Company: HROW
Filing Date: 2025-11-10
Form Type: 10-Q
Source: 0001493152-25-021562
Chunk: 13

Company: HARROW, INC.
Filing Date: 2025-11-10
Form: 10-Q
Item: Item 1
Chunk 13
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 less unamortized debt issuance costs. The Company fully repaid
principal balances under the Oaktree Loan and the 2026 and 2027 Notes in September. The Company’s 2026 Notes (as defined in
Note 10) were carried at face value, including the unamortized premium, less unamortized debt issuance costs, the 2027 Notes (as
defined in Note 10) were carried at face value less unamortized debt issuance costs, and the Oaktree Loan (as defined in Note 10)
was carried at face value less the original issue discount and unamortized debt issuance costs on the condensed consolidated balance
sheets and the Company presents fair value for disclosure purposes only. The 2026 Notes and the 2027 Notes were classified as Level
1 instruments as the fair value is determined using quoted market prices in active markets for the same securities. The 2030 Notes
are classified, and the Oaktree Loan was classified as Level 2 instruments and the 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 

    September 30, 2025  
    December 31, 2024 

    Carrying
 Value  
    Fair Value  
    Carrying
 Value  
    Fair Value 
  
    2026 Notes 
    $-  
    $-  
    $74,002,000  
    $75,840,000 
  
    2027 Notes 
    $-  
    $-  
    $38,130,000  
    $42,198,000 
  
    Oaktree Loan 
    $-  
    $-  
    $107,407,000  
    $112,932,000 
  
    2030 Notes 
    $242,874,000  
    $260,625,000  
    $-  
    $- 

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