Company: HROW
Filing Date: 2025-03-27
Form Type: 10-K
Source: 0001641172-25-000925
Chunk: 984

Company: HARROW, INC.
Filing Date: 2025-03-27
Form: 10-K
Item: Item 6
Chunk 984
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 sales between the years ended December 31, 2024 and 2023 was largely attributable to expenses associated with the increase in
unit volumes sold.

Gross Profit and Margin

Branded

    For the Years Ended December 31,  
    $ 

    2024  
    2023  
    Variance 
  
    Gross profit 
    $94,448,000  
    $37,596,000  
    $56,852,000 
  
    Gross margin 
     81.3% 
     74.8% 
     6.5%

The increase in Branded gross
margin between the years ended December 31, 2024 and 2023 was primarily attributable to an increase in overall sales which reduced the
net impact of our fixed expenses in cost of sales, such as NDA license amortization.

ImprimisRx

    For the Years Ended December 31,  
    $ 

    2024  
    2023  
    Variance 
  
    Gross profit 
    $55,921,000  
    $52,957,000  
    $2,964,000 
  
    Gross margin 
     67.0% 
     66.3% 
     0.7%

The increase in ImprimisRx gross margin between the
years ended December 31, 2024 and 2023 was primarily attributable to an increase in sales of products during 2024 with lower gross margin
profiles as compared to 2023.

Selling, General and Administrative Expenses

Our selling, general and
administrative (“SG&A”) expenses include personnel costs, including wages and stock-based compensation, corporate
facility expenses, and investor relations, consulting, insurance, filing, legal and accounting fees and expenses as well as costs
associated with our marketing activities and sales of our proprietary compounded formulations and other non-proprietary pharmacy
products and formulations.

The following presents our
SG&A expenses for the years ended December 31, 2024 and 2023:

    For the Years Ended December 31,  
    $ 

    2024  
    2023  
    Variance 
  
    Selling, general and administrative 
    $129,064,000  
    $83,090,000  
    $45,974,000 

The increase in SG&A
expenses between periods was primarily attributable to the