0001493152-20-020827 | 10-Q | XBRL Viewer

DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION

NOTE 1. DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION

Company and Background

Harrow Health, Inc. (together with its subsidiaries, partially owned companies and royalty arrangements unless the context indicates or otherwise requires, the “Company” or “Harrow”) specializes in the development, production and sale of innovative medications that offer unique competitive advantages and serve unmet needs in the marketplace through its subsidiaries and deconsolidated companies. The Company owns one of the nation’s leading ophthalmology-focused pharmaceutical businesses, ImprimisRx. In addition to wholly owning ImprimisRx, the Company also has equity positions in Eton Pharmaceuticals, Inc. (“Eton”), Surface Ophthalmics, Inc. (“Surface”), and Melt Pharmaceuticals, Inc. (“Melt”), all companies that began as subsidiaries of Harrow. More recently, the Company founded drug development subsidiaries Mayfield Pharmaceuticals, Inc. (“Mayfield”) and Stowe Pharmaceuticals, Inc. (“Stowe”), among others. In 2020, Harrow created Visionology, Inc., which intends to launch an online eye health platform business. Harrow also owns royalty rights in various drug candidates being developed by Surface, Melt and Mayfield. The Company intends to continue to create, and hold equity and royalty rights in, new businesses that commercialize drug candidates that are internally developed or otherwise acquired or licensed from third parties.

Basis of Presentation

The Company has prepared the accompanying unaudited condensed consolidated financial statements in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and in accordance with the rules and regulations of the U.S. Securities and Exchange Commission. Accordingly, they do not include all of the information and footnotes required by GAAP for audited financial statements. In the opinion of management, all adjustments (consisting of only normal recurring adjustments) considered necessary for a fair presentation have been included. Operating results for the three and nine months ended September 30, 2020 are not necessarily indicative of the results that may be expected for the year ending December 31, 2020 or for any other period. For further information, refer to the Company’s audited consolidated financial statements and footnotes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019.

The accompanying unaudited condensed consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries, as well as Mayfield (79% majority controlled) and Stowe (70% majority controlled) each subsidiaries of Harrow as of September 30, 2020. The remaining 21% of Mayfield is owned by Elle Pharmaceutical, LLC (“Elle”), TGV-Health, LLC and its affiliated entities (collectively “TGV”) or other consultants. Mayfield was organized to develop women’s health-focused drug candidates. The remaining 30% of Stowe is owned by TGV. Stowe was organized to develop ophthalmic drug candidates. All inter-company accounts and transactions have been eliminated in consolidation.

Harrow consolidates entities in which it has a controlling financial interest. We consolidate subsidiaries in which we hold and/or control, directly or indirectly, more than 50% of the voting rights. All intercompany accounts and transactions have been eliminated in consolidation.

The condensed consolidated balance sheets at September 30, 2020 and December 31, 2019 and the condensed consolidated statements of operations, stockholders’ equity and cash flows for the periods ended September 30, 2020 and 2019 include our accounts and those of our wholly owned subsidiaries as well as Mayfield and Stowe.

Risks, Uncertainties and Liquidity

The Company is subject to risks and uncertainties as a result of the COVID-19 pandemic. On March 18, 2020, the Centers for Medicare & Medicaid Services (“CMS”) released guidance for U.S. healthcare providers to limit all elective medical procedures in order to conserve personal protective equipment and limit exposure to COVID-19 during the pendency of the pandemic. In addition to limiting elective medical procedures, many hospitals and other healthcare providers have strictly limited access to their facilities during the pandemic. The COVID-19 pandemic has negatively impacted the global economy, disrupted global supply chains and healthcare delivery, led to social distancing recommendations, stay-at-home orders and other restrictive measures, and created significant volatility in financial markets.

Many of the Company’s customers use its drugs in procedures impacted by the CMS guidance to limit elective procedures. In addition, the Company and our business partners need access to healthcare providers and facilities to conduct clinical trials and other activities required to achieve regulatory clearance of products under development.

The Company believes reductions in elective procedures in response to CMS guidance have had, and may in the future have, an adverse impact, which may be material, to the Company’s financial condition, liquidity and results of operations. The severity of the impact of the COVID-19 pandemic on the Company’s business will depend on a number of factors, including, but not limited to, the duration and severity of the pandemic and the extent and severity of the impact on its customers, all of which are uncertain and cannot be predicted. As of the date of filing of this Quarterly Report, the extent to which the COVID-19 pandemic may materially impact the Company’s financial condition, liquidity or results of operations is uncertain. For further information, refer to “Risk Factors” in Part II, Item 1A of this Quarterly Report and information in the Company’s other filings with the Securities and Exchange Commission.

During certain periods, including those impacted by the COVID-19 pandemic, the Company has incurred operating losses and negative cash flows from operations. The Company incurred operating losses of $2,241 and $5,721 for the nine months ended September 30, 2020 and 2019, respectively, and had an accumulated deficit of $78,549 and $74,043 as of September 30, 2020 and December 31, 2019, respectively. In addition, the Company used cash in operating activities of $534 and $702 for the nine months ended September 30, 2020 and 2019, respectively.

While there is no assurance, management of the Company believes existing cash resources and restricted cash of $5,727 at September 30, 2020 together with cash generated from revenues, will be sufficient to sustain the Company’s planned level of operations for at least the next twelve months. However, estimates of operating expenses, working capital requirements and the future impact of the COVID-19 pandemic on its business could be incorrect, and the Company could use its cash resources faster than anticipated. Further, some or all of the ongoing or planned activities may not be successful and could result in further losses.

The Company may seek to increase liquidity and capital resources through a variety of means which may include, but are not limited to: the sale of assets, investments and/or businesses; obtaining financing through the issuance of equity, debt, or convertible securities; and working to increase revenue growth through sales. There is no guarantee that the Company will be able to obtain capital when needed on terms management deems acceptable, or at all.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

9 Months Ended

Sep. 30, 2020

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The following represents an update for the three and nine months ended September 30, 2020 to the significant accounting policies described in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019.

Segments

The Company’s chief operating decision-maker is its Chief Executive Officer who makes resource allocation decisions and assesses performance based on financial information presented as operating segments. The Company has identified two operating segments as reportable segments. See Note 15 for more information regarding the Company’s reportable segments.

Noncontrolling Interests

The Company recognizes any noncontrolling interest as a separate line item in equity in the condensed consolidated financial statements. A noncontrolling interest represents the portion of equity ownership in a less-than-wholly owned subsidiary not attributable to the Company. Generally, any interest that holds less than 50% of the outstanding voting shares is deemed to be a noncontrolling interest; however, there are other factors, such as decision-making rights, that are considered as well. The Company includes the amount of net income (loss) attributable to noncontrolling interests in consolidated net income (loss) on the face of the condensed consolidated statements of operations.

The Company provides in the condensed consolidated statements of stockholders’ equity a reconciliation at the beginning and the end of the period of the carrying amount of total equity, equity attributable to the parent, and equity attributable to the noncontrolling interests that separately discloses:

	(1)	net income or loss;
	(2)	transactions with owners acting in their capacity as owners, showing separately contributions from and distributions to owners; and
	(3)	each component of other income or loss.

Basic and Diluted Net Income (Loss) per Common Share

Basic net income (loss) per common share is computed by dividing income (loss) attributable to common stockholders for the period by the weighted average number of common shares outstanding during the period. Diluted income (loss) per share is computed by dividing the income (loss) attributable to common stockholders for the period by the weighted average number of common and common equivalent shares, such as stock options, restricted stock units (“RSUs”) and warrants, outstanding during the period.

Basic and diluted net income (loss) per share is computed using the weighted average number of shares of common stock outstanding during the period. Common stock equivalents (using the treasury stock or “if converted” method) from stock options, unvested RSUs and warrants were 5,447,716 and 5,263,131 at September 30, 2020 and 2019, respectively, and, except for the three months ended September 30, 2020, are excluded from the calculation of diluted net income (loss) per share for the periods presented, because the effect is anti-dilutive. Included in the basic and diluted net income (loss) per share calculation were RSUs awarded to directors that had vested, but the issuance and delivery of the shares are deferred until the director resigns. The number of shares underlying vested RSUs at September 30, 2020 and 2019 was 281,507 and 314,588, respectively.

The following table shows the computation of basic net income (loss) per share of common stock for the three and nine months ended September 30, 2020 and 2019:

	2020		2019			2020			2019
	For the Three Months Ended					For the Nine Months Ended
	September 30,					September 30,
	2020		2019			2020			2019
Numerator – net income (loss) attributable to Harrow Health, Inc.	$	8,638	$	(11,469	)	$	(4,506	)	$	(2,489	)
Denominator – weighted average number of shares outstanding, basic		25,921,573		25,583,998			25,880,554			25,205,215
Net income (loss) per share, basic	$	0.33	$	(0.45	)	$	(0.17	)	$	(0.10	)

For the three months ended September 30, 2020, the Company had net income. As a result, the Company computed diluted net income per share using the weighted-average number of common shares and dilutive common equivalent shares outstanding during the period. Diluted common equivalent shares for the three months ended September 30, 2020, consisted of the following:

	For the Three months Ended
	September 30, 2020

Diluted shares related to:
Warrants		504,742
Stock options		663,745
Dilutive common equivalent shares		1,168,487

The following table shows the computation of diluted net income (loss) per share of common stock for the three and nine months ended September 30, 2020 and 2019:

	2020		2019			2020			2019
	For the Three Months Ended					For the Nine months Ended
	September 30,					September 30,
	2020		2019			2020			2019
Numerator – net income (loss) attributable to Harrow Health, Inc.	$	8,638	$	(11,469	)	$	(4,506	)	$	(2,489	)
Denominator – weighted average number of shares outstanding, basic		25,921,573		25,583,998			25,880,554			25,205,215
Dilutive common equivalent shares		1,168,487		-			-			-
Number of shares used for diluted earnings per share computation		27,090,060		25,583,998			25,880,554			25,205,215
Net income (loss) per share, diluted	$	0.32	$	(0.45	)	$	(0.17	)	$	(0.10	)

Investment in Eton Pharmaceuticals, Inc. – Related Party

The Company owns 3,500,000 shares of Eton common stock, which represents approximately 16.7% of the equity and voting interests of Eton as of September 30, 2020. At September 30, 2020 the fair market value of Eton’s common stock was $7.90 per share. In accordance with Accounting Standard’s Update (“ASU”) 2016-01, Financial Instruments-Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities, for the three and nine months ended September 30, 2020, the Company recorded an investment gain (loss) from its Eton common stock position of $8,575 and $2,450, respectively, related to the change in fair market value of the Company’s investment in Eton during the measurement periods. As of September 30, 2020, the fair market value of the Company’s investment in Eton was $27,650.

Mark Baum, the Company’s Chief Executive Officer, is a member of the board of directors of Eton.

Investment in Melt Pharmaceuticals, Inc. – Related Party

In April 2018, the Company formed Melt as a wholly owned subsidiary. In January and March of 2019, Melt entered into definitive stock purchase agreements (collectively, the “Melt Series A Preferred Stock Agreement”) with certain investors and closed on the sale of Melt’s Series A Preferred Stock (the “Melt Series A Stock”), totaling approximately $11,400 of proceeds (collectively, the “Melt Series A Round”) at a purchase price of $5.00 per share. As a result, the Company lost voting and ownership control of Melt and ceased consolidating Melt’s financial statements.

In January 2019, the Company deconsolidated Melt and recorded a gain of $5,810 and adjusted the carrying value in Melt to reflect the increased valuation of Melt and the Company’s new ownership interest in accordance with Accounting Standard Codification (“ASC”) 810-10-40-4(c), Consolidation.

The Company owns 3,500,000 common shares of Melt (which is approximately 44% of the equity interests as of September 30, 2020) and uses the equity method of accounting for this investment, as management has determined that the Company has the ability to exercise significant influence over the operating and financial decisions of Melt. Under this method, the Company recognizes earnings and losses in Melt in its condensed consolidated financial statements and adjusts the carrying amount of its investment in Melt accordingly. The Company’s share of earnings and losses are based on the Company’s ownership interest of Melt. Any intra-entity profits and losses are eliminated. The Company recorded equity in the net loss of Melt of $300 and $1,536 during the three and nine months ended September 30, 2020, respectively. The Company recorded equity in the net loss of Melt of $682 and $1,293 during the three and nine months ended September 30, 2019, respectively. As of September 30, 2020, the carrying value of the Company’s investment in Melt was $2,432.

See Note 4 for more information and related party disclosure regarding Melt.

Investment in Surface Ophthalmics, Inc. – Related Party

The Company owns 3,500,000 common shares (which is approximately 30% of the equity interests as of September 30, 2020) of Surface and uses the equity method of accounting for this investment, as management has determined that the Company has the ability to exercise significant influence over the operating and financial decisions of Surface. Under this method, the Company recognizes earnings and losses in Surface in its condensed consolidated financial statements and adjusts the carrying amount of its investment in Surface accordingly. The Company’s share of earnings and losses are based on the Company’s ownership interest of Surface. Any intra-entity profits and losses are eliminated. The Company recorded equity in the net loss of Surface of $756 and $1,694 during the three and nine months ended September 30, 2020, respectively. The Company recorded equity in the net loss of Surface of $400 and $904 during the three and nine months ended September 30, 2019, respectively. As of September 30, 2020, the carrying value of the Company’s investment in Surface was $2,053.

See Note 5 for more information and related party disclosure regarding Surface.

Recently Adopted Accounting Pronouncements

In June 2016, the FASB issued ASU 2016-13, Financial Instruments-Credit Losses: Measurement of Credit Losses on Financial Instruments, which requires the measurement and recognition of expected credit losses for financial assets held at amortized cost. ASU 2016-13 replaces the existing incurred loss impairment model with a forward-looking expected credit loss model which will result in earlier recognition of credit losses. The Company adopted ASU 2016-13 on January 1, 2020, and adoption of the standard did not have a material effect on the Company’s consolidated financial position, results of operations and cash flows.

In August 2018, the FASB issued ASU 2018-13, Changes to Disclosure Requirements for Fair Value Measurements, which improved the effectiveness of disclosure requirements for recurring and nonrecurring fair value measurements. The standard removes, modifies, and adds certain disclosure requirements. The Company adopted ASU 2018-13 on January 1, 2020, and adoption of the standard did not have a material effect on the Company’s consolidated financial position, results of operations and cash flows.

In January 2017, the FASB issued ASU 2017-04, Intangibles-Goodwill and Other. This guidance simplifies the accounting for goodwill impairment for all entities by requiring impairment charges to be based on the first step in the current two-step impairment test under ASC 350. The updated standard eliminates the requirement to calculate a goodwill impairment charge using Step 2. If a reporting unit’s carrying amount exceeds its fair value, an entity will record an impairment charge based on that difference. The impairment charge will be limited to the amount of goodwill allocated to that reporting unit. The Company adopted ASU 2017-04 on January 1, 2020, and adoption of the standard did not have a material effect on the Company’s consolidated financial position, results of operations and cash flows.

Recently Issued Accounting Pronouncements

In December 2019, the FASB issued ASU 2019-12, Simplifying the Accounting for Income Taxes, as part of its initiative to reduce complexity in accounting standards. The amendments in the ASU are effective for fiscal years beginning after December 15, 2020, including interim periods therein. Early adoption of the standard is permitted. The Company is currently assessing the impact of this standard and does not expect ASU 2019-12 to have a material impact on its consolidated financial position, results of operations and cash flows.

REVENUES

9 Months Ended

Sep. 30, 2020

Revenue from Contract with Customer [Abstract]

REVENUES

NOTE 3. REVENUES

The Company accounts for contracts with customers in accordance with ASC 606, Revenues from Contracts with Customers. The Company has two primary streams of revenues: (1) revenues recognized from our sale of products within our pharmacy services and (2) revenues recognized from intellectual property license and asset purchase agreements.

Product Revenues from Pharmacy Services

The Company sells prescription drugs directly through our pharmacy and outsourcing facility network. Revenues from our pharmacy services division includes: (i) the portion of the price the client pays directly to us, net of any volume-related or other discounts paid back to the client, (ii) the price paid to us by individuals, and (iii) customer copayments made directly to the pharmacy network. Sales taxes are not included in revenue. Following the core principle of ASC 606, we have identified the following:

	1.	Identify the contract(s) with a customer: A contract exists with a customer at the time the prescription or order is received by the Company.

	2.	Identify the performance obligations in the contract: The order received contains the performance obligations to be met, in almost all cases the product the customer is wishing to receive. If we are unable to be meet the performance obligation, the customer is notified.

	3.	Determine the transaction price: the transaction price is based on the product being sold to the customer, and any related customer discounts. These amounts are pre-determined and built into our order management software.

	4.	Allocate the transaction price to the performance obligations in the contract: The transaction price associated with the product(s) being ordered is allocated according to the pre-determined amounts.

	5.	Recognize revenue when (or as) the entity satisfies a performance obligation: At the time of shipment from the pharmacy or outsourcing facility, the performance obligation has been met.

The following revenue recognition policy has been established for the pharmacy services division:

Revenues generated from prescription or office use drugs sold by our pharmacies and outsourcing facility are recognized when the prescription is shipped. At the time of shipment, the pharmacy services division has performed substantially all of its obligations under its client contracts and does not experience a significant level of returns or reshipments. Determination of criteria (3) and (4) is based on management’s judgments regarding the fixed nature of the selling prices of the products delivered and the collectability of those amounts. The Company records reductions to revenue for discounts at the time of the initial sale. Estimated returns and allowances and other adjustments are provided for in the same period during which the related sales are recorded and are based on actual returns history. The rate of returns is analyzed annually to determine historical returns experience. If the historical data we use to calculate these estimates do not properly reflect future returns, then a change in the allowance would be made in the period in which such a determination is made and revenues in that period could be materially affected. The Company will defer any revenues received for a product that has not been delivered or is subject to refund until such time that the Company and the customer jointly determine that the product has been delivered and no refund will be required.

Commission Revenues

During the third quarter of 2020, the Company entered into an agreement whereby it is paid a fee calculated based on sales it generates from a pharmaceutical product that is owned by a third party. The revenue earned from this arrangement is recognized at the time a customer has ordered the pharmaceutical product and it has shipped from the third party (or one of its distributors or affiliates), at which point there is no future performance obligation required by the Company and no consequential continuing involvement on the part of the Company to recognize the associated revenue.

Intellectual Property License Revenues

The Company currently holds five intellectual property license and related agreements in which the Company has sold or granted a license which provides a customer with the right to access the Company’s intellectual property. License arrangements may include or require non-refundable upfront license fees, data transfer fees, research reimbursement payments, exclusive license rights to patented or patent pending compounds, technology access fees, and various performance or sales milestones. These arrangements can be multiple-element arrangements, the revenue of which is recognized at the point of time the performance obligation is met.

Non-refundable fees that are not contingent on any future performance by the Company and require no consequential continuing involvement on the part of the Company are recognized as revenue when the license term commences and the licensed data, technology, compounded drug preparation and/or other deliverable is delivered. Such deliverables may include physical quantities of compounded drug preparations, design of the compounded drug preparations and structure-activity relationships, the conceptual framework and mechanism of action, and rights to the patents or patent applications for such compounded drug preparations. The Company defers recognition of non-refundable fees if it has continuing performance obligations without which the technology, right, product or service conveyed in conjunction with the non-refundable fee has no utility to the licensee and that are separate and independent of the Company’s performance under the other elements of the arrangement. In addition, if the Company’s continued involvement is required, through research and development services that are related to its proprietary know-how and expertise of the delivered technology or can only be performed by the Company, then such non-refundable fees are deferred and recognized over the period of continuing involvement. Guaranteed minimum annual royalties are recognized on a straight-line basis over the applicable term.

Revenue disaggregated by revenue source for the three and nine months ended September 30, 2020 and 2019, consists of the following:

SCHEDULE OF DISAGGREGATED REVENUE

	For the Three Months Ended				For the Nine months Ended
	September 30,				September 30,
	2020		2019		2020		2019
Product sales, net	$	14,385	$	12,748	$	34,244	$	38,540
Commissions		7		-		7		-
License		7		7		25		21
Total revenues	$	14,399	$	12,755	$	34,276	$	38,561

Deferred revenue and customer deposits at September 30, 2020 and December 31, 2019, was $63 and $57, respectively. All deferred revenue and customer deposit amounts at December 31, 2019 were recognized as revenue during the nine months ended September 30, 2020.

The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts.

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
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Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 10
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130551-203045

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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-SubTopic 10
-Section 50
-Paragraph 13
-Subparagraph (b)(2)
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Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
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-Section 50
-Paragraph 9
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Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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-Paragraph 12
-Subparagraph (e)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (d)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 15
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130558-203045

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (c)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045

Investments, Debt and Equity Securities [Abstract]

INVESTMENT IN MELT PHARMACEUTICALS, INC. AND AGREEMENTS - RELATED PARTY TRANSACTIONS

9 Months Ended

Sep. 30, 2020

INVESTMENT IN MELT PHARMACEUTICALS, INC. AND AGREEMENTS - RELATED PARTY TRANSACTIONS

NOTE 4. INVESTMENT IN MELT PHARMACEUTICALS, INC. AND AGREEMENTS - RELATED PARTY TRANSACTIONS

In December 2018, the Company entered into an asset purchase agreement with Melt (the “Melt Asset Purchase Agreement”). Pursuant to the terms of the Melt Asset Purchase Agreement, Melt was assigned certain intellectual property and related rights from the Company to develop, formulate, make, sell, and sub-license certain Company conscious sedation and analgesia related formulations (collectively, the “Melt Products”). Under the terms of the Melt Asset Purchase Agreement, Melt is required to make royalty payments to the Company up to 5% of net sales of the Melt Products while any patent rights remain outstanding, as well as other conditions. In January and March 2019, the Company entered into the Melt Series A Preferred Stock Agreement.

In February 2019, the Company and Melt entered into a Management Services Agreement (the “Melt MSA”), whereby the Company provides to Melt certain administrative services and support, including bookkeeping, web services and human resources related activities, and Melt pays the Company a monthly amount of $10.

As of September 30, 2020, the Company was due $815 from Melt for reimbursable expenses and amounts due under the Melt MSA and are included in prepaid expenses and other current assets on the accompanying condensed consolidated balance sheets. During the three and nine months ended September 30, 2020, Melt did not make any payments to the Company.

The Company’s Chief Executive Officer, Mark L. Baum, and Chief Medical Officer, Larry Dillaha, are members of the Melt board of directors.

The unaudited condensed results of operations information of Melt is summarized below:

SCHEDULE OF CONDENSED INCOME STATEMENT

	For the
	Nine Months Ended
	September 30, 2020
Revenues, net	$	-
Loss from operations		3,261
Net loss	$	(3,261	)

The unaudited condensed balance sheet information of Melt is summarized below:

SCHEDULE OF CONDENSED BALANCE SHEET

	September 30,
	2020
Current assets	$	4,072
Non current assets		12
Total assets	$	4,084

Total liabilities	$	1,452
Total preferred stock and stockholders’ equity		2,632
Total liabilities and stockholders’ equity	$	4,084

INVESTMENT IN SURFACE OPHTHALMICS, INC. AND AGREEMENTS - RELATED PARTY TRANSACTIONS

9 Months Ended

Sep. 30, 2020

Investment In Surface Ophthalmics Inc. And Agreements - Related Party Transactions

INVESTMENT IN SURFACE OPHTHALMICS, INC. AND AGREEMENTS - RELATED PARTY TRANSACTIONS

NOTE 5. INVESTMENT IN SURFACE OPHTHALMICS, INC. AND AGREEMENTS - RELATED PARTY TRANSACTIONS

The Company entered into an asset purchase and license agreement with Surface in 2017, and amended it in April 2018 (the “Surface License Agreements”). Pursuant to the terms of the Surface License Agreements, the Company assigned and licensed to Surface certain intellectual property and related rights to develop, formulate, make, sell, and sub-license ophthalmic formulations (collectively, the “Surface Products”). Surface is required to make royalty payments to the Company of 4%-6% of net sales of the Surface Products while any patent rights remain outstanding.

A Company director, Richard L. Lindstrom, and the Company’s Chief Executive Officer, Mark L. Baum, are directors of Surface. Surface is required to make royalty payments to Dr. Lindstrom of 3% of net sales of certain Surface Products while certain patent rights remain outstanding. Dr. Lindstrom is also a principal of Flying L Partners, an affiliate of the funding investor who purchased the Surface Series A Preferred Stock.

The unaudited condensed results of operations information of Surface is summarized below:

SUMMARY OF CONDENSED INCOME STATEMENT

	For the
	Nine Months Ended
	September 30, 2020
Revenues, net	$	-
Loss from operations		5,647
Net loss	$	(5,647	)

The unaudited condensed balance sheet information of Surface is summarized below:

SUMMARY OF CONDENSED BALANCE SHEET

	September 30,
	2020
Current assets	$	11,547
Non current assets		45
Total assets	$	11,592

Total liabilities	$	1,754
Total stockholders’ equity		9,838
Total liabilities and stockholders’ equity	$	11,592

INVENTORIES

9 Months Ended

Sep. 30, 2020

Inventory Disclosure [Abstract]

INVENTORIES

NOTE 6. INVENTORIES

Inventories are comprised of finished compounded formulations, over-the-counter and prescription retail pharmacy products, commercial pharmaceutical products, related laboratory supplies and active pharmaceutical ingredients. The composition of inventories as of September 30, 2020 and December 31, 2019 was as follows:

SCHEDULE OF INVENTORIES

	2020		2019
	September 30,		December 31,
	2020		2019
Raw materials	$	2,838	$	2,405
Work in progress		4		20
Finished goods		1,132		876
Total inventories	$	3,974	$	3,301

PREPAID EXPENSES AND OTHER CURRENT ASSETS

9 Months Ended

Sep. 30, 2020

Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]

PREPAID EXPENSES AND OTHER CURRENT ASSETS

NOTE 7. PREPAID EXPENSES AND OTHER CURRENT ASSETS

Prepaid expenses and other current assets consisted of the following:

	September 30,		December 31,
	2020		2019
Prepaid insurance	$	149	$	123
Other prepaid expenses		378		358
Receivable due from Melt		815		722
Deposits and other current assets		89		105
Total prepaid expenses and other current assets	$	1,431	$	1,308

PROPERTY, PLANT AND EQUIPMENT

9 Months Ended

Sep. 30, 2020

Property, Plant and Equipment [Abstract]

PROPERTY, PLANT AND EQUIPMENT

NOTE 8. PROPERTY, PLANT AND EQUIPMENT

Property, plant and equipment, net consisted of the following:

	2020			2019
	September 30,			December 31,
	2020			2019
Property, plant and equipment, net:
Computer software and hardware	$	1,902		$	1,732
Furniture and equipment		463			363
Lab and pharmacy equipment		3,464			3,164
Leasehold improvements		5,720			5,510
Property, plant and equipment, gross		11,549			10,769
Accumulated depreciation and amortization		(6,776	)		(5,394	)
	$	4,773		$	5,375

For the three and nine months ended September 30, 2020, depreciation and amortization related to the property, plant and equipment was $464 and $1,377, respectively. For the three and nine months ended September 30, 2019, depreciation related to the property, plant and equipment was $397 and $1,365, respectively. During the three and nine months ended September 30, 2019, the Company impaired $445 of property, plant and equipment related to the Park Restructuring.

INTANGIBLE ASSETS AND GOODWILL

9 Months Ended

Sep. 30, 2020

Goodwill and Intangible Assets Disclosure [Abstract]

INTANGIBLE ASSETS AND GOODWILL

NOTE 9. INTANGIBLE ASSETS AND GOODWILL

The Company’s intangible assets at September 30, 2020 consisted of the following:

SCHEDULE OF INTANGIBLE ASSETS

	Amortization
	periods			Accumulated						Net
	(in years)	Cost		amortization			Impairment			Carrying value
Patents	17-19 years	$	911	$	(86	)	$	(363	)	$	462
Licenses	20 years		50		(6	)		-			44
Trademarks	Indefinite		353		-			-			353
Customer relationships	3-15 years		1,519		(421	)		-			1,098
Trade name	5 years		5		(5	)		-			-
Non-competition clause	3-4 years		50		(50	)		-			-
State pharmacy licenses	25 years		8		(7	)		-			1
		$	2,896	$	(575	)	$	(363	)	$	1,958

During the nine months ended September 30, 2020, the Company recorded impairment charges of $363 related to patent filings associated with products that the Company was no longer actively selling.

Amortization expense for intangible assets for the three and nine months ended September 30, 2020 and 2019 was as follows:

	For the				For the
	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2020		2019		2020		2019
Patents	$	6	$	22	$	25	$	37
Licenses		-		-		1		5
Customer relationships		33		26		101		128
Trade name		-		1		-		1
State pharmacy licenses		-		3		-		4
	$	39	$	52	$	127	$	175

Estimated future amortization expense for the Company’s intangible assets at September 30, 2020 is as follows:

		2020
Remainder of 2020	$	47
2021		173
2022		173
2023		173
2024		146
Thereafter		893
Intangible assets	$	1,605

There have been no changes in the carrying value of the Company’s goodwill during the three and nine months ended September 30, 2020.

ACCOUNTS PAYABLE AND ACCRUED EXPENSES

9 Months Ended

Sep. 30, 2020

Payables and Accruals [Abstract]

ACCOUNTS PAYABLE AND ACCRUED EXPENSES

NOTE 10. ACCOUNTS PAYABLE AND ACCRUED EXPENSES

Accounts payable and accrued expenses consisted of the following:

	2020			2019
	September 30,			December 31,
	2020			2019
Accounts payable	$	5,511		$	7,409
Other accrued expenses		-			49
Accrued interest		180			244
Accrued exit fee for note payable		800			800
Total accounts payable and accrued expenses		6,491			8,502
Less: Current portion		(5,691	)		(7,702	)
Non-current total accrued expenses	$	800		$	800

DEBT

9 Months Ended

Sep. 30, 2020

Debt Disclosure [Abstract]

DEBT

NOTE 11. DEBT

In July 2017, the Company entered into a term loan and security agreement in the principal amount of $16,000 (the “SWK Loan Agreement” or “SWK Loan”) with SWK Funding LLC and its partners (collectively, “SWK”), as lender and collateral agent. The SWK Loan Agreement was fully funded at closing with a five-year term; however, such term could be reduced to four years if certain revenue requirements are not achieved. The SWK Loan is secured by substantially all of the Company’s assets, including its intellectual property rights. The SWK Loan was subsequently amended in May 2019 and again in April 2020 (see below). The SWK Loan bears an interest rate that is equal to the three-month London Inter-Bank Offered Rate (subject to a minimum of 2.00%), plus an applicable margin of 10.00% (the “Margin Rate”); provided that, if, two days prior to a payment date, the Company provides SWK evidence that the Company has achieved a leverage ratio as of such date of less than 4.00:1:00, the Margin Rate shall equal 9.00%; and if the Company has achieved a leverage ratio as of such date of less than 3.00:1:00, the Margin Rate shall equal 7.00%. The leverage ratio means, as of any date of determination, the ratio of: (a) indebtedness as of such date to (b) EBITDA (as defined in the SWK Loan), of the Company for the immediately preceding 12 month period, adding-back (i) actual litigation expenses for the immediately preceding 12 month period, minus (ii) actual litigation expenses for the immediately preceding 3 month period multiplied by 4.

Second Amendment to SWK Loan

On April 1, 2020, the Company and several of its wholly owned subsidiaries entered into a second amendment (the “SWK Amendment”) to the SWK Loan, with SWK. A summary of the material changes contained in the SWK Amendment are as follows:

	●	SWK agreed to make available to the Company, and the Company drew down on, an additional principal amount of $1,000;

	●	The definition of the first amortization date was changed to August 14, 2020, permitting the Company to pay interest only on the principal amount loaned for the next payment (payments are due on a quarterly basis) following the SWK Amendment; and

	●	The interest payment due May 14, 2020 will be paid in kind by increasing the principal amount of the term loans by an amount equal to the interest accrued as of such date.

Paycheck Protection Program Loan

In April 2020, the Company entered into an unsecured promissory note and related Business Loan Agreement with Renasant Bank, as lender, for a loan (the “PPP Loan”) in the principal amount of $1,967 and received cash proceeds of the same amount, pursuant to the Paycheck Protection Program (the “PPP”) under the Federal Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”), which was enacted March 27, 2020. The PPP is administered by the U.S. Small Business Administration.

Under the terms of the PPP Loan, interest accrues on the outstanding principal at the rate of 1.0% per annum. The term of the PPP Loan is two years, unless sooner required in connection with an event of default under the PPP Loan. To the extent the PPP Loan amount is not forgiven under the PPP, the Company is obligated to make equal monthly payments of principal and interest, beginning seven months from the date of the PPP Loan, until the maturity date.

The CARES Act and the PPP provide a mechanism for forgiveness of up to the full amount borrowed. Under the PPP, the Company may apply for and be granted forgiveness for all or part of the PPP Loan. The amount of loan proceeds eligible for forgiveness is based on a formula that takes into account a number of factors, including the amount of loan proceeds used by the Company during the eight-week period after the loan origination for certain purposes including payroll costs, interest on certain mortgage obligations, rent payments on certain leases, and certain qualified utility payments (it being anticipated that at least 75% of the loan amount will be required to be used for eligible payroll costs); the employer maintaining or rehiring employees and maintaining salaries at certain levels; and other factors. Subject to the other requirements and limitations on loan forgiveness, only loan proceeds spent on payroll and other eligible expenses during the covered eight-week period will qualify for forgiveness. While the Company has used proceeds from the PPP Loan for such qualifying expenses, in particular maintaining continuity of its payroll and workforce (including staff critical to the timely production and dispensing of medicines the Company produces), no assurance can be provided that the Company will apply for and subsequently obtain forgiveness of the PPP Loan in whole or in part.

At September 30, 2020, future minimum payments under the Company’s debt agreements were as follows:

SUMMARY OF FUTURE MINIMUM PAYMENTS

	2020
	Amount
Remainder of 2020	$	1,299
2021		5,430
2022		4,437
2023		9,669
Total minimum payments		20,835
Less: amount representing estimated interest		(3,020	)
Loans payable, gross		17,815
Less: unamortized discount		(905	)
Notes payable		16,910
Less: current portion, net of unamortized discount		(3,750	)
Loans payable, net of current portion and unamortized debt discount	$	13,160

For the three and nine months ended September 30, 2020, debt discount amortization related to the SWK loan payable was $111 and $354, respectively. For the three and nine months ended September 30, 2019, debt discount amortization related to the SWK loan payable was $127 and $377, respectively.

LEASES

9 Months Ended

Sep. 30, 2020

Leases [Abstract]

LEASES

NOTE 12. LEASES

The Company’s leases of office and laboratory space under the non-cancelable operating leases listed below. These lease agreements have remaining lease terms between one to four years and contain various clauses for renewal at our option.

	●	An operating lease for 10,200 square feet of office space in San Diego, California that expires in December 2021, with an option to extend the term for a five-year period;

	●	An operating lease for 26,400 square feet of lab, warehouse and office space in Ledgewood, New Jersey, that expires in July 2026, with an option to extend the term for two additional five-year periods. This includes an amendment that was made effective July 2020 that extended the term of the original lease and added 1,400 of additional square footage to the lease; and

	●	An operating lease for 5,500 square feet of office space in Nashville, Tennessee, that expires in December 2024, with an option to extend the term for two additional five-year periods.

During the three months ended September 30, 2020, the Company terminated its operating lease for 4,500 square feet of office and lab space in Irvine, California that had an expiration date in December 2020. In connection with the termination, the Company recorded a gain of $4 which was recognized in other income (expense) on the condensed consolidated financial statements.

At September 30, 2020, the weighted average incremental borrowing rate and the weighted average remaining lease term for the operating leases held by the Company were 6.33% and 11.38 years, respectively.

During the three and nine months ended September 30, 2020, cash paid for amounts included for the operating lease liabilities was $258 and $805, respectively, and the Company recorded operating lease expense of $261 and $816, respectively, included in selling, general and administrative expenses.

Future lease payments under operating leases as of September 30, 2020 were as follows:

2020

Operating Leases

Remainder of 2020 $ 250

2021 1,017

2022 1,038

2023 1,064

2024 1,090

Thereafter 6,056

Total minimum lease payments 10,515

Less: amount representing interest payments (3,156 )

Total operating lease liabilities 7,359

Less: current portion, operating lease liabilities (579 )

Operating lease liabilities, net of current portion $ 6,780

The Company also has a finance lease that is included in its lease accounting but is not considered significant.

Future lease payments under finance leases as of September 30, 2020 were as follows:

2020

Finance Leases

Remainder of 2020 $ 2

2021 9

2022 9

2023 9

2024 1

Total minimum lease payments 30

Less: amount representing interest payments (3 )

Present value of future minimum lease payments 27

Less: current portion, finance lease obligation (7 )

Finance lease obligation, net of current portion $ 20

At September 30, 2020, the incremental borrowing rate and the remaining lease term for the finance lease held by the Company were 6.36% and 3.33 years, respectively.

For the three and nine months ended September 30, 2020, depreciation expense related to the equipment held under the finance lease obligation was $2 and $6, respectively.

For the three and nine months ended September 30, 2020, cash paid and expense recognized for interest expense related to the finance lease obligation was $0 and $1, respectively.

STOCKHOLDERS’ EQUITY AND STOCK-BASED COMPENSATION

9 Months Ended

Sep. 30, 2020

Equity [Abstract]

STOCKHOLDERS’ EQUITY AND STOCK-BASED COMPENSATION

NOTE 13. STOCKHOLDERS’ EQUITY AND STOCK-BASED COMPENSATION

Common Stock

In May 2020, the Company issued 30,000 shares of its restricted common stock, with a fair value of $167, as consideration for commission expenses incurred during the year ended December 31, 2019 and the nine months ended September 30, 2020.

During the nine months ended September 30, 2020, the Company issued 253 shares of its common stock upon the cashless exercise of 750 options to purchase common stock, with an exercise price of $3.04 per share, net of 69 shares of common stock withheld for payroll tax withholdings.

During the nine months ended September 30, 2020, the Company issued 2,998 shares of its common stock upon the exercise of 2,998 options to purchase common stock, with exercise prices ranging from $3.04 to $3.20 per share, and paid $8 related to payroll tax withholdings.

During the nine months ended September 30, 2020, the Company issued 91,987 shares of its common stock underlying RSUs held by a director that resigned. The RSUs had previously vested, including 2,429 RSUs during the nine months ended September 30, 2020, but the issuance and delivery of the shares were deferred until the director resigned.

During the nine months ended September 30, 2020, 46,762 shares of the Company’s common stock underlying RSUs issued to directors vested, but the issuance and delivery of these shares are deferred until the resignation of a director.

Stock Option Plan

On September 17, 2007, the Company’s Board of Directors and stockholders adopted the Company’s 2007 Incentive Stock and Awards Plan, which was subsequently amended on November 5, 2008, February 26, 2012, July 18, 2012, May 2, 2013 and September 27, 2013 (as amended, the “2007 Plan”). The 2007 Plan reached its term in September 2017, and we can no longer issue additional awards under this plan, however, options previously issued under the 2007 Plan will remain outstanding until they are exercised, reach their maturity or are otherwise cancelled/forfeited. On June 13, 2017, the Company’s Board of Directors and stockholders adopted the Company’s 2017 Incentive Stock and Awards Plan (the “2017 Plan” together with the 2007 Plan, the “Plans”). As of September 30, 2020, the 2017 Plan provides for the issuance of a maximum of 2,000,000 shares of the Company’s common stock. The purpose of the Plans are to attract and retain directors, officers, consultants, advisors and employees whose services are considered valuable, to encourage a sense of proprietorship and to stimulate an active interest of such persons in the Company’s development and financial success. Under the Plans, the Company is authorized to issue incentive stock options intended to qualify under Section 422 of the Internal Revenue Code, non-qualified stock options, restricted stock units and restricted stock. The Plans are administered by the Compensation Committee of the Company’s Board of Directors. The Company had 342,882 shares available for future issuances under the 2017 Plan at September 30, 2020.

Stock Options

A summary of stock option activity under the Plans for the nine months ended September 30, 2020 is as follows:

SCHEDULE OF STOCK OPTION PLAN ACTIVITY

	Number of shares			Weighted Avg. Exercise Price		Weighted Avg. Remaining Contractual Life		Aggregate Intrinsic Value
Options outstanding - January 1, 2020		2,656,683		$	5.30
Options granted		414,500		$	6.44
Options exercised		(3,748	)	$	3.06
Options cancelled/forfeited		(14,369	)	$	17.42
Options outstanding - September 30, 2020		3,053,066		$	5.41		5.97	$	3,608
Options exercisable – September 30, 2020		1,855,150		$	4.45		5.38	$	3,294
Options vested and expected to vest – September 30, 2020		2,940,527		$	5.34		5.93	$	3,605

The aggregate intrinsic value in the table above represents the total pre-tax amount of the proceeds, net of exercise price, which would have been received by option holders if all option holders had exercised and immediately sold all options with an exercise price lower than the market price on September 30, 2020, based on the closing price of the Company’s common stock of $5.59 on that date.

During the nine months ended September 30, 2020, the Company granted stock options to certain employees and a consultant. The stock options were granted with an exercise price equal to the current market price of the Company’s common stock, as reported by the securities exchange on which the common stock was then listed, at the grant date and have contractual terms of 10 years. Vesting terms for options granted to employees and consultants during the nine months ended September 30, 2020 generally included one of the following vesting schedules: 25% of the shares subject to the option vest and become exercisable on the first anniversary of the grant date and the remaining 75% of the shares subject to the option vest and become exercisable quarterly in equal installments thereafter over three years; and 100% of the shares subject to the option vest on a quarterly basis in equal installments over three years. Certain option awards provide for accelerated vesting if there is a change in control (as defined in the Plans) and in the event of certain modifications to the option award agreement.

On July 31, 2015, the Company granted to its Chief Executive Officer, Mark Baum, an option (the “Baum Performance Option”) to purchase 600,000 shares of the Company’s common stock at an exercise price of $7.87 per share under the 2007 Plan subject to the satisfaction of certain market-based vesting criteria. The market-based vesting criteria are separated into five tranches and require that the Company achieve and maintain certain average stock price targets ranging from $9 per share to $15 per share during the five year period following the grant date. On June 4, 2020, the Company amended the Baum Performance Option, to extend the vesting and contractual term by 5 years. The Company treated this amendment as a modification to the Baum Performance Option for accounting purposes. The fair value of the modification was $1,876 using a Monte Carlo Simulation with a five year life, 70% volatility and a risk-free interest rate of 0.40%.

With the exception of the Baum Performance Option, the fair value of each option award is estimated on the date of grant using the Black-Scholes-Merton option pricing model. The expected term of options granted to employees and directors was determined in accordance with the “simplified approach,” as the Company has limited, relevant, historical data on employee exercises and post-vesting employment termination behavior. The expected risk-free interest rate is based on the U.S. Treasury yield for a period consistent with the expected term of the option in effect at the time of the grant. The financial statement effect of forfeitures is estimated at the time of grant and revised, if necessary, if the actual effect differs from those estimates. For option grants to employees and directors, the Company assigns a forfeiture rate of 10%. These factors could change in the future, which would affect the determination of stock-based compensation expense in future periods. Utilizing these assumptions, the fair value is determined at the date of grant.

The table below illustrates the fair value per share determined by the Black-Scholes-Merton option pricing model with the following assumptions used for valuing options granted to employees:

SCHEDULE OF FAIR VALUE ASSUMPTIONS

	2020
Weighted-average fair value of options granted	$	3.86
Expected terms (in years)		0.5 – 6.11
Expected volatility		66.5% - 71.4%
Risk-free interest rate		0.34% - 1.64%
Dividend yield		-

The following table summarizes information about stock options outstanding and exercisable at September 30, 2020:

	Options Outstanding				Options Exercisable
		Weighted
		Average		Weighted			Weighted
		Remaining		Average			Average
	Number	Contractual		Exercise	Number		Exercise
Range of Exercise Prices	Outstanding	Life in Years		Price	Exercisable		Price
$1.47 - $2.60	778,690	5.90	$	2.05	728,938	$	2.07
$2.76 - $4.66	531,785	5.95	$	3.98	453,157	$	3.98
$5.49 - $6.36	496,350	7.47	$	6.10	263,814	$	6.12
$6.64 - $8.99	1,246,241	5.42	$	7.85	409,241	$	8.13
$1.47 - $8.99	3,053,066	5.97	$	5.41	1,855,150	$	4.45

As of September 30, 2020, there was approximately $6,021 of total unrecognized compensation expense related to unvested stock options granted under the Plans. That expense is expected to be recognized over the weighted-average remaining vesting period of 4.03 years. The stock-based compensation expense for all stock options was $559 and $1,094 during the three and nine months ended September 30, 2020, respectively.

Restricted Stock Units

RSU awards are granted subject to certain vesting requirements and other restrictions, including performance and market-based vesting criteria. The grant date fair value of the RSUs, which has been determined based upon the market value of the Company’s common stock on the grant date, is expensed over the vesting period of the RSUs.

During the nine months ended September 30, 2020, the Company’s board of directors were granted 68,024 RSUs with a fair market value $400 which vest on a quarterly basis, over one year in equal installments.

During the nine months ended September 30, 2020, the Company granted 10,000 RSUs to a new member of its board of directors, with a fair market value of $39 which vest on the one-year anniversary of the grant date.

During the three and nine months ended September 30, 2020, the Company granted 12,500 RSUs to a new member of its board of directors, with a fair market value of $72 which vest on the one-year anniversary of the grant date.

During the nine months ended September 30, 2020, 161,000 RSUs with a fair market value of $1,025 were issued to certain employees; the RSUs vest in full on the third anniversary of the grant date.

A summary of the Company’s RSU activity and related information for the nine months ended September 30, 2020 is as follows:

	Number of RSUs			Weighted Average Grant Date Fair Value
RSUs unvested - January 1, 2020		1,411,930		$	2.76
RSUs granted		251,524		$	6.11
RSUs vested		(49,190	)	$	6.61
RSUs cancelled/forfeited		-
RSUs unvested at September 30, 2020		1,614,264		$	3.16

As of September 30, 2020, the total unrecognized compensation expense related to unvested RSUs was approximately $1,610, which is expected to be recognized over a weighted-average period of 0.42 years, based on estimated and actual vesting schedules of the applicable RSUs. The stock-based compensation for RSUs during the three and nine months ended September 30, 2020 was $357 and $884, respectively.

Warrants

From time to time, the Company issues warrants to purchase shares of the Company’s common stock to investors, lenders, underwriters and other non-employees for services rendered or to be rendered in the future, or pursuant to settlement agreements.

A summary of warrant activity for the nine months ended September 30, 2020 is as follows:

SCHEDULE OF WARRANTS ACTIVITY

	Number of Shares Subject to Warrants Outstanding		Weighted Avg. Exercise Price

Warrants outstanding - January 1, 2020		780,386	$	2.12
Granted		-
Exercised		-
Expired		-
Warrants outstanding and exercisable - September 30, 2020		780,386	$	2.12
Weighted average remaining contractual life of the outstanding warrants in years - September 30, 2020		3.78

Warrants outstanding and exercisable as of September 30, 2020 are as follows:

		Warrants		Exercise		Expiration
Warrant Series	Issue Date	Outstanding		Price		Date
Lender warrants	5/11/2015		125,000	$	1.79		5/11/2025
Settlement warrants	8/16/2016		40,000	$	3.75		8/16/2021
Lender warrants	7/19/2017		615,386	$	2.08		7/19/2024
			780,386	$	2.12

Subsidiary Stock-Based Transactions

Mayfield Pharmaceuticals, Inc.

During the nine months ended September 30, 2020, Mayfield repurchased 650,000 shares of its common stock from Elle, for an aggregate purchase price of $1.

During the nine months ended September 30, 2020, Mayfield issued 475,000 shares of its restricted common stock, with a fair value of $11, that vest upon various performance-based milestones and over a four-year service period to Mayfield’s Chief Executive Officer candidate. During the nine months ended September 30, 2020, the Company recognized $17 in stock-based compensation tied to the Mayfield stock options.

During the nine months ended September 30, 2020, 500,000 shares of Mayfield’s restricted common stock were forfeited by a consultant.

Stock-Based Compensation Summary

The Company recorded stock-based compensation related to equity instruments granted to employees, directors and consultants as follows:

	For the				For the
	Three Months Ended				Nine Months Ended
	September 30, 2020		September 30, 2019		September 30, 2020		September 30, 2019
Employees - selling, general and administrative	$	740	$	252	$	1,612	$	1,158
Directors - selling, general and administrative		177		75		370		225
Consultants - selling, general and administrative		-		76		96		175
Total	$	917	$	403	$	2,078	$	1,558

COMMITMENTS AND CONTINGENCIES

9 Months Ended

Sep. 30, 2020

Commitments and Contingencies Disclosure [Abstract]

COMMITMENTS AND CONTINGENCIES

NOTE 14. COMMITMENTS AND CONTINGENCIES

Novel Drug Solutions et al.

In April 2018, Novel Drug Solutions, LLC and Eyecare Northwest, PA (collectively “NDS”) filed a lawsuit against the Company in the U.S. District Court of Delaware asserting claims for breach of contract. The claims stem from an asset purchase agreement between the Company and NDS entered into in 2013. In July 2019, NDS filed a second amended complaint which added a claim related to its purported termination of the APA. In October 2019, NDS voluntarily dismissed all claims related to breach of contract, leaving only claims related to the scope of the post-termination obligations to be litigated. On October 29, 2020, at a hearing on the various dispositive motions before it, the Court found that there were triable issues of fact and reopened discovery for limited purposes. NDS is seeking unspecified damages, interest, attorney’s fees and other costs. The Company believes the claims are meritless and has previously and will continue to dispute all claims asserted against it and intends to vigorously defend against these allegations. Nonetheless, the Company cannot predict the eventual outcome of this litigation and it could result in substantial costs, losses and a diversion of management’s resources and attention, which could harm the Company’s business and the value of its common stock.

Product and Professional Liability

Product and professional liability litigation represents an inherent risk to all firms in the pharmaceutical and pharmacy industry. We utilize traditional third-party insurance policies with regard to our product and professional liability claims. Such insurance coverage at any given time reflects current market conditions, including cost and availability, when the policy is written.

John Erick et al.

In January 2018, John Erick and Deborah Ferrell, successors-in-interest and heirs of Jade Erick, (collectively “Erick”) filed a lawsuit in the San Diego County Superior against Kim Kelly, ND, MPH asserting claims related to the death of Jade Erick. In April 2018, Erick filed an amendment to the lawsuit, naming the Company as a co-defendant. In September 2018, co-defendant Dr. Kelly filed a cross-complaint against the Company and various entities affiliated with Spectrum Laboratory Products, Inc., Spectrum Chemical Manufacturing Corp. and Spectrum Pharmacy Products, Inc. (collectively “Spectrum”). The cross-complaint seeks indemnity and contribution from the Company and Spectrum. The Company answered the claims filed by Dr. Kelly in October 2018. The case is currently in the discovery phase and the Company’s motion for summary adjudication is pending before the Court. Erick is seeking unspecified damages, interest, attorney’s fees and other costs. The Company believes the claims are meritless and has previously and will continue to dispute all claims asserted against it and intends to vigorously defend against these allegations. Nonetheless, the Company cannot predict the eventual outcome of this litigation, it could result in substantial costs, losses and a diversion of management’s resources and attention, which could harm the Company’s business and the value of its common stock.

General and Other

In the ordinary course of business, the Company may face various claims brought by third parties and it may, from time to time, make claims or take legal actions to assert its rights, including intellectual property disputes, contractual disputes and other commercial disputes. Any of these claims could subject the Company to litigation.

Indemnities

In addition to the indemnification provisions contained in the Company’s governing documents, the Company generally enters into separate indemnification agreements with each of the Company’s directors and officers. These agreements require the Company, among other things, to indemnify the director or officer against specified expenses and liabilities, such as attorneys’ fees, judgments, fines and settlements, paid by the individual in connection with any action, suit or proceeding arising out of the individual’s status or service as the Company’s director or officer, other than liabilities arising from willful misconduct or conduct that is knowingly fraudulent or deliberately dishonest, and to advance expenses incurred by the individual in connection with any proceeding against the individual with respect to which the individual may be entitled to indemnification by the Company. The Company also indemnifies its lessors in connection with its facility leases for certain claims arising from the use of the facilities. These indemnities do not provide for any limitation of the maximum potential future payments the Company could be obligated to make. Historically, the Company has not incurred any payments for these obligations and, therefore, no liabilities have been recorded for these indemnities in the accompanying condensed consolidated balance sheets.

Klarity License Agreement – Related Party

The Company entered into a license agreement in April 2017 and as amended in April 2018, (the “Klarity License Agreement”) with Richard L. Lindstrom, M.D., a member of its Board of Directors. Pursuant to the terms of the Klarity License Agreement, the Company licensed certain intellectual property and related rights from Dr. Lindstrom to develop, formulate, make, sell, and sub-license the topical ophthalmic solution Klarity used to protect and rehabilitate the ocular surface (the “Klarity Product”).

Under the terms of the Klarity License Agreement, the Company is required to make royalty payments to Dr. Lindstrom ranging from 3% to 6% of net sales, dependent upon the final formulation of the Klarity Product sold. In addition, the Company is required to make certain milestone payments to Dr. Lindstrom including: (i) an initial payment of $50 upon execution of the Klarity License Agreement, (ii) a second payment of $50 following the first $50 in net sales of the Klarity Product; and (iii) a final payment of $50 following the first $100 in net sales of the Klarity Product. All of the above referenced milestone payments are payable at the Company’s election in cash or shares of the Company’s restricted common stock. Payments totaling $0 and $55 were made during the three and nine months ended September 30, 2020, respectively. Royalty expense of $38 and $94 was incurred during the three and nine months ended September 30, 2020, respectively, is included in accounts payable and is due to Dr. Lindstrom at September 30, 2020.

Injectable Asset Purchase Agreement – Related Party

In December 2019, the Company entered into an asset purchase agreement (the “Lindstrom APA”) with Dr. Lindstrom, a member of its Board of Directors. Pursuant to the terms of the Lindstrom APA, the Company acquired certain intellectual property and related rights from Dr. Lindstrom to develop, formulate, make, sell, and sub-license an ophthalmic injectable product (the “Lindstrom Product”).

Under the terms of the Lindstrom APA, the Company is required to make royalty payments to Dr. Lindstrom ranging from 2% to 3% of net sales, dependent upon the final formulation and patent protection of the Lindstrom Product sold. In addition, the Company is required to make certain milestone payments to Dr. Lindstrom including an initial payment of $33 upon execution of the Lindstrom APA. Dr. Lindstrom was paid $0 and $7 in cash during the three and nine months ended September 30, 2020, respectively, and an additional $48 was payable to Dr. Lindstrom at September 30, 2020. The Company incurred royalty expense of $6 and $48 related to the Lindstrom APA during the three and nine months ended September 30, 2020, respectively.

Eyepoint Commercial Alliance Agreement

In August 2020, the Company, through its wholly-owned subsidiary ImprimisRx, LLC, entered into a Commercial Alliance Agreement (the “Dexycu Agreement”) with Eyepoint Pharmaceuticals, Inc. (“Eyepoint”), pursuant to which Eyepoint granted the Company the non-exclusive right to co-promote DEXYCU^® (dexamethasone intraocular suspension) 9% for the treatment of post-operative inflammation following ocular surgery in the United States. Pursuant to the Dexycu Agreement, Eyepoint will pay the Company a fee calculated based on the quarterly sales of DEXCYU in excess of predefined volumes to specific customers of the Company in the U.S. Under the terms of the Dexycu Agreement, the Company shall use commercially reasonable efforts to promote and market DEXCYU in the U.S.

Subject to early termination, the Dexycu Agreement expires on August 1, 2025, subject to specified notice periods and specified limitations, either party may terminate the Dexycu Agreement in the event of (i) uncured material breach by the other party or (ii) if DEXCYU ceases to have “pass-through” payment status. In addition, subject to certain limitations, the Company may terminate the Dexycu Agreement (i) for convenience subject to an extended specified notice period or (ii) in the event Eyepoint undergoes a change of control. Eyepoint may terminate the Dexycu Agreement, subject to specified notice periods and specified limitations, if the Company fails to achieve certain minimum sales levels during specified periods. During the three and nine months ended September 30, 2020, the Company recorded $7 in commission revenues related to the Dexycu Agreement.

Sales and Marketing Agreements

The Company has entered various sales and marketing agreements with certain organizations, to provide exclusive sales and marketing representation services to Harrow in select geographies in the U.S., in connection with our ophthalmic compounded formulations.

Under the terms of the sales and marketing agreements, the Company is required to make commission payments equal to 10% to 14% of net sales for products above and beyond the initial existing sales amounts. In addition, the Company is required to issue shares of the Company’s restricted common stock to certain organizations if net sales in the assigned territory reach certain future milestone levels by the end of their terms, as applicable. Commission expenses of $741 and $1,745 were incurred under these agreements during the three and nine months ended September 30, 2020, respectively, of which $0 and $83 were stock-based payments.

Asset Purchase, License and Related Agreements

The Company has acquired and sourced intellectual property rights related to certain proprietary innovations from certain inventors and related parties (the “Inventors”) through multiple asset purchase agreements, license agreements, strategic agreements and commission agreements. In general, these agreements provide that the Inventors will cooperate with the Company in obtaining patent protection for the acquired intellectual property and that the Company will use commercially reasonable efforts to research, develop and commercialize a product based on the acquired intellectual property. In addition, the Company has acquired a right of first refusal on additional intellectual property and drug development opportunities presented by these Inventors.

In consideration for the acquisition of the intellectual property rights, the Company is obligated to make payments to the Inventors based on the completion of certain milestones, generally consisting of: (1) a payment payable within 30 days after the issuance of the first patent in the United States arising from the acquired intellectual property (if any); (2) a payment payable within 30 days after the Company files the first investigational new drug application (“IND”) with the U.S. Food and Drug Administration (“FDA”) for the first product arising from the acquired intellectual property (if any); (3) for certain of the Inventors, a payment payable within 30 days after the Company files the first new drug application with the FDA for the first product arising from the acquired intellectual property (if any); and (4) certain royalty payments based on the net receipts received by the Company in connection with the sale or licensing of any product based on the acquired intellectual property (if any), after deducting (among other things) the Company’s development costs associated with such product. If, following five years after the date of the applicable asset purchase agreement, the Company either (a) for certain of the Inventors, has not filed an IND or, for the remaining Inventors, has not initiated a study where data is derived, or (b) has failed to generate royalty payments to the Inventors for any product based on the acquired intellectual property, the Inventors may terminate the applicable asset purchase agreement and request that the Company re-assign the acquired technology to the Inventors. Royalty expenses of $159 and $420 and $207 and $672 were incurred under these agreements for the three and nine months ended September 30, 2020 and 2019, respectively, and $590 and $207 are included in accounts payable at September 30, 2020 and 2019, respectively.

SEGMENT INFORMATION AND CONCENTRATIONS

9 Months Ended

Sep. 30, 2020

Segment Reporting [Abstract]

SEGMENT INFORMATION AND CONCENTRATIONS

NOTE 15. SEGMENT INFORMATION AND CONCENTRATIONS

Management evaluates performance of the Company based on operating segments. Segment performance for its two operating segments is based on segment contribution. The Company’s reportable segments consist of (i) its commercial stage pharmaceutical compounding business (Pharmaceutical Compounding), generally including the operations of the ImprimisRx business; and (ii) its start-up operations associated with pharmaceutical drug development business (Pharmaceutical Drug Development). Segment contribution for the segments represents net revenues less cost of sales, research and development, selling and marketing expenses, and select general and administrative expenses. The Company does not evaluate the following items at the segment level:

	●	Selling, general and administrative expenses that result from shared infrastructure, including certain expenses associated with legal matters, public company costs (e.g. investor relations), board of directors and principal executive officers and other like shared expenses.

	●	Operating expenses within selling, general and administrative expenses that result from the impact of corporate initiatives. Corporate initiatives primarily include integration, restructuring, acquisition and other shared costs.

	●	Other select revenues and operating expenses including R&D expenses, amortization, and asset sales and impairments, net as not all such information has been accounted for at the segment level, or such information has not been used by all segments.

	●	Total assets including capital expenditures.

The Company defines segment net revenues as pharmaceutical compounded drug sales, licenses and other revenue derived from related agreements.

Cost of sales within segment contribution includes direct and indirect costs to manufacture formulations and sell products, including active pharmaceutical ingredients, personnel costs, packaging, storage, royalties, shipping and handling costs, manufacturing equipment and tenant improvements depreciation, the write-off of obsolete inventory and other related expenses.

Selling, general and administrative expenses consist mainly of personnel-related costs, marketing and promotion costs, distribution costs, professional service costs, insurance, depreciation, facilities costs, transaction costs, and professional services costs which are general in nature and attributable to the segment.

Segment net revenues, segment operating expenses and segment contribution information consisted of the following for the three and nine months ended September 30, 2020:

For the Three Months Ended September 30, 2020

Pharmaceutical Pharmaceutical

Compounding Drug Development Total

Net revenues $ 14,399 $ - $ 14,399

Cost of sales (3,696 ) - (3,696 )

Gross profit 10,703 - 10,703

Operating expenses:

Selling, general and administrative 5,893 44 5,937

Research and development 94 22 116

Segment contribution $ 4,716 $ (66 ) 4,650

Corporate 2,460

Research and development 554

Amortization 39

Asset sales and impairments, net -

Operating income $ 1,597

For the Nine Months ended September 30, 2020

Pharmaceutical Pharmaceutical

Compounding Drug Development Total

Net revenues $ 34,276 $ - $ 34,276

Cost of sales (10,526 ) - (10,526 )

Gross profit 23,750 - 23,750

Operating expenses:

Selling, general and administrative 17,131 131 17,262

Research and development 634 79 713

Segment contribution $ 5,985 $ (210 ) 5,775

Corporate 6,417

Research and development 1,109

Amortization 127

Asset sales and impairments, net 363

Operating loss $ (2,241 )

	For the Three Months Ended September 30, 2019
	Pharmaceutical			Pharmaceutical
	Compounding			Drug Development			Total
Net revenues	$	12,755		$	-		$	12,755
Cost of sales		(4,061	)		-			(4,061	)
Gross profit		8,694			-			8,694

Operating expenses:
Selling, general and administrative		6,244			44			6,288
Research and development		193			96			289
Segment contribution	$	2,257		$	(140	)		2,117
Corporate								2,280
Research and development								155
Amortization								40
Asset sales and impairments, net								4,040
Operating loss							$	(4,398	)

	For the Nine Months Ended September 30, 2019
	Pharmaceutical			Pharmaceutical
	Compounding			Drug Development			Total
Net revenues	$	38,561		$	-		$	38,561
Cost of sales		(13,184	)		-			(13,184	)
Gross profit		25,377			-			25,377

Operating expenses:
Selling, general and administrative		17,763			130			17,893
Research and development		851			359			1,210
Segment contribution	$	6,763		$	(489	)		6,274
Corporate								7,341
Research and development								449
Amortization								165
Asset sales and impairments, net								4,040
Operating loss							$	(5,721	)

The Company categorizes revenues by geographic area based on selling location. All operations are currently located in the U.S.; therefore, total revenues are attributed to the U.S. All long-lived assets at September 30, 2020 and December 31, 2019 are located in the U.S.

The Company sells its compounded formulations to a large number of customers. No customer accounted for more than 10% of the Company’s total pharmacy sales for the three and nine months ended September 30, 2020 and 2019.

The Company receives its active pharmaceutical ingredients from three main suppliers. These suppliers collectively accounted for 76% and 72% of active pharmaceutical ingredient purchases during the three and nine months ended September 30, 2020, respectively, and 69% and 66% during the three and nine months ended September 30, 2019, respectively.

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
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Reference 2: http://www.xbrl.org/2003/role/disclosureRef
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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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Reference 5: http://www.xbrl.org/2003/role/disclosureRef
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Reference 6: http://www.xbrl.org/2003/role/disclosureRef
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Reference 7: http://www.xbrl.org/2003/role/disclosureRef
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Reference 8: http://www.xbrl.org/2003/role/disclosureRef
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Reference 9: http://www.xbrl.org/2003/role/disclosureRef
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SUBSEQUENT EVENTS

9 Months Ended

Sep. 30, 2020

Subsequent Events [Abstract]

SUBSEQUENT EVENTS

NOTE 16. SUBSEQUENT EVENTS

The Company has performed an evaluation of events occurring subsequent to September 30, 2020 through the filing date of this Quarterly Report. Based on its evaluation, no events other than those described herein need to be disclosed.

In October 2020, the Company issued 93,798 shares of its common stock underlying RSUs held by a director that resigned. The RSUs had previously vested during the nine months ended September 30, 2020, but the issuance and delivery of the shares were deferred until the director resigned.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)

9 Months Ended

Sep. 30, 2020

Basic and Diluted Net Income (Loss) per Common Share

Segments

Segments

Noncontrolling Interests

Noncontrolling Interests

	(1)	net income or loss;
	(2)	transactions with owners acting in their capacity as owners, showing separately contributions from and distributions to owners; and
	(3)	each component of other income or loss.

Basic and Diluted Net Income (Loss) per Common Share

The following table shows the computation of basic net income (loss) per share of common stock for the three and nine months ended September 30, 2020 and 2019:

	2020		2019			2020			2019
	For the Three Months Ended					For the Nine Months Ended
	September 30,					September 30,
	2020		2019			2020			2019
Numerator – net income (loss) attributable to Harrow Health, Inc.	$	8,638	$	(11,469	)	$	(4,506	)	$	(2,489	)
Denominator – weighted average number of shares outstanding, basic		25,921,573		25,583,998			25,880,554			25,205,215
Net income (loss) per share, basic	$	0.33	$	(0.45	)	$	(0.17	)	$	(0.10	)

	For the Three months Ended
	September 30, 2020

Diluted shares related to:
Warrants		504,742
Stock options		663,745
Dilutive common equivalent shares		1,168,487

The following table shows the computation of diluted net income (loss) per share of common stock for the three and nine months ended September 30, 2020 and 2019:

	2020		2019			2020			2019
	For the Three Months Ended					For the Nine months Ended
	September 30,					September 30,
	2020		2019			2020			2019
Numerator – net income (loss) attributable to Harrow Health, Inc.	$	8,638	$	(11,469	)	$	(4,506	)	$	(2,489	)
Denominator – weighted average number of shares outstanding, basic		25,921,573		25,583,998			25,880,554			25,205,215
Dilutive common equivalent shares		1,168,487		-			-			-
Number of shares used for diluted earnings per share computation		27,090,060		25,583,998			25,880,554			25,205,215
Net income (loss) per share, diluted	$	0.32	$	(0.45	)	$	(0.17	)	$	(0.10	)

Investment in Eton Pharmaceuticals, Inc. – Related Party

Investment in Eton Pharmaceuticals, Inc. – Related Party

Mark Baum, the Company’s Chief Executive Officer, is a member of the board of directors of Eton.

Investment in Melt Pharmaceuticals, Inc. – Related Party

Investment in Melt Pharmaceuticals, Inc. – Related Party

See Note 4 for more information and related party disclosure regarding Melt.

Investment in Surface Ophthalmics, Inc. – Related Party

Investment in Surface Ophthalmics, Inc. – Related Party

See Note 5 for more information and related party disclosure regarding Surface.

Recently Adopted Accounting Pronouncements

Recently Adopted Accounting Pronouncements

Recently Issued Accounting Pronouncements

Recently Issued Accounting Pronouncements

Disclosure of accounting policy for segment reporting.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)

9 Months Ended

Sep. 30, 2020

SCHEDULE OF BASIC EARNINGS PER COMMON SHARE

The following table shows the computation of basic net income (loss) per share of common stock for the three and nine months ended September 30, 2020 and 2019:

	2020		2019			2020			2019
	For the Three Months Ended					For the Nine Months Ended
	September 30,					September 30,
	2020		2019			2020			2019
Numerator – net income (loss) attributable to Harrow Health, Inc.	$	8,638	$	(11,469	)	$	(4,506	)	$	(2,489	)
Denominator – weighted average number of shares outstanding, basic		25,921,573		25,583,998			25,880,554			25,205,215
Net income (loss) per share, basic	$	0.33	$	(0.45	)	$	(0.17	)	$	(0.10	)

SCHEDULE OF DILUTED COMMON EQUIVALENT SHARES

	For the Three months Ended
	September 30, 2020

Diluted shares related to:
Warrants		504,742
Stock options		663,745
Dilutive common equivalent shares		1,168,487

SCHEDULE OF DILUTED EARNINGS PER COMMON SHARE

The following table shows the computation of diluted net income (loss) per share of common stock for the three and nine months ended September 30, 2020 and 2019:

	2020		2019			2020			2019
	For the Three Months Ended					For the Nine months Ended
	September 30,					September 30,
	2020		2019			2020			2019
Numerator – net income (loss) attributable to Harrow Health, Inc.	$	8,638	$	(11,469	)	$	(4,506	)	$	(2,489	)
Denominator – weighted average number of shares outstanding, basic		25,921,573		25,583,998			25,880,554			25,205,215
Dilutive common equivalent shares		1,168,487		-			-			-
Number of shares used for diluted earnings per share computation		27,090,060		25,583,998			25,880,554			25,205,215
Net income (loss) per share, diluted	$	0.32	$	(0.45	)	$	(0.17	)	$	(0.10	)

REVENUES (Tables)

9 Months Ended

Sep. 30, 2020

Revenue from Contract with Customer [Abstract]

SCHEDULE OF DISAGGREGATED REVENUE

Revenue disaggregated by revenue source for the three and nine months ended September 30, 2020 and 2019, consists of the following:

SCHEDULE OF DISAGGREGATED REVENUE

	For the Three Months Ended				For the Nine months Ended
	September 30,				September 30,
	2020		2019		2020		2019
Product sales, net	$	14,385	$	12,748	$	34,244	$	38,540
Commissions		7		-		7		-
License		7		7		25		21
Total revenues	$	14,399	$	12,755	$	34,276	$	38,561

INVESTMENT IN MELT PHARMACEUTICALS, INC. AND AGREEMENTS - RELATED PARTY TRANSACTIONS (Tables)

9 Months Ended

Sep. 30, 2020

Investments, Debt and Equity Securities [Abstract]

SCHEDULE OF CONDENSED INCOME STATEMENT

The unaudited condensed results of operations information of Melt is summarized below:

SCHEDULE OF CONDENSED INCOME STATEMENT

	For the
	Nine Months Ended
	September 30, 2020
Revenues, net	$	-
Loss from operations		3,261
Net loss	$	(3,261	)

SCHEDULE OF CONDENSED BALANCE SHEET

The unaudited condensed balance sheet information of Melt is summarized below:

SCHEDULE OF CONDENSED BALANCE SHEET

	September 30,
	2020
Current assets	$	4,072
Non current assets		12
Total assets	$	4,084

Total liabilities	$	1,452
Total preferred stock and stockholders’ equity		2,632
Total liabilities and stockholders’ equity	$	4,084

INVESTMENT IN SURFACE OPHTHALMICS, INC. AND AGREEMENTS - RELATED PARTY TRANSACTIONS (Tables)

9 Months Ended

Sep. 30, 2020

Investment In Surface Ophthalmics Inc. And Agreements - Related Party Transactions

SUMMARY OF CONDENSED INCOME STATEMENT

The unaudited condensed results of operations information of Surface is summarized below:

SUMMARY OF CONDENSED INCOME STATEMENT

	For the
	Nine Months Ended
	September 30, 2020
Revenues, net	$	-
Loss from operations		5,647
Net loss	$	(5,647	)

SUMMARY OF CONDENSED BALANCE SHEET

The unaudited condensed balance sheet information of Surface is summarized below:

SUMMARY OF CONDENSED BALANCE SHEET

	September 30,
	2020
Current assets	$	11,547
Non current assets		45
Total assets	$	11,592

Total liabilities	$	1,754
Total stockholders’ equity		9,838
Total liabilities and stockholders’ equity	$	11,592

INVENTORIES (Tables)

9 Months Ended

Sep. 30, 2020

Inventory Disclosure [Abstract]

SCHEDULE OF INVENTORIES

	2020		2019
	September 30,		December 31,
	2020		2019
Raw materials	$	2,838	$	2,405
Work in progress		4		20
Finished goods		1,132		876
Total inventories	$	3,974	$	3,301

PREPAID EXPENSES AND OTHER CURRENT ASSETS (Tables)

9 Months Ended

Sep. 30, 2020

Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]

SCHEDULE OF PREPAID EXPENSES AND OTHER CURRENT ASSETS

Prepaid expenses and other current assets consisted of the following:

	September 30,		December 31,
	2020		2019
Prepaid insurance	$	149	$	123
Other prepaid expenses		378		358
Receivable due from Melt		815		722
Deposits and other current assets		89		105
Total prepaid expenses and other current assets	$	1,431	$	1,308

PROPERTY, PLANT AND EQUIPMENT (Tables)

9 Months Ended

Sep. 30, 2020

Property, Plant and Equipment [Abstract]

SCHEDULE OF PROPERTY, PLANT AND EQUIPMENT

	2020			2019
	September 30,			December 31,
	2020			2019
Property, plant and equipment, net:
Computer software and hardware	$	1,902		$	1,732
Furniture and equipment		463			363
Lab and pharmacy equipment		3,464			3,164
Leasehold improvements		5,720			5,510
Property, plant and equipment, gross		11,549			10,769
Accumulated depreciation and amortization		(6,776	)		(5,394	)
	$	4,773		$	5,375

INTANGIBLE ASSETS AND GOODWILL (Tables)

9 Months Ended

Sep. 30, 2020

Goodwill and Intangible Assets Disclosure [Abstract]

SCHEDULE OF INTANGIBLE ASSETS

The Company’s intangible assets at September 30, 2020 consisted of the following:

SCHEDULE OF INTANGIBLE ASSETS

	Amortization
	periods			Accumulated						Net
	(in years)	Cost		amortization			Impairment			Carrying value
Patents	17-19 years	$	911	$	(86	)	$	(363	)	$	462
Licenses	20 years		50		(6	)		-			44
Trademarks	Indefinite		353		-			-			353
Customer relationships	3-15 years		1,519		(421	)		-			1,098
Trade name	5 years		5		(5	)		-			-
Non-competition clause	3-4 years		50		(50	)		-			-
State pharmacy licenses	25 years		8		(7	)		-			1
		$	2,896	$	(575	)	$	(363	)	$	1,958

SCHEDULE OF AMORTIZATION EXPENSES FOR INTANGIBLE ASSETS

Amortization expense for intangible assets for the three and nine months ended September 30, 2020 and 2019 was as follows:

	For the				For the
	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2020		2019		2020		2019
Patents	$	6	$	22	$	25	$	37
Licenses		-		-		1		5
Customer relationships		33		26		101		128
Trade name		-		1		-		1
State pharmacy licenses		-		3		-		4
	$	39	$	52	$	127	$	175

SCHEDULE OF ESTIMATED FUTURE AMORTIZATION EXPENSE

Estimated future amortization expense for the Company’s intangible assets at September 30, 2020 is as follows:

		2020
Remainder of 2020	$	47
2021		173
2022		173
2023		173
2024		146
Thereafter		893
Intangible assets	$	1,605

ACCOUNTS PAYABLE AND ACCRUED EXPENSES (Tables)

9 Months Ended

Sep. 30, 2020

Payables and Accruals [Abstract]

SCHEDULE OF ACCOUNTS PAYABLE AND ACCRUED EXPENSES

Accounts payable and accrued expenses consisted of the following:

	2020			2019
	September 30,			December 31,
	2020			2019
Accounts payable	$	5,511		$	7,409
Other accrued expenses		-			49
Accrued interest		180			244
Accrued exit fee for note payable		800			800
Total accounts payable and accrued expenses		6,491			8,502
Less: Current portion		(5,691	)		(7,702	)
Non-current total accrued expenses	$	800		$	800

DEBT (Tables)

9 Months Ended

Sep. 30, 2020

Debt Disclosure [Abstract]

SUMMARY OF FUTURE MINIMUM PAYMENTS

At September 30, 2020, future minimum payments under the Company’s debt agreements were as follows:

SUMMARY OF FUTURE MINIMUM PAYMENTS

	2020
	Amount
Remainder of 2020	$	1,299
2021		5,430
2022		4,437
2023		9,669
Total minimum payments		20,835
Less: amount representing estimated interest		(3,020	)
Loans payable, gross		17,815
Less: unamortized discount		(905	)
Notes payable		16,910
Less: current portion, net of unamortized discount		(3,750	)
Loans payable, net of current portion and unamortized debt discount	$	13,160

LEASES (Tables)

9 Months Ended

Sep. 30, 2020

Leases [Abstract]

SCHEDULE OF FUTURE LEASE PAYMENT UNDER OPERATING LEASES

Future lease payments under operating leases as of September 30, 2020 were as follows:

SCHEDULE OF FUTURE LEASE PAYMENT UNDER FINANCE LEASE

Future lease payments under finance leases as of September 30, 2020 were as follows:

2020

Finance Leases

Remainder of 2020 $ 2

2021 9

2022 9

2023 9

2024 1

Total minimum lease payments 30

Less: amount representing interest payments (3 )

Present value of future minimum lease payments 27

Less: current portion, finance lease obligation (7 )

Finance lease obligation, net of current portion $ 20

STOCKHOLDERS’ EQUITY AND STOCK-BASED COMPENSATION (Tables)

9 Months Ended

Sep. 30, 2020

Equity [Abstract]

SCHEDULE OF STOCK OPTION PLAN ACTIVITY

A summary of stock option activity under the Plans for the nine months ended September 30, 2020 is as follows:

SCHEDULE OF STOCK OPTION PLAN ACTIVITY

	Number of shares			Weighted Avg. Exercise Price		Weighted Avg. Remaining Contractual Life		Aggregate Intrinsic Value
Options outstanding - January 1, 2020		2,656,683		$	5.30
Options granted		414,500		$	6.44
Options exercised		(3,748	)	$	3.06
Options cancelled/forfeited		(14,369	)	$	17.42
Options outstanding - September 30, 2020		3,053,066		$	5.41		5.97	$	3,608
Options exercisable – September 30, 2020		1,855,150		$	4.45		5.38	$	3,294
Options vested and expected to vest – September 30, 2020		2,940,527		$	5.34		5.93	$	3,605

SCHEDULE OF FAIR VALUE ASSUMPTIONS

The table below illustrates the fair value per share determined by the Black-Scholes-Merton option pricing model with the following assumptions used for valuing options granted to employees:

SCHEDULE OF FAIR VALUE ASSUMPTIONS

	2020
Weighted-average fair value of options granted	$	3.86
Expected terms (in years)		0.5 – 6.11
Expected volatility		66.5% - 71.4%
Risk-free interest rate		0.34% - 1.64%
Dividend yield		-

SCHEDULE OF STOCK OPTION OUTSTANDING AND EXERCISABLE

The following table summarizes information about stock options outstanding and exercisable at September 30, 2020:

	Options Outstanding				Options Exercisable
		Weighted
		Average		Weighted			Weighted
		Remaining		Average			Average
	Number	Contractual		Exercise	Number		Exercise
Range of Exercise Prices	Outstanding	Life in Years		Price	Exercisable		Price
$1.47 - $2.60	778,690	5.90	$	2.05	728,938	$	2.07
$2.76 - $4.66	531,785	5.95	$	3.98	453,157	$	3.98
$5.49 - $6.36	496,350	7.47	$	6.10	263,814	$	6.12
$6.64 - $8.99	1,246,241	5.42	$	7.85	409,241	$	8.13
$1.47 - $8.99	3,053,066	5.97	$	5.41	1,855,150	$	4.45

SCHEDULE OF RESTRICTED STOCK UNITS ACTIVITY

A summary of the Company’s RSU activity and related information for the nine months ended September 30, 2020 is as follows:

	Number of RSUs			Weighted Average Grant Date Fair Value
RSUs unvested - January 1, 2020		1,411,930		$	2.76
RSUs granted		251,524		$	6.11
RSUs vested		(49,190	)	$	6.61
RSUs cancelled/forfeited		-
RSUs unvested at September 30, 2020		1,614,264		$	3.16

SCHEDULE OF WARRANTS ACTIVITY

A summary of warrant activity for the nine months ended September 30, 2020 is as follows:

SCHEDULE OF WARRANTS ACTIVITY

	Number of Shares Subject to Warrants Outstanding		Weighted Avg. Exercise Price

Warrants outstanding - January 1, 2020		780,386	$	2.12
Granted		-
Exercised		-
Expired		-
Warrants outstanding and exercisable - September 30, 2020		780,386	$	2.12
Weighted average remaining contractual life of the outstanding warrants in years - September 30, 2020		3.78

SCHEDULE OF WARRANTS OUTSTANDING AND WARRANTS EXERCISABLE

Warrants outstanding and exercisable as of September 30, 2020 are as follows:

		Warrants		Exercise		Expiration
Warrant Series	Issue Date	Outstanding		Price		Date
Lender warrants	5/11/2015		125,000	$	1.79		5/11/2025
Settlement warrants	8/16/2016		40,000	$	3.75		8/16/2021
Lender warrants	7/19/2017		615,386	$	2.08		7/19/2024
			780,386	$	2.12

SCHEDULE OF STOCK BASED COMPENSATION GRANTED TO EMPLOYEES DIRECTORS CONSULTANTS

The Company recorded stock-based compensation related to equity instruments granted to employees, directors and consultants as follows:

	For the				For the
	Three Months Ended				Nine Months Ended
	September 30, 2020		September 30, 2019		September 30, 2020		September 30, 2019
Employees - selling, general and administrative	$	740	$	252	$	1,612	$	1,158
Directors - selling, general and administrative		177		75		370		225
Consultants - selling, general and administrative		-		76		96		175
Total	$	917	$	403	$	2,078	$	1,558

SEGMENT INFORMATION AND CONCENTRATIONS (Tables)

9 Months Ended

Sep. 30, 2020

Segment Reporting [Abstract]

SCHEDULE OF SEGMENT NET REVENUES, SEGMENT OPERATING EXPENSES AND SEGMENT CONTRIBUTION

Segment net revenues, segment operating expenses and segment contribution information consisted of the following for the three and nine months ended September 30, 2020:

	For the Three Months Ended September 30, 2019
	Pharmaceutical			Pharmaceutical
	Compounding			Drug Development			Total
Net revenues	$	12,755		$	-		$	12,755
Cost of sales		(4,061	)		-			(4,061	)
Gross profit		8,694			-			8,694

Operating expenses:
Selling, general and administrative		6,244			44			6,288
Research and development		193			96			289
Segment contribution	$	2,257		$	(140	)		2,117
Corporate								2,280
Research and development								155
Amortization								40
Asset sales and impairments, net								4,040
Operating loss							$	(4,398	)

	For the Nine Months Ended September 30, 2019
	Pharmaceutical			Pharmaceutical
	Compounding			Drug Development			Total
Net revenues	$	38,561		$	-		$	38,561
Cost of sales		(13,184	)		-			(13,184	)
Gross profit		25,377			-			25,377

Operating expenses:
Selling, general and administrative		17,763			130			17,893
Research and development		851			359			1,210
Segment contribution	$	6,763		$	(489	)		6,274
Corporate								7,341
Research and development								449
Amortization								165
Asset sales and impairments, net								4,040
Operating loss							$	(5,721	)

DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION (Details Narrative) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019	Dec. 31, 2019
Business Acquisition [Line Items]
Consolidation basis, description			We consolidate subsidiaries in which we hold and/or control, directly or indirectly, more than 50% of the voting rights.
Operating income (loss)	$ (1,597)	$ 4,398	$ 2,241	$ 5,721
Accumulated deficit	(78,549)		(78,549)		$ (74,043)
Net cash provided by (used in) operating activities			534	$ 702
Cash, cash equivalents, restricted cash and restricted cash equivalents	$ 5,727		$ 5,727		$ 4,949
Mayfield Pharmaceuticals, Inc. [Member]
Business Acquisition [Line Items]
Equity method investment, ownership percentage	79.00%		79.00%
Mayfield Pharmaceuticals, Inc. [Member] \| TGV [Member]
Business Acquisition [Line Items]
Equity method investment, ownership percentage	21.00%		21.00%
Stowe Pharmaceuticals, Inc. [Member]
Business Acquisition [Line Items]
Equity method investment, ownership percentage	70.00%		70.00%
Stowe Pharmaceuticals, Inc. [Member] \| TGV [Member]
Business Acquisition [Line Items]
Equity method investment, ownership percentage	30.00%		30.00%

SCHEDULE OF BASIC EARNINGS PER COMMON SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Accounting Policies [Abstract]
Numerator – net income (loss) attributable to Harrow Health, Inc.	$ 8,638	$ (11,469)	$ (4,506)	$ (2,489)
Denominator – weighted average number of shares outstanding, basic	25,921,573	25,583,998	25,880,554	25,205,215
Net income (loss) per share, basic	$ 0.33	$ (0.45)	$ (0.17)	$ (0.10)

The amount of net income (loss) for the period per each share of common stock or unit outstanding during the reporting period.

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SCHEDULE OF DILUTED COMMON EQUIVALENT SHARES (Details)	3 Months Ended
SCHEDULE OF DILUTED COMMON EQUIVALENT SHARES (Details)	Sep. 30, 2020 shares
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Dilutive common equivalent shares	1,168,487
Warrant [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Dilutive common equivalent shares	504,742
Stock Options [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Dilutive common equivalent shares	663,745

SCHEDULE OF DILUTED EARNINGS PER COMMON SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Accounting Policies [Abstract]
Numerator – net income (loss) attributable to Harrow Health, Inc.	$ 8,638	$ (11,469)	$ (4,506)	$ (2,489)
Denominator – weighted average number of shares outstanding, basic	25,921,573	25,583,998	25,880,554	25,205,215
Dilutive common equivalent shares	1,168,487
Number of shares used for diluted earnings per share computation	27,090,060	25,583,998	25,880,554	25,205,215
Net income (loss) per share, diluted	$ 0.32	$ (0.45)	$ (0.17)	$ (0.10)

The amount of net income (loss) for the period available to each share of common stock or common unit outstanding during the reporting period and to each share or unit that would have been outstanding assuming the issuance of common shares or units for all dilutive potential common shares or units outstanding during the reporting period.

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Additional shares included in the calculation of diluted EPS as a result of the potentially dilutive effect of contingently issuable shares. Contingently issuable shares are those shares that are issuable for little or no cash contingent on certain conditions being met.

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The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($) $ / shares in Units, $ in Thousands	1 Months Ended	3 Months Ended			9 Months Ended
	Jan. 31, 2019	Sep. 30, 2020	Sep. 30, 2019	Mar. 31, 2019	Sep. 30, 2020	Sep. 30, 2019
Entity Listings [Line Items]
Non-controlling interest description					Generally, any interest that holds less than 50% of the outstanding voting shares is deemed to be a noncontrolling interest; however, there are other factors, such as decision-making rights, that are considered as well.
Unvested restricted stock units					5,447,716	5,263,131
Vested restricted stock units					281,507	314,588
Eton Pharmaceuticals, Inc. [Member]
Entity Listings [Line Items]
Number of shares owned		3,500,000			3,500,000
Equity method investment, ownership percentage		16.70%			16.70%
Shares issued, price per share		$ 7.90			$ 7.90
Gain (loss) on investments		$ 8,575			$ 2,450
Investment owned, at fair value		$ 27,650			$ 27,650
Melt Pharmaceuticals, Inc. [Member]
Entity Listings [Line Items]
Number of shares owned		3,500,000			3,500,000
Equity method investment, ownership percentage		44.00%			44.00%
Investment owned, at fair value		$ 2,432			$ 2,432
Gain on deconsolidation amount	$ 5,810
Unrealized gain (loss) on investments		$ 300	$ 682		$ 1,536	$ 1,293
Melt Pharmaceuticals, Inc. [Member] \| Series A Preferred Stock [Member]
Entity Listings [Line Items]
Shares issued, price per share				$ 5.00
Proceeds from issuance of preferred stock and preference stock				$ 11,400
Surface Pharmaceuticals Inc [Member]
Entity Listings [Line Items]
Number of shares owned		3,500,000			3,500,000
Equity method investment, ownership percentage		30.00%			30.00%
Investment owned, at fair value		$ 2,053			$ 2,053
Unrealized gain (loss) on investments		$ 756	$ 400		$ 1,694	$ 904

SCHEDULE OF DISAGGREGATED REVENUE (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Disaggregation of Revenue [Line Items]
Total Revenues	$ 14,399	$ 12,755	$ 34,276	$ 38,561
Product Sales, Net [Member]
Disaggregation of Revenue [Line Items]
Total Revenues	14,385	12,748	34,244	38,540
Commissions [Member]
Disaggregation of Revenue [Line Items]
Total Revenues	7		7
License [Member]
Disaggregation of Revenue [Line Items]
Total Revenues	$ 7	$ 7	$ 25	$ 21

Amount, excluding tax collected from customer, of revenue from satisfaction of performance obligation by transferring promised good or service to customer. Tax collected from customer is tax assessed by governmental authority that is both imposed on and concurrent with specific revenue-producing transaction, including, but not limited to, sales, use, value added and excise.

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REVENUES (Details Narrative) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Revenue from Contract with Customer [Abstract]
Deferred revenue and customer deposits	$ 63	$ 57

SCHEDULE OF CONDENSED INCOME STATEMENT (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Entity Listings [Line Items]
Revenues, net	$ 14,399	$ 12,755	$ 34,276	$ 38,561
Loss from operations	1,597	(4,398)	(2,241)	(5,721)
Net loss	$ 8,638	$ (11,469)	(4,506)	$ (2,489)
Melt Pharmaceuticals, Inc. [Member]
Entity Listings [Line Items]
Revenues, net
Loss from operations			3,261
Net loss			$ (3,261)

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

SCHEDULE OF CONDENSED BALANCE SHEET (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Entity Listings [Line Items]
Current assets	$ 40,977	$ 36,767
Total assets	59,470	59,085
Total liabilities	34,542	31,667
Total preferred stock and stockholders' equity	25,275	27,711
Total liabilities and stockholders' equity	59,470	$ 59,085
Melt Pharmaceuticals, Inc. [Member]
Entity Listings [Line Items]
Current assets	4,072
Non current assets	12
Total assets	4,084
Total liabilities	1,452
Total preferred stock and stockholders' equity	2,632
Total liabilities and stockholders' equity	$ 4,084

Sum of the carrying amounts as of the balance sheet date of all assets that are recognized. Assets are probable future economic benefits obtained or controlled by an entity as a result of past transactions or events.

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Sum of the carrying amounts as of the balance sheet date of all assets that are expected to be realized in cash, sold, or consumed within one year (or the normal operating cycle, if longer). Assets are probable future economic benefits obtained or controlled by an entity as a result of past transactions or events.

Sum of the carrying amounts as of the balance sheet date of all assets that are expected to be realized in cash, sold or consumed after one year or beyond the normal operating cycle, if longer.

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Sum of the carrying amounts as of the balance sheet date of all liabilities that are recognized. Liabilities are probable future sacrifices of economic benefits arising from present obligations of an entity to transfer assets or provide services to other entities in the future.

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-Subparagraph (SX 210.4-08(g)(1)(ii))
-URI http://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690

Total of all stockholders' equity (deficit) items, net of receivables from officers, directors, owners, and affiliates of the entity which are attributable to the parent. The amount of the economic entity's stockholders' equity attributable to the parent excludes the amount of stockholders' equity which is allocable to that ownership interest in subsidiary equity which is not attributable to the parent (noncontrolling interest, minority interest). This excludes temporary equity and is sometimes called permanent equity.

INVESTMENT IN MELT PHARMACEUTICALS, INC. AND AGREEMENTS - RELATED PARTY TRANSACTIONS (Details Narrative) - Melt Pharmaceuticals, Inc. [Member] - USD ($) $ in Thousands	1 Months Ended
	Feb. 28, 2019	Dec. 31, 2018	Sep. 30, 2020
Asset Purchase Agreement [Member]
Entity Listings [Line Items]
Royalty payment percentage on net sales		5.00%
Management Services Agreement [Member]
Entity Listings [Line Items]
Administrative expenses	$ 10
Reimbursable expenses due			$ 815

SUMMARY OF CONDENSED INCOME STATEMENT (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Entity Listings [Line Items]
Revenues, net	$ 14,399	$ 12,755	$ 34,276	$ 38,561
Loss from operations	1,597	(4,398)	(2,241)	(5,721)
Net loss	$ 8,638	$ (11,469)	(4,506)	$ (2,489)
Surface Pharmaceuticals Inc [Member]
Entity Listings [Line Items]
Revenues, net
Loss from operations			5,647
Net loss			$ (5,647)

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

SUMMARY OF CONDENSED BALANCE SHEET (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Entity Listings [Line Items]
Current assets	$ 40,977	$ 36,767
Total assets	59,470	59,085
Total liabilities	34,542	31,667
Total stockholders equity	25,275	27,711
Total liabilities and stockholders' equity	59,470	$ 59,085
Surface Pharmaceuticals Inc [Member]
Entity Listings [Line Items]
Current assets	11,547
Non current assets	45
Total assets	11,592
Total liabilities	1,754
Total stockholders equity	9,838
Total liabilities and stockholders' equity	$ 11,592

Sum of the carrying amounts as of the balance sheet date of all assets that are expected to be realized in cash, sold or consumed after one year or beyond the normal operating cycle, if longer.