Company: SWKH
Filing Date: 2025-04-29
Form Type: ANNLRPT
Source: 0001628280-25-020720
Chunk: 80

Company: SWK Holdings Corp
Filing Date: 2025-04-29
Form: ANNLRPT
Chunk 80
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T, Inc. (“Best”) royalty, with a carrying value of $2.3 million; (3) the Ideal Implant, Inc. (“Ideal”) royalty, with a carrying value of $3.1 million; and (4) the term loan to BIOLASE, Inc ("BIOLASE"), with a carrying value of $1.0 million. The Company collected $15.9 million and $2.4 million on these nonaccrual finance receivables for the years ended December 31, 2024 and 2023 , respectively .

Term Loan Settlements/Payoffs

On November 14, 2024, a third party purchased certain Exeevo assets in accordance with an Asset Purchase Agreement ("Exeevo APA"), whereby the Company received a payment of $3.4 million cash at closing, a net $0.7 million payment in January 2025, and $0.5 million in February 2025. Additionally, the Company is eligible to receive a three year contingent earn out consisting of 30% of the annual increase in SAAS gross margin. The Company assigned no value to the contingent earn out given the uncertainty that the contingencies will be met.

BIOLASE filed for Chapter 11 bankruptcy protection on October 1, 2024. The Company agreed to make additional fundings to support the Chapter 11 process through Debtor-in-Possession (“DIP”) Financing and on October 9, 2024, the Company advanced an additional $1.4 million DIP Financing to BIOLASE. During November 2024 certain assets of Biolase were sold to a third party. On November 27, 2024 the Company received a $13.0 million payment from the bankruptcy estate. The Company received an additional payment of $1.0 million in February 2025..

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On December 16, 2024, certain assets of Trio Healthcare were sold to a third party and the Company received a $1.9 million cash payment.

Loan Modifications Made to Borrowers Experiencing Financial Difficulty

Effective January 1, 2023, the Company adopted the provisions of ASU 2022-02, which eliminated the accounting for TDRs while expanding loan modification and vintage disclosure requirements. The update specifically required additional disclosures on loan modifications to borrowers experiencing financial difficulties that involved an interest rate reduction, other-than-insignificant payment delay, a term extension, principal forgiveness or a combination