Company: SWKH
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0001628280-25-050155
Chunk: 79

Company: SWK Holdings Corp
Filing Date: 2025-11-06
Form: 10-Q
Item: Part I, Item 8
Chunk 79
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  Inputs  (Level 3)Financial AssetsWarrant assets$4,366 $— $— $4,366 Marketable investments580 559 — 21 Foreign currency forward contract2,475 — — 2,475 The changes in fair value of the warrant assets during were as follows (in thousands):Nine Months Ended September 30, 2025Nine Months Ended September 30, 2024Fair value - December 31, 2024$4,366 Fair value - December 31, 2023$1,759 Issued498 Issued1,072 Exercised— Exercised(985)Change in fair value2,563 Change in fair value178 Gain on foreign currency transactions172 Loss on foreign currency transactions2 Fair value - September 30, 2025$7,599 Fair value - September 30, 2024$2,026 

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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 unaudited condensed 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:September 30, 2025December 31, 2024Dividend rate range— — Risk-free rate range3.6% to 3.9% 4.2% to 4.5%Expected life (years) range1.1 to 6.41.9 to 6.9Expected volatility range64.0% to 167.0%56.0% to 177.7%The warrant assets are valued using a market approach and include significant unobservable inputs such as risk-free rate, expected life, and expected volatility. As of September 30, 2025 the risk-free rate range weighted average was 3.7%, and had a median of 3.7%. As of December 31, 2024, the risk-free rate range weighted average was 4.4%, and had a median of 4.4%. As of September 30, 2025 the expected life range weighted average was 5.2 years, and had a median of 4.5 years. As of December 31, 2024