Company: HROW
Filing Date: 2025-03-27
Form Type: 10-K
Source: 0001641172-25-000925
Chunk: 34

Company: HARROW, INC.
Filing Date: 2025-03-27
Form: 10-K
Item: Item 1
Chunk 34
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In January 2026 debt in the
amount of $107,500,000 principal amount becomes due under the Oaktree Loan. The maturity of this debt obligation without a
refinancing event could raise substantial doubt about the Company’s ability to continue as a going concern. While the Company
is currently in discussions with its current senior secured lender and other potential lenders about refinancing and management
believes it is probable that the Company will be able to refinance such amount based on the Company’s collateral strength and expected cash flows
from operations, there can be no assurance that the Company
completes a refinancing on terms acceptable to it, or at all. If the Company is unable to successfully refinance the Oaktree Loan,
the Company does not expect to have the ability to repay the amount in full. The Company believes that one of the other alternatives
available to it 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. 

 22 

We have raised over $375,000,000
in gross proceeds through equity and debt financings since 2021. We may seek to obtain additional capital through equity or debt financings,
funding from corporate partnerships or licensing arrangements, sales of assets or other financing transactions. If we issue additional
equity or convertible debt securities to raise 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 and licensing arrangements or sales of assets, we may have to relinquish potentially
valuable rights to our drug candidates or proprietary technologies, 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 those loans 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