Company: SWKH
Filing Date: 2025-04-29
Form Type: ANNLRPT
Source: 0001628280-25-020720
Chunk: 76

Company: SWK Holdings Corp
Filing Date: 2025-04-29
Form: ANNLRPT
Chunk 76
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 pay Enteris certain development, regulatory and tiered commercial milestone payments, as well as low single-digit royalties based on net sales in the licensed territory. During 2024, the Company concluded that the milestones and royalties pursuant to the License Agreement would not be realized as a result of non-viability of product covered by the License Agreement. The Company has recognized a full impairment on the license of its remaining net book value of $5.8 million which is included in the "Loss on impairment of intangible assets" section of our consolidated statements of income.

Amortization expense related to intangible assets was $0.5 million and $1.7 million for the year ended December 31, 2024 and 2023 , respectively.

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#### Note 4. Finance Receivables
Finance receivables are reported at their determined principal balances net of any unearned income, cumulative charge-offs 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.

The carrying values of finance receivables are as follows (in thousands):

|                                          |     | December 31, |    2024 |     |   |    2023 |         |
|:-----------------------------------------|:----|:-------------|--------:|:----|:--|--------:|--------:|
| Term loans                               |     | $            | 224,073 |     | $ | 221,145 |         |
| Royalty purchases                        |     |              |  64,936 |     |   |         |  67,260 |
| Total before allowance for credit losses |     |              | 289,009 |     |   |         | 288,405 |
| Allowance for credit losses              |     |              | -11,249 |     |   | -13,901 |         |
| Total carrying value                     |     | $            | 277,760 |     | $ | 274,504 |         |

Allowance for Credit Losses

The 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