Company: HROW
Filing Date: 2025-03-27
Form Type: 10-K
Source: 0001641172-25-000925
Chunk: 681

Company: HARROW, INC.
Filing Date: 2025-03-27
Form: 10-K
Item: Item 3
Chunk 681
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consolidated financial statements, the Company must estimate the actual current tax assets and liabilities and assess permanent and temporary
differences that result from differing treatment of items for tax and accounting purposes. The temporary differences result in deferred
tax assets and liabilities, which are included within the consolidated balance sheets. The Company must assess the likelihood that the
deferred tax assets will be recovered from future taxable income and, to the extent the Company believes that recovery is not more likely
than not, a valuation allowance must be established which reduces the amount of deferred tax assets recorded on the consolidated balance
sheets. To the extent the Company establishes a valuation allowance or increase or decrease this allowance in a period, the impact will
be included in income tax expense in the consolidated statements of operations.

The Company accounts for income taxes under the
provisions of ASC 740, Income Taxes. As of December 31, 2024 and 2023, there was $2,858,000
and $2,822,000,
respectively, of unrecognized tax benefits included in the consolidated balance sheets that would, if recognized, affect the
effective tax rate. The Company’s practice is to recognize interest and/or penalties related to income tax matters in income
tax expense. The Company had an accrual for interest or penalties of $69,000 and $40,000 in the consolidated balance sheets at
December 31, 2024 and 2023, respectively, and have recognized interest and/or penalties in the consolidated statements of operations
for the years ended December 31, 2024 and 2023 of $69,000 and $40,000, respectively. The Company is subject to taxation in the U.S.,
New Jersey, Tennessee, and various other states. The Company’s tax years since 2000 may be subject to examination by the
federal and state tax authorities due to the carryforward of unutilized net operating losses.

Cash and Cash Equivalents

Cash equivalents include short-term, highly liquid
investments with maturities of three months or less at the time of acquisition.

Concentrations of Credit Risk

The Company places its cash with financial institutions
deemed by management to be of high credit quality. The Federal Deposit Insurance Corporation (“FDIC”) provides basic deposit
coverage with limits up to $250,000 per owner. The Company believes the majority of its cash deposits are covered under FDIC limits,
however there are various accounts in which the Company has deposits in excess of FDIC limits