Earnings call transcript Q2 2023

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Operator

Good afternoon, and welcome to Harrow's Second Quarter 2023 Earnings Conference Call. My name is Kate, and I will be your operator for today's call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session.

As a reminder, this conference is being recorded.

to Communications call Harrow. and like Webb, to now of Director Investor would turn over the Jamie I Relations for go ahead. Please

Jamie Webb

quarter Thank to afternoon, Good XXXX second you, call. earnings and conference operator. Harrow's welcome

begin may forward-looking securities remarks laws. we the of the include today, you statements remind Before that me company's meaning within federal let

and and its as ability its manner described uncertainties Forward-looking drug to make subject risks FDA-approved products numerous are risks to timely statements to to from which the all. risks time control, such Harrow's including and beyond related SEC company's time in FDA certain commercially and technologies, of a are at available the and compounded approval in uncertainties, uncertainties formulations filings, candidates or and many of

those quarterly uncertainties, report description XX-Q on see company's For please Risk of subsequent and annual filed most the Factors and recent a and reports list risks XX-K and Exchange section Commission. the Securities Form with Form of on the

results or contains Harrow's update accurate financial This events call from any otherwise. disclaims and Harrow information today. because revise or obligation projected. projections intention or those or only statements, new any as information, to whether conference of future differ is of time-sensitive forward-looking may materially

the any are stockholders, most which the net Additionally, measures with both core comparable to well website. non-GAAP income non-GAAP and/or and as income earnings Harrow on included of EBITDA letter company's measures diluted the available share. A core financial as margin, refer core to and reconciliation adjusted core as earnings in metrics directly adjusted is release GAAP of specifically gross results per such net

a have the copy should earnings press you release. of now, received By

received go the Investor a not page www.harrow.com. to have of the please you If company's website Relations copy

Officer, Baum; me L. on Harrow's Harrow's Officer Financial Boll. call Mark and Chief Andrew Chief Executive today's are Joining

over the the like session. I'd that, turn prior to go to question-and-answer prepared some to remarks to call Mark With over

Mark L. Baum

us joining to everyone and Jamie, on for today's Thanks, thanks call.

to would of release As have second our Relations posted review XXXX been I stockholders of all that recommend you Investor our quarter letter which section the website. corporate earnings always, and presentation corporate, to

are the provide from documents and your important highlights on review the we on of to color these time questions. continue to calls operational course These quarter use to as taking our

To to-date, begin revenues our year the acquired based $XXX our after an million a financial $XXX few launched results net We operations to to provide XXXX remain our our we guidance EBITDA. of on and products. in $XX to in confident branded $XX million update with financial million to in months later and adjusted in intend guidance newly million of recently

the in of what call, portfolio Santen I quarter earnings difference of Fab ophthalmic as Novartis all stockholder makes. well portfolio our we've Since a we portfolio, first from XXXX. Five the is products the North and pharmaceutical last to including Novaliq. the As in from a on American in VEVYE letter substantially our This added closed as said on quarterly of top products months numerous few my acquired

market to Santen the IP product. OTC and have as rights and trends prescription the and five for Through through one all Demand acquired the Santen branded beyond. of for OTC product assets are one XXXX as to acquisition, rights product US prescription branded we the most positive products one Canadian well products or

the MA Drug are or currently transaction to earnings following Application - to which -New immediately this NDA Marketing working we Authorization transfers expect be on. We accretive

proprietary eye North based to signs the Novaliq the water-free the on is Almost like disease. eye symptoms under Novaliq view through and my your and EyeSol water-free eye cyclosporine-based transaction, of rights completely American Novaliq FDA-approved is acquired only puff drop. the Novaliq's reinvented I first my have and a VEVYE, products put different. both air on EyeSol In dry product indicated technology. eye. essentially they hitting we Now has for of VEVYE feel

that In will feel fact prescribers barely the I is your and eye. my a that It's love. experience know believe hit you patients drop totally unique has

development followed two have and the interested view that we many for who eye in Harrow's know market Those growth have keenly will eye years. US and the dry studied consist been My that is space have of dry camps.

water-free on one from side, products water other And products you'll the from have world. you'll the On what the calling I'm world. have side the

changer, it We in to X.X% ingredient It United has water this is been product pharmaceutical ingredient believe believe only Based the options are number my States experience the of on cyclosporine. my be technology, I available. water-free because when VEVYE contains prescribed but an products than putting not be globally soon believer. world as And treat also because of the no more eye seen a one dry eye active a and concentration game on VEVYE data population. and what am pharmaceutical challenging in sell can EyeSol disease most all cyclosporine. in what I EyeSol-based calling for immunosuppressant the the will I I have other active patient XXX% am a water-free to prescribed

cyclosporine-based VEVYE are product the for though, challenging. Before profiles products

these which of You label a our website on XX comparison can our is review deck, Slide products. of corporate for

patients We new cyclosporine-based continues rapid symptoms and year. to that with dry been these provides a has days. dealing to comfort get has eye onset one VEVYE an It prescribers help XX patient extraordinarily many products what of eye dry with prescribers VEVYE delivers. a eye disease profile US signs of product out event dry of patients years. exceptional profile mild, and what both for adverse and formulation that's shown want have believe You'll sense offers data with legacy their clinical it and a

of of US to prescription in of products diagnosed my to market pool failed over are market on of unique, development. also or we patient the to more is a in or dry said approved handful I the choice this dry to is XX-plus therapy. currently population, wide disease. treat population number the and eye the prescription of eye disease eye the large about still million alone, VEVYE billion we the US a providing that of patients, diagnosed dry intend and new million existing are for others meaningful and is have benefit of patients eye over which that patient moderate will dry growing I But to we As market of in this existing XX% the prescription and with by only eye about annual nine choices patients because those The maintain benefiting to choose prescription so one the way dry profiles are disease diagnosed and a severe overall their efficacy VEVYE the is therapy a suboptimal includes do from market which upend can eye tried importantly who therapy, US reasons totally dry And VEVYE products. by view prescription the letter patients who $X comfort in believe the open attributes, VEVYE's a increase therapy, stockholders, to despite of of are who number want eye from revenue and including also dry

ocular a products of surface meaningful compete Surgeons and is dry now in other of and dry share flag which the eye own the May about excited and disease to Tobradex in ultimately we disease to adjacent we and surface San millions the US Flarex, remain Society And Freshkote, launched IHEEZO we Meeting including we patients. market in suffering ST intend help Annual disease ocular vigorously focused officially course, Refractive at and Diego. of markets American VEVYE planting resolutely this and American With eye Harrow of win on Cataract and year

main still IHEEZO. an its the of early for such surgical anesthetic which in retina the of straightforward. take encouraged, especially a setting There launch, cataracts procedures very and is or glaucoma IHEEZO very are market it in use cases for While which or surgery interventions are all is outpatient place hospital care. math One, as on opportunity we given two

use physician's that's granted a per J-code as cases for intravitreal cost wholesale such and JXXXX is secondly, more year. use current such the And office the million product-specific on are injection. each $XXX such an there unit. in IHEEZO US were intervention acquisition We then aggregate than all cases XX that estimate And or pricing an a in we in the WAC

as have applications care as care. The that positive our on setting to feedback of IHEEZO the eye are indicated adopters about than eliminating that enthusiasm are their is well just ambulatory getting professionals of and users IHEEZO getting works from center anticipated many had surgeries we're IHEEZO opioids is care from setting value second works of early even we for there even potential applications that IHEEZO reimbursed its well. as in in-office both that adding product. and it the surgery of previously more clinical well

Bucket we've we been what at Bucket ImprimisRx anterior execution ophthalmic pharmaceutical surface buckets revenue Bucket full and consists Bucket five dry three summary, These annual which company product the We improved we revenue Pharmaceutical cornerstone TRIESENCE. are products. that by building Harrow believe segment In hard is current And our conditions which our top-tier just our potential. ocular four tried have include business. specialty product team with a US-focused believe the detail one continued become X is and I Harrow bucket in stockholders' is five IHEEZO. X-figure and VEVYE. company. portfolio with other a buckets Compounded by can disease eye now Products work in our described that call discrete of letter two has Bucket led revenue

the as in stockholder So our more those five said are described fully letter. I buckets

key of exact ago of IHEEZO to revenue with expected we in our products. a of we only are have the them months Harrow are in opportunities both and and in. And always position now, market market sources new without portfolios start build products need Regardless are now the products and ophthalmic one two, others we that products. That said of a they and these from exciting single course to strong later of two of of I wanted believe and few now the of contain the VEVYE And and position revenue a year. question. we groups buckets Some US product have the IHEESO of also acceptance incredibly of comprehensive the revenue revenue timing be number is of the conviction flow an VEVYE ultimately steady a has in one that launched market most largest consist both. of launch

questions. I'll pause take questions. our to poll to have happy We're for Operator? your operator

Operator

Ladenburg is ahead. Jeffrey first [Operator Thalmann. Please go of Instructions] The question Cohen from

Jeffrey Cohen

Mark Jamie, Andrew. and Hi, you? How are

Mark L. Baum

to Jeff. Great, you with speak great. Good

Jeffrey Cohen

while. a been it's know, I

the on core the a little few the the the recent bit Maybe just Is from clarify end. then includes historical regular guess to questions on So versus a front? the margin our number and other expand additions? core just products and the Andrew all margin up you recent I gross could

Andrew Boll

the question. Hey, thanks Yeah. Jeff for

So the gross margin NDAs. the core of got the basic reconciliation pretty on shareholder GAAP difference on and between on we've of the core the letter. But back a table good those is amortization

the that of we're amortizing amortization a And the price purchase are the products other capitalized So couple through of Five cost sold. primarily. expenses there of of goods non-cash Fab capitalized

so And that core reflected pulling number. amortization number in the is amortization The that we're GAAP out.

Jeffrey Cohen

it. Got and as communicate as launch IHEEZO far thus Mark on far? thus commentary the April And to bullet relevant any from points specific far Okay. acceptance physician any

Mark L. Baum

on has I that been stockholders think to I detailed. in remarks color fairly of prepared provided is the performance in the No, exceptional. product IHEEZO letter mentioned the that's my the

anyone who well. that say product it exceptionally perform had the haven't has use We doesn't

a the So was opportunity, With a product last the of product. the the try like reimbursement people such getting large real product the and piece and puzzle. paid. who IHEEZO That have actually of market you key IHEEZO claims is sort like

customer those going of going stockholders even amount not for We every every We're creates for given not company. winning we're the recognize our to tremendous a win number unit small But over account. of percentage a unit that, to and opportunity. the of opportunities value total very win

in-office that now ASC only of it, care. pleased doctors setting in of And but of we're seeing are them in the the using so really also care, not get hospital the reimbursed who the the we're for study care setting

is And are care injections. And J-code in-office of the permanent intravitreal so setting our powerful. these

positive. the really, of doctors that And I'm that, was from last the very puzzle sort of for the reimbursement piece back And really pleased retina reports us. are so

one got Just actually today. earlier

claims commercial of Advantage. So and we're paid course seeing then also for Medicare payers

So Medicare Advantage plans.

my would iPhone analogy for texting excited camera was the good. iPhone. sort in ago I had happened said, when really used called have old it. payment So, of my stockholders to I IHEEZO. Blackberry to e-mail. of an I XX not I performing the And great BlackBerry that is the phone The features. said this the we're The had interested about pattern really love users to access side back that the product about years my gave letter good the as The the thing I well. and hey, I iPhone I course, been never of I probably of of experience And and But seeing BlackBerry. once in same the benefits went was

for anesthesia the of about seeing their way the course is product. we're market US I it. ocular anesthetic better thinking reimbursable are to they're doing anesthesia, think Doctors I which a and way boon And old of topical think the in only do a

Jeffrey Cohen

commercial bring demographic as FTEs us currently they to and and commercial then if tie speed and the would presence and then how And how recent you up acquisitions the to lastly as looks they integrated? it. VEVYE, could be far on came maybe folks that and into for Santen any team with us, Got portfolios total

Mark L. Baum

think W-Xs. transitioned dedicated we've all I of all, XXXX. we're from first -- the away

point they're sales all employees of one. the Harrow. That's So organization

Secondly, XX in believe of I FTEs, we're to close terms now. I think getting folks

of to And to is the building we slowly. talked sales expenses team and about let here in our related folks. demand, past, drive revenue as are sort and we've strategy increases the that out expense in But includes

see other on my And open very is that years I ago. different sense candidates mean, that the our LinkedIn you comment are positions. from one you it there we're think leadership can I of quality than commercial seeing and look is that was today

seeing community think There in I the strong is ophthalmic They're portfolio a and the bit Harrow the the are, activity. seeing pharmaceutical join sales built. of They're we've that buzz, team. leaders' wanting very a to

join And the well. so as all? to you do team want at we're getting add that better to candidates Andrew, to

Andrew Boll

and side, not I'll we kind support create analytics access, to XX expense. to don't of is that you're make No it behind let fill going -- to when with hire what going Nothing my doing work we're saying this go the drive to We're and in hiring. sort we're We'll and add to and of reps, importantly, have side additional the that Mark. reimbursement though that, another that on it. just and demand going revenue revenue on build that echo market Jeff, sure

Jeffrey Cohen

it. Got

Okay. Super Nice readouts. that helpful. for questions. Thanks

Andrew Boll

Thank you, Jeff.

Mark L. Baum

Jeff. Thanks

Operator

O'Neil ahead. The next question Street is Lake from Brooks of Capital go Markets. Please

Brooks O'Neil

the Thank Good afternoon, and confess, I quickly shareholder did as thoroughly after guys. much. could, you skimmed report I three closing companies letter the very as have I everyone. I but

something And letter. can I ask So in about you apologize well you for I might that's appreciate in the that. advance documented

for. But much bit Jeff to start I But reimbursed its wholesale Medicare down the was I in the $XXX, I want the want about commentary by that, specifically being acquisition IHEEZO. -- commercial going path And MA indicated a letter. think and just doctors cost mentioned saw plans. and read maybe have with little ask mentioned they're I specifically you you and the that's of to just called

gets then just sell, help us each that us get help that you would to IHEEZO Is various a understand how you a setting price vile price IHEEZO? doctor dynamic for, that and guys? $XXX sense reimbursed sites Can a means these or that for understand that you you realize much guys for of help of what us in

Mark L. Baum

Sure.

or that process an benefit, part clear. don't not economic a the sales Just of process to gets the ASC the physician be start, marketing doctors any spread to sell the and or on we benefit is

Brooks O'Neil

Yeah.

Mark L. Baum

entire don't there other get expenses. so costs distribution and the we and $XXX terms the In are of related costs,

of how a So Andrew with kind breakdown broad rough you can brush. a of, works give that in --

Andrew Boll

Brooks. Yeah.

the So -- whole we're branded Mark for this of and like -- said, seeing our all not we're this products. growth goes

rebates, net other wholesaler mentioned, to -- of to be any deduction. our estimated Mark As we're net going revenue is chargebacks, discounts, going

gamut discount. seen it's XX% it's ranges saying payers. week. is products we've discounted with especially XX%, that gross on how but And products and heavily product so not their done net I'm on based where up run are the to XX%, the acquisition on from ours the We've it to where can diligence that used

Brooks O'Neil

general Any right? But some doctor us very a that’s If just guys. with understand physician what we're reimbursed sites. commercial, And gets we're I correctly various sense. it Medicare in for Again helpful understand various sense or XXX that Okay. buckets Advantage. margin I or whether the hospitals these plus offices whether it's Medicare help it's talking talking

Mark L. Baum

paying hospital -- reimbursed And is amount is then ASC There amount. that or than the -- typically obviously the price a and is is physician lower so that for product. there a Yeah. there's the

fee built supplemental. an so-called Sometimes there to can be that is so extra a a GAAP

are we're well that paid supplementals coverage seeing the the what available. in J-code so as the And through coming is payments is if and are that being

So we're complaints. code not and are the that. administrative. the cases any there the where are complaints. long And commercial any always when or the even NDC billed But is I meet covering issues are itself any There supplementals literally I say advantages Those hearing is the paid being delta. like and are

Brooks O'Neil

that physicians is which have market, right? success is really paid the And their reasonable getting your big Great. in too, had office sense the

Mark L. Baum

to the is The in-office cataract the we about market markets. twice and size estimate surgical

hospital So size the the of injection market. in intravitreal double the market particular ASC is

think which ensure we're piece that coverage picture you works is When puzzle product. as like product the as J-code, get with code last and so the code. IHEEZO that to adoption are And we're big of the there IHEEZO have it that make able to physicians you IHEEZO seeing was to And does sure piece the the seeing well. a we that said, I make sure And I paid. has puzzle message the the last of that of a want want build have to and

to the that's And And so no there I now barriers think product. are very, really adopting doctors positive. very

Brooks O'Neil

Very positive. That's great.

kind us just shift about I'm more much of me the near you know what about and of home might to Let I me is I VEVYE today numbers lot can don't know round for in was that IHEEZO. for nothing for and to it much both future. of about a ask don't for But VEVYE, I in nearly gears as going learn understand, regard apologize established for and understand -- same know I getting which or the terms required the help stand amount product? reimbursement reimbursement product you that the or where product, you whatever that be picture with reimbursement in

Mark L. Baum

Yeah.

and as IHEEZO a So It's product. coverage. in to billed D drug buy-and-bill as part it's it Part will and a different. bravo be VEVYE a in is is product is Part product B of a a It And the different delta.

now Now in marketing of VEVYE access. really FDA-approved on and all already that's to behind scenes the is addition activity going key market newly that's the the is work started

focused And contracting a as access so VEVYE for and and activities public private payers on our activities only also team in through go price with working those not now market we'll well. and is but payers,

amazing this product and team have them. market certainly for is a We priority access an VEVYE

not the So we product, have priced yet.

the think $XXX from I category, range this in in Products $XXX to anywhere range.

you priced said, the price because will access issues. and regardless coming I so actually regardless as can the we status, market VEVYE months. happen not But and yet, through of the take the work that what tell will -- I that of have access will over We

We vigorously compete. are going to

is other benefits relative the we low companies. of example the our for costs One of VEVYE cost acquiring rights the that in to have competing the is, transaction with

pricing, and think in some And terms on. I of so, leverage gives in flexibility us so some terms rebates of that

to as therapy. we We're compete, going to we're patients what compete get to an access hard. going are we is feel to So many try and going extraordinary

XXXX not market of is beyond something and a sort this XXXX our impact going to But that's activity. is This revenues. is The massive. really

behind of feel estate product, It is VEVYE. IP efficacy. unusual the amazing an an the have the product, We

that us It's is unique. the we totally it. FDA And key have for It's so, approved.

field, a not large we issues through access stockholders. for a really we only to for work market will value completely and We but create have patients, and wide-open believe the our playing

Brooks O'Neil

That’s fantastic. That’s great.

about I with you've the comments, me shift you what big I'll mentioned been jump the the test I batches available had you is, is for that just in back. saw my broadly, just sort if commented is give product product there? sense also sense us timing in And a issue to your you in more manufacturability. enormous that potential. because to can get be let So status but some a there and gears letter opportunity is some and to expect and you has color pretty then historically made TRIESENCE, that success, the you little market of be My letter, think one and your customers one a time more

Mark L. Baum

of Without that want of -- in They from in it, stockholder regard, I we And had the we've letter, question, stockholder said TRIESENCE. the this work every the ophthalmologists a access back. and been we've can to uses we're from inbound for you lot want partner. the it our with a manufacturing letter that of week, all They various lot of product. doing about tell

the has produced. of material I think is, batch good been the news a successfully -- that the

the quarter. replicating our conclude in what that, expect is we're the of activity And doing that we partner early kind and to is part we're now of so really fourth

We we if so, that first have and hopefully, in the the produced. part the the quarter have those should the not next of already year. results some us material results these available of PPQ should match was batches batch successfully of the assuming, to from And end year of early by results

is provide with NDA that before is release or TRIESENCE, Novartis a for to One with January. the a to by with incentive of commercial for final owed connection us, a batch payment the middle The that point. deal of struck in Novartis, has million. financial transfer we them $XX The

from is period, so $XX $XX million. that However, of if the sort time of batch owed payment that reduced million middle by is is January produced the not to the

middle right January. an to $X this us by provide of million incentive to the inventory and get with there's So

Brooks O'Neil

So a will period time, partner just they just helping and hump understand they you so you being for your of able to -- it for of they are will get manufacture it? I manufacture over the or commercial

Mark L. Baum

we've multi-year agreement products the of ongoing place. or have all of manufacturing an manufacturing whether we Novartis the we contract we it's have With choose. acquired to flexibility move that so in ensure we Santen, And partner, always from course, another if that to

But and inventory year. end continue we do TRIESENCE. a don't need partner And for have It we I lot excited we and pretty the intend is, sell itself. will we're about place relationship much think to that in nice sell the TRIESENCE, some thing of to to hopefully by TRIESENCE the a have salespeople of

So inventory, for we'll and if produce our produce will to much think, our stockholders. we be have as lot a able we take as wholesalers value the of I could

Brooks O'Neil

I and Great. to my talking patience your you and taking again questions appreciate guys with I’ll forward to soon. me look

Mark L. Baum

Brooks. you, Thank

Operator

Mamtani ahead. of Please Mayank Riley. go question The from B. is next

Mayank Mamtani

on strategic congrats and in strong and stakeholder quarter see letter. Dean, five-year afternoon, your to Good plan the a good

So much from wonder full much driving And and to be ahead products ramping your you're plan. able I Santen accretion in the might us. to We cap of have calendar year a question within then the be that, a IHEEZO up also push how terms start couple XXXX. and also but questions relatively of picking thoughts seem of Maybe to get and regarding on year the guidance. pull lot there fairly how of your targeted

that would be great. just could that on you comment If

Mark L. Baum

Yes.

course The the branded revenue That's broadly VIGAMOX, is you thank portfolio. growth our of MAXIDEX, question. being for speaking MAXITROL, IHEEZO. and it's ILEVRO, NEVANAC, So driven by

we're that's growth. So where seeing the

provide expect to going on, when we the that That's to also under to once And some that months. base in our the see of happen control. have only we a brought expect the tomorrow. portfolio going portfolio the few we products we It's sort authorizations take also Santen not acquired not growth revenue marketing but meaningful we to

terms portfolio there's So XXXX of period the pickup in in I and transition overall you see from And a we're that Santen undergoing. of should contribution. revenues sort think a

IHEEZO. to the But think are the growth come I real in XXXX going business from drivers in

We beginning excited spent beyond and XXXX the lot I market is really just significant personally market expect been time very work growth of and XXXX we're this access VEVYE have in trying and IHEEZO And for a to there. understand. and continued a about

telephonic hundreds We of have disease and chronic conducted hundreds interviews. dry interviewed patients

this and what so overcome these very think we And to well are have the you that to we understand folks. population nuances help patient

just that very come. so got about XXXX many, offer patient beyond out on a what going And this into very, build and are XXXX product we mean to VEVYE And years actually. for strong excited many and to and be it is in population. will will this to you've very I IP VEVYE

to So offer it's a a long going product help It's that people. a lot we're long, to going for time. of

Mayank Mamtani

we water versus water-free Great. Thank have DED you. And the way maybe staying on your -- analogy. this marketplace entry by and the

point relative that perception patients the to a uptake as a well. launches of more recent don't have going the which created limited maybe differentiation the market slow, opportunity this comply lot being is the VEVYE, drug of They product some your undertreated. function of For being to

standpoint sort of what are clearly folks obviously we data clinical recent these drugs. differentiates to are also about talking curious of relative genetic to know how spaces from it maybe cyclosporine? So some a profile which And is against just the

Mark L. Baum

Yes.

is the our One twofold. for have because which of exceptional. what enthusiasm said I As we is reason

we buttressed a our that product. we the by competition great But So have face. enthusiasm is

product grittiness of But you're the you're if and you're patient And feeling the products and that and lot in that aggravated go even you hand, event a there's of have and are look a redness the pain And them. that so, when may and in on eye you some put for market at a your worse in your products patients profile than one or to hard the XX% you a to say development. eye you are experience work. the adverse eye your in eye product it's dry the of instill pain get in and

feels live them. my that's put that And And chronic don't I in something them. and patient totally I nothing world that EyeSol that interviews on going just are you're said helping the have to have something pain. products an really I patients, need different and think a your it. I these in that literally have there's we dry like disease So, product my as soothes unique of eye think approach. And you eye to really so-called just we water benefit that hundreds eye having of listened personally

up nose talking approach. up is may have new patients world. it that And way nose. Not doesn't cause It's burning the have you products This VEVYE. have doesn't instillation put we're dysgeusia. about pain to like sneezing to that and It doesn't on to a new or world. when totally to margin existing spray execute going benefit a doesn't sure something your patients. But the some something at It is we're of access strategy in don't cause completely your patiently different the you cause it make a water-free stinging

Mayank Mamtani

to Andrew? target sort is leverage there in Got for the Is some trying it's ratio -- term. near for working sort range to improved a it. medium just is of a there of you're Obviously there one get And towards maybe Andrew. you're last to but range

Andrew Boll

think for question I we're thanks obviously in what think focused it by is that's DNA. that. -- and is We I And deal our mean of the depends answer. a I good sort that

to are it pass we're can transactions and up. lever that into And not we so transact going on it if there

towards obviously is leverage it do current personally an got annualized what be just an would so that. And We're to ratio, working deal But to see definitely on the going that. and attractive that's I lower. to to the current it's based on not especially like to we're I'm basis, saying

I throughout the to EBITDA you the guidance in our grow going even us is in it guidance think for continue if the expectation see to is to year order number. hit

at transactions our to of But we advantage transactions We'll do. we'll do use are these and time, side. way the same fund on debt there if as for debt and to that the partners to us take like a the additional instrument

Mayank Mamtani

taking questions. Makes a sense. for of again Thanks Understood. lot our

Andrew Boll

Mayank. you, Thank

Operator

ahead. of The next Asset Jim question is from Please Roumell Management. Roumell go

Jim Roumell

Thanks.

question. quick a Just

following but to New been story the it.

XX% in pulls, chance a quarter. decisions the look of color the give and but can had to little you're just quarter I decisions as expansion in XX% year? credit making, But nearly or color on Your a the first of for net dropped -- what nearly to in haven't at sheet half net little dropped equity -- why equity really kind you of growth. the the you're pushes a your the balance

Andrew Boll

happy Hey to it. about that talk address is I'm Jim. Andrew. This and

the NDAs So we've of we a year, about the are with to $XX beginning just Jeff. GAAP the lost at talked call There as basis related -- amortization a of the on impacts that under noncash such that about of million. for lot

in quarter subsequent subsequent raised Importantly to end that we periods. the balance equity that did $XX new capital of about increase also will million

Jim Roumell

Okay.

non-cash So a the of first of lot charges year? the in half

Andrew Boll

right. That's

Jim Roumell

these -- you are writing of this down? Are are is are off? what you or writing So things -- amortizing acquisitions, you just kind actually

Andrew Boll

Sure.

these I some about is intangible far our million $X.X So to of a debt through of amortization extinguishment about related in Eaton. costs also then investment non-cash examples. assets, a we $X.X of of so There's go million. A of chunk had it holding And losses couple can amortization. big that

of not All that essentially non-cash or operating. is

Jim Roumell

I appreciate Well, probably follow-up later. Okay. that. I’ll

Andrew Boll

Thank you, Jim.

Jim Roumell

Okay. Thank you.

Operator

questions we will That today. back all the for time I the for to closing call now Baum have Mark remarks. is turn

Mark L. Baum

Thank you, operator.

without shot for has supported had come. for interest in have to our build a in at vendors for Thanks half your our we customers, and journey. continuing trust be The achieving exciting a loyal goals everyone employees, know this is the proven us Harrow. many I or who and continue stockholders, attending to call that first Harrow. today's we throughout achieved this for and period to XXXX of to it Momentum have would of expect and years XXXX to never productive

If you our call. have any Jamie jwebb@harrowinc.com. please investor-related Thank e-mail at questions, will conclude you this and Webb

Operator

has conference today's Thank for attending The you presentation. concluded. now

now may disconnect. You

Harrow Health (HROW) 9 Aug 232023 Q2 Earnings call transcript