Company: HROW
Filing Date: 2025-03-27
Form Type: 10-K
Source: 0001641172-25-000925
Chunk: 665

Company: HARROW, INC.
Filing Date: 2025-03-27
Form: 10-K
Item: Item 3
Chunk 665
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 fees and other rebates and co-pay assistance as a critical audit matter given the significant judgment required
by management in determining assumptions such as inventory levels in the distribution channel and estimated patient usage. In addition,
estimating the product sales deductions for government rebates requires significant judgment related to the estimates of outstanding
and expected future claims for end customer sales. Auditing these assumptions required a high degree of auditor judgment and subjectivity
and extensive audit effort.

How
the Critical Audit Matter Was Addressed in the Audit

Auditing
the assumptions used in determining the product sales deductions included testing the design and operating effectiveness of management’s
controls over the product sales deductions, including controls over the relevance and reliability of external data, the assumptions used
to estimate these sales deductions, and management’s retrospective review of the estimates. Our procedures also included testing
management’s estimation process for determining accruals for these sales deductions, including evaluating the significant assumptions
by comparing the estimated accrual rates used in management’s analysis to inventory in the distribution channel and estimated sales
to end customers utilizing external third-party data and actual claims received. We assessed the relevance and reliability of the external
data used in management’s analysis and verified the mathematical accuracy of the calculations used in management’s analysis.
We evaluated management’s ability to accurately estimate the sales deduction accruals by retrospectively comparing historically
recorded accruals to the actual claims amounts. In addition, we assessed subsequent events to determine whether there was any new information
that would require adjustment to the accruals.

/s/
Crowe LLP

We
have served as the Company’s auditor since 2024.

Costa
Mesa, California

March
27, 2025

F-3

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING
FIRM

To
the Board of Directors and Stockholders
Harrow, Inc.

Opinion
on the Consolidated Financial Statements

We
have audited the accompanying consolidated balance sheet of Harrow, Inc. (the “Company”) as of December
31, 2023, the related consolidated statements of operations, stockholders’ equity, and cash flows for the year ended December 31,
2023, and the related notes (collectively referred to as the “consolidated financial statements”). In our opinion, the consolidated
financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2023, and the
results of its operations and its cash flows for the year