Company: HROW
Filing Date: 2025-03-27
Form Type: 10-K
Source: 0001641172-25-000925
Chunk: 588

Company: HARROW, INC.
Filing Date: 2025-03-27
Form: 10-K
Item: Item 2
Chunk 588
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ed losses and, therefore, those suspended losses must be recognized first against the value of the new preferred stock
investments. This resulted in reducing the carrying value of the Company’s investment in Melt, including the carrying value of
the Preferred Stock received, to zero (the consideration received in the form of an equivalent fair value of Melt’s Preferred Stock
to settle the full outstanding note receivable balance of $18,400,000 is offset by an equal amount of the funding of prior unrecorded
losses). Accordingly, this settlement transaction had no quantitative effect on either the Company’s consolidated balance sheet
or consolidated statement of operations for the year ended December 31, 2023.

    F-25

In accordance with ASC 323, Investments –
Equity Method and Joint Ventures, the carrying amount of the note receivable and other investments in Melt have been reduced by the
Company’s allocated share of Melt’s losses based on its ownership of Melt and its total indebtedness (see Note 2).

The unaudited condensed results of operations information
of Melt is summarized below:

 SCHEDULE
OF CONDENSED INCOME STATEMENT

    2024  
    2023 

    For the Years Ended December 31, 

    2024  
    2023 
  
    Revenues, net 
    $-  
    $- 
  
    Loss from operations 
    $(13,687,000) 
    $(7,581,000)
  
    Net loss 
    $(13,238,000) 
    $(11,271,000)

The unaudited condensed balance sheet information
of Melt is summarized below:

 SCHEDULE
OF CONDENSED BALANCE SHEET

    2024  
    2023 

    December 31, 

    2024  
    2023 
  
    Current assets 
    $3,068,000  
    $13,404,000 
  
    Total assets 
    $3,068,000  
    $13,404,000 

    Total liabilities 
    $3,008,000  
    $3,922,000 
  
    Total preferred stock and stockholders’ equity 
     60,000  
     9,482,000 
  
    Total liabilities and stockholders’ equity 
    $3,068,000  
    $13,