Company: HROW
Filing Date: 2025-03-27
Form Type: 10-K
Source: 0001641172-25-000925
Chunk: 587

Company: HARROW, INC.
Filing Date: 2025-03-27
Form: 10-K
Item: Item 2
Chunk 587
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 and all amounts owed were previously due and payable on September 1, 2022. In April 2022, the Company entered
into a First Amendment and in September 2022, a Second Amendment (together, the “Amendments”) to the Melt Loan Agreement.
The Amendments (i) extended the maturity date of the Melt Loan Agreement to September 1, 2023, which could have been extended further
to September 1, 2026 upon Melt completing a qualifying financing of a minimum amount of $10,000,000 from third-party investors, (ii)
added conditions related to minimum cash amounts following a qualifying financing, and (iii) clarified the definition of material adverse
effects. Melt could have elected to prepay all, but not less than all, of the amounts owed prior to the maturity date at any time without
penalty. The net funds received by Melt excluded $908,000 owed to the Company for reimbursable expenses and amounts due under the Melt
MSA prior to the effective date of the note receivable.

In connection with the Melt Loan Agreement, the Company
and Melt entered into a Right of First Refusal Agreement providing the Company with the right, but not the obligation, to match any offer
received by Melt associated with the commercial rights to any of Melt’s drug candidates for a period of five years following the
effective date of the Melt Loan Agreement.

On December 28, 2023, the Company terminated the
Melt Loan Agreement. As of the date of termination, approximately $18,395,000 remained outstanding under the Melt Loan Agreement. Pursuant
to the terms of a Settlement and Payoff Agreement, dated as of December 28, 2023, by and between the Company and Melt (the “Settlement
Agreement”), the Company received 2,260,000 shares of Melt’s Series B-1 Preferred Stock and 74,256 shares of Melt’s
Series B Preferred Stock (which both series have similar rights and preferences) in consideration for the full payment of all amounts
outstanding under the Melt Loan Agreement. The Settlement Agreement contains customary representations, warranties and releases of the
parties and requires the parties to enter into a registration rights agreement providing the Company with rights consistent with other
holders of preferred stock of Melt. The Company concluded the Settlement Agreement is in substance a funding of the Company’s share
of prior unrecord