Company: HROW
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0001641172-25-009263
Chunk: 13

Company: HARROW, INC.
Filing Date: 2025-05-08
Form: 10-Q
Item: Item 1
Chunk 13
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 the various topics should be applied prospectively, and the effective
date for the Company for each amendment will be determined based on the effective date of the SEC’s removal of the related disclosure
from Regulation S-X or Regulation S-K. If the SEC has not removed the applicable requirement by June 30, 2027, then the related amendment
in ASU 2023-06 will be removed from the codification and will not become effective. Early adoption of this ASU is prohibited. The Company
does not expect the amendments in this ASU to have a material impact on the disclosures or presentation in its consolidated financial
statements.

In December 2023, FASB issued ASU 2023-09, Income
Taxes (Topic 740) - Improvements to Income Tax Disclosures, which enhances the disclosures required for income taxes in the Company’s
annual consolidated financial statements. Notably, this ASU requires entities to disclose specific categories in the effective tax rate
reconciliation and provide additional information for reconciling items that meet a quantitative threshold. ASU 2023-09 is effective for
the Company in its annual reporting for fiscal year 2025 on a prospective basis. Early adoption and retrospective reporting are permitted.
The Company is currently evaluating the impact of ASU 2023-09 on its consolidated financial statements.

In November 2024, the FASB issued ASU 2024-03,
Income Statement – Reporting Comprehensive Income – Expense Disaggregation Disclosures, to improve the disclosures
by a public business entity about the types of expenses in commonly presented expense captions. This ASU is effective for annual reporting
periods beginning after December 15, 2026, and interim reporting periods beginning after December 15, 2027, with early adoption permitted.
The Company is currently evaluating the impact of ASU 2024-03 on its consolidated financial statements.

NOTE 3. REVENUES

The Company accounts
for contracts with customers in accordance with ASC 606, Revenues from Contracts with Customers. The Company has two primary
streams of revenue: (1) product revenues, including revenue recognized from sales of products through its pharmacy and outsourcing facility
and sales of branded products to wholesalers through a third-party logistics (“3PL”) partner, and (2) revenue recognized from
intellectual property licenses and related arrangements.

Product Revenues

The Company sells prescription
medications directly through its pharmacy, outsourcing facility and 3PL partner. Revenue from