Company: HROW
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0001641172-25-009263
Chunk: 12

Company: HARROW, INC.
Filing Date: 2025-05-08
Form: 10-Q
Item: Item 1
Chunk 12
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. Included
in the basic and diluted net loss per share calculation were RSUs awarded to directors that had vested, but the issuance and delivery
of the shares are deferred until the director resigns. The number of shares underlying vested RSUs at March 31, 2025 and 2024 was 199,216
and 223,928, respectively.

The following table shows the computation of basic
net loss per share of common stock for the three months ended March 31, 2025 and 2024:

 SCHEDULE
OF BASIC AND DILUTED EARNINGS PER COMMON SHARE

    For the Three Months Ended March 31, 

    2025  
    2024 

    Numerator – net loss 
    $(17,780,000) 
    $(13,565,000)
  
    Denominator – weighted average number of shares outstanding, basic and diluted 
     35,826,452  
     35,469,638 
  
    Net loss per share, basic and diluted 
    $(0.50) 
    $(0.38)

     9 

Income Taxes

The Company’s effective tax rate was (0)%
and (0.11)% for the three months ended March 31, 2025 and 2024, respectively. The Company’s effective tax rate for the three months
ended March 31, 2025 and 2024 differs from the U.S. federal statutory tax rate of 21% due to state taxes, permanent book-tax differences
related to Internal Revenue Code of 1986, as amended (“IRC”), Section 162(m) excess officer compensation limitation and share-based
compensation and the change in valuation allowance.

As of March 31, 2025 and December 31, 2024, there
were $2,860,000 and $2,858,000,
respectively, of unrecognized tax benefits included in the condensed consolidated balance sheets that would, if recognized, affect the
effective tax rate.

Accounting Guidance Issued but Not Adopted at March 31, 2025

In October 2023, FASB
issued ASU 2023-06, Disclosure Improvements—Codification Amendments in Response to the SEC’s Disclosure Update and
Simplification Initiative. This ASU modifies the disclosure or presentation requirements of a variety of topics in the codification
by aligning them with the SEC’s regulations. The amendments to