Company: HROW
Filing Date: 2025-03-27
Form Type: 10-K
Source: 0001641172-25-000925
Chunk: 1157

Company: HARROW, INC.
Filing Date: 2025-03-27
Form: 10-K
Item: Item 7
Chunk 1157
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 basis over the lease term.

    F-16

The Company has made certain accounting policy elections
whereby it (i) does not recognize ROU assets or lease liabilities for short-term leases (those with original terms of 12-months of less)
and (ii) combines lease and non-lease elements of its operating leases as a single lease component. As of December 31, 2024 and 2023,
the Company did not have any finance leases.

Fair Value Measurements

Fair value measurements are determined based on the
assumptions that market participants would use in pricing an asset or liability. GAAP establishes a hierarchy for inputs used in measuring
fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable
inputs be used when available. The established fair value hierarchy prioritizes the use of inputs used in valuation methodologies into
the following three levels:

    ●
    Level 1: Applies to assets or liabilities for which there are quoted
    prices (unadjusted) for identical assets or liabilities in active markets. A quoted price in an active market provides the most reliable
    evidence of fair value and must be used to measure fair value whenever available.
  
    ●
    Level 2: Applies to assets or liabilities for which there are significant
    other observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities; quoted prices in markets
    that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full
    term of the assets or liabilities.
  
    ●
    Level 3: Applies to assets or liabilities for which there are significant
    unobservable inputs that reflect a reporting entity’s own assumptions about the assumptions that market participants would
    use in pricing an asset or liability. For example, Level 3 inputs would relate to forecasts of future earnings and cash flows used
    in a discounted future cash flows method.

At December 31, 2023, the Company measured its investment
in Eton on a recurring basis. The Company’s investment in Eton was classified as Level 1 as the fair value was determined using
quoted market prices in an active market for the same securities. As of December 31, 2023, the fair market value of the Company’s
investment in Eton was $8,681,000.

The Company’s 2026 Notes (as defined in Note 13) are carried