Company: HROW
Filing Date: 2025-08-11
Form Type: 10-Q
Source: 0001641172-25-022980
Chunk: 23

Company: HARROW, INC.
Filing Date: 2025-08-11
Form: 10-Q
Item: Item 1
Chunk 23
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 part
of the Company are recognized as revenue when the license term commences and the licensed data, technology, compounded drug preparation
and/or other deliverables are delivered. Such deliverables may include physical quantities of compounded drug preparations, design of
the compounded drug preparations and structure-activity relationships, the conceptual framework and mechanism of action, and rights to
the patents or patent applications for such compounded drug preparations. The Company defers recognition of non-refundable fees if it
has continuing performance obligations without which the technology, right, product or service conveyed in conjunction with the non-refundable
fee has no utility to the licensee and that are separate and independent of the Company’s performance under the other elements
of the arrangement. In addition, if the Company’s continued involvement is required, 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.

    14

Revenue
disaggregated by revenue source for the three and six months ended June 30, 2025 and 2024 consisted of the following:

 SCHEDULE OF DISAGGREGATED REVENUE  

    2025  
    2024  
    2025  
    2024 

    For the Three Months Ended  
    For the Six Months Ended 

    June 30,  
    June 30, 

    2025  
    2024  
    2025  
    2024 
  
    Product sales, net 
    $63,657,000  
    $48,871,000  
    $111,402,000  
    $83,379,000 
  
    Other revenues 
     85,000  
     68,000  
     171,000  
     147,000 
  
    Total revenues 
    $63,742,000  
    $48,939,000  
    $111,573,000  
    $83,526,000 

Deferred
revenue and customer deposits at June 30, 2025 and December 31, 2024 were $91,000 and $44,000, respectively. All deferred revenue and
customer deposit amounts at December