Company: SWKH
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0001628280-25-050155
Chunk: 23

Company: SWK Holdings Corp
Filing Date: 2025-11-06
Form: 10-Q
Item: Part I, Item 1
Chunk 23
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$4,091 $11,249 $9,731 $4,170 $13,901 Unfunded Commitments(125)— (125)— — — Provision (benefit) for credit losses(1,018)(567)(1,585)10,202 575 10,777 Write offs— (1,799)(1,799)(10,335)— (10,335)Allowance at end of period$6,015 $1,725 $7,740 $9,598 $4,745 $14,343 Non-Accrual Finance ReceivablesThe Company originates finance receivables to companies primarily in the life sciences sector. This concentration of credit exposes the Company to a higher degree of risk associated with this sector.On a quarterly basis, the Company evaluates the carrying value of its finance receivables. Recognition of income is suspended, and the finance receivable is placed on non-accrual status when management determines that collection of future income is not probable. This evaluation is generally based on delinquency information, an assessment of the borrower’s financial condition and the adequacy of collateral, if any. The Company would generally place term loans on nonaccrual status when the full and timely collection of interest or principal becomes uncertain and they are 90 days past due for interest or principal, unless the term loan is both well-secured and in the process of collection. When placed on nonaccrual, the Company would reverse any accrued unpaid interest receivable against interest income and amortization of any net deferred fees is suspended. Generally, the Company would return a term loan to accrual status when all delinquent interest and principal become current under the terms of the credit agreement.The following table presents nonaccrual and performing finance receivables by portfolio pool, net of allowance for credit losses (in thousands) as of:September 30, 2025December 31, 2024NonaccrualPerformingTotalNonaccrualPerformingTotalTerm loans$— $241,634 $241,634 $1,000 $223,073 $224,073 Royalty purchases11,502 — 11,502 13,830 51,106 64,936 Total before allowance for credit losses$11,502 $241,634 $253,136 $14,830 $274,179