Company: HROW
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0001641172-25-009263
Chunk: 68

Company: HARROW, INC.
Filing Date: 2025-05-08
Form: 10-Q
Item: Item 2
Chunk 68
---
udited
condensed consolidated financial statements included in this Quarterly Report.

Item 3. Quantitative and Qualitative Disclosures About Market Risk

 Interest Rate Risk

We are exposed to market risk
related to changes in interest rates on our cash and cash equivalents and the Oaktree Loan. We do not utilize derivative financial instruments
or other market risk-sensitive instruments to manage our exposure to interest rate changes.

We believe our interest rate
risk related to our cash and cash equivalents is not material as our risk is that interest rates fall. Based on the current interest rates,
we do not have a significant downside risk of a drop in interest rates.

The interest rate risk related
to the Oaktree Loan is based on the Secured Overnight Financing Rate (“SOFR”) plus an interest rate spread of 6.5% per annum.
A hypothetical increase of 100 basis points in SOFR would impact our interest expense by $1,075,000 per annum based on the outstanding
balance under the Oaktree Loan as of March 31, 2025.

 31 

Item 4. Controls and Procedures

Evaluation of Disclosure Controls and Procedures

We maintain disclosure controls
and procedures that are designed to ensure that information required to be disclosed in our reports filed or submitted pursuant to the
Securities Exchange Act of 1934, as amended (the “Exchange Act”), is recorded, processed, summarized and reported within the
time periods specified in the rules and forms of the SEC, and that such information is accumulated and communicated to our management,
including our principal executive officer and principal financial officer, as appropriate, to allow for timely decisions regarding required
disclosure.

Under the supervision and
with the participation of our principal executive officer and principal financial officer, our management conducted an evaluation of our
disclosure controls and procedures, as such term is defined under Rule 13a-15(e) promulgated under the Exchange Act, as they existed on
March 31, 2025. Based on this evaluation, our principal executive officer and principal financial officer have concluded that our disclosure
controls and procedures were effective to achieve their stated purpose as of March 31, 2025, the end of the period covered by this Quarterly
Report.

Changes in Internal Control over Financial Reporting

There has been no change in
our internal control over financial reporting (as defined in Rule 13a-15(f) under the Exchange Act) during the quarter ended March 31,
2025, that has materially affected, or is reasonably