Non-GAAP Reconciliation

The following tables provide a reconciliation of SWK’s GAAP net income to non-GAAP adjusted net income for the last twelve month period ended September 30, 2019 and for the fiscal years ended December 31, 2015 through 2018

 

$ in 000s

LTM

Dec-18

Dec-17

Dec-16

Dec-15

 

 

 

 

 

 

Consolidated net income (loss)

$ 19,643

$ 6,195

$ 8,251

$ 32,041

$ (4,363)

Plus: income tax expense (benefit)

814

42

15,753

(21,638)

3,273

Plus: loss (gain) on fair market value of warrants

1,578

551

1,115

(588)

3,305

Plus: loss (gain) on Fair Market Value of Equity Securities

(565)

- 

-

- 

- 

Plus: loss related to Response Genetics warrants

-

-  

-

-  

(802)

Plus: gain on realized value of warrants

- 

-

-

- 

- 

Plus: warrant-related debt issuance costs

-  

-

-

-

155

Plus: depreciation and amortization

373

17

 

 

 

Adjusted income before provision for income tax

$ 21,843

$ 6,805

$ 25,119

$ 9,815

$ 1,568

Plus: Adjusted provision for income tax

-

-  

-

-

- 

Non-GAAP consolidated net income

$ 21,843

$ 6,805

$ 25,119

$ 9,815

$ 1,568

Less: Non-GAAP adjusted net income attributable to non-controlling interest

-

-

(5,204)

(3,153)

(3,007)

Non-GAAP adjusted net income (loss) attributable to SWK Holdings Corporation Stockholders

 $ 21,843

 $ 6,805

 $ 19,915

 $ 6,662

 $ (1,439)

In the table above, management has deducted the following non-cash items: (i) fair-market value of warrants as mark-to-market changes are non-cash, (ii) income taxes as the Company has substantial net operating losses to offset against future income, and (iii) depreciation and amortization expenses, primarily associated with the Enteris acquisition.