Company: HROW
Filing Date: 2025-03-27
Form Type: 10-K
Source: 0001641172-25-000925
Chunk: 637

Company: HARROW, INC.
Filing Date: 2025-03-27
Form: 10-K
Item: Item 3
Chunk 637
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 be accurate and our plans may change.
We may also sell some or all of our ownership interests in Surface, Melt or our other subsidiaries

In January 2026 the Oaktree
Loan matures which totals $107,500,000 principal amount outstanding at December 31, 2024. The maturity of this debt obligation could
raise substantial doubt about our ability to continue as a going concern. We are currently in discussions with our current senior
secured lender, Oaktree, and other potential lenders about refinancing the Oaktree Loan. Management expects to move into more
definitive discussions and negotiations with Oaktree and potential lenders in the summer and fall of 2025. Management believes it is
probable that we will be able to refinance its Oaktree Loan based on our collateral strength and expected cash flows from operations; however, there can be no assurance that we will obtain the refinancing
on terms acceptable to us, or at all. If we are unable to successfully refinance the Oaktree Loan, we do not expect to have the
ability to repay the Oaktree Loan in full. We believe that one of the other alternatives available to us is the sale of one or more
of our assets. There can be no assurance that any sale could be completed on a timely basis or on terms acceptable to us.

 61 

We may acquire new products,
product candidates and/or businesses and, as a result, we may need significant additional capital to support our business plan and fund
our proposed business operations. We may receive additional proceeds from the exercise of stock purchase warrants that are currently
outstanding. We may also seek additional financing from a variety of sources, including other equity or debt financings, funding from
corporate partnerships or licensing arrangements, sales of assets or any other financing transaction. If we issue equity or convertible
debt securities to raise additional funds, our existing stockholders may experience substantial dilution, and the newly issued equity
or debt securities may have more favorable terms or rights, preferences and privileges senior to those of our existing stockholders.
If we raise additional funds through collaboration or licensing arrangements or sales of assets, we may be required to relinquish potentially
valuable rights to our product candidates or proprietary technologies or formulations, or grant licenses on terms that are not favorable
to us. If we raise funds by incurring additional debt, we may be required to pay significant interest expenses and our leverage relative
to our earnings or to our equity capitalization may increase. Obtaining commercial loans