Company: HROW
Filing Date: 2025-03-27
Form Type: 10-K
Source: 0001641172-25-000925
Chunk: 221

Company: HARROW, INC.
Filing Date: 2025-03-27
Form: 10-K
Item: Item 1A
Chunk 221
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 1, 2020 and gave California residents expanded rights to access and
require deletion of their personal information, opt out of certain personal information sharing and receive detailed information about
how their personal information is used. The CCPA provides for civil penalties for violations, as well as a private right of action for
data breaches that may increase data breach litigation. Although the CCPA includes exemptions for certain clinical trials data, and HIPAA-protected
health information, the law may increase our compliance costs and potential liability with respect to other personal information we collect
about California residents. The CCPA has prompted a number of proposals for new federal and state privacy legislation. Other countries
also have, or are developing, laws governing the collection, use and transmission of personal information, such as the General Data Protection
Regulation (“GDPR”) in the European Union (the “EU”) that became effective in May 2018 and the Personal Information
Protection and Electronic Documents Act that became effective in Canada in April 2000. We anticipate that over time we may expand our
business outside of the U.S. With such expansion, we would be subject to increased governmental regulation in the EU countries in which
we might operate, including the GDPR. These laws and similar laws adopted in the future could increase our potential liability, increase
our compliance costs and adversely affect our business. If any disruption or security breach resulted in a loss of or damage to our data
or applications or inappropriate disclosure of confidential or protected information, we could incur liability, further development of
our proprietary formulations could be delayed, and our pharmacy operations could be disrupted, subject to restriction or forced to terminate
their operations, any of which could severely harm our business and prospects.

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A breakdown of our
information technology systems, or a cyberattack or information security breach could significantly compromise the confidentiality, integrity
and availability of our information technology systems, network-connected control systems and/or our data, interrupt the operation of
our business and/or affect our reputation.

To
achieve our business objectives, we rely on sophisticated information technology systems, including hardware, software, technology infrastructure,
online sites and networks for both internal and external operations, mobile applications, cloud services and network-connected control
systems, some of which are managed, hosted, provided or serviced by third parties. Internal or external events that compromise the confidentiality,
integrity and availability of our systems and data may significantly interrupt the operation of our business, result in significant costs
and/or adversely affect our reputation.

Our