Company: HROW
Filing Date: 2025-11-10
Form Type: 10-Q
Source: 0001493152-25-021562
Chunk: 14

Company: HARROW, INC.
Filing Date: 2025-11-10
Form: 10-Q
Item: Item 1
Chunk 14
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 to the short-term maturities of these
instruments. Based on borrowing rates currently available to the Company, the carrying value of the operating lease liabilities approximate
their respective fair values.

Basic
and Diluted Net Income (Loss) per Common Share

Basic
net income (loss) per common share is computed by dividing net income (loss) attributable to common stockholders for the period by the
weighted average number of common shares outstanding during the period. Diluted net income (loss) per share is computed by dividing the
net income (loss) attributable to common stockholders for the period by the weighted average number of common and common equivalent shares,
such as stock options, restricted stock units (“RSUs”), performance stock units (“PSUs”), and warrants, outstanding
during the period. Common equivalent shares (using the treasury stock method) from stock options, unvested RSUs, unvested PSUs and warrants
were 1,911,979 and 4,411,488 at September 30, 2025 and 2024, respectively, and are excluded in the calculation of diluted net loss per
common share for the periods presented, because the effect is anti-dilutive. Included in the basic and diluted net income (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 ceases providing services to the Company. The number of shares underlying vested RSUs at September 30, 2025 and 2024 was 216,483
and 195,696, respectively.

The
following table shows the computation of basic net income (loss) per share of common stock:

 SCHEDULE
OF BASIC  EARNINGS PER COMMON SHARE 

    For the Three Months Ended 
September 30,  
    For the Nine Months Ended 
September 30, 

    2025  
    2024  
    2025  
    2024 

    Numerator – net income (loss) 
    $1,020,000  
    $(4,220,000) 
    $(11,765,000) 
    $(24,258,000)
  
    Denominator – weighted average number of shares outstanding, basic 
     37,145,440  
     35,702,200  
     36,588,163  
     35,597,409 
  
    Net income (loss