Company: HROW
Filing Date: 2025-08-11
Form Type: 10-Q
Source: 0001641172-25-022980
Chunk: 17

Company: HARROW, INC.
Filing Date: 2025-08-11
Form: 10-Q
Item: Item 1
Chunk 17
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codification by aligning them with the SEC’s regulations. The amendments to the various topics should be applied prospectively,
and the effective date for the Company for each amendment will be determined based on the effective date of the SEC’s removal of
the related disclosure from Regulation S-X or Regulation S-K. If the SEC has not removed the applicable requirement by June 30, 2027,
then the related amendment in ASU 2023-06 will be removed from the codification and will not become effective. Early adoption of this
ASU is prohibited. The Company does not expect the amendments in this ASU to have a material impact on the disclosures or presentation
in its consolidated financial statements.

In
December 2023, FASB issued ASU 2023-09, Income Taxes (Topic 740) - Improvements to Income Tax Disclosures, which enhances the
disclosures required for income taxes in the Company’s annual consolidated financial statements. Notably, this ASU requires entities
to disclose specific categories in the effective tax rate reconciliation and provide additional information for reconciling items that
meet a quantitative threshold. ASU 2023-09 is effective for the Company in its annual reporting for fiscal year 2025 on a prospective
basis. Early adoption and retrospective reporting are permitted. The Company is currently evaluating the impact of ASU 2023-09 on its
consolidated financial statements.

In
November 2024, the FASB issued ASU 2024-03, Income Statement – Reporting Comprehensive Income – Expense Disaggregation
Disclosures, to improve the disclosures by a public business entity about the types of expenses in commonly presented expense captions.
This ASU is effective for annual reporting periods beginning after December 15, 2026, and interim reporting periods beginning after December
15, 2027, with early adoption permitted. The Company is currently evaluating the impact of ASU 2024-03 on its consolidated financial
statements.

NOTE
3. REVENUES

The
Company accounts for contracts with customers in accordance with ASC 606, Revenues from Contracts with Customers. The Company
has two primary streams of revenue: (1) product revenues, including revenue recognized from sales of products through its pharmacy and
outsourcing facility and sales of branded products to wholesalers through a third-party logistics (“3PL”) partner, and (2)
revenue recognized from intellectual property licenses and related arrangements.

Product
Revenues

The
Company sells prescription medications directly