Company: HROW
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0001641172-25-009263
Chunk: 27

Company: HARROW, INC.
Filing Date: 2025-05-08
Form: 10-Q
Item: Item 1
Chunk 27
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’s subsidiaries, including trade
payables. The 2026 Notes bear interest at a rate of 8.625% per annum. Interest on the 2026 Notes is payable quarterly in arrears on January
31, April 30, July 31 and October 31 of each year. The 2026 Notes will mature on April 30, 2026. The issuance costs were recorded as a
debt discount and are being amortized as interest expense, net of the amortization of the premium on note issuance, over the term of the
2026 Notes using the effective interest rate method.

Prior to February 1,
2026, the Company may, at its option, redeem the 2026 Notes, in whole at any time or in part from time to time, at a redemption price
equal to 100% of the principal amount of the 2026 Notes to be redeemed, plus a make-whole amount, if any, plus accrued and unpaid interest
to, but excluding, the date of redemption. The Company may redeem the 2026 Notes for cash in whole or in part at any time at its option
on or after February 1, 2026 and prior to maturity, at a price equal to 100% of their principal amount, plus accrued and unpaid interest
to, but excluding, the date of redemption. On and after any redemption date, interest will cease to accrue on the redeemed Notes. The
2026 Notes trade on the Nasdaq Stock Market LLC under the symbol “HROWL”.

Interest expense related to the 2026 Notes totaled
$1,810,000 and $1,812,000 for the three months ended March 31, 2025 and 2024, respectively, and included amortization of debt issuance
costs and discount of $193,000 and $195,000, respectively.

HROWM - 11.875% Senior
Notes Due 2027

In December 2022 and
in January 2023, the Company closed an offering of $35,000,000 and $5,250,000, respectively, aggregate principal amount of 11.875% senior
notes due in December 2027 (the “2027 Notes”). The 2027 Notes were sold to investors at a par value of $25.00 per 2027 Note,
and the offering resulted in net proceeds to the Company of approximately $36,699,000 after deducting underwriting