Company: SWKH
Filing Date: 2025-03-20
Form Type: 10-K
Source: 0001628280-25-013989
Chunk: 201

Company: SWK Holdings Corp
Filing Date: 2025-03-20
Form: 10-K
Item: Item 8
Chunk 201
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 it was more likely than not that the Company would not be able to realize the full benefit of the U.S. federal and state deferred tax assets in the future. However, at December 31, 2024 the Company has concluded that it is more likely than not that the Company will be able to realize approximately $23.5 million benefit of the U.S. federal and state deferred tax assets in the future.The Company will continue to assess the need for a valuation allowance on the deferred tax assets by evaluating both positive and negative evidence that may exist on a quarterly basis. Any adjustment to the deferred tax asset valuation allowance would be recorded in the consolidated statements of income for the period that the adjustment is determined to be required. There was no  valuation allowance against deferred tax assets as of December 31, 2024 and 2023, respectively.Deferred tax assets consist of the following (in thousands):December 31,20242023Deferred tax assets:Credit carryforward$2,899 $2,973 Provision for credit losses2,433 2,967 Stock-based compensation230 153 Other2,999 2,438 Net operating losses13,682 19,891 Gross deferred tax assets$22,243 $28,422 Deferred tax liabilities:Intangible assets1,863 586 Other(622)(718)Valuation allowance— — Net deferred tax assets$23,484 $28,290  The Tax Reform Act of 1986 limits the use of NOLs and tax credit carryforwards in certain situations where stock ownership changes occur. In the event the Company has had a change in ownership, the future utilization of the Company’s net operating loss and tax credit carryforwards could be limited.As of December 31, 2024, the Company had NOL carryforwards for federal income tax purposes of approximately $58.1 million. The federal NOL carryforwards, if not offset against future income, will expire by 2037. Approximately $6.9 million can be carried forward indefinitely.The Company also had federal research carryforwards of $2.9 million. The federal research credits began to expire in 2023 and will fully expire by 2042.The Company records liabilities, where appropriate, for all uncertain income tax positions and recognizes potential accrued interest and penalties related to unrecognized tax benefits within income tax expense. As of December 31, 2024 and 2023, the Company had approximately $0