Company: SWKH
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0001628280-25-050155
Chunk: 21

Company: SWK Holdings Corp
Filing Date: 2025-11-06
Form: 10-Q
Item: Part I, Item 1
Chunk 21
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2025202420252024Numerator:Net income$8,780 $3,468 $16,855 $7,616 Denominator:Weighted-average shares outstanding12,117 12,318 12,184 12,417 Effect of dilutive securities— 90 — 75 Weighted-average diluted shares12,117 12,408 12,184 12,492 Basic net income per share$0.72 $0.28 $1.38 $0.61 Diluted net income per share$0.72 $0.28 $1.38 $0.61 There were no outstanding options to purchase shares of common stock for the three and nine months ended September 30, 2025. For the three and nine months ended September 30, 2024, outstanding options to purchase shares of common stock in an aggregate of approximately 160,000 and 161,000, respectively, have been excluded from the calculation of diluted net income per share, as such securities were anti-dilutive.

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Note 3. Finance Receivables

Finance receivablesFinance receivables are reported at their determined principal balances net of any unearned income, cumulative write offs charged against the allowance for credit losses, and unamortized deferred fees and costs. Unearned income and deferred fees and costs are amortized to interest income based on all cash flows expected using the effective interest method. The carrying values of finance receivables were as follows (in thousands): September 30, 2025December 31, 2024Term loans$241,634 $224,073 Royalty purchases11,502 64,936 Total before allowance for credit losses253,136 289,009 Allowance for credit losses(7,740)(11,249)Total carrying value$245,396 $277,760 Allowance for Credit LossesThe allowance for credit losses ("ACL") is management's estimate of the amount of expected credit losses over the life of the loan portfolio, or the amount of amortized cost basis not expected to be collected, at the balance sheet date. This estimate encompasses information about historical events, current conditions and reasonable and supportable economic forecasts. Determining the amount of the ACL is complex and requires extensive judgment by management about matters that are inherently uncertain. Given the current level of economic uncertainty, the complexity of the ACL estimate and level of