Company: HROW
Filing Date: 2025-08-11
Form Type: 10-Q
Source: 0001641172-25-022980
Chunk: 31

Company: HARROW, INC.
Filing Date: 2025-08-11
Form: 10-Q
Item: Item 1
Chunk 31
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 Notes is payable
quarterly in arrears on January 31, April 30, July 31 and October 31 of each year. The 2026 Notes will mature on April 30, 2026. The
issuance costs were recorded as a debt discount and are being amortized as interest expense, net of the amortization of the premium on
note issuance, over the term of the 2026 Notes using the effective interest rate method.

Prior
to February 1, 2026, the Company may, at its option, redeem the 2026 Notes, in whole at any time or in part from time to time, at a redemption
price equal to 100% of the principal amount of the 2026 Notes to be redeemed, plus a make-whole amount, if any, plus accrued and unpaid
interest to, but excluding, the date of redemption. The Company may redeem the 2026 Notes for cash in whole or in part at any time at
its option on or after February 1, 2026 and prior to maturity, at a price equal to 100% of their principal amount, plus accrued and unpaid
interest to, but excluding, the date of redemption. On and after any redemption date, interest will cease to accrue on the redeemed Notes.
The 2026 Notes trade on the Nasdaq Stock Market LLC under the symbol “HROWL”.

    18

Interest
expense related to the 2026 Notes totaled $1,812,000 and $3,622,000 for the three and six months ended June 30, 2025, respectively, and
included amortization of debt issuance costs and discount of $195,000 and $388,000, respectively. Interest expense related to the 2026
Notes totaled $1,812,000 and $3,624,000 for the three and six months ended June 30, 2024, respectively, and included amortization of
debt issuance costs and discount of $195,000 and $390,000, 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