Company: HROW
Filing Date: 2025-03-27
Form Type: 10-K
Source: 0001641172-25-000925
Chunk: 2433

Company: HARROW, INC.
Filing Date: 2025-03-27
Form: 10-K
Item: Item 1C
Chunk 2433
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-based compensation, corporate
facility expenses, and investor relations, consulting, insurance, filing, legal and accounting fees and expenses as well as costs
associated with our marketing activities and sales of our proprietary compounded formulations and other non-proprietary pharmacy
products and formulations.

The following presents our
SG&A expenses for the years ended December 31, 2024 and 2023:

    For the Years Ended December 31,  
    $ 

    2024  
    2023  
    Variance 
  
    Selling, general and administrative 
    $129,064,000  
    $83,090,000  
    $45,974,000 

The increase in SG&A
expenses between periods was primarily attributable to the addition of new employees in sales, marketing and other departments to
support current and expected growth, including the commercial launch of VEVYE, which when combined contributed to a $32,743,000
increase in SG&A during the year ended December 31, 2024 compared to the prior year. In addition, stock-based compensation
expense increased by $1,863,000 during the year ended December 31, 2024 compared to the prior year. Regulatory enhancements and
costs to support the transition of recent product acquisitions also caused SG&A to be higher for the year ended December 31,
2024 compared to 2023.

 58 

Research and Development Expenses 

Our
research and development (“R&D”) expenses primarily included 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 R&D
expenses for the years ended December 31, 2024 and 2023:

    For the Years Ended December 31,  
    $ 

    2024  
    2023  
    Variance 
  
    Research and development 
    $12,230,000  
    $6,652,000  
    $5,578,000 

The increase in R&D expenses
between the years ended December 31, 2024 and 2023 was primarily attributable to activity related to our expanded branded product portfolio,
technical transfer activities associated with the production of certain products related to our product acquisitions that occurred in
2023, product development efforts, product launches, and clinical and