Company: SWKH
Filing Date: 2025-03-20
Form Type: 10-K
Source: 0001628280-25-013989
Chunk: 193

Company: SWK Holdings Corp
Filing Date: 2025-03-20
Form: 10-K
Item: Item 8
Chunk 193
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 valuation models including discounted cash flow methodologies, commonly used option-pricing models and broker quotes. Such securities would be classified as Level 3, if the valuation models and broker quotes are based on inputs that are unobservable in the market. If fair value is based on broker quotes, the Company checks the validity of received prices based on comparison to prices of other similar assets and market data such as relevant benchmark indices. Available-for-sale securities are measured at fair value on a recurring basis, while securities with no readily available fair market value are not, but estimates of fair value are reflected below.Derivative InstrumentsFor exchange-traded derivatives, fair value is based on quoted market prices, and accordingly, would be classified as Level 1. For non-exchange traded derivatives, fair value is based on option pricing models and are classified as Level 3. The Company uses a foreign currency forward contract to manage the impact of fluctuations in foreign currency denominated cash flows expected to be received from one of its royalty finance receivables denominated in a foreign currency. The foreign currency forward contract is not designated as a hedging instrument, and changes in fair value are recognized in earnings. The foreign currency forward contract was recorded in other non-current assets in the consolidated balance sheets as of December 31, 2024 and December 31, 2023 and totaled to $2.5 million and $1.0 million, respectively. The Company recognized a $1.5 million and $1.7 million gain due to changes in fair value related to its foreign currency forward contract for the years ended December 31, 2024 and December 31, 2023, respectively. 

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The following table presents financial assets and liabilities measured at fair value on a recurring basis as of December 31, 2024 (in thousands):Total  Carrying Value in  Consolidated  Balance SheetsQuoted Prices  in Active  Markets for  Identical Assets  or Liabilities  (Level 1)Significant  Other  Observable  Inputs  (Level 2)Significant  Unobservable  Inputs  (Level 3)Financial AssetsWarrant assets$4,366 $— $— $4,366 Marketable investments580 559 — 21 Foreign currency forward contract2,475 — — 2,475 The following table presents financial assets and liabilities measured at fair value on a recurring basis as of December 31, 2023 (in thousands):Total