Company: HROW
Filing Date: 2025-11-10
Form Type: 10-Q
Source: 0001493152-25-021562
Chunk: 21

Company: HARROW, INC.
Filing Date: 2025-11-10
Form: 10-Q
Item: Item 1
Chunk 21
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 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.

    13

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 condensed consolidated statements of operations and accounts receivable in the condensed
consolidated balance sheets.

The
following table summarizes activity and ending balances of the Company’s variable consideration provisions in the condensed consolidated
financial statements for the nine months ended September 30, 2025, and 2024:

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, 2023 
    $2,810,000  
    $3,585,000  
    $771,000  
    $24,069,000  
    $971,000  
    $1,101,000  
    $33,307,000 
  
    Accruals/Adjustments 
     7,393,000  
     4,786,000  
     5,017,000  
     47,813,000  
     54,549,000  
     3,509,000