Company: HROW
Filing Date: 2025-03-27
Form Type: 10-K
Source: 0001641172-25-000925
Chunk: 1145

Company: HARROW, INC.
Filing Date: 2025-03-27
Form: 10-K
Item: Item 7
Chunk 1145
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 amounts of revenues and expenses during the
reporting periods. Significant estimates made by management are, among others, allowance for credit losses, variable consideration determined
based on accruals for chargebacks, administrative fees and rebates, government rebates, returns and other allowances, renewal periods
and discount rates for leases, realizability of inventories, recoverability of investments, realizability of deferred tax assets, recoverability
of long-lived assets and goodwill, valuations and purchase price allocations related to business combinations and asset acquisitions,
fair value of loans payable, and valuation of stock-based transactions with employees and non-employees. Actual results could differ
from those estimates.

Risks
and Uncertainties

The Company is subject to certain regulatory
standards, approvals, guidelines and inspections which could impact the Company’s ability to make, dispense, and sell certain
products or subject the Company to enforcement actions. The Company’s 503B facility was inspected in 2024. The Company has
been in discussions with the U.S. Food and Drug Administration (“FDA”) regarding the 2024 and other past FDA inspections
of its 503B facility and has developed action plans to address observations made by FDA during these inspections and has communicated
those plans to FDA. If the Company was required to cease
compounding and selling certain products as a result of regulatory guidelines or inspections, it could have a material impact on the
Company’s financial condition, liquidity and results of operations.

    F-9

Liquidity

In
January 2026 the Oaktree Loan (see Note 13) becomes due which totals $107,500,000 principal amount outstanding at December 31, 2024.
The maturity of this debt obligation without a refinancing event could raise substantial doubt about the Company’s ability to continue
as a going concern.

The Company is currently in discussions with its
current senior lender, Oaktree Fund Administration, LLC, as administrative agent for the lenders (together, “Oaktree”),
and other potential lenders about refinancing the Oaktree Loan. Management expects to move into more definitive discussions and
negotiations with Oaktree and potential lenders in the summer and fall of 2025. Management believes it is probable that the Company
will be able to refinance the Oaktree Loan based on the Company’s collateral strength and expected cash flows from operations;
however, there can be no assurance that the Company will obtain the refinancing on terms acceptable to it, or at all. If the Company