Company: HROW
Filing Date: 2025-03-27
Form Type: 10-K
Source: 0001641172-25-000925
Chunk: 717

Company: HARROW, INC.
Filing Date: 2025-03-27
Form: 10-K
Item: Item 3
Chunk 717
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 2026 Notes are effectively subordinated in right of payment to all of the Company’s existing
and future secured indebtedness and structurally subordinated to all existing and future indebtedness of the Company’s subsidiaries,
including trade payables. The 2026 Notes bear interest at a rate of 8.625% per annum. Interest on the 2026 Notes is payable quarterly
in arrears on January 31, April 30, July 31 and October 31 of each year, commencing on July 31, 2021. The 2026 Notes will mature on April
30, 2026. The issuance costs were recorded as a debt discount and are being amortized as interest expense, net of the amortization of
the premium on note issuance, over the term of the 2026 Notes using the effective interest rate method.

Prior to February 1, 2026,
the Company may, at its option, redeem the 2026 Notes, in whole at any time or in part from time to time, at a redemption price equal
to 100% of the principal amount of the 2026 Notes to be redeemed, plus a make-whole amount, if any, plus accrued and unpaid interest
to, but excluding, the date of redemption. The Company may redeem the 2026 Notes for cash in whole or in part at any time at its option
on or after February 1, 2026 and prior to maturity, at a price equal to 100% of their principal amount, plus accrued and unpaid interest
to, but excluding, the date of redemption. On and after any redemption date, interest will cease to accrue on the redeemed Notes. The
2026 Notes trade on the Nasdaq Stock Market LLC under the symbol “HROWL”.

    F-31

Interest expense related to the 2026 Notes totaled
$7,253,000 and $7,251,000 for the years ended December 31, 2024 and 2023, respectively, and included amortization of debt issuance
costs and discount of $784,000, and $782,000 for the years ended December 31, 2024 and 2023, respectively.

B. Riley Loan and Security
Agreement – Paid in Full

On December 14, 2022 (the
“Effective Date”), the Company entered into a Loan and Security Agreement (the “BR Loan”) with B. Riley Commercial
Capital,