Company: HROW
Filing Date: 2025-03-27
Form Type: 10-K
Source: 0001641172-25-000925
Chunk: 469

Company: HARROW, INC.
Filing Date: 2025-03-27
Form: 10-K
Item: Item 1B
Chunk 469
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outstanding, as well as other conditions.

    F-24

In February 2019, the Company
entered into the Melt MSA, whereby the Company provided to Melt certain administrative services and support, including bookkeeping, web
services and human resources related activities, and Melt was required to pay the Company a monthly amount of $10,000. The Melt MSA was
terminated effective July 1, 2023. During the years ended December 31, 2024, and 2023, the Company recorded $0 and $89,000, respectively, due
from Melt for reimbursable expenses and amounts payable pursuant to the Melt MSA, which are included in prepaid expenses and other current
assets in the accompanying consolidated balance sheets. As of each of December 31, 2024 and 2023, the Company was due $228,000 from
Melt for reimbursable expenses and amounts due under the Melt MSA. Melt did not make any payments to the Company during the year ended
December 31, 2024. The Company made a cash advance to Melt of $500,000 and Melt repaid the $500,000 cash advance during the year ended
December 31, 2023.

During the years ended December
31, 2024 and 2023, Melt raised over $3,300,000 and $20,586,000, respectively, in gross proceeds from third party investors related to
its Series B Preferred Stock offerings.

The Company’s Chief
Executive Officer, Mark L. Baum, is a member of the Melt board of directors. The Melt board of directors consists of five members, including
Mr. Baum. Mr. Baum is the only representative of the Company on Melt’s board of directors.

Melt Note Receivable – Settled and Terminated
in 2023

On September 1, 2021, the Company entered into a
loan and security agreement in the principal amount of $13,500,000 (the “Melt Loan Agreement”), as lender, with Melt, as
borrower. Amounts borrowed under the Melt Loan Agreement bore interest at 12.50% per annum, which interest could have been paid in-kind
at the option of Melt until the maturity date. The Melt Loan Agreement permitted Melt to pay interest only on the principal amount loaned
thereunder through the term