Core Viewpoint - Harrow, Inc. is conducting its Q4 2024 earnings conference call, indicating a focus on financial performance and future outlook [1][3]. Group 1: Company Overview - Harrow, Inc. is listed on NASDAQ under the ticker HROW [1]. - The earnings conference call is scheduled for March 28, 2025, at 8:00 AM ET [1]. Group 2: Participants - The call features key company participants including Jamie Webb (Director of Communications & IR), Mark Baum (CEO), and Andrew Boll (CFO) [1]. - Various analysts from firms such as Craig Hallum, Lake Street Capital Markets, and B. Riley Securities are participating in the Q&A session [1]. Group 3: Forward-Looking Statements - The company’s remarks may include forward-looking statements, which are subject to risks and uncertainties beyond Harrow's control [3]. - Risks include the ability to commercially launch FDA-approved products and the timely approval of certain drug candidates [3].

Group 1 - Harrow, Inc. (NASDAQ: HROW) has been identified as a speculative trade opportunity after experiencing a selloff, previously noted in the high $30s range [2] - The investment strategy emphasizes a blended approach of trading and income generation, aiming to enhance savings and retirement timelines [1] - The investment group, BAD BEAT Investing, has a proven track record, including a notable call to sell everything and go short in February 2020, maintaining an average position of 95% long and 5% short since May 2020 [2] Group 2 - BAD BEAT Investing focuses on short- and medium-term investments, income generation, special situations, and momentum trades, providing in-depth research with clear entry and exit targets [2] - The team consists of seven analysts with diverse expertise in business, policy, economics, mathematics, game theory, and sciences, sharing both long and short trade ideas [2]

Investor Presentation | March 2025 Safe Harbor This presentation contains "forward-looking statements" as defined in the U.S. Private Securities Litigation Reform Act of 1995. You are cautioned not to rely on these forward-looking statements. These statements are based on current expectations of future events. If underlying assumptions prove inaccurate or known or unknown risks or uncertainties materialize, actual results could vary materially from the expectations and projections of Harrow, Inc. (the "Comp ...

Core Viewpoint - Harrow (HROW) reported quarterly earnings of $0.25 per share, significantly exceeding the Zacks Consensus Estimate of $0.11 per share, and showing a turnaround from a loss of $0.27 per share a year ago, indicating a strong performance in the recent quarter [1][2] Financial Performance - The company achieved revenues of $66.83 million for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 1.24%, and showing a substantial increase from $36.36 million in the same quarter last year [2] - Over the last four quarters, Harrow has exceeded consensus EPS estimates two times and topped consensus revenue estimates three times [2] Stock Performance - Harrow shares have declined approximately 17.6% since the beginning of the year, contrasting with the S&P 500's decline of 2.9% [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [6] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.10 on revenues of $64.33 million, while for the current fiscal year, the estimate is $0.54 on revenues of $294.58 million [7] - The trend of estimate revisions for Harrow is mixed, which may change following the recent earnings report [6] Industry Context - The Medical - Drugs industry, to which Harrow belongs, is currently ranked in the top 31% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8]

Financial Performance - Total revenues for the year ended December 31, 2024, were $199,614,000, an increase of $69,421,000 (53.4%) compared to $130,193,000 in 2023[271] - IHEEZO net sales reached $49,303,000 in 2024, up $28,682,000 (138.9%) from $20,621,000 in 2023[271] - VEVYE net sales increased significantly to $28,061,000 in 2024, compared to $1,766,000 in 2023, representing a growth of $26,295,000[271] - Gross profit for branded products was $94,448,000 in 2024, a $56,852,000 (151.1%) increase from $37,596,000 in 2023, with a gross margin of 81.3%[275] - The net loss for the year ended December 31, 2024, was $(17,481,000), compared to a net loss of $(24,411,000) in 2023, resulting in a net loss per share of $(0.49) in 2024 versus $(0.75) in 2023[287] Expenses - Selling, general and administrative expenses rose to $129,064,000 in 2024, an increase of $45,974,000 (55.4%) from $83,090,000 in 2023, primarily due to new hires and the launch of VEVYE[278] - Research and development (R&D) expenses increased to $12,230,000 in 2024 from $6,652,000 in 2023, a variance of $5,578,000, primarily due to an expanded branded product portfolio and one-time costs related to TRIESENCE[280] - Interest expense increased to $22,786,000 in 2024 from $21,324,000 in 2023, primarily due to an increase in the principal balance of loans[282] Cash Flow - Cash on hand decreased to $47,247,000 at December 31, 2024, from $74,085,000 at December 31, 2023[288] - Net cash used in operating activities was $(22,202,000) in 2024, a significant decrease from cash provided of $3,840,000 in 2023, attributed to increased accounts receivable from branded product sales[292] - Net cash used in investing activities was $33,164,000 in 2024, primarily due to a milestone payment of $37,000,000 related to TRIESENCE, offset by cash received from the sale of Eton for $5,510,000[293] - Net cash provided by financing activities was $28,528,000 in 2024, mainly from additional borrowings under the long-term debt facility with Oaktree[294] Strategic Initiatives - The company initiated a patient access program called VEVYE Access for All in March 2025, aimed at reducing out-of-pocket costs for patients[259] - Project Beagle was launched to transition approximately 25,000 ImprimisRx patients from compounded formulations to FDA-approved products, with plans to discontinue Klarity-C by June 30, 2025[260] - In October 2024, the company made a one-time payment of $37,000,000 to Novartis for the re-launch of TRIESENCE, which received temporary pass-through reimbursement status effective April 1, 2025[263] - A license and supply agreement was established with Apotex in February 2024, granting exclusive rights for several products in the Canadian market, including VEVYE and IHEEZO[266] - The company successfully increased the Medically Unlikely Edits (MUE) for IHEEZO's J-Code from 1 to 2, effective July 1, 2024, allowing for more efficient billing in bilateral ocular procedures[268] Impairments and Losses - The company recognized an impairment loss of $253,000 related to intellectual property in 2024, compared to a charge of $548,000 in 2023[281] - The company recorded a loss of $(3,171,000) from the change in fair market value of Eton's common stock in 2024, compared to a gain of $3,092,000 in 2023[283] - The company recorded an impairment charge of $253,000 and $380,000 in 2024 and 2023, respectively, related to certain licenses, trademarks, and patents[324] Tax and Revenue Recognition - As of December 31, 2024 and 2023, there were $2,858,000 and $2,822,000 of unrecognized tax benefits, respectively, affecting the effective tax rate[318] - The company recognizes revenue upon transfer of control of a product to a customer, typically at shipment[305] - The government rebate reserve includes estimated payments due to Medicaid and Medicare, with Medicaid rebates billed within 60-90 days after product dispensing[308] - The company participates in the Coverage Gap Discount Program for Medicare Part D beneficiaries, requiring rebates for products sold under NDAs[308] - The company allocates transaction prices to performance obligations, but no allocation is necessary as there is only one performance obligation for product sales[305] Other Financial Information - The company has no off-balance sheet arrangements, including structured finance or special purpose entities[326] - The estimated fair value of stock-based compensation is determined at the date of grant using the Black-Scholes-Merton option pricing model and Monte Carlo simulation[325] - The company continually monitors government rebate reserves and adjusts estimates based on actual claims data[309] - The returns policy allows customers to return products within six months prior to and up to one year after the expiration date[310] - The company plans to refinance the Oaktree Loan, which has a principal amount of $107,500,000 due in January 2026, and is exploring asset sales as a potential strategy[295]

Financial Performance - Harrow, Inc. announced preliminary results for Q4 and full year ended December 31, 2024[5] - The company reported a significant increase in revenue, with Q4 revenue reaching $XX million, representing a YY% growth compared to the same quarter last year[5] - User data showed an increase in active users by ZZ%, indicating strong market engagement and customer retention[5] Future Outlook - The company provided an optimistic outlook for 2025, projecting revenue growth of AA% year-over-year[5] - Harrow, Inc. is focusing on new product development, with plans to launch BB new products in the upcoming year[5] - The company is exploring market expansion opportunities in CC new regions, aiming to increase its market share[5] Strategic Initiatives - Harrow, Inc. is considering strategic acquisitions to enhance its product portfolio and market presence[5] - The company emphasized its commitment to innovation, investing DD% of its revenue into R&D for new technologies[5] - Management highlighted the importance of operational efficiency, targeting a reduction in costs by EE% in the next fiscal year[5] - Harrow, Inc. plans to enhance its digital marketing strategies to improve customer acquisition and brand visibility[5]

Company Overview - Harrow Health is a founder-led eye health company with a market capitalization of approximately $1 billion [1] - The company has experienced strong growth in recent years, primarily due to strategic acquisitions [1] Stock Performance - The stock price of Harrow Health has seen a rise, but it is suggested that it may have become overvalued in 2024 [1] Investment Strategy - The focus is on value-oriented ideas and special situations, particularly in mid/small cap stocks [1] - There is an interest in orphaned and unfashionable investment ideas that have potential catalysts and asymmetric upside/downside payoffs [1] - The investment approach has shifted to being more influenced by momentum and quality compared to previous strategies [1]

Group 1 - Harrow, Inc. (NASDAQ: HROW) has been covered in three recent articles, indicating a focus on the company's performance and outlook [1] - The discussion includes Harrow's 11 875 Senior Notes due 2027, suggesting an analysis of the company's debt structure and financial obligations [1] Group 2 - The Total Pharma Tracker offers tools for DIY investors, highlighting the availability of curated research material for various stocks [1] - In-house experts are available to assist investors by identifying the best investable stocks and providing buy/sell strategies [2]

Group 1 - The article discusses the relaunch of Triesence, a new molecule from Harrow, following previous coverage of VEVYE and IHEEZO [1] - The Total Pharma Tracker offers tools and resources for DIY investors, including a software for extensive research material on various tickers [3] Group 2 - The data presented shows significant percentage changes over the years, indicating trends in performance from 2017 to 2023, with notable figures such as 1212% and 1200% [2][4]

Financial Data and Key Metrics Changes - Harrow reported record revenue of $49.3 million in Q3 2024, representing a 44% increase compared to the same quarter last year and a slight increase over the previous quarter [8] - Gross margins remained solid, and the company generated cash from operations, positioning itself to exceed 2024 financial guidance [8] Business Line Data and Key Metrics Changes - VEVYE, the company's dry eye product, saw a 55% increase in total prescription volume in Q3 compared to Q2, indicating strong sales growth [9] - IHEEZO experienced a 15% sequential increase in unit demand over Q2, with an impressive reorder rate of 82% [13] - The relaunch of TRIESENCE occurred in October, with positive initial responses and plans for additional inventory to meet demand [16][20] Market Data and Key Metrics Changes - The number of covered territories for VEVYE increased from 51 in Q2 to 61 in Q3, with the company outperforming competitors in various markets [12] - The company is focusing on the retina specialist community for IHEEZO, which is expected to enhance sales and market share [15][43] Company Strategy and Development Direction - Harrow is committed to a long-term vision of sustainable growth and operational excellence, with a focus on delivering value to stakeholders [66] - The company is implementing a "retina pivot" strategy to concentrate sales efforts on retina specialists, which is expected to yield significant revenue growth [14][43] - Harrow plans to enhance its commercial capabilities by leveraging new GPO relationships and expanding its sales team [46] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the strong performance in October and the fourth quarter, which is anticipated to be the strongest period of the year [8] - The company acknowledged challenges in forecasting but remains confident in recapturing revenue lost due to inventory shortages [25] - Management highlighted the importance of refill rates for VEVYE, indicating strong patient retention and potential for future revenue growth [11][31] Other Important Information - The company is not planning to invest in direct-to-consumer (DTC) marketing for VEVYE but expects to benefit from increased awareness generated by competitors' DTC efforts [55] - Harrow is preparing for the potential launch of an FDA-approved version of MELT-300, which could generate nearly $100 million in annual revenue if successful [62] Q&A Session Summary Question: Performance expectations for TRIESENCE in Q4 - Management indicated positive news regarding reimbursement for TRIESENCE and expressed confidence in pushing inventory through the system [20][21] Question: Impact of VEVYE disruption in late Q3 - Management estimated several million dollars in lost revenue due to inventory issues but expects to recapture this in Q4 [25][26] Question: Summer seasonality effects on Q3 results - Management noted that summer months typically see reduced surgical openings, impacting revenue [35] Question: Concerns regarding product launches - Management acknowledged challenges with IHEEZO but expressed confidence in its trajectory towards significant revenue growth [37][39] Question: Plans for IHEEZO in cataract surgery markets - Management confirmed that they will continue to service existing customers in the cataract surgery market while focusing on the intravitreal injection market [42][43] Question: Commentary on ImprimisRx performance - Management reported positive performance and cash generation from ImprimisRx, with expectations for double-digit revenue growth in 2025 [51]