Company: HROW
Filing Date: 2025-03-27
Form Type: 10-K
Source: 0001641172-25-000925
Chunk: 1187

Company: HARROW, INC.
Filing Date: 2025-03-27
Form: 10-K
Item: Item 7
Chunk 1187
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 and included amortization of debt issuance
costs and discount of $784,000, and $782,000 for the years ended December 31, 2024 and 2023, respectively.

B. Riley Loan and Security
Agreement – Paid in Full

On December 14, 2022 (the
“Effective Date”), the Company entered into a Loan and Security Agreement (the “BR Loan”) with B. Riley Commercial
Capital, LLC, as administrative agent for the lenders. The BR Loan provided for a loan facility of up to $100,000,000 to the Company
with a maturity date of December 14, 2025 (the “Maturity Date”), at an 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