Company: SWKH
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001628280-25-040420
Chunk: 93

Company: SWK Holdings Corp
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 8
Chunk 93
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8)Interest expense1.2 1.1 0.1 Pharmaceutical manufacturing, research and development expense0.6 0.5 0.1 Change in fair value of acquisition-related contingent consideration— (4.9)4.9 Depreciation and amortization expense— 0.4 (0.4)General and administrative expense2.8 2.9 (0.1)Other income (expense), net(0.1)3.8 (3.9)Income tax expense1.0 1.0 — Net income3.5 3.7 (0.2)

Revenues

Revenues decreased to $10.1 million for the three months ended June 30, 2025 from $10.8 million for the three months ended June 30, 2024. The $0.7 million decrease in revenue for the three months ended June 30, 2025 was primarily due to a $1.2 million decrease in Finance Receivables segment revenue and a $0.5 million increase in Pharmaceutical Development segment revenue. The finance receivables segment revenue decreased primarily due to the sale of the majority of the Company's royalty portfolio. The increase in pharmaceutical development revenues was due to the collaboration agreement with Aptar.

Provision for Credit Losses

Our provision for credit losses is established through charges or credits to income in the form of the provision in order to bring our allowance for credit losses for loans and unfunded commitments to a level deemed appropriate by management. We recognized a net provision for credit losses of $0.8 million and $4.1 million during the three months ended June 30, 2025 and 2024, respectively. The decrease is primarily due to impairments totaling $4.3 million during the same period in the prior year.

Interest Expense

Interest expense consists mostly of interest accrued on our revolving line of credit, 9.00% Senior Notes due 2027, unused line of credit and maintenance fees, as well as amortization of debt issuance costs. Interest expense remained consistent for the three months ended June 30, 2025 as compared to the same period in the previous period. 

Pharmaceutical Manufacturing, Research and Development Expense

Pharmaceutical manufacturing, research and development expense remained consistent for the three months ended June 30, 2025 as compared to the same period in the previous year resulting in an immaterial change in total