Company: HROW
Filing Date: 2025-03-27
Form Type: 10-K
Source: 0001641172-25-000925
Chunk: 1100

Company: HARROW, INC.
Filing Date: 2025-03-27
Form: 10-K
Item: Item 7
Chunk 1100
---
,564,000 
  
    Total revenues, net 
    $199,614,000  
    $130,193,000  
    $69,421,000 

The increase in revenues
from product sales between the years ended December 31, 2024 and 2023 was largely attributed to increased sales and marketing
efforts, new product launches (e.g. VEVYE) and the closing of certain product acquisitions that occurred in 2023. The decrease in
other revenues between the years ended December 31, 2024 and 2023 was the result of profit transfers from acquired products during
2023, and upon transfer of those product New Drug Applications (“NDAs”) we stopped recording a profit transfer and began
booking revenues from the sale of those products.

Cost of Sales

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.

The following presents our cost
of sales for the years ended December 31, 2024 and 2023:

Branded

    For the Years Ended December 31,  
    $ 

    2024  
    2023  
    Variance 
  
    Cost of sales 
    $21,667,000  
    $12,662,000  
    $9,005,000 

The increase in cost of sales
associated with our branded products between the years ended December 31, 2024 and 2023 was largely attributable to the increase in products
sold and amortization of acquired product NDAs which totaled $10,093,000 for the year ended December 31, 2024, compared to $9,314,000
during the prior year.

 57 

ImprimisRx

    For the Years Ended December 31,  
    $ 

    2024  
    2023  
    Variance 
  
    Cost of sales 
    $27,578,000  
    $26,978,000  
    $600,000 

The increase in our ImprimisRx
cost of sales between the years ended December 31, 2024 and 2023 was largely attributable to expenses associated with the increase in