Company: HROW
Filing Date: 2025-08-11
Form Type: 10-Q
Source: 0001641172-25-022980
Chunk: 63

Company: HARROW, INC.
Filing Date: 2025-08-11
Form: 10-Q
Item: Item 1
Chunk 63
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 about our ability to continue as a going concern. We are currently in discussions with
our current senior secured lender, Oaktree, and other potential lenders about refinancing the Oaktree Loan and the 2026 Notes. Management
believes it is probable that we will be able to refinance the Oaktree Loan and the 2026 Notes based on our collateral strength and expected
cash flows from operations; however, there can be no assurance that we will obtain the refinancing on terms acceptable to us, or at all.
We believe that one of the other alternatives available to us is the sale of one or more of our assets. There can be no assurance that
any sale could be completed on a timely basis or on terms acceptable to us. If we are unable to successfully refinance the Oaktree Loan
and the 2026 Notes or sell assets to raise sufficient capital, we do not expect to have the ability to repay the Oaktree Loan and the
2026 Notes in full.

We
may acquire new products, product candidates and/or businesses and, as a result, we may need significant additional capital to support
our business plan and fund our proposed business operations. We may also seek additional financing from a variety of sources, including
other equity or debt financings, funding from corporate partnerships or licensing arrangements, sales of assets or any other financing
transaction. If we issue equity or convertible debt securities to raise additional funds, our existing stockholders may experience substantial
dilution, and the newly issued equity or debt securities may have more favorable terms or rights, preferences and privileges senior to
those of our existing stockholders. If we raise additional funds through collaboration or licensing arrangements or sales of assets,
we may be required to relinquish potentially valuable rights to our product candidates or proprietary technologies or formulations, or
grant licenses on terms that are not favorable to us. If we raise funds by incurring additional debt, we may be required to pay significant
interest expenses and our leverage relative to our earnings or to our equity capitalization may increase. Obtaining commercial loans,
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