | -1,503,000 | ' |
Deferred income taxes | 706,000 | ' |
Interest income in excess of cash collected | -431,000 | ' |
Loan discount amortization and fee accretion | -72,000 | ' |
Change in fair value of warrants | -154,000 | ' |
Stock-based compensation | 76,000 | 60,000 |
Debt issuance cost amortization | 35,000 | ' |
Other non-cash expense | ' | 4,000 |
Changes in operating assets and liabilities: | ' | ' |
Accounts receivable | 172,000 | 105,000 |
Restricted cash | ' | 250,000 |
Prepaid expenses and other assets | -273,000 | -138,000 |
Interest reserve | ' | -250,000 |
Accounts payable and accrued liabilities | 443,000 | 77,000 |
Net cash provided by operating activities | 1,257,000 | 168,000 |
Cash flows from investing activities: | ' | ' |
Net increase in finance receivables | -11,975,000 | ' |
Cash distributions from investments in unconsolidated entities | 1,976,000 | ' |
Purchases of property and equipment | ' | -4,000 |
Net cash used in investing activities | -9,999,000 | -4,000 |
Cash flows from financing activities: | ' | ' |
Proceeds from loan credit agreement | 6,000,000 | ' |
Distributions to non-controlling interests | -1,055,000 | ' |
Net cash provided by financing activities | 4,945,000 | ' |
Net (decrease) increase in cash and cash equivalents | -3,797,000 | 164,000 |
Cash and cash equivalents at beginning of period | 7,664,000 | 24,584,000 |
Cash and cash equivalents at end of period | $3,867,000 | $24,748,000 |
Supplemental_Cash_Flow_Informa
Supplemental Cash Flow Information | 3 Months Ended |
Mar. 31, 2014 | |
Supplemental Cash Flow Elements [Abstract] | ' |
Cash Flow, Supplemental Disclosures [Text Block] | ' |
The Company received a warrant for 347,222 common shares at an exercise price of $0.43 per share in conjunction with the additional draw on a finance receivable during the three months ended March 31, 2014. The fair value of the warrant of $99,000 was deferred and reflected in other assets in the unaudited condensed consolidated balance sheet. |
Note_1_SWK_Holdings_Corporatio
Note 1 - SWK Holdings Corporation and Summary of Significant Accounting Policies | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Accounting Policies [Abstract] | ' | ||||||||
Significant Accounting Policies [Text Block] | ' | ||||||||
Note 1. SWK Holdings Corporation and Summary of Significant Accounting Policies | |||||||||
Nature of Operations | |||||||||
SWK Holdings Corporation (“SWK” or the “Company”) is engaged in investing in the pharmaceutical and biotechnology royalty securitization market. The Company’s strategy is to provide capital to a broad range of life science companies, institutions and inventors. The Company is currently focused on monetizing cash flow streams derived from commercial-stage products and related intellectual property through royalty purchases and financings, as well as through the creation of synthetic revenue interests in commercialized products. The Company intends to fill a niche that it believes is underserved in the sub-$50 million transaction size. The Company’s goal is to redeploy its existing assets to earn interest, fee, and other income pursuant to this strategy, and the Company continues to identify and review financing and similar opportunities on an ongoing basis. In addition the Company is also engaged in the business of providing investment advisory services to institutional clients. | |||||||||
The Company has net operating loss carryforwards (“NOLs”) and believes that the ability to utilize these NOLs is an important and substantial asset. The Company believes that the foregoing business strategies can create value for its stockholders, and produce prospective taxable income (or the ability to generate capital gains) that might permit the Company to utilize the NOLs. The Company is unable to assure investors that it will find suitable financing opportunities or that it will be able to utilize its existing NOLs. | |||||||||
Basis of Presentation | |||||||||
The Company’s unaudited condensed consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States (“GAAP”). The unaudited condensed consolidated financial statements include the accounts of all subsidiaries and affiliates in which the Company holds a controlling financial interest as of the financial statement date. Normally a controlling financial interest reflects ownership of a majority of the voting interests. The Company consolidates a variable interest entity (“VIE”) when it possesses both the power to direct the activities of the VIE that most significantly impact its economic performance and the Company is either obligated to absorb the losses that could potentially be significant to the VIE or the Company holds the right to receive benefits from the VIE that could potentially be significant to the VIE, after elimination of intercompany accounts and transactions. | |||||||||
The Company owns interests in various partnerships and limited liability companies, or LLCs. The Company consolidates its investments in these partnerships or LLCs, where the Company, as the general partner or managing member, exercises effective control, even though the Company’s ownership is less than 50%. The related governing agreements provide the Company with broad powers, and the other parties do not participate in the management of the entity and do not have the substantial ability to remove the Company. The Company has reviewed each of the underlying agreements to determine if it has effective control. If circumstances changed and it was determined this control did not exist, this investment would be recorded using the equity method of accounting. Although this would change individual line items within the Company’s condensed consolidated financial statements, it would have no effect on our operations and/or total stockholders’ equity attributable to the Company. The Company operates in one operating segment with a single management team that reports to the chief executive officer, who is the Company’s chief operating decision maker. | |||||||||
Unaudited Interim Financial Information | |||||||||
The unaudited condensed consolidated financial statements have been prepared by the Company and reflect all normal, recurring adjustments that, in the opinion of management, are necessary for a fair presentation of the interim financial information. The results of operations for the interim periods presented are not necessarily indicative of the results to be expected for any subsequent quarter or for the year ending December 31, 2014. Certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted under the rules and regulations of the Securities and Exchange Commission (“SEC”). These unaudited condensed consolidated financial statements and notes included herein should be read in conjunction with the audited consolidated financial statements and notes included in the Company's Annual Report on Form 10-K for the year ended December 31, 2013, filed with the SEC on March 31, 2014. The year-end unaudited condensed consolidated balance sheet data was derived from the Company's audited financial statements, but does not include all disclosures required by GAAP. | |||||||||
Variable Interest Entities | |||||||||
An entity is referred to as a VIE if it possesses one of the following criteria: (i) it is thinly capitalized, (ii) the residual equity holders do not control the entity, (iii) the equity holders are shielded from the economic losses, (iv) the equity holders do not participate fully in the entity's residual economics, or (v) the entity was established with non-substantive voting interests. The Company consolidates a VIE when it has both the power to direct the activities that most significantly impact the activities of the VIE and the right to receive benefits or the obligation to absorb losses of the entity that could be potentially significant to the VIE. Along with the VIEs that are consolidated in accordance with these guidelines, the Company also holds variable interests in other VIEs that are not consolidated because it is not the primary beneficiary. The Company continually monitors both consolidated and unconsolidated VIEs to determine if any events have occurred that could cause the primary beneficiary to change. See Note 4 for further discussion of VIEs. | |||||||||
Use of Estimates | |||||||||
The preparation of the Company’s unaudited condensed consolidated financial statements in conformity with GAAP requires the Company to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the unaudited condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Significant estimates and assumptions are required in the determination of revenue recognition, stock-based compensation, impairment of financing receivables and long-lived assets, valuation of warrants, useful lives of property and equipment, income taxes and contingencies and litigation, among others. Some of these judgments can be subjective and complex, and, consequently, actual results may differ from these estimates. The Company estimates often are based on complex judgments, probabilities and assumptions that it believes to be reasonable but that are inherently uncertain and unpredictable. For any given individual estimate or assumption made by the Company, there may also be other estimates or assumptions that are reasonable. | |||||||||
The Company regularly evaluates its estimates and assumptions using historical experience and other factors, including the economic environment. As future events and their effects cannot be determined with precision, the Company’s estimates and assumptions may prove to be incomplete or inaccurate, or unanticipated events and circumstances may occur that might cause us to change those estimates and assumptions. Market conditions, such as illiquid credit markets, volatile equity markets, and economic downturn, can increase the uncertainty already inherent in the Company’s estimates and assumptions. The Company adjusts its estimates and assumptions when facts and circumstances indicate the need for change. Those changes generally will be reflected in our condensed consolidated financial statements on a prospective basis unless they are required to be treated retrospectively under the relevant accounting standard. It is possible that other professionals, applying reasonable judgment to the same facts and circumstances, could develop and support a range of alternative estimated amounts. | |||||||||
Equity Method Investments | |||||||||
The Company accounts for portfolio companies whose results are not consolidated, but over which it exercises significant influence, under the equity method of accounting. Whether or not the Company exercises significant influence with respect to a portfolio company depends on an evaluation of several factors including, among others, representation of the Company on the portfolio company’s board of directors and the Company’s ownership level. Under the equity method of accounting, the Company does not reflect a portfolio company’s financial statements within the company’s unaudited consolidated financial statements; however, the Company’s share of the income or loss of such portfolio company is reflected in income in the unaudited condensed consolidated statements of income. The Company includes the carrying value of equity method portfolio companies as part of the investment in unconsolidated entities on the unaudited condensed consolidated balance sheets. | |||||||||
When the Company’s carrying value in an equity method portfolio company is reduced to zero, the Company records no further losses in its unaudited condensed consolidated statements of income unless the Company has an outstanding guarantee obligation or has committed additional funding to such equity method portfolio company. When such equity method portfolio company subsequently reports income, the Company will not record its share of such income until it exceeds the amount of the Company’s share of losses not previously recognized. | |||||||||
Finance Receivables | |||||||||
The Company extends credit to customers through a variety of financing arrangements, including revenue interest term loans. The amounts outstanding on loans are referred to as finance receivables and are included in Finance Receivables on the unaudited condensed consolidated balance sheets. It is the Company’s expectation that the loans originated will be held for the foreseeable future or until maturity. In certain situations, for example to manage concentrations and/or credit risk, some or all of certain exposures may be sold. Loans for which the Company has the intent and ability to hold for the foreseeable future or until maturity are classified as held for investment (“HFI”). If the Company no longer has the intent or ability to hold loans for the foreseeable future, then the loans are transferred to held for sale (“HFS”). Loans entered into with the intent to resell are classified as HFS. | |||||||||
If it is determined that a loan should be transferred from HFI to HFS, then the balance is transferred at the lower of cost or fair value. At the time of transfer, a write-down of the loan is recorded as a write-off when the carrying amount exceeds fair value and the difference relates to credit quality, otherwise the write-down is recorded as a reduction in interest and other Income, and any loan loss reserve is reversed. Once classified as HFS, the amount by which the carrying value exceeds fair value is recorded as a valuation allowance and is reflected as a reduction to interest and other income. | |||||||||
If it is determined that a loan should be transferred from HFS to HFI, the loan is transferred at the lower of cost or fair value on the transfer date, which coincides with the date of change in management’s intent. The difference between the carrying value of the loan and the fair value, if lower, is reflected as a loan discount at the transfer date, which reduces its carrying value. Subsequent to the transfer, the discount is accreted into earnings as an increase to finance revenue over the life of the loan using the effective interest method. | |||||||||
Finance receivables are stated at their principal amounts inclusive of deferred loan origination fees. Interest income is credited as earned based on the effective interest rate method except when a finance receivable becomes past due 90 days or more and doubt exists as to the ultimate collection of interest or principal; in those cases the recognition of income is discontinued. | |||||||||
Marketable Investments | |||||||||
Available-for-sale securities are reported at fair value with unrealized gains or losses recorded in accumulated other comprehensive income, net of applicable income taxes. The available-for-sale portfolio as of March 31, 2014 and December 31, 2013 includes one debt security. In any case where fair value might fall below amortized cost, the Company would consider whether that security is other-than-temporarily impaired using all available information about the collectability of the security. The Company would not consider that an other-than temporary impairment for a debt security has occurred if (1) the Company does not intend to sell the debt security, (2) it is not more likely than not that the Company will be required to sell the debt security before recovery of its amortized cost basis and (3) the present value of estimated cash flows will fully cover the amortized cost of the security. The Company would consider that an other-than-temporary impairment has occurred if any of the above mentioned three conditions are not met. | |||||||||
For a debt security for which an other-than-temporary impairment is considered to have occurred, the Company would recognize the entire difference between the amortized cost and the fair value in earnings if the Company intends to sell the debt security or it is more likely than not that the Company will be able to sell the debt security before recovery of its amortized cost basis. If the Company does not intend to sell the debt security and it is not more likely than not that the Company will be required to sell the debt security before recovery of its amortized cost basis, the Company would separate the difference between the amortized cost and the fair value of the debt security into the credit loss component and the non-credit loss component. The credit loss component would be recognized in earnings and the non-credit loss component would be recognized in other comprehensive income, net of applicable income taxes. | |||||||||
Derivatives | |||||||||
All derivatives held by the Company are recognized in the unaudited condensed consolidated balance sheets at fair value. The accounting treatment for subsequent changes in the fair value depends on their use, and whether they qualify as effective “hedges” for accounting purposes. Derivatives that are not hedges must be adjusted to fair value through the unaudited condensed consolidated statements of income. If a derivative is a hedge, then depending on its nature, changes in its fair value will be either offset against change in the fair value of hedged assets or liabilities through the unaudited condensed consolidated statements of income, or recorded in other comprehensive income. The Company had no derivatives designated as hedges as of March 31, 2014 and December 31, 2013. The Company holds three warrants issued to the Company in conjunction with the term loan investments discussed in Note 2. These warrants are included in other assets in the unaudited condensed consolidated balance sheets. The Company issued a warrant on its own common stock in the year ended December 31, 2013, in conjunction with its credit facility discussed in Note 5. This warrant meets the definition of a derivative and is reflected as warrant liability at fair value in the unaudited condensed consolidated balance sheets as of March 31, 2014 and December 31, 2013. | |||||||||
Revenue Recognition | |||||||||
The Company records interest income on an accrual basis based on the effective interest rate method to the extent that it expects to collect such amounts. The Company recognizes investment management fees as earned over the period the services are rendered. In general, the majority of investment management fees earned are charged either monthly or quarterly. Incentive fees, if any, are recognized when earned at the end of the relevant performance period, pursuant to the underlying contract. Other administrative service revenues are recognized when contractual obligations are fulfilled or as services are provided. | |||||||||
Certain Risks and Concentrations | |||||||||
Financial instruments that potentially subject the Company to significant concentrations of credit risk consist primarily of cash and cash equivalents, accounts receivable, finance receivables and marketable investments. The Company invests its excess cash with major U.S. banks and financial institutions. The Company has not experienced any losses on its cash and cash equivalents. | |||||||||
The Company performs ongoing credit evaluations of its customers and generally requires collateral. For the three months ended March 31, 2014, three partner companies accounted for 73 percent of total revenue. For the three months ended March 31, 2013, one partner company accounted for 87 percent of total revenue. | |||||||||
The Company does not expect its current or future credit risk exposures to have a significant impact on its operations. However, there can be no assurance that its business will not experience any adverse impact from credit risk in the future. | |||||||||
Net Income per Share | |||||||||
Basic 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): | |||||||||
Three Months Ended | |||||||||
31-Mar-14 | 31-Mar-13 | ||||||||
Numerator: | |||||||||
Net income attributable to SWK Holdings Corporation Shareholders | $ | 1,457 | $ | 60 | |||||
Denominator: | |||||||||
Weighted-average shares outstanding | 41,462 | 41,316 | |||||||
Effect of dilutive securities | 68 | 80 | |||||||
Weighted-average diluted shares | 41,530 | 41,396 | |||||||
Basic earnings per share | $ | 0.04 | $ | 0 | |||||
Diluted earnings per share | $ | 0.04 | $ | 0 | |||||
For the three month period ended March 31, 2014 and 2013, outstanding stock options and warrants to purchase shares of common stock in an aggregate of approximately 4,175,000 and 3,205,000 shares, respectively, have been excluded from the calculation of diluted net income per share as all such securities were anti-dilutive. | |||||||||
Reclassifications | |||||||||
Certain prior period amounts in the unaudited condensed consolidated financial statements have been reclassified to conform to the current period’s presentation. | |||||||||
Recent Accounting Pronouncements | |||||||||
In July 2013, the FASB issued ASU 2013-11, Income Taxes (Topic 740): Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists. Under this new guidance, companies must present this unrecognized tax benefit in the consolidated financial statements as a reduction to deferred tax assets created by net operating losses or other tax credits from prior periods that occur in the same taxing jurisdiction. If the unrecognized tax benefit exceeds such credits it should be presented in the consolidated financial statements as a liability. This update is effective for annual and interim reporting periods for fiscal years beginning after December 15, 2013. The adoption of this standard did not have any impact on the Company’s operating results and financial position. |
Note_2_Finance_Receivables
Note 2 - Finance Receivables | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Receivables [Abstract] | ' | ||||||||
Loans, Notes, Trade and Other Receivables Disclosure [Text Block] | ' | ||||||||
Note 2. Finance Receivables | |||||||||
Finance receivables are reported at their determined principal balances net of any unearned income, cumulative charge-offs and unamortized deferred fees and costs. Unearned income and deferred fees and costs are amortized to interest income based on all cash flows expected using the effective interest method. | |||||||||
The carrying value of finance receivables are as follows (in thousands): | |||||||||
31-Mar-14 | 31-Dec-13 | ||||||||
Portfolio | |||||||||
Term Loans | $ | 33,794 | $ | 21,420 | |||||
Royalty Purchases | 7,871 | 7,866 | |||||||
Total | 41,665 | 29,286 | |||||||
Less: current portion | (957 | ) | (660 | ) | |||||
Total noncurrent portion of finance receivables | 40,708 | $ | 28,626 | ||||||
Term Loans | |||||||||
Nautilus Neurosciences, Inc. | |||||||||
On December 5, 2012, the Company entered into a credit agreement pursuant to which the lenders party thereto provided to a neurology-focused specialty pharmaceutical company a term loan in the principal amount of $22,500,000. The loan was repaid on December 17, 2013. The Company initially provided $19,000,000 and a client of the Company provided the remaining $3,500,000 of the loan. The Company subsequently assigned $12,500,000 of the loan to its clients and retained the remaining $6,500,000. The loan was managed by the Company on behalf of its clients pursuant to the terms of each client’s investment management agreement. | |||||||||
The Company recognized $374,000 in interest income, recorded as revenue in the unaudited condensed consolidated statement of income for the three months ended March 31, 2013. | |||||||||
Tribute | |||||||||
On August 8, 2013, the Company entered into a credit agreement pursuant to which the Company provided to Tribute Pharmaceuticals Canada Inc. ("Tribute") a secured term loan in the principal amount of $8,000,000. The loan matures on August 8, 2018. The Company provided $6,000,000 at closing and an additional $2,000,000 on February 4, 2014. | |||||||||
Interest and principal under the loan will be paid by a tiered revenue interest that is charged on quarterly net sales and royalties of Tribute applied in the following priority first, to the payment of all accrued but unpaid interest until paid in full; second to the payment of all principal of the loans. | |||||||||
The loan accrues interest at the LIBOR rate, plus an applicable margin, subject to a 13.5% minimum. In addition, the Company earned an origination fee at closing, and the Company is entitled to an exit fee upon the maturity of the loan, both of which will be accreted to interest income over the term of the loan. The Company recognized $276,000 in interest income recorded as revenue in the unaudited condensed consolidated statement of income for the three months ended March 31, 2014. | |||||||||
In connection with the loan and at closing, Tribute also issued the Company a warrant to purchase 755,794 common shares an exercise price of $0.60 per share that may be exercised at any time prior to August 8, 2020 with an initial fair value of $334,000. In conjunction with the additional draw on February 4, 2014, Tribute issued an additional warrant to purchase 347,222 common shares with an exercise price of $0.432 per share that may be exercised at any time prior to February 4, 2021 with an initial fair value of $99,000. | |||||||||
The fair market value of the warrants was $415,000 at March 31, 2014, and is included in other assets in the unaudited condensed consolidated balance sheet. An unrealized holdings gain of $112,000 was included in interest and other income (expense), net in the unaudited condensed consolidated statements of income for the three months ended March 31, 2014. The Company determined the fair value of the warrant outstanding at March 31, 2014 and December 31, 2013, using the Black-Scholes option pricing model with the following assumptions: | |||||||||
31-Mar-14 | 31-Dec-13 | ||||||||
Dividend rate | 0 | % | 0 | % | |||||
Risk-free rate | 2.3 | % | 2.5 | % | |||||
Expected life (years) | 6.4 | 6.6 | |||||||
Expected volatility | 99 | % | 97 | % | |||||
In the event of a change of control, a merger or a sale of all or substantially all of Tribute’s assets, the loan shall be due and payable. The Company will be entitled to certain additional payments in connection with repayments of the loan, both on maturity and in connection with a prepayment or partial prepayment. Pursuant to the terms of the credit agreement, Tribute entered into a guaranty and collateral agreement granting the Company a security interest in substantially all of Tribute’s assets. The credit agreement contains certain affirmative and negative covenants. The obligations under the credit agreement to repay the loan may be accelerated upon the occurrence of an event of default under the credit agreement. | |||||||||
SynCardia Credit Agreement | |||||||||
First Lien Credit Agreement | |||||||||
On December 13, 2013, the Company entered into a credit agreement pursuant to which the Company provided to SynCardia Systems, Inc. ("SynCardia"), a privately-held manufacturer of the world's first and only FDA, Health Canada and CE (Europe) approved Total Artificial Heart, a secured term loan in the principal amount of $4,000,000. The loan was an expansion of the SynCardia's existing credit facility, resulting in a total outstanding amount under the existing credit facility of $16,000,000 at closing. At the lenders' option, the lenders can increase the term loan to $22,000,000; the Company has the right but not the obligation to advance $1,500,000 of any potential increase. The Company funded the $4,000,000, net of an original issue discount of $60,000 and an arrangement fee of $40,000 at closing. | |||||||||
The loan matures on March 5, 2018, with principal due upon maturity. The loan bears interest at a rate of 13.5%. | |||||||||
Pursuant to the terms of the credit agreement and subject to a security agreement, SynCardia granted the lenders a first priority security interest in substantially all of its assets. The security agreement contains certain affirmative and negative covenants. | |||||||||
In the event of a change of control, a merger or a sale of all or substantially all of SynCardia's assets, the loan shall be due and payable. The lenders will be entitled to certain additional payments in connection with repayments of the loan, both on maturity and in connection with a prepayment or partial prepayment. The obligations to repay the loan may be accelerated upon the occurrence of an event of default under the credit agreement. | |||||||||
In addition to the discount and arrangement fee, the Company is entitled to an exit fee upon the maturity of the loan, both of which will be accreted to interest income over the term of the loan. The Company recognized $164,000 in interest income recorded as revenue in the unaudited condensed consolidated statement of income for the three months ended March 31, 2014. | |||||||||
Second Lien Credit Agreement | |||||||||
On December 13, 2013, the Company also entered into a second lien credit agreement, pursuant to which the Company and other lender parties thereto provided to SynCardia, a term loan in the principal amount of $10,000,000 (the "Second Lien Loan"). The Company provided $6,000,000 principal amount of the Second Lien Loan, funded at closing net of an origination fee of $90,000. The Second Lien Loan matures on December 13, 2021. | |||||||||
The Second Lien Loan shall be repaid by a tiered revenue interest that is charged on quarterly net sales and royalties of, and any other income and revenue actually received by SynCardia. Pursuant to the terms of the Second Lien Loan, SynCardia granted the lenders a second priority security interest in its assets subject to a security agreement which contains certain affirmative and negative covenants. | |||||||||
In the event of a Change of Control, the Second Lien Loan shall be due, with the total amount payable to the lenders equal to a specified premium defined by the terms of the Second Lien Loan. The obligations to repay the Second Lien Loan may be accelerated upon the occurrence of an event of default under the terms of the Second Lien Loan. | |||||||||
The Company recognized $408,000 in interest income recorded as revenue in the unaudited condensed consolidated statement of income for the three months ended March 31, 2014. | |||||||||
Common Stock Purchase | |||||||||
In conjunction with the first lien secured term loan, the Company purchased from SynCardia an aggregate of 40,000 shares of SynCardia's Common Stock, in consideration for the mutual covenants and agreements set forth in the credit agreement. The shares purchased by the Company reflect an ownership percentage in SynCardia of less than 0.05%. The Company deems the shares to be non-marketable as SynCardia is privately held and in development stage, and has reflected the shares at a zero cost basis at March 31, 2014 and December 31, 2013. | |||||||||
Private Dental Products Company | |||||||||
On December 10, 2013, the Company entered into a credit agreement to provide a private dental products company ("Dental Products Company") a senior secured term loan with a principal amount of $6,000,000 funded upon close net of an arrangement fee of $60,000. The Loan matures on December 10, 2018. | |||||||||
Interest and principal under the loan will be paid by a tiered revenue interest that is charged on quarterly net sales and royalties of the Dental Products Company. Pursuant to the terms of the agreement, the Company was granted a first priority security interest in substantially all of the Dental Products Company's assets. The loan accrues interest at the Libor Rate, plus an applicable margin; the Libor Rate is subject to minimum floor values such that that minimum interest rate is 14%. | |||||||||
In the event of a change of control, a merger or a sale of all or substantially all of the Dental Products Company's assets, the loan shall be due and payable. The Company will be entitled to certain additional payments in connection with repayments, both on maturity and in connection with prepayments. | |||||||||
The Company also received a warrant to purchase up to 225 shares of the Dental Products Company's common stock, which if exercised, is equivalent to approximately four percent ownership on a fully diluted basis. The warrant expires December 10, 2020. The warrant is valued at zero at March 31, 2014 and December 31, 2013, in the unaudited condensed consolidated balance sheets. | |||||||||
In addition to the arrangement fee, the Company is entitled to an exit fee upon the maturity of the loan, both of which will be accreted to interest income over the term of the loan. The Company recognized $221,000 in interest income recorded as revenue in the unaudited condensed consolidated statement of income for the three months ended March 31, 2014. | |||||||||
Parnell Pharmaceuticals Holdings Pty Ltd | |||||||||
On January 23, 2014, the Company entered into a credit agreement pursuant to which the lenders party thereto provided to Parnell Pharmaceuticals Holdings Pty Ltd, a leading global veterinary pharmaceutical business (“Parnell”), a term loan in the principal amount of $25,000,000. The Company provided $10,000,000 and the Company's investment advisory clients provided the remaining $15,000,000 of the loan. The Company serves as the Agent, Sole Lead Arranger and Sole Bookrunner under the credit agreement. The loan matures on January 23, 2021. | |||||||||
Parnell is obligated to make payments calculated on its quarterly net sales and royalties until such time as the lenders receive a 2.0x cash on cash return. The revenue based payment is subject to certain quarterly and annual caps. The total amount payable is subject to adjustment under certain events including qualified partial payments, a change of control or full prepayment of the loan. The revenue based payment is made quarterly. All amounts applied under the revenue based payment will be made to each lender according to its pro-rata share of the loan. | |||||||||
Pursuant to the terms of the credit agreement, Parnell granted the lenders a first priority security interest in substantially all of Parnell's assets. The credit agreement contains certain affirmative and negative covenants. Parnell’s U.S., U.K., Australian, New Zealand subsidiaries have guaranteed the obligations under the credit agreement. The obligations to repay the loan may be accelerated upon the occurrence of an event of default under the terms of the credit agreement. | |||||||||
The Company recognized a syndication fee of $375,000 and $290,000 in interest income recorded as revenue in the unaudited condensed consolidated statement of income for the three months ended March 31, 2014. | |||||||||
Royalty Purchases | |||||||||
Bess Royalty Purchase | |||||||||
On April 2, 2013, the Company, along with Bess Royalty, LP ("Bess"), purchased a royalty stream paid on the net sales of Besivance®, an ophthalmic antibiotic, from InSite Vision, Inc. Besivance is marketed globally by Bausch & Lomb. The initial purchase price totaled $15,000,000; the Company funded $6,000,000 of the purchase price at closing to own 40.3125% of the royalty stream. Additional contingent consideration includes (i) $1,000,000 to be paid by Bess upon certain net sales milestones achieved by Bausch & Lomb and (ii) annual payments to be remitted to InSite Vision, Inc. once aggregate royalty payments received by the Company and Bess exceed certain thresholds. Bess paid the $1,000,000 contingent consideration in February 2014, which did not result in a change in the Company's interest in the royalty. The purchased royalty stream does not include any further amounts once the aggregate royalty payments received by the Company and Bess reach a certain threshold as defined in the underlying agreement. As the purchased royalty stream has been capped by the defined threshold amount, in effect limiting the Company’s implicit rate of return, the Company’s share of the purchase price has been reflected as a Finance Receivable in the unaudited condensed consolidated financial statements. The Company recognized approximately $260,000 in interest income in the unaudited condensed consolidated statement of income for the three months ended March 31, 2014, representing the Company’s pro rata portion of royalties paid. | |||||||||
Tissue Regeneration Therapeutics Royalty Purchase | |||||||||
On June 12, 2013, the Company purchased from Tissue Regeneration Therapeutics, Inc. (“TRT”) two royalty streams derived from the licensed use of TRT’s technology in the family cord banking services sector. The initial purchase totaled $2,000,000 paid upon closing. Additional contingent consideration includes (i) $1,250,000 payable upon aggregate royalty payments reaching a certain threshold and (ii) annual sharing payments due to TRT once aggregate royalty payments received by the Company exceed the purchase price paid by the Company. The purchased royalty stream does not include any further amounts once the aggregate royalty payments received by the Company reach a certain threshold as defined in the underlying agreement. The purchase has been reflected as a Finance Receivable in the unaudited condensed consolidated financial statements. The Company recognized approximately $91,000 in interest income recorded as revenue in the unaudited condensed consolidated statement of income for the three months ended March 31, 2014. | |||||||||
Credit Quality of Finance Receivables | |||||||||
On a quarterly basis, the Company evaluates the carrying value of each finance receivable for impairment. Currently there are no finance receivables considered impaired and no corresponding allowance for credit losses for impaired loans. | |||||||||
A term loan is considered to be impaired when, based on current information and events, it is determined that the Company will not be able to collect all amounts due according to the loan contract, including scheduled interest payments. This evaluation is generally based on delinquency information, an assessment of the borrower’s financial condition and the adequacy of collateral, if any. The Company would generally place term loans on nonaccrual status when the full and timely collection of interest or principal becomes uncertain and they are 90 days past due for interest or principal, unless the term loan is both well-secured and in the process of collection. When placed on nonaccrual, the Company would reverse any accrued unpaid interest receivable against interest income and amortization of any net deferred fees is suspended. Generally, the Company would return a term loan to accrual status when all delinquent interest and principal become current under the terms of the credit agreement and collectability of remaining principal and interest is no longer doubtful. | |||||||||
Receivables associated with royalty stream purchases would be considered to be impaired when it is probable that the Company will be unable to collect the book value of the remaining investment based upon adverse changes in the estimated underlying royalty stream. | |||||||||
When the Company identifies a finance receivable as impaired, it measures the impairment based on the present value of expected future cash flows, discounted at the receivable’s effective interest rate. If it is determined that the value of an impaired receivable is less than the recorded investment, the Company would recognize impairment with a charge to the allowance for credit losses. When the value of the impaired receivable is calculated by discounting expected cash flows, interest income would be recognized using the receivable’s effective interest rate over the remaining life of the receivable. | |||||||||
The Company would individually develop the allowance for credit losses for any identified impaired loans if any existed. In developing the allowance for credit losses, the Company would consider, among other things, the following credit quality indicators: | |||||||||
• business characteristics and financial conditions of obligors; | |||||||||
• current economic conditions and trends; | |||||||||
• actual charge-off experience; | |||||||||
• current delinquency levels; | |||||||||
• value of underlying collateral and guarantees; | |||||||||
• regulatory environment; and | |||||||||
• any other relevant factors predicting investment recovery. | |||||||||
The Company monitors the credit quality indicators of performing and non-performing assets. At March 31, 2014 and December 31, 2013, the Company did not have any non-performing assets. |
Note_3_Marketable_Investments
Note 3 - Marketable Investments | 3 Months Ended | ||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | ' | ||||||||||||||||
Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block] | ' | ||||||||||||||||
Note 3. Marketable Investments | |||||||||||||||||
On July 9, 2013, the Company entered into a note purchase agreement to purchase, at par, $3,000,000 of a total $100,000,000 aggregate principal amount offering of a Senior Secured notes due in November 2026. The notes pay interest quarterly at a rate of 11.5% per annum commencing November 15, 2013. The agreement allows the first interest payment date to include paid-in-kind notes for any cash shortfall, of which the Company received $119,000 on November 15, 2013. Subsequent interest payments from February 15, 2014, through May 15, 2015, will be supported by a cash interest reserve account funded at close of $4,500,000. The notes are subject to redemption on or after July 10, 2015, at a price at or above par, as defined. The notes are secured only by certain royalty and milestone payments associated with the sales of pharmaceutical products. The notes are reflected at fair value as Available-for-sale securities. The Company recognized approximately $91,000 in interest income recorded as revenue in the unaudited condensed consolidated statement of income for the three months ended March 31, 2014. During the three months ended March 31, 2014 and the year ended December 31, 2013, the Company had no sales of available-for-sale securities and no securities have been considered impaired. | |||||||||||||||||
The amortized cost basis amounts, gross unrealized holding gains, gross unrealized holding losses and fair values of available-for-sale securities at March 31, 2014 and December 31, 2013, are as follows (in thousands): | |||||||||||||||||
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Loss | Fair Value | ||||||||||||||
Available for Sale Securities: | |||||||||||||||||
Corporate debt securities | $ | 3,119 | $ | - | $ | - | $ | 3,119 | |||||||||
$ | 3,119 | $ | - | $ | - | $ | 3,119 | ||||||||||
Note_4_Variable_Interest_Entit
Note 4 - Variable Interest Entities | 3 Months Ended | |||||||||
Mar. 31, 2014 | ||||||||||
Variable Interest Entities [Abstract] | ' | |||||||||
Variable Interest Entities [Text Block] | ' | |||||||||
Note 4. Variable Interest Entities | ||||||||||
The Company consolidates the activities of VIEs of which we are the primary beneficiary. The primary beneficiary of a VIE is the variable interest holder possessing a controlling financial interest through (i) its power to direct the activities of the VIE that most significantly impact the VIE’s economic performance and (ii) its obligation to absorb losses or its right to receive benefits from the VIE that could potentially be significant to the VIE. In order to determine whether the Company owns a variable interest in a VIE, the Company performs qualitative analysis of the entity’s design, organizational structure, primary decision makers and relevant agreements. | ||||||||||
Consolidated VIE | ||||||||||
SWK HP Holdings LP (“SWK HP”) | ||||||||||
SWK HP was formed in December 2012 to acquire a limited partnership interest in Holmdel Pharmaceuticals LP ("Holmdel"). Holmdel acquired the U.S. marketing authorization rights to a beta blocker pharmaceutical product indicated for the treatment of hypertension for a total purchase price of $13,000,000. The Company, through its wholly owned subsidiary SWK Holdings GP LLC ("SWK Holdings GP") acquired a direct general partnership interest in SWK HP, which in turn acquired a limited partnership interest in Holmdel. The total investment in SWK HP of $13,000,000 included $6,000,000 provided by SWK Holdings GP and $7,000,000 provided by non-controlling interests. Subject to customary limited partner protections afforded the investors by the terms of the limited partnership agreement, the Company maintains voting and managerial control of SWK HP and therefore includes it in its consolidated financial statements. | ||||||||||
SWK HP is considered a VIE due to the lack of voting or similar decision-making rights by its equity holders regarding activities that have a significant effect on the economic success of the partnership. The Company’s ownership in SWK HP constitutes variable interests. The Company has determined that it is the primary beneficiary of the SWK HP as (i) the Company has the power to direct the activities that most significantly impact the economic performance of SWK HP via its obligations to perform under the partnership agreement, and (ii) the Company has the right to receive residual returns that could potentially be significant to SWK HP. As a result, the Company consolidates SWK HP in its financial statements and the limited partner interests of SWK HP owned by third parties are reflected as a non-controlling interest in the Company’s unaudited condensed consolidated balance sheets. | ||||||||||
Unconsolidated VIEs | ||||||||||
Holmdel | ||||||||||
SWK HP has significant influence over the decisions made by Holmdel. SWK HP will receive quarterly distributions of cash flow generated by the pharmaceutical product according to a tiered scale that is subject to certain cash on cash returns received by SWK HP. Until SWK HP receives a 1x cash on cash return on its interest in Holmdel, SWK HP will receive approximately 84% of the pharmaceutical product’s cash flow. As the cash on cash multiple received by SWK HP Holdings LP increases, SWK HP’s interest in the cash flow generated by the pharmaceutical product decreases, but in no instance will it decline below 39%. Holmdel is considered a VIE because SWK HP’s control over the partnership is disproportionate to its economic interest. This VIE remains unconsolidated as the power to direct the activities of the partnership is not held by the Company. The Company is using the equity method to account for this investment. SWK HP’s current ownership in Holmdel approximates 84%. The Company accounts for its interest in the entity based on the timing of quarterly distributions, which are paid on a quarter lag basis. For the three months ended March 31, 2014, the Company recognized $1,503,000 of equity method gains, of which $801,000 was attributable to the non-controlling interest in SWK HP. No equity method gains were recognized in the three months ended March 31, 2013. In addition, SWK HP received cash distributions totaling $1,976,000 during the three months ended March 31, 2014, of which $1,055,000 was subsequently paid to holders of the non-controlling interests in SWK HP. Changes in the carrying amount of the Company’s investment in Holmdel for the three months ended March 31, 2014, are as follows (in thousands): | ||||||||||
Balance at December 31, 2013 | $ | 10,425 | ||||||||
Add: Income from investments in unconsolidated entities | 1,503 | |||||||||
Less: Cash distribution on investments in unconsolidated entities | (1,976 | ) | ||||||||
Balance at March 31, 2014 | $ | 9,952 | ||||||||
The following table provides the financial statement information related to Holmdel: | ||||||||||
As of March 31, | Three months ended | |||||||||
2014 | 31-Mar-14 | |||||||||
(in millions) | (in millions) | |||||||||
Assets | $ | 13.7 | Revenue | $ | 2.4 | |||||
Liabilities | $ | 2.3 | Expenses | $ | 0.6 | |||||
Equity | $ | 11.4 | Net income | $ | 1.8 | |||||
Note_5_Loan_Credit_Agreement_w
Note 5 - Loan Credit Agreement with Related Party | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Debt Disclosure [Abstract] | ' | ||||||||
Debt Disclosure [Text Block] | ' | ||||||||
Note 5. Loan Credit Agreement with Related Party | |||||||||
The Company entered a credit facility with an affiliate of a stockholder on September 6, 2013. The credit facility provides financing for the Company, primarily for the purchase of eligible investments. The facility matures on September 6, 2017 and provides that the loan shall accrue interest at the LIBOR rate plus a 6.50% margin. As of March 31, 2014 and December 31, 2013, the applicable interest rate was 6.73% and 6.75%, respectively. The principal is repayable in full at maturity. The facility works as a delayed draw credit facility with the Company having the ability to drawdown, as necessary, over the first 18 months (the "Draw Period") up to $30,000,000, based on certain conditions. The credit facility provided for an initial $15,000,000 to be available at closing. The Company executed a draw of $5,000,000 on December 9, 2013. During the three months ended March 31, 2014, the Company has executed of an additional draw of $6,000,000 to fund certain eligible investments. The balances of $11,000,000 and $5,000,000 are reflected as Loan credit agreement in the unaudited condensed consolidated balance sheet as of March 31, 2014 and December 31,2013, respectively. On or before the last day of the Draw Period, the Company can request the loan amount to be increased to $30 million upon the Company realizing net proceeds of at least $10 million in cash through the issuance of new equity securities. Repayment of the facility is due upon maturity, four years from the closing date. The stockholder’s affiliate, as lender, has received a security interest in basically all assets of the Company as collateral for the facility. In conjunction with the credit facility, the Company issued warrants to the stockholder’s affiliate for 1,000,000 shares of the Company’s common stock at a strike price of $1.3875. In connection with the credit agreement, the Company and the stockholder and certain of the stockholder’s affiliates, including the lender entered into a Voting Rights Agreement restricting the stockholder’s and such affiliates’ voting rights under certain circumstances and providing the stockholder and such affiliates a right of first offer on certain future share issuances. | |||||||||
Due to certain provisions within the warrant agreement, the warrants meets the definition of a derivative and do not qualify for a scope exception as it is not considered indexed in the Company’s stock. As such, the warrants with a value of $250,000 and $292,000 at March 31, 2014 and December 31, 2013, are reflected as a warrant liability in the unaudited condensed consolidated balance sheet. An unrealized gain of $42,000 was included in interest and other income in the unaudited condensed consolidated statements of income for the three months ended March 31, 2014. The Company determined the fair value using the Black-Scholes option pricing model with the following assumptions: | |||||||||
31-Mar-14 | 31-Dec-13 | ||||||||
Dividend rate | 0 | % | 0 | % | |||||
Risk-free rate | 2.3 | % | 2.5 | % | |||||
Expected life (years) | 6.4 | 6.7 | |||||||
Expected volatility | 28.6 | % | 27 | % | |||||
During the three months ended March 31, 2014, the Company recognized interest expense totaling $189,000. Interest expense included $153,000 of interest due the lender and $36,000 of debt issuance cost amortization. |
Note_6_Stockholders_Equity
Note 6 - Stockholders' Equity | 3 Months Ended | |||||||||||||||||||||||
Mar. 31, 2014 | ||||||||||||||||||||||||
Stockholders' Equity Note [Abstract] | ' | |||||||||||||||||||||||
Stockholders' Equity Note Disclosure [Text Block] | ' | |||||||||||||||||||||||
Note 6. Stockholders’ Equity | ||||||||||||||||||||||||
Stock Compensation Plans | ||||||||||||||||||||||||
The Company’s 1999 Stock Incentive Plan (the “1999 Stock Incentive Plan”), as successor to the 1997 Stock Option Plan (the “1997 Stock Option Plan”), provided for options to purchase shares of the Company’s common stock to be granted to employees, independent contractors, officers, and directors. The plan expired in July 2009. As a result of the termination of all employees on December 31, 2009, the stock options held by employees were cancelled on March 31, 2010. The only remaining options outstanding as of March 31, 2014, under the 1999 Stock Incentive Plan are those held by some of the Company’s current directors. | ||||||||||||||||||||||||
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 Company’s Board of Directors (the "Board") and have a term not greater than 10 years from the date of grant. | ||||||||||||||||||||||||
The following table summarizes activities under the option plans for the indicated periods: | ||||||||||||||||||||||||
Options Outstanding | ||||||||||||||||||||||||
Number of | Weighted | Weighted | Aggregate | |||||||||||||||||||||
Shares | Average | Average | Intrinsic | |||||||||||||||||||||
Exercise | Remaining Contractual | Value | ||||||||||||||||||||||
Price | Term | |||||||||||||||||||||||
(in years) | ||||||||||||||||||||||||
Balances, December 31, 2013 | 1,680,000 | $ | 1.01 | 7.8 | $ | 458,600 | ||||||||||||||||||
Options cancelled and retired | (10,000 | ) | 2.65 | |||||||||||||||||||||
Options exercised | - | - | ||||||||||||||||||||||
Options granted | - | - | ||||||||||||||||||||||
Balances, March 31, 2014 | 1,670,000 | 1.01 | 7.5 | 337,000 | ||||||||||||||||||||
Options vested and exercisable and expected to be vested and exercisable at March 31, 2014 | 1,518,900 | $ | 1.03 | 7.5 | $ | 301,558 | ||||||||||||||||||
Options vested and exercisable at March 31, 2014 | 170,000 | $ | 2.52 | 6.5 | $ | 89,500 | ||||||||||||||||||
At March 31, 2014, there were no options available for grant under the 1999 Stock Incentive Plan, and the Company had no total unrecognized stock-based compensation expense under this Plan. At March 31, 2014, there were 2.6 million shares reserved for equity awards under the 2010 Stock Incentive Plan and the Company had approximately $0.1 million of total unrecognized stock option expense, net of estimated forfeitures, which will be recognized over the weighted average remaining period of 1.1 years. | ||||||||||||||||||||||||
The following table summarizes significant ranges of outstanding and exercisable options as of March 31, 2014: | ||||||||||||||||||||||||
Options Outstanding, Vested and Exercisable | ||||||||||||||||||||||||
Exercise Prices | Number | Weighted | Weighted | Number | Weighted | |||||||||||||||||||
Outstanding | Average | Average | Exercisable | Average | ||||||||||||||||||||
Remaining | Exercise | Exercise | ||||||||||||||||||||||
Contractual | Price Per | Price Per Share | ||||||||||||||||||||||
Life (in Years) | Share | |||||||||||||||||||||||
$ | 0.7 | 20,000 | 5.3 | $ | 0.7 | 20,000 | $ | 0.7 | ||||||||||||||||
0.83 | 1,500,000 | 8.2 | 0.83 | - | 0.83 | |||||||||||||||||||
1.24 | 20,000 | 4.3 | 1.24 | 20,000 | 1.24 | |||||||||||||||||||
2.67 | 20,000 | 3.3 | 2.67 | 20,000 | 2.67 | |||||||||||||||||||
2.95 | 90,000 | 2.4 | 2.95 | 90,000 | 2.95 | |||||||||||||||||||
3.5 | 20,000 | 2.9 | 3.5 | 20,000 | 3.5 | |||||||||||||||||||
Total | 1,670,000 | 7.5 | $ | 1.01 | 170,000 | $ | 2.52 | |||||||||||||||||
Employee stock-based compensation expense recognized for time-vesting options for the three months ended March 31, 2014, and 2013, uses the Black-Scholes option pricing model for estimating the fair value of options granted under the Company's equity incentive plans. Risk-free interest rates for the options were taken from the Daily Federal Yield Curve Rates on the grant dates for the expected life of the options as published by the Federal Reserve. The expected volatility was based upon historical data and other relevant factors such as the Company's changes in historical volatility and its capital structure, in addition to mean reversion. Employee stock-based compensation expense recognized for market performance-vesting options uses a binomial lattice model for estimating the fair value of options granted under the Company's equity incentive plans. | ||||||||||||||||||||||||
In calculating the expected life of stock options, the Company determines the amount of time from grant date to exercise date for exercised options and adjusts this number for the expected time to exercise for unexercised options. The expected time to exercise for unexercised options is calculated from grant as the midpoint between the expiration date of the option and the later of the measurement date or the vesting date. In developing the expected life assumption, all amounts of time are weighted by the number of underlying options. | ||||||||||||||||||||||||
On January 31, 2012, the Board approved a change in the compensation plan for non-employee directors. In lieu of cash payments historically paid to the Company's directors for Board service, the Board approved an annual grant of 35,000 shares of restricted common stock for each of our non-executive Board members on January 31 of each year, starting with 2012. The restricted shares fully vest on the first anniversary of the grant and are forfeited if the Board member does not complete the full year of service. | ||||||||||||||||||||||||
The following table summarizes restricted stock activities under the equity incentive plans for the indicated periods: | ||||||||||||||||||||||||
Restricted Shares Outstanding | ||||||||||||||||||||||||
Number of Shares | Weighted Average Grant Date Fair Value | |||||||||||||||||||||||
Balances, December 31, 2013 | 1,682,500 | $ | 0.39 | |||||||||||||||||||||
Shares cancelled and forfeited | - | - | ||||||||||||||||||||||
Shares vested | (140,000 | ) | 0.83 | |||||||||||||||||||||
Shares granted | 140,000 | 1.13 | ||||||||||||||||||||||
Balances, March 31, 2014 | 1,682,500 | $ | 0.45 | |||||||||||||||||||||
For restricted stock granted in 2014 and 2013 under the 2010 Stock Incentive Plan, the Company recognizes compensation expense in accordance with the fair value of such stock as determined on the grant date, amortized over the applicable derived service period using the graded amortization method. The fair value and derived service period of awards with market performance vesting was calculated using a lattice model and included adjustments to the fair value of the Company's common stock resulting from the vesting conditions being based on the underlying stock price. All 1,682,500 restricted shares are included in the Company's shares outstanding as of March 31, 2014, but are not included in the computation of basic income per share as the shares are not yet earned by the recipients. The Company had $0.1 million of unrecognized stock based compensation expense, net of estimated forfeitures, related to restricted shares which will be recognized over the weighted average remaining period of 0.8 year. | ||||||||||||||||||||||||
The stock-based compensation expense recognized by the Company for the three months ended March 31, 2014, and 2013 was $76,000 and $60,000, respectively. | ||||||||||||||||||||||||
Non-controlling Interests | ||||||||||||||||||||||||
As discussed in Note 4, SWK HP has a limited partnership interest in Holmdel. The total investment by SWK HP was $13,000,000, of which SWK Holdings GP provided $6,000,000. The remaining $7,000,000 is reflected as non-controlling interest in the unaudited condensed consolidated balance sheets. Changes in the carrying amount of the non-controlling interest in the unaudited condensed consolidated balance sheet for the three months ended March 31, 2014, are as follows: | ||||||||||||||||||||||||
Balance at December 31, 2013 | $ | 5,613 | ||||||||||||||||||||||
Add: Income attributable to non-controlling interests | 801 | |||||||||||||||||||||||
Less: Cash distribution to non-controlling interests | (1,055 | ) | ||||||||||||||||||||||
Balance at March 31, 2014 | $ | 5,359 | ||||||||||||||||||||||
Note_7_Fair_Value_Measurements
Note 7 - Fair Value Measurements | 3 Months Ended | ||||||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||||||||||
Fair Value Disclosures [Text Block] | ' | ||||||||||||||||||||
Note 7. Fair Value Measurements | |||||||||||||||||||||
The Company measures and reports certain financial and non-financial assets and liabilities on a fair value basis. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (exit price). GAAP specifies a three-level hierarchy that is used when measuring and disclosing fair value. The fair value hierarchy gives the highest priority to quoted prices available in active markets (i.e., observable inputs) and the lowest priority to data lacking transparency (i.e., unobservable inputs). An instrument’s categorization within the fair value hierarchy is based on the lowest level of significant input to its valuation. The following is a description of the three hierarchy levels. | |||||||||||||||||||||
Level 1 | Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities. Active markets are considered to be those in which transactions for the assets or liabilities occur in sufficient frequency and volume to provide pricing information on an ongoing basis. | ||||||||||||||||||||
Level 2 | Quoted prices in markets that are not active, or inputs which are observable, either directly or indirectly, for substantially the full term of the asset or liability. This category includes quoted prices for similar assets or liabilities in active markets and quoted prices for identical or similar assets or liabilities in inactive markets. | ||||||||||||||||||||
Level 3 | Unobservable inputs are not corroborated by market data. This category is comprised of financial and non-financial assets and liabilities whose fair value is estimated based on internally developed models or methodologies using significant inputs that are generally less readily observable from objective sources. | ||||||||||||||||||||
Transfers into or out of any hierarchy level are recognized at the end of the reporting period in which the transfers occurred. There were no transfers between any levels during the three months ended March 31, 2014 and 2013. | |||||||||||||||||||||
The fair value of equity method investments is not readily available nor have we estimated the fair value of these investments and disclosure is not required. The Company is not aware of any identified events or changes in circumstances that would have a significant adverse effect on the carrying value of any of our equity method investments included in our unaudited condensed consolidated balance sheets at March 31, 2014 or December 31, 2013. | |||||||||||||||||||||
Following are descriptions of the valuation methodologies used to measure material assets and liabilities at fair value and details of the valuation models, key inputs to those models and significant assumptions utilized. | |||||||||||||||||||||
Finance Receivables | |||||||||||||||||||||
The fair values of finance receivables are estimated using discounted cash flow analyses, using market rates at the balance sheet date that reflect the credit and interest rate-risk inherent in the finance receivables. Projected future cash flows are calculated based upon contractual maturity or call dates, projected repayments and prepayments of principal. These receivables are classified as Level 3. Finance receivables are not measured at fair value on a recurring basis, but estimates of fair value are reflected below. | |||||||||||||||||||||
Marketable Investments and Warrant Liability | |||||||||||||||||||||
Debt securities | |||||||||||||||||||||
If active market prices are available, fair value measurement is based on quoted active market prices and, accordingly, these securities would be classified as Level 1. If active market prices are not available, fair value measurement is based on observable inputs other than quoted prices included within Level 1, such as prices for similar assets or broker quotes utilizing observable inputs, and accordingly these securities would be classified as Level 2. If market prices are not available and there are no observable inputs, then fair value would be estimated by using valuation models including discounted cash flow methodologies, commonly used option-pricing models and broker quotes. Such securities would be classified as Level 3, if the valuation models and broker quotes are based on inputs that are unobservable in the market. If fair value is based on broker quotes, the Company checks the validity of received prices based on comparison to prices of other similar assets and market data such as relevant bench mark indices. | |||||||||||||||||||||
Derivative securities | |||||||||||||||||||||
For exchange-traded derivatives, fair value is based on quoted market prices, and accordingly, would be classified as Level 1. For non-exchange traded derivatives, fair value is based on option pricing models and are classified as Level 3. | |||||||||||||||||||||
The following table presents financial assets and liabilities measured at fair value on a recurring basis as of March 31, 2014 (in thousands): | |||||||||||||||||||||
Total Carrying Value in Consolidated Balance Sheet | Quoted prices | Significant | Significant | ||||||||||||||||||
in active | other | unobservable | |||||||||||||||||||
markets for | observable | inputs | |||||||||||||||||||
identical assets | inputs | (Level 3) | |||||||||||||||||||
or liabilities | (Level 2) | ||||||||||||||||||||
(Level 1) | |||||||||||||||||||||
Financial Assets: | |||||||||||||||||||||
Tribute warrants | $ | 415 | $ | - | $ | - | $ | 415 | |||||||||||||
Available-for-sale securities | 3,119 | - | 3,119 | - | |||||||||||||||||
Financial Liabilities: | |||||||||||||||||||||
Warrant liability | $ | 250 | $ | - | $ | - | $ | 250 | |||||||||||||
The following table presents financial assets and liabilities measured at fair value on a recurring basis as of December 31, 2013 (in thousands): | |||||||||||||||||||||
Total Carrying Value in Consolidated Balance Sheet | Quoted prices | Significant | Significant | ||||||||||||||||||
in active | other | unobservable | |||||||||||||||||||
markets for | observable | inputs | |||||||||||||||||||
identical assets | inputs | (Level 3) | |||||||||||||||||||
or liabilities | (Level 2) | ||||||||||||||||||||
(Level 1) | |||||||||||||||||||||
Financial Assets: | |||||||||||||||||||||
Tribute warrant | $ | 204 | $ | - | $ | - | $ | 204 | |||||||||||||
Available-for-sale securities | 3,119 | - | 3,119 | - | |||||||||||||||||
Financial Liabilities: | |||||||||||||||||||||
Warrant liability | $ | 292 | $ | - | $ | - | $ | 292 | |||||||||||||
The changes on the value of the Tribute warrant asset during the three months ended March 31, 2014, were as follows (in thousands): | |||||||||||||||||||||
Fair value – December 31, 2013 | $ | 204 | |||||||||||||||||||
Issuances | 99 | ||||||||||||||||||||
Change in fair value | 112 | ||||||||||||||||||||
Fair value – March 31, 2014 | $ | 415 | |||||||||||||||||||
The changes on the value of the warrant liability during the three months ended March 31, 2014, were as follows (in thousands): | |||||||||||||||||||||
Fair value – December 31, 2013 | $ | 292 | |||||||||||||||||||
Issuances | - | ||||||||||||||||||||
Change in fair value | (42 | ) | |||||||||||||||||||
Fair value – March 31, 2014 | $ | 250 | |||||||||||||||||||
For assets and liabilities measured on a non-recurring basis during the year, accounting guidance requires quantitative disclosures about the fair value measurements separately for each major category. There were no remeasured assets or liabilities at fair value on a non-recurring basis during the three months ended March 31, 2014 and 2013. | |||||||||||||||||||||
The following information as of March 31, 2014 and December 31, 2013, is provided to help readers gain an understanding of the relationship between amounts reported in the accompanying consolidated financial statements and the related market or fair value. The disclosures include financial instruments and derivative financial instruments, other than investment in affiliates. | |||||||||||||||||||||
31-Mar-14 | Carry | Fair | Level 1 | Level 2 | Level 3 | ||||||||||||||||
Value | Value | ||||||||||||||||||||
Financial Assets | |||||||||||||||||||||
Cash and cash equivalents | $ | 3,867 | $ | 3,867 | $ | 3,867 | $ | - | $ | - | |||||||||||
Finance receivables | 41,665 | 41,675 | - | - | 41,675 | ||||||||||||||||
Marketable investments | 3,119 | 3,119 | - | 3,119 | - | ||||||||||||||||
Other assets | 415 | 415 | - | - | 415 | ||||||||||||||||
Financial Liabilities | |||||||||||||||||||||
Warrant liability | $ | 250 | $ | 250 | $ | - | $ | - | $ | 250 | |||||||||||
31-Dec-13 | Carry | Fair | Level 1 | Level 2 | Level 3 | ||||||||||||||||
Value | Value | ||||||||||||||||||||
Financial Assets | |||||||||||||||||||||
Cash and cash equivalents | $ | 7,664 | $ | 7,664 | $ | 7,664 | $ | - | $ | - | |||||||||||
Finance receivables | 29,286 | 29,324 | - | - | 29,324 | ||||||||||||||||
Marketable investments | 3,119 | 3,119 | - | 3,119 | - | ||||||||||||||||
Other assets | 204 | 204 | - | - | 204 | ||||||||||||||||
Financial Liabilities | |||||||||||||||||||||
Warrant liability | $ | 292 | $ | 292 | $ | - | $ | - | $ | 292 | |||||||||||
Note_8_Income_Taxes
Note 8 - Income Taxes | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||
Income Tax Disclosure [Text Block] | ' | ||||||||
Note 8. Income Taxes | |||||||||
The Company recognizes interest and penalties related to uncertain tax positions as a component of income tax expense. The Company had no unrecognized tax benefits as of March 31, 2014 and December 31, 2013. | |||||||||
As of December 31, 2013, the Company's valuation allowance against deferred tax assets decreased by approximately $20,960,000 due to write off of expired deferred tax assets and partial release of the Company's valuation allowance. | |||||||||
The Company will continue to assess the need for a valuation allowance on the deferred tax assets by evaluating both positive and negative evidence that may exist on a quarterly basis. Any adjustment to the deferred tax asset valuation allowance would be recorded in the unaudited condensed consolidated statement of income for the period that the adjustment is determined to be required. | |||||||||
Deferred tax assets consist of the following (in thousands): | |||||||||
March 31, | December 31, | ||||||||
2014 | 2013 | ||||||||
Deferred tax assets | |||||||||
Credit carryforward | $ | 2,660 | $ | 2,660 | |||||
Stock based compensation | 287 | 287 | |||||||
Other | 59 | 59 | |||||||
Net operating losses | 145,931 | 146,637 | |||||||
Gross deferred tax assets | 148,937 | 149,643 | |||||||
Valuation allowance | (139,840 | ) | (139,840 | ) | |||||
Net deferred tax assets | $ | 9,097 | $ | 9,803 | |||||
The Tax Reform Act of 1986 limits the use of net operating loss and tax credit carryforwards in certain situations where stock ownership changes occur. In the event the Company has had a change in ownership, the future utilization of the Company's net operating loss and tax credit carryforwards could be limited. | |||||||||
A portion of deferred tax assets relating to NOLs, pertains to NOL carryforwards resulting from tax deductions upon the exercise of employee stock options of approximately $1,800,000. When recognized, the tax benefit of these loss carryforwards will be accounted for as a credit to additional paid-in capital rather than a reduction of the income tax expense. | |||||||||
As of March 31, 2014, the Company had net operating loss carryforwards for federal income tax purposes of approximately $433,000,000. The federal net operating loss carryforwards, if not offset against future income, will expire by 2032, with the majority of such NOLs expiring by 2021. |
Accounting_Policies_by_Policy_
Accounting Policies, by Policy (Policies) | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Accounting Policies [Abstract] | ' | ||||||||
Consolidation, Subsidiaries or Other Investments, Consolidated Entities, Policy [Policy Text Block] | ' | ||||||||
Nature of Operations | |||||||||
SWK Holdings Corporation (“SWK” or the “Company”) is engaged in investing in the pharmaceutical and biotechnology royalty securitization market. The Company’s strategy is to provide capital to a broad range of life science companies, institutions and inventors. The Company is currently focused on monetizing cash flow streams derived from commercial-stage products and related intellectual property through royalty purchases and financings, as well as through the creation of synthetic revenue interests in commercialized products. The Company intends to fill a niche that it believes is underserved in the sub-$50 million transaction size. The Company’s goal is to redeploy its existing assets to earn interest, fee, and other income pursuant to this strategy, and the Company continues to identify and review financing and similar opportunities on an ongoing basis. In addition the Company is also engaged in the business of providing investment advisory services to institutional clients. | |||||||||
The Company has net operating loss carryforwards (“NOLs”) and believes that the ability to utilize these NOLs is an important and substantial asset. The Company believes that the foregoing business strategies can create value for its stockholders, and produce prospective taxable income (or the ability to generate capital gains) that might permit the Company to utilize the NOLs. The Company is unable to assure investors that it will find suitable financing opportunities or that it will be able to utilize its existing NOLs. | |||||||||
Consolidation, Policy [Policy Text Block] | ' | ||||||||
Basis of Presentation | |||||||||
The Company’s unaudited condensed consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States (“GAAP”). The unaudited condensed consolidated financial statements include the accounts of all subsidiaries and affiliates in which the Company holds a controlling financial interest as of the financial statement date. Normally a controlling financial interest reflects ownership of a majority of the voting interests. The Company consolidates a variable interest entity (“VIE”) when it possesses both the power to direct the activities of the VIE that most significantly impact its economic performance and the Company is either obligated to absorb the losses that could potentially be significant to the VIE or the Company holds the right to receive benefits from the VIE that could potentially be significant to the VIE, after elimination of intercompany accounts and transactions. | |||||||||
The Company owns interests in various partnerships and limited liability companies, or LLCs. The Company consolidates its investments in these partnerships or LLCs, where the Company, as the general partner or managing member, exercises effective control, even though the Company’s ownership is less than 50%. The related governing agreements provide the Company with broad powers, and the other parties do not participate in the management of the entity and do not have the substantial ability to remove the Company. The Company has reviewed each of the underlying agreements to determine if it has effective control. If circumstances changed and it was determined this control did not exist, this investment would be recorded using the equity method of accounting. Although this would change individual line items within the Company’s condensed consolidated financial statements, it would have no effect on our operations and/or total stockholders’ equity attributable to the Company. The Company operates in one operating segment with a single management team that reports to the chief executive officer, who is the Company’s chief operating decision maker. | |||||||||
Unaudited Interim Financial Information [Policy Text Block] | ' | ||||||||
Unaudited Interim Financial Information | |||||||||
The unaudited condensed consolidated financial statements have been prepared by the Company and reflect all normal, recurring adjustments that, in the opinion of management, are necessary for a fair presentation of the interim financial information. The results of operations for the interim periods presented are not necessarily indicative of the results to be expected for any subsequent quarter or for the year ending December 31, 2014. Certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted under the rules and regulations of the Securities and Exchange Commission (“SEC”). These unaudited condensed consolidated financial statements and notes included herein should be read in conjunction with the audited consolidated financial statements and notes included in the Company's Annual Report on Form 10-K for the year ended December 31, 2013, filed with the SEC on March 31, 2014. The year-end unaudited condensed consolidated balance sheet data was derived from the Company's audited financial statements, but does not include all disclosures required by GAAP. | |||||||||
Consolidation, Variable Interest Entity, Policy [Policy Text Block] | ' | ||||||||
Variable Interest Entities | |||||||||
An entity is referred to as a VIE if it possesses one of the following criteria: (i) it is thinly capitalized, (ii) the residual equity holders do not control the entity, (iii) the equity holders are shielded from the economic losses, (iv) the equity holders do not participate fully in the entity's residual economics, or (v) the entity was established with non-substantive voting interests. The Company consolidates a VIE when it has both the power to direct the activities that most significantly impact the activities of the VIE and the right to receive benefits or the obligation to absorb losses of the entity that could be potentially significant to the VIE. Along with the VIEs that are consolidated in accordance with these guidelines, the Company also holds variable interests in other VIEs that are not consolidated because it is not the primary beneficiary. The Company continually monitors both consolidated and unconsolidated VIEs to determine if any events have occurred that could cause the primary beneficiary to change. See Note 4 for further discussion of VIEs. | |||||||||
Use of Estimates, Policy [Policy Text Block] | ' | ||||||||
Use of Estimates | |||||||||
The preparation of the Company’s unaudited condensed consolidated financial statements in conformity with GAAP requires the Company to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the unaudited condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Significant estimates and assumptions are required in the determination of revenue recognition, stock-based compensation, impairment of financing receivables and long-lived assets, valuation of warrants, useful lives of property and equipment, income taxes and contingencies and litigation, among others. Some of these judgments can be subjective and complex, and, consequently, actual results may differ from these estimates. The Company estimates often are based on complex judgments, probabilities and assumptions that it believes to be reasonable but that are inherently uncertain and unpredictable. For any given individual estimate or assumption made by the Company, there may also be other estimates or assumptions that are reasonable. | |||||||||
The Company regularly evaluates its estimates and assumptions using historical experience and other factors, including the economic environment. As future events and their effects cannot be determined with precision, the Company’s estimates and assumptions may prove to be incomplete or inaccurate, or unanticipated events and circumstances may occur that might cause us to change those estimates and assumptions. Market conditions, such as illiquid credit markets, volatile equity markets, and economic downturn, can increase the uncertainty already inherent in the Company’s estimates and assumptions. The Company adjusts its estimates and assumptions when facts and circumstances indicate the need for change. Those changes generally will be reflected in our condensed consolidated financial statements on a prospective basis unless they are required to be treated retrospectively under the relevant accounting standard. It is possible that other professionals, applying reasonable judgment to the same facts and circumstances, could develop and support a range of alternative estimated amounts. | |||||||||
Equity Method Investments, Policy [Policy Text Block] | ' | ||||||||
Equity Method Investments | |||||||||
The Company accounts for portfolio companies whose results are not consolidated, but over which it exercises significant influence, under the equity method of accounting. Whether or not the Company exercises significant influence with respect to a portfolio company depends on an evaluation of several factors including, among others, representation of the Company on the portfolio company’s board of directors and the Company’s ownership level. Under the equity method of accounting, the Company does not reflect a portfolio company’s financial statements within the company’s unaudited consolidated financial statements; however, the Company’s share of the income or loss of such portfolio company is reflected in income in the unaudited condensed consolidated statements of income. The Company includes the carrying value of equity method portfolio companies as part of the investment in unconsolidated entities on the unaudited condensed consolidated balance sheets. | |||||||||
When the Company’s carrying value in an equity method portfolio company is reduced to zero, the Company records no further losses in its unaudited condensed consolidated statements of income unless the Company has an outstanding guarantee obligation or has committed additional funding to such equity method portfolio company. When such equity method portfolio company subsequently reports income, the Company will not record its share of such income until it exceeds the amount of the Company’s share of losses not previously recognized. | |||||||||
Finance, Loans and Leases Receivable, Policy [Policy Text Block] | ' | ||||||||
Finance Receivables | |||||||||
The Company extends credit to customers through a variety of financing arrangements, including revenue interest term loans. The amounts outstanding on loans are referred to as finance receivables and are included in Finance Receivables on the unaudited condensed consolidated balance sheets. It is the Company’s expectation that the loans originated will be held for the foreseeable future or until maturity. In certain situations, for example to manage concentrations and/or credit risk, some or all of certain exposures may be sold. Loans for which the Company has the intent and ability to hold for the foreseeable future or until maturity are classified as held for investment (“HFI”). If the Company no longer has the intent or ability to hold loans for the foreseeable future, then the loans are transferred to held for sale (“HFS”). Loans entered into with the intent to resell are classified as HFS. | |||||||||
If it is determined that a loan should be transferred from HFI to HFS, then the balance is transferred at the lower of cost or fair value. At the time of transfer, a write-down of the loan is recorded as a write-off when the carrying amount exceeds fair value and the difference relates to credit quality, otherwise the write-down is recorded as a reduction in interest and other Income, and any loan loss reserve is reversed. Once classified as HFS, the amount by which the carrying value exceeds fair value is recorded as a valuation allowance and is reflected as a reduction to interest and other income. | |||||||||
If it is determined that a loan should be transferred from HFS to HFI, the loan is transferred at the lower of cost or fair value on the transfer date, which coincides with the date of change in management’s intent. The difference between the carrying value of the loan and the fair value, if lower, is reflected as a loan discount at the transfer date, which reduces its carrying value. Subsequent to the transfer, the discount is accreted into earnings as an increase to finance revenue over the life of the loan using the effective interest method. | |||||||||
Finance receivables are stated at their principal amounts inclusive of deferred loan origination fees. Interest income is credited as earned based on the effective interest rate method except when a finance receivable becomes past due 90 days or more and doubt exists as to the ultimate collection of interest or principal; in those cases the recognition of income is discontinued. | |||||||||
Marketable Securities, Policy [Policy Text Block] | ' | ||||||||
Marketable Investments | |||||||||
Available-for-sale securities are reported at fair value with unrealized gains or losses recorded in accumulated other comprehensive income, net of applicable income taxes. The available-for-sale portfolio as of March 31, 2014 and December 31, 2013 includes one debt security. In any case where fair value might fall below amortized cost, the Company would consider whether that security is other-than-temporarily impaired using all available information about the collectability of the security. The Company would not consider that an other-than temporary impairment for a debt security has occurred if (1) the Company does not intend to sell the debt security, (2) it is not more likely than not that the Company will be required to sell the debt security before recovery of its amortized cost basis and (3) the present value of estimated cash flows will fully cover the amortized cost of the security. The Company would consider that an other-than-temporary impairment has occurred if any of the above mentioned three conditions are not met. | |||||||||
For a debt security for which an other-than-temporary impairment is considered to have occurred, the Company would recognize the entire difference between the amortized cost and the fair value in earnings if the Company intends to sell the debt security or it is more likely than not that the Company will be able to sell the debt security before recovery of its amortized cost basis. If the Company does not intend to sell the debt security and it is not more likely than not that the Company will be required to sell the debt security before recovery of its amortized cost basis, the Company would separate the difference between the amortized cost and the fair value of the debt security into the credit loss component and the non-credit loss component. The credit loss component would be recognized in earnings and the non-credit loss component would be recognized in other comprehensive income, net of applicable income taxes. | |||||||||
Derivatives, Policy [Policy Text Block] | ' | ||||||||
Derivatives | |||||||||
All derivatives held by the Company are recognized in the unaudited condensed consolidated balance sheets at fair value. The accounting treatment for subsequent changes in the fair value depends on their use, and whether they qualify as effective “hedges” for accounting purposes. Derivatives that are not hedges must be adjusted to fair value through the unaudited condensed consolidated statements of income. If a derivative is a hedge, then depending on its nature, changes in its fair value will be either offset against change in the fair value of hedged assets or liabilities through the unaudited condensed consolidated statements of income, or recorded in other comprehensive income. The Company had no derivatives designated as hedges as of March 31, 2014 and December 31, 2013. The Company holds three warrants issued to the Company in conjunction with the term loan investments discussed in Note 2. These warrants are included in other assets in the unaudited condensed consolidated balance sheets. The Company issued a warrant on its own common stock in the year ended December 31, 2013, in conjunction with its credit facility discussed in Note 5. This warrant meets the definition of a derivative and is reflected as warrant liability at fair value in the unaudited condensed consolidated balance sheets as of March 31, 2014 and December 31, 2013. | |||||||||
Revenue Recognition, Policy [Policy Text Block] | ' | ||||||||
Revenue Recognition | |||||||||
The Company records interest income on an accrual basis based on the effective interest rate method to the extent that it expects to collect such amounts. The Company recognizes investment management fees as earned over the period the services are rendered. In general, the majority of investment management fees earned are charged either monthly or quarterly. Incentive fees, if any, are recognized when earned at the end of the relevant performance period, pursuant to the underlying contract. Other administrative service revenues are recognized when contractual obligations are fulfilled or as services are provided. | |||||||||
Concentration Risk, Credit Risk, Policy [Policy Text Block] | ' | ||||||||
Certain Risks and Concentrations | |||||||||
Financial instruments that potentially subject the Company to significant concentrations of credit risk consist primarily of cash and cash equivalents, accounts receivable, finance receivables and marketable investments. The Company invests its excess cash with major U.S. banks and financial institutions. The Company has not experienced any losses on its cash and cash equivalents. | |||||||||
The Company performs ongoing credit evaluations of its customers and generally requires collateral. For the three months ended March 31, 2014, three partner companies accounted for 73 percent of total revenue. For the three months ended March 31, 2013, one partner company accounted for 87 percent of total revenue. | |||||||||
The Company does not expect its current or future credit risk exposures to have a significant impact on its operations. However, there can be no assurance that its business will not experience any adverse impact from credit risk in the future. | |||||||||
Earnings Per Share, Policy [Policy Text Block] | ' | ||||||||
Net Income per Share | |||||||||
Basic 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): | |||||||||
Three Months Ended | |||||||||
31-Mar-14 | 31-Mar-13 | ||||||||
Numerator: | |||||||||
Net income attributable to SWK Holdings Corporation Shareholders | $ | 1,457 | $ | 60 | |||||
Denominator: | |||||||||
Weighted-average shares outstanding | 41,462 | 41,316 | |||||||
Effect of dilutive securities | 68 | 80 | |||||||
Weighted-average diluted shares | 41,530 | 41,396 | |||||||
Basic earnings per share | $ | 0.04 | $ | 0 | |||||
Diluted earnings per share | $ | 0.04 | $ | 0 | |||||
For the three month period ended March 31, 2014 and 2013, outstanding stock options and warrants to purchase shares of common stock in an aggregate of approximately 4,175,000 and 3,205,000 shares, respectively, have been excluded from the calculation of diluted net income per share as all such securities were anti-dilutive. | |||||||||
Reclassification, Policy [Policy Text Block] | ' | ||||||||
Reclassifications | |||||||||
Certain prior period amounts in the unaudited condensed consolidated financial statements have been reclassified to conform to the current period’s presentation. | |||||||||
New Accounting Pronouncements, Policy [Policy Text Block] | ' | ||||||||
Recent Accounting Pronouncements | |||||||||
In July 2013, the FASB issued ASU 2013-11, Income Taxes (Topic 740): Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists. Under this new guidance, companies must present this unrecognized tax benefit in the consolidated financial statements as a reduction to deferred tax assets created by net operating losses or other tax credits from prior periods that occur in the same taxing jurisdiction. If the unrecognized tax benefit exceeds such credits it should be presented in the consolidated financial statements as a liability. This update is effective for annual and interim reporting periods for fiscal years beginning after December 15, 2013. The adoption of this standard did not have any impact on the Company’s operating results and financial position. |
Note_1_SWK_Holdings_Corporatio1
Note 1 - SWK Holdings Corporation and Summary of Significant Accounting Policies (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Accounting Policies [Abstract] | ' | ||||||||
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | ' | ||||||||
Three Months Ended | |||||||||
31-Mar-14 | 31-Mar-13 | ||||||||
Numerator: | |||||||||
Net income attributable to SWK Holdings Corporation Shareholders | $ | 1,457 | $ | 60 | |||||
Denominator: | |||||||||
Weighted-average shares outstanding | 41,462 | 41,316 | |||||||
Effect of dilutive securities | 68 | 80 | |||||||
Weighted-average diluted shares | 41,530 | 41,396 | |||||||
Basic earnings per share | $ | 0.04 | $ | 0 | |||||
Diluted earnings per share | $ | 0.04 | $ | 0 |
Note_2_Finance_Receivables_Tab
Note 2 - Finance Receivables (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Receivables [Abstract] | ' | ||||||||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block] | ' | ||||||||
31-Mar-14 | 31-Dec-13 | ||||||||
Portfolio | |||||||||
Term Loans | $ | 33,794 | $ | 21,420 | |||||
Royalty Purchases | 7,871 | 7,866 | |||||||
Total | 41,665 | 29,286 | |||||||
Less: current portion | (957 | ) | (660 | ) | |||||
Total noncurrent portion of finance receivables | 40,708 | $ | 28,626 | ||||||
Fair Value Measurements, Significant Assumptions | ' | ||||||||
31-Mar-14 | 31-Dec-13 | ||||||||
Dividend rate | 0 | % | 0 | % | |||||
Risk-free rate | 2.3 | % | 2.5 | % | |||||
Expected life (years) | 6.4 | 6.6 | |||||||
Expected volatility | 99 | % | 97 | % |
Note_3_Marketable_Investments_
Note 3 - Marketable Investments (Tables) | 3 Months Ended | ||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | ' | ||||||||||||||||
Schedule of Available-for-sale Securities Reconciliation [Table Text Block] | ' | ||||||||||||||||
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Loss | Fair Value | ||||||||||||||
Available for Sale Securities: | |||||||||||||||||
Corporate debt securities | $ | 3,119 | $ | - | $ | - | $ | 3,119 | |||||||||
$ | 3,119 | $ | - | $ | - | $ | 3,119 |
Note_4_Variable_Interest_Entit1
Note 4 - Variable Interest Entities (Tables) | 3 Months Ended | |||||||||
Mar. 31, 2014 | ||||||||||
Variable Interest Entities [Abstract] | ' | |||||||||
Investment [Table Text Block] | ' | |||||||||
Balance at December 31, 2013 | $ | 10,425 | ||||||||
Add: Income from investments in unconsolidated entities | 1,503 | |||||||||
Less: Cash distribution on investments in unconsolidated entities | (1,976 | ) | ||||||||
Balance at March 31, 2014 | $ | 9,952 | ||||||||
Equity Method Investments [Table Text Block] | ' | |||||||||
As of March 31, | Three months ended | |||||||||
2014 | 31-Mar-14 | |||||||||
(in millions) | (in millions) | |||||||||
Assets | $ | 13.7 | Revenue | $ | 2.4 | |||||
Liabilities | $ | 2.3 | Expenses | $ | 0.6 | |||||
Equity | $ | 11.4 | Net income | $ | 1.8 |
Note_5_Loan_Credit_Agreement_w1
Note 5 - Loan Credit Agreement with Related Party (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Debt Disclosure [Abstract] | ' | ||||||||
Schedule of Assumptions Used [Table Text Block] | ' | ||||||||
31-Mar-14 | 31-Dec-13 | ||||||||
Dividend rate | 0 | % | 0 | % | |||||
Risk-free rate | 2.3 | % | 2.5 | % | |||||
Expected life (years) | 6.4 | 6.7 | |||||||
Expected volatility | 28.6 | % | 27 | % |
Note_6_Stockholders_Equity_Tab
Note 6 - Stockholders' Equity (Tables) | 3 Months Ended | |||||||||||||||||||||||
Mar. 31, 2014 | ||||||||||||||||||||||||
Stockholders' Equity Note [Abstract] | ' | |||||||||||||||||||||||
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block] | ' | |||||||||||||||||||||||
Options Outstanding | ||||||||||||||||||||||||
Number of | Weighted | Weighted | Aggregate | |||||||||||||||||||||
Shares | Average | Average | Intrinsic | |||||||||||||||||||||
Exercise | Remaining Contractual | Value | ||||||||||||||||||||||
Price | Term | |||||||||||||||||||||||
(in years) | ||||||||||||||||||||||||
Balances, December 31, 2013 | 1,680,000 | $ | 1.01 | 7.8 | $ | 458,600 | ||||||||||||||||||
Options cancelled and retired | (10,000 | ) | 2.65 | |||||||||||||||||||||
Options exercised | - | - | ||||||||||||||||||||||
Options granted | - | - | ||||||||||||||||||||||
Balances, March 31, 2014 | 1,670,000 | 1.01 | 7.5 | 337,000 | ||||||||||||||||||||
Options vested and exercisable and expected to be vested and exercisable at March 31, 2014 | 1,518,900 | $ | 1.03 | 7.5 | $ | 301,558 | ||||||||||||||||||
Options vested and exercisable at March 31, 2014 | 170,000 | $ | 2.52 | 6.5 | $ | 89,500 | ||||||||||||||||||
Schedule of Share-based Compensation, Shares Authorized under Stock Option Plans, by Exercise Price Range [Table Text Block] | ' | |||||||||||||||||||||||
Options Outstanding, Vested and Exercisable | ||||||||||||||||||||||||
Exercise Prices | Number | Weighted | Weighted | Number | Weighted | |||||||||||||||||||
Outstanding | Average | Average | Exercisable | Average | ||||||||||||||||||||
Remaining | Exercise | Exercise | ||||||||||||||||||||||
Contractual | Price Per | Price Per Share | ||||||||||||||||||||||
Life (in Years) | Share | |||||||||||||||||||||||
$ | 0.7 | 20,000 | 5.3 | $ | 0.7 | 20,000 | $ | 0.7 | ||||||||||||||||
0.83 | 1,500,000 | 8.2 | 0.83 | - | 0.83 | |||||||||||||||||||
1.24 | 20,000 | 4.3 | 1.24 | 20,000 | 1.24 | |||||||||||||||||||
2.67 | 20,000 | 3.3 | 2.67 | 20,000 | 2.67 | |||||||||||||||||||
2.95 | 90,000 | 2.4 | 2.95 | 90,000 | 2.95 | |||||||||||||||||||
3.5 | 20,000 | 2.9 | 3.5 | 20,000 | 3.5 | |||||||||||||||||||
Total | 1,670,000 | 7.5 | $ | 1.01 | 170,000 | $ | 2.52 | |||||||||||||||||
Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity [Table Text Block] | ' | |||||||||||||||||||||||
Restricted Shares Outstanding | ||||||||||||||||||||||||
Number of Shares | Weighted Average Grant Date Fair Value | |||||||||||||||||||||||
Balances, December 31, 2013 | 1,682,500 | $ | 0.39 | |||||||||||||||||||||
Shares cancelled and forfeited | - | - | ||||||||||||||||||||||
Shares vested | (140,000 | ) | 0.83 | |||||||||||||||||||||
Shares granted | 140,000 | 1.13 | ||||||||||||||||||||||
Balances, March 31, 2014 | 1,682,500 | $ | 0.45 | |||||||||||||||||||||
Change in Non Controlling Interest Carrying Amount [Table Text Block] | ' | |||||||||||||||||||||||
Balance at December 31, 2013 | $ | 5,613 | ||||||||||||||||||||||
Add: Income attributable to non-controlling interests | 801 | |||||||||||||||||||||||
Less: Cash distribution to non-controlling interests | (1,055 | ) | ||||||||||||||||||||||
Balance at March 31, 2014 | $ | 5,359 |
Note_7_Fair_Value_Measurements1
Note 7 - Fair Value Measurements (Tables) | 3 Months Ended | ||||||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||||||||||
Fair Value, Assets Measured on Recurring Basis [Table Text Block] | ' | ||||||||||||||||||||
Total Carrying Value in Consolidated Balance Sheet | Quoted prices | Significant | Significant | ||||||||||||||||||
in active | other | unobservable | |||||||||||||||||||
markets for | observable | inputs | |||||||||||||||||||
identical assets | inputs | (Level 3) | |||||||||||||||||||
or liabilities | (Level 2) | ||||||||||||||||||||
(Level 1) | |||||||||||||||||||||
Financial Assets: | |||||||||||||||||||||
Tribute warrants | $ | 415 | $ | - | $ | - | $ | 415 | |||||||||||||
Available-for-sale securities | 3,119 | - | 3,119 | - | |||||||||||||||||
Financial Liabilities: | |||||||||||||||||||||
Warrant liability | $ | 250 | $ | - | $ | - | $ | 250 | |||||||||||||
Total Carrying Value in Consolidated Balance Sheet | Quoted prices | Significant | Significant | ||||||||||||||||||
in active | other | unobservable | |||||||||||||||||||
markets for | observable | inputs | |||||||||||||||||||
identical assets | inputs | (Level 3) | |||||||||||||||||||
or liabilities | (Level 2) | ||||||||||||||||||||
(Level 1) | |||||||||||||||||||||
Financial Assets: | |||||||||||||||||||||
Tribute warrant | $ | 204 | $ | - | $ | - | $ | 204 | |||||||||||||
Available-for-sale securities | 3,119 | - | 3,119 | - | |||||||||||||||||
Financial Liabilities: | |||||||||||||||||||||
Warrant liability | $ | 292 | $ | - | $ | - | $ | 292 | |||||||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Table Text Block] | ' | ||||||||||||||||||||
Fair value – December 31, 2013 | $ | 204 | |||||||||||||||||||
Issuances | 99 | ||||||||||||||||||||
Change in fair value | 112 | ||||||||||||||||||||
Fair value – March 31, 2014 | $ | 415 | |||||||||||||||||||
Fair value – December 31, 2013 | $ | 292 | |||||||||||||||||||
Issuances | - | ||||||||||||||||||||
Change in fair value | (42 | ) | |||||||||||||||||||
Fair value – March 31, 2014 | $ | 250 | |||||||||||||||||||
Fair Value, by Balance Sheet Grouping [Table Text Block] | ' | ||||||||||||||||||||
31-Mar-14 | Carry | Fair | Level 1 | Level 2 | Level 3 | ||||||||||||||||
Value | Value | ||||||||||||||||||||
Financial Assets | |||||||||||||||||||||
Cash and cash equivalents | $ | 3,867 | $ | 3,867 | $ | 3,867 | $ | - | $ | - | |||||||||||
Finance receivables | 41,665 | 41,675 | - | - | 41,675 | ||||||||||||||||
Marketable investments | 3,119 | 3,119 | - | 3,119 | - | ||||||||||||||||
Other assets | 415 | 415 | - | - | 415 | ||||||||||||||||
Financial Liabilities | |||||||||||||||||||||
Warrant liability | $ | 250 | $ | 250 | $ | - | $ | - | $ | 250 | |||||||||||
31-Dec-13 | Carry | Fair | Level 1 | Level 2 | Level 3 | ||||||||||||||||
Value | Value | ||||||||||||||||||||
Financial Assets | |||||||||||||||||||||
Cash and cash equivalents | $ | 7,664 | $ | 7,664 | $ | 7,664 | $ | - | $ | - | |||||||||||
Finance receivables | 29,286 | 29,324 | - | - | 29,324 | ||||||||||||||||
Marketable investments | 3,119 | 3,119 | - | 3,119 | - | ||||||||||||||||
Other assets | 204 | 204 | - | - | 204 | ||||||||||||||||
Financial Liabilities | |||||||||||||||||||||
Warrant liability | $ | 292 | $ | 292 | $ | - | $ | - | $ | 292 |
Note_8_Income_Taxes_Tables
Note 8 - Income Taxes (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | ' | ||||||||
March 31, | December 31, | ||||||||
2014 | 2013 | ||||||||
Deferred tax assets | |||||||||
Credit carryforward | $ | 2,660 | $ | 2,660 | |||||
Stock based compensation | 287 | 287 | |||||||
Other | 59 | 59 | |||||||
Net operating losses | 145,931 | 146,637 | |||||||
Gross deferred tax assets | 148,937 | 149,643 | |||||||
Valuation allowance | (139,840 | ) | (139,840 | ) | |||||
Net deferred tax assets | $ | 9,097 | $ | 9,803 |
Supplemental_Cash_Flow_Informa1
Supplemental Cash Flow Information (Details) (USD $) | Mar. 31, 2014 |
Supplemental Cash Flow Information (Details) [Line Items] | ' |
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | 347,222 |
Class of Warrant or Right, Exercise Price of Warrants or Rights | 0.43 |
Warrant [Member] | ' |
Supplemental Cash Flow Information (Details) [Line Items] | ' |
Derivative Asset, Noncurrent | $99,000 |
Note_1_SWK_Holdings_Corporatio2
Note 1 - SWK Holdings Corporation and Summary of Significant Accounting Policies (Details) | 3 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Note 1 - SWK Holdings Corporation and Summary of Significant Accounting Policies (Details) [Line Items] | ' | ' |
Number of Operating Segments | 1 | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount (in Shares) | 4,175,000 | 3,205,000 |
Customer Concentration Risk [Member] | Sales [Member] | ' | ' |
Note 1 - SWK Holdings Corporation and Summary of Significant Accounting Policies (Details) [Line Items] | ' | ' |
Number of Major Customers | 3 | 1 |
Concentration Risk, Percentage | 73.00% | 87.00% |
Note_1_SWK_Holdings_Corporatio3
Note 1 - SWK Holdings Corporation and Summary of Significant Accounting Policies (Details) - Computation of Basic and Diluted Income (Loss) Per Share (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Numerator: | ' | ' |
Net income attributable to SWK Holdings Corporation Shareholders (in Dollars) | $1,457 | $60 |
Denominator: | ' | ' |
Weighted-average shares outstanding | 41,462 | 41,316 |
Effect of dilutive securities | 68 | 80 |
Weighted-average diluted shares | 41,530 | 41,396 |
Basic earnings per share (in Dollars per share) | $0.04 | $0 |
Diluted earnings per share (in Dollars per share) | $0.04 | $0 |
Note_2_Finance_Receivables_Det
Note 2 - Finance Receivables (Details) (USD $) | 3 Months Ended | 3 Months Ended | 0 Months Ended | 3 Months Ended | 0 Months Ended | 3 Months Ended | 0 Months Ended | 3 Months Ended | |||||||||||||||||||||
Mar. 31, 2014 | Jan. 23, 2014 | Dec. 31, 2013 | Dec. 05, 2012 | Mar. 31, 2014 | Dec. 13, 2013 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Aug. 08, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Feb. 04, 2014 | Aug. 08, 2013 | Aug. 08, 2013 | Dec. 13, 2013 | Dec. 10, 2013 | Apr. 02, 2013 | Mar. 31, 2014 | Jun. 12, 2013 | Mar. 31, 2014 | Mar. 31, 2014 | Jan. 23, 2014 | Dec. 05, 2012 | Dec. 05, 2012 | Jan. 23, 2014 | |
Second Lien Loan [Member] | Second Lien Loan [Member] | Revenue [Member] | Revenue [Member] | Revenue [Member] | Revenue [Member] | Revenue [Member] | Marketable Securities [Member] | Marketable Securities [Member] | Marketable Securities [Member] | Marketable Securities [Member] | Tribute Term Loan [Member] | Tribute Term Loan [Member] | Tribute Term Loan [Member] | SynCardia Systems [Member] | Dental Products Company [Member] | Besivance [Member] | Besivance [Member] | TRT [Member] | TRT [Member] | SWK Funding LLC [Member] | SWK Funding LLC [Member] | SWK Funding LLC [Member] | A Client of SWK Advisors [Member] | Clients of SWK Holdings [Member] | |||||
Revenue [Member] | SynCardia Systems [Member] | Nautilus Neurosciences, Inc. [Member] | Tribute Term Loan [Member] | SynCardia Systems [Member] | Dental Products Company [Member] | Parnell Pharmaceuticals Holdings Pty Ltd [Member] | Tribute Term Loan [Member] | Tribute Term Loan [Member] | Dental Products Company [Member] | Dental Products Company [Member] | Minimum [Member] | ||||||||||||||||||
SynCardia Systems [Member] | |||||||||||||||||||||||||||||
Note 2 - Finance Receivables (Details) [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt Instrument, Face Amount | ' | $25,000,000 | ' | $22,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $6,500,000 | $10,000,000 | $19,000,000 | $3,500,000 | $15,000,000 |
Loan Commitment Assigned by Wholly-Owned Subsidiary of the Company | 12,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest Income, Other | ' | ' | ' | ' | 408,000 | ' | 374,000 | 276,000 | 164,000 | 221,000 | 290,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 260,000 | ' | 91,000 | ' | ' | ' | ' | ' |
Financing Receivable, Net | 41,665,000 | ' | 29,286,000 | ' | ' | 6,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 8,000,000 | ' | 16,000,000 | 6,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Payments to Acquire Notes Receivable | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,000,000 | 6,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Receivable with Imputed Interest, Effective Yield (Interest Rate) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 13.50% | 13.50% | 14.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Class of Warrant or Right, Outstanding (in Shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 347,222 | 755,794 | ' | ' | 225 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Class of Warrant or Right, Exercise Price of Warrants or Rights (in Dollars per Item) | 0.43 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.432 | 0.6 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Warrants and Rights Outstanding | 250,000 | ' | 292,000 | ' | ' | ' | ' | ' | ' | ' | ' | 415,000 | 334,000 | 0 | 0 | 99,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fair Value Adjustment of Warrants | -42,000 | ' | ' | ' | ' | ' | ' | 112,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Payments to Acquire Finance Receivables | 11,975,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Finance Receivable, Maximum Facility Agreement Capacity | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 22,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Advances to Affiliates, Maximum Rights, Capacity | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Receivable with Imputed Interest, Discount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 60,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Payments for Fees | ' | ' | ' | ' | ' | 90,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 40,000 | 60,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Financing Receivable, Gross | ' | ' | ' | ' | ' | 10,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Investment Owned, Balance, Shares (in Shares) | ' | ' | ' | ' | ' | 40,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Investment Owned, Percent of Net Assets | ' | ' | ' | ' | ' | 0.05% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Syndication Fee | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 375,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total Cost of Royalty Stream | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 15,000,000 | ' | 2,000,000 | ' | ' | ' | ' | ' | ' |
Company Funded Royalty Stream | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6,000,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Royalty Stream, Percentage | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 40.31% | ' | ' | ' | ' | ' | ' | ' | ' |
Royalty Stream Contingent Consideration, Paid By Third Party | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,000,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Royalty Stream Contingent Consideration, Liability | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $1,250,000 | ' | ' | ' | ' | ' | ' |
Note_2_Finance_Receivables_Det1
Note 2 - Finance Receivables (Details) - The Carrying Value of Finance Receviables (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Portfolio | ' | ' |
Notes Receivable, Net | $41,665 | $29,286 |
Less: current portion | -957 | -660 |
Total noncurrent portion of finance receivables | 40,708 | 28,626 |
Life Science Term Loans [Member] | ' | ' |
Portfolio | ' | ' |
Notes Receivable, Net | 33,794 | 21,420 |
Life Science Royalty Purchases [Member] | ' | ' |
Portfolio | ' | ' |
Notes Receivable, Net | $7,871 | $7,866 |
Note_2_Finance_Receivables_Det2
Note 2 - Finance Receivables (Details) - Fair Value Assumptions (Tribute Term Loan [Member]) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2014 | Dec. 31, 2013 | |
Tribute Term Loan [Member] | ' | ' |
Note 2 - Finance Receivables (Details) - Fair Value Assumptions [Line Items] | ' | ' |
Dividend rate | 0.00% | 0.00% |
Risk-free rate | 2.30% | 2.50% |
Expected life (years) | '6 years 146 days | '6 years 219 days |
Expected volatility | 99.00% | 97.00% |
Note_3_Marketable_Investments_1
Note 3 - Marketable Investments (Details) (USD $) | 3 Months Ended | 12 Months Ended | 3 Months Ended | 0 Months Ended | ||
Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Jul. 09, 2013 | Nov. 15, 2013 | Jul. 09, 2013 | |
Revenue [Member] | Agreement to Purchase Senior Secured Notes [Member] | Agreement to Purchase Senior Secured Notes [Member] | Agreement to Purchase Senior Secured Notes [Member] | |||
Agreement to Purchase Senior Secured Notes [Member] | Tribute [Member] | |||||
Note 3 - Marketable Investments (Details) [Line Items] | ' | ' | ' | ' | ' | ' |
Senior Notes | ' | ' | ' | $100,000,000 | ' | $3,000,000 |
Receivable with Imputed Interest, Effective Yield (Interest Rate) | ' | ' | ' | ' | ' | 11.50% |
Paid-in-Kind Interest | ' | ' | ' | ' | 119,000 | ' |
Cash Interest Reserve Created at Close | ' | ' | ' | ' | ' | 4,500,000 |
Investment Income, Interest | 91,000 | ' | 91,000 | ' | ' | ' |
Proceeds from Sale of Available-for-sale Securities | 0 | 0 | ' | ' | ' | ' |
Other than Temporary Impairment Losses, Investments, Available-for-sale Securities | $0 | $0 | ' | ' | ' | ' |
Note_3_Marketable_Investments_2
Note 3 - Marketable Investments (Details) - Investment Holdings Reconciliation (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Dec. 31, 2013 |
Investment Holdings Reconciliation [Abstract] | ' | ' |
Amortized Cost | $3,119 | ' |
Gross Unrealized Gains | 0 | ' |
Gross Unrealized Loss | 0 | ' |
Fair Value | $3,119 | $3,119 |
Note_4_Variable_Interest_Entit2
Note 4 - Variable Interest Entities (Details) (USD $) | 3 Months Ended | 3 Months Ended | 1 Months Ended | ||||
Mar. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Mar. 31, 2014 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | |
SWK HP Holdings [Member] | Holmdel Pharmaceuticals LP [Member] | SWK HP Holdings GP [Member] | Minimum Interest [Member] | ||||
Note 4 - Variable Interest Entities (Details) [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Payments to Acquire Intangible Assets | ' | ' | ' | ' | $13,000,000 | ' | ' |
Investments in and Advance to Affiliates, Subsidiaries, Associates, and Joint Ventures | ' | ' | ' | ' | ' | 6,000,000 | ' |
Stockholders' Equity Attributable to Noncontrolling Interest | 5,359,000 | 5,613,000 | 7,000,000 | ' | ' | ' | ' |
Percent of Pharmaceutical Product's Cash Flow to be Received by the Limited Partnership | ' | ' | 84.00% | ' | ' | ' | 39.00% |
Noncontrolling Interest, Ownership Percentage by Parent | ' | ' | ' | ' | 84.00% | ' | ' |
Income (Loss) from Equity Method Investments | 1,503,000 | ' | ' | 801,000 | ' | ' | ' |
Proceeds from Equity Method Investment, Dividends or Distributions | 1,976,000 | ' | ' | 1,976,000 | ' | ' | ' |
Payments to Noncontrolling Interests | $1,055,000 | ' | ' | $1,055,000 | ' | ' | ' |
Note_4_Variable_Interest_Entit3
Note 4 - Variable Interest Entities (Details) - Change in Investment Carrying Amount - Holmdel (USD $) | 3 Months Ended |
Mar. 31, 2014 | |
Change in Investment Carrying Amount - Holmdel [Abstract] | ' |
Balance | $10,425,000 |
Add: Income from investments in unconsolidated entities | 1,503,000 |
Less: Cash distribution on investments in unconsolidated entities | -1,976,000 |
Balance | $9,952,000 |
Note_4_Variable_Interest_Entit4
Note 4 - Variable Interest Entities (Details) - Financial Statement Information - Holmdel (USD $) | 3 Months Ended |
In Millions, unless otherwise specified | Mar. 31, 2014 |
Financial Statement Information - Holmdel [Abstract] | ' |
Assets | $13.70 |
Assets | 2.4 |
Liabilities | 2.3 |
Liabilities | 0.6 |
Equity | 11.4 |
Equity | $1.80 |
Note_5_Loan_Credit_Agreement_w2
Note 5 - Loan Credit Agreement with Related Party (Details) (USD $) | 3 Months Ended | 3 Months Ended | 0 Months Ended | 3 Months Ended | ||||||||
Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Dec. 09, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | |
Amount Available at Closing [Member] | Amount Available After Realizing Net Proceeds of at Least $10 Million [Member] | Threshold for Loan Increase [Member] | Warrant [Member] | Loan Credit Agreement [Member] | Loan Credit Agreement [Member] | Loan Credit Agreement [Member] | Due to Lender [Member] | Delayed Draw [Member] | Delayed Draw [Member] | |||
Delayed Draw [Member] | Delayed Draw [Member] | Delayed Draw [Member] | Other Income [Member] | Delayed Draw [Member] | Delayed Draw [Member] | Delayed Draw [Member] | Delayed Draw [Member] | |||||
Note 5 - Loan Credit Agreement with Related Party (Details) [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt Instrument, Basis Spread on Variable Rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6.50% | ' |
Debt Instrument, Interest Rate at Period End | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6.73% | 6.75% |
Debt Instrument, Term | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '18 months | ' |
Line of Credit Facility, Maximum Borrowing Capacity | ' | ' | $15,000,000 | $30,000,000 | ' | ' | ' | ' | ' | ' | $30,000,000 | ' |
Proceeds from Lines of Credit | ' | ' | ' | ' | ' | ' | 5,000,000 | ' | ' | ' | 6,000,000 | ' |
Long-term Line of Credit, Noncurrent | 11,000,000 | 5,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Proceeds from Issuance or Sale of Equity | ' | ' | ' | ' | 10,000,000 | ' | ' | ' | ' | ' | ' | ' |
Line of Credit Facility, Expiration Period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '4 years | ' |
Class of Warrant or Right, Number of Securities Called by Warrants or Rights (in Shares) | 347,222 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,000,000 | ' |
Class of Warrant or Right, Exercise Price of Warrants or Rights (in Dollars per Item) | 0.43 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.3875 | ' |
Warrants and Rights Outstanding | 250,000 | 292,000 | ' | ' | ' | ' | ' | 250,000 | 292,000 | ' | ' | ' |
Unrealized Gain (Loss) on Derivatives | ' | ' | ' | ' | ' | 42,000 | ' | ' | ' | ' | ' | ' |
Interest Expense, Debt | ' | ' | ' | ' | ' | ' | ' | ' | ' | 153,000 | 189,000 | ' |
Amortization of Financing Costs | $35,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | $36,000 | ' |
Note_5_Loan_Credit_Agreement_w3
Note 5 - Loan Credit Agreement with Related Party (Details) - Valuation Assumptions (Loan Credit Agreement [Member]) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2014 | Dec. 31, 2013 | |
Loan Credit Agreement [Member] | ' | ' |
Note 5 - Loan Credit Agreement with Related Party (Details) - Valuation Assumptions [Line Items] | ' | ' |
Dividend rate | 0.00% | 0.00% |
Risk-free rate | 2.30% | 2.50% |
Expected life (years) | '6 years 146 days | '6 years 255 days |
Expected volatility | 28.60% | 27.00% |
Note_6_Stockholders_Equity_Det
Note 6 - Stockholders' Equity (Details) (USD $) | 3 Months Ended | 12 Months Ended | 3 Months Ended | 1 Months Ended | 3 Months Ended | ||||||
Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2012 | Mar. 31, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Jan. 31, 2012 | Mar. 31, 2014 | Mar. 31, 2014 | Dec. 31, 2012 | Dec. 31, 2012 | |
2010 Stock Incentive Plan [Member] | Restricted Stock [Member] | Restricted Stock [Member] | Non-Executive Board Members [Member] | 1999 Stock Incentive Plan [Member] | 2010 Stock Incentive Plan [Member] | SWK HP Holdings LP [Member] | SWK HP Holdings GP [Member] | ||||
Note 6 - Stockholders' Equity (Details) [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term | ' | ' | ' | '10 years | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant (in Shares) | ' | ' | ' | ' | ' | ' | ' | 0 | 2,600,000 | ' | ' |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | ' | ' | ' | ' | $100,000 | ' | ' | $0 | $100,000 | ' | ' |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | ' | ' | ' | ' | '292 days | ' | ' | ' | '1 year 36 days | ' | ' |
Share-based Goods and Nonemployee Services Transaction, Quantity of Securities Issued (in Shares) | ' | ' | ' | ' | ' | ' | 35,000 | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number (in Shares) | ' | ' | ' | ' | 1,682,500 | 1,682,500 | ' | ' | ' | ' | ' |
Share-based Compensation | 76,000 | 60,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Investments in and Advance to Affiliates, Subsidiaries, Associates, and Joint Ventures | ' | ' | ' | ' | ' | ' | ' | ' | ' | 13,000,000 | 6,000,000 |
Noncontrolling Interest, Increase from Subsidiary Equity Issuance | ' | ' | $7,000,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Note_6_Stockholders_Equity_Det1
Note 6 - Stockholders' Equity (Details) - Summary of Activities Under Option Plans (USD $) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2014 | Dec. 31, 2013 | |
Summary of Activities Under Option Plans [Abstract] | ' | ' |
Balances - Number of shares | 1,670,000 | 1,680,000 |
Balances - Weighted Average exercise price | $1.01 | $1.01 |
Balances - Weighted average remaining contractual term | '7 years 6 months | '7 years 292 days |
Balances - Aggregate intrinsic value | $337,000 | $458,600 |
Options vested and exercisable and expected to be vested and exercisable at March 31, 2014 | 1,518,900 | ' |
Options vested and exercisable and expected to be vested and exercisable at March 31, 2014 | $1.03 | ' |
Options vested and exercisable and expected to be vested and exercisable at March 31, 2014 | '7 years 6 months | ' |
Options vested and exercisable and expected to be vested and exercisable at March 31, 2014 | 301,558 | ' |
Options vested and exercisable at March 31, 2014 | 170,000 | ' |
Options vested and exercisable at March 31, 2014 | $2.52 | ' |
Options vested and exercisable at March 31, 2014 | '6 years 6 months | ' |
Options vested and exercisable at March 31, 2014 | $89,500 | ' |
Options cancelled and retired | -10,000 | ' |
Options cancelled and retired | $2.65 | ' |
Options exercised | 0 | ' |
Options exercised | $0 | ' |
Options granted | 0 | ' |
Options granted | $0 | ' |
Note_6_Stockholders_Equity_Det2
Note 6 - Stockholders' Equity (Details) - Significant Ranges of Outstanding and Exercisable Options (USD $) | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 |
.70 [Member] | $0.83 [Member] | 1.24 [Member] | $2.67 [Member] | 2.95 [Member] | 3.50 [Member] | Total [Member] | |||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Exercise Prices | $1.01 | $1.01 | $0.70 | $0.83 | $1.24 | $2.67 | $2.95 | $3.50 | $1.01 |
Number Outstanding, Vested and Exercisable (in Shares) | ' | ' | 20,000 | 1,500,000 | 20,000 | 20,000 | 90,000 | 20,000 | 1,670,000 |
Weighted Average Remaining Contractual Life (In Years) | ' | ' | '5 years 109 days | '8 years 73 days | '4 years 109 days | '3 years 109 days | '2 years 146 days | '2 years 328 days | '7 years 6 months |
Weighted Average Exercise Price Per Share | $1.01 | $1.01 | $0.70 | $0.83 | $1.24 | $2.67 | $2.95 | $3.50 | $1.01 |
Number Exercisable (in Shares) | ' | ' | 20,000 | ' | 20,000 | 20,000 | 90,000 | 20,000 | 170,000 |
Weighted Average Exercise Price Per Share | ' | ' | $0.70 | $0.83 | $1.24 | $2.67 | $2.95 | $3.50 | $2.52 |
Note_6_Stockholders_Equity_Det3
Note 6 - Stockholders' Equity (Details) - Restricted Stock Activity (Restricted Stock [Member], USD $) | 3 Months Ended | |
Mar. 31, 2014 | Dec. 31, 2013 | |
Restricted Stock [Member] | ' | ' |
Note 6 - Stockholders' Equity (Details) - Restricted Stock Activity [Line Items] | ' | ' |
Balances, Number of Shares | 1,682,500 | 1,682,500 |
Balances, Weighted Average Grant Date Fair Value | $0.45 | $0.39 |
Shares cancelled and forfeited | 0 | ' |
Shares cancelled and forfeited | $0 | ' |
Shares vested | -140,000 | ' |
Shares vested | $0.83 | ' |
Shares granted | 140,000 | ' |
Shares granted | $1.13 | ' |
Note_6_Stockholders_Equity_Det4
Note 6 - Stockholders' Equity (Details) - Changes in Carrying Amount of Non-Controlling Interest (USD $) | 3 Months Ended | |
Mar. 31, 2014 | Dec. 31, 2012 | |
Changes in Carrying Amount of Non-Controlling Interest [Abstract] | ' | ' |
Balance at December 31, 2013 | $5,613,000 | $7,000,000 |
Add: Income attributable to non-controlling interests | 801,000 | ' |
Less: Cash distribution to non-controlling interests | -1,055,000 | ' |
Balance at March 31, 2014 | $5,359,000 | $7,000,000 |
Note_7_Fair_Value_Measurements2
Note 7 - Fair Value Measurements (Details) - Financial Assets and Liabilities Measured at Fair Value (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Financial Assets: | ' | ' |
Tribute warrant | $415 | $204 |
Tribute warrant | 415 | 204 |
Available-for-sale securities | 3,119 | 3,119 |
Financial Liabilities: | ' | ' |
Warrant liability | 250 | 292 |
Warrant liability | 250 | 292 |
Tribute Warrant [Member] | Fair Value, Inputs, Level 3 [Member] | ' | ' |
Financial Assets: | ' | ' |
Tribute warrant | 415 | 204 |
Tribute Warrant [Member] | ' | ' |
Financial Assets: | ' | ' |
Tribute warrant | 415 | 204 |
Tribute warrant | 415 | 204 |
Fair Value, Inputs, Level 2 [Member] | ' | ' |
Financial Assets: | ' | ' |
Available-for-sale securities | 3,119 | 3,119 |
Fair Value, Inputs, Level 3 [Member] | ' | ' |
Financial Assets: | ' | ' |
Tribute warrant | 415 | 204 |
Financial Liabilities: | ' | ' |
Warrant liability | $250 | $292 |
Note_7_Fair_Value_Measurements3
Note 7 - Fair Value Measurements (Details) - The Changes on the Value of the Warrants (USD $) | 3 Months Ended |
Mar. 31, 2014 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ' |
Fair value b December 31, 2013 | $204,000 |
Fair value b March 31, 2014 | 415,000 |
Fair value b December 31, 2013 | 292,000 |
Change in fair value | -42,000 |
Fair value b March 31, 2014 | 250,000 |
Tribute Warrant [Member] | ' |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ' |
Fair value b December 31, 2013 | 204,000 |
Issuances | 99,000 |
Change in fair value | 112,000 |
Fair value b March 31, 2014 | $415,000 |
Note_7_Fair_Value_Measurements4
Note 7 - Fair Value Measurements (Details) - Assets Measured at Fair Value (USD $) | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2013 | Dec. 31, 2012 |
Financial Assets | ' | ' | ' | ' |
Cash and cash equivalents | $3,867,000 | $7,664,000 | $24,748,000 | $24,584,000 |
Cash and cash equivalents | 3,867,000 | 7,664,000 | ' | ' |
Finance receivables | 41,665,000 | 29,286,000 | ' | ' |
Finance receivables | 41,675,000 | 29,324,000 | ' | ' |
Marketable investments | 3,119,000 | 3,119,000 | ' | ' |
Marketable investments | 3,119,000 | 3,119,000 | ' | ' |
Other assets | 415,000 | 204,000 | ' | ' |
Other assets | 415,000 | 204,000 | ' | ' |
Financial Liabilities | ' | ' | ' | ' |
Warrant liability | 250,000 | 292,000 | ' | ' |
Warrant liability | 250,000 | 292,000 | ' | ' |
Fair Value, Inputs, Level 1 [Member] | ' | ' | ' | ' |
Financial Assets | ' | ' | ' | ' |
Cash and cash equivalents | 3,867,000 | 7,664,000 | ' | ' |
Fair Value, Inputs, Level 2 [Member] | ' | ' | ' | ' |
Financial Assets | ' | ' | ' | ' |
Marketable investments | 3,119,000 | 3,119,000 | ' | ' |
Fair Value, Inputs, Level 3 [Member] | ' | ' | ' | ' |
Financial Assets | ' | ' | ' | ' |
Finance receivables | 41,675,000 | 29,324,000 | ' | ' |
Other assets | 415,000 | 204,000 | ' | ' |
Financial Liabilities | ' | ' | ' | ' |
Warrant liability | $250,000 | $292,000 | ' | ' |
Note_8_Income_Taxes_Details
Note 8 - Income Taxes (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Mar. 31, 2014 | |
Note 8 - Income Taxes (Details) [Line Items] | ' | ' |
Unrecognized Tax Benefits | $0 | $0 |
Effective Income Tax Rate Reconciliation, Change in Deferred Tax Assets Valuation Allowance, Amount | -20,960,000 | ' |
Deferred Tax Assets, Operating Loss Carryforwards, Domestic | ' | 433,000,000 |
Exercise of Stock Options [Member] | ' | ' |
Note 8 - Income Taxes (Details) [Line Items] | ' | ' |
Operating Loss Carryforwards | $1,800,000 | ' |
Note_8_Income_Taxes_Details_De
Note 8 - Income Taxes (Details) - Deferred Tax Assets (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Deferred tax assets | ' | ' |
Credit carryforward | $2,660 | $2,660 |
Stock based compensation | 287 | 287 |
Other | 59 | 59 |
Net operating losses | 145,931 | 146,637 |
Gross deferred tax assets | 148,937 | 149,643 |
Valuation allowance | -139,840 | -139,840 |
Net deferred tax assets | $9,097 | $9,803 |