Company: HROW
Filing Date: 2025-03-27
Form Type: 10-K
Source: 0001641172-25-000925
Chunk: 638

Company: HARROW, INC.
Filing Date: 2025-03-27
Form: 10-K
Item: Item 3
Chunk 638
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, assuming they would be available, would increase
our liabilities and future cash commitments and may impose restrictions on our activities, such as the financial and operating covenants.
Further, we may incur substantial costs in pursuing future capital and/or financing transactions, including investment banking fees,
legal fees, accounting fees, printing and distribution expenses and other costs. We may also be required to recognize non-cash expenses
in connection with certain securities we may issue, such as convertible notes and warrants, which would adversely impact our financial
results.

We may be unable to obtain financing
when necessary as a result of, among other things, our performance, general economic conditions, conditions in the pharmaceuticals and
pharmacy industries, or our operating history. In addition, the fact that we have a limited history of profitability could further impact
the availability or cost to us of future financings. As a result, sufficient funds may not be available when needed from any source or,
if available, such funds may not be available on terms that are acceptable to us. If we are unable to raise funds to satisfy our capital
needs when needed, then we may need to forego pursuit of potentially valuable development or acquisition opportunities, we may not be
able to continue to operate our business pursuant to our business plan, which would require us to modify our operations to reduce spending
to a sustainable level by, among other things, delaying, scaling back or eliminating some or all of our ongoing or planned investments
in corporate infrastructure, business development, sales and marketing and other activities, or we may be forced to discontinue our operations
entirely.

Critical Accounting Policies and Estimates

We rely on the use of estimates
and make assumptions that impact our financial condition and results. These estimates and assumptions are based on historical results
and trends as well as our forecasts of how results and trends might change in the future. Although we believe that the estimates we use
are reasonable, actual results could differ materially from these estimates.

We believe that the accounting
policies described below are critical to understanding our business, results of operations and financial condition because they involve
the use of more significant judgments and estimates in the preparation of our consolidated financial statements. An accounting policy
is deemed to be critical if it requires an accounting estimate to be made based on assumptions about matters that are highly uncertain
at the time the estimate is made, and any changes in the assumptions used in making the accounting estimates that are reasonably likely
to occur could materially impact our consolidated financial statements.

Revenue Recognition and Deferred