Company: GROVW
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0001628280-25-038957
Chunk: 14

Company: Grove Collaborative Holdings, Inc.
Filing Date: 2025-08-07
Form: 10-Q
Item: Part I, Item 1
Chunk 14
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in thousands):AmountCash paid$2,212 Accounts receivable785 Inventory1,279 Customer relationships441 Trademarks304 Accounts payable(597)Total net assets acquired2,212 8Greens acquisitionOn March 10, 2025, the Company acquired substantially all assets and certain liabilities of Tasty Greens, LLC (“8Greens”), a company engaged in providing healthy, nutrient-rich effervescent tablets and gummies. The transaction has been accounted for as a business combination. Consideration paid by the Company was solely of cash.

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

The following table summarizes the allocation of the consideration to the fair values of the assets acquired and liabilities assumed at the acquisition date (in thousands):AmountCash paid$636 Accounts receivable608 Inventory742 Trademarks537 Customer relationships696 Contingent liabilities(133)Accounts payable(1,814)Total net assets acquired$636 Acquisition-related transaction costs for the acquisition of Grab Green and 8Greens, consisting primarily of third-party professional fees, were $0.6 million in the aggregate and were expensed as incurred within selling, general and administrative expenses in the Company’s condensed consolidated statements of operations.Intangible assets acquired will be amortized over periods ranging between 1 and 5 years. Accounts receivable acquired in each transaction consisted of amounts due to Grab Green or 8Greens from their customers. Accounts payable acquired relates to amounts due to vendors for inventory or operating expenses.

Pro forma financial information related to these acquisitions has not been presented as the effects of the acquisitions described above were not material to the Company’s condensed consolidated financial results. Revenue and net loss attributable to Grab Green and 8Greens have been included in the Company's condensed consolidated statement of operations since the date of each transaction and were not material for the periods presented. 

4.    Fair Value Measurements and Fair Value of Financial Instruments

The Company measures certain financial assets and liabilities at fair value on a recurring basis. The Company determines fair value based upon the exit price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants, as determined by either the principal market or the most advantageous market. Inputs used in the valuation techniques to derive fair values are classified based on a three-level hierarchy. These levels are:Level 1 – Inputs are unadjusted, quoted prices in active markets for