Company: HROW
Filing Date: 2025-03-27
Form Type: 10-K
Source: 0001641172-25-000925
Chunk: 281

Company: HARROW, INC.
Filing Date: 2025-03-27
Form: 10-K
Item: Item 1A
Chunk 281
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 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 31, 2023 was primarily related to proceeds received from
the issuance of the Oaktree Loan and Oaktree Amendment, issuance of unsecured debt and sale of our equity, offset by payment of payroll
taxes upon vesting of PSUs in exchange for shares withheld from employees.

Sources of Capital

During the year ended December
31, 2024, our principal sources of cash came from proceeds from the Oaktree Amendment. In future periods, including the year ending December
31, 2025, we expect cash to be provided from our operating activities, but our forecasts may not be accurate and our plans may change.
We may also sell some or all of our ownership interests in Surface, Melt or our other subsidiaries

In January 2026 the Oaktree
Loan matures which totals $107,500,000 principal amount outstanding