Company: HROW
Filing Date: 2025-11-10
Form Type: 10-Q
Source: 0001493152-25-021562
Chunk: 39

Company: HARROW, INC.
Filing Date: 2025-11-10
Form: 10-Q
Item: Item 1
Chunk 39
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 on the first anniversary of the grant date and the remaining 75% of the shares subject to the option vest
and become exercisable quarterly in equal installments thereafter over three years. Certain option awards provide for accelerated vesting
if there is a change in control (as defined in the Plans) and in the event of certain modifications to the option award agreement.

The
fair value of each option award is 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 
    $24.59 

    Expected terms (in years) 
     6.11 

    Expected volatility 
     71.02%-71.30%

    Risk-free interest rate 
     3.84%-4.53%

    Dividend yield 
     - 

    22

The
following table summarizes information about stock options outstanding and exercisable at September 30, 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