Company: HROW
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0001641172-25-009263
Chunk: 8

Company: HARROW, INC.
Filing Date: 2025-05-08
Form: 10-Q
Item: Item 1
Chunk 8
---
 for the three
months ended March 31, 2025 to the significant accounting policies described in the Company’s Annual Report on Form 10-K for the
year ended December 31, 2024.

Risks, Uncertainties and Liquidity

The Company is subject to certain regulatory standards,
approvals, guidelines and inspections which could impact the Company’s ability to make, dispense, and sell certain products. If
the Company was required to cease compounding and selling certain products as a result of regulatory guidelines or inspections, this may
have a material impact on the Company’s financial condition, liquidity and results of operations.

Liquidity

The Oatree Loan (as defined in Note 11) totaling
$107,500,000 principal at March 31, 2025 and the 2026 Notes (as defined in Note 11) totaling $75,000,000 in principal amount outstanding
at March 31, 2025 become due in January 2026 and April 2026, respectively. The maturity of these debt obligations prior to their maturities
without a refinancing event could raise substantial doubt about the Company’s ability to continue as a going concern.

The Company is currently in discussions with its
current senior lender, Oaktree Fund Administration, LLC, as administrative agent for the lenders (together, “Oaktree”), and
other potential lenders about refinancing the Oaktree Loan and the 2026 Notes. Management expects to engage in more definitive discussions
and negotiations with Oaktree and other potential lenders in the summer and fall of 2025. Management believes it is probable that the
Company will be able to refinance the Oaktree Loan and the 2026 Notes based on the Company’s collateral strength and expected cash
flows from operations; however, there can be no assurance that the Company will be able to refinance the indebtedness on terms acceptable
to it, or at all.

     7 

Management believes that one of the other alternatives
available to it in lieu of refinancing the Oaktree Loan and the 2026 Notes is the sale of one or more of the Company’s assets. There
can be no assurance that any sale could be completed on a timely basis or on terms acceptable to the Company. If the Company is unable
to successfully refinance the Oaktree Loan and the 2026 Notes, or sell certain assets, the Company does not expect to have the ability
to repay the Oaktree Loan and the 202