Company: HROW
Filing Date: 2025-03-27
Form Type: 10-K
Source: 0001641172-25-000925
Chunk: 42

Company: HARROW, INC.
Filing Date: 2025-03-27
Form: 10-K
Item: Item 1
Chunk 42
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and availability of our information technology systems, network-connected control systems and/or our data, interrupt the operation of
our business and/or affect our reputation.

To
achieve our business objectives, we rely on sophisticated information technology systems, including hardware, software, technology infrastructure,
online sites and networks for both internal and external operations, mobile applications, cloud services and network-connected control
systems, some of which are managed, hosted, provided or serviced by third parties. Internal or external events that compromise the confidentiality,
integrity and availability of our systems and data may significantly interrupt the operation of our business, result in significant costs
and/or adversely affect our reputation.

Our
information technology systems are highly integrated into our business, including our customer service infrastructure, R&D efforts,
clinical and commercial manufacturing processes and product sales and distribution processes. Further, as the large part of our employees
work remotely for some portion of their jobs, our reliance on our third-party information technology systems has increased substantially
and is expected to continue to increase. Remote and hybrid working arrangements can increase cybersecurity risks due to the challenges
associated with managing remote computing assets and security vulnerabilities that are present in many non-corporate and home networks.
The complexity and interconnected nature of software, hardware and our systems make them vulnerable to breakdown or other service interruptions,
and to software errors or defects, misconfiguration and other security vulnerabilities. Upgrades or changes to our systems or the software
that we use have resulted and we expect, in the future, will result in the introduction of new cybersecurity vulnerabilities and risks.
Our systems are also subject to frequent perimeter network reconnaissance and scanning, phishing and other cyberattacks. As the cyber-threat
landscape evolves, these attacks are growing in frequency, sophistication, and intensity, and are becoming increasingly difficult to
detect and increasingly sophisticated in using techniques and tools—including artificial intelligence—that circumvent security
controls, evade detection and remove forensic evidence. Such attacks could include the use of harmful and virulent malware, including
ransomware or other denials of service, which can be deployed through various means, including the software supply chain, e-mail, malicious
websites and/or the use of social engineering/phishing.

We
have experienced attacks against our network, although none that have had a material adverse impact to our business. In November 2024,
we became aware of a cybersecurity incident that involved unauthorized access of an employee’s email account. Through this unauthorized
access the threat actor was able to fraudulently divert Company funds to its bank account. We detected