Company: HROW
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0001641172-25-009263
Chunk: 41

Company: HARROW, INC.
Filing Date: 2025-05-08
Form: 10-Q
Item: Item 1
Chunk 41
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31, 2025.

NOTE 14. SEGMENTS AND CONCENTRATIONS

The Company operates in two reportable segments
which are generally determined based on the decision-making structure of the Company and the grouping of similar products and services:
Branded and ImprimisRx.

·The Branded segment includes activities of the Company’s FDA-approved ophthalmology
pharmaceutical products, including the out-licensing of rights to certain of our branded products.

·The ImprimisRx segment represents activities in the Company’s ophthalmology-focused
pharmaceutical compounding business.

Segment contribution for the segments represents
net revenues less cost of sales, certain general and administrative expenses, selling and marketing expenses, and research and development
expenses. The Company does not evaluate the following items at the segment level:

·Selling, general and administrative expenses that result from shared infrastructure, including certain
expenses associated with legal matters, public company costs (e.g. investor relations), Board of Directors and principal executive officers
and other like shared expenses.

·Operating expenses within selling, general and administrative expenses that result from the impact of
corporate initiatives. Corporate initiatives primarily include integration, restructuring, acquisition and other shared costs.

·Other select revenues and operating expenses including research and development expenses, amortization,
and asset sales and impairments, net as not all such information has been accounted for at the segment level, or such information has
not been used by all segments.

Segment net revenues, segment operating expenses
and segment contribution information consisted of the following:

SCHEDULE
OF SEGMENT NET REVENUES

    Branded  
    Compounding  
    Consolidated  
    Branded  
    Compounding  
    Consolidated 

    Three Months Ended March 31, 2025  
    Three Months Ended March 31, 2024 

    Branded  
    Compounding  
    Consolidated  
    Branded  
    Compounding  
    Consolidated 
  
    Product sales, net 
    $27,694,000  
    $20,051,000  
    $47,745,000  
    $13,790,000  
    $20,718,000  
    $34,508,000 
  
    Other revenues 
     86,000  
     -  
     86,000  
     79,000  
     -  
     79,000