Company: HROW
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0001641172-25-009263
Chunk: 49

Company: HARROW, INC.
Filing Date: 2025-05-08
Form: 10-Q
Item: Item 1
Chunk 49
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 months ended March 31, 2025 compared to the prior
year period and an increase in our fixed expenses. The decrease in Branded gross margin between the three months ended March 31,
2025 and 2024 was primarily attributable to an increase of our fixed expenses, in particular, acquired product NDA amortizations
related to the launch of TRIESENCE and a related contingent milestone payment that was capitalized in the fourth quarter of
2024.

ImprimisRx

    Three Months Ended March 31, 

    2025  
    2024  
    $ Variance 
  
    Cost of sales 
    $7,343,000  
    $6,875,000  
    $468,000 
  
    Gross profit 
    $12,708,000  
    $13,843,000  
    $(1,135,000)
  
    Gross margin 
     63.4% 
     66.8% 
     (3.4)%

The increase in ImprimisRx
costs of sales between the three months ended March 31, 2025 and 2024 was primarily attributable to an increase in units sold during the
three months ended March 31, 2025 compared to the same period in 2024. However, due to product mix during the three months ended March
31, 2025 that included more sales of lower gross margin products and sales discounts,  ImprimisRx gross
margin decreased during the 2025 period compared to the prior year period.

Selling, General and Administrative Expenses

Our selling, general and administrative
expenses include personnel costs, including wages and stock-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
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