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, 2022 --
InvestorsHub NewsWire -- 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
https://groveinc.io/.
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
Email:
investorinfo@cbd.io
Phone: (702)
332-5591
Investor Relations
Contact
TraDigital
IR
John McNamara
Email:
john@tradigitalir.com
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,
www.sec.gov. 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
|
)
|
GROVE,
INC.
|
CONDENSED
CONSOLDIATED
BALANCE SHEETS (UNAUDITED)
|
|
|
December
31,
|
|
|
June
30,
|
|
|
|
2021
|
|
|
2021
|
|
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
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
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
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
|
|
GROVE,
INC.
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
|
|
|
Three
Month's Ended December 31,
|
|
|
Six
Month's Ended December 31,
|
|
|
|
2021
|
|
|
2020
|
|
|
2021
|
|
|
2020
|
|
Revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
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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