Company: HROW
Filing Date: 2025-08-11
Form Type: 10-Q
Source: 0001641172-25-022980
Chunk: 60

Company: HARROW, INC.
Filing Date: 2025-08-11
Form: 10-Q
Item: Item 1
Chunk 60
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    For the
                                                                                Six Months Ended  

    June 30,  
    $  
    June 30,  
    $ 

    2025  
    2024  
    Variance  
    2025  
    2024  
    Variance 
  
    Research and development 
    $2,868,000  
    $3,053,000  
    $(185,000) 
    $5,894,000  
    $5,202,000  
    $692,000 

The
increase in R&D expenses between six-month periods was primarily attributable to increased activity related to our expanded branded
product portfolio, product acquisitions, product development efforts, product launches, and clinical and medical support.

33

Interest
Expense, Net

Interest
expense, net was $6,408,000 and $12,956,000 for the three and six months ended June 30, 2025, respectively, compared to $5,471,000 and
$10,886,000 for the same periods in 2024, respectively. The increase during the three and six months ended June 30, 2025 compared to
the same periods in 2024 was primarily the result of an increase in the outstanding principal amount of our debt obligations.

Investment
Loss from Eton

During
the three and six months ended June 30, 2024, we recorded a loss of $(1,923,000) and $(3,171,000), respectively, related to the change
in fair market value of common stock of Eton Pharmaceuticals, Inc. (“Eton”) at the time of its sale, including trading expenses
and commissions of approximately $436,000. In April 2024, we sold all of our shares of Eton.

Liquidity
and Capital Resources

Liquidity

Our
cash on hand at June 30, 2025 was $52,963,000, compared to $47,247,000 at December 31, 2024.

As
of the date of this Quarterly Report, we believe that cash and cash equivalents of $52,963,000 at June 30, 2025 will be sufficient to
sustain our planned level of operations and capital expenditures for at least the next 12 months. Management expects to refinance the
Oaktree Loan (as defined in Note 10 of our