Company: HROW
Filing Date: 2025-03-27
Form Type: 10-K
Source: 0001641172-25-000925
Chunk: 466

Company: HARROW, INC.
Filing Date: 2025-03-27
Form: 10-K
Item: Item 1B
Chunk 466
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 Commercial Rights to Santen
and Eyevance Products

In July 2023, the Company entered into an Asset Purchase
Agreement with Eyevance Pharmaceuticals, LLC and a License Agreement with Santen S.A.S. (collectively, the “Santen Agreements”),
each a subsidiary of Santen Pharmaceuticals Co., Ltd. (collectively, “Santen”). Pursuant to the Santen Agreements, the Company
acquired the exclusive commercial rights to assets associated with the following ophthalmic products (collectively, the “Santen
Products”): FLAREX, NATACYN, ZERVIATE, VERKAZIA and FRESHKOTE in the U.S., and VERKAZIA and CATIONORM PLUS in Canada.

The transactions pursuant to the Santen Agreements
are referred to in these notes as the “Santen Products Acquisition.”

Under the terms of the Santen Agreements, the Company
made an initial one-time payment of $8,000,000. In addition, the Santen Agreements provide for various one-time contingent milestone
payments associated with certain manufacturing-related events as well as low-double digit royalty payments on net sales of VERKAZIA and
high-single digit royalty payments on net sales of CATIONORM PLUS. Under the Santen Agreements, the Company also assumed certain obligations
associated with other third parties that require mid-single digit royalties on sales of FRESHKOTE and ZERVIATE. Immediately following
the closing and subject to certain conditions, prior to the transfer of the Santen Products NDAs and other marketing authorizations to
the Company, Santen continued to sell the Santen Products on the Company’s behalf and transfer 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