Company: GROVW
Filing Date: 2025-03-19
Form Type: 10-K
Source: 0001628280-25-013839
Chunk: 233

Company: Grove Collaborative Holdings, Inc.
Filing Date: 2025-03-19
Form: 10-K
Item: Item 8
Chunk 233
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 following for the periods presented: Year Ended December 31,20242023Federal statutory rate21.0 %21.0 %State income taxes, net of federal tax benefit(0.1)%— %Stock-based compensation(11.7)%(9.2)%Remeasurement of derivative liabilities7.6 %0.1 %Other(0.6)%— %Change in valuation allowance(16.3)%(12.0)%Provision for income taxes(0.1)%(0.1)%The components of net deferred tax assets are as follows (in thousands):December 31,20242023Deferred tax assets:Net operating loss carryforwards$131,563 $125,850 Deferred revenue1,546 1,745 Inventory reserve and uniform capitalization873 2,509 Operating lease liabilities3,557 4,364 Accruals and other reserves729 1,332 Stock-based compensation4,107 5,570 Business interest carryforwards10,127 7,660 Depreciation and amortization817 — Other223 268 Total deferred tax assets153,542 149,298 Less: valuation allowance(150,486)(145,711)Total deferred tax assets, net of valuation allowance3,056 3,587 Deferred tax liabilities:Operating lease right-of-use assets(3,056)(2,344)Depreciation and amortization— (1,243)Total deferred tax liabilities(3,056)(3,587)Net deferred tax assets$— $— 

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Table of ContentsGrove Collaborative Holdings, Inc.Notes to Consolidated Financial Statements (continued)

The following summarizes the activity related to valuation allowances on deferred tax assets:December 31,20242023Valuation allowance, as of beginning of year$145,711 $139,033 Valuation allowance established5,346 5,947 Changes to existing valuation allowances(571)731 Valuation allowance, as of end of year$150,486 $145,711 As of December 31, 2024, the Company had federal and state net operating loss (“NOL”) carryforwards of $561.9 million and $245.9 million, respectively. Federal NOL carryforwards $536.9 million have no expiration and can only be used to offset 80% of the Company’s future taxable income.