Company: HROW
Filing Date: 2025-08-11
Form Type: 10-Q
Source: 0001641172-25-022980
Chunk: 13

Company: HARROW, INC.
Filing Date: 2025-08-11
Form: 10-Q
Item: Item 1
Chunk 13
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 observable inputs and minimizes the use of
unobservable inputs by requiring that the most observable inputs be used when available. The established fair value hierarchy prioritizes
the use of inputs used in valuation methodologies into the following three levels:

    ●
    Level
    1: Applies to assets or liabilities for which there are quoted prices (unadjusted) for identical assets or liabilities in active
    markets. A quoted price in an active market provides the most reliable evidence of fair value and must be used to measure fair value
    whenever available.
  
    ●
    Level
    2: Applies to assets or liabilities for which there are significant other observable inputs other than Level 1 prices, such as quoted
    prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can
    be corroborated by observable market data for substantially the full term of the assets or liabilities.
  
    ●
    Level
    3: Applies to assets or liabilities for which there are significant unobservable inputs that reflect a reporting entity’s own
    assumptions about the assumptions that market participants would use in pricing an asset or liability. For example, Level 3 inputs
    would relate to forecasts of future earnings and cash flows used in a discounted future cash flows method.

The
Company’s 2026 Notes (as defined in Note 10) are carried at face value, including the unamortized premium, less unamortized debt
issuance costs, the 2027 Notes (as described in Note 10) are carried at face value less unamortized debt issuance costs, and the Oaktree
Loan (as defined in Note 10) is carried at face value less the original issue discount and unamortized debt issuance costs on the condensed
consolidated balance sheets and the Company presents fair value for disclosure purposes only. The 2026 Notes and the 2027 Notes are classified
as Level 1 instruments as the fair value is determined using quoted market prices in active markets for the same securities. The Oaktree
Loan is classified as a Level 2 instrument and its fair value is determined through an income approach that considers collateral coverage,
yield calibration, yield analysis and any adjustments to implied yield associated with the Company’s fundamental measures.

The
following table presents the estimated fair values and the carrying values:

 SCHEDULE
OF ESTIMATED FAIR VALUE

    June 30, 2025  
    December 31