Company: HROW
Filing Date: 2025-03-27
Form Type: 10-K
Source: 0001641172-25-000925
Chunk: 988

Company: HARROW, INC.
Filing Date: 2025-03-27
Form: 10-K
Item: Item 6
Chunk 988
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    Financing activities 
     28,528,000  
     126,528,000 
  
    Net change in cash and cash equivalents 
     (26,838,000) 
     (22,185,000)
  
    Cash and cash equivalents at beginning of the year 
     74,085,000  
     96,270,000 
  
    Cash and cash equivalents at end of the year 
    $47,247,000  
    $74,085,000 

 60 

Operating Activities

Net cash used in operating activities
was $(22,202,000) in 2024, compared to cash provided by of $3,840,000 in the prior year. The decrease in net cash provided by operating
activities between the periods was mainly attributed to changes in our working capital balances including accounts payable, prepaid expenses,
inventories and most notably, accounts receivable. Our accounts receivable balance between periods increased significantly due to an
increase in our branded product sales, which have a longer revenue cycle compared to our ImprimisRx product sales. In addition, during
2024, we extended additional terms to our largest distributor to allow for downstream and end users (e.g. hospitals, clinics and ambulatory
surgery centers) of certain of our branded products additional time to pay for our branded products.

Investing Activities

Net cash used in investing activities
in 2024 and 2023 was $33,164,000 and $152,553,000, respectively. Cash used in investing activities in 2024 was primarily due to the milestone
payment of $37,000,000 related to TRIESENCE offset by cash received from the sale of our investment in Eton for $5,510,000. Cash used
in investing activities in 2023 was primarily associated with the product acquisitions.

Financing Activities

Net cash provided by financing
activities in 2024 and 2023 was $28,528,000 and $126,528,000, respectively. Cash provided by financing activities during the year ended
December 31, 2024 was primarily due to additional borrowings under our long-term debt facility with Oaktree of $29,780,000, net of issuance
costs, and proceeds from the exercise of stock options, offset by the payment of taxes associated with the vesting and exercise of share-based
awards. Cash provided by financing activities during the year ended December