Company: SWKH
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001628280-25-040420
Chunk: 69

Company: SWK Holdings Corp
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 8
Chunk 69
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 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:June 30, 2025December 31, 2024NonaccrualPerformingTotalNonaccrualPerformingTotalTerm loans$— $234,118 $234,118 $1,000 $223,073 $224,073 Royalty purchases12,312 — 12,312 13,830 51,106 64,936 Total before allowance for credit losses$12,312 $234,118 $246,430 $14,830 $274,179 $289,009 Allowance for credit losses(1,847)(6,979)(8,826)(2,075)(9,174)(11,249)Total carrying value$10,465 $227,139 $237,604 $12,755 $265,005 $277,760 As of June 30, 2025, the Company had three finance receivables in nonaccrual status: (1) the Flowonix Medical, Inc. (“Flowonix”) royalty, with a carrying value of $7.1 million; (2) the Best ABT, Inc. (“Best”) royalty, with a carrying value of $2.3 million; and (3) the Ideal Implant, Inc. (“Ideal”) royalty, with a carrying value of $2.8 million. The Company collected $2.2 million and $0.7 million on its nonaccrual finance receivables for the six months ended June 30, 2025 and 2024, respectively.Loan Modifications Made to Borrowers Experiencing Financial Difficulty The Company evaluates the carrying value of each finance receivable for impairment. A term loan is considered to be impaired when, based on current information and events, it is determined that the Company will not be able to collect the amounts due