SWKH Recovers $27.8M as Elutia Sells BioEnvelope to Boston Scientific

Rhea-AI Filing Summary

SWK Holdings Corporation announced the full repayment of its loan to Elutia, receiving a $27.8 million payoff that exceeds the company’s net GAAP carrying value of $23.9 million as of June 30, 2025. The repayment follows Elutia’s sale of its BioEnvelope business to Boston Scientific for $88.0 million in cash. SWK expects to recognize approximately $1.4 million of incremental income from acceleration of exit fee recognition and approximately $1.4 million from the release of loan loss reserves, reflecting a net benefit to the company’s reported results from this transaction.

Positive

• Full repayment of the Elutia loan for $27.8 million converting a credit exposure into cash
• Payoff exceeds GAAP carrying value ($27.8M vs $23.9M), indicating a recovery above recorded asset value
• Expected incremental income of about $1.4M from accelerated exit fee recognition and $1.4M from released loan loss reserves

Negative

• None.

Insights

Financial Analyst

TL;DR: Recovery above carrying value boosts near-term income by roughly $2.8 million and improves realized asset recovery.

The $27.8 million payoff exceeding a $23.9 million GAAP carrying value implies an immediate recovery benefit. The company’s guidance that it will record about $1.4 million from accelerated exit fee recognition and $1.4 million from released loan loss reserves points to a roughly $2.8 million incremental pre-tax uplift tied directly to the payoff event. This outcome reduces credit exposure related to Elutia and converts a loan asset into cash, strengthening liquidity. The payoff is tied to a third-party divestiture of Elutia’s BioEnvelope business for $88.0 million, which appears to be the liquidity source for the repayment.

M&A Specialist

TL;DR: Divestiture-driven repayment confirms third-party transaction funded the loan payoff and realizes value above carrying amount.

The sale of Elutia’s BioEnvelope business to Boston Scientific for $88.0 million produced cash proceeds that led to SWK’s full repayment. From an M&A perspective, the borrower’s strategic sale enabled lenders to exit at a premium to carrying value, which is a favorable resolution for SWK. The announced components of income—acceleration of exit fees and reserve releases—are consistent with typical loan payoff accounting and should be treated as one-time benefits tied to the disposal event rather than recurring operating income.

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of Earliest Event Reported): October 1, 2025

SWK HOLDINGS CORPORATION

(Exact Name of the Registrant as Specified in Its Charter)

Delaware

(State or Other Jurisdiction of Incorporation)

F11.001-39184			77-0435679
(Commission File Number)			(IRS Employer Identification No.)
5956 Sherry Lane, Suite 650, Dallas, TX			75225
(Address of Principal Executive Offices)			(Zip Code)

(972) 687-7250

(Registrant’s Telephone Number, Including Area Code)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))  

Securities registered pursuant to Section 12(b) of the Act:

Title of each class			Trading Symbol(s)			Name of each exchange on which registered
Common Stock, par value $0.001 per share			SWKH			The Nasdaq Stock Market LLC
9.00% Senior Notes due 2027			SWKHL			The Nasdaq Stock Market LLC

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).           Emerging growth company   

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  

Item 8.01    Other Events

On October 1, 2025, SWK Holdings Corporation (NASDAQ: SWKH), a life-science focused specialty finance company, announced the full repayment of its loan to Elutia, Inc. (“Elutia”) upon receipt of a $27.8 million payoff payment from Elutia, including outstanding principal, exit fees, and accrued interest.

This payoff follows the closing of Elutia’s previously announced sale of its BioEnvelope business to Boston Scientific Corporation for $88.0 million in cash.

The $27.8 million payoff exceeds the Company’s net GAAP carrying value of $23.9 million as of June 30, 2025.The Company expects to recognize approximately $1.4 million of incremental income from the acceleration of exit fee recognition and $1.4 million from the release of loan loss reserves.

Safe Harbor for Forward-Looking Statements

This Current Report on Form 8-K contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including the Company's expectations regarding recognition of incremental income as a result of the payoff of the Elutia loan. Statements including words such as "believes," "expects," "anticipates," "intends," "estimates," "plan," "will," "may," "look forward," "intend," "guidance," "future" or similar expressions are forward-looking statements. Because these statements reflect the Company's current views, expectations and beliefs concerning future events, these forward-looking statements involve risks and uncertainties. Investors should note that many factors, as more fully described under the caption "Risk Factors" and elsewhere in the Company's Form 10-K, Form 10-Q and Form 8-K filings with the Securities and Exchange Commission and as otherwise enumerated herein, could affect the Company's future financial results and could cause actual results to differ materially from those expressed in such forward-looking statements. The forward-looking statements in this Current Report on Form 8-K are qualified by these risk factors. These are factors that, individually or in the aggregate, could cause the Company's actual results to differ materially from expected and historical results. You should not place undue reliance on any forward-looking statements, which speak only as of the date they are made. The Company assumes no obligation to publicly update any forward-looking statements, whether as a result of new information, future developments or otherwise.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

SWK HOLDINGS CORPORATION
By:			/s/ Joe D. Staggs
			Joe D. Staggs
			President and Chief Executive Officer

Date: October 1, 2025

FAQ

What amount did SWK Holdings (SWKH) receive to repay the Elutia loan?

SWK received a $27.8 million payoff payment that satisfied the full repayment of the loan.

How did the $27.8 million payoff compare to SWK's carrying value for the loan?

The payoff exceeded SWK’s net GAAP carrying value of $23.9 million as of June 30, 2025.

What caused Elutia to repay the loan to SWK?

Elutia repaid the loan following the sale of its BioEnvelope business to Boston Scientific for $88.0 million in cash.

How much incremental income does SWK expect to record from the payoff?

The company expects to recognize about $1.4 million from accelerated exit fee recognition and $1.4 million from release of loan loss reserves.

Does the filing include forward-looking statements or cautionary language?

Yes. The report includes a Safe Harbor statement noting forward-looking language and risks that could cause actual results to differ.