Company: SWKH
Filing Date: 2025-03-20
Form Type: 10-K
Source: 0001628280-25-013989
Chunk: 92

Company: SWK Holdings Corp
Filing Date: 2025-03-20
Form: 10-K
Item: Item 1B
Chunk 92
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— — — 8,900 2,886 11,786 Provision for (benefit from) credit losses8,907 (79)8,828 831 1,284 2,115 Write offs, net of recoveries(1)(11,480)— (11,480)— (11,846)(11,846)Allowance at end of period$7,158 $4,091 $11,249 $9,731 $4,170 $13,901 (1) Reversal of finance receivable-specific ACL recognized in prior periods. No impact to consolidated statement of income for the year ended December 31, 2023.Non-Accrual Finance ReceivablesThe Company originates finance receivables to companies primarily in the life sciences sector. This concentration of credit exposes the Company to a higher degree of risk associated with this sector.On a quarterly basis, the Company evaluates the carrying value of its finance receivables. Recognition of income is suspended, and the finance receivable is placed on non-accrual status when management determines that collection of future income is not probable. This evaluation is generally based on delinquency information, an assessment of the borrower’s financial condition and the adequacy of collateral, if any. The Company would generally place term loans on nonaccrual status when the full and timely collection of interest or principal becomes uncertain and they are 90 days past due for interest or principal, unless the term loan is both well-secured and in the process of collection. When placed on nonaccrual, the Company would reverse any accrued unpaid interest receivable against interest income and amortization of any net deferred fees is suspended. Generally, the Company would return a term loan to accrual status when all delinquent interest and principal become current under the terms of the credit agreement.The following table presents nonaccrual and performing finance receivables by portfolio segment, net of credit loss allowance (in thousands):December 31, 2024December 31, 2023NonaccrualPerformingTotalNonaccrualPerformingTotalTerm loans$1,000 $223,073 $224,073 $9,128 $212,017 $221,145 Royalty purchases13,830 51,106 64,936 16,854 50,406 67,260 Total before allowance for credit losses$14,830