Company: HROW
Filing Date: 2025-03-27
Form Type: 10-K
Source: 0001641172-25-000925
Chunk: 1182

Company: HARROW, INC.
Filing Date: 2025-03-27
Form: 10-K
Item: Item 7
Chunk 1182
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 the Oaktree Loan, the Company drew a principal
amount of $65,000,000 (“Tranche A”) from the Oaktree Loan and used the net proceeds to repay all amounts owed by the Company
pursuant to the Loan and Security Agreement the Company previously entered into with B. Riley Commercial Capital, LLC on December 14,
2022 (the “B. Riley Loan”) – see subheading B. Riley Loan and Security Agreement – Paid in Full within
this Note 13. The additional principal loan amount of up to $35,000,000 available under the Oaktree Loan (“Tranche B”) was
available to the Company upon the commercialization of TRIESENCE. Since Tranche B was not drawn by the Company on or before March 27,
2024, the amount available under Tranche B was reduced to $30,000,000. While undrawn, the Company was required to pay a commitment fee
related to Tranche B amount equal to 2% per annum, payable quarterly. This fee was recorded within prepaid expenses and other current
assets and is being amortized on a straight-line basis over the access period.

    F-29

In July 2023, the Company entered into the First
Amendment to the Oaktree Loan (the “Oaktree Amendment”). Under the Oaktree Amendment, the overall credit facility size was
increased from $100,000,000 to $112,500,000, and the Company made other changes related to the Santen Products Acquisition (see Note
4). The Company drew down a principal amount of $12,500,000 (the “Loan Increase”) to fund the initial one-time payment associated
with the Santen Products Acquisition and for other working capital and general corporate purposes. No other material changes to the Oaktree
Loan were made pursuant to the Oaktree Amendment. Following entry into the Oaktree Amendment and the funding of the Loan Increase upon
closing of the Santen Products Acquisition, the Company had drawn down a total principal loan amount of $77,500,000 under the Oaktree
Loan.

In October 2024, the Company entered into the Second
Amendment to Credit Agreement and Guaranty with Oaktree (“Second Amendment”). Upon satisfaction of certain conditions to
funding, the Company drew down the principal amount of the Tranche B commitment of $30,000,000 (the “$30,000,000 Draw”) to
partially fund a one-time milestone payment to