SWK (SWKH) 10-K 28 Mar 19 2018 FY Annual report Financial data

Document and Entity Information

Document and Entity Information - USD ($)	12 Months Ended
	Dec. 31, 2018	Mar. 22, 2019	Jun. 29, 2018
Document and Entity Information [Abstract]
Entity Registrant Name	SWK Holdings Corporation
Entity Central Index Key	0001089907
Document Type	10-K
Trading Symbol	SWKH
Current Fiscal Year End Date	--12-31
Amendment Flag	false
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Filer Category	Non-accelerated Filer
Entity Well-known Seasoned Issuer	No
Document Period End Date	Dec. 31, 2018
Document Fiscal Year Focus	2018
Document Fiscal Period Focus	FY
Entity Common Stock, Shares Outstanding		12,856,721
Entity Public Float			$ 38,389,710
Entity Shell Company	false
Entity Emerging Growth Company	false
Entity Small Business	true
Entity Ex Transition Period	false

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
ASSETS
Cash and cash equivalents	$ 20,227	$ 30,557
Accounts receivable	2,195	1,637
Finance receivables, net	166,610	151,995
Marketable investments	532	1,856
Deferred tax asset	22,684	22,725
Warrant assets	2,777	987
Other assets	637	126
Total assets	215,662	209,883
LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable and accrued liabilities	2,592	1,840
Warrant liability	13	91
Total liabilities	2,605	1,931
Stockholders' equity:
Preferred stock, $0.001 par value; 5,000,000 shares authorized; no shares issued and outstanding
Common stock, $0.001 par value; 250,000,000 shares authorized; 12,933,674 and 13,053,422 shares issued and outstanding at December 31, 2018 and 2017, respectively	13	13
Additional paid-in capital	4,432,499	4,433,589
Accumulated deficit	(4,219,455)	(4,225,863)
Accumulated other comprehensive loss		213
Total SWK Holdings Corporation stockholders' equity	213,057	207,952
Total liabilities and stockholders' equity	$ 215,662	$ 209,883

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Dec. 31, 2018	Dec. 31, 2017
Statement of Financial Position [Abstract]
Preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001
Preferred stock, authorized	5,000,000	5,000,000
Preferred stock, issued	0	0
Preferred stock, outstanding	0	0
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, authorized	250,000,000	250,000,000
Common stock, issued	12,933,674	13,053,422
Common stock, outstanding	12,933,674	13,053,422

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Revenues
Finance receivable interest income, including fees	$ 25,978	$ 26,877
Income related to investments in unconsolidated entities		10,530
Other	12	79
Revenues	25,990	37,486
Costs and expenses:
Provision for loan credit losses	6,179
Impairment expense	7,875	8,509
Interest expense	160
General and administrative	4,883	4,101
Total costs and expenses	19,097	12,610
Other income (expense), net
Equity investment losses	(1,035)
Unrealized net gain (loss) on derivatives	484	(1,115)
Gain (loss) on sale (write off) of investments	(105)	243
Income before provision for income taxes	6,237	24,004
Provision (benefit) for income taxes	42	15,753
Consolidated net income (loss)	6,195	8,251
Net income attributable to non-controlling interests		5,204
Net income (loss) attributable to SWK Holdings Corporation Stockholders	$ 6,195	$ 3,047
Net income (loss) per share attributable to SWK Holdings Corporation Stockholders
Basic (in dollars per share)	$ 0.47	$ 0.23
Diluted (in dollars per share)	$ 0.47	$ 0.23
Weighted Average Shares
Basic (in shares)	13,051,000	13,036,000
Diluted (in shares)	13,054,000	13,040,000

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Statement of Comprehensive Income [Abstract]
Consolidated net income (loss)	$ 6,195	$ 8,251
Other comprehensive income (loss), net of tax
Unrealized gains on investment in securities		300
Total other comprehensive income (loss)		300
Comprehensive income (loss)	6,195	8,551
Comprehensive income attributable to non-controlling interests		5,204
Comprehensive income (loss) attributable to SWK Holdings Corporation stockholders	$ 6,195	$ 3,347

CONSOLIDATED STATEMENTS OF STOC

CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands	Common Stock	Additional Paid-In Capital	Accumulated Deficit	Noncontrolling Interest	Accumulated Other Comprehensive Income (Loss)	Total
Beginning Balance at Dec. 31, 2016	$ 13	$ 4,433,289	$ (4,228,910)	$ 3,756	$ (87)	$ 208,061
Beginning Balance, in Shares at Dec. 31, 2016	13,144,292
Stock-based compensation		300				300
Issuance of common stock
Issuance of common stock, in Shares	21,630
Forfeiture of restricted stock
Forfeiture of restricted stock (in shares)	(112,500)
Change in fair value of securities					300	300
Distributions to non-controlling interests				(8,960)		(8,960)
Net income (loss)			3,047	5,204		8,251
Ending Balance at Dec. 31, 2017	$ 13	4,433,589	(4,225,863)		213	207,952
Ending Balance, in Shares at Dec. 31, 2017	13,053,422
Stock-based compensation		267				267
Issuance of common stock
Issuance of common stock, in Shares	20,318
Distributions to non-controlling interests
Repurchases of common stock in open market		(1,357)				(1,357)
Repurchases of common stock in open market (in shares)	(140,066)
Cumulative effect of adoption of New Accounting Principles			213		(213)
Net income (loss)			6,195			6,195
Ending Balance at Dec. 31, 2018	$ 13	$ 4,432,499	$ (4,219,455)			$ 213,057
Ending Balance, in Shares at Dec. 31, 2018	12,933,674

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Cash flows from operating activities:
Consolidated net income	$ 6,195	$ 8,251
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Income from investments in unconsolidated entities		(10,530)
Provision for loan credit losses	6,179
Impairment expense	7,875	8,509
Deferred income taxes	31	15,745
Change in fair value of derivatives	(484)	1,115
Equity investment losses	1,035
Gain (loss) on sale (write off) of investments	105	(243)
Finance receivable discount amortization and fee accretion	487	(1,926)
Interest paid-in-kind	(191)	(1,779)
Stock-based compensation	267	300
Interest income in excess of cash collected	(249)	(534)
Other	28	17
Changes in operating assets and liabilities:
Accounts receivable	(558)	(583)
Other assets	202	(42)
Accounts payable and other liabilities	(1,296)	1,158
Net cash provided by operating activities	19,626	19,458
Cash flows from investing activities:
Cash distributions from investments in unconsolidated entity		17,515
Proceeds from sale of available-for-sale marketable securities	221	345
Investment in finance receivables	(90,110)	(37,432)
Repayment of finance receivables	61,706	7,368
Marketable investment principal payment	69	93
Other	(16)	(12)
Net cash provided by (used in) investing activities	(28,130)	(12,123)
Cash flows from financing activities:
Repurchases of common stock, including fees and expenses	(1,357)
Debt issuance costs	(469)
Distribution to non-controlling interests		(8,960)
Net cash used in financing activities	(1,826)	(8,960)
Net decrease in cash and cash equivalents	(10,330)	(1,625)
Cash and cash equivalents at beginning of period	30,557	32,182
Cash and cash equivalents at end of period	20,227	30,557
Supplemental noncash flow activity:
Warrants received in connection with finance receivables	1,490	1,188
Common stock received in connection with amendment of finance receivable		$ 150

SWK Holdings Corporation and Su

SWK Holdings Corporation and Summary of Significant Accounting Policies	12 Months Ended
	Dec. 31, 2018
Accounting Policies [Abstract]
SWK Holdings Corporation and Summary of Significant Accounting Policies	Note 1. SWK Holdings Corporation and Summary of Significant Accounting Policies Nature of Operations SWK Holdings Corporation (the “Company”) was incorporated in July 1996 in California and reincorporated in Delaware in September 1999. In July 2012, the Company commenced its strategy of building a specialty finance and asset management business. The Company’s strategy is to be a leading healthcare capital provider by offering sophisticated, customized financing solutions to a broad range of life science companies, institutions and inventors. The Company is primarily 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 has been deploying its assets to earn interest, fees, 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, through the Company’s wholly-owned subsidiary, SWK Advisors LLC, the Company provides non-discretionary investment advisory services to institutional clients in separately managed accounts to similarly invest in life science finance. SWK Advisors LLC is registered as an investment advisor with the Texas State Securities Board. The Company intends to fund transactions through its own working capital, and its revolving credit facility, as well as by building its asset management business by raising additional third-party capital to be invested alongside the Company’s capital. The Company fills a niche that it believes is underserved in the sub-$50 million transaction size. Since many of its competitors that provide longer term, non-traditional debt and/or royalty-related financing options have much greater financial resources than the Company, they tend to not focus on transaction sizes below $50 million as it is generally inefficient for them to do so. In addition, the Company does not believe that a sufficient number of other companies offer similar types of long-term financing options to fill the demand of the sub-$50 million market. As such, the Company believes it faces less competition from such investors in transactions that are less than $50 million. The Company has net operating loss carryforwards (“NOLs”) and believes that the ability to utilize these NOLs is an important and substantial asset. However, at this time, under current law, we do not anticipate that our life science business strategy will generate sufficient income to permit us to utilize all of our NOLs prior to their respective expiration dates. As such, it is possible that we might pursue additional strategies that we believe might result in our ability to utilize more of our NOLs. As of March 22, 2019, the Company and its partners have executed transactions with 34 different parties under its specialty finance strategy, funding an aggregate $504 million in various financial products across the life science sector. The Company’s portfolio includes senior and subordinated debt backed by royalties and synthetic royalties paid by companies in the life science sector, and purchased royalties generated by sales of life science products and related intellectual property. The Company is headquartered in Dallas, Texas. Basis of Presentation and Principles of Consolidation The Company’s consolidated financial statements are prepared in accordance with accounting principles generally accepted in the U.S. (“GAAP”). The 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 may be less than 50 percent, the related governing agreements provide the Company with broad powers, and the other parties do not participate in the management of the entities and do not effectively have the ability to remove the Company. The Company has reviewed each of the underlying agreements to determine if it has effective control. If circumstances change and it is determined this control does not exist, any such investment would be recorded using the equity method of accounting. Although this would change individual line items within the Company’s consolidated financial statements, it would have no effect on its operations and/or total stockholders’ equity attributable to the Company. 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 5 of the Notes to the Consolidated Financial Statements for further discussion of VIEs. Use of Estimates The preparation of the Company’s 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 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, 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’s 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 changes to those estimates and assumptions. Market conditions, such as illiquid credit markets, volatile equity markets, and economic downturns, 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 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 Investment 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 partner company depends on an evaluation of several factors including, among others, representation of the Company on the partner company’s board of directors and the Company’s ownership level. Under the equity method of accounting, the Company does not reflect a partner company’s financial statements within the Company’s consolidated financial statements; however, the Company’s share of the income or loss of such partner company is reflected in the consolidated statements of income. The Company includes the carrying value of equity method partner companies as part of the investment in unconsolidated entities on the consolidated balance sheets. When the Company’s carrying value in an equity method partner company is reduced to zero, the Company records no further losses in its consolidated statements of income unless the Company has an outstanding guarantee obligation or has committed additional funding to such equity method partner company. When such equity method partner 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 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 an impairment when the carrying amount exceeds fair value and the difference relates to credit quality. Otherwise the write-down is recorded as a reduction in finance receivable interest 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 finance receivable interest 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 interest income over the life of the loan using the effective interest method. The Company accounts for its finance receivables at amortized cost, net of unamortized origination fees, if any. Related fees and costs are recorded net of any amounts reimbursed, and interest is accreted or accrued to interest revenue using the effective interest method. When and if supplemental payments are received from these long-term receivables, an adjustment to the estimated effective interest rate is affected prospectively. The Company evaluates the collectability of both interest and principal for each loan to determine whether it is impaired. A loan is considered to be impaired when, based on current information and events, the Company determines it is probable that it will be unable to collect amounts due according to the existing contractual terms. When a loan is considered to be impaired, the amount of loss is calculated by comparing the carrying value of the financial asset to the value determined by discounting the expected future cash flows at the loan’s effective interest rate or to the estimated fair value of the underlying collateral, less costs to sell, if the loan is collateralized and the Company expects repayment to be provided solely by the collateral. Impairment assessments require significant judgments and are based on significant assumptions related to the borrower’s credit risk, financial performance, expected sales, and estimated fair value of the collateral. Allowance for Credit Losses on Finance Receivables The allowance for credit losses is intended to provide for credit losses inherent in the financing receivables portfolio and is periodically reviewed for adequacy considering credit quality indicators, including expected and historical losses and levels of and trends in past due loans, non-performing assets and impaired loans, collateral values and economic conditions. The allowance for credit losses is determined based on specific allowances for loans that are impaired, based upon the value of underlying collateral or projected cash flows. Changes to the allowance for credit losses are recorded in the provision for loan credit losses in the consolidated statement of income. Marketable Investments The Company’s marketable investment portfolio includes a debt security as of December 31, 2018. The debt security is classified as an available-for-sale security, which is reported at fair value with unrealized gains or losses recorded in statements of income, net of applicable income taxes. 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 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 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 consolidated statements of income, or recorded in other comprehensive income. The Company had no derivatives designated as hedges as of December 31, 2018 and 2017. The Company holds warrants issued to the Company in conjunction with term loan investments discussed in Note 2. These warrants meet the definition of a derivative and are included in warrant assets in the consolidated balance sheets. The Company issued a warrant on its own common stock as discussed in Note 6. This warrant meets the definition of a derivative and is reflected as a warrant liability at fair value in the consolidated balance sheets. 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 when clients invest in our recommended transactions 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 service revenues are recognized when contractual obligations are fulfilled or as services are provided. Cash and Cash Equivalents The Company considers all highly liquid investments with an original maturity date of three months or less at the date of purchase to be cash equivalents. There were no such investments at December 31, 2018 or 2017, as all of our cash was held in checking or savings accounts. As of December 31, 2018, cash equivalents were deposited in financial institutions and consisted of immediately available fund balances. The Company maintains its cash deposits and cash equivalents with well-known and stable financial institutions. Interest and Accounts Receivable The Company records interest receivable on an accrual basis and recognizes it as earned in accordance with the contractual terms of the loan agreement, to the extent that such amounts are expected to be collected. When management does not expect that principal, interest, and other obligations due will be collected in full, the Company will generally place the loan on nonaccrual status and cease recognizing interest income on that loan until all principal and interest due has been paid or the Company believes the portfolio company has demonstrated the ability to repay the Company’s current and future contractual obligations. Any uncollected interest related to prior periods is reversed from income in the period that collection of the interest receivable is determined to be doubtful. However, the Company may make exceptions to this policy if the investment has sufficient collateral value and is in the process of collection. The Company recognized $6.2 million in provision for loan credit losses during 2018 but did not recognize any provision for loan credit losses during 2017. Accounts receivable for management fees are recorded at the aggregate unpaid amount less any allowance for doubtful accounts. The Company determines an account receivable’s delinquency status based on its contractual terms. Interest is not charged on outstanding balances. Accounts are written-off only when all methods of recovery have been exhausted. As of December 31, 2018 and 2017, the allowance for doubtful accounts was zero. 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 partner companies and generally requires collateral. For the year ended December 31, 2018, one partner company accounted for 10 percent of total revenue. For the year ended December 31, 2017, two partner companies accounted for 51 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. Segment Reporting The Company operates in one operating segment with a single management team that reports to the chief executive officer, who is its chief operating decision maker. Accordingly, the Company does not prepare discrete financial information with respect to separate product lines and does not have separately reportable segments. Stock-based Compensation All employee and director stock-based compensation is measured at the grant date, based on the estimated fair value of the award, and is recognized as an expense over the requisite service period. Stock-based compensation expense is reduced for estimated future forfeitures. These estimates are revised in future periods if actual forfeitures differ from the estimates. Changes in forfeiture estimates impact compensation expense in the period in which the change in estimate occurs. For restricted stock, the Company recognizes compensation expense in accordance with the fair value of the Company’s stock as determined on the grant date, amortized over the applicable service period. When vesting of awards is based wholly or in part upon the future performance of the stock price, such terms result in adjustments to the grant date fair value of the award and the derivation of a service period. If service is provided over the derived service period, the adjusted fair value of the awards will be recognized as compensation expense, regardless of whether or not the awards vest. Non-controlling Interests Non-controlling interests represent third-party equity ownership in certain of the Company’s consolidated subsidiaries, VIEs or investments and are presented as a component of equity. See Notes 5 and Note 8 of the Notes to the Consolidated Financial Statements for further discussion of non-controlling interests. Income Taxes Deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. A valuation allowance is recorded to reduce deferred tax assets to an amount where realization is more likely than not. If the Company ultimately determines that the payment of such a liability is not necessary, then the Company reverses the liability and recognizes a tax benefit during the period in which the determination is made that the liability is no longer necessary. The Company recognizes accrued interest and penalties related to unrecognized tax benefits as a component of income tax benefit in the statements of income. On December 22, 2017, the U.S. government enacted comprehensive tax legislation commonly referred to as the Tax Cuts and Jobs Act (“TCJA”). The TCJA makes broad and complex changes to the U.S. tax code. On the same date, the SEC staff issued Staff Accounting Bulletin (“SAB”) 118, which provides guidance on accounting for the tax effects of the TCJA. It provides a “measurement period” lasting through December 22, 2018 to allow registrants time to obtain, prepare and analyze information to complete the accounting required under ASC 740, Income Taxes. The Company completed its analysis during the measurement period, and there were no measurement period adjustments recognized during 2018. Please refer to Note 10 of the Notes to the Consolidated Financial Statements. Comprehensive Income Comprehensive income and its components attributable to the Company and non-controlling interests have been reported, net of tax, in the consolidated statements of stockholders’ equity and the consolidated statements of comprehensive income. 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): Year Ended 2018 2017 Numerator: Net income attributable to SWK Holdings Corporation stockholders $ 6,195 $ 3,047 Denominator: Weighted-average shares outstanding 13,051 13,036 Effect of dilutive securities 3 4 Weighted-average diluted shares 13,054 13,040 Basic net income per share $ 0.47 $ 0.23 Diluted net income per share $ 0.47 $ 0.23 As of December 31, 2018 and 2017, outstanding stock options and warrants to purchase shares of common stock in an aggregate of approximately 271,000 and 287,000 shares, respectively, have been excluded from the calculation of diluted net income per share as these securities were anti-dilutive. Recent Accounting Pronouncements In August 2018, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2018-13, “Fair Value Measurement (Topic 820) - Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement.” ASU 2018-13 updates the fair value measurement disclosure requirements by (i) eliminating certain requirements, including disclosure of the amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy, the policy for timing of transfers between levels and the valuation processes for Level 3 fair value measurements, (ii) modifying certain requirements, including clarifying that the measurement uncertainty disclosure is to communicate information about the uncertainty in measurement as of the reporting date and (iii) adding certain requirements, including disclosure of the changes in unrealized gains and losses for the period included in other comprehensive income for recurring Level 3 fair value measurements held at the end of the reporting period and the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements. ASU 2018-13 is effective for fiscal years and interim periods within those years beginning after December 15, 2019, with early adoption permitted for any eliminated or modified disclosures. The Company is currently evaluating the new guidance but believes it will not have a material impact on its consolidated financial statements, as the Company has had no historical transfers between hierarchies and assets currently measured under the Level 3 fair value hierarchy is minimal. In June 2016, the FASB issued ASU No. 2016-13, “Financial Instruments - Credit Losses (Topic 326).” The new standard adds an impairment model, known as the current expected credit loss (“CECL”) model, that is based on expected losses rather than incurred losses. Under the new guidance, an entity recognizes as an allowance its estimate of expected credit losses, which the FASB believes will result in more timely recognition of losses. The ASU describes the impairment allowance as a valuation account that is deducted from the amortized cost basis of the financial asset(s) to present the net carrying value at the amount expected to be collected on the financial asset. Credit losses relating to available-for-sale debt securities should be measured in a manner similar to current GAAP; however, the amendments in this update require that credit losses be presented as an allowance rather than as a write-down, which will allow an entity the ability to record reversals of credit losses in current period net income. The amendments in this update are effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. An entity will apply the amendments in this update through a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective (that is, a modified-retrospective approach). A prospective transition approach is required for debt securities for which an other-than-temporary impairment has been recognized before the effective date. The Company is currently evaluating the new guidance but believes it is likely to incur more upfront losses on its portfolio under the new CECL model.

Finance Receivables

Finance Receivables	12 Months Ended
	Dec. 31, 2018
Receivables [Abstract]
Finance Receivables	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): As of December 31, Portfolio 2018 2017 Term Loans $ 136,379 $ 118,533 Royalty Purchases 36,410 35,121 Total before allowance for credit losses 172,789 153,654 Allowance for credit losses (6,179 ) (1,659 ) Total carrying value $ 166,610 $ 151,995 Credit Quality of Finance Receivables The Company originates finance receivables to companies primarily in the life sciences sector. This concentration of credit exposes the Company to a higher degree of risk associated with this sector. On a quarterly basis, the Company evaluates the carrying value of each finance receivable for impairment. 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 the 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. In certain circumstances, the Company may place a finance receivable on nonaccrual status but conclude it is not impaired. The Company may retain independent third-party valuations on such nonaccrual positions to support impairment decisions. 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, or the estimated fair value of the collateral, less estimated costs to sell. 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 individually develops the allowance for credit losses for any identified impaired loans. In developing the allowance for credit losses, the Company considers, among other things, the following credit quality indicators: § § § § § § § The following table presents nonaccrual and performing loans by portfolio segment (in thousands): December 31, 2018 December 31, 2017 Nonaccrual Performing Total Nonaccrual Performing Total Term Loans $ 8,337 $ 128,042 $ 136,379 $ 11,402 $ 107,131 $ 118,533 Royalty Purchases 5,784 24,447 30,231 — 33,462 33,462 Total carrying value $ 14,121 $ 152,489 $ 166,610 $ 11,402 $ 140,593 $ 151,995 As of December 31, 2018 and 2017, the Company had two term loans associated with two portfolio companies in nonaccrual status with a carrying value, net of provision for credit loss allowance, of $14.1 million and $11.4 million, respectively. The Company collected $0.6 million on one nonaccrual loan during the year ended December 31, 2018 and no cash on nonaccrual loans was collected during the year ended December 31, 2017. Of the two nonaccrual term loans as of December 31, 2018, no loans are deemed to be impaired. (Please see ABT Molecular Imaging, Inc., B&D Dental Corporation, and Hooper Holmes, Inc. ABT Molecular Imaging, Inc. (“ABT”) On October 10, 2014, the Company entered into a credit agreement pursuant to which the Company provided ABT a second lien term loan in the principal amount of $10.0 million. The loan was scheduled to mature on October 8, 2021. The synthetic royalty payment due to the Company on December 15, 2015 was blocked by ABT’s first lien lender pursuant to the terms of the intercreditor agreement by and between the Company and the first lien lender as a result of a forbearance agreement entered into between ABT and the first lien lender. Under the terms of the forbearance agreement, the first lien lender deferred principal payments until maturity of the first lien in March 2016 and ABT raised additional equity capital. In February 2016, ABT violated the terms of the forbearance agreement with the first lien lender. In order to control the workout of the default under the first lien loan and prevent the equity sponsors from taking control of the first lien term loan, the Company purchased from an unrelated party the first lien term loan at par for a purchase price of $0.7 million. The equity sponsors funded cash shortfalls into the second quarter of 2016. Since 2016, the Company has entered into additional amendments to the first lien term loan to provide for an additional $10.1 million of liquidity under the first lien credit agreement. The Company recorded an impairment loss of $7.6 million as of December 31, 2017. On June 13, 2018, ABT filed for Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court for the District of Delaware (the “Bankruptcy Court”) in order to implement a restructuring that would entail either a sale of substantially all of ABT’s assets under section 363 of the bankruptcy code or confirmation of a plan that would convert a portion of the Company’s outstanding secured indebtedness into 100 percent of the equity of reorganized ABT. The Company agreed to provide ABT up to $1.65 million of secured, debtor-in-possession financing to support ABT’s proposed bankruptcy restructuring. On October 31, 2018, ABT announced that it entered into an asset purchase agreement with Best ABT, Inc., a wholly-owned subsidiary of Best Medical International, Inc. (“Best”), for aggregate consideration of (i) $500,000, paid over ten years in equal quarterly installments, plus (ii) a ten percent royalty on ABT’s net sales, including any commercialized improvements made to ABT’s technology, paid quarterly for the ten year period from closing pursuant to a royalty security agreement by and between Best and SWK Funding LLC, a wholly-owned subsidiary of the Company (“SWK Funding”). SWK Funding will receive 100 percent of the consideration. On November 8, 2018, the Bankruptcy Court approved the asset sale transaction, and the Company has no further funding liabilities. During the year ended December 31, 2018, the Company re-evaluated its collateral position, considering the expected outcome of the Chapter 11 process, and as a result, the Company recognized impairment expense of $5.3 million to write off the second lien term loan, as well as provision for credit losses of $5.0 million to reflect the Best royalty at its estimated fair value of $5.8 million as of December 31, 2018. B&D Dental Corporation (“B&D”) On December 10, 2013, the Company entered into a five-year credit agreement to provide B&D a senior secured term loan with a principal amount of $6.0 million funded upon close, net of an arrangement fee of $60,000. The loan was scheduled to mature on December 10, 2018. Subsequently, the terms of the loan have been amended, and the Company has funded additional amounts to B&D. As of December 31, 2018, the total amount funded was $8.3 million. B&D is currently evaluating strategic options, including a potential sale of the business. B&D is currently in default under the terms of the credit agreement, and as a result, the Company classified the loan to nonaccrual status as of September 30, 2015. During 2016 and 2018, the Company executed three additional amendments to the loan to advance an additional $0.7 million in order to directly pay critical vendors and protect the value of the collateral. The Company believes its collateral position is greater than the unpaid balance; thus, accrued interest has not been reversed nor has an allowance been recorded as of December 31, 2018. Hooper Holmes, Inc. (“Hooper”) On May 12, 2017, the Company provided a $6.5 million term loan to Hooper to support its merger with Provant Health Solutions, LLC (“Provant”). On August 8, 2017, the Company provided an additional $2.0 million term loan with terms similar to the original term loan. The $2.0 million August 2017 term loan was scheduled to mature on February 1, 2018. In late January, Hooper informed the Company of tight liquidity and that it was unable to repay the full $2.0 million; thus, the Company agreed to extend the maturity for twelve weeks to April 30, 2018 in exchange for a partial repayment of $0.3 million on February 1, 2018 and an additional $0.3 million on March 15, 2018. However, in mid-March, Hooper informed the Company that it was unable to repay the $0.3 million that was due on March 15, 2018. The Company required Hooper to retain financial advisors to evaluate strategic options, which included a potential sale of the business. On August 27, 2018, Hooper announced that it entered into an asset purchase agreement with Summit Health, Inc. (“Summit”), a subsidiary of Quest Diagnostics (“Quest”). In conjunction with the sale process, Hooper petitioned for Chapter 11 bankruptcy protection to facilitate a rapid section 363 sale process. Between May and August 2018, the Company entered into additional amendments, whereby the Company advanced Hooper an additional $9.4 million to meet its working capital requirements during the sale process and an additional $1.5 million of debtor-in-possession financing through its sale on October 10, 2018. On October 10, 2018, the Company received $15.6 million of cash proceeds from the asset sale, with an additional $0.2 million collected pursuant to the bankruptcy court approved estate wind down budget. Royalty Purchases Cambia® On July 31, 2014, the Company purchased a 25 percent royalty on sales of Cambia® from royalty holder, APR Applied Pharma Research S.A. (“APR”), for $4.0 million. On December 2, 2015, the Company purchased a second 25 percent royalty on sales of Cambia® for $4.5 million. In the U.S., Cambia® is marketed by DepoMed, Inc. (“DepoMed”) while the product is marketed by Aralez Pharmaceuticals, Inc. in Canada. As disclosed by DepoMed, Cambia® prescription trends decelerated in 2017, and while they have begun to stabilize, they are not growing in line with the Company’s original forecast. During the three months ended March 31, 2018, the Company reduced its expectations for future royalty receipts and recognized an allowance for credit loss on the royalty purchase of $1.2 million.

Marketable Investments

Marketable Investments	12 Months Ended
	Dec. 31, 2018
Investments, Debt and Equity Securities [Abstract]
Marketable Investments	Note 3. Marketable Investments Investment in marketable securities at December 31, 2018 and 2017 consist of the following (in thousands): Year Ended 2018 2017 Corporate debt securities $ 532 $ 600 Equity securities — 1,256 Total $ 532 $ 1,856 The amortized cost basis amounts, gross unrealized holding gains, gross unrealized holding losses and fair values of available-for-sale debt securities as of December 31, 2018 and 2017, are as follows (in thousands): December 31, 2018 Amortized Gross Gross Fair Corporate debt securities $ 532 $ — $ — $ 532 December 31, 2017 Amortized Gross Gross Fair Corporate debt securities $ 600 $ — $ — $ 600 The following table presents the proceeds from sales and realized net gains and losses on equity securities that were sold during the year ended December 2018 and 2017. The table also includes unrealized net losses on equity securities as prescribed by ASC 321, “Investment - Equity Securities.” ASU 2016-01, “Recognition and Measurement of Financial Assets and Financial Liabilities,” was adopted on January 1, 2018, at which time a cumulative effect adjustment of $213,000 was recorded to reclassify the amount of accumulated unrealized gains related to equity securities from accumulated other comprehensive income to retained earnings (in thousands): December 31, 2018 2017 Proceeds from sale of equity securities 221 345 Gain (loss) on sale (write off) of investments (105 ) 243 Equity investment losses reflected in the Consolidated Statements of Income (1,035 ) — The Company did not have any investments in marketable securities with unrealized losses at December 31, 2018. Equity securities with unrealized losses, aggregated by length of time that individual securities have been in a continuous loss position as of December 31, 2017, were as follows (in thousands): December 31, 2017 Less than Twelve Months Twelve Months or Greater Total Fair Unrealized Fair Unrealized Fair Unrealized Equity securities — — 33 (117 ) 33 (117 ) Equity Securities During the year ended December 31, 2018, the Company recognized a nominal net gain on the sale of 661,076 shares of Cancer Genetics common stock and the write off of its equity securities in Hooper due to the announcement of its section 363 sale in August (please refer to Note 2 for further details on the Hooper section 363 sale). The Company had no equity securities as of December 31, 2018. During the year ended December 31, 2017, the Company sold 75,000 shares of Cancer Genetics common stock, which resulted in a realized gain of $0.2 million. As of December 31, 2017, the Cancer Genetics and Hooper Holmes equity securities were reflected at their respective fair value of $1.2 million and $33,000 respectively. Debt Securities On July 9, 2013, the Company entered into a note purchase agreement to purchase, at par, $3.0 million of a total of $100.0 million aggregate principal amount of senior secured notes due in November 2026. The agreement allows the first interest payment date to include paid-in-kind notes for any cash shortfall, of which the Company received $0.1 million on November 15, 2013. The notes are secured only by certain royalty and milestone payments associated with the sales of pharmaceutical products. The senior secured notes have been placed on non-accrual status as of June 30, 2016. Total cash collected during the year ended December 31, 2018 and 2017 was $69,000 and $93,000, respectively, which was credited to the notes’ carrying value. As of December 31, 2018, the notes are reflected at their estimated fair value of $0.5 million.

Revolving Credit Facility

Revolving Credit Facility	12 Months Ended
	Dec. 31, 2018
Notes to Financial Statements
Revolving Credit Facility	Note 4. Revolving Credit Facility On June 29, 2018, the Company entered into a Loan and Security Agreement (the “Loan Agreement”) with State Bank and Trust Company as a lender and the administrative agent (“State Bank”) pursuant to which State Bank will provide the Company with up to a $20 million revolving senior secured credit facility, which the Company can draw down and repay until maturity, subject to borrowing base eligibility. The Loan Agreement matures on June 29, 2021. The Loan Agreement accrues interest at the Daily LIBOR Rate, with a floor of 1.00 percent, plus a 3.25 percent margin and principal is repayable in full at maturity. Interest is generally required to be paid monthly in arrears. The Loan Agreement requires the payment of an unused line fee of 0.50 percent, which will be recorded as interest expense. The Company paid $0.5 million in fees at closing, which have been capitalized as deferred financing costs and will be amortized on a straight-line basis over the term of the Loan Agreement. The Loan Agreement has an advance rate against the Company’s finance receivables portfolio, including 85 percent against senior first lien loans, 70 percent against second lien loans and 50 percent against royalty receivables, subject to certain eligibility requirements as defined in the Loan Agreement. The Loan Agreement contains certain affirmative and negative covenants, including minimum asset coverage and minimum interest coverage ratios. As of December 31, 2018, the Company was in compliance with its covenants. During the year ended December 31, 2018, the Company recognized $0.2 million of interest expense, which is included in costs and expenses. As of December 31, 2018, no amount was outstanding under the Loan Agreement, and $20 million was available for borrowing.

Variable Interest Entities

Variable Interest Entities	12 Months Ended
	Dec. 31, 2018
Receivables [Abstract]
Variable Interest Entities	Note 5. Variable Interest Entities The Company consolidates the activities of VIEs of which it is 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”) 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 $13.0 million. 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 $13.0 million included $6.0 million provided by SWK Holdings GP and $7.0 million provided by non-controlling interests. Subject to customary limited partner protections afforded the investors by the terms of the limited partnership agreement, the Company maintained voting and managerial control of SWK HP and therefore included it in its consolidated financial statements. SWK HP had significant influence over the decisions made by Holmdel. SWK HP received quarterly distributions of cash flow generated by InnoPran XL according to a tiered scale that was subject to certain cash on cash returns received by SWK HP. SWK HP achieved the 2x cash on cash return threshold with the November 2016 distribution as such its economic ownership in Holmdel approximated 49 percent. On February 23, 2017, Holmdel sold the U.S. marketing authorization rights to InnoPran XL to ANI Pharmaceuticals, Inc. SWK Holdings GP received net proceeds from the transaction of approximately $8.0 million. The approximate $8.0 million of proceeds includes a 5 percent incentive fee earned from SWK HP, and SWK Holdings GP’s share of the sale proceeds. As part of the transaction, SWK HP and all involved parties executed mutual releases and terminations of all license and supply agreements. SWK Holdings GP received an additional distribution regarding InnoPran XL sales covering the period from January 1, 2017 through the date of sale and has not received any further material distributions. Unconsolidated VIE For the year ended December 31, 2018, the Company did not recognize any income or receive any cash distributions from Holmdel. For the year ended December 31, 2017, the Company recognized $10.5 million of equity method gains. The amount of equity method gains attributable to the non-controlling interest in SWK HP was $5.2 million. In addition, SWK HP received cash distribution totaling $17.5 million during the year ended December 31, 2017,of which $9.0 million was subsequently paid to holders of the non-controlling interests in SWK HP.

Related Party Transactions

Related Party Transactions	12 Months Ended
	Dec. 31, 2018
Related Party Transactions [Abstract]
Related Party Transactions	Note 6. Related Party Transactions On September 6, 2013, in connection with entering into a credit facility, the Company issued warrants to an affiliate of a stockholder, Carlson Capital, L.P. (the “Stockholder”), for 100,000 shares of the Company’s common stock at a strike price of $13.88 per share. The warrants have a price anti-dilution mechanism that was triggered by the price that shares were sold by the Company in a rights offering in 2014, and as a result, the strike price of the warrants was reduced to $13.48 per share. Due to certain provisions within the warrant agreement, the warrants meet the definition of a derivative and do not qualify for a scope exception, as it is not considered indexed to the Company’s stock. As such, the warrants are reflected as a warrant liability in the consolidated balance sheets. The Company recorded a nominal gain for the year ended December 31, 2018 and 2017. The Company determined the fair value using the Black-Scholes option pricing model with the following assumptions: December 31, 2018 2017 Dividend rate — — Risk-free rate 2.5 % 2.0 % Expected life (years) 1.7 2.7 Expected volatility 18.6 % 21.9 % The changes on the value of the warrant liability during the years ended December 31, 2018 and 2017 were as follows (in thousands): Fair value – December 31, 2016 $ 189 Issuances — Change in fair value (98 ) Fair value – December 31, 2017 91 Issuances — Changes in fair value (78 ) Fair value – December 31, 2018 $ 13

Commitments and Contingencies

Commitments and Contingencies	12 Months Ended
	Dec. 31, 2018
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Note 7. Commitments and Contingencies Lease Obligations The Company’s corporate headquarters is in Dallas, Texas, where it leases approximately 2,400 square feet. Total rent expense recognized under the lease was $55,000 and $57,000 for the years ended December 31, 2018 and 2017, respectively. The office lease expires in May 2020. Future minimum rent is as follows (in thousands): 2019 $ 60 2020 26 2021 — Total future minimum rent with non-cancellable terms of one year or more $ 86 Other Contractual Obligations As of December 31, 2018, the Company had an unfunded commitments of $5.8 million on three loans (please refer to Off-Balance Sheet Arrangements The unfunded commitment is contingent upon a borrower reaching an established revenue threshold or other performance metrics on or before a specified date or period of time per the terms of the credit agreement, and is only subject to being advanced as long as an event of default does not exist. Litigation The Company is involved in, or has been involved in, arbitrations or various other legal proceedings that arise from the normal course of its business. The ultimate outcome of any litigation is uncertain, and either unfavorable or favorable outcomes could have a material negative impact on the Company’s results of operations, balance sheets and cash flows due to defense costs, and divert management resources. The Company cannot predict the timing or outcome of these claims and other proceedings. As of December 31, 2018, the Company is not involved in any arbitration and/or other legal proceeding that it expects to have a material effect on its business, financial condition, results of operations and cash flows. Indemnification As permitted by Delaware law, the Company has agreements whereby it indemnifies its officers and directors for certain events or occurrences while the officer or director is, or was, serving in such capacity, or in other capacities at the Company’s request. The term of the indemnification period is for the officer’s or director’s lifetime. The maximum potential amount of future payments the Company could be required to make under these indemnification agreements is unlimited; however, the Company has a director and officer insurance policy that limits its exposure and enables the Company to recover a portion of any such amounts. As a result of the Company’s insurance policy coverage, the Company believes the estimated fair value of these indemnification agreements is insignificant. Accordingly, the Company had no liabilities recorded for these agreements as of December 31, 2018 and 2017.

Stockholders' Equity

Stockholders' Equity	12 Months Ended
	Dec. 31, 2018
Stockholders' Equity Note [Abstract]
Stockholders' Equity	Note 8. Stockholders’ Equity Common Stock The total number of shares of common stock, $0.001 par value, that the Company is authorized to issue is 250,000,000. On December 21, 2018, the Board of Directors of the Company authorized a stock repurchase program, which is more fully described in Part II, Item 5 under Issuer Purchases of Equity Securities Preferred Stock The Company’s board of directors (the “Board”) may, without further action by the stockholders, issue one or more series of preferred stock and fix the rights and preferences of those shares, including the dividend rights, dividend rates, conversion rights, exchange rights, voting rights, terms of redemption, redemption price or prices, liquidation preferences, the number of shares constituting any series and the designation of such series. As of December 31, 2018, no shares of preferred stock have been issued. Stock Compensation Plans 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 Board and have a term not greater than 10 years from the date of grant. The Company’s Chief Executive Officer, (“CEO”) received a grant of options to acquire up to 75,000 shares of the Company’s common stock, effective as of January 28, 2019. The options have a per-share exercise price of $12.50. The options are subject to vesting in equal annual installments over a three-year period based on the CEO’s continued employment with the Company. The options are subject to accelerated vesting upon a termination of the CEO’s employment if the CEO’s employment is terminated by the CEO for “Good Reason” as defined in the CEO’s employment agreement effective as of January 1, 2019. Furthermore, the 2012 and 2014 options received by the CEO were amended to extend the expiration dates to December 31, 2021. The options are forfeited and of no force and effect to the extent the options have not vested or become exercisable on or before December 31, 2021. The CEO also received a restricted stock award of 37,500 shares of restricted stock, subject to terms and conditions of the award agreement and the 2010 Stock Incentive Plan. The restricted stock is subject to vesting in equal annual installments over a three-year period but only to the extent the CEO is employed by or performing services for the Company. However, the restricted stock shall vest upon the CEO’s death, “Disability” and “Good Reason,” as defined in the Employment Agreement between the Company and the CEO effective January 1, 2019. The following table summarizes activities under the 2010 Stock Incentive Plan for the indicated periods: Options Outstanding Number of Weighted Weighted Aggregate Balances, December 31, 2016 190,000 $ 11.25 6.9 $ 169.4 Options canceled and retired — Options exercised — Options granted — Balances, December 31, 2017 190,000 11.25 5.9 214.4 Options canceled and retired — Options exercised — Options granted — Balances, December 31, 2018 190,000 11.25 4.9 90.0 Options vested and exercisable and expected to be vested and exercisable at December 31, 2018 190,000 $ 11.25 4.9 90.0 Options vested and exercisable at December 31, 2018 76,250 $ 11.97 4.9 86.3 At December 31, 2018, there were 0.3 million shares reserved for issuance under the 2010 Stock Incentive Plan, and the Company had $25,000 of total unrecognized stock option expense, net of estimated forfeitures, which will be recognized over the weighted average remaining period of 0.5 years. The following table summarizes significant ranges of outstanding and exercisable options as of December 31, 2018: Exercise Prices Number Outstanding Weighted Average Remaining Contractual Life (in Years) Weighted Average Exercise Price Per Share Number Exercisable Weighted Average Exercise Price Per Share $ 8.30 75,000 3.4 $ 8.30 18,750 $ 8.30 9.61 15,000 7.5 9.61 7,500 9.61 13.70 100,000 5.6 13.70 50,000 13.70 Total 190,000 4.9 11.25 76,250 11.97 Employee stock-based compensation expense recognized for time-vesting options for the years ended December 31, 2018 and 2017, 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 plan. 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. During the year ended December 31, 2017, 112,500 shares of restricted stock were forfeited back to the Company. During the years ended December 31, 2018 and 2017, no restricted shares were granted, or vested. As of December 31, 2018, there are no shares of restricted stock outstanding, and the Company did not recognize any expense related to restricted stock for the years ended December 31, 2018 and 2017. In October 2015, the Board approved a change in the compensation plan for non-employee directors such that each non-employee director shall receive an annual cash retainer of $45,000 and an annual grant of 1,000 shares of the Company’s common stock, both payable quarterly in arrears. In addition, each member of (i) the Audit Committee shall receive an additional fee of $10,000 payable quarterly in arrears; (ii) the Compensation Committee shall receive an additional fee of $1,000 payable quarterly in arrears and (iii) the Governance Committee shall receive an additional fee of $2,000 payable quarterly in arrears. Each non-employee director has the option to elect to receive up to 100 percent of the annual cash retainer in shares of the Company’s common stock. During the years ended December 31, 2018 and 2017, the Board approved compensation for Board services by granting 20,318 and 21,630 shares, respectively, of common stock as compensation for the non-employee directors. During each of the years ended December 31, 2018 and 2017, the Company recorded approximately $0.2 million in Board compensation expense. The aggregate stock-based compensation expense, including the quarterly Board grants, recognized by the Company for both years ended December 31, 2018 and 2017 was $0.3 million.

Fair Value Measurements

Fair Value Measurements	12 Months Ended
	Dec. 31, 2018
Fair Value Disclosures [Abstract]
Fair Value Measurements	Note 9. 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 years ended December 31, 2018 and 2017. 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 its equity method investments included in the consolidated balance sheets as of December 31, 2018 and 2017. 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. Cash and cash equivalents The carrying amounts reported in the balance sheet for cash and cash equivalents approximate those assets’ fair values. Securities available for sale Certain common equity securities are reported at fair value utilizing Level 1 inputs (exchange quoted prices). 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 Derivative Securities Marketable Investments 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. Available-for-sale securities are measured at fair value on a recurring basis, while securities with no readily available fair market value are not, but estimates of fair value are reflected below. 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 December 31, 2018 (in thousands): Total Quoted Prices Significant Significant Financial Assets: Warrant assets $ 2,777 $ — $ — $ 2,777 Marketable investments 532 — — 532 Financial Liabilities: Warrant liability $ 13 $ — $ — $ 13 The following table presents financial assets and liabilities measured at fair value on a recurring basis as of December 31, 2017 (in thousands): Total Quoted Prices Significant Significant Financial Assets: Warrant assets $ 987 $ — $ — $ 987 Marketable investments 1,856 1,256 — 600 Financial Liabilities: Warrant liability $ 91 $ — $ — $ 91 The changes on the value of the warrant assets during the years ended December 31, 2018 and 2017 were as follows (in thousands): Fair value – December 31, 2016 $ 1,013 Issuance 1,392 Canceled (205 ) Change in fair value (1,213 ) Fair value – December 31, 2017 987 Issuance 1,490 Canceled (105 ) Change in fair value 405 Fair value – December 31, 2018 $ 2,777 The Company holds warrants issued to the Company in conjunction with certain term loan investments. These warrants meet the definition of a derivative and are included in the consolidated balance sheet. The fair values for warrants outstanding, that have a readily determinable value, are measured using the Black-Scholes option pricing model. The following range of assumptions were used in the models to determine fair value: December 31, 2018 2017 Dividend rate — — Risk-free rate 2.5% to 2.6% 2.0% to 2.3% Expected life (years) 4.8 to 7.9 2.6 to 6.6 Expected volatility 67.6% to 101.8% 72.5% to 95.7% The following table presents financial assets measured at fair value on a nonrecurring basis as of December 31, 2018 and 2017 (in thousands): Total Quoted Prices Significant Significant December 31, 2018 Impaired loans $ 8,227 $ — $ — $ 8,227 December 31, 2017 Impaired loans $ 6,087 $ — $ — $ 6,087 Please refer to Note 2 for further information on impaired loans. There were no remeasured liabilities at fair value on a non-recurring basis during the year ended December 31, 2018 or 2017. The following information 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 unconsolidated entity. For the year ended December 31, 2018 (in thousands): Carry Value Fair Value Level 1 Level 2 Level 3 Financial Assets Cash and cash equivalents $ 20,227 $ 20,227 $ 20,227 $ — $ — Finance receivables 166,610 166,610 — — 166,610 Marketable investments 532 532 — — 532 Warrant assets 2,777 2,777 — — 2,777 Financial Liabilities Warrant liability $ 13 $ 13 $ — $ — $ 13 For the year ended December 31, 2017 (in thousands): Carry Value Fair Value Level 1 Level 2 Level 3 Financial Assets Cash and cash equivalents $ 30,557 $ 30,557 $ 30,557 $ — $ — Finance receivables 151,995 151,995 — — 151,995 Marketable investments 1,856 1,856 1,256 — 600 Warrant assets 987 987 — — 987 Financial Liabilities Warrant liability $ 91 $ 91 $ — $ — $ 91

Income Taxes

Income Taxes	12 Months Ended
	Dec. 31, 2018
Income Tax Disclosure [Abstract]
Income Taxes	Note 10. Income Taxes The components of income before income tax provision are as follows (in thousands): December 31, 2018 2017 U.S. $ 6,237 $ 24,004 During the years ended December 31, 2018 and 2017, the Company’s provision for (benefit from) income taxes was as follows (in thousands): December 31, 2018 2017 Current provision $ 11 $ 8 Deferred provision 31 15,745 Total provision for income taxes $ 42 $ 15,753 The components of the income tax provision (benefit) are as follows (in thousands): December 31, 2018 2017 Federal tax provision at statutory rate $ 1,312 $ 8,402 Change in valuation allowance (1,137 ) (46,498 ) Change in statutory rate — 55,857 Other (167 ) (187 ) Write off of expired deferred tax assets 1 — Provision related to non-controlling interest 33 (1,821 ) Total provision for income taxes $ 42 $ 15,753 The Company records deferred tax assets if the realization of such assets is more likely than not to occur in accordance with accounting standards that address income taxes. Significant management judgment is required in determining whether a valuation allowance against the Company’s deferred tax assets is required. The Company has considered all available evidence, both positive and negative, such as historical levels of income and predictability of future forecasts of taxable income from existing investments, in determining whether a valuation allowance is required. The Company is also required to forecast future taxable income in accordance with accounting standards that address income taxes to assess the appropriateness of a valuation allowance, which further requires the exercise of significant management judgment. The Company focuses on forecasting future taxable income for the investment portfolio that exists as of the balance sheet date. Specifically, the Company evaluated the following criteria when considering a valuation allowance: • the history of tax net operating losses in recent years; • predictability of operating results; • profitability for a sustained period of time; and • level of profitability on a quarterly basis. As of December 31, 2018, the Company had cumulative net income before tax for the three years then ended. Based on its historical operating performance, the Company has concluded that it was more likely than not that the Company would not be able to realize the full benefit of the U.S. federal and state deferred tax assets in the future. However, the Company has concluded that it is more likely than not that the Company will be able to realize approximately $22.7 million benefit of the U.S. federal and state deferred tax assets in the future. On December 22, 2017, the TCJA was signed into law. The new legislation decreases the U.S. corporate federal income tax rate from 35 percent to 21 percent, effective January 1, 2018. The Company revalued its deferred tax assets and liabilities accordingly. There was no net impact on recorded deferred tax balances, as the remeasurement of net deferred tax assets was offset by a change in valuation allowance. The TCJA also includes a number of other provisions, including the elimination of loss carrybacks and limitations on the use of future losses, and repeal of the Alternative Minimum Tax regime. These provisions are not expected to have an immediate effect on the Company. 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 consolidated statements of income for the period that the adjustment is determined to be required. The valuation allowance against deferred tax assets was $62.6 million and $63.7 million as of December 31, 2018 and 2017, respectively. Deferred tax assets consist of the following (in thousands): December 31, 2018 2017 Deferred tax assets: Credit carryforward $ 2,660 $ 2,660 Stock based compensation 313 300 Other 3,043 4,596 Net operating losses 79,250 78,889 Gross deferred tax assets 85,266 86,445 Valuation allowance (62,582 ) (63,720 ) Net deferred tax assets $ 22,684 $ 22,725 The Tax Reform Act of 1986 limits the use of NOLs 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. The Company is making an election to early adopt ASU 2015-17 to classify all deferred tax assets and liabilities, along with any related valuation allowance, as noncurrent on the balance sheet. 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 $1.9 million. 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 December 31, 2018, the Company had NOL carryforwards for federal income tax purposes of approximately $377.4 million. The federal NOL carryforwards, if not offset against future income, will expire by 2032, with the majority of such NOLs expiring by 2021. The Company also had federal research carryforwards of $2.7 million. The federal credits will expire by 2029. The Company records liabilities, where appropriate, for all uncertain income tax positions. The Company recognizes potential accrued interest and penalties related to unrecognized tax benefits within operations as income tax expense. The adoption of these provisions did not have an impact on the Company’s consolidated financial condition, results of operations or cash flows. At December 31, 2018, the Company did not have any unrecognized tax benefits. The Company is subject to taxation in the U.S. and various state jurisdictions. The Company is currently open to audit under the statute of limitations by the Internal Revenue Service for the years ending December 31, 1998 through December 31, 2018, due to carryforward of unutilized net operating losses and research and development credits. The Company does not anticipate significant changes to its uncertain tax positions through December 31, 2018.

Subsequent Events

Subsequent Events	12 Months Ended
	Dec. 31, 2018
Subsequent Events [Abstract]
Subsequent Events	Note 11. Subsequent Events Aimmune Therapeutics, Inc. On February 5, 2019, SWK Funding entered into a limited partnership agreement with KKR Peanut Co-Invest GP LLC (“KKR”) pursuant to which SWK Funding made a commitment for an indirect investment of $5.0 million, or a 2.9 percent interest, in the first lien senior secured term loan of up to $170.0 million made to Aimmune Therapeutics, Inc. (“Aimmune”). SWK Funding provided $1.2 million of the $40.0 million advanced to Aimmune at closing. Aimmune must draw an additional $85.0 million if certain conditions are fulfilled on or prior to December 31, 2020 and may draw an additional $45.0 million if certain conditions are fulfilled on or prior to July 31, 2020. The loan bears interest at the greater of (a) one month LIBOR and (b) 1.00 percent plus a margin of 7.50 percent, payable quarterly in arrears, beginning on March 31, 2019. For the first six interest payment dates, Aimmune has the option to elect whether interest payments due will be paid in cash or paid in kind and capitalized. The loan matures on January 3, 2025. Fifty percent of the outstanding principal balance is scheduled to amortize on December 31, 2023, with the remaining 50 percent to be paid in equal installments through maturity. Cheetah Medical, Inc. On January 15, 2019, SWK Funding entered into a credit agreement pursuant to which it provided to Cheetah Medical, Inc. (“Cheetah”) a term loan in the principal amount of $20.0 million. The loan matures on January 15, 2024. SWK Funding provided $18.0 million at closing. Cheetah drew down the additional $2.0 million in February 2019, as the subsequent term loan condition outlined in the credit agreement was met. The loan bears interest at the greater of (a) three month LIBOR, subject to a maximum of 4.25 percent, and (b) 2.25 percent plus a margin of 8.5 percent, payable in cash quarterly in arrears, beginning on February 15, 2019. SWK Funding syndicated $10.0 million of the loan to an unaffiliated investor in February 2019. EyePoint Pharmaceuticals, Inc. On February 13, 2019, EyePoint Pharmaceuticals, Inc. repaid its term loan with SWK Funding. SWK Funding received approximately $23.4 million at pay-off, which included accrued interest, prepaymet penalty, and exit fees.

SWK Holdings Corporation and _2

SWK Holdings Corporation and Summary of Significant Accounting Policies (Policies)	12 Months Ended
	Dec. 31, 2018
Accounting Policies [Abstract]
Nature of Operations	Nature of Operations SWK Holdings Corporation (the “Company”) was incorporated in July 1996 in California and reincorporated in Delaware in September 1999. In July 2012, the Company commenced its strategy of building a specialty finance and asset management business. The Company’s strategy is to be a leading healthcare capital provider by offering sophisticated, customized financing solutions to a broad range of life science companies, institutions and inventors. The Company is primarily 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 has been deploying its assets to earn interest, fees, 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, through the Company’s wholly-owned subsidiary, SWK Advisors LLC, the Company provides non-discretionary investment advisory services to institutional clients in separately managed accounts to similarly invest in life science finance. SWK Advisors LLC is registered as an investment advisor with the Texas State Securities Board. The Company intends to fund transactions through its own working capital, and its revolving credit facility, as well as by building its asset management business by raising additional third-party capital to be invested alongside the Company’s capital. The Company fills a niche that it believes is underserved in the sub-$50 million transaction size. Since many of its competitors that provide longer term, non-traditional debt and/or royalty-related financing options have much greater financial resources than the Company, they tend to not focus on transaction sizes below $50 million as it is generally inefficient for them to do so. In addition, the Company does not believe that a sufficient number of other companies offer similar types of long-term financing options to fill the demand of the sub-$50 million market. As such, the Company believes it faces less competition from such investors in transactions that are less than $50 million. The Company has net operating loss carryforwards (“NOLs”) and believes that the ability to utilize these NOLs is an important and substantial asset. However, at this time, under current law, we do not anticipate that our life science business strategy will generate sufficient income to permit us to utilize all of our NOLs prior to their respective expiration dates. As such, it is possible that we might pursue additional strategies that we believe might result in our ability to utilize more of our NOLs. As of March 22, 2019, the Company and its partners have executed transactions with 34 different parties under its specialty finance strategy, funding an aggregate $504 million in various financial products across the life science sector. The Company’s portfolio includes senior and subordinated debt backed by royalties and synthetic royalties paid by companies in the life science sector, and purchased royalties generated by sales of life science products and related intellectual property. The Company is headquartered in Dallas, Texas.
Basis of Presentation and Principles of Consolidation	Basis of Presentation and Principles of Consolidation The Company’s consolidated financial statements are prepared in accordance with accounting principles generally accepted in the U.S. (“GAAP”). The 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 may be less than 50 percent, the related governing agreements provide the Company with broad powers, and the other parties do not participate in the management of the entities and do not effectively have the ability to remove the Company. The Company has reviewed each of the underlying agreements to determine if it has effective control. If circumstances change and it is determined this control does not exist, any such investment would be recorded using the equity method of accounting. Although this would change individual line items within the Company’s consolidated financial statements, it would have no effect on its operations and/or total stockholders’ equity attributable to the Company.
Variable Interest Entity	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 5 of the Notes to the Consolidated Financial Statements for further discussion of VIEs.
Use of Estimates	Use of Estimates The preparation of the Company’s 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 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, 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’s 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 changes to those estimates and assumptions. Market conditions, such as illiquid credit markets, volatile equity markets, and economic downturns, 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 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	Equity Method Investment 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 partner company depends on an evaluation of several factors including, among others, representation of the Company on the partner company’s board of directors and the Company’s ownership level. Under the equity method of accounting, the Company does not reflect a partner company’s financial statements within the Company’s consolidated financial statements; however, the Company’s share of the income or loss of such partner company is reflected in the consolidated statements of income. The Company includes the carrying value of equity method partner companies as part of the investment in unconsolidated entities on the consolidated balance sheets. When the Company’s carrying value in an equity method partner company is reduced to zero, the Company records no further losses in its consolidated statements of income unless the Company has an outstanding guarantee obligation or has committed additional funding to such equity method partner company. When such equity method partner 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 Receivable	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 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 an impairment when the carrying amount exceeds fair value and the difference relates to credit quality. Otherwise the write-down is recorded as a reduction in finance receivable interest 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 finance receivable interest 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 interest income over the life of the loan using the effective interest method. The Company accounts for its finance receivables at amortized cost, net of unamortized origination fees, if any. Related fees and costs are recorded net of any amounts reimbursed, and interest is accreted or accrued to interest revenue using the effective interest method. When and if supplemental payments are received from these long-term receivables, an adjustment to the estimated effective interest rate is affected prospectively. The Company evaluates the collectability of both interest and principal for each loan to determine whether it is impaired. A loan is considered to be impaired when, based on current information and events, the Company determines it is probable that it will be unable to collect amounts due according to the existing contractual terms. When a loan is considered to be impaired, the amount of loss is calculated by comparing the carrying value of the financial asset to the value determined by discounting the expected future cash flows at the loan’s effective interest rate or to the estimated fair value of the underlying collateral, less costs to sell, if the loan is collateralized and the Company expects repayment to be provided solely by the collateral. Impairment assessments require significant judgments and are based on significant assumptions related to the borrower’s credit risk, financial performance, expected sales, and estimated fair value of the collateral.
Allowance for Credit Losses on Finance Receivables	Allowance for Credit Losses on Finance Receivables The allowance for credit losses is intended to provide for credit losses inherent in the financing receivables portfolio and is periodically reviewed for adequacy considering credit quality indicators, including expected and historical losses and levels of and trends in past due loans, non-performing assets and impaired loans, collateral values and economic conditions. The allowance for credit losses is determined based on specific allowances for loans that are impaired, based upon the value of underlying collateral or projected cash flows. Changes to the allowance for credit losses are recorded in the provision for loan credit losses in the consolidated statement of income.
Marketable Investments	Marketable Investments The Company’s marketable investment portfolio includes a debt security as of December 31, 2018. The debt security is classified as an available-for-sale security, which is reported at fair value with unrealized gains or losses recorded in statements of income, net of applicable income taxes. 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	Derivatives All derivatives held by the Company are recognized in the 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 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 consolidated statements of income, or recorded in other comprehensive income. The Company had no derivatives designated as hedges as of December 31, 2018 and 2017. The Company holds warrants issued to the Company in conjunction with term loan investments discussed in Note 2. These warrants meet the definition of a derivative and are included in warrant assets in the consolidated balance sheets. The Company issued a warrant on its own common stock as discussed in Note 6. This warrant meets the definition of a derivative and is reflected as a warrant liability at fair value in the consolidated balance sheets.
Revenue Recognition	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 when clients invest in our recommended transactions 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 service revenues are recognized when contractual obligations are fulfilled or as services are provided.
Cash and Cash Equivalents	Cash and Cash Equivalents The Company considers all highly liquid investments with an original maturity date of three months or less at the date of purchase to be cash equivalents. There were no such investments at December 31, 2018 or 2017, as all of our cash was held in checking or savings accounts. As of December 31, 2018, cash equivalents were deposited in financial institutions and consisted of immediately available fund balances. The Company maintains its cash deposits and cash equivalents with well-known and stable financial institutions.
Interest and Accounts Receivable	Interest and Accounts Receivable The Company records interest receivable on an accrual basis and recognizes it as earned in accordance with the contractual terms of the loan agreement, to the extent that such amounts are expected to be collected. When management does not expect that principal, interest, and other obligations due will be collected in full, the Company will generally place the loan on nonaccrual status and cease recognizing interest income on that loan until all principal and interest due has been paid or the Company believes the portfolio company has demonstrated the ability to repay the Company’s current and future contractual obligations. Any uncollected interest related to prior periods is reversed from income in the period that collection of the interest receivable is determined to be doubtful. However, the Company may make exceptions to this policy if the investment has sufficient collateral value and is in the process of collection. The Company recognized $6.2 million in provision for loan credit losses during 2018 but did not recognize any provision for loan credit losses during 2017. Accounts receivable for management fees are recorded at the aggregate unpaid amount less any allowance for doubtful accounts. The Company determines an account receivable’s delinquency status based on its contractual terms. Interest is not charged on outstanding balances. Accounts are written-off only when all methods of recovery have been exhausted. As of December 31, 2018 and 2017, the allowance for doubtful accounts was zero.
Certain Risks and Concentrations	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 partner companies and generally requires collateral. For the year ended December 31, 2018, one partner company accounted for 10 percent of total revenue. For the year ended December 31, 2017, two partner companies accounted for 51 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.
Segment Reporting	Segment Reporting The Company operates in one operating segment with a single management team that reports to the chief executive officer, who is its chief operating decision maker. Accordingly, the Company does not prepare discrete financial information with respect to separate product lines and does not have separately reportable segments.
Stock-based Compensation	Stock-based Compensation All employee and director stock-based compensation is measured at the grant date, based on the estimated fair value of the award, and is recognized as an expense over the requisite service period. Stock-based compensation expense is reduced for estimated future forfeitures. These estimates are revised in future periods if actual forfeitures differ from the estimates. Changes in forfeiture estimates impact compensation expense in the period in which the change in estimate occurs. For restricted stock, the Company recognizes compensation expense in accordance with the fair value of the Company’s stock as determined on the grant date, amortized over the applicable service period. When vesting of awards is based wholly or in part upon the future performance of the stock price, such terms result in adjustments to the grant date fair value of the award and the derivation of a service period. If service is provided over the derived service period, the adjusted fair value of the awards will be recognized as compensation expense, regardless of whether or not the awards vest.
Non-controlling Interests	Non-controlling Interests Non-controlling interests represent third-party equity ownership in certain of the Company’s consolidated subsidiaries, VIEs or investments and are presented as a component of equity. See Notes 5 and Note 8 of the Notes to the Consolidated Financial Statements for further discussion of non-controlling interests.
Income Taxes	Income Taxes Deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. A valuation allowance is recorded to reduce deferred tax assets to an amount where realization is more likely than not. If the Company ultimately determines that the payment of such a liability is not necessary, then the Company reverses the liability and recognizes a tax benefit during the period in which the determination is made that the liability is no longer necessary. The Company recognizes accrued interest and penalties related to unrecognized tax benefits as a component of income tax benefit in the statements of income. On December 22, 2017, the U.S. government enacted comprehensive tax legislation commonly referred to as the Tax Cuts and Jobs Act (“TCJA”). The TCJA makes broad and complex changes to the U.S. tax code. On the same date, the SEC staff issued Staff Accounting Bulletin (“SAB”) 118, which provides guidance on accounting for the tax effects of the TCJA. It provides a “measurement period” lasting through December 22, 2018 to allow registrants time to obtain, prepare and analyze information to complete the accounting required under ASC 740, Income Taxes. The Company completed its analysis during the measurement period, and there were no measurement period adjustments recognized during 2018. Please refer to Note 10 of the Notes to the Consolidated Financial Statements.
Comprehensive Income (Loss)	Comprehensive Income Comprehensive income and its components attributable to the Company and non-controlling interests have been reported, net of tax, in the consolidated statements of stockholders’ equity and the consolidated statements of comprehensive income.
Net Income (Loss) per Share	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): Year Ended 2018 2017 Numerator: Net income attributable to SWK Holdings Corporation stockholders $ 6,195 $ 3,047 Denominator: Weighted-average shares outstanding 13,051 13,036 Effect of dilutive securities 3 4 Weighted-average diluted shares 13,054 13,040 Basic net income per share $ 0.47 $ 0.23 Diluted net income per share $ 0.47 $ 0.23 As of December 31, 2018 and 2017, outstanding stock options and warrants to purchase shares of common stock in an aggregate of approximately 271,000 and 287,000 shares, respectively, have been excluded from the calculation of diluted net income per share as these securities were anti-dilutive.
Recent Accounting Pronouncements	Recent Accounting Pronouncements In August 2018, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2018-13, “Fair Value Measurement (Topic 820) - Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement.” ASU 2018-13 updates the fair value measurement disclosure requirements by (i) eliminating certain requirements, including disclosure of the amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy, the policy for timing of transfers between levels and the valuation processes for Level 3 fair value measurements, (ii) modifying certain requirements, including clarifying that the measurement uncertainty disclosure is to communicate information about the uncertainty in measurement as of the reporting date and (iii) adding certain requirements, including disclosure of the changes in unrealized gains and losses for the period included in other comprehensive income for recurring Level 3 fair value measurements held at the end of the reporting period and the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements. ASU 2018-13 is effective for fiscal years and interim periods within those years beginning after December 15, 2019, with early adoption permitted for any eliminated or modified disclosures. The Company is currently evaluating the new guidance but believes it will not have a material impact on its consolidated financial statements, as the Company has had no historical transfers between hierarchies and assets currently measured under the Level 3 fair value hierarchy is minimal. In June 2016, the FASB issued ASU No. 2016-13, “Financial Instruments - Credit Losses (Topic 326).” The new standard adds an impairment model, known as the current expected credit loss (“CECL”) model, that is based on expected losses rather than incurred losses. Under the new guidance, an entity recognizes as an allowance its estimate of expected credit losses, which the FASB believes will result in more timely recognition of losses. The ASU describes the impairment allowance as a valuation account that is deducted from the amortized cost basis of the financial asset(s) to present the net carrying value at the amount expected to be collected on the financial asset. Credit losses relating to available-for-sale debt securities should be measured in a manner similar to current GAAP; however, the amendments in this update require that credit losses be presented as an allowance rather than as a write-down, which will allow an entity the ability to record reversals of credit losses in current period net income. The amendments in this update are effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. An entity will apply the amendments in this update through a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective (that is, a modified-retrospective approach). A prospective transition approach is required for debt securities for which an other-than-temporary impairment has been recognized before the effective date. The Company is currently evaluating the new guidance but believes it is likely to incur more upfront losses on its portfolio under the new CECL model.

SWK Holdings Corporation and _3

SWK Holdings Corporation and Summary of Significant Accounting Policies (Tables)	12 Months Ended
	Dec. 31, 2018
Swk Holdings Corporation And Summary Of Significant Accounting Policies
Schedule of earnings per share, basic and diluted	The following table shows the computation of basic and diluted earnings per share for the following (in thousands, except per share amounts): Year Ended 2018 2017 Numerator: Net income attributable to SWK Holdings Corporation stockholders $ 6,195 $ 3,047 Denominator: Weighted-average shares outstanding 13,051 13,036 Effect of dilutive securities 3 4 Weighted-average diluted shares 13,054 13,040 Basic net income per share $ 0.47 $ 0.23 Diluted net income per share $ 0.47 $ 0.23

Finance Receivables (Tables)

Finance Receivables (Tables)	12 Months Ended
	Dec. 31, 2018
Receivables [Abstract]
Schedule of carrying value of finance receivables	The carrying value of finance receivables are as follows (in thousands): As of December 31, Portfolio 2018 2017 Term Loans $ 136,379 $ 118,533 Royalty Purchases 36,410 35,121 Total before allowance for credit losses 172,789 153,654 Allowance for credit losses (6,179 ) (1,659 ) Total carrying value $ 166,610 $ 151,995
Schedule of analysis of nonaccrual and performing loans by portfolio segment	The following table presents nonaccrual and performing loans by portfolio segment (in thousands): December 31, 2018 December 31, 2017 Nonaccrual Performing Total Nonaccrual Performing Total Term Loans $ 8,337 $ 128,042 $ 136,379 $ 11,402 $ 107,131 $ 118,533 Royalty Purchases 5,784 24,447 30,231 — 33,462 33,462 Total carrying value $ 14,121 $ 152,489 $ 166,610 $ 11,402 $ 140,593 $ 151,995

Marketable Investments (Tables)

Marketable Investments (Tables)	12 Months Ended
	Dec. 31, 2018
Investments, Debt and Equity Securities [Abstract]
Schedule of marketable investments	Investment in marketable securities at December 31, 2018 and 2017 consist of the following (in thousands): Year Ended 2018 2017 Corporate debt securities $ 532 $ 600 Equity securities — 1,256 Total $ 532 $ 1,856
Schedule of available-for-sale securities reconciliation	The amortized cost basis amounts, gross unrealized holding gains, gross unrealized holding losses and fair values of available-for-sale debt securities as of December 31, 2018 and 2017, are as follows (in thousands): December 31, 2018 Amortized Gross Gross Fair Corporate debt securities $ 532 $ — $ — $ 532 December 31, 2017 Amortized Gross Gross Fair Corporate debt securities $ 600 $ — $ — $ 600
Schedule of Proceeds from sales, gross unrealized gains and gross unrealized losses for available-for-sale securities	The following table presents the proceeds from sales and realized net gains and losses on equity securities that were sold during the year ended December 2018 and 2017. The table also includes unrealized net losses on equity securities as prescribed by ASC 321, “Investment - Equity Securities.” ASU 2016-01, “Recognition and Measurement of Financial Assets and Financial Liabilities,” was adopted on January 1, 2018, at which time a cumulative effect adjustment of $213,000 was recorded to reclassify the amount of accumulated unrealized gains related to equity securities from accumulated other comprehensive income to retained earnings (in thousands): December 31, 2018 2017 Proceeds from sale of equity securities 221 345 Gain (loss) on sale (write off) of investments (105 ) 243 Equity investment losses reflected in the Consolidated Statements of Income (1,035 ) —
Schedule of securities in a continuous unrealized loss position aggregated by investment category and length of time	Equity securities with unrealized losses, aggregated by length of time that individual securities have been in a continuous loss position as of December 31, 2017, were as follows (in thousands): December 31, 2017 Less than Twelve Months Twelve Months or Greater Total Fair Unrealized Fair Unrealized Fair Unrealized Equity securities — — 33 (117 ) 33 (117 )

Related Party Transactions (Tab

Related Party Transactions (Tables)	12 Months Ended
	Dec. 31, 2018
Debt Disclosure [Abstract]
Schedule of assumptions used	The Company recorded a nominal loss for the year ended December 31, 2018 and 2017. The Company determined the fair value using the Black-Scholes option pricing model with the following assumptions: December 31, 2018 2017 Dividend rate — — Risk-free rate 2.5 % 2.0 % Expected life (years) 1.7 2.7 Expected volatility 18.6 % 21.9 %
Schedule of value of the warrant liability	The changes on the value of the warrant liability during the years ended December 31, 2018 and 2017 were as follows (in thousands): Fair value – December 31, 2016 $ 189 Issuances — Change in fair value (98 ) Fair value – December 31, 2017 91 Issuances — Changes in fair value (78 ) Fair value – December 31, 2018 $ 13

Commitments and Contingencies (

Commitments and Contingencies (Tables)	12 Months Ended
	Dec. 31, 2018
Commitments and Contingencies Disclosure [Abstract]
Schedule of Future minimum rent of Office	The office lease expires in May 2020. Future minimum rent is as follows (in thousands): 2019 $ 60 2020 26 2021 — Total future minimum rent with non-cancellable terms of one year or more $ 86

Stockholders Equity (Tables)

Stockholders Equity (Tables)	12 Months Ended
	Dec. 31, 2018
Stockholders' Equity Note [Abstract]
Schedule of stock options activity	The following table summarizes activities under the 2010 Stock Incentive Plan for the indicated periods: Options Outstanding Number of Weighted Weighted Aggregate Balances, December 31, 2016 190,000 $ 11.25 6.9 $ 169.4 Options canceled and retired — Options exercised — Options granted — Balances, December 31, 2017 190,000 11.25 5.9 214.4 Options canceled and retired — Options exercised — Options granted — Balances, December 31, 2018 190,000 11.25 4.9 90.0 Options vested and exercisable and expected to be vested and exercisable at December 31, 2018 190,000 $ 11.25 4.9 90.0 Options vested and exercisable at December 31, 2018 76,250 $ 11.97 4.9 86.3
Schedule of stock option plans by exercise price range	The following table summarizes significant ranges of outstanding and exercisable options as of December 31, 2018: Exercise Prices Number Outstanding Weighted Average Remaining Contractual Life (in Years) Weighted Average Exercise Price Per Share Number Exercisable Weighted Average Exercise Price Per Share $ 8.30 75,000 3.4 $ 8.30 18,750 $ 8.30 9.61 15,000 7.5 9.61 7,500 9.61 13.70 100,000 5.6 13.70 50,000 13.70 Total 190,000 4.9 11.25 76,250 11.97

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	12 Months Ended
	Dec. 31, 2018
Fair Value Disclosures [Abstract]
Schedule of fair value assets measured on recurring basis	The following table presents financial assets and liabilities measured at fair value on a recurring basis as of December 31, 2018 (in thousands): Total Quoted Prices Significant Significant Financial Assets: Warrant assets $ 2,777 $ — $ — $ 2,777 Marketable investments 532 — — 532 Financial Liabilities: Warrant liability $ 13 $ — $ — $ 13 The following table presents financial assets and liabilities measured at fair value on a recurring basis as of December 31, 2017 (in thousands): Total Quoted Prices Significant Significant Financial Assets: Warrant assets $ 987 $ — $ — $ 987 Marketable investments 1,856 1,256 — 600 Financial Liabilities: Warrant liability $ 91 $ — $ — $ 91
Schedule of fair value assets measured on recurring basis unobservable input reconciliation	The changes on the value of the warrant assets during the years ended December 31, 2018 and 2017 were as follows (in thousands): Fair value – December 31, 2016 $ 1,013 Issuance 1,392 Canceled (205 ) Change in fair value (1,213 ) Fair value – December 31, 2017 987 Issuance 1,490 Canceled (105 ) Change in fair value 405 Fair value – December 31, 2018 $ 2,777
Schedule of weighted average assumptions	The following range of assumptions were used in the models to determine fair value: December 31, 2018 2017 Dividend rate — — Risk-free rate 2.5% to 2.6% 2.0% to 2.3% Expected life (years) 4.8 to 7.9 2.6 to 6.6 Expected volatility 67.6% to 101.8% 72.5% to 95.7%
Schedule of fair value assets and liabilities measured on nonrecurring basis	The following table presents financial assets measured at fair value on a nonrecurring basis as of December 31, 2018 and 2017 (in thousands): Total Quoted Prices Significant Significant December 31, 2018 Impaired loans $ 8,227 $ — $ — $ 8,227 December 31, 2017 Impaired loans $ 6,087 $ — $ — $ 6,087
Schedule of fair value by balance sheet grouping	The following information 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 unconsolidated entity. For the year ended December 31, 2018 (in thousands): Carry Value Fair Value Level 1 Level 2 Level 3 Financial Assets Cash and cash equivalents $ 20,227 $ 20,227 $ 20,227 $ — $ — Finance receivables 166,610 166,610 — — 166,610 Marketable investments 532 532 — — 532 Warrant assets 2,777 2,777 — — 2,777 Financial Liabilities Warrant liability $ 13 $ 13 $ — $ — $ 13 For the year ended December 31, 2017 (in thousands): Carry Value Fair Value Level 1 Level 2 Level 3 Financial Assets Cash and cash equivalents $ 30,557 $ 30,557 $ 30,557 $ — $ — Finance receivables 151,995 151,995 — — 151,995 Marketable investments 1,856 1,856 1,256 — 600 Warrant assets 987 987 — — 987 Financial Liabilities Warrant liability $ 91 $ 91 $ — $ — $ 91

Income Taxes (Tables)

Income Taxes (Tables)	12 Months Ended
	Dec. 31, 2018
Income Tax Disclosure [Abstract]
Schedule of income before income tax	The components of income before income tax provision are as follows (in thousands): December 31, 2018 2017 U.S. $ 6,237 $ 24,004
Schedule of components of income tax expense (benefit)	During the years ended December 31, 2018 and 2017, the Company’s provision for (benefit from) income taxes was as follows (in thousands): December 31, 2018 2017 Current provision $ 11 $ 8 Deferred provision 31 15,745 Total provision for income taxes $ 42 $ 15,753
Schedule of deferred tax assets and liabilities	The components of the income tax provision (benefit) are as follows (in thousands): December 31, 2018 2017 Federal tax provision at statutory rate $ 1,312 $ 8,402 Change in valuation allowance (1,137 ) (46,498 ) Change in statutory rate — 55,857 Other (167 ) (187 ) Write off of expired deferred tax assets 1 — Provision related to non-controlling interest 33 (1,821 ) Total provision for income taxes $ 42 $ 15,753
Schedule of unrecognized tax benefits	Deferred tax assets consist of the following (in thousands): December 31, 2018 2017 Deferred tax assets: Credit carryforward $ 2,660 $ 2,660 Stock based compensation 313 300 Other 3,043 4,596 Net operating losses 79,250 78,889 Gross deferred tax assets 85,266 86,445 Valuation allowance (62,582 ) (63,720 ) Net deferred tax assets $ 22,684 $ 22,725

SWK Holdings Corporation and _4

SWK Holdings Corporation and Summary of Significant Accounting Policies (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Numerator:
Net income (loss) attributable to SWK Holdings Corporation Stockholders	$ 6,195	$ 3,047
Denominator:
Weighted-average shares outstanding	13,051,000	13,036,000
Effect of dilutive securities	3,000	4,000
Weighted-average diluted shares	13,054,000	13,040,000
Basic income (loss) per share attributable to SWK Holdings Corporation Stockholders	$ 0.47	$ 0.23
Diluted income (loss) per share attributable to SWK Holdings Corporation Stockholders	$ 0.47	$ 0.23
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount (in Shares)	271,000	287,000

Finance Receivables (Details)

Finance Receivables (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Portfolio
Total before allowance for credit losses	$ 172,789	$ 153,654
Allowance for credit losses	(6,179)	(1,659)
Total carrying value	166,610	151,995
Life Science Term Loans [Member]
Portfolio
Total before allowance for credit losses	136,379	118,533
Total carrying value	136,379	118,533
Life Science Royalty Purchases [Member]
Portfolio
Total before allowance for credit losses	36,410	35,121
Total carrying value	$ 30,231	$ 33,462

Finance Receivables (Details 2)

Finance Receivables (Details 2) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Nonaccrual	$ 14,121	$ 11,402
Performing	152,489	140,593
Total	166,610	151,995
Life Science Term Loans [Member]
Nonaccrual	8,337	11,402
Performing	128,042	107,131
Total	136,379	118,533
Life Science Royalty Purchases [Member]
Nonaccrual	5,784
Performing	24,447	33,462
Total	$ 30,231	$ 33,462

Finance Receivables (Details Na

Finance Receivables (Details Narrative) - USD ($) $ in Thousands

Nov. 08, 2018

Oct. 31, 2018

Aug. 08, 2017

Dec. 02, 2015

Oct. 10, 2014

Jul. 31, 2014

Dec. 10, 2013

Jan. 31, 2018

Feb. 28, 2016

Aug. 31, 2018

Dec. 31, 2018

Dec. 31, 2017

Dec. 31, 2018

Jun. 13, 2018

May 12, 2017

Face amount

$ 14,100

$ 11,400

$ 14,100

Number of shares outstanding

0

0

0

Impairment expense

$ 7,875

$ 8,509

B&D Dental [Member]

Face amount

$ 6,000

8,300

$ 8,300

Credit agreement term

5 years

Arrangement fee

$ 60

Advance loan to collateral

700

ABT Molecular Imaging, Inc [Member]

Impairment loss

$ 7,600

Debtor-in-possession financing

$ 0

Asset sale transaction, Approved by Bankruptcy Court, Date

Nov. 8, 2018

ABT Molecular Imaging, Inc [Member] | Maximum [Member]

Debtor-in-possession financing

$ 1,650

ABT Molecular Imaging, Inc [Member] | Second Lien Loan [Member]

Face amount

$ 10,000

Debt instrument maturity date

Oct. 8, 2021

Impairment expense

5,300

ABT Molecular Imaging, Inc [Member] | First Lien Loan [Member]

Face amount

10,100

$ 10,100

Payments to aquire loans receivable

$ 700

Allowance for credit loss

5,000

Hooper Holmes, Inc. (Hooper)

Face amount

$ 6,500

Additional term loan

$ 2,000

Debt instrument maturity date

Feb. 1, 2018

Apr. 30, 2018

Impairment expense

$ 2,500

$ 9,400

Asset purchase agreement

(i) $500,000, paid over ten years in equal quarterly installments, plus (ii) a ten percent royalty on ABT's net sales, including any commercialized improvements made to ABT's technology, paid quarterly for the ten year period from closing pursuant to a royalty security agreement by and between Best and SWK Funding LLC, a wholly-owned subsidiary of the Company ("SWK Funding").

Proceeds from the asset sale

$ 15,600

Cambia [Member]

Acquisation percentage

25.00%

25.00%

Payments to acquire business gross

$ 4,500

$ 4,000

Allowance for credit loss

$ 1,200

Marketable Investments (Details

Marketable Investments (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Investments, Debt and Equity Securities [Abstract]
Corporate debt securities	$ 532	$ 600
Equity securities		1,256
Total	$ 532	$ 1,856

Marketable Investments (Detai_2

Marketable Investments (Details 2) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Available for Sale Securities:
Amortized Cost	$ 532	$ 600
Gross Unrealized Gains
Gross Unrealized Loss
Fair Value	532	600
Proceeds from sale of marketable securities	221	345
Gain (loss) on sale (write off) of investments	(105)	243
Equity investment losses reflected in the Consolidated Statements of Income	(1,035)
Corporate Debt Securities [Member]
Available for Sale Securities:
Amortized Cost	532	600
Gross Unrealized Gains
Gross Unrealized Loss
Fair Value	$ 532	$ 600

Marketable Investments (Detai_3

Marketable Investments (Details 3) - Equity Securities [Member] $ in Thousands	Dec. 31, 2017USD ($)
Available For Sale Securities
Less than 12 Months, Fair Value
Less than 12 Months, Unrealized Losses
Greater than 12 Months, Fair Value	33
Greater than 12 Months, Unrealized Losses	(117)
Total, Fair Value	33
Total, Unrealized Losses	$ (117)

Marketable Investments (Detai_4

Marketable Investments (Details Narrative) - USD ($) $ in Thousands	Nov. 15, 2013	Dec. 31, 2018	Dec. 31, 2017	Jul. 09, 2013
Number of common shares		12,933,674	13,053,422
Gain on sale of marketable securities		$ (105)	$ 243
Fair Value		532	600
Senior notes		532	600
Paid-in-kind interest		$ 191	$ 1,779
Cancer Genetics, Inc [Member]
Number of common shares		0
Number of common shares sold		661,076	75,000
Gain on sale of marketable securities			$ 200
Fair Value			1,200
Agreement To Purchase Senior Secured Notes [Member]
Senior notes				$ 3,000
Paid-in-kind interest	$ 100
Cash collected from debt		$ 69	$ 93
Tribute [Member] | Agreement To Purchase Senior Secured Notes [Member]
Senior notes				$ 100,000

Revolving Credit Facility (Deta

Revolving Credit Facility (Details Narrative) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Disclosure Revolving Credit Facility Details Narrative Abstract
Maximum Revolving Credit Available	$ 20,000
Remaining Revolving Credit	20,000
Interest expense	$ 160

Variable Interest Entities (Det

Variable Interest Entities (Details Narrative) - USD ($) $ in Thousands	1 Months Ended	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2018	Dec. 31, 2017
Income (loss) from equity method investments			$ 10,530
Non-controlling Interests in Consolidated Entities [Member]
Investments in advance to affiliates, subsidiaries, associates, and joint ventures	$ 7,000
SWKHP Holdings [Member]
Income (loss) from equity method investments		$ 5,200
Holmdel Pharmaceuticals LP [Member]
Payments to acquire intangible assets	13,000
SWKHP Holdings LP [Member]
Investments in advance to affiliates, subsidiaries, associates, and joint ventures	13,000
SWKHP Holdings GP [Member]
Investments in advance to affiliates, subsidiaries, associates, and joint ventures	$ 6,000

Related Party Transactions (Det

Related Party Transactions (Details)	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Expected Dividend Rate [Member]
Dividend rate
Loan Credit Agreement [Member] | Expected Dividend Rate [Member]
Dividend rate
Loan Credit Agreement [Member] | Risk Free Interest Rate [Member]
Risk-free rate	2.50%	2.00%
Loan Credit Agreement [Member] | Expected Term [Member]
Expected life (years)	1 year 8 months 12 days	2 years 8 months 12 days
Loan Credit Agreement [Member] | Price Volatility [Member]
Expected volatility	18.60%	21.90%

Related Party Transactions (D_2

Related Party Transactions (Details 2) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Fair value at beginning	$ 91
Fair value at ending	13	$ 91
Warrant Liability [Member]
Fair value at beginning	91	189
Issuances
Changes in fair value	(78)	(98)
Fair value at ending	$ 13	$ 91

Related Party Transactions (D_3

Related Party Transactions (Details Narartive) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Sep. 06, 2013
Warrants and rights outstanding	$ 13	$ 91
Interest expense	$ 160
Delayed Draw [Member]
Number of securities called by warrants or rights (in shares)			100,000
Exercise price of warrants or rights (in dollars per Share)			$ 13.88
Reduction in strike price	$ 13.48

Commitments and Contingencies_2

Commitments and Contingencies (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2018USD ($)ft²	Dec. 31, 2017USD ($)
Commitments and Contingencies Disclosure [Abstract]
2019	$ 60
2020	26
2021
Total future minimum rent with non-cancellable terms of one year or more	$ 86
Area leased for office | ft²	2,400
Office rent	$ 55	$ 57

Stockholders' Equity (Details)

Stockholders' Equity (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward]
Outstanding at beginning	190,000	190,000
Options cancelled and retired
Options exercised
Options granted
Outstanding at ending	190,000	190,000
Options vested and exercisable and expected to be vested and exercisable	190,000
Options vested and exercisable at ending	76,250
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Roll Forward]
Outstanding at beginning	$ 11.25	$ 11.25
Options cancelled and retired
Options exercised
Granted
Outstanding at ending	11.25	$ 11.25
Options vested and exercisable and expected to be vested and exercisable	11.25
Options vested and exercisable at ending	$ 11.97
Share-based Compensation Arrangement by Share-based Payment Award, Options, Weighted-Average Remaining Term [Roll Forward]
Outstanding at beginning	5 years 10 months 24 days	6 years 10 months 24 days
Outstanding at ending	4 years 10 months 24 days	5 years 10 months 24 days
Options vested and exercisable and expected to be vested and exercisable	4 years 10 months 24 days
Options vested and exercisable at ending	4 years 10 months 24 days
Share-based Compensation Arrangement by Share-based Payment Award, Options, Intrinsic value [Roll Forward]
Outstanding at beginning	$ 214	$ 169
Outstanding at ending	90	$ 214
Options vested and exercisable and expected to be vested and exercisable	90
Options vested and exercisable at ending	$ 86

Stockholders' Equity (Details 2

Stockholders' Equity (Details 2) - $ / shares	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Number outstanding (in Shares)	190,000
Weighted average remaining contractual life (In Years)	4 years 10 months 24 days
Weighted average exercise price per share	$ 11.25	$ 11.25	$ 11.25
Number exercisable (in Shares)	76,250
Weighted average exercise price per hare	$ 11.97
Exercise Price $8.30 [Member]
Number outstanding (in Shares)	75,000
Weighted average remaining contractual life (In Years)	3 years 4 months 24 days
Weighted average exercise price per share	$ 8.30
Number exercisable (in Shares)	18,750
Weighted average exercise price per hare	$ 8.30
Exercise Price $9.61 [Member]
Number outstanding (in Shares)	15,000
Weighted average remaining contractual life (In Years)	7 years 6 months
Weighted average exercise price per share	$ 9.61
Number exercisable (in Shares)	7,500
Weighted average exercise price per hare	$ 9.61
Exercise Price $13.70 [Member]
Number outstanding (in Shares)	100,000
Weighted average remaining contractual life (In Years)	5 years 7 months 6 days
Weighted average exercise price per share	$ 13.70
Number exercisable (in Shares)	50,000
Weighted average exercise price per hare	$ 13.70

Stockholders' Equity (Details N

Stockholders' Equity (Details Narrative) - USD ($) $ / shares in Units, $ in Thousands	1 Months Ended	12 Months Ended
	Jan. 28, 2019	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Options granted
Options exercise price, per share
Options surrendered to pay exercise price		76,250
Net issuance of options were surrendered		190,000	190,000	190,000
Compensation for non-employee directors (in shares)		20,318	21,630
Allocated share-based compensation		$ 300	$ 300
Value of compensation for non-employee directors		$ 200	$ 200
Restricted Stock [Member] | Chief Executive Officer [Member] | Subsequent Event [Member]
Options granted	37,500
Stock Incentive Plan [Member] | Chief Executive Officer [Member] | Subsequent Event [Member]
Options granted	75,000
Options exercise price, per share	$ 12.50

Fair Value Measurements (Detail

Fair Value Measurements (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Financial Assets:
Warrant assets	$ 2,777	$ 987
Marketable investments	532	600
Financial Liabilities:
Warrant liability	13	91
Tribute Warrant [Member] | Fair Value, Inputs, Level 1 [Member]
Financial Assets:
Marketable investments		1,256
Tribute Warrant [Member] | Fair Value, Inputs, Level 3 [Member]
Financial Assets:
Warrant assets	2,777	987
Marketable investments	532	600
Financial Liabilities:
Warrant liability	13	91
Warrant Liability [Member]
Financial Liabilities:
Warrant liability	13	91	$ 189
Marketable Securities [Member] | Tribute Warrant [Member]
Financial Assets:
Warrant assets	2,777	987
Marketable investments	532	1,856
Financial Liabilities:
Warrant liability	$ 13	$ 91

Fair Value Measurements (Deta_2

Fair Value Measurements (Details 2) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Fair value - December 31, 2017	$ 987
Fair value - June 30, 2018	2,777	$ 987
Tribute Warrant [Member]
Fair value - December 31, 2017	987	1,013
Issuances	1,490	1,392
Canceled	(105)	(205)
Change in fair value	405	(1,213)
Fair value - June 30, 2018	$ 2,777	$ 987

Fair Value Measurements (Deta_3

Fair Value Measurements (Details 3)	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Expected Dividend Rate [Member]
Dividend rate range
Risk Free Interest Rate [Member] | Minimum [Member]
Risk-free rate range	2.50%	2.00%
Risk Free Interest Rate [Member] | Maximum [Member]
Risk-free rate range	2.60%	2.30%
Expected Term [Member] | Minimum [Member]
Expected life (years) range	4 years 9 months 18 days	2 years 6 months
Expected Term [Member] | Maximum [Member]
Expected life (years) range	7 years 10 months 24 days	6 years 6 months
Price Volatility [Member] | Minimum [Member]
Expected volatility range	67.60%	72.50%
Price Volatility [Member] | Maximum [Member]
Expected volatility range	101.80%	95.70%

Fair Value Measurements (Deta_4

Fair Value Measurements (Details 4) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Financial Assets:
Impaired loans	$ 2,777	$ 987
Fair Value, Inputs, Level 3 [Member]
Financial Assets:
Impaired loans	2,777	987
Tribute Warrant [Member]
Financial Assets:
Impaired loans	2,777	987	$ 1,013
Tribute Warrant [Member] | Fair Value, Inputs, Level 3 [Member]
Financial Assets:
Impaired loans	8,227	6,087
Marketable Securities [Member] | Tribute Warrant [Member]
Financial Assets:
Impaired loans	$ 8,227	$ 6,087

Fair Value Measurements (Deta_5

Fair Value Measurements (Details 5) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Financial Assets
Cash and cash equivalents	$ 20,227	$ 30,557	$ 32,182
Cash and cash equivalents at fair value	20,227	30,557
Finance receivables	166,610	151,995
Finance receivables at fair value	166,610	151,995
Marketable investments	532	1,856
Marketable investments at fair value	532	1,856
Warrant assets	2,777	987
Warrant assets at fair value	2,777	987
Financial Liabilities
Warrant liability	13	91
Gross liability at fair value	13	91
Fair Value, Inputs, Level 1 [Member]
Financial Assets
Cash and cash equivalents at fair value	20,227	30,557
Marketable investments at fair value		1,256
Fair Value, Inputs, Level 3 [Member]
Financial Assets
Finance receivables at fair value	166,610	151,995
Marketable investments at fair value	532	600
Warrant assets at fair value	2,777	987
Financial Liabilities
Gross liability at fair value	$ 13	$ 91

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Income Tax Disclosure [Abstract]
U. S.	$ 6,237	$ 24,004

Income Taxes (Details 2)

Income Taxes (Details 2) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Income Tax Expense (Benefit)
Current benefit	$ 11	$ 8
Deferred provision	31	15,745
Total provision for income taxes	42	15,753
Effective Income Tax Rate Reconciliation, Amount
Federal tax (benefit) at statutory rate	1,312	8,402
Change in valuation allowance	(1,137)	(46,498)
Change in statutory rate		55,857
Other	(167)	(187)
Write off of expired deferred tax assets	1
Provision related to non-controlling interest	33	(1,821)
Total provision for income taxes	$ 42	$ 15,753

Income Taxes (Details 3)

Income Taxes (Details 3) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Deferred tax assets
Credit carryforward	$ 2,660	$ 2,660
Stock based compensation	313	300
Other	3,043	4,596
Net operating losses	79,250	78,889
Gross deferred tax assets	85,266	86,445
Valuation allowance	(62,582)	(63,720)
Net deferred tax assets	$ 22,684	$ 22,725

Income Taxes (Details Narrative

Income Taxes (Details Narrative) $ in Thousands	12 Months Ended
	Dec. 31, 2018USD ($)
Income Tax Disclosure [Abstract]
Net operating loss carryforwards resulting from tax deductions upon the exercise of employee stock options	$ 1,900
Net operating loss carryforwards for federal income tax	377,400
Net operating loss carryforwards for federal research	$ 2,700

Subsequent Events (Details Narr

Subsequent Events (Details Narrative) - USD ($) $ in Thousands	Jan. 15, 2019	Dec. 31, 2018	Dec. 31, 2017
Face amount		$ 14,100	$ 11,400
Cheetah Medical, Inc. [Member] | Subsequent Event [Member]
Face amount	$ 20,000
Debt instrument maturity date	Jan. 15, 2024