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

Company: HARROW, INC.
Filing Date: 2025-03-27
Form: 10-K
Item: Item 1
Chunk 27
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and certain other assets, in addition to costs associated with our drug candidate development programs.

During the year ended December
31, 2024, we incurred $12,230,000 in R&D expenses, compared to $6,652,000 during the year ended December 31, 2023.

Financial Information About Segments and Geographic
Areas

During 2024, the Company identified
two operating segments as reportable segments. The Branded segment includes activities of our FDA approved ophthalmology pharmaceutical
products, including the out-licensing of rights to certain of our products. The ImprimisRx segment represents activities in our ophthalmology-focused
pharmaceutical compounding business. The Company’s chief operating decision-maker (“CODM”) is the Chief Executive Officer
who evaluates the segment contribution to allocate resources. The CODM does not review segment assets when assessing segment performance
and deciding how to allocate resources.

The Company categorizes revenues
by geographic area based on selling location. All operations are currently located in the U.S.; therefore, total revenues for 2024 and
2023 were attributed to the U.S. All long-lived assets at December 31, 2024 and 2023 were located in the U.S.

Human Capital

As of February 28, 2025, we employed
382 individuals. Our employees are engaged in pharmacy operations, sales, marketing, research, development, and general and administrative
functions. We expect to add additional employees in all departmental functions, with a focus on sales force additions and other commercial
activities as we carry out our business plan in the next 12 months. We are not party to any collective bargaining agreements with any
of our employees. We have never experienced a work stoppage, and we believe our employee relations are good. We hire independent contractors
and consultants on an as-needed basis.

Talent Acquisition
and Retention

We recognize that our employees
largely contribute to our success. To this end, we support business growth by seeking to attract and retain best-in-class talent. Our
talent acquisition team uses internal and external resources to recruit highly skilled candidates in the U.S. We believe that we continue
to attract and retain superior talent as measured by our turnover rate and employee service tenure.

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Total Rewards

Our total rewards philosophy
has been to create investment in our workforce by offering competitive compensation and benefits packages. We provide employees with
compensation packages that include base salary, annual incentive bonuses, and