Company: HROW
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0001641172-25-009263
Chunk: 67

Company: HARROW, INC.
Filing Date: 2025-05-08
Form: 10-Q
Item: Item 2
Chunk 67
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ings, 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, assuming they would be available, would increase our liabilities and
future cash commitments and may impose restrictions on our activities, such as the financial and operating covenants. Further, we may
incur substantial costs in pursuing future capital and/or financing transactions, including investment banking fees, legal fees, accounting
fees, printing and distribution expenses and other costs. We may also be required to recognize non-cash expenses in connection with certain
securities we may issue, such as convertible notes and warrants, which would adversely impact our financial results.

We may be unable to obtain
financing when necessary as a result of, among other things, our performance, general economic conditions, conditions in the pharmaceuticals
and pharmacy industries, or our operating history. In addition, the fact that we have a limited history of profitability could further
impact the availability or cost to us of future financings. As a result, sufficient funds may not be available when needed from any source
or, if available, such funds may not be available on terms that are acceptable to us. If we are unable to raise funds to satisfy our capital
needs when needed, then we may need to forego pursuit of potentially valuable development or acquisition opportunities, we may not be
able to continue to operate our business pursuant to our business plan, which would require us to modify our operations to reduce spending
to a sustainable level by, among other things, delaying, scaling back or eliminating some or all of our ongoing or planned investments
in corporate infrastructure, business development, sales and marketing and other activities, or we may be forced to discontinue our operations
entirely.

Recently Issued and Adopted Accounting Pronouncements

See Note 2 to our una