Company: HROW
Filing Date: 2025-03-27
Form Type: 10-K
Source: 0001641172-25-000925
Chunk: 166

Company: HARROW, INC.
Filing Date: 2025-03-27
Form: 10-K
Item: Item 1
Chunk 166
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 In addition, the Santen Agreements provide for various one-time contingent milestone
payments associated with certain manufacturing-related events as well as low-double digit royalty payments on net sales of VERKAZIA and
high-single digit royalty payments on net sales of CATIONORM PLUS. Under the Santen Agreements, the Company also assumed certain obligations
associated with other third parties that require mid-single digit royalties on sales of FRESHKOTE and ZERVIATE. Immediately following
the closing and subject to certain conditions, prior to the transfer of the Santen Products NDAs and other marketing authorizations to
the Company, Santen continued to sell the Santen Products on the Company’s behalf and transfer the net profit from the sale of
the Santen Products to the Company. In October 2023, the Company completed the transfer of the U.S. NDAs and rights of the Santen Products.

    F-23

The assets acquired in the Santen Products Acquisition
are identifiable intangible asset groups in similar asset classes and all directly related to the product NDAs and marketing authorizations
acquired. The developed technology is within one major intangible asset class. No workforce/employees were included in the Santen Products
Acquisition and the Company is required to utilize its own business inputs/processes to transfer and commercialize the Santen Products.

The Company incurred $139,000 in costs associated
with the Santen Products Acquisition, the payment of $8,000,000 at closing and a near term milestone
of $500,000. The total purchase price of the Santen Products Acquisition was $8,639,000 and was accounted for as an asset acquisition.
At the time of the Santen Products Acquisition and as of December 31, 2023 and 2024, the remaining contingent consideration due was not
considered probable and reasonably estimable and therefore, no amount was included in the purchase price of the Santen Products Acquisition.
At the time the contingent consideration due becomes probable and reasonably estimable the additional consideration, if any, paid will
be allocated to all of the assets on a pro rata basis based on their initial estimated fair values as a percent of the total purchase
price.

Acquisition of ILEVRO, NEVANAC, VIGAMOX, MAXIDEX,
and TRIESENCE

In December 2022, the Company
entered into an Asset Purchase Agreement (the “NVS 5 APA”) with Novartis Technology, LLC and Novart