Full Press Release Details
Announces Fourth Quarter and Year-End 2023 Financial Results
| Revenues of $130.2 million, an increase of 47% over 2022 revenues of $88.6 million. | ||
| GAAP net loss of $(24.4 million) compared with $(14.1 million) for the prior-year period. | ||
| Adjusted EBITDA of $28.1 million, an increase of 116% over 2022 Adjusted EBITDA of $13.0 million. | ||
| Cash from operating activities of $3.8 million. | ||
| GAAP gross margin was 70% compared with 71% in the prior-year period. | ||
| Core gross margin was 77% compared with 73% in the prior-year period. | ||
| Cash and cash equivalents of $83 million, including investments in Eton Pharmaceuticals, as of December 31, 2023. |
Tenn., March 19, 2024 - Harrow (Nasdaq: HROW), a leading U.S. eyecare pharmaceutical company, announced results for the fourth
quarter and year ended December 31, 2023. The Company also posted its fourth quarter and year-end Letter to Stockholders and corporate
presentation to the "Investors" section of its website, harrow.com. The Company encourages all Harrow stockholders
to review these documents, which provide additional details concerning the historical quarterly period as well as the future expectations
past year, little Harrow grew up, transforming from a company focused exclusively on its market-leading ImprimisRx compounded business,
to a growing leader in the North American ophthalmic pharmaceuticals market - with a total 18 branded products," said Mark
L. Baum, CEO of Harrow. "In addition to the significant revenue and Adjusted EBIDTA growth the team delivered, we launched products
and began to generate cash from our Big Three products - IHEEZO, VEVYE and TRIESENCE. Finally, we also attracted experienced, well
connected, and highly motivated talent to join Harrow - setting the table beautifully for 2024 and for many years to come, when
we expect significant growth from IHEEZO, continued success with our VEVYE launch, and having TRIESENCE back in inventory and available,
potentially this year. In summary, supported by the tremendous progress we made in 2023, this year, too, is shaping up to be another
exciting year of growth. I am confident that we have the products, resources, and people to take full advantage of the opportunities
we see ahead of us today and for many years to come."
quarter and year-end 2023 figures of merit:
| For the Three Months Ended December 31, | For the Year Ended December 31, | |||||||||||||||
| 2023 | 2022 | 2023 | 2022 | |||||||||||||
| Net revenues | $ | 36,355,000 | $ | 20,329,000 | $ | 130,193,000 | $ | 88,595,000 | ||||||||
| Gross margin | 69 | % | 70 | % | 70 | % | 71 | % | ||||||||
| Core gross margin (1) | 75 | % | 71 | % | 77 | % | 73 | % | ||||||||
| Net (loss) income | (9,148,000 | ) | 1,055,000 | (24,411,000 | ) | (14,086,000 | ) | |||||||||
| Core net (loss) income (1) | (7,016,000 | ) | 2,103,000 | (11,512,000 | ) | (1,375,000 | ) | |||||||||
| Adjusted EBITDA (1) | 2,563,000 | 1,089,000 | 28,119,000 | 13,017,000 | ||||||||||||
| Basic and diluted net (loss) income per share | (0.26 | ) | 0.04 | (0.75 | ) | (0.51 | ) | |||||||||
| Core net (loss) income per share (1) : | ||||||||||||||||
| Basic | (0.20 | ) | 0.08 | (0.35 | ) | (0.05 | ) | |||||||||
| Diluted | (0.20 | ) | 0.07 | (0.35 | ) | (0.05 | ) |
Announces Fourth Quarter and Year-end 2023 Financial Results
Company's management team will host a conference call and live webcast tomorrow morning, Wednesday, March 20, 2024, at 8:00 a.m.
Eastern Time to discuss the fourth quarter and year-end 2023 results and provide a business update. To participate in the call, see details
| Conference Call Details: | ||
| Date: | Wednesday, March 20, 2024 | |
| Time: | 8:00 a.m. Eastern time | |
| Participant Dial-in: | 1-833-953-2434 (U.S.) 1-412-317-5763 (International) | |
| Replay Dial-in (Passcode 6766979): (telephonic replay through March 27, 2024) | 1-877-344-7529 (U.S.) 1-412-317-0088 (International) | |
| Webcast: (online replay through March 20, 2025) | harrow.com |
Inc. (Nasdaq: HROW) is a leading eyecare pharmaceutical company engaged in the discovery, development, and commercialization of innovative
ophthalmic pharmaceutical products for the North American market. Harrow helps eyecare professionals preserve the gift of sight by making
its comprehensive portfolio of prescription and non-prescription pharmaceutical products accessible and affordable to millions of patients
each year. For more information about Harrow, please visit harrow.com.
press release contains "forward-looking statements" within the meaning of the U.S. Private Securities Litigation Reform Act
of 1995. Any statements in this release that are not historical facts may be considered such "forward-looking statements."
Forward-looking statements are based on management's current expectations and are subject to risks and uncertainties which may cause
results to differ materially and adversely from the statements contained herein. Some of the potential risks and uncertainties that could
cause actual results to differ from those predicted include, among others, risks related to: liquidity or results of operations; our
ability to successfully implement our business plan, develop and commercialize our products, product candidates and proprietary formulations
in a timely manner or at all, identify and acquire additional products, manage our pharmacy operations, service our debt, obtain financing
necessary to operate our business, recruit and retain qualified personnel, manage any growth we may experience and successfully realize
the benefits of our previous acquisitions and any other acquisitions and collaborative arrangements we may pursue; competition from pharmaceutical
companies, outsourcing facilities and pharmacies; general economic and business conditions, including inflation and supply chain challenges;
regulatory and legal risks and uncertainties related to our pharmacy operations and the pharmacy and pharmaceutical business in general;
physician interest in and market acceptance of our current and any future formulations and compounding pharmacies generally. These and
additional risks and uncertainties are more fully described in Harrow's filings with the Securities and Exchange Commission, including
its Annual Report on Form 10-K and its Quarterly Reports on Form 10-Q. Such documents may be read free of charge on the SEC's web site
at sec.gov. Undue reliance should not be placed on forward-looking statements, which speak only as of the date they are made.
Except as required by law, Harrow undertakes no obligation to update any forward-looking statements to reflect new information, events,
or circumstances after the date they are made, or to reflect the occurrence of unanticipated events.
Webb, Director of Communications and Investor Relations
Announces Fourth Quarter and Year-end 2023 Financial Results
CONSOLIDATED BALANCE SHEETS
| December 31, 2023 | December 31, 2022 | |||||||
| (unaudited) | ||||||||
| ASSETS | ||||||||
| Cash and cash equivalents | $ | 74,085,000 | $ | 96,270,000 | ||||
| All other current assets | 65,397,000 | 21,990,000 | ||||||
| Total current assets | 139,482,000 | 118,260,000 | ||||||
| All other assets | 172,682,000 | 39,118,000 | ||||||
| TOTAL ASSETS | $ | 312,164,000 | $ | 157,378,000 | ||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
| Current liabilities | $ | 49,344,000 | $ | 18,632,000 | ||||
| Loans payable, net of unamortized debt discount | 183,172,000 | 104,174,000 | ||||||
| All other liabilities | 9,237,000 | 7,332,000 | ||||||
| TOTAL LIABILITIES | 241,753,000 | 130,138,000 | ||||||
| TOTAL STOCKHOLDERS' EQUITY | 70,411,000 | 27,240,000 | ||||||
| TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ | 312,164,000 | $ | 157,378,000 |
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
| For the Three Months Ended December 31, | For the Year Ended December 31, | |||||||||||||||
| 2023 | 2022 | 2023 | 2022 | |||||||||||||
| Net revenues | $ | 36,355,000 | $ | 20,329,000 | $ | 130,193,000 | $ | 88,595,000 | ||||||||
| Cost of sales | 11,302,000 | 6,165,000 | 39,640,000 | 25,383,000 | ||||||||||||
| Gross profit | 25,053,000 | 14,164,000 | 90,553,000 | 63,212,000 | ||||||||||||
| Selling, general and administrative | 26,212,000 | 15,239,000 | 83,090,000 | 58,243,000 | ||||||||||||
| Research and development | 3,336,000 | 703,000 | 6,652,000 | 3,050,000 | ||||||||||||
| Impairment of long-lived assets | 380,000 | - | 380,000 | - | ||||||||||||
| Total operating expenses | 29,928,000 | 15,942,000 | 90,122,000 | 61,293,000 | ||||||||||||
| (Loss) income from operations | (4,875,000 | ) | (1,778,000 | ) | 431,000 | 1,919,000 | ||||||||||
| Total other (expense) income, net | (4,808,000 | ) | 2,833,000 | (24,141,000 | ) | (15,930,000 | ) | |||||||||
| Income tax benefit (expense) | 535,000 | - | (701,000 | ) | (75,000 | ) | ||||||||||
| Net loss (income) attributable to Harrow, Inc. | $ | (9,148,000 | ) | $ | 1,055,000 | $ | (24,411,000 | ) | $ | (14,086,000 | ) | |||||
| Net loss (income) per share of common stock, basic and diluted | $ | (0.26 | ) | $ | 0.04 | $ | (0.75 | ) | $ | (0.51 | ) |
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
| For the Year Ended December 31, | ||||||||
| 2023 | 2022 | |||||||
| Net cash provided by (used in): | ||||||||
| Operating activities | $ | 3,840,000 | $ | 1,705,000 | ||||
| Investing activities | (152,553,000 | ) | (1,743,000 | ) | ||||
| Financing activities | 126,528,000 | 54,141,000 | ||||||
| Net change in cash and cash equivalents | (22,185,000 | ) | 54,103,000 | |||||
| Cash and cash equivalents at beginning of the period | 96,270,000 | 42,167,000 | ||||||
| Cash and cash equivalents at end of the period | $ | 74,085,000 | $ | 96,270,000 |
Announces Fourth Quarter and Year-end 2023 Financial Results
addition to the Company's results of operations determined in accordance with U.S. generally accepted accounting principles (GAAP),
which are presented and discussed above, management also utilizes Adjusted EBITDA and Core Results, unaudited financial measures that
are not calculated in accordance with GAAP, to evaluate the Company's financial results and performance and to plan and forecast
future periods. Adjusted EBITDA and Core Results are considered "non-GAAP" financial measures within the meaning of Regulation
G promulgated by the SEC. Management believes that these non-GAAP financial measures reflect an additional way of viewing aspects of
the Company's operations that, when viewed with GAAP results, provide a more complete understanding of the Company's results
of operations and the factors and trends affecting its business. Management believes Adjusted EBITDA and Core Results provide meaningful
supplemental information regarding the Company's performance because (i) they allow for greater transparency with respect to key
metrics used by management in its financial and operational decision-making; (ii) they exclude the impact of non-cash or, when specified,
non-recurring items that are not directly attributable to the Company's core operating performance and that may obscure trends
in the Company's core operating performance; and (iii) they are used by institutional investors and the analyst community to help
analyze the Company's results. However, Adjusted EBITDA, Core Results, and any other non-GAAP financial measures should be considered
as a supplement to, and not as a substitute for, or superior to, the corresponding measures calculated in accordance with GAAP. Further,
non-GAAP financial measures used by the Company and the way they are calculated may differ from the non-GAAP financial measures or the
calculations of the same non-GAAP financial measures used by other companies, including the Company's competitors.
Company defines Adjusted EBITDA as net loss, excluding the effects of stock-based compensation and expenses, impairment of intangible
assets, interest, taxes, depreciation, amortization, investment (income) loss, net, and, if any and when specified, other non-recurring
income or expense items. Management believes that the most directly comparable GAAP financial measure to Adjusted EBITDA is net loss.
Adjusted EBITDA has limitations and should not be considered as an alternative to gross profit or net loss as a measure of operating
performance or to net cash provided by (used in) operating, investing, or financing activities as a measure of ability to meet cash needs.
following is a reconciliation of Adjusted EBITDA, a non-GAAP measure, to the most comparable GAAP measure, net loss, for the three months
and year ended December 31, 2023, and for the same periods in 2022:
OF NET LOSS TO ADJUSTED EBITDA
| For the Three Months Ended December 31, | For the Year Ended December 31, | |||||||||||||||
| 2023 | 2022 | 2023 | 2022 | |||||||||||||
| GAAP net (loss) income | $ | (9,148,000 | ) | $ | 1,055,000 | $ | (24,411,000 | ) | $ | (14,086,000 | ) | |||||
| Stock-based compensation and expenses | 4,175,000 | 2,033,000 | 15,696,000 | 7,974,000 | ||||||||||||
| Impairment of intangible assets | 380,000 | - | 380,000 | - | ||||||||||||
| Interest expense, net | 5,124,000 | 1,858,000 | 21,324,000 | 7,244,000 | ||||||||||||
| Income tax (benefit) expense | (535,000 | ) | - | 701,000 | 75,000 | |||||||||||
| Depreciation | 435,000 | 387,000 | 1,530,000 | 1,477,000 | ||||||||||||
| Amortization of intangible assets | 2,448,000 | 378,000 | 10,082,000 | 1,578,000 | ||||||||||||
| Investment (income) loss, net | (416,000 | ) | 670,000 | (3,092,000 | ) | 14,047,000 | ||||||||||
| Loss on disposal of equipment | 146,000 | 69,000 | 168,000 | 69,000 | ||||||||||||
| Gain on sale of non-ophthalmology assets | - | (5,259,000 | ) | - | (5,259,000 | ) | ||||||||||
| Other expense (income), net | (46,000 | ) | (102,000 | ) | 5,741,000 (1) | (102,000 | ) | |||||||||
| Adjusted EBITDA | $ | 2,563,000 | $ | 1,089,000 | $ | 28,119,000 | $ | 13,017,000 |
Announces Fourth Quarter and Year-end 2023 Financial Results
Core Results, including core gross margin, core net (loss) income, and core basic and diluted loss per share exclude (1) all amortization
and impairment charges of intangible assets, excluding software development costs, (2) net gains and losses on investments and equity
securities, including equity method gains and losses and equity valued at fair value through profit and loss ("FVPL"), and
preferred stock dividends, and (3) gains/losses on forgiveness of debt. In other periods, Core Results may also exclude fair value adjustments
of financial assets in the form of options to acquire a company carried at FVPL, obligations related to product recalls, certain acquisition-related
items, restructuring charges/releases and associated items, related legal items, gains/losses on early extinguishment of debt or debt
modifications, impairments of property, plant and equipment and software, as well as income and expense items that management deems exceptional
and that are or are expected to accumulate within the year to be over a $100,000 threshold.
following is a reconciliation of Core Results, non-GAAP measures, to the most comparable GAAP measures for the three months and year
ended December 31, 2023, and for the same periods in 2022:
| For the Three Months Ended December 31, 2023 | ||||||||||||||||||||
| GAAP Results | Amortization of Certain Intangible Assets | Investment Gains | Other Items | Core Results | ||||||||||||||||
| Gross profit | $ | 25,053,000 | $ | 2,140,000 | $ | - | $ | - | $ | 27,193,000 | ||||||||||
| Gross margin | 69 | % | 75 | % | ||||||||||||||||
| Operating (loss) income | (4,875,000 | ) | 2,448,000 | - | - | (2,427,000 | ) | |||||||||||||
| (Loss) income before taxes | (9,683,000 | ) | 2,448,000 | (416,000 | ) | 100,000 | (7,551,000 | ) | ||||||||||||
| Tax benefit | 535,000 | - | - | - | 535,000 | |||||||||||||||
| Net (loss) income | (9,148,000 | ) | 2,448,000 | (416,000 | ) | 100,000 | (7,016,000 | ) | ||||||||||||
| Basic and diluted loss per share ($) (1) | (0.26 | ) | (0.20 | ) | ||||||||||||||||
| Weighted average number of shares of common stock outstanding, basic and diluted | 35,353,848 | 35,353,848 |
| For the Year Ended December 31, 2023 | ||||||||||||||||||||
| GAAP Results | Amortization of Certain Intangible Assets | Investment Gains | Other Items | Core Results | ||||||||||||||||
| Gross profit | $ | 90,553,000 | $ | 9,314,000 | $ | - | $ | - | $ | 99,867,000 | ||||||||||
| Gross margin | 70 | % | 77 | % | ||||||||||||||||
| Operating income | 431,000 | 10,082,000 | - | - | 10,513,000 | |||||||||||||||
| (Loss) income before taxes | (23,710,000 | ) | 10,082,000 | (3,092,000 | ) | 5,909,000 | (12,899,000 | ) | ||||||||||||
| Tax expense | (701,000 | ) | - | - | - | (701,000 | ) | |||||||||||||
| Net (loss) income | (24,411,000 | ) | 10,082,000 | (3,092,000 | ) | 5,909,000 | (11,512,000 | ) | ||||||||||||
| Basic and diluted loss per share ($) (1) | (0.75 | ) | (0.35 | ) | ||||||||||||||||
| Weighted average number of shares of common stock outstanding, basic and diluted | 32,616,777 | 32,616,777 |
Announces Fourth Quarter and Year-end 2023 Financial Results
| For the Three Months Ended December 31, 2022 | ||||||||||||||||
| GAAP Results | Amortization of Certain Intangible Assets | Investment Losses | Core Results | |||||||||||||
| Gross profit | $ | 14,164,000 | $ | 341,000 | $ | - | $ | 14,505,000 | ||||||||
| Gross margin | 70 | % | 71 | % | ||||||||||||
| Operating (loss) income | (1,778,000 | ) | 378,000 | - | (1,400,000 | ) | ||||||||||
| Income before taxes | 1,055,000 | 378,000 | 670,000 | 2,103,000 | ||||||||||||
| Tax expense | - | - | - | - | ||||||||||||
| Net income | 1,055,000 | 378,000 | 670,000 | 2,103,000 | ||||||||||||
| Income per share ($) (1) : | ||||||||||||||||
| Basic | 0.04 | 0.08 | ||||||||||||||
| Diluted | 0.04 | 0.07 | ||||||||||||||
| Weighted average number of shares of common stock outstanding: | ||||||||||||||||
| Basic | 27,958,392 | 27,958,392 | ||||||||||||||
| Diluted | 29,426,567 | 29,426,567 |
| For the Year Ended December 31, 2022 | ||||||||||||||||
| GAAP Results | Amortization of Certain Intangible Assets | Investment Losses | Core Results | |||||||||||||
| Gross profit | $ | 63,212,000 | $ | 1,364,000 | $ | - | $ | 64,576,000 | ||||||||
| Gross margin | 71 | % | 73 | % | ||||||||||||
| Operating income | 1,919,000 | 1,578,000 | - | 3,497,000 | ||||||||||||
| (Loss) Income before taxes | (14,011,000 | ) | 1,578,000 | 11,133,000, | (1,300,000 | ) | ||||||||||
| Tax expense | (75,000 | ) | - | - | (75,000 | ) | ||||||||||
| Net (loss) income | (14,086,000 | ) | 1,578,000 | 11,133,000 | (1,375,000 | ) | ||||||||||
| Basic and diluted (loss) per share ($) (1) | (0.51 | ) | (0.05 | ) | ||||||||||||
| Weighted average number of shares of common stock outstanding, basic and diluted | 27,460,968 | 27,460,968 |