Segment Information

3 Months Ended

Mar. 31, 2024

Segment Reporting [Abstract]

Segment Information

Note 9. Segment Information

Selected financial and descriptive information is required to be provided about reportable operating segments, considering a “management approach” concept as the basis for identifying reportable segments. The management approach is based on the way that management organizes the segments within the Company for making operating decisions, allocating resources, and assessing performance. Consequently, the segments are evident from the structure of the Company’s internal organization, focusing on financial information that the Company’s CEO uses to make decisions about the Company’s operating matters.

As described in Note 1, SWK Holdings Corporation and Summary of Significant Accounting Policies, the Company has determined it has two reportable segments: Finance Receivables and Pharmaceutical Development, and each are individually managed and provide separate services. Revenues by segment represent revenues earned on the services offered within each segment. The Company does not report assets by reportable segment, nor does the Company report results by geographic region, as these metrics are not used by the Company’s chief executive officer in assessing performance or allocating resources to the segments.

Segment performance is evaluated based on several factors, including income (loss) from continuing operations before income taxes. Management uses this measure of profit (loss) to evaluate segment performance because the Company believes this measure is indicative of performance trends and the overall earnings potential of each segment. The Company does not report assets by reportable segment, as this metric is not used by the Company’s CEO in assessing performance or allocating resources to the segments.

The following tables present financial information for the Company’s reportable segments for the periods indicated (in thousands):

	Three Months Ended March 31, 2024
	Finance Receivables			Pharmaceutical Development and Other			Holding Company and Other			Consolidated
Revenue	$	11,454		$	279		$	—		$	11,733
Other revenue		46			—			—			46
Provision for credit losses		5,323			—			—			5,323
Interest expense		1,256			—			—			1,256
Manufacturing, research and development		—			530			—			530
Depreciation and amortization expense		—			492			22			514
General and administrative		78			710			1,896			2,684
Other expense, net		(382	)		—			—			(382	)
Income tax expense		—			—			229			229
Net income (loss)		4,461			(1,453	)		(2,147	)		861

	Three Months Ended March 31, 2023
	Finance Receivables			Pharmaceutical Development and Other			Holding Company and Other			Consolidated
Revenue	$	9,260		$	118		$	—		$	9,378
Other revenue		31			—			2			33
Interest expense		182			—			—			182
Manufacturing, research and development		—			719			—			719
Depreciation and amortization expense		—			644			4			648
General and administrative		30			727			1,783			2,540
Other expense, net		(796	)		—			—			(796	)
Income tax benefit		—			—			(109	)		(109	)
Net income (loss)		8,283			(1,972	)		(1,676	)		4,635

Included in Holding Company and Other are the expenses of the parent holding company and certain other enterprise-wide overhead costs, including public company costs and non-Enteris corporate employees, which have been included for purposes of reconciling to the consolidated amounts.