Company: SWKH
Filing Date: 2025-04-29
Form Type: ANNLRPT
Source: 0001628280-25-020720
Chunk: 71

Company: SWK Holdings Corp
Filing Date: 2025-04-29
Form: ANNLRPT
Chunk 71
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 of the Company's finance receivables.

#### Interest and Accounts Receivable
The Company records interest receivable on an accrual basis and recognizes it as earned in accordance with the contractual terms of the loan agreement, to the extent that such amounts are expected to be collected. When management does not expect that principal, interest, and other obligations due will be collected in full, the Company will generally place the loan on nonaccrual status and cease recognizing interest income on that loan until all principal and interest due has been paid or the Company believes the partner company has demonstrated the ability to repay the Company’s current and future contractual obligations. Any uncollected interest related to prior periods is reversed from income in the period that collection of the interest receivable is determined to be doubtful. However, the Company may make exceptions to this policy if the investment has sufficient collateral value and is in the process of collection. The Company did not recognize any provision 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 Concentrations
Financial 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.