Company: SWKH
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001628280-25-025955
Chunk: 58

Company: SWK Holdings Corp
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 8
Chunk 58
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 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:March 31, 2025December 31, 2024NonaccrualPerformingTotalNonaccrualPerformingTotalTerm loans$— $219,042 $219,042 $1,000 $223,073 $224,073 Royalty purchases12,819 — 12,819 13,830 51,106 64,936 Total before allowance for credit losses$12,819 $219,042 $231,861 $14,830 $274,179 $289,009 Allowance for credit losses(1,923)(6,862)(8,785)(2,075)(9,174)(11,249)Total carrying value$10,896 $212,180 $223,076 $12,755 $265,005 $277,760 As of March 31, 2025, the Company had three finance receivables in nonaccrual status: (1) the Flowonix Medical, Inc. (“Flowonix”) royalty, with a carrying value of $7.4 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 $3.0 million. The Company collected $2.2 million and $0.7 million on its nonaccrual finance receivables for the three months ended March 31, 2025 and 2024, respectively.Loan Modifications Made to Borrowers Experiencing Financial Difficulty The Company evaluates the carrying value of each finance receivable for impairment. A term loan is considered to be impaired when, based on current information and events, it is determined that the Company will not be able to collect the amounts due according to the loan contract, including scheduled interest payments. This evaluation is generally based on delinquency information, an assessment of the borrower’s financial condition and the adequacy of collateral, if any. In certain circumstances, the Company may place a finance receivable on nonaccrual status but conclude it is not impaired. The Company may