$SWKHL

KANA SOFTWARE INC

CIK:0001089907|SEC Filings

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2025	Dec. 31, 2024
Revenues:
Finance receivable interest income, including fees	$ 38,439	$ 40,787
Pharmaceutical development	2,153	3,616
Other	865	584
Total revenues	41,457	44,987
Costs and expenses:
Provision for (benefit from) credit losses	(924)	12,756
Loss on impairment	641	5,771
Loss on disposal of inventory	314	0
Interest expense	4,797	4,685
Pharmaceutical manufacturing, research and development expense	1,551	2,203
Change in fair value of acquisition-related contingent consideration	0	(4,900)
Depreciation and amortization expense	40	1,399
General and administrative expense	14,763	11,487
Income from operations	20,275	11,586
Other income (expense), net
Unrealized net gain on warrants	775	2,406
Net gain on exercise and cancellation of warrants	0	445
Loss on sale of assets	(82)	0
Gain on sale of business	1,601	0
Net loss on marketable investments	(384)	(266)
Realized gain on early payment of finance receivables	1,729	1,065
Gain (loss) on revaluation of finance receivables	(3,727)	2,495
Realized and unrealized foreign currency transaction gains (losses)	(71)	641
Income before income tax expense	20,116	18,372
Income tax expense	22,649	4,884
Net income (loss)	$ (2,533)	$ 13,488
Net income (loss) per share
Basic (in dollars per share)	$ (0.21)	$ 1.09
Diluted (in dollars per share)	$ (0.21)	$ 1.09
Weighted average shares outstanding
Basic (in shares)	12,162	12,369
Diluted (in shares)	12,162	12,383

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2025	Dec. 31, 2024
Cash flows from operating activities:
Net income (loss)	$ (2,533)	$ 13,488
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Provision for (benefit from) credit losses	(695)	12,756
Loss on sale of assets	82	0
Loss on impairment	641	5,771
Right-of-use amortization	143	415
Amortization of debt issuance costs	1,351	1,054
Deferred income taxes, net	22,573	4,807
Unrealized net gain on warrants	(775)	(2,406)
Loss on disposal of inventory	314	0
Net gain on exercise and cancellation of warrants	0	(445)
Gain on sale of business	(1,476)	0
Change in fair value of acquisition-related contingent consideration	0	(4,900)
Loss (gain) on revaluation of finance receivables	3,727	(2,495)
Foreign currency transaction gains	(681)	(1,414)
Loss on marketable investments	384	266
Loan discount amortization and fee accretion	(2,225)	(3,918)
Interest paid-in-kind	(1,785)	(2,807)
Stock-based compensation	1,175	944
Depreciation and amortization expense	40	1,399
Changes in operating assets and liabilities:
Interest, accounts receivable and other receivables	1,929	(1,059)
Derivative assets and liabilities, net	915	1,229
Collateral on foreign currency forward contract	2,750	0
Other assets, net	1,343	199
Accounts payable, accrued expenses, and other non-current liabilities	1,589	(1,326)
Deferred income	(1,500)	1,491
Net cash provided by operating activities	27,286	23,049
Cash flows from investing activities:
Proceeds from sale of property and equipment	110	0
Settlement of foreign currency forward contract	1,560	0
Proceeds from sale of assets and liabilities held for sale	6,790	0
Sale of marketable investments	0	574
Investment in finance receivables	(28,500)	(63,706)
Proceeds from sale of finance receivables	31,678	0
Repayment of finance receivables	56,911	53,109
Corporate debt securities principal payments	21	27
Purchases of property and equipment	(512)	(138)
Net cash provided by (used in) investing activities	68,058	(10,134)
Cash flows from financing activities:
Net settlement for employee taxes on stock options	(89)	(43)
Net payments on from credit facility	(6,233)	(6,117)
Cash dividends	(49,078)	0
Payments on financing costs	(41)	(50)
Repurchases of common stock, including fees and expenses	(3,067)	(6,014)
Net cash used in financing activities	(58,508)	(12,224)
Net increase in cash and cash equivalents	36,836	691
Cash and cash equivalents at beginning of period	5,927	5,236
Cash and cash equivalents at end of period	42,763	5,927
Supplemental non-cash investing and financing activities:
Derecognition of right-of-use assets and operating lease liabilities upon termination of lease	0	82
Cash paid for interest	2,967	3,082
Fair value of warrants received with finance receivables	$ 537	$ 1,241

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Dec. 31, 2025	Dec. 31, 2024
Current assets:
Cash and cash equivalents	$ 42,763	$ 5,927
Interest, accounts receivable, and other receivables	3,860	5,788
Assets held for sale, net (Note 6)	0	6,398
Other current assets	163	2,141
Total current assets	46,786	20,254
Finance receivables, net of allowance for credit losses of $7,278 and $11,249 as of December 31, 2025 and 2024, respectively	218,627	277,760
Collateral on foreign currency forward contract	0	2,750
Marketable investments	184	580
Deferred tax assets, net	912	23,484
Warrant assets	5,913	4,366
Other non-current assets, net	0	3,041
Total assets	272,422	332,235
Current liabilities:
Accounts payable and accrued liabilities	4,974	2,810
Liabilities held for sale, net (Note 6)	0	1,255
Deferred income	0	1,500
Total current liabilities	4,974	5,565
Unsecured senior notes, net	32,110	31,412
Revolving credit facility	0	6,233
Other non-current liabilities	240	335
Total liabilities	37,324	43,545
Commitments and contingencies (Note 8)
Stockholders' equity:
Preferred stock, $0.001 par value; 5,000,000 shares authorized; no shares issued and outstanding	0	0
Common stock, $0.001 par value; 250,000,000 shares authorized; 12,095,979 and 12,213,599 shares issued and outstanding as of December 31, 2025 and 2024, respectively	12	12
Additional paid-in capital	4,418,010	4,419,991
Accumulated deficit	(4,182,924)	(4,131,313)
Total stockholders' equity	235,098	288,690
Total liabilities and stockholders' equity	$ 272,422	$ 332,235