Company: HROW
Filing Date: 2025-03-27
Form Type: 10-K
Source: 0001641172-25-000925
Chunk: 2591

Company: HARROW, INC.
Filing Date: 2025-03-27
Form: 10-K
Item: Item 8
Chunk 2591
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 contracted rates and NPP. To evaluate the adequacy of the administrative fee accruals, on-hand inventory counts are obtained from
the wholesalers. The Company continually monitors administrative fee activity and adjusts accruals when it is expected that actual administrative
fees may differ from the accruals. Accruals for administrative fees and other rebates are recorded as a reduction in both gross revenues
in the consolidated statements of operations and accounts receivable or accrued expenses in the consolidated balance sheets.

Co-payment
Assistance

Patients
who meet certain eligibility requirements may receive co-payment assistance funded by the Company. The Company records contra-revenue
for co-payment assistance based on actual program participation and estimates of program redemption using data provided by third-party
administrators. An accrued liability is recorded on unredeemed co-payment assistance related to products for which control has been transferred
to the customer.

Prompt Payment Discounts

Sales discounts may be granted
to customers for prompt payment. The reserve for prompt payment discounts is based on invoices outstanding. Based on past experience,
it is assumed that all available discounts will be taken. Accruals for prompt payment discounts are recorded as a reduction in both gross
revenues in the consolidated statements of operations and accounts receivable in the consolidated balance sheets.

    F-21

The
following table summarizes activity and ending balances of the Company’s variable consideration provisions in the consolidated
financial statements for the years ended December 31, 2024, and 2023:

SCHEDULE
OF ACCRUALS AND ALLOWANCES

    Chargebacks  
    Government Rebates  
    Returns  
    Administrative Fees and Other Rebates  
     
    Co-Pay Assistance  

    Prompt Pay Discounts

    Total 

    Accruals for Chargebacks, Returns, and Other Allowances  

    Chargebacks  
    Government Rebates  
    Returns  
    Administrative Fees and Other Rebates  
    Co-Pay Assistance

    Prompt Pay Discounts

    Total 
  
    Balance at December 31, 2022 (1) 
     256,000  
     -  
     49,000  
     370,000  
     
    -

     31,000

    706,000 
  
    Accruals/Adjustments 
     6,093,000  
     5,153,000  
     1,576,000  
     33,498,