Company: HROW
Filing Date: 2025-03-27
Form Type: 10-K
Source: 0001641172-25-000925
Chunk: 394

Company: HARROW, INC.
Filing Date: 2025-03-27
Form: 10-K
Item: Item 1B
Chunk 394
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  We are also discontinuing
another related compounded formulation called Klarity PF. Klarity PF is primarily purchased by a concentrated group of customers
who we expect to accept our FRESHKOTE product as an alternative. As we work through Project Beagle, we will continue to
review opportunities to reduce the size of our compounded formulary, improve and simplify our compounding capabilities, and
transition other ImprimisRx customers from compounded formulations to Harrow’s FDA-approved products.

Cybersecurity Incident

In November
2024, we became aware of a cybersecurity incident that involved unauthorized access of an employee’s email account. Through this
unauthorized access the threat actor was able to fraudulently divert Company funds to its bank account. We detected the incident in a
timeframe management believes minimized any financial, operational or reputational risk to the Company, and at no point was our ability
to generate revenues disrupted.

 55 

TRIESENCE Re-Launch,
Oaktree Second Amendment and Draw

In
October 2024, we announced the re-launch of TRIESENCE following the successful manufacturing of three process performance
qualification batches of the product. In March 2025, we announced TRIESENCE was granted temporary pass-through reimbursement status
to be made effective April 1, 2025. In connection with the re-launch, during October 2024 we made a one-time payment of $37,000,000
to Novartis Technology, LLC and Novartis Innovative Therapies AG (together, “Novartis”) pursuant to terms of an asset
purchase agreement between Novartis and the Company. Also, during October 2024, we entered into the Second Amendment (the
“Second Amendment”) to the Credit Agreement and Guaranty originally entered into on March 27, 2023, as amended by that
certain First Amendment to Credit Agreement and Guaranty and Consent, dated as of July 18, 2023 (as amended, the “Oaktree
Loan”), with the lenders from time to time party thereto and Oaktree Fund Administration, LLC, as administrative agent for the
lenders (together “Oaktree”). Upon satisfaction of certain conditions to funding, the Company drew down the principal
amount of $30,000,000 (the “$30,000,000 Draw”) under a pre-existing commitment under the Oaktree Loan to partially fund
the one-time payment to Novartis.

In the