Company: HROW
Filing Date: 2025-08-11
Form Type: 10-Q
Source: 0001641172-25-022980
Chunk: 58

Company: HARROW, INC.
Filing Date: 2025-08-11
Form: 10-Q
Item: Item 1
Chunk 58
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1.7%

The
increase in Branded cost of sales was primarily attributable to an increase in units sold during the three and six months ended June
30, 2025 compared to the prior year periods and an increase in our fixed expenses. The decrease in Branded gross margin between the three
and six months ended June 30, 2025 and 2024 was primarily attributable to an increase in our fixed expenses, in particular, acquired
product NDA amortizations related to the launch of TRIESENCE and a related contingent milestone payment that was capitalized in the fourth
quarter of 2024.

ImprimisRx

    Three Months Ended June 30,  
    Six Months Ended June 30, 

    2025  
    2024  
    Variance  
    2025  
    2024  
    Variance 
  
    Cost of Sales 
    $7,496,000  
    $6,980,000  
    $516,000  
    $14,839,000  
    $13,855,000  
    $984,000 
  
    Gross profit 
    $13,972,000  
    $14,600,000  
    $(628,000) 
    $26,680,000  
    $28,443,000  
    $(1,763,000)
  
    Gross margin 
     65.1% 
     67.7% 
     -2.6% 
     64.3% 
     67.2% 
     -3.0%

32

The
increase in ImprimisRx costs of sales between the three and six months ended June 30, 2025 and 2024 was primarily attributable to an
increase in units sold during the three and six months ended June 30, 2025 compared to the same periods in 2024. However, due to product
mix during the three and six months ended June 30, 2025 that included more sales of lower gross margin products and sales discounts,
ImprimisRx gross margin decreased during the 2025 periods compared to the prior year period.

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