Company: HROW
Filing Date: 2025-08-11
Form Type: 10-Q
Source: 0001641172-25-022980
Chunk: 81

Company: HARROW, INC.
Filing Date: 2025-08-11
Form: 10-Q
Item: Item 2
Chunk 81
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 three and six months ended June 30, 2024, we recorded a loss of $(1,923,000) and $(3,171,000), respectively, related to the change
in fair market value of common stock of Eton Pharmaceuticals, Inc. (“Eton”) at the time of its sale, including trading expenses
and commissions of approximately $436,000. In April 2024, we sold all of our shares of Eton.

Liquidity
and Capital Resources

Liquidity

Our
cash on hand at June 30, 2025 was $52,963,000, compared to $47,247,000 at December 31, 2024.

As
of the date of this Quarterly Report, we believe that cash and cash equivalents of $52,963,000 at June 30, 2025 will be sufficient to
sustain our planned level of operations and capital expenditures for at least the next 12 months. Management expects to refinance the
Oaktree Loan (as defined in Note 10 of our unaudited condensed consolidated financial statements included in this Quarterly Report) during
2025 and to refinance the 2026 Notes (as defined in Note 10 of our unaudited condensed consolidated financial statements included in
this Quarterly Report) at the same time or soon thereafter. Management believes it is probable that we will be able to refinance the
Oaktree Loan and 2026 Notes; however, there can be no assurance that we will obtain the refinancing on terms acceptable to us, or at
all - see the subheading Sources of Capital below for additional discussion regarding the Oaktree Loan, 2026 Notes and refinancing
plans. In addition, we may consider the sale of certain assets. However, we may pursue acquisitions of products, drug candidates or other
strategic transactions that involve large expenditures or we may experience growth more rapidly or on a larger scale than we expect,
any of which could result in the depletion of capital resources more rapidly than anticipated and could require us to seek additional
financing to support our operations.

We
expect to use our current cash position and funds generated from our operations and any financing to pursue our business plan, which
includes developing and commercializing drug candidates, compounded formulations and technologies, integrating and developing our operations,
pursuing potential future strategic transactions as opportunities arise, including potential acquisitions of additional drug products,
drug candidates, and/or assets or technologies, pharmacies, outsourcing facilities, drug company and