Company: GROVW
Filing Date: 2025-05-14
Form Type: 10-Q
Source: 0001628280-25-025541
Chunk: 145

Company: Grove Collaborative Holdings, Inc.
Filing Date: 2025-05-14
Form: 10-Q
Item: Part I, Item 1
Chunk 145
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ivative Liability”). Subsequent changes in fair value of the Structural Derivative Liability until settlement were recognized in the condensed consolidated statements of operations. The Structural Derivative Liability was extinguished during the year ended December 31, 2024.The Private Placement Warrants are identical to the Public Warrants, with certain exceptions as defined in Note 8, Common Stock and Warrants. As the number of outstanding Public Warrants and Private Placement Warrants did not change as a result of the reverse split, five Public Warrants or five Private Placement Warrants must be bundled together to receive one share of the Company’s Class A common stock. The Private Placement Warrants and Public Warrants are classified as Level 3 and their value was determined by using a Black-Scholes Model with the following assumptions:March 31,2025December 31,2024Fair value of common stock$1.35$1.40Exercise Price$57.50$57.50Risk-free interest rate3.96%4.26%Expected term (in years)2.292.5Volatility81.09%79.86%Dividend yield—— The Earn-Out Shares are classified as Level 3 and their fair values were estimated using a Monte Carlo options pricing model utilizing assumptions related to expected stock-price volatility, expected life, risk-free interest rate and dividend yield. The Company estimated the expected volatility assumption using an average of the implied volatility of its common stock and an implied volatility based on its peer companies. 

14

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

The following tables set forth the Company’s financial instruments that were measured at fair value on a recurring basis as of the dates indicated by level within the fair value hierarchy (in thousands):March 31, 2025Level 1Level 2Level 3TotalFinancial Assets:Cash equivalents: Money market funds$7,712 $— $— $7,712 Total$7,712 $— $— $7,712 Financial Liabilities:Earn-Out Shares$— $— $1,120 $1,120 Public Warrants— — 5 5 Private Placement Warrants— — 5 5 Total$— $— $1,130 $1,130 December 31, 2024Level 1Level 2Level 3TotalFinancial Assets:Cash equivalents: