Company: SWKH
Filing Date: 2025-03-20
Form Type: 10-K
Source: 0001628280-25-013989
Chunk: 104

Company: SWK Holdings Corp
Filing Date: 2025-03-20
Form: 10-K
Item: Item 1B
Chunk 104
---
 for sale on the consolidated balance sheet.  See Note 7.December 31,20242023Weighted-average remaining lease term (years)3.75.3Weighted-average discount rate7.1 %6.3 %

56

Future minimum rent on the Company's operating leases is as follows (in thousands):2025179 2026183 2027188 2028128 Total future lease payments (1)$678 (1) As of December 31, 2024, total future lease payments exclude $1.4 million of lease payments related to held for sale leases, of which $0.3 million  are due in 2025.Contingent ConsiderationDuring fiscal year 2019 the Company recorded contingent consideration related to the 2019 acquisition of Enteris and sharing of certain milestone and royalties due to Enteris pursuant to the License Agreement. Contingent consideration is remeasured to fair value at each reporting date until the contingency is resolved, with changes in the estimated fair value recognized in earnings. During the year ended December 31, 2024, it was determined the milestones and royalties pursuant to the License Agreement would not be realized as a result of non-viability of the product covered by the License Agreement. Accordingly, the Company concluded that the liability for contingent consideration, previously held at its estimated fair value of $4.9 million, should be $0. The write-off of this contingent consideration liability resulted in a gain of $4.9 million during the year ended December 31, 2024, and is included in the "Change in fair value of acquisition-related contingent consideration" caption of our consolidated statements of income.Unfunded CommitmentsAs of December 31, 2024, the Company's unfunded commitments were as follows (in millions):MedMinder Systems, Inc.$2.5 Relief3.3 Total unfunded commitments$5.8 Per the terms of the royalty purchase or credit agreements, unfunded commitments are contingent upon reaching an established revenue threshold or other performance metrics on or before a specified date or period of time, and in the case of loan transactions, are subject to being advanced as long as an event of default does not exist.LitigationThe Company is involved in, or has been involved in, arbitrations or various other legal proceedings that arise from the normal course of its business. The ultimate outcome of any litigation is uncertain, and either unfavorable or favorable outcomes could have a material impact on the Company