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Harrow Provides Fourth Quarter and Year-End 2024 Unaudited Preliminary Financial Results and 2025 Revenue Guidance

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Harrow (HROW) has announced a delay in releasing its audited financial results for Q4 and full-year 2024, as their new independent auditor requires additional time to complete the audit process. The company emphasizes this delay is not due to any disagreements on accounting principles, practices, financial statement disclosure, or auditing procedures.

CEO Mark L. Baum confirmed that Harrow has successfully met the annual leverage ratio term under their senior secured loan agreement, avoiding the issuance of warrants to lenders. The company has provided revenue guidance for 2025 of over $280 million, with growth expected to be primarily driven by their higher-margin branded business.

Harrow (HROW) ha annunciato un ritardo nella pubblicazione dei risultati finanziari auditati per il quarto trimestre e per l'intero anno 2024, poiché il nuovo revisore indipendente richiede ulteriore tempo per completare il processo di revisione. L'azienda sottolinea che questo ritardo non è dovuto a disaccordi sui principi contabili, sulle pratiche, sulla divulgazione dei bilanci o sulle procedure di revisione.

Il CEO Mark L. Baum ha confermato che Harrow ha rispettato con successo il termine del rapporto di indebitamento annuale previsto dal loro contratto di prestito senior garantito, evitando l'emissione di warrant per i finanziatori. L'azienda ha fornito una previsione di fatturato per il 2025 di oltre 280 milioni di dollari, con una crescita che si prevede sarà principalmente guidata dalla loro attività a marchio ad alto margine.

Harrow (HROW) ha anunciado un retraso en la publicación de sus resultados financieros auditados para el cuarto trimestre y el año completo 2024, ya que su nuevo auditor independiente requiere más tiempo para completar el proceso de auditoría. La empresa enfatiza que este retraso no se debe a desacuerdos sobre principios contables, prácticas, divulgación de estados financieros o procedimientos de auditoría.

El CEO Mark L. Baum confirmó que Harrow ha cumplido con éxito el término del ratio de apalancamiento anual bajo su acuerdo de préstamo garantizado senior, evitando la emisión de warrants a los prestamistas. La empresa ha proporcionado una guía de ingresos para 2025 de más de 280 millones de dólares, con un crecimiento que se espera que sea impulsado principalmente por su negocio de marca de mayor margen.

Harrow (HROW)는 2024년 4분기 및 연간 감사 재무 결과 발표가 지연된다고 발표했습니다. 새로운 독립 감사인이 감사 프로세스를 완료하는 데 추가 시간이 필요하기 때문입니다. 회사는 이 지연이 회계 원칙, 관행, 재무제표 공시 또는 감사 절차에 대한 어떤 이견 때문이 아님을 강조합니다.

CEO Mark L. Baum은 Harrow가 선순위 담보 대출 계약에 따른 연간 레버리지 비율 조건을 성공적으로 충족하여 대출자에게 워런트를 발행하지 않게 되었다고 확인했습니다. 회사는 2025년 매출 가이던스를 2억 8천만 달러 이상으로 제공했으며, 성장은 주로 고마진 브랜드 사업에 의해 주도될 것으로 예상됩니다.

Harrow (HROW) a annoncé un retard dans la publication de ses résultats financiers audités pour le quatrième trimestre et l'année complète 2024, car leur nouvel auditeur indépendant nécessite davantage de temps pour terminer le processus d'audit. L'entreprise souligne que ce retard n'est pas dû à des désaccords sur les principes comptables, les pratiques, la divulgation des états financiers ou les procédures d'audit.

Le PDG Mark L. Baum a confirmé que Harrow a réussi à respecter le ratio de levier annuel prévu par leur contrat de prêt senior garanti, évitant ainsi l'émission de bons de souscription aux prêteurs. L'entreprise a fourni une prévision de revenus pour 2025 de plus de 280 millions de dollars, avec une croissance qui devrait être principalement tirée par leur activité de marque à forte marge.

Harrow (HROW) hat eine Verzögerung bei der Veröffentlichung seiner geprüften Finanzberichte für das vierte Quartal und das Gesamtjahr 2024 angekündigt, da der neue unabhängige Prüfer zusätzliche Zeit benötigt, um den Prüfungsprozess abzuschließen. Das Unternehmen betont, dass diese Verzögerung nicht auf Meinungsverschiedenheiten über Rechnungslegungsgrundsätze, -praktiken, die Offenlegung von Finanzberichten oder Prüfungsverfahren zurückzuführen ist.

CEO Mark L. Baum bestätigte, dass Harrow die jährliche Verschuldungsquote gemäß ihrem Senior-Secured-Darlehensvertrag erfolgreich erfüllt hat, wodurch die Ausgabe von Warrants an die Kreditgeber vermieden wurde. Das Unternehmen hat eine Umsatzprognose für 2025 von über 280 Millionen US-Dollar bereitgestellt, wobei das Wachstum voraussichtlich hauptsächlich durch ihr margenstarkes Markenbusiness vorangetrieben wird.

Positive
  • Revenue guidance of over $280 million for 2025
  • Successfully met annual leverage ratio requirements, avoiding warrant dilution
  • Higher-margin branded business expected to drive growth in 2025
Negative
  • Delay in releasing audited financial results and Form 10-K filing

Insights

Harrow's preliminary Q4 and full-year 2024 announcement presents a mixed yet predominantly positive picture. The delay in their audited financial results creates short-term uncertainty, though management clearly attributes this to their new auditor requiring additional time rather than any accounting disagreements - an important distinction that reduces concern severity.

The most concrete positive signal is Harrow's 2025 revenue guidance of "over $280 million", which demonstrates management's confidence in continued growth. Notably, their strategic emphasis that higher-margin branded products will drive this growth suggests potential for improved profitability beyond mere revenue expansion - a critical factor for pharmaceutical companies seeking to enhance shareholder value.

Perhaps most significant from a balance sheet perspective is their successful compliance with their annual leverage ratio covenant under their senior secured loan agreement. This achievement prevented the issuance of potentially dilutive warrants to lenders - a direct benefit to shareholders that indicates disciplined financial management.

While management characterizes 2024 as delivering "record financial performance," the absence of specific metrics creates an information gap that investors should monitor closely. The preliminary nature of this announcement, combined with the audit delay, creates temporary information asymmetry until the complete audited results are filed.

This announcement demonstrates Harrow's strategic evolution toward higher-margin products while maintaining financial covenant compliance, though investors should await the complete audited results for comprehensive evaluation.

Company Expects to Provide Revised Dates for Release of Audited Financial Results, Conference Call, and Letter to Stockholders

NASHVILLE, Tenn.--(BUSINESS WIRE)-- Harrow (Nasdaq: HROW), a leading North American eyecare pharmaceutical company, today announced unaudited preliminary financial results for the fourth quarter and year ended December 31, 2024, as well as revenue guidance for 2025. Although Harrow was initially scheduled to release its audited financial results today, the Company’s new independent auditor requires additional time to audit Harrow’s financial presentation. As a result, Harrow is delaying its earnings release, conference call and Annual Report on Form 10-K filing. The change in the date of the filing of the Form 10-K is not related to any disagreements on accounting principles or practices, financial statement disclosure, or auditing scope or procedure.

In conjunction with today’s announcement, Harrow is providing the following unaudited preliminary financial results for the fourth quarter and year ended December 31, 2024:

 

For the Three Months Ended
December 31, 2024

 

 

For the Year Ended
December 31, 2024

Revenues

$65 - $67 million

 

$198 - $200 million

Net Income (Loss)

$5 - $7 million

 

$(17) - $(19) million

Adjusted EBITDA (a non-GAAP measure)

$21 - $23 million

 

$39 - $41 million

Adjusted EBITDA

The 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 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.

The 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:

 

For the Three Months Ended
December 31, 2024

 

For the Year Ended
December 31, 2024

GAAP net income (loss) range

$5,000,000 - $7,000,000

 

 

$(17,000,000) - $(19,000,000

)

Stock-based compensation and expenses

4,794,000

 

 

17,619,000

 

Impairment of intangible assets

253,000

 

 

253,000

 

Interest expense, net

6,375,000

 

 

22,786,000

 

Income tax (benefit) expense

(514,000

)

 

161,000

 

Depreciation

468,000

 

 

1,850,000

 

Amortization of intangible assets

4,075,000

 

 

11,783,000

 

Investment loss, net

-

 

 

3,171,000

 

Other expense, net

261,000

 

 

185,000

 

Adjusted EBITDA range

$20,712,000 - $22,712,000

 

 

$38,808,000 - $40,808,000

 

These preliminary results remain subject to the completion of the financial closing procedures and the final review by Harrow’s independent auditors. Accordingly, actual results may differ from these preliminary results.

Commenting on the announcement, Mark L. Baum, Chairman and Chief Executive Officer of Harrow, stated, “We were certainly looking forward to reporting our record financial performance for the fourth quarter and full year and to sharing details on the quarter with our stockholders, including that, as promised, we successfully met the annual leverage ratio term under our senior secured loan agreement, thereby avoiding the issuance of warrants to our lenders. However, we respect our auditors’ request for additional time to complete the audit process, as we remain fully committed to comprehensive, accurate, and transparent financial reporting.

“In addition, and in line with Harrow’s historical approach to providing directional financial guidance, I want to provide 2025 revenue guidance of ‘over $280 million,’ noting that our higher‑margin branded business is expected to drive most of our growth this year. I look forward to filing our Form 10-K, posting our Letter to Stockholders and corporate presentation, and, of course, discussing our results on a conference call, which we intend to schedule soon.”

About Harrow

Harrow, 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.

Forward-Looking Statements

This 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: our ability and the ability of our independent auditors to complete the audit of our financial statements and all related work; 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.

Jamie Webb

Director of Communications and Investor Relations

jwebb@harrowinc.com

615-733-4737

Source: Harrow, Inc.

FAQ

What is Harrow's (HROW) revenue guidance for 2025?

Harrow projects revenue of over $280 million for 2025, with growth primarily driven by their higher-margin branded business.

Why did Harrow (HROW) delay their Q4 and 2024 annual financial results?

The delay is due to their new independent auditor requiring additional time to audit Harrow's financial presentation.

Did Harrow (HROW) meet their loan agreement leverage ratio requirements for 2024?

Yes, Harrow successfully met the annual leverage ratio term under their senior secured loan agreement, avoiding warrant issuance to lenders.

When will Harrow (HROW) release their audited 2024 financial results?

Harrow will provide revised dates for the release of audited results, conference call, and Letter to Stockholders.
Harrow Health Inc

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