Company: SWKH
Filing Date: 2025-03-20
Form Type: 10-K
Source: 0001628280-25-013989
Chunk: 194

Company: SWK Holdings Corp
Filing Date: 2025-03-20
Form: 10-K
Item: Item 8
Chunk 194
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 Carrying  Value in  Consolidated  Balance  SheetsQuoted Prices  in Active  Markets for  Identical Assets  or Liabilities  (Level 1)Significant  Other  Observable  Inputs  (Level 2)Significant  Unobservable  Inputs  (Level 3)Financial AssetsWarrant assets$1,759 $— $— $1,759 Marketable investments48 — — 48 Foreign currency forward contract974— — 974Financial liabilities:Contingent consideration payable$4,900 $— $— $4,900 The contingent consideration payable was valued using a discounted cash flow approach and included a significant unobservable input which is the discount rate. During the year ended December 31, 2024, there was a write off of the full balance of contingent consideration liability due to the non-viability of the underlying product. See Note 9 for further information.The changes on the value of the warrant assets during the years ended December 31, 2024 and 2023 were as follows (in thousands): Fair Value - January 1, 2023$1,220 Issuance1,364 Cancelled(770)Decrease in fair value(55)Fair Value - December 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 

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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 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