Company: HROW
Filing Date: 2025-03-27
Form Type: 10-K
Source: 0001641172-25-000925
Chunk: 529

Company: HARROW, INC.
Filing Date: 2025-03-27
Form: 10-K
Item: Item 2
Chunk 529
---
performance of our business relative to expected operating
    results;

    ●
    significant adverse economic and industry trends;

    ●
    significant decline in our market capitalization for an extended period
    of time relative to net book value; and

    ●
    expectations that a reporting unit will be sold or otherwise disposed.

The goodwill impairment test
consists of a two-step process as follows:

Step 1. We compare the fair value of each
reporting unit to its carrying amount, including the existing goodwill. The fair value of each reporting unit is determined using a discounted
cash flow valuation analysis. The carrying amount of each reporting unit is determined by specifically identifying and allocating the
assets and liabilities to each reporting unit based on headcount, relative revenues or other methods as deemed appropriate by management.
If the carrying amount of a reporting unit exceeds its fair value, goodwill is considered impaired, and we then perform the second step
of the impairment test to measure the impairment loss. If the fair value of a reporting unit exceeds its carrying amount, no further
analysis is required.

Step 2. If the carrying amount of the reporting
unit exceeds its fair value, an impairment loss will be recognized in an amount equal to the excess, limited to the total amount of goodwill
allocated to that reporting unit.

As a result of our assessments
in 2024 and 2023, we concluded that goodwill is not impaired as of December 31, 2024 and 2023.

 66 

Impairment of Other Long-Lived Assets

Other
long-lived assets, 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