Company: HROW
Filing Date: 2025-03-27
Form Type: 10-K
Source: 0001641172-25-000925
Chunk: 501

Company: HARROW, INC.
Filing Date: 2025-03-27
Form: 10-K
Item: Item 1B
Chunk 501
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, the complaint had been amended and OSRX added counterclaims alleging ImprimisRx,
LLC was violating the Lanham Act with false advertising. The Court granted cross motions for summary judgement on each party’s
Lanham Act claims thus leaving only ImprimisRx, LLC’s copyright infringement, trademark infringement and unfair competition claims
for trial. Following a jury trial in November 2024, a jury found OSRX acted with malice, fraud, or oppression, willfully engaging in
trademark infringement and unfair competition under California and federal law and ImprimisRx, LLC received a $34,900,000 jury verdict
award, which includes $20,400,000 in punitive damages and $14,500,000 in actual damages. Due to uncertainty regarding probability of
collection, the Company did not record any gains associated with the verdict award during the year ended December 31, 2024.

    F-42

Product and Professional Liability

Product and professional liability litigation represents
an inherent risk to all firms in the pharmaceutical and pharmacy industry. The Company utilizes traditional third-party insurance policies
with regard to our product and professional liability claims. Such insurance coverage at any given time reflects current market conditions,
including cost and availability, when the policy is written.

Indemnities

In addition to the indemnification provisions contained
in the Company’s charter documents, the Company generally enters into separate indemnification agreements with each of the Company’s
directors and officers. These agreements require the Company, among other things, to indemnify the director or officer against specified
expenses and liabilities, such as attorneys’ fees, judgments, fines and settlements, paid by the individual in connection with
any action, suit or proceeding arising out of the individual’s status or service as the Company’s director or officer, other
than liabilities arising from willful misconduct or conduct that is knowingly fraudulent or deliberately dishonest, and to advance expenses
incurred by the individual in connection with any proceeding against the individual with respect to which the individual may be entitled
to indemnification by the Company. Several of the Company’s asset purchase and license agreements contain customary representations,
warranties, covenants and confidentiality provisions, and also contain mutual indemnification obligations related primarily to performance
under the respective agreements. The Company also indemnifies its lessors in connection with its facility leases for certain claims arising
from the use of the facilities. These indemnities do not provide for any limitation of the maximum potential future payments the Company
could be obligated to