Company: SWKH
Filing Date: 2025-03-20
Form Type: 10-K
Source: 0001628280-25-013989
Chunk: 175

Company: SWK Holdings Corp
Filing Date: 2025-03-20
Form: 10-K
Item: Item 8
Chunk 175
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 based on delinquency information, an assessment of the borrower’s financial condition and the adequacy of collateral, if any. The Company would generally place term loans on nonaccrual status when the full and timely collection of interest or principal becomes 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 segment, net of credit loss allowance (in thousands):December 31, 2024December 31, 2023NonaccrualPerformingTotalNonaccrualPerformingTotalTerm loans$1,000 $223,073 $224,073 $9,128 $212,017 $221,145 Royalty purchases13,830 51,106 64,936 16,854 50,406 67,260 Total before allowance for credit losses$14,830 $274,179 $289,009 $25,982 $262,423 $288,405 Allowance for credit losses(2,075)(9,174)(11,249)(1,447)(12,454)(13,901)Total carrying value$12,755 $265,005 $277,760 $24,535 $249,969 $274,504 As of December 31, 2024, the Company had four finance receivables in nonaccrual status: (1) the Flowonix Medical, Inc. (“Flowonix”) royalty, with a carrying value of $8.4 million; (2) the Best ABT, Inc. (“Best”) royalty, with a carrying value of $2.3 million; (3) the Ideal Implant, Inc. (“Ideal”) royalty, with a carrying value of $3.1 million; and (4) the term loan to BIOLASE, Inc ("BIOLASE"), with a carrying value of $1.0 million. The Company collected $15.9 million and $2.4 million on these nonaccrual finance receiv