Company: HROW
Filing Date: 2025-03-27
Form Type: 10-K
Source: 0001641172-25-000925
Chunk: 277

Company: HARROW, INC.
Filing Date: 2025-03-27
Form: 10-K
Item: Item 1A
Chunk 277
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 sales, such as NDA license amortization.

ImprimisRx

    For the Years Ended December 31,  
    $ 

    2024  
    2023  
    Variance 
  
    Gross profit 
    $55,921,000  
    $52,957,000  
    $2,964,000 
  
    Gross margin 
     67.0% 
     66.3% 
     0.7%

The increase in ImprimisRx gross margin between the
years ended December 31, 2024 and 2023 was primarily attributable to an increase in sales of products during 2024 with lower gross margin
profiles as compared to 2023.

Selling, General and Administrative Expenses

Our selling, general and
administrative (“SG&A”) 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
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,