Company: HROW
Filing Date: 2025-03-27
Form Type: 10-K
Source: 0001641172-25-000925
Chunk: 569

Company: HARROW, INC.
Filing Date: 2025-03-27
Form: 10-K
Item: Item 2
Chunk 569
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Property, plant and equipment is stated at cost less
accumulated depreciation and amortization. Depreciation and amortization is calculated using the straight-line method over the estimated
useful life of the asset. Leasehold improvements and finance lease equipment are amortized over the estimated useful life or remaining
lease term, whichever is shorter. Computer hardware and furniture and equipment are depreciated over three to five years.

Capitalized Software Costs

The Company capitalizes certain costs related to
the development of internal-use software. Costs incurred during the application development phase are capitalized only when the Company
believes it is probable the development will result in new or additional functionality. The types of costs capitalized during the application
development phase include consulting fees for third-party developers working on these projects. Costs related to the preliminary project
stage and post-implementation activities are expensed as incurred. Internal-use software is amortized on a straight-line basis over the
estimated useful life of the asset, which ranges from two to five years. When internal-use software that was previously capitalized is
abandoned, the cost less the accumulated amortization, if any, is recorded as amortization expense. Fully amortized capitalized internal-use
software costs are removed from their respective accounts.

Goodwill and Intangible Assets

Patents and trademarks are recorded at cost and
capitalized at a time when the future economic benefits of such patents and trademarks become more certain. At that time, the
Company capitalizes third-party legal costs and filing fees associated with obtaining and successfully prosecuting claims related to
its patents and trademarks. Once the patents have been issued, the Company amortizes these costs over the shorter of the legal life
of the patent or its estimated economic life, generally 20
years, using the straight-line method. Acquired product rights, including new drug applications (“NDAs”), are amortized
over their estimated useful lives, generally 4-15
years, based on a straight-line method. Trademarks are an indefinite-lived intangible asset and are assessed for impairment based on
future projected cash flows as further described below.

    F-15

The Company reviews its goodwill and indefinite-lived
intangible assets for impairment as of January 1 of each year and when an event or a change in circumstances indicates the fair value
of a reporting unit may be below its carrying amount. Events or changes in circumstances considered as impairment indicators include
but are not limited to the following:

    ●
    significant underperformance of the Company’s business relative
    to expected operating