Company: HROW
Filing Date: 2025-03-27
Form Type: 10-K
Source: 0001641172-25-000925
Chunk: 351

Company: HARROW, INC.
Filing Date: 2025-03-27
Form: 10-K
Item: Item 1A
Chunk 351
---
 balance sheet information
of Melt is summarized below:

 SCHEDULE
OF CONDENSED BALANCE SHEET

    2024  
    2023 

    December 31, 

    2024  
    2023 
  
    Current assets 
    $3,068,000  
    $13,404,000 
  
    Total assets 
    $3,068,000  
    $13,404,000 

    Total liabilities 
    $3,008,000  
    $3,922,000 
  
    Total preferred stock and stockholders’ equity 
     60,000  
     9,482,000 
  
    Total liabilities and stockholders’ equity 
    $3,068,000  
    $13,404,000 

NOTE 6. INVESTMENT IN SURFACE OPHTHALMICS, INC.
AND AGREEMENTS - RELATED PARTY TRANSACTIONS

The Company entered into an asset purchase and license
agreement with Surface in 2017 and amended it in April 2018 (the “Surface License Agreements”). Pursuant to the terms of
the Surface License Agreements, the Company assigned and licensed to Surface certain intellectual property and related rights associated
with Surface’s drug candidates (collectively, the “Surface Products”). Surface is required to make mid-single digit
royalty payments to the Company on net sales of the Surface Products while any patent rights remain outstanding.

As of December 31, 2024 and 2023, the Company owned 3,500,000 shares
of Surface common stock. Adrienne Graves and Perry J. Sternberg, directors of the Company, also are directors of Surface. Mark L. Baum,
who is the Company’s Chief Executive Officer, was previously a member of the Surface board of directors and resigned from his position
as a director of Surface on March 31, 2023.

NOTE 7. INVENTORIES

Inventories are comprised of finished compounded
formulations, over-the-counter and prescription retail pharmacy products, branded pharmaceutical products, including those held at the
Company’s 3PL partner, related laboratory supplies and active pharmaceutical ingredients. The composition of inventories as of
December 31, 2024 and 2023 was as follows:

 SCHEDULE
OF INVENTORIES

    2024  
    2023 

    December 31,