Company: SWKH
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0001628280-25-050155
Chunk: 78

Company: SWK Holdings Corp
Filing Date: 2025-11-06
Form: 10-Q
Item: Part I, Item 8
Chunk 78
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erivative 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.

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The Company used 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. During April 2025, the Company sold the related royalty finance receivable as part of the Transaction (See Note 3). As a result, the Company terminated its foreign currency forward contract and received a cash payment of $1.6 million. The foreign currency forward contract was not designated as a hedging instrument, and changes in fair value were recognized in earnings. The foreign currency forward contract was recorded in other non-current assets in the condensed consolidated balance sheet as of December 31, 2024 and totaled $2.5 million. Prior to the termination of the foreign currency forward contract the Company recognized a loss of $0.9 million for the nine months ended September 30, 2025 due to changes in fair value related to its foreign currency forward contract. During the three and nine months ended September 30, 2024, the Company recognized a loss of $1.0 million and a gain of $0.6 million, respectively, due to changes in fair value related to its foreign currency forward contract.The following table presents financial assets measured at fair value on a recurring basis as of September 30, 2025 (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$7,599 $— $— $7,599 Marketable investments275 275 — — 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