Company: HROW
Filing Date: 2025-08-11
Form Type: 10-Q
Source: 0001641172-25-022980
Chunk: 83

Company: HARROW, INC.
Filing Date: 2025-08-11
Form: 10-Q
Item: Item 2
Chunk 83
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 2025 and 2024 was $(12,644,000) and $(736,000), respectively.
Cash used in financing activities during the six months ended June 30, 2025 and 2024 was primarily related to payment of payroll taxes
upon vesting of PSUs in exchange for shares withheld from employees.

Sources
of Capital

During
the six months ended June 30, 2025, our principal sources of cash came from proceeds from our operating activities. We expect future
cash needs to be provided by operating activities, but our forecasts may not be accurate, and our plans may change. We may also sell
some of our assets.

In
January 2026 the Oaktree Loan matures and in April 2026, the 2026 Notes become due. As of June 30, 2025, there was $107,500,000 principal
amount outstanding under the Oaktree Loan and $75,000,000 principal amount of the 2026 Notes were outstanding. The maturity of these
debt obligations could raise substantial doubt about our ability to continue as a going concern. We are currently in discussions with
our current senior secured lender, Oaktree, and other potential lenders about refinancing the Oaktree Loan and the 2026 Notes. Management
believes it is probable that we will be able to refinance the Oaktree Loan and the 2026 Notes based on our collateral strength and expected
cash flows from operations; however, there can be no assurance that we will obtain the refinancing on terms acceptable to us, or at all.
We believe that one of the other alternatives available to us is the sale of one or more of our assets. There can be no assurance that
any sale could be completed on a timely basis or on terms acceptable to us. If we are unable to successfully refinance the Oaktree Loan
and the 2026 Notes or sell assets to raise sufficient capital, we do not expect to have the ability to repay the Oaktree Loan and the
2026 Notes in full.

We
may acquire new products, product candidates and/or businesses and, as a result, we may need significant additional capital to support
our business plan and fund our proposed business operations. We may also seek additional financing from a variety of sources, including
other equity or debt financings, funding from corporate partnerships or licensing arrangements, sales of assets or any other financing
transaction. If we issue equity or convertible debt securities to raise additional funds, our existing stock