Company: HROW
Filing Date: 2025-03-27
Form Type: 10-K
Source: 0001641172-25-000925
Chunk: 2008

Company: HARROW, INC.
Filing Date: 2025-03-27
Form: 10-K
Item: Item 12
Chunk 2008
---
,
such as property, plant and equipment, purchased intangibles subject to amortization and patents and trademarks, are reviewed for impairment
whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Such circumstances
could include, but are not limited to (1) a significant decrease in the market value of an asset, (2) a significant adverse change in
the extent or manner in which an asset is used, or (3) an accumulation of costs significantly in excess of the amount originally expected
for the acquisition of an asset. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an
asset to estimated undiscounted future cash flows expected to be generated by the asset. If the carrying amount of an asset exceeds its
estimated undiscounted future cash flows, an impairment charge is recognized in the amount by which the carrying amount of the asset
exceeds the fair value of the asset. The fair value of the asset is based on the discounted value of its estimated future cash flows.
Assets to be disposed of would be separately presented in the consolidated balance sheet and reported at
the lower of the carrying amount or fair value less costs to sell, and are no longer depreciated. The assets and liabilities of a disposal
group classified as held-for-sale would be presented separately in the appropriate asset and liability sections of the consolidated balance
sheet, if material.

Leases

At the inception of a contract the Company determines
if the arrangement is, or contains, a lease. Operating lease right-of-use (“ROU”) assets represent the Company’s right
to use an underlying asset for the lease term and lease liabilities represent its obligation to make lease payments arising from the
lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over
the lease term, discounted using the Company’s incremental borrowing rate of the debt outstanding. Lease expense is recognized on
a straight-line basis over the lease term.

    F-16

The Company has made certain accounting policy elections
whereby it (i) does not recognize ROU assets or lease liabilities for short-term leases (those with original terms of 12-months of less)
and (ii) combines lease and non-lease elements of its operating leases as a single lease component. As of December 31, 2024 and 2023,
the Company did not have any finance leases.

Fair Value Measurements

Fair value measurements are determined based