Full Press Release Details
Announces Fourth-Quarter and Year-End 2024 Audited Financial Results
Full-Year 2024, and Recent Highlights:
| Record revenues of $66.8 million for Q4 2024, an 84% increase over Q4 2023 | ||
| Revenues of $199.6 million for FY 2024, a 53% increase over FY 2023 | ||
| GAAP net income of $6.8 million for Q4 2024, for a GAAP net loss of $(17.5) million for FY 2024 | ||
| Adjusted EBITDA of $22.5 million for Q4 2024, leading to Adjusted EBITDA of $40.3 million for FY 2024 | ||
| IHEEZO unit demand and VEVYE prescriptions for Q4 2024 each increased over 40% over Q3 2024 | ||
| VEVYE Access for All program expected to drive continued market share expansion in 2025 | ||
| TRIESENCE transitional pass-through approved, significantly increasing addressable market opportunity |
Tenn., March 27, 2025 - Harrow (Nasdaq: HROW), a leading North American eyecare pharmaceutical company, announced results for the
fourth quarter and year ended December 31, 2024. The Company also posted its fourth quarter 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 and future expectations for the
stellar fourth-quarter performance, including an 84% year-over-year increase in revenues to a record $66.8 million, marked the end
of a monumental year for Harrow, with 2024 revenues rising 53% over 2023 to $199.6 million," said Mark L. Baum, Chief
Executive Officer of Harrow. "This strong finish, driven by over 40% quarter-over-quarter growth in both IHEEZO unit demand and
VEVYE prescriptions, showcases market uptake for our expanding portfolio and the overall success of the Harrow team. We expect our momentum
to continue in 2025, particularly in the second half, as the recently announced VEVYE Access for All program gains traction
- accelerating market share capture, expanding commercially covered prescriptions, and bolstering prescriber confidence by ensuring
their patients can affordably start treatment with VEVYE, regardless of insurance status. Meanwhile, in addition to our success in stabilizing
the supply chain for TRIESENCE, the Centers for Medicare & Medicaid Services recently approved our transitional pass-through application,
significantly increasing its addressable market. This terrific news should add fuel to our commercial efforts concurrent with our development
of a next-generation version of this high-value and high-trust product. Because we remain at the initial stages of market penetration
for our core products, we expect revenue growth in these cornerstone products for years to come."
added, "We continue to review new ways to better serve our customers and leverage our commercial infrastructure by adding attractive
low-risk, high-return products. This includes product candidates we have been quietly nurturing internally, which we expect to discuss
in more detail later this year; those being brought to us by third parties; and those in which we already have a stake, such as the MELT-300
program. Finally, Harrow stockholders should know that while we expect normal seasonal revenue fluctuations, we are confident in the
remainder of 2025, as demonstrated by our 2025 revenue guidance of more than $280 million,' representing an increase over
2024 revenue of more than 40% in annual revenues."
and year-end 2024 figures of merit:
| For the Three Months Ended December 31, | For the Year Ended December 31, | |||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| Total revenues | $ | 66,831,000 | $ | 36,355,000 | $ | 199,614,000 | $ | 130,193,000 | ||||||||
| Gross margin | 79 | % | 69 | % | 75 | % | 70 | % | ||||||||
| Core gross margin (1) | 84 | % | 75 | % | 80 | % | 77 | % | ||||||||
| Net income (loss) | 6,777,000 | (9,148,000 | ) | (17,481,000 | ) | (24,411,000 | ) | |||||||||
| Core net income (loss) (1) | 11,366,000 | (7,016,000 | ) | (2,089,000 | ) | (11,512,000 | ) | |||||||||
| Adjusted EBITDA (1) | 22,489,000 | 2,563,000 | 40,327,000 | 28,119,000 | ||||||||||||
| Net income (loss) per share: | ||||||||||||||||
| Basic | 0.19 | (0.26 | ) | (0.49 | ) | (0.75 | ) | |||||||||
| Diluted | 0.24 | (0.26 | ) | (0.49 | ) | (0.75 | ) | |||||||||
| Core net income (loss) per share: (1) | ||||||||||||||||
| Basic | 0.32 | (0.20 | ) | (0.06 | ) | (0.35 | ) | |||||||||
| Diluted | 0.40 | (0.20 | ) | (0.06 | ) | (0.35 | ) |
Announces Fourth-Quarter and Year-End 2024 Financial Results
Company's management team will host a conference call and live webcast tomorrow morning, Friday, March 28, 2025, at 8:00 a.m.
Eastern time to discuss the fourth-quarter and year-end 2024 results and provide a business update. Participants can access the live
conference call via webcast on the "Investors" page of Harrow's website. To participate via telephone, please register
in advance using this link. Upon registration, all telephone participants will receive a confirmation email with detailed instructions,
including a unique dial-in number and PIN, for accessing the call. A replay of the conference call webcast will be archived on the Company's
website for one year.
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 portfolio of 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,
including the ongoing communications with the U.S. Food and Drug Administration relating to compliance and quality plans at our outsourcing
facility in New Jersey; 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 (SEC), including its Annual Report on Form 10-K for the year ended December 31, 2023, subsequent Quarterly Reports on Form
10-Q, and other filings with the SEC. 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 2024 Financial Results
CONDENSED CONSOLIDATED BALANCE SHEETS
| December 31, 2024 | December 31, 2023 | |||||||
| (unaudited) | ||||||||
| ASSETS | ||||||||
| Cash and cash equivalents | $ | 47,247,000 | $ | 74,085,000 | ||||
| All other current assets | 142,404,000 | 65,397,000 | ||||||
| Total current assets | 189,651,000 | 139,482,000 | ||||||
| All other assets | 199,320,000 | 172,682,000 | ||||||
| TOTAL ASSETS | $ | 388,971,000 | $ | 312,164,000 | ||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
| Current liabilities | $ | 91,343,000 | $ | 49,344,000 | ||||
| Loans payable, net of unamortized debt discount | 219,539,000 | 185,885,000 | ||||||
| All other liabilities | 8,792,000 | 6,524,000 | ||||||
| TOTAL LIABILITIES | 319,674,000 | 241,753,000 | ||||||
| TOTAL STOCKHOLDERS' EQUITY | 69,297,000 | 70,411,000 | ||||||
| TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ | 388,971,000 | $ | 312,164,000 |
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
| For the Three Months Ended December 31, | For the Year Ended December 31, | |||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| Total revenues | $ | 66,831,000 | $ | 36,355,000 | $ | 199,614,000 | $ | 130,193,000 | ||||||||
| Cost of sales | 14,135,000 | 11,302,000 | 49,245,000 | 39,640,000 | ||||||||||||
| Gross profit | 52,696,000 | 25,053,000 | 150,369,000 | 90,553,000 | ||||||||||||
| Selling, general and administrative | 34,789,000 | 26,212,000 | 129,064,000 | 83,090,000 | ||||||||||||
| Research and development | 4,755,000 | 3,336,000 | 12,230,000 | 6,652,000 | ||||||||||||
| Impairment of long-lived assets | 253,000 | 380,000 | 253,000 | 380,000 | ||||||||||||
| Total operating expenses | 39,797,000 | 29,928,000 | 141,547,000 | 90,122,000 | ||||||||||||
| Income (loss) from operations | 12,899,000 | (4,875,000 | ) | 8,822,000 | 431,000 | |||||||||||
| Total other expense, net | (6,636,000 | ) | (4,808,000 | ) | (26,142,000 | ) | (24,141,000 | ) | ||||||||
| Income tax benefit (expense) | 514,000 | 535,000 | (161,000 | ) | (701,000 | ) | ||||||||||
| Net income (loss) attributable to Harrow, Inc. | $ | 6,777,000 | $ | (9,148,000 | ) | $ | (17,481,000 | ) | $ | (24,411,000 | ) | |||||
| Net income (loss) per share: | ||||||||||||||||
| Basic | $ | 0.19 | $ | (0.26 | ) | $ | (0.49 | ) | $ | (0.75 | ) | |||||
| Diluted | $ | 0.24 | $ | (0.26 | ) | $ | (0.49 | ) | $ | (0.75 | ) |
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
| For the Year Ended December 31, | ||||||||
| 2024 | 2023 | |||||||
| Net cash (used in) provided by: | ||||||||
| Operating activities | $ | (22,202,000 | ) | $ | 3,840,000 | |||
| Investing activities | (33,164,000 | ) | (152,553,000 | ) | ||||
| Financing activities | 28,528,000 | 126,528,000 | ||||||
| Net change in cash and cash equivalents | (26,838,000 | ) | (22,185,000 | ) | ||||
| Cash and cash equivalents at beginning of the period | 74,085,000 | 96,270,000 | ||||||
| Cash and cash equivalents at end of the period | $ | 47,247,000 | $ | 74,085,000 |
Announces Fourth-Quarter and Year-End 2024 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 income (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 income
(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 income (loss), for the
three months and year ended December 31, 2024 and for the same periods in 2023:
OF NET INCOME (LOSS) TO ADJUSTED EBITDA
| For the Three Months Ended December 31, | For the Year Ended December 31, | |||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| GAAP net income (loss) | $ | 6,777,000 | $ | (9,148,000 | ) | $ | (17,481,000 | ) | $ | (24,411,000 | ) | |||||
| Stock-based compensation and expenses | 4,794,000 | 4,175,000 | 17,619,000 | 15,696,000 | ||||||||||||
| Impairment of intangible assets | 253,000 | 380,000 | 253,000 | 380,000 | ||||||||||||
| Interest expense, net | 6,375,000 | 5,124,000 | 22,786,000 | 21,324,000 | ||||||||||||
| Income tax (benefit) expense | (514,000 | ) | (535,000 | ) | 161,000 | 701,000 | ||||||||||
| Depreciation | 468,000 | 435,000 | 1,850,000 | 1,530,000 | ||||||||||||
| Amortization of intangible assets | 4,075,000 | 2,448,000 | 11,783,000 | 10,082,000 | ||||||||||||
| Investment (income) loss, net | - | (416,000 | ) | 3,171,000 | (3,092,000 | ) | ||||||||||
| Loss on disposal of equipment | - | 146,000 | - | 168,000 | ||||||||||||
| Other expense (income), net | 261,000 | (46,000 | ) | 185,000 | 5,741,000 | (1) | ||||||||||
| Adjusted EBITDA | $ | 22,489,000 | $ | 2,563,000 | $ | 40,327,000 | $ | 28,119,000 |
Announces Fourth-Quarter and Year-End 2024 Financial Results
Core Results, including core gross margin, core net income (loss), and core basic and diluted income (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 certain 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, 2024 and for the same periods in 2023: