Grove, Inc. Announces Second Quarter Financial Results

  • $10.7 Million in Second Quarter Revenue, a 156% Increase Over Prior Year
  • $1.5 Million Adjusted EBITDA for Second Quarter

HENDERSON, NV / February 15, 2021 / Grove, Inc. (NASDAQ:GRVI) (“Grove” or the “Company”), a global innovator in hemp, health, and wellness, today announced financial results for the second quarter period ended December 31, 2021.  Investors are encouraged to read the Company’s quarterly report on Form 10-Q which will be filed with the Securities and Exchange Commission (the “SEC”), contains additional information, and will be posted at

Year to Date Financial Highlights

  • Revenues rose to $19.1 million from $7.1 million, a 167% increase.
  • $0.04 basic earnings per share compared to loss of $0.06.
  • $2.9 million in adjusted EBITDA.
  • 103,750 shares of Grove common stock repurchased with cash flow from operations.

Allan Marshall, Chief Executive Officer of Grove, stated, “Our team continues to perform and drive growth across all parts of our business, with a 169% increase year over year even with substantial headwinds.  We face shortages and rising prices on all raw materials, employee shortages, higher wages, drastic increases in shipping cost across all parts of the business. However, we were able to maintain growth and profits offsetting increased costs with higher volumes and pricing power.

Our Upexi Amazon aggregation business launch is beginning to come together, and we are seeing multiple submissions a week from companies looking to be acquired. Our strong cash flow gives us great flexibility to expand the Brand aggregation business and become more active with acquisitions this year” 


Liquidity and Capital Resources

  As of December 31, 2021  As of June 30, 2021 
Current assets $12,097,966  $18,293,083 
Current liabilities $5,262,529  $5,819,161 
Working capital $6,835,437  $12,473,922 

Cash Flows

  Six Months Ended December 31, 
  2021  2020 
Cash flows provided by (used in) operating activities $1,212,609  $(669,321)
Cash flows (used in) provided by investing activities  (8,999,854)  241,785 
Cash flows (used in) financing activities  (151,004)  738,000 
Net decrease in cash during period $(7,938,249) $310,464 

About Grove, Inc.

Grove, Inc. is a global innovator in hemp, health and wellness. The company has an array of in-house brands, and operates in multiple verticals including SaaS programmatic ad technology, and a wholly owned division dedicated to acquiring high growth e-commerce brands. The company sells to numerous consumer markets including the botanical, beauty, pet care, and functional foods sectors. It seeks to take advantage of an emerging worldwide trend in consumer health products selling through Amazon and E-commerce.

Company Contact

Andrew Norstrud


Phone: (702) 332-5591

Investor Relations Contact

TraDigital IR

John McNamara


Phone: (917) 658-2602

Forward-Looking Statements

This press release contains statements that constitute “forward-looking statements,” including with respect to the Company’s business strategy, product development and industry trends. No assurance can be given that the offering will be completed on the terms described, or at all. Forward-looking statements are subject to numerous conditions, many of which are beyond the control of the Company, including those set forth in the Risk Factors section of the Company’s registration statement and preliminary prospectus for the offering filed with the SEC. Copies are available on the SEC’s website, The Company undertakes no obligation to update these statements for revisions or changes after the date of this release, except as required by law.

Use of Non-GAAP Financial Measures

The Company discloses and uses the above-mentioned non-GAAP financial measures internally as a supplement to GAAP financial information to evaluate its operating performance, for financial planning purposes, to establish operational goals, for compensation plans, to measure debt service capability, for capital expenditure planning and to determine working capital needs and believes that these are useful financial measures also used by investors. Non-GAAP adjusted EBITDA is defined as GAAP net income or net loss before interest, taxes, depreciation and amortization (EBITDA) adjusted for the non-cash stock compensation and stock option expense, acquisition, integration & restructuring expenses, charges and gains or losses from extinguishment of debt and other non-cash items. Non-GAAP EBITDA and non-GAAP adjusted EBITDA are not terms defined by GAAP and, as a result, the Company’s measure of non-GAAP EBITDA and non-GAAP adjusted EBITDA might not be comparable to similarly titled measures used by other companies. Generally, a non-GAAP financial measure is a numerical measure of a company’s performance, financial position, or cash flow that either excludes or includes amounts that are not normally included in the most directly comparable measure calculated and presented in accordance with GAAP. The non-GAAP financial measures discussed above, however, should be considered in addition to, and not as a substitute for, or superior to net income or net loss as reported for GAAP on the Consolidated Statements of Operations, cash and cash flows on the Consolidated Statement of Cash Flows or other measures of financial performance prepared in accordance with GAAP, and as reflected on the Company’s financial statements prepared in accordance with GAAP. These non-GAAP financial measures are not a substitute for or presented in lieu of financial measures provided by GAAP and all measures and disclosures of financial information pursuant to GAAP should be read to obtain a comprehensive and thorough understanding of the Company’s financial results. The reconciliations of non-GAAP EBITDA and non-GAAP adjusted EBITDA to GAAP operating income (loss) and/or GAAP net income (net loss) referred to in the highlights or elsewhere are provided in the schedules that are a part of this document.

Reconciliation of Non-GAAP Adjusted EBITDA to GAAP Net Income (Net Loss)
Six Months Ended December 31,
  2021  2020 
Net income (Net loss) GAAP $576,544  $(706,553)
Income tax  235,033    
Interest expense, net  42,561   84,740 
Depreciation and amortization  914,511   503,244 
Stock compensation  1,479,293   354,817 
Gain on SBA PPP loan extinguishment  (300,995)   
Loss on sale of asset     6,292 
Non-GAAP adjusted EBITDA $2,946,947  $(242,540)
   December 31,  June 30, 
  2021  2021 
Current assets      
Cash $6,595,962  $14,534,211 
Accounts receivable, net of allowance for doubtful accounts of $92,500 and $57,500, respectively  1,247,218   1,277,662 
Inventory  3,681,428   2,094,952 
Prepaid expenses and other receivables  573,358   386,258 
Total current assets  12,097,966   18,293,083 
Property and equipment, net  7440,332   2,832,400 
Intangible assets, net  5,189,234   1,845,166 
Goodwill  8,533,923   2,413,813 
Deferred tax asset  1,225,917   1,403,591 
Other assets  69,068   49,068 
Right-of-use asset  648,626   417,443 
Total other assets  23,107,100   8,961,481 
Total assets $35,205,066  $27,254,564 
Current liabilities        
Accounts payable $895,846  $1,604,723 
Accrued compensation  679,000   1,020,936 
Deferred revenue  959,329   485,973 
Accrued liabilities  873,585   296,021 
Acquisition payable  600,000   1,764,876 
Current portion of notes payable  1,006,197   447,100 
Current portion of operating lease payable  248,572   199,532 
Total current liabilities  5,262,529   5,819,161 
Operating lease payable, net of current portion  395,085   217,430 
Notes payable, net of current portion  26,766    
Total long-term liabilities  421,851   217,430 
Commitments and contingencies      
Stockholders’ equity        
Preferred stock, $0.001 par value, 100,000,000 shares authorized, and 500,000 and 500,000 shares issued and outstanding, respectively  500   500 
Common stock, $0.001 par value, 100,000,000 shares authorized, and 15,711,339 and 15,262,394 shares issued and outstanding, respectively  16,378   15,262 
Additional paid in capital  33,097,300   25,372,247 
Accumulated deficit  (3,593,492)  (4,170,036)
Total stockholders’ equity  29,520,686   21,217,973 
Total liabilities and stockholders’ equity $35,205,066  $27,254,564 
  Three Month’s Ended December 31,  Six Month’s Ended December 31, 
  2021  2020  2021  2020 
Revenue  10,666,781   4,164,894   19,116,535   7,102,336 
Cost of Revenue  3,956,358   2,234,259   7,023,734   3,853,467 
Gross profit  6,710,423   1,930,635   12,092,801   3,248,869 
Operating expenses                
Sales and marketing  1,852,118   459,446   3,363,805   824,704 
General and administrative expenses  4,740,705   1,714,484   8,175,853   3,427,546 
   6,592,823   2,173,930   11,539,658   4,252,250 
Income (loss) from operations  117,600   (243,295)  553,143   (1,003,381)
Other income (expense), net                
Interest (expense) income, net  (26,605)  (42,049)  (42,561)  (84,740)
Other (expense) income, net     4      (6,292)
Settlement of cancelled lease     387,860      387,860 
Gain on SBA PPP loan extinguishment        300,995    
Other income (expense), net  (26,605)  345,815   258,434   296,828 
Income (loss) before income tax  90,995   102,520   811,577   (706,553)
Income tax expense  (26,162)     (235,033)   
Net income (loss)  64,833   102,520   576,544   (706,553)
Basic income (loss) per share $0.00  $0.01  $0.04  $(0.06)
Diluted income (loss) per share $0.00  $0.01  $0.03  $(0.06)
Weighted average shares outstanding  16,378,006   13,455,013   15,915,154   11,830,013 
Fully diluted weighted average shares outstanding  17,685,717   13,455,013   17,453,141   11,830,013 
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