Company: HROW
Filing Date: 2025-11-10
Form Type: 10-Q
Source: 0001493152-25-021562
Chunk: 142

Company: HARROW, INC.
Filing Date: 2025-11-10
Form: 10-Q
Item: Item 1A
Chunk 142
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 unable to predict which or how many policy, regulatory, administrative or legislative changes may ultimately be, or effectively estimate
the consequences to our business if, enacted and implemented. However, to the extent that payer actions further decrease or modify the
coverage or reimbursement available for our products, require that we pay increased rebates or shift other costs to us, limit or affect
our decisions regarding the pricing of or otherwise reduce the use of our products, such actions could have a material adverse effect
on our business and results of operations.

Global
economic conditions may negatively affect us and may magnify certain risks that affect our business.

Our
operations and performance have been, and may continue to be, affected by global economic conditions. The economic downturn resulting
from the COVID-19 pandemic precipitated a global recession, which was followed by high rates of inflation and actions taken by financial
regulators to raise interest rates. Instability in the financial system, tighter lending standards and higher interest rates have added
stress that may create additional vulnerabilities in the global economy, the effects of which may be of an extended duration. Additionally,
with higher interest rates, deficits (including those associated with the pandemic), and other fiscal pressures, governments may be unable
to sustain their previously high levels of fiscal spending. As a result of global economic conditions, some third-party payers may delay
or be unable to satisfy their reimbursement obligations. Job losses or other economic hardships (including inflation) may also affect
patients’ ability to afford healthcare as a result of increased co-pay or deductible obligations, greater cost sensitivity to existing
co-pay or deductible obligations, lost healthcare insurance coverage or for other reasons. We believe such conditions could lead to reduced
demand for our products, which could have a material adverse effect on our product sales, business and results of operations. The cumulative
effects of inflationary pressures, an uncertain trade environment with escalating and rapidly-changing tariffs, and the effects from
the armed conflict in Ukraine (including the effects of the sanctions that were implemented in response to the conflict and the resulting
impacts on the commodity market and supply chains) and the Middle East may also increase our operating expenses. Some of our operational
costs, including the cost of energy, cost of goods, other materials, labor, distribution and our other operational costs are subject
to market conditions and have been adversely affected by inflationary pressures. Although we monitor our distributors’, customers’
and suppliers’ financial condition and their liquidity to mitigate our business risks, some of our distributors, customers and