Full Press Release Details
Announces Second Quarter 2024 Financial Results
Quarter 2024 and Recent Selected Highlights:
| Record revenues of $48.9 million | ||
| GAAP net loss of $(6.5) million | ||
| Adjusted EBITDA of $8.8 million | ||
| Cash and cash equivalents of $71.0 million as of June 30, 2024 | ||
| IHEEZO customer unit demand volume increased by 98% from the first quarter of 2024 | ||
| IHEEZO supply agreements total 24 agreements to date in 2024, including a recent win with the largest and highest volume U.S. retina practice group | ||
| VEVYE total prescriptions increased by 212% from the first quarter of 2024 | ||
| Anterior Segment revenues up over 40% from the first quarter of 2024 | ||
| Record quarterly revenues from Harrow's ImprimisRx subsidiary |
Tenn., August 7, 2024 - Harrow (Nasdaq: HROW), a leading North American eyecare pharmaceutical company, announced results for the
second quarter and six months ended June 30, 2024. The Company also posted its second 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
second quarter of 2024 marked a financial and operational turning point for Harrow, with revenues surging 46% compared to the same quarter
last year and 42% over the previous quarter," said Mark L. Baum, Chief Executive Officer of Harrow. "This remarkable growth,
which was years in the making, was driven by exceptional performance across all Harrow business segments, most notably IHEEZO and VEVYE.
Our team also continues to advance the relaunch of TRIESENCE during 2024, with initial analytical test results for the
second process performance qualification (PPQ) batch demonstrating in-specification results and the third PPQ batch scheduled to be manufactured
in a matter of days. This outstanding quarterly report is a testament to the dedication of the entire Harrow Family, which is being continuously
strengthened by the addition of experienced and motivated high-impact individuals. We are excited about where we are today, confident
that we are poised for, and expect to achieve, further revenue and profitability expansion in the coming quarters and years."
quarter 2024 figures of merit:
| For the Three Months Ended June 30, | For the Six Months Ended June 30, | |||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| Total revenues | $ | 48,939,000 | $ | 33,470,000 | $ | 83,526,000 | $ | 59,573,000 | ||||||||
| Gross margin | 74 | % | 70 | % | 72 | % | 69 | % | ||||||||
| Core gross margin (1) | 79 | % | 78 | % | 77 | % | 77 | % | ||||||||
| Net loss | (6,473,000 | ) | (4,229,000 | ) | (20,038,000 | ) | (10,872,000 | ) | ||||||||
| Core net loss (1) | (2,047,000 | ) | (494,000 | ) | (11,836,000 | ) | (1,536,000 | ) | ||||||||
| Adjusted EBITDA (1) | 8,803,000 | 11,005,000 | 9,030,000 | 16,347,000 | ||||||||||||
| Basic and diluted net loss per share | (0.18 | ) | (0.14 | ) | (0.56 | ) | (0.36 | ) | ||||||||
| Core basic and diluted net loss per share (1) | (0.06 | ) | (0.02 | ) | (0.33 | ) | (0.05 | ) |
Announces Second Quarter 2024 Financial Results
Company's management team will host a conference call and live webcast tomorrow morning, Thursday, August 8, 2024, at 8:00 a.m.
Eastern time to discuss the second quarter 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 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 (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 Second Quarter 2024 Financial Results
CONDENSED CONSOLIDATED BALANCE SHEETS
| June 30, 2024 | December 31, 2023 | |||||||
| (unaudited) | ||||||||
| ASSETS | ||||||||
| Cash and cash equivalents | $ | 70,968,000 | $ | 74,085,000 | ||||
| All other current assets | 68,422,000 | 65,397,000 | ||||||
| Total current assets | 139,390,000 | 139,482,000 | ||||||
| All other assets | 167,240,000 | 172,682,000 | ||||||
| TOTAL ASSETS | $ | 306,630,000 | $ | 312,164,000 | ||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
| Current liabilities | $ | 53,551,000 | $ | 49,344,000 | ||||
| Loans payable, net of unamortized debt discount | 185,023,000 | 183,172,000 | ||||||
| All other liabilities | 9,879,000 | 9,237,000 | ||||||
| TOTAL LIABILITIES | 248,453,000 | 241,753,000 | ||||||
| TOTAL STOCKHOLDERS' EQUITY | 58,177,000 | 70,411,000 | ||||||
| TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ | 306,630,000 | $ | 312,164,000 |
| HARROW, INC. UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||||||
| For the Three Months Ended June 30, | For the Six Months Ended June 30, | |||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| Total revenues | $ | 48,939,000 | $ | 33,470,000 | $ | 83,526,000 | $ | 59,573,000 | ||||||||
| Cost of sales | 12,539,000 | 10,000,000 | 23,092,000 | 18,271,000 | ||||||||||||
| Gross profit | 36,400,000 | 23,470,000 | 60,434,000 | 41,302,000 | ||||||||||||
| Selling, general and administrative | 31,817,000 | 19,957,000 | 60,630,000 | 35,845,000 | ||||||||||||
| Research and development | 3,053,000 | 1,161,000 | 5,202,000 | 1,895,000 | ||||||||||||
| Total operating expenses | 34,870,000 | 21,118,000 | 65,832,000 | 37,740,000 | ||||||||||||
| Income (loss) from operations | 1,530,000 | 2,352,000 | (5,398,000 | ) | 3,562,000 | |||||||||||
| Total other expense, net | (7,348,000 | ) | (6,596,000 | ) | (13,985,000 | ) | (14,737,000 | ) | ||||||||
| Income tax (expense) benefit | (655,000 | ) | 15,000 | (655,000 | ) | 303,000 | ||||||||||
| Net loss attributable to Harrow, Inc. | $ | (6,473,000 | ) | $ | (4,229,000 | ) | $ | (20,038,000 | ) | $ | (10,872,000 | ) | ||||
| Net loss per share of common stock, basic and diluted | $ | (0.18 | ) | $ | (0.14 | ) | $ | (0.56 | ) | $ | (0.36 | ) |
| HARROW, INC. UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||
| For the Six Months Ended June 30, | ||||||||
| 2024 | 2023 | |||||||
| Net cash (used in) provided by: | ||||||||
| Operating activities | $ | (7,374,000 | ) | $ | (3,648,000 | ) | ||
| Investing activities | 4,993,000 | (132,219,000 | ) | |||||
| Financing activities | (736,000 | ) | 62,351,000 | |||||
| Net change in cash and cash equivalents | (3,117,000 | ) | (73,516,000 | ) | ||||
| Cash and cash equivalents at beginning of the period | 74,085,000 | 96,270,000 | ||||||
| Cash and cash equivalents at end of the period | $ | 70,968,000 | $ | 22,754,000 |
Announces Second Quarter 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 loss, excluding the effects of stock-based compensation and expenses, interest, taxes, depreciation,
amortization, investment loss (income), 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 (used in)
provided by 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 six months ended June 30, 2024 and for the same periods in 2023:
| HARROW, INC. RECONCILIATION OF NET LOSS TO ADJUSTED EBITDA | ||||||||||||||||
| For the Three Months Ended June 30, | For the Six Months Ended June 30, | |||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| GAAP net loss | $ | (6,473,000 | ) | $ | (4,229,000 | ) | $ | (20,038,000 | ) | $ | (10,872,000 | ) | ||||
| Stock-based compensation and expenses | 4,271,000 | 5,412,000 | 8,440,000 | 7,045,000 | ||||||||||||
| Interest expense, net | 5,471,000 | 5,704,000 | 10,886,000 | 10,451,000 | ||||||||||||
| Income taxes | 655,000 | (15,000 | ) | 655,000 | (303,000 | ) | ||||||||||
| Depreciation | 453,000 | 398,000 | 885,000 | 690,000 | ||||||||||||
| Amortization of intangible assets | 2,549,000 | 2,843,000 | 5,103,000 | 5,050,000 | ||||||||||||
| Investment loss (income), net | 1,923,000 | 714,000 | 3,171,000 | (1,328,000 | ) | |||||||||||
| Other (income) expense, net | (46,000 | ) | 178,000 | (72,000 | ) | 5,614,000 | (1) | |||||||||
| Adjusted EBITDA | $ | 8,803,000 | $ | 11,005,000 | $ | 9,030,000 | $ | 16,347,000 |
Announces Second Quarter 2024 Financial Results
Core Results, including core gross margin, core net loss, 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 six months
ended June 30, 2024 and for the same periods in 2023:
| For the Three Months Ended June 30, 2024 | ||||||||||||||||||||
| GAAP Results | Amortization of Certain Intangible Assets | Investment Gains | Other Items | Core Results | ||||||||||||||||
| Gross profit | $ | 36,400,000 | $ | 2,140,000 | $ | - | $ | - | $ | 38,540,000 | ||||||||||
| Gross margin | 74 | % | 79 | % | ||||||||||||||||
| Operating income | 1,530,000 | 2,549,000 | - | - | 4,079,000 | |||||||||||||||
| (Loss) income before taxes | (5,818,000 | ) | 2,549,000 | 1,923,000 | (46,000 | ) | (1,392,000 | ) | ||||||||||||
| Taxes | (655,000 | ) | - | - | - | (655,000 | ) | |||||||||||||
| Net (loss) income | (6,473,000 | ) | 2,549,000 | 1,923,000 | (46,000 | ) | (2,047,000 | ) | ||||||||||||
| Basic and diluted loss per share ($) (1) | (0.18 | ) | (0.06 | ) | ||||||||||||||||
| Weighted average number of shares of common stock outstanding, basic and diluted | 35,618,977 | 35,618,977 |
| For the Six Months Ended June 30, 2024 | ||||||||||||||||||||
| GAAP Results | Amortization of Certain Intangible Assets | Investment Gains | Other Items | Core Results | ||||||||||||||||
| Gross profit | $ | 60,434,000 | $ | 4,280,000 | $ | - | $ | - | $ | 64,714,000 | ||||||||||
| Gross margin | 72 | % | 77 | % | ||||||||||||||||
| Operating loss | (5,398,000 | ) | 5,103,000 | - | - | (295,000 | ) | |||||||||||||
| (Loss) income before taxes | (19,383,000 | ) | 5,103,000 | 3,171,000 | (72,000 | ) | (11,181,000 | ) | ||||||||||||
| Taxes | (655,000 | ) | - | - | - | (655,000 | ) | |||||||||||||
| Net (loss) income | (20,038,000 | ) | 5,103,000 | 3,171,000 | (72,000 | ) | (11,836,000 | ) | ||||||||||||
| Basic and diluted loss per share ($) (1) | (0.56 | ) | (0.33 | ) | ||||||||||||||||
| Weighted average number of shares of common stock outstanding, basic and diluted | 35,544,312 | 35,544,312 |
Announces Second Quarter 2024 Financial Results
| For the Three Months Ended June 30, 2023 | ||||||||||||||||||||
| GAAP Results | Amortization of Certain Intangible Assets | Investment Gains | Other Items | Core Results | ||||||||||||||||
| Gross profit | $ | 23,470,000 | $ | 2,649,000 | $ | - | $ | - | $ | 26,119,000 | ||||||||||
| Gross margin | 70 | % | 78 | % | ||||||||||||||||
| Operating income | 2,352,000 | 2,843,000 | - | - | 5,195,000 | |||||||||||||||
| (Loss) income before taxes | (4,244,000 | ) | 2,843,000 | 714,000 | 178,000 | (509,000 | ) | |||||||||||||
| Taxes | 15,000 | - | - | - | 15,000 | |||||||||||||||
| Net (loss) income | (4,229,000 | ) | 2,843,000 | 714,000 | 178,000 | (494,000 | ) | |||||||||||||
| Basic and diluted loss per share ($) (1) | (0.14 | ) | (0.02 | ) | ||||||||||||||||
| Weighted average number of shares of common stock outstanding, basic and diluted | 30,458,677 | 30,458,677 |
| For the Six Months Ended June 30, 2023 | ||||||||||||||||||||
| GAAP Results | Amortization of Certain Intangible Assets | Investment Losses | Other Items | Core Results | ||||||||||||||||
| Gross profit | $ | 41,302,000 | $ | 4,694,000 | $ | - | $ | - | $ | 45,996,000 | ||||||||||
| Gross margin | 69 | % | 77 | % | ||||||||||||||||
| Operating income | 3,562,000 | 5,050,000 | - | - | 8,612,000 | |||||||||||||||
| (Loss) income before taxes | (11,175,000 | ) | 5,050,000 | (1,328,000 | ) | 5,614,000 | (1,839,000 | ) | ||||||||||||
| Taxes | 303,000 | - | - | - | 303,000 | |||||||||||||||
| Net (loss) income | (10,872,000 | ) | 5,050,000 | (1,328,000 | ) | 5,614,000 | (1,536,000 | ) | ||||||||||||
| Basic and diluted loss per share ($) (1) | (0.36 | ) | (0.05 | ) | ||||||||||||||||
| Weighted average number of shares of common stock outstanding, basic and diluted | 30,379,354 | 30,379,354 |