Company: HROW
Filing Date: 2025-11-10
Form Type: 10-Q
Source: 0001493152-25-021562
Chunk: 16

Company: HARROW, INC.
Filing Date: 2025-11-10
Form: 10-Q
Item: Item 1
Chunk 16
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 tax benefits included
in the condensed consolidated balance sheets that would, if recognized, affect the effective tax rate.

On
July 4, 2025, the United States enacted the One Big Beautiful Bill Act (“OBBBA”), which, among other provisions, permanently
restores 100% bonus depreciation and modifies the limitation on business-interest expense under §163(j) to be based on taxable income
before interest, amortization, and depreciation. Based on preliminary analysis, management expects OBBBA to reduce U.S. cash income-tax
payments. There is not expected to be any impact on the effective tax rate. The Company is continuing to evaluate OBBA’s impacts,
including potential effects on deferred-tax balances, and will refine these estimates as additional guidance becomes available.

    10

Accounting
Guidance Issued but Not Adopted at September 30, 2025

In
October 2023, FASB issued ASU 2023-06, Disclosure Improvements—Codification Amendments in Response to the SEC’s Disclosure
Update and Simplification Initiative. This ASU modifies the disclosure or presentation requirements of a variety of topics in the
codification by aligning them with the SEC’s regulations. The amendments to the various topics should be applied prospectively,
and the effective date for the Company for each amendment will be determined based on the effective date of the SEC’s removal of
the related disclosure from Regulation S-X or Regulation S-K. If the SEC has not removed the applicable requirement by June 30, 2027,
then the related amendment in ASU 2023-06 will be removed from the codification and will not become effective. Early adoption of this
ASU is prohibited. The Company does not expect the amendments in this ASU to have a material impact on the disclosures or presentation
in its consolidated financial statements.

In
December 2023, FASB issued ASU 2023-09, Income Taxes (Topic 740) - Improvements to Income Tax Disclosures, which enhances the
disclosures required for income taxes in the Company’s annual consolidated financial statements. Notably, this ASU requires entities
to disclose specific categories in the effective tax rate reconciliation and provide additional information for reconciling items that
meet a quantitative threshold. ASU 2023-09 is effective for the Company in its annual reporting for fiscal year 2025 on a prospective
basis. Early adoption and retrospective reporting are permitted. The Company is currently evaluating the impact of AS