Company: HROW
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0001641172-25-009263
Chunk: 64

Company: HARROW, INC.
Filing Date: 2025-05-08
Form: 10-Q
Item: Item 2
Chunk 64
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 debt obligations.

Investment Loss from Eton

During the three months
ended March 31, 2024, we recorded a loss of $(1,248,000), related to the change in fair market value of Eton Pharmaceuticals, Inc’s common stock.
In April 2024, we sold all of our shares of Eton.

Liquidity and Capital Resources

Liquidity

Our cash on hand at March
31, 2025 was $66,726,000, compared to $47,247,000 at December 31, 2024.

As of the date of this Quarterly
Report, we believe that cash and cash equivalents of $66,726,000 at March 31, 2025 will be sufficient to sustain our planned level of
operations and capital expenditures for at least the next 12 months. Management expects to refinance the Oaktree Loan (as defined in Note
10 of our unaudited condensed consolidated financial statements included in this Quarterly Report) during 2025 and the 2026 Notes (as
defined in Note 10 of our unaudited condensed consolidated financial statements included in this Quarterly Report) at the same time or
soon thereafter. Management believes it is probable that we will be able to refinance the Oaktree Loan and 2026 Notes; however, there
can be no assurance that we will obtain the refinancing on terms acceptable to us, or at all - see the subheading Sources of Capital below
for additional discussion regarding the Oaktree Loan, 2026 Notes and refinancing plans. In addition, we may consider the sale of certain
assets including, but not limited to, part of, or all of, our investment in Melt Pharmaceuticals, Inc. (“Melt”) and any of
our consolidated subsidiaries. However, we may pursue acquisitions of products, drug candidates or other strategic transactions that involve
large expenditures or we may experience growth more rapidly or on a larger scale than we expect, any of which could result in the depletion
of capital resources more rapidly than anticipated and could require us to seek additional financing to support our operations.

 29 

We expect to use our current
cash position and funds generated from our operations and any financing to pursue our business plan, which includes developing and commercializing
drug candidates, compounded formulations and technologies, integrating and developing our operations, pursuing potential future strategic
transactions as opportunities arise, including potential acquisitions of additional drug products, drug candidates, and/or assets or technologies,
ph