Company: HROW
Filing Date: 2025-03-27
Form Type: 10-K
Source: 0001641172-25-000925
Chunk: 278

Company: HARROW, INC.
Filing Date: 2025-03-27
Form: 10-K
Item: Item 1A
Chunk 278
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 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 R&D
expenses for the years ended December 31, 2024 and 2023:

    For the Years Ended December 31,  
    $ 

    2024  
    2023  
    Variance 
  
    Research and development 
    $12,230,000  
    $6,652,000  
    $5,578,000 

The increase in R&D expenses
between the years ended December 31, 2024 and 2023 was primarily attributable to activity related to our expanded branded product portfolio,
technical transfer activities associated with the production of certain products related to our product acquisitions that occurred in
2023, product development efforts, product launches, and clinical and medical support. In addition, during the fourth quarter of 2024,
we recorded $2,000,000 of one-time R&D costs associated with the product development of TRIESENCE. 

Impairment and Disposal of Long-Lived Assets

During the year ended December
31, 2024, we recognized an impairment loss of $253,000 related to intellectual property that we expect to no longer utilize in future
revenue generating products and compounded formulations. During the year ended December 31, 2023, we recorded a charge of $548,000, of
which, $380,000 was related to the impairment of licenses, trademarks, patents and patent applications and $168,000 was related to equipment
that was no longer in service.

Interest Expense, net 

Interest expense, net was $22,786,000
during the year ended December 31, 2024, compared to $21,324,000 during the year ended December 31, 2023. The increase was primarily
due to an increase in the principal balance of our loans throughout the two periods presented. 

Investment Gain (Loss) from Eton

During the year ended December
31, 2024, we recorded a loss of $(3,171,000) related to the change in fair market value of Eton’s common stock at the time of its
sale, including trading expenses and commissions of approximately $436,000, compared to a gain of $3,092,000 during the year ended December
31, 2023.  

Loss on Early Exting