Company: HROW
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0001641172-25-009263
Chunk: 20

Company: HARROW, INC.
Filing Date: 2025-05-08
Form: 10-Q
Item: Item 1
Chunk 20
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 through research and development services that are related to its proprietary know-how and expertise
of the delivered technology or can only be performed by the Company, then such non-refundable fees are deferred and recognized over the
period of continuing involvement. Guaranteed minimum annual royalties are recognized on a straight-line basis over the applicable term.

     13 

Revenue disaggregated by revenue source for the
three months ended March 31, 2025 and 2024 consisted of the following:

 SCHEDULE OF DISAGGREGATED REVENUE  

    For the Three Months Ended 

    March 31, 

    2024  
    2024 
  
    Product sales, net 
    $47,745,000  
    $34,508,000 
  
    Other revenues 
     86,000  
     79,000 
  
    Total revenues 
    $47,831,000  
    $34,587,000 

Deferred revenue and customer deposits at March
31, 2025 and December 31, 2024 were $145,000 and $44,000, respectively. All deferred revenue and customer deposit amounts at December
31, 2024 were recognized as revenue during the three months ended March 31, 2025.

NOTE 4. 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 March 31, 2025 and December 31, 2024 was as follows:

 SCHEDULE
OF INVENTORIES

    March 31, 2025  
    December 31, 2024 
  
    Raw materials 
    $5,113,000  
    $5,362,000 
  
    Work in progress 
     151,000  
     858,000 
  
    Finished goods 
     5,452,000  
     4,482,000 
  
    Total inventories 
    $10,716,000  
    $10,702,000 

NOTE 5. PREPAID EXPENSES AND OTHER CURRENT ASSETS

Prepaid expenses and other current assets at March
31, 2025 and December 31, 2024 consisted of the following:

 SCHEDULE
OF