Company: HROW
Filing Date: 2025-08-11
Form Type: 10-Q
Source: 0001641172-25-022980
Chunk: 80

Company: HARROW, INC.
Filing Date: 2025-08-11
Form: 10-Q
Item: Item 2
Chunk 80
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 an increase in certain seasonal expenses, such
as increased costs associated with our annual audit and a special project that totaled $3,629,000 during the six months ended June 30,
2025. In addition, the increase in SG&A expenses between periods was attributable to the addition of new employees in sales, marketing
and other departments to support current and expected growth, which when combined contributed to a $12,042,000 increase in SG&A expenses
between the periods. These increases were offset by a $2,553,000 decrease in stock-based compensation expense between periods.

Research
and Development Expenses

Our
research and development (“R&D”) expenses primarily include 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 research and development expenses for the three and six months ended June 30, 2025 and 2024:

    For the
                                                                                Three Months Ended  
       
    For the
                                                                                Six Months Ended  

    June 30,  
    $  
    June 30,  
    $ 

    2025  
    2024  
    Variance  
    2025  
    2024  
    Variance 
  
    Research and development 
    $2,868,000  
    $3,053,000  
    $(185,000) 
    $5,894,000  
    $5,202,000  
    $692,000 

The
increase in R&D expenses between six-month periods was primarily attributable to increased activity related to our expanded branded
product portfolio, product acquisitions, product development efforts, product launches, and clinical and medical support.

33

Interest
Expense, Net

Interest
expense, net was $6,408,000 and $12,956,000 for the three and six months ended June 30, 2025, respectively, compared to $5,471,000 and
$10,886,000 for the same periods in 2024, respectively. The increase during the three and six months ended June 30, 2025 compared to
the same periods in 2024 was primarily the result of an increase in the outstanding principal amount of our debt obligations.

Investment
Loss from Eton

During
the