Company: HROW
Filing Date: 2025-11-10
Form Type: 10-Q
Source: 0001493152-25-021562
Chunk: 31

Company: HARROW, INC.
Filing Date: 2025-11-10
Form: 10-Q
Item: Item 1
Chunk 31
---
5% per annum, and included an exit fee equal to 3.5% of the aggregate principal amount owed, payable at maturity. In addition
to the exit fee, the Oaktree Loan required a make-whole premium to be paid on early principal amount payments prior to its maturity in
January 2026. The exit fee of $3,763,000 was recorded as a debt discount.

In
September 2025, the Company repaid the $107,500,000 principal balance owed under the Oaktree Loan and all accrued interest as of the
date the loan was repaid. In connection with the loan repayment, the Company agreed to pay an exit fee and a make-whole premium to Oaktree.
During the three and nine months ended September 30, 2025, the Company recorded the unaccrued exit fee of $268,000, make-whole premium
of $1,861,000, and write-off of unamortized debt issuance costs of $1,289,000 as a loss on debt extinguishment of $3,418,000
in the aggregate.

    18

Interest
expense related to the Oaktree Loan totaled $3,141,000 and $10,826,000 for the three and nine months ended September 30, 2025, respectively,
and included the amortization of debt issuance costs and discount of $745,000 and $2,567,000, respectively. Interest expense related
to the Oaktree Loan totaled $3,026,000 and $8,923,000 for the three and nine months ended September 30, 2024, respectively, and included
the amortization of debt issuance costs and discount of $656,000 and $1,861,000, respectively.

HROWL
– 8.625% Senior Notes Due 2026 – Paid in Full

In
April 2021, the Company closed an offering of $50,000,000 aggregate principal amount of 8.625% senior notes due 2026. In May 2021, the
Company issued an additional $5,000,000 of such notes pursuant to the full exercise of the underwriters’ option to purchase additional
notes, and in September 2021, the Company sold an additional $20,000,000 aggregate principal amount of such notes (collectively, the
“2026 Notes”).

In
September 2025, the Company fully repaid the principal balance of