Company: HROW
Filing Date: 2025-03-27
Form Type: 10-K
Source: 0001641172-25-000925
Chunk: 2103

Company: HARROW, INC.
Filing Date: 2025-03-27
Form: 10-K
Item: Item 13
Chunk 2103
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 or liabilities for which there are quoted
    prices (unadjusted) for identical assets or liabilities in active markets. A quoted price in an active market provides the most reliable
    evidence of fair value and must be used to measure fair value whenever available.
  
    ●
    Level 2: Applies to assets or liabilities for which there are significant
    other observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities; quoted prices in markets
    that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full
    term of the assets or liabilities.
  
    ●
    Level 3: Applies to assets or liabilities for which there are significant
    unobservable inputs that reflect a reporting entity’s own assumptions about the assumptions that market participants would
    use in pricing an asset or liability. For example, Level 3 inputs would relate to forecasts of future earnings and cash flows used
    in a discounted future cash flows method.

At December 31, 2023, the Company measured its investment
in Eton on a recurring basis. The Company’s investment in Eton was classified as Level 1 as the fair value was determined using
quoted market prices in an active market for the same securities. As of December 31, 2023, the fair market value of the Company’s
investment in Eton was $8,681,000.

The Company’s 2026 Notes (as defined in Note 13) are carried at face value, including the unamortized premium, less unamortized
debt issuance costs, the 2027 Notes (as defined in Note 13) are carried at face value less unamortized debt issuance costs, and the Oaktree
Loan (as defined in Note 13) is carried at face value less the original issue discount and unamortized debt issuance costs on the consolidated
balance sheets and the Company presents fair value for disclosure purposes only. The 2026 Notes and 2027 Notes are classified as Level
1 instruments as the fair value is determined using quoted market prices in active markets for the same securities. The Oaktree Loan
is classified as a Level 2 instrument and its 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