Company: HROW
Filing Date: 2025-11-10
Form Type: 10-Q
Source: 0001493152-25-021562
Chunk: 15

Company: HARROW, INC.
Filing Date: 2025-11-10
Form: 10-Q
Item: Item 1
Chunk 15
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) per share, basic 
    $0.03  
    $(0.12) 
    $(0.32) 
    $(0.68)

    9

For
the three months ended September 30, 2025, the Company computed diluted net income per share using the weighted-average number of common
shares and dilutive common equivalent shares outstanding during that period. Diluted common equivalent shares for the three months ended
September 30, 2025 consisted of the following:

 SCHEDULE
OF DILUTED NET INCOME PER SHARE

    Three 
Months Ended 

    September 30,
 2025 

    Diluted shares related to: 

    Restricted stock units 
     121,280 
  
    Stock options 
     1,608,285 
  
    Dilutive common equivalent shares 
     1,729,565 

The following table shows the computation of diluted net income per share using the weighted-average number of common shares and dilutive
common equivalent shares outstanding for the three months ended September 30, 2025:

 SCHEDULE
OF BASIC AND DILUTED EARNINGS PER COMMON SHARE 

    Three 
Months Ended 

    September 30,
 2025 

    Numerator - net income 
    $1,020,000 
  
    Weighted average number of shares outstanding, basic 
     37,145,440 
  
    Dilutive common equivalents 
     1,729,565 
  
    Weighted average number of shares outstanding, diluted 
     38,875,005 
  
    Net income per share, diluted 
    $0.03 

Income
Taxes

The
Company’s effective tax rate was (3.66)% and (2.95)% for the nine months ended September 30, 2025 and 2024, respectively. The Company’s
effective tax rate for the nine months ended September 30, 2025 and 2024 differs from the U.S. federal statutory tax rate of 21% due
to state taxes, permanent book-tax differences related to Internal Revenue Code of 1986, as amended (“IRC”), Section 162(m)
excess officer compensation limitation and share-based compensation and the change in valuation allowance.

As
of September 30, 2025 and December 31, 2024, there were $2,860,000 and $2,858,000, respectively, of unrecognized