Company: HROW
Filing Date: 2025-11-10
Form Type: 10-Q
Source: 0001493152-25-021562
Chunk: 35

Company: HARROW, INC.
Filing Date: 2025-11-10
Form: 10-Q
Item: Item 1
Chunk 35
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 office space in Nashville, Tennessee which commenced in September 2022 and expires
    in September 2027.

At
September 30, 2025, the weighted average incremental borrowing rate and the weighted average remaining lease term for the operating leases
held by the Company were 8.08% and 9.5 years, respectively.

During
the three and nine months ended September 30, 2025, cash paid for amounts included for the operating lease liabilities was $332,000 and
$840,000, respectively, and $327,000 and $972,000 for the same periods in 2024, respectively. During the three and nine months ended
September 30, 2025, the Company recorded operating lease expense of $365,000 and $1,116,000, respectively, and $414,000 and $1,053,000
for the same periods in 2024, respectively. Operating lease expense is included in selling, general and administrative expenses within
the condensed consolidated statements of operations.

Future
lease payments under operating leases as of September 30, 2025 were as follows:

SCHEDULE
OF FUTURE LEASE PAYMENTS UNDER OPERATING LEASES

    Operating
 Leases 
  
    Remainder of 2025 
    $586,000 
  
    2026 
     1,551,000 
  
    2027 
     1,425,000 
  
    2028 
     1,288,000 
  
    2029 
     1,304,000 
  
    Thereafter 
     6,464,000 
  
    Total minimum lease payments 
     12,618,000 
  
    Less: amount representing interest payments 
     (3,620,000)
  
    Total operating lease obligations 
     8,998,000 
  
    Less: current portion, operating lease obligations 
     (859,000)
  
    Operating lease obligations, net of current portion 
    $8,139,000 

    20

NOTE
12. STOCKHOLDERS’ EQUITY AND STOCK-BASED COMPENSATION

Common
Stock

During
the nine months ended September 30, 2025, upon vesting of 346,500 PSUs granted in April 2023 to Andrew R. Boll, the Company’s President
and Chief Financial Officer, the Company issued 209,755 shares of common