Company: GROVW
Filing Date: 2025-03-19
Form Type: 10-K
Source: 0001628280-25-013839
Chunk: 232

Company: Grove Collaborative Holdings, Inc.
Filing Date: 2025-03-19
Form: 10-K
Item: Item 8
Chunk 232
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 with 33% of the shares vesting each year from the grant date for 3 years. During the year ended December 31, 2024 stock-based compensation expense related to the Executive Chair Award was $0.2 million.Employee Stock Purchase PlanIn May 2022, the Company’s board of directors adopted the 2022 Employee Stock Purchase Plan (the “ESPP”), which was subsequently approved by the Company’s stockholders. The ESPP went into effect on November 16, 2022. Subject to certain limitations contained therein, the ESPP allows eligible employees to contribute, through payroll deductions, up to 20% of their eligible compensation to purchase the Company’s Class A Common Stock at a discounted price per share. The Company recognized $0.6 million and $0.8 million of expense related to the ESSP for the years ended December 31, 2024 and 2023, respectively. There were 279,133 shares of Class A Common Stock purchased under the ESPP during the year ended December 31, 2024.The following assumptions were used in estimating the fair values of shares under the ESPP for the period indicated:Year Ended December 31, 2024Fair value of common stock$1.29 - $1.53Expected term (in years)0.50 - 2.00Volatility60.00% - 91.00%Risk-free interest rate4.31% - 5.40%Dividend yield—

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

Stock-Based Compensation Expense For the years ended December 31, 2024 and 2023 the Company recognized a total of $12.0 million and $15.5 million of stock-based compensation expense, respectively, related to stock options and RSUs granted to employees and non-employees. Stock-based compensation expense was predominately recorded in selling, general and administrative expenses in the consolidated statements of operations for each period presented. As of December 31, 2024, the total unrecognized compensation expense related to unvested options and RSUs was $7.4 million, which the Company expects to recognize over an estimated weighted average period of 1.8 years. Equity award modifications during the presented periods were not material.

12.    Provision for Income Taxes

The Company is subject to U.S. federal, state, and local corporate income taxes.The Company’s effective income tax rate reconciliation is composed of the