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/
$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 EBITDAStrong Margin expansion quarter over quarterStrong Revenue growth Quarter over Quarter4th 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.”
Liquidity and Capital Resources
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)
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.
Phone: (702) 332-5591
Investor Relations Contact
Phone: (917) 658-2602
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)
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
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 The post Grove, Inc. Announces Fiscal Year 2021 Audited Financial Results first appeared on Smallcaps Daily.