SWKH

• Completed sale of majority royalty assets and majority assets at MOD3 subsidiary during the second quarter, sold at approximately book value. - Returned $49 million of sale proceeds to shareholders via $4 per share dividend and repurchased ~200,000 common stocks, returning additional $3 million year-to-date. - Remaining loan book is healthy; second quarter results are a reasonable proxy for the business's earnings power going forward. - Management and Board focused on realizing value for shareholders through actions year-to-date.

The management believes the second quarter's results are a reasonable proxy for the earnings power of the business going forward. The remaining loan book is healthy and the second quarter's results are seen as a reasonable run rate for the business going forward.

For the second quarter, both non-GAAP adjusted net income and finance segment adjusted non-GAAP net income totaled $4.6 million. Non-GAAP tangible financing book value per share was $18.47, a year-over-year increase of 11.7% after considering the $4 per share special dividend. As of June 30, 2025, SWK had $234 million of gross performing first lien term loans with an effective yield of 14.1%, $5 million of gross nonperforming reorg royalties, $5 million of public equities warrants and approximately 11 private warrants and earnouts (carried at $0 for GAAP purposes), and an $8.8 million general loan loss reserve.

• Regulatory changes risk, including potential impacts from FDA-related changes. - Pricing risk for portfolio companies. - NIA scientific funding cuts affecting some portfolio companies. - Impact of private credit market new entrants leading to lower returns due to increased competition and lower capital deployment returns.

Q: With the MOD3 sale, what about recurring costs remaining on SWK's ledger and SG&A impact?

A: Third quarter will have a transition services agreement running through mid-September with costs reimbursed. All costs of the business went to Aptar close, no ongoing costs at MOD3. Finance segment had $2.3 million of G&A in the quarter, normalized SG&A around $2 million.

Q: Do you see impact of FDA changes on underlying portfolio companies?

A: Near term FDA changes not a big concern as portfolio doesn't have drug/device companies pending approved products. NIA scientific funding cuts have impacted some portfolio companies but not material to ongoing business.

Q: How does private credit market new entrants affect SWK?

A: SWK has been tempered on deployment side, been able to add to existing performing borrowers and made one new loan. Given cost of capital, deployment pace has been measured as money comes in and returns come down in capitalism