Company: HROW
Filing Date: 2025-03-27
Form Type: 10-K
Source: 0001641172-25-000925
Chunk: 225

Company: HARROW, INC.
Filing Date: 2025-03-27
Form: 10-K
Item: Item 1A
Chunk 225
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 and
sensitive data.

We
will continue to experience varying degrees of cyberattacks and other incidents in the future. Even though we continue to invest in the
monitoring, protection and resilience of our critical and/or sensitive data and systems, there can be no assurances that our efforts
will detect, prevent or fully recover systems or data from all breakdowns, service interruptions, attacks and/or breaches of our systems
that could adversely affect our business and operations and/or result in the loss or exposure of critical, proprietary, private, confidential
or otherwise sensitive data, which could result in material financial, legal business or reputational harm to us or negatively affect
our stock price. While we maintain cyber-liability insurance, our insurance is not sufficient to cover us against all losses that could
potentially result from a service interruption, breach of our systems or loss of our critical or sensitive data.

We are also subject to various
laws and regulations globally regarding privacy and data protection, including laws and regulations relating to the collection, storage,
handling, use, disclosure, transfer and security of personal data. The legislative and regulatory environment regarding privacy and data
protection is continuously evolving and developing and the subject of significant attention globally. For example, we are subject to
the CCPA, which became effective in January 2020, which can result in substantial penalties for noncompliance. The CCPA was amended in
late 2020, to create the California Privacy Rights Act to create opt in requirements for the use of sensitive personal data and the formation
of a new dedicated agency for the enforcement of the law, the California Privacy Protection Agency. Similar consumer privacy laws went
into effect in Virginia, Colorado, Utah, Connecticut and Florida in 2023. Consumer privacy laws were also passed in 11 other states,
with the earliest effective dates later this year, and proposed in three additional states. Failure to comply with these current and
future laws could result in significant penalties and reputational harm and could have a material adverse effect on our business and
results of operations.

 28 

Risks Related to Government Regulations and Third-Party
Policies

Our business is significantly impacted by state
and federal statutes and regulations.

Our proprietary compounded formulations
are comprised of active pharmaceutical ingredients that are components of drugs that have received marketing approval from the FDA, although
our proprietary compounded formulations have not themselves received FDA approval. FDA approval is not required in order to market and
sell our compounded formulations. We are pursuing FDA approval to market and sell