Company: HROW
Filing Date: 2025-11-10
Form Type: 10-Q
Source: 0001493152-25-021562
Chunk: 48

Company: HARROW, INC.
Filing Date: 2025-11-10
Form: 10-Q
Item: Item 1
Chunk 48
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 the MELT-300 product candidate, and (iii) various one-time sales milestones, as follows:

    ●
    Upon
    FDA approval of MELT-300, the Company shall pay an aggregate amount in cash of approximately $87,200,000.

    ●
    Upon
    receipt of pass-through status awarded and J-Code (or any other similar designation) issued by the Center for Medicare & Medicaid
    Services for MELT-300 the Company shall issue an aggregate of approximately 1,112,000 shares of the Company’s common stock.

    ●
    Upon
    achievement of various annual net sales milestones ranging from $100,000,000 to $1,000,000,000 per year, the Company shall make one-time
    cash payments that in the aggregate may total up to approximately $261,000,000 if all annual net sales milestones are achieved.

The
regulatory and commercial milestones must be achieved on or before December 31, 2035.

The
Merger Agreement includes representations and warranties and covenants of the parties customary for such a transaction. Until the earlier
of the termination of the Merger Agreement and the effective time of the acquisition, Melt has agreed to operate its business in the
ordinary course and has agreed to certain other operating covenants. In addition, Melt has agreed to use reasonable best efforts to obtain
approval of the Merger Agreement and the transactions contemplated thereby by the requisite Melt stockholders needed for approval.

The
closing of this acquisition has not yet occurred and is subject to certain customary closing conditions, including the approval of the
requisite stockholders of Melt, the continued accuracy of representations and warranties and performance of covenants, and the absence
of any material adverse effect. The Company expects to close this acquisition during the fourth quarter of 2025.

Formulation
Acquisitions

The
Company has acquired and sourced intellectual property rights related to certain proprietary innovations from certain inventors, innovator
companies and related parties (the “Inventors”) through multiple asset purchase agreements and license agreements. In general,
these agreements provide that the Inventors will cooperate with the Company in obtaining patent protection for the acquired intellectual
property and that the Company will use commercially reasonable efforts to research, develop and commercialize a product based on the
acquired intellectual property. In addition, the Company has acquired a right of first refusal on additional intellectual property and
drug development opportunities presented by these Inventors.