Company: GROVW
Filing Date: 2025-05-14
Form Type: 10-Q
Source: 0001628280-25-025541
Chunk: 158

Company: Grove Collaborative Holdings, Inc.
Filing Date: 2025-05-14
Form: 10-Q
Item: Part I, Item 1
Chunk 158
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 the control of the Company.

10.    Stock-Based Compensation

Stock OptionsStock option activity under the Company’s incentive plan is as follows (in thousands, except share and per share amounts):Options OutstandingNumber of Options Weighted–Average Exercise PriceWeighted-Average Remaining Contractual Life (years)Aggregate Intrinsic ValueBalance – December 31, 20241,707,450 $7.34 3.64$12 Exercised— $— Cancelled/forfeited(55,451)$6.34 Balance – March 31, 20251,651,999 $7.38 3.47$10 Options vested and exercisable – March 31, 20251,448,272 $5.76 3.14$10 The total grant date fair value of options that vested during the three months ended March 31, 2025 and 2024 was  nominal. No options were exercised during the three months ended March 31, 2025 and 2024. The aggregate intrinsic value is the difference between the current fair value of the underlying common stock and the exercise price for in-the-money stock options.Market-Based Stock OptionsIn February 2021, the Company granted 203,434 stock options with market and liquidity event-related performance-based vesting criteria with an exercise price of $18.85 per share. 100% of the stock options vest upon valuation of the Company’s stock at a stated price upon occurrence of specified transactions. Fair value was determined using the probability weighted expected term method (“PWERM”), which involves the estimation of future potential outcomes as well as values and probabilities associated with each potential outcome. Two potential scenarios were used in the PWERM that utilized 1) the value of the Company’s common equity, and 2) a Monte Carlo simulation to specifically value the award. The total grant date fair value of the award was determined to be $5.5 million. Since a liquidity event is not deemed probable until such event occurs, no compensation cost related to the performance condition was recognized prior to the Business Combination on June 16, 2022. Subsequently, the Company recorded stock-based compensation expense of $4.6 million for service periods completed prior to the Business Combination. As of March 31, 2025, the market-based vesting criteria had not been met and there is no unrecognized compensation expense related to these market-based stock options. 

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Table of ContentsGrove Collaborative Holdings