Company: HROW
Filing Date: 2025-03-27
Form Type: 10-K
Source: 0001641172-25-000925
Chunk: 1663

Company: HARROW, INC.
Filing Date: 2025-03-27
Form: 10-K
Item: Item 9B
Chunk 1663
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 January 19, 2026 and carries an interest rate equal to the Secured Overnight Financing Rate plus 6.5% per annum (totaling 11.2%
at December 31, 2024). The Oaktree Loan also carries an exit fee equal to 3.5% of the aggregate principal amount owed, payable at maturity.
The total exit fee of $3,763,000 has been recorded as a debt discount. The original issue discount, fees and expenses (including the
exit fee) are being amortized over the term of the Oaktree Loan using the effective interest rate method. The Oaktree Loan requires quarterly
interest-only payments with all of the unpaid principal, interest and fees due on the maturity date, January 19, 2026.

The Oaktree Loan contains
customary guarantees and covenants, including financial covenants related to minimum liquidity and minimum net revenues. As of December
31, 2024, the Company was in compliance with the financial covenants.

Interest expense related
to the Oaktree Loan totaled $12,568,000 and $8,804,000 for the years ended December 31, 2024 and 2023, respectively, and included the
amortization of debt issuance costs and discount of $2,705,000 and $1,680,000, respectively. Also included in interest expense is the
amortization of deferred commitment fees of $601,000 and $543,000, respectively.

HROWM - 11.875% Senior Notes Due 2027

In December 2022 and in
January 2023, the Company closed an offering of $35,000,000 and $5,250,000, respectively, aggregate principal amount of 11.875% senior
notes due in December 2027 (the “2027 Notes”). The 2027 Notes were sold to investors at a par value of $25.00 per 2027 Note,
and the offering resulted in net proceeds to the Company of approximately $36,699,000 after deducting underwriting discounts and commissions
and other offering expenses of $3,551,000.

The 2027 Notes are senior
unsecured obligations of the Company and rank equally in right of payment with all of the Company’s other existing and future senior
unsecured and unsubordinated indebtedness. The 2027 Notes are effectively subordinated in right of payment to all of the Company’s
existing and future secured