Company: GROVW
Filing Date: 2025-03-19
Form Type: 10-K
Source: 0001628280-25-013839
Chunk: 107

Company: Grove Collaborative Holdings, Inc.
Filing Date: 2025-03-19
Form: 10-K
Item: Item 7
Chunk 107
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as defined below), Public Warrants and Private Placement Warrant and Structural Derivative liabilities. Changes in the fair value of our derivative liabilities may fluctuate significantly in future periods primarily due to fluctuations in the fair value of our common stock.

Other income, net consists of the reduction of transaction costs allocated to derivative liabilities upon Business Combination and interest income.

Provision for Income Taxes

We account for income taxes under the asset and liability method, whereby deferred tax assets and liabilities are determined based on the difference between the financial statements and income tax bases of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. We recognize the benefits of tax-return positions in the financial statements when they are more likely than not to be sustained by the taxing authority, based on the technical merits at the reporting date. We consider many factors when evaluating and estimating our tax positions and tax benefits, which may require periodic adjustments, and which may not accurately forecast actual outcomes. We recognize interest and penalties related to unrecognized tax benefits, if any, as income tax expense.

Results of Operations

The following table sets forth our results of operations for each period presented:

 Year Ended December 31, 20242023 (in thousands) Revenue, net$203,425 $259,278 Cost of goods sold94,077 121,919 Gross profit109,348 137,359 Operating expenses:Advertising10,265 21,292 Product development18,456 16,401 Selling, general and administrative103,174 134,929 Operating loss(22,547)(35,263)Non-operating expenses:Interest expense 12,777 16,077 Loss on extinguishment of debt5,004 — Changes in fair value of derivative liabilities(9,888)(216)Other income, net (3,057)(7,930)Total non-operating expenses, net4,836 7,931 Loss before provision for income taxes(27,383)(43,194)Provision for income taxes40 38 Net loss$(27,423)$(43,232)

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The following table sets forth our consolidated statements of operations data expressed as a percentage of net revenue:

 Year Ended December 31, 20242023 (as a percentage of revenue) Revenue, net100 %100 %Cost of goods sold46 47 Gross profit54 53 Operating expenses:Advertising5 8 Product development9