Company: HROW
Filing Date: 2025-08-11
Form Type: 10-Q
Source: 0001641172-25-022980
Chunk: 94

Company: HARROW, INC.
Filing Date: 2025-08-11
Form: 10-Q
Item: Item 3
Chunk 94
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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 June 30, 2025.

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 June 30, 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 June 30, 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 June 30, 2025, that has materially affected, or is reasonably likely to materially affect, our internal control over financial
reporting.

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PART
II

OTHER
IN