Company: HROW
Filing Date: 2025-03-27
Form Type: 10-K
Source: 0001641172-25-000925
Chunk: 872

Company: HARROW, INC.
Filing Date: 2025-03-27
Form: 10-K
Item: Item 5
Chunk 872
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 drug candidates, and/or
assets or technologies, pharmacies, outsourcing facilities, drug company and manufacturers, and otherwise fund our operations. We may
also use our resources to conduct clinical trials or other studies in support of our formulations or any drug candidate for which we
pursue FDA approval, to pursue additional development programs or to explore other development opportunities.

Net Cash Flows

The following provides detailed information about
our net cash flows for the years ended December 31, 2024 and 2023:

    For the Years Ended December 31, 

    2024  
    2023 
  
    Net cash provided by (used in): 

    Operating activities 
    $(22,202,000) 
    $3,840,000 
  
    Investing activities 
     (33,164,000) 
     (152,553,000)
  
    Financing activities 
     28,528,000  
     126,528,000 
  
    Net change in cash and cash equivalents 
     (26,838,000) 
     (22,185,000)
  
    Cash and cash equivalents at beginning of the year 
     74,085,000  
     96,270,000 
  
    Cash and cash equivalents at end of the year 
    $47,247,000  
    $74,085,000 

 60 

Operating Activities

Net cash used in operating activities
was $(22,202,000) in 2024, compared to cash provided by of $3,840,000 in the prior year. The decrease in net cash provided by operating
activities between the periods was mainly attributed to changes in our working capital balances including accounts payable, prepaid expenses,
inventories and most notably, accounts receivable. Our accounts receivable balance between periods increased significantly due to an
increase in our branded product sales, which have a longer revenue cycle compared to our ImprimisRx product sales. In addition, during
2024, we extended additional terms to our largest distributor to allow for downstream and end users (e.g. hospitals, clinics and ambulatory
surgery centers) of certain of our branded products additional time to pay for our branded products.

Investing Activities

Net cash used in investing activities
in 2024 and 2023 was $33,164,000 and $152,553,000, respectively. Cash used in investing activities in 2024 was