Company: HROW
Filing Date: 2025-11-10
Form Type: 10-Q
Source: 0001493152-25-021562
Chunk: 65

Company: HARROW, INC.
Filing Date: 2025-11-10
Form: 10-Q
Item: Item 1
Chunk 65
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and Development Expenses

Our
research and development (“R&D”) expenses primarily include personnel costs, including wages and stock-based compensation,
expenses related to the development of intellectual property, investigator-initiated research and evaluations, formulation development,
acquired in-process R&D and other costs related to the clinical development of our assets.

The
following presents our research and development expenses for the three and nine months ended September 30, 2025 and 2024:

    For the 
Three Months Ended  
       
    For the 
Nine Months Ended  

    September 30,  
    $  
    September 30,  
    $ 

    2025  
    2024  
    Variance  
    2025  
    2024  
    Variance 
  
    Research and development 
    $3,323,000  
    $2,273,000  
    $1,050,000  
    $9,217,000  
    $7,475,000  
    $1,742,000 

The
increase in R&D expenses between the three and nine month periods was primarily attributable to increased development activity related
to our branded product portfolio, new product candidate development efforts, and clinical and medical support.

Interest
Expense, Net

Interest
expense, net was $6,038,000 and $18,994,000 for the three and nine months ended September 30, 2025, respectively, compared to $5,525,000
and $16,411,000 for the same periods in 2024, respectively. The increase during the three and nine months ended September 30, 2025 compared
to the same periods in 2024 was primarily the result of an increase in the outstanding principal amount of our debt obligations.

Investment
Loss from Eton

During
the three and nine months ended September 30, 2024, we recorded a loss of $0 and $3,171,000, respectively, related to the change in fair
market value of common stock of Eton Pharmaceuticals, Inc. (“Eton”) at the time of its sale, including trading expenses and
commissions of approximately $436,000. In April 2024, we sold all of our shares of Eton.

Loss
on Early Extinguishment of Debt

During
the three and nine months ended September 30, 2025 we recorded a loss