Company: HROW
Filing Date: 2025-03-27
Form Type: 10-K
Source: 0001641172-25-000925
Chunk: 1041

Company: HARROW, INC.
Filing Date: 2025-03-27
Form: 10-K
Item: Item 6
Chunk 1041
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 Eton was $8,681,000.

The Company’s 2026 Notes (as defined in Note 13) are carried at face value, including the unamortized premium, less unamortized
debt issuance costs, the 2027 Notes (as defined in Note 13) are carried at face value less unamortized debt issuance costs, and the Oaktree
Loan (as defined in Note 13) is carried at face value less the original issue discount and unamortized debt issuance costs on the consolidated
balance sheets and the Company presents fair value for disclosure purposes only. The 2026 Notes and 2027 Notes are classified as Level
1 instruments as the fair value is determined using quoted market prices in active markets for the same securities. The Oaktree Loan
is classified as a Level 2 instrument and its fair value is determined through an income approach that considers collateral coverage,
yield calibration, yield analysis and any adjustments to implied yield associated with the Company’s fundamental measures.

The following table presents the estimated fair values
and the carrying values:

 SCHEDULE
OF ESTIMATED FAIR VALUE

    December 31, 

    2024  
    2023 

    Carrying Value  
    Fair Value  
    Carrying Value  
    Fair Value 
  
    2026 Notes 
    $74,002,000  
    $75,840,000  
    $73,218,000  
    $70,260,000 
  
    2027 Notes 
    $38,130,000  
    $42,198,000  
    $37,413,000  
    $40,363,000 
  
    Oaktree Loan 
    $107,407,000  
    $112,932,000  
    $75,254,000  
    $78,633,000 

The Company’s other financial instruments include
cash and cash equivalents, accounts receivable, accounts payable and accrued expenses, accrued payroll and related liabilities, deferred
revenue and customer deposits and operating lease liabilities. The carrying amount of these financial instruments, except for operating
lease liabilities, approximates fair value due to the short-term maturities of these instruments. Based on borrowing rates currently
available to the Company, the carrying values of the operating lease liabilities approximate their respective fair values.

    F-17

Stock-Based Compensation

All stock-based payments to employees