Company: SWKH
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001628280-25-040420
Chunk: 32

Company: SWK Holdings Corp
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 1
Chunk 32
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 and are at an elevated risk for principal impairment.2: Borrower performing below plan, and the loan-to-value is generally worse than at the time of underwriting. Borrower has limited access to additional capital to operate its business. Finance receivables rated a 2 are generally on non-accrual, and while no loss of impairment is anticipated, there is potential for future principal impairment.3: Borrower performing in-line-to-modestly below Company expectations, and loan-to-value is similar to slightly worse than at the time of underwriting. Borrower has demonstrated access to capital markets.4: Borrower performing in-line-to-modestly above Company expectations and loan-to-value similar or modestly better than underwriting case. Borrower has demonstrated access to capital markets.5: Borrower performing in excess of Company expectations, and loan-to-value is better than at time of origination.The Company uses an internal credit rating system which rates each Royalty on a color scale of Green to Red, with Green typically indicative of a Royalty that is exceeding base underwritten case, Yellow indicates a royalty is performing in-line with underwritten plan, and Red reflective of underperformance relative to plan. Royalties rated as Red are generally classified as non-accrual.

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The following table summarizes the gross carrying value of Finance Receivables by origination year, grouped by risk rating (in thousands):June 30, 202520252024202320222021PriorTotalTerm Loans5$— $29,389 $— $19,602 $16,396 $— $65,387 49,717 8,007 39,366 22,912 — — 80,002 3— — 19,905 25,175 — 22,953 68,033 2— — 5,702 — 14,994 — 20,696 Subtotal - Term Loans$9,717 $37,396 $64,973 $67,689 $31,390 $22,953 $234,118 RoyaltiesRed— — — — 2,832 9,480 12,312 Subtotal - Royalties$— $— $— $— $2,832 $9,480 $12,312 Total Finance Receivables, gross$9,717 $37,396