Company: GROVW
Filing Date: 2025-05-14
Form Type: 10-Q
Source: 0001628280-25-025541
Chunk: 218

Company: Grove Collaborative Holdings, Inc.
Filing Date: 2025-05-14
Form: 10-Q
Item: Part I, Item 8
Chunk 218
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-Out Shares, Public Warrants and Private Placement Warrant and the derivative liability related to our term debt we extinguished in 2024 (the “Structural Derivative 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.

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.

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Results of Operations

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

Three Months EndedMarch 31,20252024Revenue, net$43,547 $53,545 Cost of goods sold20,483 23,805 Gross profit23,064 29,740 Operating expenses:Advertising2,807 2,053 Product development1,779 3,626 Selling, general and administrative21,986 24,594 Operating loss(3,508)(533)Non-operating expenses (income):Interest expense 346 4,129 Changes in fair value of derivative liabilities(144)(198)Other income, net (172)(1,083)Total non-operating expenses (income), net30 2,848 Loss before provision for income taxes(3,538)(3,381)Provision for income taxes9 10 Net loss$(3,547)$(3,391)

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

Three Months EndedMarch 31,20252024Revenue, net100 %100 %Cost of goods sold47 44 Gross profit53 56 Operating expenses:Advertising6 4 Product development4 7 Selling, general and administrative50 46 Operating loss(8)(1)Non-operating expenses (income):Interest