Company: SWKH
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0001628280-25-050155
Chunk: 64

Company: SWK Holdings Corp
Filing Date: 2025-11-06
Form: 10-Q
Item: Part I, Item 8
Chunk 64
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 future income is not probable. This evaluation is generally 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 pool, net of allowance for credit losses (in thousands) as of:September 30, 2025December 31, 2024NonaccrualPerformingTotalNonaccrualPerformingTotalTerm loans$— $241,634 $241,634 $1,000 $223,073 $224,073 Royalty purchases11,502 — 11,502 13,830 51,106 64,936 Total before allowance for credit losses$11,502 $241,634 $253,136 $14,830 $274,179 $289,009 Allowance for credit losses(1,725)(6,015)(7,740)(2,075)(9,174)(11,249)Total carrying value$9,777 $235,619 $245,396 $12,755 $265,005 $277,760 As of September 30, 2025, the Company had three finance receivables in nonaccrual status: (1) the Flowonix Medical, Inc. (“Flowonix”) royalty, with a carrying value of $6.6 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 $2.5 million. The Company collected $2.5 million and $2.6 million on its nonaccrual finance receivables for the nine months ended September 30, 2025 and 2024,