Company: HROW
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0001641172-25-009263
Chunk: 63

Company: HARROW, INC.
Filing Date: 2025-05-08
Form: 10-Q
Item: Item 2
Chunk 63
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compounded formulations and other non-proprietary pharmacy products and formulations.

The following presents our
selling, general and administrative expenses for the three months ended March 31, 2025 and 2024:

    For the Three Months Ended  

    March 31,  
    $ 

    2025  
    2024  
    Variance 
  
    Selling, general and administrative 
    $40,513,000  
    $28,813,000  
    $11,700,000 

 28 

The increase in selling, general
and administrative expenses between periods was primarily attributable to an increase in  certain seasonal expenses, such
as increased costs associated with our annual audit and a special project that totaled $3,629,000 during the three months ended March
31, 2025. In addition, the increase in SG&A expenses between periods was attributable to the addition of new employees in sales, marketing
and other departments to support current and expected growth, which when combined contributed to a $11,700,000 increase in SG&A between
the periods.

Research 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 months ended March 31, 2025 and 2024:

    For the Three Months Ended  

    March 31,  
    $ 

    2025  
    2024  
    Variance 
  
    Research and development 
    $3,026,000  
    $2,149,000  
    $877,000 

The increase in R&D expenses
between periods was primarily attributable to increased activity related to our expanded branded product portfolio, product acquisitions,
product development efforts, product launches, and clinical and medical support.

Interest Expense, Net

Interest expense, net was
$6,548,000 for the three months ended March 31, 2025, compared to $5,415,000 for the same period in 2024. The increase during the period
ended March 31, 2025 compared to the same period in 2024 was primarily  the result of an increase in the outstanding principal amount
of our