Company: HROW
Filing Date: 2025-03-27
Form Type: 10-K
Source: 0001641172-25-000925
Chunk: 167

Company: HARROW, INC.
Filing Date: 2025-03-27
Form: 10-K
Item: Item 1
Chunk 167
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is 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 with technology transfer of the NVS 5 Products manufacturing to other third-party manufacturers, if needed.

The assets acquired in the NVS 5 Acquisition are
identifiable intangible asset groups in similar asset classes and all directly related to the five product NDAs acquired. The developed
technology is within one major intangible asset class. No workforce/employees were included in the NVS 5 Acquisition, and the Company
is required to utilize its own business inputs/processes to transfer and commercialize the NVS 5 Products and NDAs.

The Company incurred $558,000 in costs associated
with the NVS 5 Acquisition. Including such acquisition costs and the payment of $130,000,000 at closing, the total purchase price of
the NVS 5 Acquisition was $130,558,000 and was accounted for as an asset acquisition. At the time of the NVS 5 Acquisition and as of
December 31, 2023, the contingent consideration due related to the commercial availability of TRIE