Grove, Inc. Announces Fiscal Year 2021 Audited Financial Results
September 29 2021 - 8:00AM
via NewMediaWire -- 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 https://groveinc.io/
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 ofJune 30, 2021 |
|
|
As ofJune 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 NorstrudEmail:
investorinfo@cbd.ioPhone: (702) 332-5591
Investor Relations Contact
TraDigital IRJohn
McNamaraEmail: john@tradigitalir.comPhone: (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) |
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 IncConsolidated
Balance Sheets
|
|
June 30, |
|
|
June 30, |
|
|
|
2021 |
|
|
2020 |
|
|
|
|
|
|
|
|
ASSETS |
|
|
|
|
|
|
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 |
|
|
|
|
|
|
|
|
|
|
LIABILITIES
AND STOCKHOLDERS' EQUITY |
|
|
|
|
|
|
|
|
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 |
|
|
|
|
|
|
|
|
Revenue |
|
|
|
|
|
|
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 |
|
Grove (NASDAQ:GRVI)
Historical Stock Chart
From Mar 2024 to Apr 2024
Grove (NASDAQ:GRVI)
Historical Stock Chart
From Apr 2023 to Apr 2024