Company: HROW
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0001641172-25-009263
Chunk: 61

Company: HARROW, INC.
Filing Date: 2025-05-08
Form: 10-Q
Item: Item 2
Chunk 61
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 March 31, 2025 and 2024 are not necessarily indicative of results for
any future period.

Revenues

Our revenues include amounts
recorded from sales of proprietary compounded formulations, sales of branded products to wholesalers through a third-party logistics facility,
commissions from third parties and revenues received from royalty payments owed to us pursuant to out-license arrangements.

The following presents our
revenues for the three months ended March 31, 2025 and 2024:

    For the Three Months Ended  

    March 31,  

    2025  
    2024  
    Variance 
  
    IHEEZO 
    $5,222,000  
    $2,321,000  
    $2,901,000 
  
    VEVYE 
     21,516,000  
     2,597,000  
     18,919,000 
  
    Other branded products 
     956,000  
     8,872,000  
     (7,916,000)
  
    Other revenues 
     86,000  
     79,000  
     7,000 
  
    Branded revenue, net 
     27,780,000  
     13,869,000  
     13,911,000 
  
    ImprimisRx revenue, net 
     20,051,000  
     20,718,000  
     (667,000)
  
    Total revenues, net 
    $47,831,000  
    $34,587,000  
    $13,244,000 

The
increase in revenues between periods was related to an increase in sales of our branded ophthalmology products. During the three months
ended March 31, 2025, revenues from branded products totaled $27,780,000, compared to $13,869,000 during the same period in the prior
year.

 27 

Cost of Sales, Gross Profit and Gross Margin

Our cost of sales includes
direct and indirect costs to manufacture formulations and sell products, including active pharmaceutical ingredients, personnel costs,
packaging, storage, royalties, shipping and handling costs, manufacturing equipment and tenant improvements depreciation, the write-off
of obsolete inventory, amortization of acquired product NDAs, and other related expenses.

Branded

    Three Months Ended March 31,