Company: SWKH
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0001628280-25-050155
Chunk: 30

Company: SWK Holdings Corp
Filing Date: 2025-11-06
Form: 10-Q
Item: Part I, Item 1
Chunk 30
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 to an existing term loan finance receivable agreement with Elutia, Inc ("Elutia") the Company received 50,000 shares of common shares with a fair value of $0.1 million, or $1.65 per share. Sale of the shares is restricted until maturity of the term loan finance receivable with Elutia.On June 30, 2024, the Company exercised its right to purchase AOTI, Inc ("AOTI") common shares. Upon exercise, the Company received 402,634 shares of AOTI shares with a fair value of 0.7 million, or $1.68 per share. The following table presents gains and losses on equity securities as prescribed by ASC 321, Investments - Equity Securities (in thousands):Three Months Ended September 30,Nine Months Ended September 30,2025202420252024Net gain (loss) on equity securities during the period$(246)$(6)$(314)$276 Net gain on warrants exercised or cancelled during the period— — — (444)Net loss recognized on equity securities sold during the period— — — 180 Unrealized gain (loss) on equity securities held at the end of the period$(246)$(6)$(314)$12 

Note 6. Debt

Revolving Credit FacilityOn June 28, 2023, the Company entered into a new credit agreement (the “Credit Agreement”) by and among SWK Funding LLC, the Company’s wholly-owned subsidiary (together with the Company, the “Borrower”), the lenders party thereto (“Lenders”), and First Horizon Bank as a Lender and Agent (the “Agent”). The Credit Agreement provides for a revolving credit facility with an initial maximum principal amount of $45.0 million. The Credit Agreement provides that the Company may request one or more incremental increases in an aggregate amount not to exceed $80.0 million, subject to the consent of the Agent and each Lender, at any time prior to the termination of the revolving credit period on June 28, 2026 (the “Commitment Termination Date”). The revolving credit period will be followed by a one-year amortization period, with the final maturity date of the Credit Agreement occurring on June 28, 2027.The outstanding principal balance of the Credit Agreement will bear interest at a rate per annum equal to the sum of (i) Term Secured Overnight Financing Rate, or SOFR (