Company: HROW
Filing Date: 2025-03-27
Form Type: 10-K
Source: 0001641172-25-000925
Chunk: 467

Company: HARROW, INC.
Filing Date: 2025-03-27
Form: 10-K
Item: Item 1B
Chunk 467
---
 a near term milestone
of $500,000. The total purchase price of the Santen Products Acquisition was $8,639,000 and was accounted for as an asset acquisition.
At the time of the Santen Products Acquisition and as of December 31, 2023 and 2024, the remaining contingent consideration due was not
considered probable and reasonably estimable and therefore, no amount was included in the purchase price of the Santen Products Acquisition.
At the time the contingent consideration due becomes probable and reasonably estimable the additional consideration, if any, paid will
be allocated to all of the assets on a pro rata basis based on their initial estimated fair values as a percent of the total purchase
price.

Acquisition of ILEVRO, NEVANAC, VIGAMOX, MAXIDEX,
and TRIESENCE

In December 2022, the Company
entered into an Asset Purchase Agreement (the “NVS 5 APA”) with Novartis Technology, LLC and Novartis Innovative Therapies
AG (together, “Novartis”), pursuant to which the Company agreed to purchase from Novartis the exclusive commercial rights
to assets associated with the following ophthalmic products (collectively the “NVS 5 Products”) in the U.S. (the “NVS
5 Acquisition”): ILEVRO, NEVANAC, VIGAMOX, MAXIDEX, and TRIESENCE.

Under the terms of the NVS
5 APA, the Company made a one-time payment of $130,000,000 at closing in January 2023, with up to another $45,000,000 due in a milestone
payment related to the timing of the commercial availability of TRIESENCE. The milestone payment due upon commercial availability for
TRIESENCE decreased from $45,000,000 to $37,000,000 on January 20, 2024. Pursuant to the NVS 5 APA and various ancillary agreements,
immediately following the closing and subject to certain conditions and prior to the transfer of the NVS 5 Products NDAs to the Company,
Novartis continued to sell the NVS 5 Products on the Company’s behalf and transfer the net profit from the sale of the NVS 5 Products
to the Company. Novartis has agreed to supply certain NVS 5 Products to the Company for a period of time after the NDAs are transferred
and to assist