Company: HROW
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0001641172-25-009263
Chunk: 24

Company: HARROW, INC.
Filing Date: 2025-05-08
Form: 10-Q
Item: Item 1
Chunk 24
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 ACCOUNTS PAYABLE AND ACCRUED EXPENSES

    March 31,  
    December 31, 

    2025  
    2024 
  
    Accounts payable 
    $37,095,000  
    $38,762,000 
  
    Accrued interest (see Note 10) 
     1,958,000  
     2,538,000 
  
    Other accrued expenses 
     106,000  
     106,000 
  
    Total accounts payable and accrued expenses 
    $39,159,000  
    $41,406,000 

NOTE 10. DEBT

Oaktree Loan Due 2026

In March 2023, the Company
entered into a Credit Agreement and Guaranty (the “Oaktree Loan”) with Oaktree, providing for a senior secured term loan
facility to the Company with a principal amount of up to $100,000,000. Upon entering into the Oaktree Loan, the Company drew a principal
amount of $65,000,000 (“Tranche A”) from the Oaktree Loan and used the net proceeds to repay all amounts owed by the Company
pursuant to the Loan and Security Agreement the Company previously entered into with B. Riley Commercial Capital, LLC on December 14,
2022. The additional principal loan amount of up to $35,000,000 available under the Oaktree Loan (“Tranche B”) was available
to the Company upon the commercialization of TRIESENCE. Since Tranche B was not drawn by the Company on or before March 27, 2024, the
amount available under Tranche B was reduced to $30,000,000. While undrawn, the Company was required to pay a commitment fee related to
Tranche B amount equal to 2% per annum, payable quarterly. This fee was recorded within prepaid expenses and other current assets and
was being amortized on a straight-line basis over the access period.

In July 2023, the Company entered into the First
Amendment to the Oaktree Loan (the “Oaktree Amendment”). Under the Oaktree Amendment, the overall credit facility size was
increased from $100,000,000 to $112,500,000. The Company drew down a principal amount of $12,500,000 (the “Loan Increase”)
to fund the initial one-time payment associated with product acquisitions and for other working