Company: SWKH
Filing Date: 2025-04-29
Form Type: ANNLRPT
Source: 0001628280-25-020720
Chunk: 78

Company: SWK Holdings Corp
Filing Date: 2025-04-29
Form: ANNLRPT
Chunk 78
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 as determined by management, of finance receivables. This resulted in a re-allocation of the existing allowance and did not have a material impact on the total allowance for credit losses amount. Previously, the Company's quarterly assessment of the allowance included two portfolio pools: Term Loans and Royalties. After the change in methodology effective for the quarter ended June 30, 2024, these pools are further broken down into individual risk ratings applied to each investment to allow for a more precise method for calculating the allowance for credit losses.

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The following table details the changes in the allowance for credit losses by portfolio segment for the respective periods (in thousands):

|                                                                                                                                                                 |     |            | December 31, 2024 |     |           |       |     |       |         |     |            | December 31, 2023 |     |           |         |     |       |         |
|:----------------------------------------------------------------------------------------------------------------------------------------------------------------|:----|:-----------|------------------:|:----|:----------|------:|:----|:------|--------:|:----|:-----------|------------------:|:----|:----------|--------:|:----|:------|--------:|
|                                                                                                                                                                 |     | Term Loans |                   |     | Royalties |       |     | Total |         |     | Term Loans |                   |     | Royalties |         |     | Total |         |
| Allowance at beginning of period                                                                                                                                |     | $          |             9,731 |     | $         | 4,170 |     | $     |  13,901 |     | $          |                 — |     | $         |  11,846 |     | $     |  11,846 |
| Effect of adoption of ASU 2016-13                                                                                                                               |     |            |                 — |     |           |     — |     |       |       — |     |            |             8,900 |     |           |   2,886 |     |       |  11,786 |
| Provision for (benefit from) credit losses                                                                                                                      |     |            |             8,907 |     |           |   -79 |     |       |   8,828 |     |            |               831 |     |           |   1,284 |     |       |   2,115 |
| Write offs, net of recoveries(1