Company: SWKH
Filing Date: 2025-03-20
Form Type: 10-K
Source: 0001628280-25-013989
Chunk: 112

Company: SWK Holdings Corp
Filing Date: 2025-03-20
Form: 10-K
Item: Item 1B
Chunk 112
---
31, 20231,759 Issuance1,241 Exercised(985)Increase in fair value2,406 Loss on foreign currency transactions(55)Fair Value - December 31, 2024$4,366 

62

The Company holds warrants issued to the Company in conjunction with certain term loan investments. These warrants meet the definition of a derivative and are included in the consolidated balance sheets. The fair values for warrants outstanding, which do not have a readily determinable value, are measured using the Black-Scholes option pricing model. The following ranges of assumptions were used in the models to determine fair value:December 31, 2024December 31, 2023Dividend rate range— — Risk-free rate range4.2% to 4.5% 3.8% to 4.8%Expected life (years) range1.9 to 6.91.2 to 5.8Expected volatility range56.0% to 177.7%75.3% to 154.3%The warrant assets are valued using a market approach and include significant unobservable inputs such as risk-free rate, expected life, and expected volatility. For the year ended December 31, 2024, the risk-free rate range weighted average was 4.4%, and had a median of 4.4%. For the year ended December 31, 2023, the risk-free rate range weighted average was 4.3%, and had a median of 3.8%. For the year ended December 31, 2024, the expected life range weighted average was 5.8 years, and had a median of 4.3 years. For the year ended December 31, 2023, the expected life range weighted average was 3.4 years, and had a median of 4.4 years. For the year ended December 31, 2024, the expected volatility range weighted average was 65.6%, and had a median of 104.3%. For the year ended December 31, 2023, the expected volatility range weighted average 124.6%, and median of 134.4%.As of December 31, 2024, the Company had three royalty investments, Best, Ideal, and Flowonix, that were deemed to be impaired based on reductions in carrying value. As of December 31, 2024, the Company had one term