Company: SWKH
Filing Date: 2025-03-20
Form Type: 10-K
Source: 0001628280-25-013989
Chunk: 114

Company: SWK Holdings Corp
Filing Date: 2025-03-20
Form: 10-K
Item: Item 1B
Chunk 114
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 Financial liabilitiesContingent consideration payable$4,900 $4,900 $— $— $4,900 

Note 12. Revenue Recognition

As of December 31, 2024, Enteris (Pharmaceutical Development Segment) is classified as held for sale. The Company's Pharmaceutical Development segment recognizes revenues received from contracts with its customers by revenue source, as we believe it best depicts the nature, amount, timing and uncertainty of our revenue and cash flow. The Company's Finance Receivables segment does not have any revenues received from contracts with customers.The following table provides the contract revenue recognized by revenue source for the years ended December 31, 2024 and 2023 (in thousands):December 31,20242023Pharmaceutical Development SegmentLicense Agreement$49 $273 Pharmaceutical development and other3,567 931 Total contract revenue$3,616 $1,204 The Company’s contract liabilities represent advance consideration received from customers and are recognized as revenue when the related performance obligation is satisfied.The Company’s contract liabilities are presented as deferred income as of  December 31, 2024 in the consolidated balance sheets (in thousands): December 31,2024Pharmaceutical Development SegmentBalance at January 1, 2024$9 Income recognized(9)Deferred income1,500 Balance at December 31, 2024$1,500 During the year ended December 31, 2024, the Company recognized the full remaining balance of $9 thousand of 2023 deferred income from satisfaction of performance obligations. The Company did not have any contract assets as of December 31, 2024 or December 31, 2023.Enteris Exclusive Option and Asset Purchase AgreementWith an effective date of January 1, 2024, we entered into an Option and Asset Purchase Agreement with a strategic partner on March 14, 2024, which granted the strategic partner an exclusive option to acquire certain of Enteris’ assets related to its business of providing good manufacturing practice (GMP) manufacturing and clinical supply services through Phase 1 and 2 to third parties, subject to certain exclusions. The strategic partner must exercise the Option by or before January 1, 2026. As of December 31, 2024, 

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Enteris is classified as held for sale as the Option is expected to be exercised within the next 12-months - see Note 7 for further details.