Company: HROW
Filing Date: 2025-08-11
Form Type: 10-Q
Source: 0001641172-25-022980
Chunk: 64

Company: HARROW, INC.
Filing Date: 2025-08-11
Form: 10-Q
Item: Item 1
Chunk 64
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 and warrants, which would
adversely impact our financial results.

35

We
may be unable to obtain financing when necessary as a result of, among other things, our performance, general economic conditions, conditions
in the pharmaceuticals and pharmacy industries, or our operating history. In addition, the fact that we have a limited history of profitability
could further impact the availability or cost to us of future financings. As a result, sufficient funds may not be available when needed
from any source or, if available, such funds may not be available on terms that are acceptable to us. If we are unable to raise funds
to satisfy our capital needs when needed, then we may need to forego pursuit of potentially valuable development or acquisition opportunities,
we may not be able to continue to operate our business pursuant to our business plan, which would require us to modify our operations
to reduce spending to a sustainable level by, among other things, delaying, scaling back or eliminating some or all of our ongoing or
planned investments in corporate infrastructure, business development, sales and marketing and other activities, or we may be forced
to discontinue our operations entirely.

Recently
Issued and Adopted Accounting Pronouncements

See
Note 2 to our unaudited condensed consolidated financial statements included in this Quarterly Report.

Item
3. Quantitative and Qualitative Disclosures About Market Risk

Interest
Rate Risk

We
are exposed to market risk related to changes in interest rates on our cash and cash equivalents and the Oaktree Loan. We do not utilize
derivative financial instruments or other market risk-sensitive instruments to manage our exposure to interest rate changes.

We
believe our interest rate risk related to our cash and cash equivalents is not material as our risk is that interest rates fall. Based
on the current interest rates, we do not have a significant downside risk of a drop in interest rates.

The
interest rate risk related to the Oaktree Loan is based on the Secured Overnight Financing Rate (“SOFR”) plus an interest
rate spread of 6.5% per annum. A hypothetical increase of 100 basis points in SOFR would impact our interest expense by $1,075,000 per
annum based on the outstanding balance under the Oaktree Loan as of June 30, 2025.

Item
4. Controls and Procedures

Evaluation
of Disclosure Controls and Procedures

We
maintain disclosure controls and procedures that are designed to ensure that information required to be disclosed in our reports filed
or