Company: HROW
Filing Date: 2025-03-27
Form Type: 10-K
Source: 0001641172-25-000925
Chunk: 363

Company: HARROW, INC.
Filing Date: 2025-03-27
Form: 10-K
Item: Item 1A
Chunk 363
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 interest rate of 10.875% per annum.

In January 2023, $59,750,000
of principal amount was funded pursuant to the BR Loan simultaneously with the consummation of the NVS 5 Acquisition (see Note 4). In
March 2023, the Company repaid all amounts owed under the BR Loan, in connection with the Oaktree Loan, and no exit or prepayment fees
were paid as a result of the payoff of the BR Loan pursuant to a side letter agreement among the parties.

Interest expense related
to the BR Loan totaled $1,565,000 for the year ended December 31, 2023, and included amortization of debt issuance costs and debt discount
of $356,000. The Company recorded a loss of $5,465,000 related to the early extinguishment of debt associated with the BR Loan.

A summary of the Company’s
debt at December 31, 2024 and 2023 is described as follows:

 SCHEDULE OF LONG TERM DEBT

    December 31,  
    December 31, 

    2024  
    2023 
  
    8.625% Senior Notes due April 2026 
    $75,000,000  
    $75,000,000 
  
    11.875% Senior Notes due December 2027 
     40,250,000  
     40,250,000 
  
    Oaktree Loan due January 2026 
     111,263,000  
     80,213,000 
  
    Notes payable gross 
     226,513,000  
     195,463,000 
  
    Less: Unamortized debt discount and issuance costs 
     (6,974,000) 
     (9,578,000)
  
    Notes payable net 
    $219,539,000  
    $185,885,000 

For the years ended December 31, 2024 and 2023,
the total effective interest rate of the Company’s debt was 10.74%, and 10.58%, respectively.

At December 31, 2024, future minimum payments under
the Company’s debt were as follows:

SCHEDULE OF FUTURE MINIMUM PAYMENT UNDER NOTES PAYABLES  

    Amount 
  
    2025 
    $23,877,000 
  
    202