Company: HROW
Filing Date: 2025-03-27
Form Type: 10-K
Source: 0001641172-25-000925
Chunk: 83

Company: HARROW, INC.
Filing Date: 2025-03-27
Form: 10-K
Item: Item 1
Chunk 83
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4) securities, indebtedness or obligations issued or incurred by our
    subsidiaries that would be senior to our equity interests in our subsidiaries and therefore rank structurally senior to the Notes
    with respect to the assets of our subsidiaries;

    ●
    pay dividends on, or purchase or redeem or make any payments in respect
    of, capital stock or other securities subordinated in right of payment to the Notes;

    ●
    sell assets (other than certain limited restrictions on our ability
    to consolidate, merge or sell all or substantially all of our assets);

    ●
    enter into transactions with affiliates;

    ●
    create liens (including liens on the shares of our subsidiaries) or
    enter into sale and leaseback transactions;

    ●
    make investments; or

    ●
    create restrictions on the payment of dividends or other amounts to
    us from our subsidiaries.

In addition,
the indenture does not include any protection against certain events, such as a change of control, leveraged recapitalization, “going
private” transaction (which may result in a significant increase of our indebtedness), restructuring or similar transactions. Furthermore,
the terms of the indenture and the Notes do not protect holders of the Notes in the event that we experience changes (including significant
adverse changes) in our financial condition, results of operations or credit ratings, as they do not require that we or our subsidiaries
adhere to any financial tests or ratios or specified levels of net worth, revenues, income, cash flow, or liquidity. Also, an event of
default or acceleration under our other indebtedness would not necessarily result in an event of default under the Notes.

Our
ability to recapitalize, incur additional debt and take a number of other actions that are not limited by the terms of the Notes may
have important consequences for the holders of the Notes, including making it more difficult for us to satisfy our obligations with respect
to the Notes or negatively affecting the trading value of the Notes.

Other
debt we issue or incur in the future could contain more protections for its holders than the indenture and the Notes, including additional
covenants and events of default. The issuance or incurrence of any such debt with incremental protections could affect the market for
and trading levels and prices of the Notes.

 49 

An increase in market
interest rates could result in a decrease in the value of the Notes.

In general,
as market interest rates rise, notes bearing interest at a