Company: HROW
Filing Date: 2025-03-27
Form Type: 10-K
Source: 0001641172-25-000925
Chunk: 530

Company: HARROW, INC.
Filing Date: 2025-03-27
Form: 10-K
Item: Item 2
Chunk 530
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 asset exceeds the fair value of the asset. The fair value of the asset is based on the discounted value of its estimated
future cash flows. Assets to be disposed of would be separately presented in the consolidated balance
sheet and reported at the lower of the carrying amount or fair value less costs to sell, and are no longer depreciated. The assets and
liabilities of a disposal group classified as held-for-sale would be presented separately in the appropriate asset and liability sections
of the consolidated balance sheet, if material.

As a result of its assessment
in 2024 and 2023, we recorded an impairment charge of $253,000 and $380,000, respectively, related to the impairment of certain licenses,
trademarks, patents and patent applications (see Note 11 to our consolidated financial statements).

Stock-Based Compensation

All stock-based payments to employees,
directors and consultants, including grants of stock options, warrants, restricted stock units (“RSUs”), performance stock
units (“PSUs) and restricted stock, are recognized in the consolidated financial statements based upon their estimated fair values.
We use the Black-Scholes-Merton option pricing model and Monte Carlo simulation model to estimate the fair value of stock-based awards.
The estimated fair value is determined at the date of grant. The financial statement effect of forfeitures is estimated at the time of
grant and revised, if necessary, if the actual effect differs from those estimates.

Off-Balance Sheet Arrangements

We do not have any off-balance
sheet arrangements, including the use of structured finance, special purpose entities or variable interest entities.

ITEM 7A. QUANTITATIVE
AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Not applicable.

ITEM 8. FINANCIAL STATEMENTS
AND SUPPLEMENTARY DATA

The financial statements and
supplementary data required by this item are included in this Annual Report beginning on page F-1 immediately following the signature
page hereto and are incorporated herein by reference.

ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS
ON ACCOUNTING AND FINANCIAL DISCLOSURE

None.

 67 

ITEM 9A. CONTROLS AND PROCEDURES

Disclosure Controls and Procedures

Our management, under the supervision
and with the participation of our Chief Executive Officer (“CEO”), our principal executive officer, and our Chief Financial
Officer (“CFO”), our principal financial and accounting officer, conducted an evaluation of the effectiveness of our disclosure
controls