Grove, Inc. Announces Fiscal Year 2021 Audited Financial Results

Revenues Reach $24.1 Million, a 250% Increase Over 2020 
Net Earnings of $2.9 Million or $.25 Per Share

HENDERSON, NV – (NewMediaWire) – September 29, 2021 – Grove, Inc. (NASDAQ:GRVI) (“Grove” or the “Company”), a global innovator in hemp, health, and wellness, today announced audited financial results for its fiscal year ended June 30, 2021 which surpassed preliminary results issued on June 28, 2021.   Investors are encouraged to read the Company’s annual report on Form 10-K which was filed with the Securities and Exchange Commission (the “SEC”), contains additional information, and is posted at

Financial Highlights

  • $24.1 million in revenue
  • $2.9 million in net income
  • $0.25 basic earnings per share
  • $2.9 million in cash flow provided by operations
  • $3.2 million in adjusted EBITDA
  • Strong margin expansion quarter over quarter
  • Strong revenue growth quarter over quarter
  • 4th Quarter revenues of $10.64 million surpassed a 361% growth over 4th quarter revenues in the prior year

Allan Marshall, Chief Executive Officer of Grove, stated, “Our team surpassed every internal and external projection for revenue growth, income growth, earnings per share and customer acquisition numbers. We finished the year with exceptional growth and significant momentum in the second half of the year. Our team has found a way to grow while maintaining profits in an industry that historically has not been able to produce these types of results. We enter 2022 with momentum and look to continue our outperformance in the current year.”

Andrew Norstrud, Chief Financial Officer of Grove, stated, “Cash flow quarter over quarter exceeded our projections and ended with our strongest quarter to date. The company finished the quarter with $14.5 million in cash and minimal debt that has since been paid. The balance sheet is strong with net working capital of $12.5 million and stockholders’ equity of $21.2 million. The company’s financial position strengthened every quarter and we finished with great momentum.”

Liquidity and Capital Resources

Working Capital

    As of
June 30, 2021
    As of
June 30, 2020
Current assets   $ 18,293,083     $ 2,649,674  
Current liabilities   $ 5,819,161     $ 3,519,434  
Working capital   $ 12,473,922     $ (869,760 )

Cash Flows

    Years Ended June 30,  
    2021     2020  
Cash flows provided by (used in) operating activities   $ 2,939,306     $ (4,164,746 )
Cash flows used in investing activities     (1,281,007 )     (1,462,915 )
Cash flows provided by financing activities     11,988,395       2,817,746  
Net increase (decrease) in cash during period   $ 13,646,694     $ (2,809,915 )

At June 30, 2021, the Company had cash of $14,534,211 or an increase of $13,646,694 from June 30, 2020. The increase of cash provided by operating activities is primarily related to the net income and the sale of the Company common stock.

About Grove, Inc.
Grove, Inc. is in the business of developing, producing, marketing and selling quality products and end consumer products containing the industrial hemp plant extract Cannabidiol (“CBD”), as well as diversified products in other verticals. The Company sells to numerous consumer markets including the botanical, beauty care, pet care and functional food sectors. It seeks to take advantage of an emerging worldwide trend to re-energize the production of industrial hemp and to foster its many uses for consumers.

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)
Year Ended June 30,
    2021     2020  
Net income (Net loss) GAAP   $ 2,978,948     $ (5,383,673  )
Income tax     (1,282,815      
Interest expense, net     530,449       138,406  
Depreciation and amortization     1,030,021       611,346  
Stock compensation     738,932       372,770  
Impairment of lease cancellation           588,347  
Gain on lease settlement     (387,860  )      
Gain on SBA PPP loan extinguishment      (403,277  )      
Gain on sale of asset     (8,708  )     (180,211  )
Non-GAAP adjusted EBITDA   $      3,195,690     $ (3,853,015  )


Grove Inc
Consolidated Balance Sheets

    June 30,     June 30,  
    2021     2020  
Current assets            
Cash   $ 14,534,211     $ 887,517  
Accounts receivable, net of allowance for doubtful accounts of $57,500 and $10,000, respectively     1,277,662       165,147  
Inventory     2,094,952       1,448,448  
Prepaid expenses and other current assets     386,258       148,562  
Total current assets     18,293,083       2,649,674  
Property and equipment, net     2,832,400       1,687,273  
Intangible assets, net     1,845,166       1,240,260  
Goodwill     2,413,813       493,095  
Deferred tax asset     1,403,591        
Other assets     49,068       37,068  
Right-of-use asset     417,443       294,835  
Total other assets     8,961,481       3,752,531  
Total assets   $ 27,254,564     $ 6,402,205  
Current liabilities                
Accounts payable   $ 1,604,723     $ 484,333  
Accrued compensation     1,020,936       195,399  
Deferred revenue     485,973       473,320  
Accrued liabilities     296,021       221,664  
Acquisition payable     1,764,876        
Current portion of notes payable     447,100       183,595  
Convertible notes payable           1,500,000  
Current portion of operating lease payable     199,532       461,123  
Total current liabilities     5,819,161       3,519,434  
Notes payable, net of current portion           365,350  
Operating lease payable, net of current portion     217,430       338,040  
Total long-term liabilities     217,430       703,390  
Commitments and contingencies            
Stockholders’ equity                
Preferred stock, $0.001 par value, 100,000,000 shares authorized, and 500,000 and 0 shares issued and outstanding, respectively     500        
Common stock, $0.001 par value, 100,000,000 shares authorized, and 15,262,394 and 10,222,223 shares issued and outstanding, respectively     15,262       10,223  
Additional paid in capital     25,372,247       7,314,341  
Accumulated deficit     (4,170,036 )     (7,098,984 )
Total stockholders’ equity attributable to Grove, Inc.     21,217,973       225,580  
Non-controlling interest in subsidiary           1,953,801  
Total stockholders’ equity     21,217,973       2,179,381  
Total liabilities and stockholders’ equity   $ 27,254,564     $ 6,402,205  

Grove Inc.
Consolidated Statements of Operations

    Year Ended June 30,  
    2021     2020  
Product revenue     24,095,025       6,159,013  
Trade show revenue           1,253,847  
      24,095,025       7,412,860  
Product costs     12,196,123       4,280,909  
Trade show costs           561,988  
      12,196,123       4,842,897  
Gross profit     11,898,902       2,569,963  
Operating expenses                
Sales and marketing     2,388,211       1,370,964  
General and administrative expenses     8,083,954       6,037,329  
      10,472,165       7,408,293  
Income (loss) from operations     1,426,737       (4,838,330  )
Other expense (income), net                
Interest expense (income), net     530,449       138,406  
Gain on sale of assets     (8,708  )     (180,211  )
Gain on SBA PPP loan extinguishment     (403,277  )      
Settlement of cancelled lease     (387,860  )      
Impairment of cancelled lease expense           588,347  
Other expense (income), net     (269,396  )     546,542  
Income (loss) before income tax     1,696,133       (5,384,872  )
Income tax benefit (expense)   1,282,815        
Net income (loss)     2,978,948       (5,384,872  )
Net loss attributable to noncontrolling interest           (1,199  )
Deemed dividend related to the issuance of Series A Preferred Stock     (50,000  )      
Net income (loss) attributable to Grove, Inc.   $ 2,928,948     $ (5,383,673  )
Basic income (loss) per share   $ 0.25     $ (0.53  )
Diluted income (loss) per share   $ 0.21     $ (0.53  )
Weighted average shares outstanding     11,930,378       10,097,075  
Fully diluted weighted average shares outstanding     14,257,934       10,097,075