Company: GROVW
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0001628280-25-038957
Chunk: 287

Company: Grove Collaborative Holdings, Inc.
Filing Date: 2025-08-07
Form: 10-Q
Item: Part I, Item 8
Chunk 287
---
 Liability”). 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 primarily of interest income.

34

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:

Three Months EndedJune 30,Six Months EndedJune 30,2025202420252024Revenue, net$44,026 $52,099 $87,573 $105,644 Cost of goods sold19,631 24,036 40,114 47,841 Gross profit24,395 28,063 47,459 57,803 Operating expenses:Advertising2,722 2,439 5,529 4,492 Product development2,207 5,436 3,986 9,062 Selling, general and administrative22,956 27,124 44,942 51,718 Operating loss(3,490)(6,936)(6,998)(7,469)Non-operating expenses (income):Interest expense 305 4,117 651 8,246 Changes in fair value of derivative liabilities(70)(8)(214)(206)Other income, net (109)(994)(281)(2,077)Total non-operating expenses (income), net126 3,115 156 5,963 Loss before provision for income taxes(3,616)(10,051)(7,154)(13,432)Provision for income taxes10 10 19 20 Net loss$(3,626)$(10,061)$(7,173)$(13,452)

35

The following table sets forth our statements of operations data