Company: HROW
Filing Date: 2025-03-27
Form Type: 10-K
Source: 0001641172-25-000925
Chunk: 1147

Company: HARROW, INC.
Filing Date: 2025-03-27
Form: 10-K
Item: Item 7
Chunk 1147
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 of $416,000 and $371,000, respectively. The following table provides a roll-forward of the allowance
for credit losses that is deducted from the amortized cost basis of accounts receivable to present the net amount expected to be collected
at December 31, 2024 and 2023:

  SCHEDULE
OF ACCOUNTS RECEIVABLE ALLOWANCE OF CREDIT LOSS 

    Balance at January 1, 2023 
    $73,000 
  
    Change in expected credit losses 
     332,000 
  
    Write-offs, net of recoveries 
     (34,000)
  
    Balance at December 31, 2023 
     371,000 
  
    Change in expected credit losses 
     120,000 
  
    Write-offs, net of recoveries 
     (75,000)
  
    Balance at December 31, 2024 
    $416,000 

    F-10

Business Combinations and Asset Acquisitions

The Company evaluates acquisitions of assets and
other similar transactions to assess whether the transaction should be accounted for as a business combination or asset acquisition by
first applying a screen to determine if substantially all of the fair value of the gross assets acquired is concentrated in a single
identifiable asset or group of similar identifiable assets. If the screen is met, the transaction is accounted for as an asset acquisition.
If the screen is not met, further determination is required as to whether the Company has acquired inputs, process, and output, which
would meet the requirements of a business. If determined to be a business combination, the Company accounts for the transaction under
the acquisition method of accounting as indicated in Financial Accounting Standards Board (“FASB”) Accounting Standards Codification
(“ASC”).

ASC 805, Business Combinations, requires the
acquiring entity in a business combination to recognize the fair value of all assets acquired, liabilities assumed, and any non-controlling
interest in the acquiree and establishes the acquisition date as the fair value measurement point. Accordingly, the Company recognizes
assets acquired and liabilities assumed in business combinations, including any contingent assets and liabilities, and any non-controlling
interest in the acquiree based on the fair value estimates as of the date of acquisition. The Company recognizes and measures goodwill
as of the acquisition date, as the excess of the fair value of the consideration paid over the fair value of the identified net assets
acquired.

The consideration for the Company’s business