Company: HROW
Filing Date: 2025-03-27
Form Type: 10-K
Source: 0001641172-25-000925
Chunk: 570

Company: HARROW, INC.
Filing Date: 2025-03-27
Form: 10-K
Item: Item 2
Chunk 570
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 results;

    ●
    significant adverse economic and industry trends;

    ●
    significant decline in the Company’s 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. The Company compares 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 the Company then performs 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 its assessment in 2024, the Company
concluded that goodwill is not impaired as of December 31, 2024.

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 asset
exceeds the fair value of the asset. The fair value of the asset is based on