Company: HROW
Filing Date: 2025-03-27
Form Type: 10-K
Source: 0001641172-25-000925
Chunk: 474

Company: HARROW, INC.
Filing Date: 2025-03-27
Form: 10-K
Item: Item 1B
Chunk 474
---
disposed of property, plant and equipment with a net book value of $168,000 related to the discontinued use of certain lab equipment,
which is included in other expense, net in the consolidated statement of operations. The Company recorded depreciation and amortization
expense of $1,269,000 and $1,055,000 during the years ended December 31, 2024 and 2023, respectively.

NOTE 10. CAPITALIZED SOFTWARE COSTS

Capitalized software costs at December 31, 2024 and
2023 consisted of the following:

 SCHEDULE OF CAPITALIZED SOFTWARE COSTS

    2024  
    2023 

    December 31, 

    2024  
    2023 
  
    Capitalized software costs 

    Capitalized internal-use software development costs 
    $3,395,000  
    $2,780,000 
  
    Acquired third-party software license for internal-use 
     205,000  
     159,000 
  
    Total gross capitalized software for internal-use 
     3,600,000  
     2,939,000 
  
    Accumulated amortization 
     (1,849,000) 
     (1,268,000)
  
    Capitalized internal-use software in process 
     -  
     467,000 
  
    Total capitalized software
    costs net 
    $1,751,000  
    $2,138,000 

The Company recorded amortization expense of $581,000
and $475,000 during the years ended December 31, 2024 and 2023, respectively.

    F-27

NOTE 11. INTANGIBLE ASSETS AND GOODWILL

The Company’s intangible assets at December
31, 2024 consisted of the following:

 SCHEDULE OF INTANGIBLE ASSETS

    Weighted-average 

    Net 

    useful life 
       
    Accumulated  
       
    Carrying 

    (in years) 
    Cost  
    amortization  
    Impairment  
    value 
  
    Patents 
    19
years 
    $611,000  
    $(216,000) 
    $(253,000) 
    $142,000 
  
    Licenses 
    20
years 
     50,000  
     (36