Company: SWKH
Filing Date: 2025-03-20
Form Type: 10-K
Source: 0001628280-25-013989
Chunk: 86

Company: SWK Holdings Corp
Filing Date: 2025-03-20
Form: 10-K
Item: Item 1B
Chunk 86
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 for interest receivable credit losses in 2024 and 2023.Accounts receivable from management fees and pharmaceutical development revenue is recorded at the aggregate unpaid amount less any allowance for credit losses. The Company determines an account receivable’s delinquency status based on its contractual terms. Interest is not charged on outstanding balances. Accounts are written-off only when all methods of recovery have been exhausted. As of December 31, 2024 and 2023, the provision for credit losses on interest and accounts receivable was zero. Certain Risks and ConcentrationsFinancial instruments that potentially subject the Company to significant concentrations of credit risk consist primarily of cash and cash equivalents, interest and accounts receivable, finance receivables and marketable investments. The Company invests its excess cash with major U.S. banks and financial institutions. The Company has not experienced any losses on its cash and cash equivalents.Finance Receivables Segment For the year ended December 31, 2024, the Company had one customer that accounted for 11.6% of revenues. For the year ended December 31, 2023, the Company had two customers that accounted for 24.1% of revenues. The Company performs ongoing credit evaluations of its partner companies and generally requires collateral. For the year ended December 31, 2024, two of our business partners accounted for 36.6% of our interest and accounts receivable. For the year ended December 31, 2023, three of our business partners accounted for 35.0% of our interest and accounts receivable.

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Pharmaceutical Development SegmentFor the year ended December 31, 2024, the Company had one customer that accounted for approximately 96.0% of pharmaceutical development revenues. For the year ended December 31, 2023, the Company had two customers that accounted for approximately  99.8% of pharmaceutical development revenues. The Company does not expect its current or future credit risk exposures to have a significant impact on its operations. However, there can be no assurance that its business will not experience any adverse impact from credit risk in the future.Stock-based CompensationAll employee and director stock-based compensation is measured at the grant date, based on the estimated fair value of the award, and is recognized as an expense over the requisite service period. Stock-based compensation expense is reduced for estimated future forfeitures. These estimates are revised in future periods if actual forfeitures differ from the estimates. Changes in forfeiture estimates impact compensation expense in