GROVE, INC.

GRVI
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Grove : 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 (Form 8-K)

09/29/2021 | 05:12pm

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 / 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 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 10.64M 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."

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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

Email: investorinfo@cbd.io

Phone: (702) 332-5591

Investor Relations Contact

TraDigital IR

John McNamara

Email: john@tradigitalir.com

Phone: (917) 658-2602

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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 )
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Grove Inc

Consolidated 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
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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
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Disclaimer

Grove Inc. published this content on 29 September 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 29 September 2021 21:11:06 UTC.

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