Company: HROW
Filing Date: 2025-03-27
Form Type: 10-K
Source: 0001641172-25-000925
Chunk: 1567

Company: HARROW, INC.
Filing Date: 2025-03-27
Form: 10-K
Item: Item 9A
Chunk 1567
---
2024  
    2023 
  
    Accounts payable 
    $38,762,000  
    $21,424,000 
  
    Accrued insurance premium 
     -  
     873,000 
  
    Accrued interest (see Note 13) 
     2,538,000  
     1,978,000 
  
    Other accrued expenses 
     106,000  
     306,000 
  
    Total accounts payable and accrued expenses 
    $41,406,000  
    $24,581,000 

The Company financed all insurance policies for the
policy terms of August 17, 2023 through August 16, 2024. The financing agreements had an interest rate of 7.48% per annum and required
eight monthly payments of $169,000.

NOTE 13. DEBT

Oaktree Loan Due 2026

In March 2023, the Company
entered into a Credit Agreement and Guaranty, (the “Oaktree Loan”) with Oaktree, providing for a senior secured term loan
facility to the Company with a principal amount of up to $100,000,000. Upon entering into the Oaktree Loan, the Company drew a principal
amount of $65,000,000 (“Tranche A”) from the Oaktree Loan and used the net proceeds to repay all amounts owed by the Company
pursuant to the Loan and Security Agreement the Company previously entered into with B. Riley Commercial Capital, LLC on December 14,
2022 (the “B. Riley Loan”) – see subheading B. Riley Loan and Security Agreement – Paid in Full within
this Note 13. The additional principal loan amount of up to $35,000,000 available under the Oaktree Loan (“Tranche B”) was
available to the Company upon the commercialization of TRIESENCE. Since Tranche B was not drawn by the Company on or before March 27,
2024, the amount available under Tranche B was reduced to $30,000,000. While undrawn, the Company was required to pay a commitment fee
related to Tranche B amount equal to 2% per annum, payable quarterly. This fee was recorded within prepaid expenses and other current
assets and is being amortized on a straight-line basis over the access period.

    F-29

In July 2023, the Company entered into the First
Am