Company: SWKH
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001628280-25-040420
Chunk: 84

Company: SWK Holdings Corp
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 8
Chunk 84
---
612 Fair value - June 30, 2024$835 

21

The Company holds warrants issued to the Company in conjunction with certain term loan investments. These warrants meet the definition of a derivative and are included in the unaudited condensed consolidated balance sheets. The fair values for warrants outstanding, which do not have a readily determinable value, are measured using the Black-Scholes option pricing model. The following ranges of assumptions were used in the models to determine fair value:June 30, 2025December 31, 2024Dividend rate range— — Risk-free rate range3.7% to 4.0% 4.2% to 4.5%Expected life (years) range1.4 to 6.61.9 to 6.9Expected volatility range62.9% to 170.8%56.0% to 177.7%The warrant assets are valued using a market approach and include significant unobservable inputs such as risk-free rate, expected life, and expected volatility. As of June 30, 2025 the risk-free rate range weighted average was 4.0%, and had a median of 3.8%. As of December 31, 2024, the risk-free rate range weighted average was 4.4%, and had a median of 4.4%. As of June 30, 2025 the expected life range weighted average was 5.5 years, and had a median of 4.1 years. As of December 31, 2024 the expected life range weighted average was 5.8 years, and had a median of 4.3 years. As of June 30, 2025 the expected volatility range weighted average was 70%, and had a median of 87.0%. As of December 31, 2024 the expected volatility range weighted average was 65.6%, and had a median of 104.3%.As of June 30, 2025 and December 31, 2024, the Company had three royalties, Best, Ideal, and Flowonix that were deemed to be impaired based on reductions in carrying value. During the three and six months ended June 30, 2025, the Company recognized impairment based on a reduction in carrying value of two royalties, Flowonix and Ideal. As of December 31, 2024, the Company had one loan, BIOLASE, that was