Company: HROW
Filing Date: 2025-11-10
Form Type: 10-Q
Source: 0001493152-25-021562
Chunk: 58

Company: HARROW, INC.
Filing Date: 2025-11-10
Form: 10-Q
Item: Item 1
Chunk 58
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), and compounded ophthalmic
medications. Beginning in late 2025 and expanding into 2027, HAFA will provide a single, unified access point for prescribers and patients,
offering affordability, streamlined prescribing, and predictable access. The platform creates a simpler, more predictable path to treatment—supporting
better outcomes for patients and greater efficiency for physicians.

32

Acquisition
of Remaining Interests in Melt Pharmaceuticals, Inc. 

In
September 2025, we entered into an Agreement and Plan of Merger (the “Merger Agreement”) by and among us, Harrow Acquisition
Sub, Inc., a wholly owned subsidiary of Harrow, Melt Pharmaceuticals, Inc. (“Melt”), and D. Brad Osborne, as stockholder
representative. Under the terms of the Merger Agreement and related milestone payment agreement, the Company agreed to acquire the remaining
equity interests of Melt in exchange for an initial cash payment of approximately $4,300,000 at closing, and contingent consideration
consisting of cash and Company equity upon achievement of (i) U.S. Food and Drug Administration (“FDA”) approval of the MELT-300
product candidate, (ii) coding and reimbursement of the MELT-300 product candidate, and (iii) various one-time sales milestones, as follows:

    ●
    Upon
    FDA approval of MELT-300, the Company shall pay an aggregate amount in cash of approximately $87,200,000.

    ●
    Upon
    receipt of pass-through status awarded and J-Code (or any other similar designation) issued by the Center for Medicare & Medicaid
    Services for MELT-300 the Company shall issue an aggregate of approximately 1,112,000 shares of the Company’s common stock.

    ●
    Upon
    achievement of various annual net sales milestones ranging from $100,000,000 to $1,000,000,000 per year, the Company shall make one-time
    cash payments that in the aggregate may total up to approximately $261,000,000 if all annual net sales milestones are achieved.

The
regulatory and commercial milestones must be achieved, if at all, on or before December 31, 2035.

The
Merger Agreement includes representations and warranties and covenants of the parties customary for such a transaction. Until the earlier
of the termination of the Merger Agreement and the effective time of the acquisition, Melt has