Company: HROW
Filing Date: 2025-08-11
Form Type: 10-Q
Source: 0001641172-25-022980
Chunk: 62

Company: HARROW, INC.
Filing Date: 2025-08-11
Form: 10-Q
Item: Item 1
Chunk 62
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 of the period 
     47,247,000  
     74,085,000 
  
    Cash and cash equivalents at end of the period 
    $52,963,000  
    $70,968,000 

34

Operating
Activities

Net
cash provided by (used in) operating activities during the six months ended June 30, 2025 was $18,865,000 compared to $(7,374,000) during
the same period in the prior year. The increase in net cash provided by operating activities between the periods was mainly attributed
to a decrease of $37,211,000 in accounts receivable as a result of collections during the six months ended June 30, 2025, compared to
an increase in accounts receivable of $15,631,000 during the same period in 2024.

Investing
Activities

Net
cash (used in) provided by investing activities during the six months ended June 30, 2025 was $(505,000) compared to $4,993,000 during
the same period in the prior year. Cash used in investing activities in 2025 was primarily related to equipment and software purchases.
Cash provided by investing activities in 2024 was primarily related to the sale of our investment position in Eton.

Financing
Activities

Net
cash used in financing activities during the six months ended June 30, 2025 and 2024 was $(12,644,000) and $(736,000), respectively.
Cash used in financing activities during the six months ended June 30, 2025 and 2024 was primarily related to payment of payroll taxes
upon vesting of PSUs in exchange for shares withheld from employees.

Sources
of Capital

During
the six months ended June 30, 2025, our principal sources of cash came from proceeds from our operating activities. We expect future
cash needs to be provided by operating activities, but our forecasts may not be accurate, and our plans may change. We may also sell
some of our assets.

In
January 2026 the Oaktree Loan matures and in April 2026, the 2026 Notes become due. As of June 30, 2025, there was $107,500,000 principal
amount outstanding under the Oaktree Loan and $75,000,000 principal amount of the 2026 Notes were outstanding. The maturity of these
debt obligations could raise substantial doubt