Company: HROW
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0001641172-25-009263
Chunk: 34

Company: HARROW, INC.
Filing Date: 2025-05-08
Form: 10-Q
Item: Item 1
Chunk 34
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 estimated
on the date of grant using the Black-Scholes-Merton option pricing model. The expected term of options granted to employees and directors
was determined in accordance with the “simplified approach,” as the Company has limited, relevant, historical data on employee
exercises and post-vesting employment termination behavior. The expected risk-free interest rate is based on the U.S. Treasury yield for
a period consistent with the expected term of the option in effect at the time of the grant. The financial statement effect of forfeitures
is estimated at the time of grant and revised, if necessary, if the actual effect differs from those estimates. For option grants to employees
and directors, the Company assigns a forfeiture factor of 10%. These factors could change in the future, which would affect the determination
of stock-based compensation expense in future periods. Utilizing these assumptions, the fair value is determined at the date of grant.

The table below illustrates the fair value per
share determined using the Black-Scholes-Merton option pricing model with the following assumptions used for valuing options granted to
employees:

 SCHEDULE OF FAIR VALUE ASSUMPTIONS

    2025 
  
    Weighted-average fair value of options granted 
    $24.13 
  
    Expected terms (in years) 
     6.11 
  
    Expected volatility 
     71.19%
  
    Risk-free interest rate 
     4.53%
  
    Dividend yield 
     - 

     20 

The following table summarizes information about
stock options outstanding and exercisable at March 31, 2025:

SCHEDULE OF STOCK OPTION OUTSTANDING AND EXERCISABLE   

    Options Outstanding  
    Options Exercisable 
  
    Range of Exercise Prices 
    Number Outstanding  
    Weighted Average Remaining Contractual Life in Years  
    Weighted Average Exercise Price  
    Number Exercisable  
    Weighted Average Exercise Price 
  
    $1.47 - $1.70 
     31,942  
     2.46  
    $1.68  
     31,942  
    $1.68 
  
    $1.73 
     250,000  
     2.76  
    $1.73  
     250,000  
    $1.73 
  
    $2.23 
     270,000  
     1