Company: SWKH
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0001628280-25-050155
Chunk: 69

Company: SWK Holdings Corp
Filing Date: 2025-11-06
Form: 10-Q
Item: Part I, Item 8
Chunk 69
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 aggregate purchase price of approximately $6.9 million which includes cash previously paid by Aptar in accordance with the Option Agreement. For the three and nine months ended September 30, 2025, the Company recognized a net gain on sale of  $1.6 million for the completion of the sale, which was inclusive of $3.3 million in option fees recognized as a component of the gain on sale. The gain was recognized in the "gain on sale of business" line item in our Condensed Consolidated income statement for three and nine months ended September 30, 2025.  As a result of the option being exercised, Aptar's obligation to continue making guaranteed payments for the period following the closing of the sale of business was terminated.As the Company expected Aptar to exercise the Option within 12 months from December 31, 2024, certain assets and liabilities of the MOD3 business were classified as held for sale as of December 31, 2024. The assets and liabilities held for sale as of December 31, 2024, represent the major operating assets and liabilities of the MOD3 business (i.e. the majority of the Pharmaceutical Development segment). The decisions to enter into the Option Agreement and the Purchase Agreement were made to align with the overall strategy to focus on the specialty finance business. In conjunction with the completion of the sale of MOD3 effective July 15, 2025, the Pharmaceutical Development segment will no longer exist and only the specialty Finance Receivable segment will remain for reporting periods beginning after September 30,2025.

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The following table summarizes the assets and liabilities held for sale:December 31, 2024Assets:Inventory$354 Property & equipment, net4,635 Intangible assets, net209 Other non-current assets1,200 Total assets held for sale, net$6,398 Liabilities:Accounts payable & accrued liabilities$268 Other non-current liabilities987 Total liabilities held for sale$1,255 During the nine months ended September 30, 2025 and the year ended December 31, 2024, there was not a strategic shift for the Company, and accordingly, the Pharmaceutical Development segment does not meet the criteria to be classified as a discontinued operation. As a result, we will continue to report our operational results for the Pharmaceutical Development segment. The following table shows the net loss before taxes for MOD3 (in thousands):Three Months Ended September 30,Nine Months Ended September 30