Company: HROW
Filing Date: 2025-03-27
Form Type: 10-K
Source: 0001641172-25-000925
Chunk: 935

Company: HARROW, INC.
Filing Date: 2025-03-27
Form: 10-K
Item: Item 5
Chunk 935
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 the licensee and that are
separate and independent of the Company’s performance under the other elements of the arrangement. In addition, if the Company’s
continued involvement is required, through research and development services that are related to its proprietary know-how and expertise
of the delivered technology or can only be performed by the Company, then such non-refundable fees are deferred and recognized over the
period of continuing involvement. Guaranteed minimum annual royalties are recognized on a straight-line basis over the applicable term.

    F-22

Revenue disaggregated by revenue source for the years
ended December 31, 2024 and 2023, consists of the following:

 SCHEDULE OF DISAGGREGATED REVENUE  

    2024  
    2023 

    For the Years Ended December 31, 

    2024  
    2023 
  
    Product sales, net 
    $198,619,000  
    $117,447,000 
  
    Transfer of acquired product sales/profits 
     995,000  
     12,746,000 
  
    Total revenues 
    $199,614,000  
    $130,193,000 

Deferred revenue and customer deposits at December
31, 2024 and 2023, were $44,000 and $75,000, respectively. All deferred revenue and customer deposit amounts at December 31, 2023 were
recognized as revenue during the year ended December 31, 2024.

NOTE 4. RECENT PRODUCT ACQUISITIONS AND LICENSES

Acquisition of VEVYETM U.S. and Canadian Commercial
Rights

In July 2023, the Company acquired commercial rights
of VEVYE (cyclosporine ophthalmic solution) 0.1%, an ophthalmic drug product, for the U.S. and Canadian markets (the “VEVYE Acquisition”).
The Company acquired the commercial rights to VEVYE by entering into a license agreement with Novaliq GmbH (“Novaliq”). As
consideration, the Company made initial payments to Novaliq totaling $8,000,000 and will pay low double-digit royalties on net sales
of VEVYE along with potential commercial milestone payments.

The Company accounted for the VEVYE Acquisition as
an acquisition of assets and capitalized the initial payments of $8,000,000 and costs of $70,000 associated with