Grove, Inc. Announces First Quarter Financial Results

$8.4 Million in Revenue, a 188% Increase Over 2021 

Net Income Swings to Profit from Prior Year

$1.4 Million Adjusted EBITDA

HENDERSON, NV – (NewMediaWire) – November 15, 2021 – Grove, Inc. (NASDAQ:GRVI) (“Grove” or the “Company”), a global innovator in hemp, health, and wellness, today announced financial results for the first quarter period ended September 30, 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

Financial Highlights

  • Revenues rose to $8.4 million from $2.9 million in first quarter of fiscal year 2021
  • $0.03 basic earnings per share compared to loss of $0.05 in prior year period
  • Company ended quarter with $13.0 million in cash
  • $1.4 million in adjusted EBITDA

Allan Marshall, Chief Executive Officer of Grove, stated, “Grove’s first quarter financial results reflect strong growth in revenues, net income and cash flow as our team continues to execute our vision to transform the landscape of how hemp and wellness products are produced, bought and sold. Seasonally, our first quarter is typically our slowest, yet $8.4 million signifies exponential growth and sets us up for a strong fiscal year. Our revenue increased primarily driven by strong growth in the sales of new products from our direct-to-consumer business. 

“We made two significant acquisitions during the first quarter, substantially broadening our footprint in strong growth sectors. VitaMedica, completed in August gives Grove a solid presence in the Nutraceutical market, and the August acquisition announcement of Interactive Offers stakes our presence in the Programmatic Advertising market, estimated by some to be a $95.5 billion market by 2026. Continued cash flow growth allowed us to make these acquisitions without a meaningful reduction in our cash balance, which ended the quarter at $13.0 million. We look forward to continued momentum through the balance of the 2022 fiscal year.”

Liquidity and Capital Resources

    As of

September 30,

    As of

June 30,

Current assets   $ 17,789,134     $ 18,293,083  
Current liabilities   $ 4,249,903     $ 5,819,161  
Working capital   $ 13,539,231     $ 12,473,922  

Cash Flows

    Three Months Ended September 30,  
    2021     2020  
Cash flows provided by (used in) operating activities   $ 817,357     $ (637,185 )
Cash flows (used in) provided by investing activities     (2,166,869 )     270,668  
Cash flows (used in) financing activities     (150,000 )     (12,000 )
Net decrease in cash during period   $ (1,499,512 )   $ (378,517 )

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)
Three Months Ended September 30,
    2021     2020  
Net income (Net loss) GAAP   $ 511,711     $ (809,073 )
Income tax     208,871        
Interest expense, net     15,956       42,691  
Depreciation and amortization     365,737       279,899  
Stock compensation     593,098       93,193  
Gain on SBA PPP loan extinguishment     (300,995 )      
Loss on sale of asset           6,296  
Non-GAAP adjusted EBITDA   $ 1,394,378     $ (386,994 )


     September 30,     June 30,  
    2021     2021  
Current assets            
Cash   $ 13,034,699     $ 14,534,211  
Accounts receivable, net of allowance for doubtful accounts of $57,500 and $57,500, respectively     1,103,246       1,277,662  
Inventory     3,091,744       2,094,952  
Prepaid expenses and other receivables     559,445       386,258  
Total current assets     17,789,134       18,293,083  
Property and equipment, net     2,893,185       2,832,400  
Intangible assets, net     3,218,783       1,845,166  
Goodwill     3,685,593       2,413,813  
Deferred tax asset     1,252,269       1,403,591  
Other assets     49,068       49,068  
Right-of-use asset     323,942       417,443  
Total other assets     11,422,840       8,961,481  
Total assets   $ 29,211,974     $ 27,254,564  
Current liabilities                
Accounts payable   $ 1,038,031     $ 1,604,723  
Accrued compensation     859,324       1,020,936  
Deferred revenue     864,698       485,973  
Accrued liabilities     276,372       296,021  
Acquisition payable     74,589       1,764,876  
Current portion of notes payable     1,000,000       447,100  
Current portion of operating lease payable     136,889       199,532  
Total current liabilities     4,249,903       5,819,161  
Operating lease payable, net of current portion     183,673       217,430  
Total long-term liabilities     183,673       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     15,711       15,262  
Additional paid in capital     28,420,512       25,372,247  
Accumulated deficit     (3,658,325 )     (4,170,036 )
Total stockholders’ equity     24,778,398       21,217,973  
Total liabilities and stockholders’ equity   $ 29,211,974     $ 27,254,564  




    Three Month’s Ended September 30,  
    2021     2020  
Revenue     8,449,754       2,937,442  
Cost of Revenue     3,067,376       1,619,208  
Gross profit     5,382,378       1,318,234  
Operating expenses                
Sales and marketing     1,511,687       365,258  
General and administrative expenses     3,435,148       1,713,062  
      4,946,835       2,078,320  
Income (loss) from operations     435,543       (760,086 )
Other income (expense), net                
Interest (expense) income, net     (15,956 )     (42,691 )
Loss on sale of assets           (6,296 )
Gain on SBA PPP loan extinguishment     300,995        
Other income (expense), net     285,039       (48,987 )
Income (loss) before income tax     720,582       (809,073 )
Income tax expense     (208,871 )      
Net income (loss)     511,711       (809,073 )
Basic income (loss) per share   $ 0.03     $ (0.08 )
Diluted income (loss) per share   $ 0.03     $ (0.08 )
Weighted average shares outstanding     15,452,453       10,384,439  
Fully diluted weighted average shares outstanding     17,220,564       10,384,439