Company: HROW
Filing Date: 2025-03-27
Form Type: 10-K
Source: 0001641172-25-000925
Chunk: 1267

Company: HARROW, INC.
Filing Date: 2025-03-27
Form: 10-K
Item: Item 7A
Chunk 1267
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 the net profit from the sale of
the Santen Products to the Company. In October 2023, the Company completed the transfer of the U.S. NDAs and rights of the Santen Products.

    F-23

The assets acquired in the Santen Products Acquisition
are identifiable intangible asset groups in similar asset classes and all directly related to the product NDAs and marketing authorizations
acquired. The developed technology is within one major intangible asset class. No workforce/employees were included in the Santen Products
Acquisition and the Company is required to utilize its own business inputs/processes to transfer and commercialize the Santen Products.

The Company incurred $139,000 in costs associated
with the Santen Products Acquisition, the payment of $8,000,000 at closing and a near term milestone
of $500,000. The total purchase price of the Santen Products Acquisition was $8,639,000 and was accounted for as an asset acquisition.
At the time of the Santen Products Acquisition and as of December 31, 2023 and 2024, the remaining contingent consideration due was not
considered probable and reasonably estimable and therefore, no amount was included in the purchase price of the Santen Products Acquisition.
At the time the contingent consideration due becomes probable and reasonably estimable the additional consideration, if any, paid will
be allocated to all of the assets on a pro rata basis based on their initial estimated fair values as a percent of the total purchase
price.

Acquisition of ILEVRO, NEVANAC, VIGAMOX, MAXIDEX,
and TRIESENCE

In December 2022, the Company
entered into an Asset Purchase Agreement (the “NVS 5 APA”) with Novartis Technology, LLC and Novartis Innovative Therapies
AG (together, “Novartis”), pursuant to which the Company agreed to purchase from Novartis the exclusive commercial rights
to assets associated with the following ophthalmic products (collectively the “NVS 5 Products”) in the U.S. (the “NVS
5 Acquisition”): ILEVRO, NEVANAC, VIGAMOX, MAXIDEX, and TRIESENCE.

Under the terms of the NVS
5 APA, the Company made a one-time payment of $130,000,000 at closing in January 2023, with up to another $45,000,000 due in a milestone