Company: HROW
Filing Date: 2025-03-27
Form Type: 10-K
Source: 0001641172-25-000925
Chunk: 324

Company: HARROW, INC.
Filing Date: 2025-03-27
Form: 10-K
Item: Item 1A
Chunk 324
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, which includes transaction costs in addition to consideration given. No gain or loss is recognized as of the date of
acquisition unless the fair value of non-cash assets given as consideration differs from the assets’ carrying amounts on the acquiring
entity’s financial statements. Consideration transferred that is non-cash will be measured based on either the cost (which shall
be measured based on the fair value of the consideration given) or the fair value of the assets acquired, and liabilities assumed, whichever
is more clearly evident and more reliably measurable. The obligation for contingent consideration payments is recorded when probable
and reasonably estimable. Contingent consideration recognized is included in the initial cost of the assets acquired and any subsequent
changes in the recorded amount of contingent consideration are recognized as an adjustment to the cost basis of the acquired assets and
allocated to the acquired assets based on the relative fair value at the date of acquisition. Goodwill is not recognized in an asset
acquisition and any excess consideration transferred over the fair value of the net assets acquired is allocated to the identifiable
assets based on relative fair values.

Noncontrolling Interests

The Company recognizes any noncontrolling interest
as a separate line item in equity in the consolidated financial statements. A noncontrolling interest represents the portion of equity
ownership in a less-than-wholly-owned subsidiary not attributable to the Company. Generally, any interest that holds less than 50%
of the outstanding voting shares is deemed to be a noncontrolling interest; however, there are other factors that are considered as well,
such as decision-making rights. When applicable, and in prior periods, the Company includes the amount of net loss attributable
to noncontrolling interests in consolidated net loss on the face of the consolidated statements of operations.

    F-11

The Company provides in the consolidated statements
of stockholders’ equity a reconciliation at the beginning and the end of the period of the carrying amount of total equity, equity
attributable to the parent, and equity attributable to the noncontrolling interests that separately discloses:

    1.
    net income or loss;

    2.
    transactions with owners acting in their capacity as owners, showing
    separately contributions from and distributions to owners; and

    3.
    each component of other income or loss.

The noncontrolling interests in the consolidated
balance sheets as of December 31, 2024 and 2023, relate to consolidated subsidiaries for which the Company does not own 100% of the equity