Company: HROW
Filing Date: 2025-03-27
Form Type: 10-K
Source: 0001641172-25-000925
Chunk: 2056

Company: HARROW, INC.
Filing Date: 2025-03-27
Form: 10-K
Item: Item 12
Chunk 2056
---
 current year 
     5,000 
  
    Additions/(reductions) for tax positions related to prior years 
     32,000 

    Balance at December 31, 2024 
    $2,858,000 

    Federal & State Tax 
  
    Balance at January 1, 2023 
    $- 
  
    Additions for tax positions related to current year 
     36,000 
  
    Additions/(reductions) for tax positions related to prior years 
                      2,786,000 

    Balance at December 31, 2023 
    $2,822,000 

NOTE 17. EMPLOYEE
SAVINGS PLAN

The Company has established an employee savings plan
pursuant to Section 401(k) of the Internal Revenue Code, effective January 1, 2014. The plan allows participating employees to deposit
into tax deferred investment accounts up to 100% of their salary, subject to annual limits. The Company makes certain matching contributions
to the plan in amounts up to 4% of the participants’ annual cash compensation, subject to annual limits. The Company contributed
approximately $953,000 and $594,000 to the plan during the years ended December 31, 2024 and 2023, respectively.

NOTE 18. COMMITMENTS
AND CONTINGENCIES

Legal

General and Other

In the ordinary course of business, the Company is
involved in various legal proceedings, government investigations and other matters that are complex in nature and have outcomes that
are difficult to predict. See also Part I, Item 1A. Risk Factors. The Company describes legal proceedings and other matters
that are/were significant or that it believes could become significant in this footnote.

The Company records accruals for loss contingencies
to the extent that it concludes it is probable that a liability has been incurred and the amount of the related loss can be reasonably
estimated. The Company evaluates, on a quarterly basis, developments in legal proceedings and other matters that could cause an increase
or decrease in the amount of a liability that has been accrued previously.

The Company’s legal proceedings involve
various aspects of its business and a variety of claims, some of which present novel factual allegations and/or unique legal
theories. Typically, a number of the matters pending against the Company are at early stages of the legal process, which in complex
proceedings of the