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

Company: HARROW, INC.
Filing Date: 2025-08-11
Form: 10-Q
Item: Item 1
Chunk 11
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 is subject to certain regulatory standards, approvals, guidelines and inspections which could impact the Company’s ability
to make, dispense, and sell certain products. If the Company was required to cease compounding and selling certain products as a result
of regulatory guidelines or inspections, this may have a material impact on the Company’s financial condition, liquidity and results
of operations.

    7

Liquidity

The
Oaktree Loan (as defined in Note 10) totaling $107,500,000 principal at June 30, 2025 and the 2026 Notes (as defined in Note 10) totaling
$75,000,000 in principal amount outstanding at June 30, 2025 become due in January 2026 and April 2026, respectively. The maturity of
these debt obligations prior to their maturities without a refinancing event could raise substantial doubt about the Company’s
ability to continue as a going concern.

The
Company is currently in discussions with its current senior lender, Oaktree Fund Administration, LLC, as administrative agent for the
lenders (together, “Oaktree”), and other potential lenders about refinancing the Oaktree Loan and the 2026 Notes. Management
believes it is probable that the Company will be able to refinance the Oaktree Loan and the 2026 Notes based on the Company’s collateral
strength and expected cash flows from operations; however, there can be no assurance that the Company will be able to refinance the indebtedness
on terms acceptable to it, or at all.

Management
believes that one of the other alternatives available to it in lieu of refinancing the Oaktree Loan and the 2026 Notes is the sale of
one or more of the Company’s assets. There can be no assurance that any sale could be completed on a timely basis or on terms acceptable
to the Company. If the Company is unable to successfully refinance the Oaktree Loan and the 2026 Notes, or sell assets to raise sufficient
capital, the Company does not expect to have the ability to repay the Oaktree Loan and the 2026 Notes in full.

The
accompanying condensed consolidated financial statements are prepared on a going concern basis and do not include any adjustments that
might result from the Company’s inability to refinance the Oaktree Loan and the 2026 Notes or sell some of its assets to meet its
obligations.

Credit
Losses

The
Company estimates and records a provision for its