Company: SWKH
Filing Date: 2025-03-20
Form Type: 10-K
Source: 0001628280-25-013989
Chunk: 93

Company: SWK Holdings Corp
Filing Date: 2025-03-20
Form: 10-K
Item: Item 1B
Chunk 93
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$274,179 $289,009 $25,982 $262,423 $288,405 Allowance for credit losses(2,075)(9,174)(11,249)(1,447)(12,454)(13,901)Total carrying value$12,755 $265,005 $277,760 $24,535 $249,969 $274,504 As of December 31, 2024, the Company had four finance receivables in nonaccrual status: (1) the Flowonix Medical, Inc. (“Flowonix”) royalty, with a carrying value of $8.4 million; (2) the Best ABT, Inc. (“Best”) royalty, with a carrying value of $2.3 million; (3) the Ideal Implant, Inc. (“Ideal”) royalty, with a carrying value of $3.1 million; and (4) the term loan to BIOLASE, Inc ("BIOLASE"), with a carrying value of $1.0 million. The Company collected $15.9 million and $2.4 million on these nonaccrual finance receivables for the years ended December 31, 2024 and 2023, respectively.Term Loan Settlements/PayoffsOn November 14, 2024, a third party purchased certain Exeevo assets in accordance with an Asset Purchase Agreement ("Exeevo APA"), whereby the Company received a payment of $3.4 million cash at closing, a net $0.7 million payment in January 2025, and $0.5 million in February 2025. Additionally, the Company is eligible to receive a three year contingent earn out consisting of 30% of the annual increase in SAAS gross margin. The Company assigned no value to the contingent earn out given the uncertainty that the contingencies will be met.BIOLASE filed for Chapter 11 bankruptcy protection on October 1, 2024. The Company agreed to make additional fundings to support the Chapter 11 process through Debtor-in-Possession (“DIP”) Financing and on October 9, 2024, the Company advanced an additional $1.4 million DIP Financing to BIOLASE. During November 2024 certain assets of Biolase were sold to a third party. On November 27, 2024 the Company received a $13.0 million payment from the bankruptcy estate