Company: HROW
Filing Date: 2025-08-11
Form Type: 10-Q
Source: 0001641172-25-022980
Chunk: 28

Company: HARROW, INC.
Filing Date: 2025-08-11
Form: 10-Q
Item: Item 1
Chunk 28
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 accrued expenses 
     106,000  
     106,000 
  
    Total accounts payable and accrued expenses 
    $25,414,000  
    $41,406,000 

NOTE
10. DEBT

Oaktree
Loan Due 2026

In
March 2023, the Company entered into a Credit Agreement and Guaranty (the “Oaktree Loan”) with Oaktree, providing for a senior
secured term loan facility to the Company with a principal amount of up to $100,000,000. Upon entering into 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 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 was being amortized on a straight-line basis over the access period.

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. The Company drew down a principal amount
of $12,500,000 (the “Loan Increase”) to fund the initial one-time payment associated with product acquisitions 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 certain product acquisitions, 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