Harrow Health(HROW) - 2024 Q3 - Quarterly Report

Revenue Performance - Total revenues for the three months ended September 30, 2024, were $49,257,000, an increase of$14,992,000 (43.7%) compared to $34,265,000 for the same period in 2023[147]. - IHEEZO generated revenues of$12,882,000 for the three months ended September 30, 2024, up $6,955,000 (117.4$5,927,000 in the same period of 2023[147]. - VEVYE, launched in January 2024, generated $5,186,000 in revenues for the three months ended September 30, 2024[147]. - Branded revenue, net, increased to$28,552,000 for the three months ended September 30, 2024, compared to $14,496,000 for the same period in 2023, reflecting a growth of$14,056,000 (97%) [147]. - ImprimisRx revenue, net, was $20,705,000 for the three months ended September 30, 2024, compared to$19,769,000 for the same period in 2023, reflecting an increase of $936,000 (4.7$5,169,000 for the three months ended September 30, 2024, an increase of $3,335,000 (182.5$23,383,000, up from $11,161,000 in 2023, representing a variance of$12,222,000[152]. - Branded gross margin increased to 81.9% for the three months ended September 30, 2024, compared to 77.0% in 2023, a rise of 4.9%[152]. - ImprimisRx gross profit for the three months ended September 30, 2024, was $13,856,000, an increase of$819,000 from $13,037,000 in 2023[153]. Expenses - Research and development expenses for the nine months ended September 30, 2024, were$7,475,000, up $4,159,000 from$3,316,000 in 2023[156]. - Selling, general and administrative expenses for the three months ended September 30, 2024, were $33,645,000, an increase of$12,612,000 from $21,033,000 in 2023[154]. - Interest expense, net for the three months ended September 30, 2024, was$5,525,000, a decrease from $5,749,000 in the same period in 2023[157]. Cash Flow and Financial Position - Net cash used in operating activities during the nine months ended September 30, 2024, was$(4,423,000), a decrease from $(4,856,000) in 2023[165]. - Cash and cash equivalents at the end of the period on September 30, 2024, were$72,601,000, compared to $74,085,000 at December 31, 2023[162]. - The company recorded a loss of$3,171,000 related to the change in fair market value of Eton's common stock during the nine months ended September 30, 2024[158]. - The company expects to use its current cash position and funds generated from operations to pursue business plans, including potential acquisitions[163]. Corporate Actions and Agreements - The company made a one-time payment of $37,000,000 to Novartis in October 2024 as part of the TRIESENCE re-launch[139]. - The company drew down a total principal loan amount of$107,500,000 under the Oaktree Loan, with no additional principal loan amount remaining available[141]. - A license and supply agreement was entered into with Apotex in February 2024, granting exclusive rights for several ophthalmic products in the Canadian market[142]. - The MUE for IHEEZO's J-Code was increased from 1 to 2, effective July 1, 2024, allowing for more flexible billing in physician offices[144]. Internal Controls and Compliance - The principal executive officer and principal financial officer concluded that the disclosure controls and procedures were effective as of September 30, 2024[173]. - There were no changes in internal control over financial reporting during the quarter ended September 30, 2024, that materially affected the internal control[174]. - The company maintains disclosure controls designed to ensure timely reporting of required information under the Securities Exchange Act[172].