Company: HROW
Filing Date: 2025-03-27
Form Type: 10-K
Source: 0001641172-25-000925
Chunk: 1540

Company: HARROW, INC.
Filing Date: 2025-03-27
Form: 10-K
Item: Item 9A
Chunk 1540
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 The Company has no other investments in Melt and no other requirements to advance funds to Melt.

The following table summarizes the Company’s
investments in Melt as of December 31, 2024 and 2023:

 SCHEDULE OF INVESTMENT

    Cost Basis  
    Share of Equity Method Losses  
    Net Carrying value 
  
    Common stock 
    $5,810,000  
    $(5,810,000) 
    $- 
  
    Preferred stock 
     18,397,000  
     (18,397,000) 
     - 

    $24,207,000  
    $(24,207,000) 
    $- 

At December 31, 2024 and 2023, the Company recorded
$0 and $89,000, respectively, due from Melt for reimbursable expenses and amounts due under a Management Services Agreement between
the Company and Melt (the “Melt MSA”), which are included in prepaid expenses and other current assets in the accompanying
consolidated balance sheets.

    F-14

See Note 5 for more information and related party
disclosure regarding Melt.

Investment in Surface Ophthalmics, Inc. –
Related Party

The Company owns 3,500,000 common shares of Surface
(representing approximately 20% of Surface’s equity interests following the closing of a round of financing completed by Surface
in July 2021) and uses the equity method of accounting for this investment, as management has determined that the Company has the ability
to exercise significant influence over the operating and financial decisions of Surface. Under this method, the Company recognizes earnings
and losses in Surface in its consolidated financial statements and adjusts the carrying amount of its investment in Surface accordingly.
The Company’s share of earnings and losses are based on the Company’s ownership interest of Surface. Any intra-entity profits
and losses are eliminated. During the year ended December 31, 2021, the Company reduced its common stock investment in Surface to $0
as a result of the Company recording its share of equity losses of Surface. The Company has no other investments in Surface and no other
requirements to advance funds to Surface.

The following table summarizes the Company’s
investment in Surface as of December 31, 2024 and 2023:

SCHEDULE OF INVESTMENT

    Cost Basis  
    Share of Equity Method Losses