Good day. And welcome to SWK Holdings Corporation Fourth Quarter and Full Year 2019 Conference Call. All participants will be in listen-only mode. [Operator Instructions] Please note the event is being recorded. And now I'd like to turn the conference over to Mr. Jason Rando, Tiberend Strategic Advisors. Please go ahead.

Good morning, everyone. And thank you for joining SWK Holdings' fourth quarter and full year 2019 financial results call. Yesterday evening, SWK Holdings issued a press release detailing its financial results for three months and year ended December 31st, 2019. Press release can be found in the Investor Relations section of swkhold.com under news release. Before beginning today's call, I would like to make the following statement regarding forward-looking statements. Today, we will be making certain forward looking statements about future expectation, plan, event, circumstances, including statements about our strategy, interoperation at the development of our consumers through our product candidate. Plans for future potential product candidate, studies and expectations regarding capital allocation cash resource. These statements are based on current expectation and you should not place undue reliance on the statement. Actual result may differ materially due to our risks and uncertainty including those detailed in the risk factors section of SWK Holdings 10-K filed with the SEC and other filings we make with the SEC from time to time. SWK Holdings disclaim any obligation to update information contain in its forward looking statements whether as a result of new information, future events or otherwise. Joining me on today's call is Winston Black, Chairman and CEO of SWK Holdings, who will provide an update on SWK's corporate achievements during the fourth quarter, SWK's fourth quarter and full year 2019 financial results and the status of the company's portfolio. With that I'll turn the call over to Winston. Winston, go ahead.

Thank you, Jason. And thank you everyone for joining our first quarterly conference call as a NASDAQ listed company. We achieve much during 2019 and early 2020 which collectively has positioned the company for what we believe substantial long-term growth. While the acquisition of Enteris BioPharma in August 2019 and the uplisting of our common stock to the NASDAQ Capital Market in January this year are clearly important highlights to the past 12-months. But surrounding those transformative events has been the ongoing strong performance of our core healthcare specialty to life sciences finance business which continues to produce solid returns in 2019. I will discuss each of these initiatives in detail shortly, but I feel I must begin the topic resonate in everyone's minds the current virus outbreak. The coronavirus or Covid-19 is unprecedented global health crisis impacting all aspects of society in business. SWK like all businesses is not immune. We are actively taking measures to mitigate the impact of the situation as much as possible day by day. To ensure the safety and well-being of our employees and their families, we have instituted a company-wide work-from-home policy and halted work-related travel. With the ability to work remotely, SWK believes that its daily operations are largely insulated from the impact. Unquestionably Covid-19 is having a far-reaching effect on the healthcare sector. Everything in hospitals and doctors offices, the companies that provide services, products and medications to patients and medical facilities. We are vigilantly monitoring the situation in a particular the impact on a portfolio companies, the liquidity and contingency plan. Since the outbreak began, we have been in regular contact with the individual management team initially focused on supply chain disruptions and more recently focused on business visibility. Thus far, we believe our portfolio is positioned to weather the…

[Operator Instructions] Our first question comes from [Indiscernible] and company. Please go ahead.

Hi. Good morning, Winston. And thanks for taking my question. Absolutely, so you know to course been a difficult situation out there with Covid-19, so having $30 million cash available could do quite a bit of flexibility right now. And it sounds like there's been minimal disruption in the portfolio which is great. So I know it's a fluid situation but do you anticipate not having to deploy much capital to support your portfolio companies through the situation? There are certainly some opportunistic investments out there at these new levels. I guess just kind of curious how you're thinking about deploying the cash in addition to that buyback.

Sure. Yes. Great question and something that we are looking at my moment of course is as things change. Yes, I think the first thing is it'll be critical to make sure that we are there to support the portfolio to the extent that company is needed. Yes, but we have, yes, as I've noted in the prepared remarks, we have been working very closely with all the portfolio management team to make sure that they're prepared and had contingency plans and some of them we are talking or even every couple of days. Among the things that we're doing to help ensure there's much cash around we of course making sure that these companies are aware of all the SBA and kind of disaster funding sources that may be available to them which you know will certainly help. But then we of course is trying to seize them some new interesting opportunity, yes, that are kind of starting to come our way. Yes, I think we'll be prudent in terms of deploying the capital as we of course don't want to spend too much of it and find out that it would be great to have some additional capital around to help some of the portfolio companies. I think will -- I think we're taking these things in a measured pace and as we get new information and see new opportunities, well allocate that $30 million as best as we can.

Okay. Got it. It was helpful and we saw some positive results in December that you mentioned for Cara Therapeutic Phase 2 trial and looks like the next milestones here will be beginning to Phase 3 trial and the two other phase 2 data readouts later this year. So maybe more specifically as we think about the next 12-months can you speak about other key milestones we should anticipate as it relates Peptelligence platform?

Sure. Yes. So quite -- will be Cara and will be, you are watching their developments of course. Look, we also will be watching this development effort ramp and as part of that we're looking for additional feasibility studies there. What we are looking for any sort of movement we can have on internal pipeline and allies I think anything there but I think we are more focused on the technology itself and in getting additional pharmaceutical companies using it and seeking additional licenses. So that's really what we're going to be looking for then I guess on that manufacturing side, I think during the balance of this year of course we will be looking at the completion of that facility build-out, which we believe will also be helpful on business development front.

Okay. And just a couple more here. If we take out the loss associated with Enteris operation and just kind of focus on specialty finance. We saw a massive sequential step up and adjusted earnings from the $0.52 in 2018 to -- or $1.89 in 2019. So I realized that the income producing assets increased year-over-year, but maybe you can kind of call out any other key contributors to the step up perhaps some of the expense side of thing.

Sure. Yes, on the expense side, the biggest driver would have been in the second half 2018 we did have some material write down which impacted the financial results. Then of course while we did have them write down in fourth quarter, yes, they're much less significant year-over-year. So that of course contributed to it but on the top line as you noted the revenue was up quite nicely during the year. That was driven particularly in fourth quarter by an exit of our Cheetah Medical Facility as well as the outperformance of a couple of the royalties during the period. There was a strong quarter.

Definitely and just I guess lastly on a macro level, there's quite a large disparity it seems between the current share price and the company's book value; uplisting to the NASDAQ, I think certainly helped here and as awareness builds on the story, I think that gap will likely close a bit, but just kind of curious about your thoughts on the reason for the disparity here and any color you might have. Thank you.

Terrific. Appreciate that question. We do get that frequently the post the acquisition of Enteris and the uplisting in NASDAQ, yes, I think the discount to book did close quite considerably with the stock trading into the $13 right before the coronavirus crisis kind of destroyed the equity markets, that set of -- that level was trading at a discount of course now it is trading in a more substantial discount in, yes, I think as we look at our capital resources and being prepared for this environment and thinking about different investments we can make about buying our stock back at these levels is certainly one that's uses of that capital. With that said if we do want to remindful of the needs of the portfolio and make sure that we are well capitalized to help in unforeseen circumstances and of course to be able to take advantage of very compelling opportunities. So I think in the near term it will was skewed on this buyback and then as things normalized and we continue to help the story we will get to extent we continue to trade at material discounts and will noted during the prepared remarks, we'll keep looking at additional buyback opportunities to turn capital to shareholders in an efficient manner.

Got it. That makes sense. Certainly a good time for the buyback program. Well, some really great updates here and appreciate you taking my questions. End of Q&A

This concludes our question-and-answer session. I now like to turn the conference over Mr. Winston Black for any closing remarks. Please go ahead.

Thanks. In closing, I appreciate everyone's time and attention. And look for the future updates as we continue to advance SWK Holdings. I like to extend our sincere wishes of good health to all during these unprecedented times. Thank you all for attending the call.

The conference is now concluded. Thank you for attending today's presentation. You may now disconnect.