Company: HROW
Filing Date: 2025-03-27
Form Type: 10-K
Source: 0001641172-25-000925
Chunk: 155

Company: HARROW, INC.
Filing Date: 2025-03-27
Form: 10-K
Item: Item 1
Chunk 155
---
 statements based upon their estimated fair values. The Company uses
the Black-Scholes-Merton option pricing model and Monte Carlo simulation model to estimate the fair value of stock-based awards. The
estimated fair value is determined at the date of grant. The financial statement effect of forfeitures is estimated at the time of grant
and revised, if necessary, if the actual effect differs from those estimates. The Company provides newly issued shares of common stock
to satisfy the exercise and vesting for stock-based compensation awards.

Basic and Diluted Net Loss per Common Share

Basic net loss per common share is computed by dividing
net loss attributable to Harrow, Inc. for the year by the weighted average number of common shares outstanding during the year. Diluted
net loss per share is computed by dividing the net loss attributable to Harrow, Inc. for the year by the weighted average number of common
and common equivalent shares, such as stock options, RSUs, PSUs, and warrants, outstanding during the year.

Common stock equivalents (using the treasury stock
or “if converted” method) from stock options, unvested RSUs, and unvested PSUs were 4,390,124 and 4,642,259 at December 31,
2024 and 2023, respectively, and are excluded in the calculation of diluted net loss per share for the periods presented, because the
effect is anti-dilutive for that time period. Included in the basic and diluted net 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 resigns. The number of shares underlying
vested RSUs at December 31, 2024 and 2023 was 211,020 and 215,539, respectively.

The following table shows the computation of basic
and diluted net loss per share of common stock for the years ended December 31, 2024 and 2023:

 SCHEDULE
OF BASIC AND DILUTED EARNINGS PER COMMON SHARE

    For the Years Ended December 31, 

    2024  
    2023 

    Numerator – net loss 
    $(17,481,000) 
    $(24,411,000)
  
    Denominator – weighted average number of shares outstanding, basic and diluted 
     35,650,714  
     32,616,777 
  
    Net loss per share, basic and diluted