Company: HROW
Filing Date: 2025-03-27
Form Type: 10-K
Source: 0001641172-25-000925
Chunk: 1056

Company: HARROW, INC.
Filing Date: 2025-03-27
Form: 10-K
Item: Item 6
Chunk 1056
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, 2024 and 2023, the Company was due $228,000 from
Melt for reimbursable expenses and amounts due under the Melt MSA. Melt did not make any payments to the Company during the year ended
December 31, 2024. The Company made a cash advance to Melt of $500,000 and Melt repaid the $500,000 cash advance during the year ended
December 31, 2023.

During the years ended December
31, 2024 and 2023, Melt raised over $3,300,000 and $20,586,000, respectively, in gross proceeds from third party investors related to
its Series B Preferred Stock offerings.

The Company’s Chief
Executive Officer, Mark L. Baum, is a member of the Melt board of directors. The Melt board of directors consists of five members, including
Mr. Baum. Mr. Baum is the only representative of the Company on Melt’s board of directors.

Melt Note Receivable – Settled and Terminated
in 2023

On September 1, 2021, the Company entered into a
loan and security agreement in the principal amount of $13,500,000 (the “Melt Loan Agreement”), as lender, with Melt, as
borrower. Amounts borrowed under the Melt Loan Agreement bore interest at 12.50% per annum, which interest could have been paid in-kind
at the option of Melt until the maturity date. The Melt Loan Agreement permitted Melt to pay interest only on the principal amount loaned
thereunder through the term and all amounts owed were previously due and payable on September 1, 2022. In April 2022, the Company entered
into a First Amendment and in September 2022, a Second Amendment (together, the “Amendments”) to the Melt Loan Agreement.
The Amendments (i) extended the maturity date of the Melt Loan Agreement to September 1, 2023, which could have been extended further
to September 1, 2026 upon Melt completing a qualifying financing of a minimum amount of $10,000,000 from third-party investors, (ii)
added conditions related to minimum cash amounts following a qualifying financing, and (iii) clarified the definition of material adverse
effects. Melt could have elected to prepay all, but not less than all, of the amounts owed prior