Company: HROW
Filing Date: 2025-03-27
Form Type: 10-K
Source: 0001641172-25-000925
Chunk: 969

Company: HARROW, INC.
Filing Date: 2025-03-27
Form: 10-K
Item: Item 5
Chunk 969
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 deferred investment accounts up to 100% of their salary, subject to annual limits. The Company makes certain matching contributions
to the plan in amounts up to 4% of the participants’ annual cash compensation, subject to annual limits. The Company contributed
approximately $953,000 and $594,000 to the plan during the years ended December 31, 2024 and 2023, respectively.

NOTE 18. COMMITMENTS
AND CONTINGENCIES

Legal

General and Other

In the ordinary course of business, the Company is
involved in various legal proceedings, government investigations and other matters that are complex in nature and have outcomes that
are difficult to predict. See also Part I, Item 1A. Risk Factors. The Company describes legal proceedings and other matters
that are/were significant or that it believes could become significant in this footnote.

The Company records accruals for loss contingencies
to the extent that it concludes it is probable that a liability has been incurred and the amount of the related loss can be reasonably
estimated. The Company evaluates, on a quarterly basis, developments in legal proceedings and other matters that could cause an increase
or decrease in the amount of a liability that has been accrued previously.

The Company’s legal proceedings involve
various aspects of its business and a variety of claims, some of which present novel factual allegations and/or unique legal
theories. Typically, a number of the matters pending against the Company are at early stages of the legal process, which in complex
proceedings of the sort the Company face often extend for several years. While it is not possible to accurately predict or determine
the eventual outcomes of matters that have not concluded, an adverse determination in one or more of these matters (whether
discussed in this footnote or not) currently pending may have a material adverse effect on the Company’s consolidated results
of operations, financial position or cash flows. Legal costs incurred for loss contingencies are expensed as incurred.

Certain recent developments concerning the Company’s
legal proceedings it believes are or were material to its business and other matters are discussed below:

Ocular Science, Inc. et. al

In July 2021, ImprimisRx,
LLC, a subsidiary of the Company, filed a lawsuit against Ocular Science, Inc. and OSRX, Inc. (together, “OSRX”) in the U.S.
District Court for the Southern District of California, asserting claims for copyright infringement, trademark infringement, unfair competition
and false