Company: HROW
Filing Date: 2025-03-27
Form Type: 10-K
Source: 0001641172-25-000925
Chunk: 1102

Company: HARROW, INC.
Filing Date: 2025-03-27
Form: 10-K
Item: Item 7
Chunk 1102
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, 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 medical support. In addition, during the fourth quarter of 2024,
we recorded $2,000,000 of one-time R&D costs associated with the product development of TRIESENCE. 

Impairment and Disposal of Long-Lived Assets

During the year ended December
31, 2024, we recognized an impairment loss of $253,000 related to intellectual property that we expect to no longer utilize in future
revenue generating products and compounded formulations. During the year ended December 31, 2023, we recorded a charge of $548,000, of
which, $380,000 was related to the impairment of licenses, trademarks, patents and patent applications and $168,000 was related to equipment
that was no longer in service.

Interest Expense, net 

Interest expense, net was $22,786,000
during the year ended December 31,