Company: SWKH
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001628280-25-025955
Chunk: 21

Company: SWK Holdings Corp
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 1
Chunk 21
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 outstanding shares of common stock, and when dilutive, shares of common stock issuable upon exercise of options and warrants deemed outstanding using the treasury stock method.The following table shows the computation of basic and diluted net income per share for the following periods (in thousands, except per share amounts):Three Months EndedMarch 31,20252024Numerator:Net income$4,539 $468 Denominator:Weighted-average shares outstanding12,229 12,475 Effect of dilutive securities11 21 Weighted-average diluted shares12,240 12,496 Basic net income per share$0.37 $0.04 Diluted net income per share$0.37 $0.04 For the three months ended March 31, 2025 and 2024, outstanding options to purchase shares of common stock in an aggregate of approximately 38,000 and 47,000, respectively, have been excluded from the calculation of diluted net income per share, as such securities were anti-dilutive.

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Note 3. Finance Receivables

Finance receivablesFinance receivables exclusive of finance receivables held for sale ("Finance Receivables"), are reported at their determined principal balances net of any unearned income, cumulative write offs charged against the allowance for credit losses, and unamortized deferred fees and costs. Unearned income and deferred fees and costs are amortized to interest income based on all cash flows expected using the effective interest method. For details on Finance receivables held for sale see Note 4.The carrying values of finance receivables were as follows (in thousands): March 31, 2025December 31, 2024Term loans$219,042 $224,073 Royalty purchases12,819 64,936 Total before allowance for credit losses231,861 289,009 Allowance for credit losses(8,785)(11,249)Total carrying value$223,076 $277,760 Allowance for Credit LossesThe allowance for credit losses ("ACL") is management's estimate of the amount of expected credit losses over the life of the loan portfolio, or the amount of amortized cost basis not expected to be collected, at the balance sheet date. This estimate encompasses information about historical events, current conditions and reasonable and supportable economic forecasts. Determining the amount of the ACL is complex and requires extensive judgment by management about matters that are inherently uncertain. Given the current