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

Company: SWK Holdings Corp
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 1
Chunk 25
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 is highly in question. Finance receivables rated a 1 are on non-accrual and are at an elevated risk for principal impairment.2: Borrower performing below plan, and the loan-to-value is generally worse than at the time of underwriting. Borrower has limited access to additional capital to operate its business. Finance receivables rated a 2 are generally on non-accrual, and while no loss of impairment is anticipated, there is potential for future principal impairment.3: Borrower performing in-line-to-modestly below Company expectations, and loan-to-value is similar to slightly worse than at the time of underwriting. Borrower has demonstrated access to capital markets.4: Borrower performing in-line-to-modestly above Company expectations and loan-to-value similar or modestly better than underwriting case. Borrower has demonstrated access to capital markets.5: Borrower performing in excess of Company expectations, and loan-to-value is better than at time of origination.The Company uses an internal credit rating system which rates each Royalty on a color scale of Green to Red, with Green typically indicative of a Royalty that is exceeding base underwritten case, Yellow indicates a royalty is performing in-line with underwritten plan, and Red reflective of underperformance relative to plan. Royalties rated as Red are generally classified as non-accrual.The following table summarizes the gross carrying value of Finance Receivables by origination year, grouped by risk rating (in thousands):March 31, 202520252024202320222021PriorTotalTerm Loans5$— $— $— $8,674 $16,385 $29,148 $54,207 49,675 7,967 36,627 22,825 — — 77,094 3— — 19,777 24,351 — 23,238 67,366 2— — 5,499 — 14,876 — 20,375 Subtotal - Term Loans$9,675 $7,967 $61,903 $55,850 $31,261 $52,386 $219,042 RoyaltiesRed— — — — 3,039 9,780 12,819 Subtotal - Royalties$— $— $— $— $3,039 $9,780 $12,819