Cover Page
Cover Page - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Mar. 06, 2024 | Jun. 30, 2023 | |
Entity Information [Line Items] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2023 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Transition Report | false | ||
Entity File Number | 001-40263 | ||
Entity Registrant Name | Grove Collaborative Holdings, Inc. | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 88-2840659 | ||
Entity Address, Address Line One | 1301 Sansome Street | ||
Entity Address, City or Town | San Francisco | ||
Entity Address, State or Province | CA | ||
Entity Address, Postal Zip Code | 94111 | ||
City Area Code | 800 | ||
Local Phone Number | 231-8527 | ||
Title of 12(b) Security | Class A common stock, par value $0.0001 | ||
Trading Symbol | GROV | ||
Security Exchange Name | NYSE | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | true | ||
Entity Ex Transition Period | false | ||
Entity Shell Company | false | ||
ICFR Auditor Attestation Flag | false | ||
Document Financial Statement Error Correction | false | ||
Entity Public Float | $ 43.9 | ||
Documents Incorporated by Reference | Portions of the registrant’s definitive Proxy Statement for the 2024 Annual Meeting of Stockholders to be filed with the U.S. Securities and Exchange Commission pursuant to Regulation 14A not later than 120 days after the end of the fiscal year covered by this Annual Report on Form 10-K are incorporated by reference in Part III of this Annual Report on Form 10-K. | ||
Entity Central Index Key | 0001841761 | ||
Document Fiscal Year Focus | 2023 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Class A Common Stock | |||
Entity Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 32,477,667 | ||
Class B Common Stock | |||
Entity Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 5,697,250 |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2023 | |
Audit Information [Abstract] | |
Auditor name | Ernst & Young LLP |
Auditor location | San Mateo, California |
Auditor Firm ID | 42 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 86,411 | $ 81,084 |
Restricted cash | 5,650 | 11,950 |
Inventory, net | 28,776 | 44,132 |
Prepaid expenses and other current assets | 3,359 | 4,844 |
Total current assets | 124,196 | 142,010 |
Restricted cash | 2,802 | 2,951 |
Property and equipment, net | 11,625 | 14,530 |
Operating lease right-of-use assets | 9,612 | 12,362 |
Other long-term assets | 2,507 | 2,192 |
Total assets | 150,742 | 174,045 |
Current liabilities: | ||
Accounts payable | 8,074 | 10,712 |
Accrued expenses | 16,020 | 31,354 |
Deferred revenue | 7,154 | 10,878 |
Operating lease liabilities, current | 3,489 | 3,705 |
Other current liabilities | 306 | 249 |
Debt, current | 0 | 575 |
Total current liabilities | 35,043 | 57,473 |
Debt, noncurrent | 71,662 | 60,620 |
Operating lease liabilities, noncurrent | 14,404 | 16,192 |
Derivative liabilities | 11,511 | 13,227 |
Total liabilities | 132,620 | 147,512 |
Commitments and contingencies (Note 7) | ||
Redeemable convertible preferred stock, $0.0001 par value – 100,000,000 shares authorized at December 31, 2023 and December 31, 2022, respectively; 10,000 and no shares issued and outstanding at December 31, 2023 and December 31, 2022, respectively | 10,000 | 0 |
Stockholders’ equity: | ||
Common stock - Class A shares, $0.0001 par value – 600,000,000 shares authorized at December 31, 2023 and December 31, 2022; 32,183,695 and 25,123,332 shares issued and outstanding at December 31, 2023 and December 31, 2022, respectively; Class B shares, $0.0001 par value – 200,000,000 shares authorized at December 31, 2023 and December 31, 2022, respectively; 5,724,199 and 10,447,927 shares issued and outstanding at December 31, 2023 and December 31, 2022, respectively | 4 | 4 |
Additional paid-in capital | 629,208 | 604,387 |
Accumulated deficit | (621,090) | (577,858) |
Total stockholders’ equity | 8,122 | 26,533 |
Total liabilities, redeemable convertible preferred stock and stockholders’ equity | $ 150,742 | $ 174,045 |
Temporary equity, shares authorized (in shares) | 100,000,000 | 100,000,000 |
Class A Common Stock | ||
Stockholders’ equity: | ||
Common stock, shares authorized (in shares) | 600,000,000 | 600,000,000 |
Class B Common Stock | ||
Stockholders’ equity: | ||
Common stock, shares authorized (in shares) | 200,000,000 | 200,000,000 |
Consolidated Balance Sheets - P
Consolidated Balance Sheets - Parenthetical - $ / shares | Dec. 31, 2023 | Dec. 31, 2022 |
Temporary equity, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Temporary equity, shares authorized (in shares) | 100,000,000 | 100,000,000 |
Temporary equity, shares issued (in shares) | 10,000 | 0 |
Temporary equity, shares outstanding (in shares) | 10,000 | 0 |
Class A Common Stock | ||
Common stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized (in shares) | 600,000,000 | 600,000,000 |
Common stock, shares issued (in shares) | 32,183,695 | 25,123,332 |
Common stock, shares outstanding (in shares) | 32,183,695 | 25,123,332 |
Class B Common Stock | ||
Common stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized (in shares) | 200,000,000 | 200,000,000 |
Common stock, shares issued (in shares) | 5,724,199 | 10,447,927 |
Common stock, shares outstanding (in shares) | 5,724,199 | 10,447,927 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Revenues [Abstract] | |||
Revenue, net | $ 259,278 | $ 321,527 | $ 383,685 |
Cost of goods sold | 121,919 | 166,875 | 195,181 |
Gross profit | 137,359 | 154,652 | 188,504 |
Operating expenses: | |||
Advertising | 21,292 | 66,269 | 107,313 |
Product development | 16,401 | 22,503 | 23,408 |
Selling, general and administrative | 134,929 | 206,863 | 186,638 |
Operating loss | (35,263) | (140,983) | (128,855) |
Non-operating expenses: | |||
Interest expense | 16,077 | 9,685 | 5,202 |
Loss on extinguishment of debt | 0 | 4,663 | 1,027 |
Changes in fair value of derivative liabilities | (216) | (71,532) | 0 |
Other expense (income), net | (7,930) | 3,862 | 760 |
Total non-operating expenses (income), net | 7,931 | (53,322) | 6,989 |
Loss before provision for income taxes | (43,194) | (87,661) | (135,844) |
Provision for income taxes | 38 | 54 | 52 |
Net loss | (43,232) | (87,715) | (135,896) |
Less: Accretion on redeemable convertible preferred stock | (957) | 0 | 0 |
Less: Accumulated dividends on redeemable convertible preferred stock | (233) | 0 | 0 |
Net loss per share attributable to common stockholders, basic | (44,422) | (87,715) | (135,896) |
Net loss per share attributable to common stockholders, diluted | $ (44,422) | $ (87,715) | $ (135,896) |
Net loss per share attributable to common stockholders, basic (in dollars per share) | $ (1.28) | $ (4.85) | $ (79.28) |
Net loss per share attributable to common stockholders, diluted (in dollars per share) | $ (1.28) | $ (4.85) | $ (79.28) |
Weighted-average shares used in computing net loss per share attributable to common stockholders, basic (in shares) | 34,797,582 | 18,101,407 | 1,714,230 |
Weighted-average shares used in computing net loss per share attributable to common stockholders, diluted (in shares) | 34,797,582 | 18,101,407 | 1,714,230 |
Consolidated Statements of Conv
Consolidated Statements of Convertible Preferred Stock, Contingently Redeemable Convertible Common Stock and Stockholders’ Equity (Deficit) - USD ($) $ in Thousands | Total | ELOC Agreement | HGI Subscription Agreement | Structural Debt Facility | Previously Reported | Convertible Preferred Stock | Convertible Preferred Stock Previously Reported | Convertible Preferred Stock Revision of Prior Period, Adjustment | Contingently Redeemable Convertible Common Stock | Common Stock | Common Stock ELOC Agreement | Common Stock HGI Subscription Agreement | Common Stock Structural Debt Facility | Common Stock Previously Reported | Common Stock Revision of Prior Period, Adjustment | Additional Paid-In Capital | Additional Paid-In Capital ELOC Agreement | Additional Paid-In Capital HGI Subscription Agreement | Additional Paid-In Capital Structural Debt Facility | Additional Paid-In Capital Previously Reported | Accumulated Deficit | Accumulated Deficit Previously Reported | ||||||
Increase (Decrease) in Temporary Equity [Roll Forward] | ||||||||||||||||||||||||||||
Temporary equity, balances at ending of period | [1] | $ 487,918 | $ 487,918 | |||||||||||||||||||||||||
Temporary equity, balances at beginning of period (in shares) at Dec. 31, 2020 | [1] | 22,959,000 | 114,795,000 | 91,836,000 | ||||||||||||||||||||||||
Temporary equity, balances at ending of period (in shares) at Dec. 31, 2021 | [1] | 22,959,000 | ||||||||||||||||||||||||||
Balances at beginning of period (in shares) at Dec. 31, 2020 | [1] | 1,694,000 | 8,468,000 | 6,774,000 | ||||||||||||||||||||||||
Balances at beginning of period at Dec. 31, 2020 | $ (339,641) | $ (339,641) | $ 0 | [1] | $ 14,606 | $ 14,606 | $ (354,247) | $ (354,247) | ||||||||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||||||||||||
Issuance of common stock warrants | 1,622 | 1,622 | ||||||||||||||||||||||||||
Issuance of common stock for services (in shares) | [1] | 2,000 | ||||||||||||||||||||||||||
Issuance of common stock for services | 49 | 49 | ||||||||||||||||||||||||||
Issuance of common stock upon exercise of stock options (in shares) | [1] | 152,000 | ||||||||||||||||||||||||||
Issuance of common stock upon exercise of stock options | 1,051 | 1,051 | ||||||||||||||||||||||||||
Issuance of common stock upon exercise of warrants (in shares) | [1] | 57,000 | ||||||||||||||||||||||||||
Issuance of common stock upon exercise of warrants | 150 | 150 | ||||||||||||||||||||||||||
Repurchase of early exercised options (in shares) | [1] | (31,000) | ||||||||||||||||||||||||||
Vesting of early exercise of options | 1,577 | 1,577 | ||||||||||||||||||||||||||
Stock-based compensation | 14,809 | 14,809 | ||||||||||||||||||||||||||
Net loss | (135,896) | (135,896) | ||||||||||||||||||||||||||
Balances at ending of period (in shares) at Dec. 31, 2021 | [1] | 1,874,000 | ||||||||||||||||||||||||||
Balances at ending of period at Dec. 31, 2021 | $ (456,279) | $ 0 | [1] | 33,864 | (490,143) | |||||||||||||||||||||||
Increase (Decrease) in Temporary Equity [Roll Forward] | ||||||||||||||||||||||||||||
Temporary equity, balances at ending of period | [1] | $ 487,918 | ||||||||||||||||||||||||||
Issuance of preferred stock and common stock upon exercise of warrants (in shares) | [1] | 34,000 | ||||||||||||||||||||||||||
Issuance of preferred stock and common stock upon exercise of warrants | [1] | $ 989 | ||||||||||||||||||||||||||
Issuance of convertible common stock (in shares) | [1] | 550,000 | ||||||||||||||||||||||||||
Issuance of convertible common stock | [1] | $ 27,473 | ||||||||||||||||||||||||||
Convertible preferred stock and contingently redeemable common stock conversion (in shares) | [1] | (22,993,000) | (550,000) | |||||||||||||||||||||||||
Convertible preferred stock and contingently redeemable common stock conversion | [1] | $ (488,907) | $ (27,473) | |||||||||||||||||||||||||
Temporary equity, balances at ending of period (in shares) at Dec. 31, 2022 | 0 | 0 | [2] | 0 | [2] | |||||||||||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||||||||||||
Issuance of preferred stock and common stock upon exercise of warrants (in shares) | [1] | 41,000 | ||||||||||||||||||||||||||
Issuance of preferred stock and common stock upon exercise of warrants | $ 24 | 24 | ||||||||||||||||||||||||||
Issuance of common stock warrants | 2,182 | 2,182 | ||||||||||||||||||||||||||
Convertible preferred stock and contingently redeemable common stock conversion (in shares) | [1] | 23,640,000 | ||||||||||||||||||||||||||
Convertible preferred stock and contingently redeemable common stock conversion | 516,380 | $ 2 | [1] | 516,378 | ||||||||||||||||||||||||
Issuance of common stock in connection with Business Combination, net of $17.5 million in transaction costs (in shares) | [1] | 4,184,000 | ||||||||||||||||||||||||||
Issuance of common stock in connection with Business Combination, net of $17.5 million in transaction costs | 79,553 | $ 1 | [1] | 79,552 | ||||||||||||||||||||||||
Additional Shares liability, Earn-Out liability and Public and Private Placement Warrants recognized upon Business Combination | (93,196) | (93,196) | ||||||||||||||||||||||||||
Issuance of Earn-Out Shares (in shares) | [2] | 2,800,000 | ||||||||||||||||||||||||||
Issuance of Earn-Out Shares | 1 | 1 | ||||||||||||||||||||||||||
Issuance of shares to settle Backstop Additional Shares Liability (in shares) | [2] | 655,000 | ||||||||||||||||||||||||||
Issuance of shares to settle Backstop Additional Shares Liability | 16,310 | 16,310 | ||||||||||||||||||||||||||
Issuance of Class A common stock issued to employees, net of withholding taxes (in shares) | [2] | 6,000 | ||||||||||||||||||||||||||
Issuance of Class A common stock issued to employees, net of withholding taxes | (96) | (96) | ||||||||||||||||||||||||||
Issuance of common stock upon exercise of stock options (in shares) | [2] | 66,000 | ||||||||||||||||||||||||||
Issuance of common stock upon exercise of stock options | 381 | 381 | ||||||||||||||||||||||||||
Repurchase of early exercised options (in shares) | [2] | (3,000) | ||||||||||||||||||||||||||
Issuance of shares (in shares) | [2] | 148,000 | 397,000 | 990,000 | ||||||||||||||||||||||||
Issuance of shares | $ 2,407 | $ 2,500 | $ 1,073 | $ 1 | [2] | $ 2,407 | $ 2,500 | $ 1,072 | ||||||||||||||||||||
Vesting of early exercise of options | 125 | 125 | ||||||||||||||||||||||||||
Issuance of common stock upon settlement of restricted stock units, net of tax withholdings (in shares) | [2] | 773,000 | ||||||||||||||||||||||||||
Issuance of common stock upon settlement of restricted stock units, net of tax withholdings | (2,294) | (2,294) | ||||||||||||||||||||||||||
Stock-based compensation | 45,177 | 45,177 | ||||||||||||||||||||||||||
Net loss | (87,715) | (87,715) | ||||||||||||||||||||||||||
Balances at ending of period (in shares) at Dec. 31, 2022 | [2] | 35,571,000 | ||||||||||||||||||||||||||
Balances at ending of period at Dec. 31, 2022 | 26,533 | $ 4 | [2] | 604,387 | (577,858) | |||||||||||||||||||||||
Increase (Decrease) in Temporary Equity [Roll Forward] | ||||||||||||||||||||||||||||
Temporary equity, balances at ending of period | $ 0 | $ 0 | [2] | $ 0 | [2] | |||||||||||||||||||||||
Issuance of Series A redeemable convertible preferred stock, net of issuance costs (in shares) | 10,000 | |||||||||||||||||||||||||||
Issuance of Series A redeemable convertible preferred stock, net of issuance costs | $ 9,044 | |||||||||||||||||||||||||||
Accretion on Series A redeemable convertible preferred stock | $ 956 | |||||||||||||||||||||||||||
Temporary equity, balances at ending of period (in shares) at Dec. 31, 2023 | 10,000 | |||||||||||||||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||||||||||||
Issuance of common stock warrants | $ 644 | 644 | ||||||||||||||||||||||||||
Issuance of shares to settle Backstop Additional Shares Liability (in shares) | 714,000 | |||||||||||||||||||||||||||
Issuance of shares to settle Backstop Additional Shares Liability | $ 1,407 | 1,407 | ||||||||||||||||||||||||||
Issuance of common stock upon exercise of stock options (in shares) | 37,334 | 38,000 | ||||||||||||||||||||||||||
Issuance of common stock upon exercise of stock options | $ 71 | 71 | ||||||||||||||||||||||||||
Accretion on Series A redeemable convertible preferred stock | (956) | (956) | ||||||||||||||||||||||||||
Shares issued in connection with the Employee Stock Purchase Plan (in shares) | 263,000 | |||||||||||||||||||||||||||
Shares issued in connection with the Employee Stock Purchase Plan | $ 482 | 482 | ||||||||||||||||||||||||||
Cancellation of Earn-Out Shares (in shares) | (197,284) | (197,000) | ||||||||||||||||||||||||||
Reduction in Transaction Costs | $ 9,609 | 9,609 | ||||||||||||||||||||||||||
Short swing payment | 11 | 11 | ||||||||||||||||||||||||||
Issuance of common stock upon settlement of restricted stock units, net of tax witholdings (in shares) | 1,519,000 | |||||||||||||||||||||||||||
Issuance of common stock upon settlement of restricted stock units, net of tax withholdings | (2,153) | (2,153) | ||||||||||||||||||||||||||
Stock-based compensation | 15,706 | 15,706 | ||||||||||||||||||||||||||
Net loss | (43,232) | (43,232) | ||||||||||||||||||||||||||
Balances at ending of period (in shares) at Dec. 31, 2023 | 37,908,000 | |||||||||||||||||||||||||||
Balances at ending of period at Dec. 31, 2023 | 8,122 | $ 4 | $ 629,208 | $ (621,090) | ||||||||||||||||||||||||
Increase (Decrease) in Temporary Equity [Roll Forward] | ||||||||||||||||||||||||||||
Temporary equity, balances at ending of period | $ 10,000 | |||||||||||||||||||||||||||
[1]The shares of the Company’s common, convertible preferred stock and contingently redeemable convertible common stock prior to the Closing of the Business Combination (as defined in Note 1) have been retroactively restated to reflect the exchange ratio of approximately 1.1760 established in the Merger Agreement as described in Note 3.[2]The shares of the Company’s common, convertible preferred stock and contingently redeemable convertible common stock prior to the Closing of the Business Combination (as defined in Note 1) have been retroactively restated to reflect the exchange ratio of approximately 1.1760 established in the Merger Agreement as described in Note 3. |
Consolidated Statements of Co_2
Consolidated Statements of Convertible Preferred Stock, Contingently Redeemable Convertible Common Stock and Stockholders’ Equity (Deficit) - Parenthetical $ in Millions | 12 Months Ended |
Dec. 31, 2023 USD ($) | |
Reverse recapitalization, transaction costs net | $ 17.5 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Cash Flows from Operating Activities | |||
Net loss | $ (43,232) | $ (87,715) | $ (135,896) |
Adjustments to reconcile net loss to net cash used in operating activities: | |||
Remeasurement of convertible preferred stock warrant liability | 0 | (1,616) | 1,234 |
Stock-based compensation | 15,513 | 45,660 | 14,610 |
Depreciation and amortization | 5,824 | 5,716 | 4,992 |
Changes in fair value of derivative liabilities | (216) | (71,532) | 0 |
(Reduction of transaction costs) deferred offering costs allocated to derivative liabilities upon Business Combination | (3,745) | 6,873 | 0 |
Non-cash interest expense | 3,833 | 586 | 704 |
Inventory reserve | 372 | 7,036 | 4,725 |
Loss on extinguishment of debt | 0 | 4,663 | 1,027 |
Asset impairment charges | 2,495 | 5,300 | 0 |
Other non-cash expenses | 135 | 274 | 1,274 |
Changes in operating assets and liabilities: | |||
Inventory | 14,984 | 3,285 | (12,598) |
Prepaids and other assets | 1,672 | 3,114 | (3,294) |
Accounts payable | (2,574) | (10,518) | (2,489) |
Accrued expenses | 2,216 | (5,004) | (817) |
Deferred revenue | (3,724) | (389) | 148 |
Operating lease right-of-use assets and liabilities | (1,603) | (130) | 65 |
Other liabilities | 57 | (1,864) | (774) |
Net cash used in operating activities | (7,993) | (96,261) | (127,089) |
Cash Flows from Investing Activities | |||
Purchase of property and equipment | (2,985) | (4,222) | (5,768) |
Net cash used in investing activities | (2,985) | (4,222) | (5,768) |
Cash Flows from Financing Activities | |||
Proceeds from issuance of common stock upon Closing of Business Combination | 0 | 97,100 | 0 |
Proceeds from the issuance of common stock | 0 | 4,924 | 0 |
Proceeds from issuance of redeemable convertible preferred stock, convertible common stock, and common stock warrants | 10,000 | 27,500 | 0 |
Payment of transaction costs related to the Closing of the Business Combination, the ELOC Agreement and convertible preferred stock issuance costs | (4,555) | (6,558) | (1,396) |
Proceeds from the issuance of debt | 7,500 | 70,820 | 60,000 |
Payment of debt issuance costs | (925) | (2,463) | (375) |
Repayment of debt | (575) | (5,180) | (21,932) |
Payment of debt upon extinguishment | 0 | (66,034) | (2,499) |
Net proceeds (payments) related to stock-based award activities | (1,589) | (2,017) | 912 |
Net cash provided by financing activities | 9,856 | 118,092 | 34,710 |
Net increase (decrease) in cash, cash equivalents and restricted cash | (1,122) | 17,609 | (98,147) |
Cash, cash equivalents and restricted cash at beginning of period | 95,985 | 78,376 | 176,523 |
Cash, cash equivalents and restricted cash at end of period | 94,863 | 95,985 | 78,376 |
Supplemental Disclosure | |||
Cash paid for taxes | 43 | 67 | 52 |
Cash paid for interest | 12,140 | 10,144 | 4,472 |
Supplemental Disclosure of Non-Cash Investing and Financing Activities | |||
Purchase of property and equipment in accounts payable and accrued liabilities | 21 | 85 | 112 |
Debt issuance costs in accounts payable and accrued liabilities | 0 | 46 | 0 |
Transaction costs and convertible preferred stock included in accounts payable and accrued liabilities | 0 | 17,500 | 1,928 |
Assumption of derivative liabilities upon Business Combination | 0 | 93,196 | 0 |
Initial measurement of Structural Derivative Liability recorded as debt fees | 0 | 7,050 | 0 |
Initial measurement of common stock recorded as debt fees | 0 | 1,072 | 0 |
Initial measurement of common stock warrants recorded as debt fees | 0 | 0 | 1,622 |
Settlement of Additional Shares liability | 1,500 | 16,310 | 0 |
Settlement of Earn-Out due to Cancellation of shares | 347 | 0 | 0 |
Conversion of contingently redeemable convertible common stock and preferred stock to common stock | 0 | 516,380 | 0 |
Reclassification of Grove's preferred stock warrant liability to equity | 0 | 2,182 | 0 |
Net exercise of preferred stock warrants | 0 | 989 | 0 |
Gain on settlement allocated to equity instruments | 9,609 | 0 | 0 |
Vesting of early exercised stock options | $ 0 | $ 125 | $ 1,577 |
Description of Business
Description of Business | 12 Months Ended |
Dec. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of Business | Description of Business Grove Collaborative Holdings, Inc., a public benefit corporation, (formerly known as Virgin Group Acquisition Corp. II) and its wholly owned subsidiaries (collectively, the “Company” or “Grove”) is a digital-first, sustainability-oriented consumer products innovator specializing in the development and sale of household, personal care, beauty and other consumer products with an environmental focus and headquartered in San Francisco, California. In the United States, the Company sells its products through two channels: a direct-to-consumer (“DTC”) platform at www.grove.co and the Company’s mobile applications, where the Company sells products from Grove-owned brands (“Grove Brands”) and third-parties, and the retail channel into which the Company sell products from Grove-owned brands at wholesale. The Company develops and sells natural products that are free from the harmful chemicals identified in the Company’s “anti-ingredient” list and designs form factors and product packaging that reduces plastic waste and improves the environmental impact of the categories in which the Company operates. The Company also purchases environmental offsets that have made it the first plastic neutral retailer in the world. Grove Collaborative, Inc. (herein referred to as “Legacy Grove”), the Company’s accounting predecessor, was incorporated in Delaware in 2016. On June 16, 2022 (the “Closing Date”), the Company consummated the previously-announced transactions contemplated by the Agreement and Plan of Merger, dated December 7, 2021, amended and restated on March 31, 2022 (the “Merger Agreement”), among Virgin Group Acquisition Corp. II, a blank check company incorporated as a Cayman Islands exempt company in 2020 (“VGAC II”), Treehouse Merger Sub, Inc. (“VGAC II Merger Sub I”), Treehouse Merger Sub II, LLC (“VGAC II Merger Sub II”), and Legacy Grove (“the Merger”). In connection with the Merger, VGAC II changed its jurisdiction of incorporation from the Cayman Islands to the State of Delaware and changed its name to Grove Collaborative Holdings, Inc (the “Domestication”), a public benefit corporation. On the Closing Date, VGAC Merger Sub II merged with and into Legacy Grove with Legacy Grove being the surviving corporation and a wholly-owned subsidiary of the Company (the “Initial Merger”), and, immediately following the Initial Merger, and as part of the same overall transaction as the Initial Merger, Legacy Grove merged with and into VGAC Merger Sub II, the separate corporate existence of Legacy Grove ceased, and Merger Sub II continued as the surviving company and a wholly-owned subsidiary of the Company and changed its name to Grove Collaborative, Inc.(together with the Merger and the Domestication, the “Business Combination”). The Business Combination is accounted for as a reverse recapitalization with Legacy Grove being the accounting acquirer and VGAC II as the acquired company for accounting purposes. Accordingly, all historical financial information presented in the audited consolidated financial statements represents the accounts of Legacy Grove. The shares and net loss per common share prior to the Closing have been retroactively restated as shares reflecting the exchange ratio established in the Closing. Prior to the Business Combination, VGAC II’s public shares, and public warrants were listed on the New York Stock Exchange (“NYSE”) under the symbols “VGII” and “VGII.WS,” respectively. On June 17, 2022, the Company's Class A common stock and public warrants began trading on the NYSE, under the symbols “GROV” and “GROV.WS,” respectively. See Note 3, Recapitalization and Note 4, Fair Value Measurement for additional details. Reverse Stock Split On May 24, 2023, the Company’s board of directors and stockholders approved a five-for-one reverse split (the “Reverse Split”) of the Company’s issued and outstanding Class A and Class B common stock. Unless otherwise noted herein, the number of shares underlying stock options and other equity instruments was proportionately adjusted for the Reverse Split, including any exercise prices. The Class A common stock began trading on a split adjusted basis on the NYSE at the market open on June 6, 2023. No fractional shares were issued in connection with the reverse stock split. All issued and outstanding Class A and Class B common stock, options to purchase common stock, shares available or reserved for issuance, warrants and/or warrant shares, as applicable, and per share amounts contained in the consolidated financial statements have been retroactively adjusted to reflect the reverse stock split for all periods presented, unless otherwise stated herein. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Basis of Presentation and Liquidity The consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”). The Company has historically incurred losses and negative cash flows from operations and had an accumulated deficit of $621.1 million as of December 31, 2023. The Company’s existing sources of liquidity as of December 31, 2023 include cash and cash equivalents of $86.4 million. Prior to the Business Combination, the Company historically funded operations primarily with issuances of convertible preferred stock, contingently redeemable convertible common stock and the incurrence of debt. Upon the Closing of the Business Combination, the Company received $86.0 million in cash proceeds, net of transaction costs. The Company believes its existing cash, cash equivalents, together with its increased borrowing capacity through its recently entered into asset backed revolving line of credit (see Note 14, Subsequent Events), will be sufficient to fund its operations for a period of at least one year from the date the financial statements are issued. Over the longer-term, the Company will need to raise additional capital through debt or equity financing to fund future operations until it generates positive cash flows from operations. There can be no assurance that such additional debt or equity financing will be available on terms acceptable to the Company, or at all. Emerging Growth Company The Company is an “emerging growth company,” as defined in the Jumpstart Our Business Startups Act of 2012, or the JOBS Act. The JOBS Act permits companies with emerging growth company status to take advantage of an extended transition period to comply with new or revised accounting standards, delaying the adoption of these accounting standards until they would apply to private companies. Following the closing of the Business Combination, the Company uses this extended transition period to enable it to comply with new or revised accounting standards that have different effective dates for public and private companies until the earlier of the date the Company (1) is no longer an emerging growth company or (2) affirmatively and irrevocably opts out of the extended transition period provided in the JOBS Act. As a result, the Company’s consolidated financial statements may not be comparable to companies that comply with the new or revised accounting standards as of public company effective dates. Comprehensive Loss Comprehensive loss represents all changes in stockholders’ deficit. The Company’s net loss was equal to its comprehensive loss for all periods presented. Use of Estimates The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates, judgments and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements, as well as the reported amounts of revenue and expenses during the reporting period. These estimates made by management include the determination of reserves amounts for the Company’s inventories on hand, useful life of intangible assets, sales returns and allowances and certain assumptions used in the valuation of equity awards, the estimated fair value of common stock liability classified Public and Private Placement Warrants, the fair value of Earn-Out liabilities, the fair value of Additional Shares liabilities, the fair value of the Structural Derivative Liability and stock based compensation expense. Actual results could differ from those estimates, and such estimates could be material to the Company’s financial position and the results of operations. Segments The Company’s chief operating decision maker, who is its Chief Executive Officer, manages the Company’s operations as a single segment for the purposes of assessing performance and making operating decisions. All long-lived assets are located in the United States and all revenue is attributed customers based in the United States. For the years ended December 31, 2023, 2022, and 2021 no individual customers represented more than 10% of total revenue. Net Loss Per Share Attributable to Common Stockholders Net loss per share attributable to common stockholders is computed using the two-class method required for multiple classes of common stock and participating securities. The rights, including the liquidation and dividend rights and sharing of losses, of the Company’s Class A common stock and Class B common stock are identical, other than voting rights. As the liquidation and dividend rights and sharing of losses are identical, the undistributed earnings are allocated on a proportionate basis and the resulting net loss per share will, therefore, be the same for both the Company’s Class A and Class B common stock on an individual or combined basis. The Company’s participating securities included the Company’s redeemable convertible preferred stock, as the holders are entitled to receive cumulative dividends in the event that a dividend is paid on common stock. The Company also considers any shares issued on the early exercise of stock options subject to repurchase to be participating securities because holders of such shares have non-forfeitable dividend rights in the event a dividend is paid on common stock. The holders of redeemable convertible preferred stock, the holders of early exercised shares subject to repurchase nor the holders of the Company’s common stock warrants have a contractual obligation to share in losses. Basic net loss per share attributable to common stockholders is calculated by dividing the net loss, as adjusted for any accumulated dividends on Series A Redeemable Convertible Preferred Stock (Note 9, Redeemable Convertible Preferred Stock) for the period, attributable to common stockholders by the weighted-average number of shares of common stock outstanding during the period, adjusted for outstanding shares that are subject to repurchase or outstanding shares that are contingently returnable by the holder. Contingently issuable shares, including shares that are issuable for little or no cash consideration, are considered outstanding common shares and included in net loss per share as of the date that all necessary conditions have been satisfied. Such shares include the Backstop Warrants (Note 10, Common Stock and Warrants) and Volition Penny Warrants (Note 9 - Redeemable Convertible Preferred Stock). Diluted net loss per share is computed by giving effect to all potentially dilutive securities outstanding for the period using the treasury stock method or the if-converted method based on the nature of such securities. For periods in which the Company reports net losses, diluted net loss per common share attributable to common stockholders is the same as basic net loss per common share attributable to common stockholders, because potentially dilutive common shares are not assumed to have been issued if their effect is anti-dilutive. Cash, Cash Equivalents and Restricted Cash Cash consists primarily of demand deposit bank accounts including amounts in transit from banks for customer credit card transactions. The Company considers all highly liquid investments with an original maturity from date of purchase of three months or less, or that are readily convertible into known amounts of cash, to be cash equivalents. As of December 31, 2023 and 2022, cash equivalents are comprised of money market funds. As of December 31, 2023, the Company held short-term restricted cash of $5.7 million which primarily represents cash on deposit with a financial institution to collateralize short-term obligations related to company credit cards. Long-term restricted cash of $2.8 million primarily represents cash on deposit with a financial institution to collateralize letters of credit related to the Company’s non-cancellable operating leases for its corporate headquarters. Restricted cash is stated at cost, which approximates fair value. The following table provides a reconciliation of cash, cash equivalents and restricted cash reported on the consolidated balance sheets that sum to the total of the same amounts shown in the consolidated statements of cash flows (in thousands): Year Ended December 31, 2023 2022 Cash and cash equivalents $ 86,411 $ 81,084 Restricted cash 8,452 14,901 Total cash, cash equivalents and restricted cash $ 94,863 $ 95,985 Concentration of Risks Financial instruments that potentially subject the Company to significant concentrations of credit risk consist primarily of cash and cash equivalents. The Company maintains the majority of its cash and cash equivalents in accounts with one financial institution within the United States, generally in the form of demand accounts. Deposits in this institution may exceed federally insured limits. Management believes minimal credit risk exists with respect to this financial institution and the Company has not experienced any losses on such amounts. The Company depends on a limited number of vendors to supply products sold by the Company. The Company’s top five suppliers combined represented approximately 40%, 50% and 50% of the Company’s total inventory purchases for the year ended December 31, 2023, 2022, and 2021, respectively. Inventory Inventory is recorded at the lower of weighted average cost and net realizable value. The cost of inventory consists of merchandise costs, net of vendor allowances, and inbound freight. Inventory valuation requires the Company to make judgments, based on currently available information, about the likely method of disposition, such as through sales to individual customers or liquidations, and expected recoverable values of each disposition category. Property and Equipment Property and equipment are stated at cost less accumulated depreciation and amortization. Depreciation is recorded on a straight-line basis over the estimated useful lives of the respective assets. The estimated useful lives of the Company’s assets are as follows: Computer equipment 3 - 5 years Furniture and fixtures 5 years Machinery and warehouse equipment 7 - 10 years Leasehold improvements Shorter of 10 years or lease term Maintenance and repairs are charged to expense as incurred, and improvements and betterments are capitalized. When assets are retired or otherwise disposed of, the cost and accumulated depreciation and amortization are removed from the balance sheet and any resulting gain or loss is reflected in the statement of operations in the period realized. Capitalized Software Development Costs The Company capitalizes qualifying internally developed software costs that are incurred during the application development stage. Costs related to preliminary project activities and post-implementation activities are expensed as incurred. Once an application has reached the development stage, management has authorized and committed to the funding of the software project, it is probable the project will be completed and the software will be used to perform the function intended, internal and external costs, if direct and incremental, are capitalized until the application is substantially complete and ready for its intended use. Capitalized software development costs are amortized on a straight-line basis to product development expense over the estimated useful life, which is four years. Impairment of Long-Lived Assets The Company reviews its long-lived assets, inclusive of its right-of-use assets, for impairment whenever events or changes in circumstances indicate the carrying amount of an asset may not be recoverable. Recoverability of assets held and used is measured by comparison of the carrying amount of an asset to the future undiscounted cash flows expected to be generated from the use of the asset and its eventual disposition. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount exceeds the fair value of the impaired assets. Assets to be disposed of are reported at the lower of their carrying amount or fair value less cost to sell. Leases The Company determines if an arrangement is or contains a lease at inception. An arrangement is or contains a lease if it conveys the right to control the use of an identified asset for a period of time in exchange for consideration. If a lease is identified, classification is determined at lease commencement. Operating lease liabilities are recognized at the present value of the future lease payments at the lease commencement date. As the implicit rate in the Company’s lease is generally unknown, the Company estimates its incremental borrowing rate to discount lease payments. The incremental borrowing rate reflects the interest rate that the Company would have to pay to borrow on a collateralized basis an amount equal to the lease payments in a similar economic environment over a similar term. Operating lease right-of-use (“ROU”) assets are based on the corresponding lease liability adjusted for any lease payments made at or before commencement, initial direct costs, and lease incentives. Certain leases also include options to renew or terminate the lease at the election of the Company. The Company evaluates these options at lease inception and on an ongoing basis. Renewal and termination options that the Company is reasonably certain to exercise are included when classifying leases and measuring lease liabilities. Operating lease expense is recognized on a straight-line basis over the lease term. The Company has lease agreements with lease and non-lease components, which are accounted for as a single lease component. Lease payments for short-term leases with a term of twelve months or less are expensed on a straight-line basis over the lease term. The Company elected to not record operating lease right-of-use assets or operating lease liabilities for leases with an initial term of twelve months or less. Operating leases are included in operating lease right-of-use assets, operating lease liabilities, current, and operating lease liabilities, non-current on the Company’s balance sheet. Additional Shares Liabilities The Company initially recorded a liability related to the Backstop Additional Shares, defined in Note 3, Recapitalization, and HGI Additional Shares, defined in Note 10, Common Stock and Warrants (collectively, “Additional Shares”). The Company accounted for these instruments at fair value within derivative liabilities on its consolidated balance sheet with changes in fair value until settlement being recorded in its consolidated statement of operations. The Additional Shares were settled as of December 31, 2023 . Earn-Out Liabilities The Company has recorded a liability related to the Earn-Out Shares, defined in Note 10, Common Stock and Warrants. The Company accounts for this instrument at fair value within derivative liabilities on its consolidated balance sheet with changes in fair value until settlement being recorded in its consolidated statement of operations. Warrant Liabilities The Company classifies Private Placement Warrants and Public Warrants (both defined and discussed in Note 10, Common Stock and Warrants) as liabilities within derivative liabilities on its consolidated balance sheet. At the end of each reporting period, changes in fair value during the period are recognized within the consolidated statements of operations. The Company will continue to adjust the warrant liability for changes in the fair value until the earlier of a) the exercise or expiration of the warrants or b) the redemption of the warrants, at which time the warrants will be reclassified to additional paid-in capital. Structural Derivative Liability The Structural Derivative Liability is a compound embedded derivative related to features within the Structural Facility, defined in Note 6, Debt. The Company accounts for this instrument at fair value within derivative liabilities on its consolidated balance sheet with changes in fair value until settlement being recorded in its consolidated statement of operations. Revenue Recognition The Company primarily generates revenue from the sale of both third-party and Grove Brands products through its DTC platform. Customers purchase products through the website or mobile application through a combination of directly selecting items from the catalog, items that are suggested by the Company’s recurring shipment recommendation engine, and features that appear in marketing on-site, in emails and on the Company’s mobile application. Most customers purchase a combination of products recommended by the Company based on previous purchases and new products discovered through marketing or catalog browsing. Customers can have orders auto-shipped to them on a specified date or shipped immediately through an option available on the website and mobile application. In order to reduce the environmental impact of each shipment, the Company has a minimum total sales order value threshold policy which is required to be met before the order qualifies for shipment. Payment is collected upon finalizing the order. The products are subsequently packaged and shipped to fill the order. Customers can customize future purchases by selecting products they want to receive on a specified cadence or by selecting products for immediate shipment. The Company also offers a VIP membership to its customers for an annual fee which includes the rights to free shipping, free gifts and early access to exclusive sales, all of which are available at the customers’ option, should they elect to make future purchases of the Company’s products within their annual VIP membership benefit period. Many customers receive a free 60-day VIP membership for trial purposes, typically upon their first qualifying order. After the expiration of this free trial VIP membership period, customers will be charged their annual VIP membership fee, which automatically renews annually, until cancelled. The customer is alerted before any VIP membership renews. In accordance with Accounting Standards Codification (“ASC”) Topic 606, Revenue from Contracts with Customers (“ASC 606”), the Company recognizes revenue when the customer obtains control of promised goods, in an amount that reflects the consideration that it expects to receive in exchange for those goods. To determine revenue recognition for arrangements that the Company determines are within the scope of ASC 606, the Company performs the following five steps: (i) identify the contract with a customer, (ii) identify the performance obligations in the contract, (iii) determine the transaction price, including variable consideration, if any, (iv) allocate the transaction price to the performance obligations in the contract, and (v) recognize revenue when (or as) the Company satisfies a performance obligation. The Company only applies the five-step model to contracts when it is probable that it will collect the consideration to which it is entitled in exchange for the goods it transfers to a customer. A contract with a customer exists when the customer submits an order online for the Company’s products. Under this arrangement, there is one performance obligation which is the obligation for the Company to fulfill the order. Product revenue is recognized when control of the goods is transferred to the customer, which occurs upon the Company’s delivery to a third-party carrier. The VIP membership provides customers with a suite of benefits that are only accessible to them at their option, upon making a future qualifying order of the Company’s products. The VIP membership includes free shipping, a select number of free products, and early access to exclusive sales. Under ASC 606, sales arrangements that include rights to additional goods or services that are exercisable at a customer’s discretion are generally considered options; therefore the Company must assess whether these options provide a material right to the customer and if so, they are considered a performance obligation. The Company concluded that its VIP membership benefits include two material rights, one related to the future discount (i.e. free shipping) on the price of the customer’s qualifying order(s) over the membership period and the second one relating to a certain number of free products provided at pre-set intervals within the VIP membership benefit period, that will only ship with a customer’s next qualifying order (i.e. bundled). At inception of the VIP membership benefit period, the Company allocates the VIP membership fee to each of the two material rights using a relative standalone selling price basis. Generally, standalone selling prices are determined based on the observable price of the good or service when sold separately to non-VIP customers and the estimated number of shipments and free products per benefit period. The Company also considers the likelihood of redemption when determining the standalone selling price for free products and then recognize these allocated amounts upon the shipment of a qualifying customer order. To date, customers buying patterns closely approximate a ratable revenue attribution method over the customers VIP Membership period. The Company deducts discounts, sales tax, customer service credits and estimated refunds to arrive at net revenue. Sales tax collected from customers is not considered revenue and is included in accrued liabilities until remitted to the taxing authorities. The Company has made the policy election to account for shipping and handling as activities to fulfill the promise to transfer the good. Outbound shipping, handling and packaging expenses are recognized upon shipment and classified within selling, general and administrative expenses. Discounts are recorded as a reduction to revenue when revenue is recognized. The Company records a refund reserve based on historical refund patterns. As of December 31, 2023 and 2022, the refund reserve, which is included in accrued liabilities in the balance sheets was $0.1 million. Disaggregation of Revenue The following table sets forth revenue by product type (in thousands): Year Ended December 31, 2023 2022 2021 Revenue, net: Grove Brands $ 119,006 $ 154,854 $ 187,055 Third-party products 140,272 166,673 196,630 Total revenue, net $ 259,278 $ 321,527 $ 383,685 Contractual Liabilities The Company has three types of contractual liabilities from transactions with customers: (i) cash collections for products which have not yet shipped, which are included in deferred revenue and are recognized as revenue upon the Company’s delivery to a third-party carrier, (ii) cash collections of VIP membership fees, which are included in deferred revenue and (iii) customer service credits, which are included in other current liabilities and are recognized as a reduction in revenue when provided to the customer. Contractual liabilities included in deferred revenue and other current liabilities were $7.2 million and $0.1 million, respectively, as of December 31, 2023 and $10.9 million and $0.2 million, respectively, as of December 31, 2022. The contractual liabilities included in deferred revenue are generally recognized as revenue within twelve months from the end of each reporting period. Cost of Goods Sold Cost of goods sold consists of the product costs of merchandise, inbound freight costs, vendor allowances, costs associated with inventory shrinkage, damages and inventory write-offs and changes to the Company’s inventory reserves. Vendor Allowances The Company receives discounts and other product related reimbursements from certain vendors through a variety of programs intended to offset the purchase prices of inventory and for the promotion and selling of that vendor’s inventory. Discounts and other reimbursements are recorded as a reduction in the cost of the associated inventory purchased. Advertising Expenses Advertising expenses, other than production costs, are expensed as incurred and consist primarily of the customer acquisition costs associated with online advertising, as well as advertising on television, direct mail campaigns and other media. Costs associated with the production of advertising are expensed when the first advertisement is shown. Product Development Expenses Product development expenses relate to costs related to the ongoing support and maintenance of the Company’s proprietary technology, including the Company’s website and mobile device application, as well as amortization of capitalized internally developed software, and relate to the product packaging innovation in the Company’s Grove Brands products. Product development expenses consist primarily of personnel-related expenses, including salaries, bonuses, benefits and stock-based compensation expense. Product development costs also include allocated facilities, equipment, depreciation and overhead costs. Selling, General and Administrative Expenses Selling, general and administrative expenses consist primarily of compensation and benefit costs for personnel involved in general corporate functions, including stock-based compensation expense, and certain fulfillment costs, as further outlined below. Selling, general and administrative expenses also include the allocated facilities, equipment, depreciation and overhead costs, marketing costs including qualified cost of credits issued through the Company’s referral program, costs associated with the Company’s customer service operation and costs of environmental offsets. Fulfillment Costs Fulfillment costs represent those costs incurred in operating and staffing the Company’s fulfillment centers, including costs attributable to receiving, inspecting and warehousing inventories, picking, packaging and preparing customer orders for shipment (“Fulfillment Labor”), outbound shipping and handling expenses, packaging materials costs and payment processing and related transaction costs. These costs are included within selling, general and administrative expenses in the statements of operations. For the years ended December 31, 2023, 2022 and 2021, the Company recorded fulfillment costs of $58.8 million, $82.2 million, and $95.5 million, respectively, which included $35.6 million, $50.2 million and $56.1 million in shipping and handling expenses, respectively, and $13.5 million, $19.7 million and $24.5 million in Fulfillment Labor, respectively. The Company’s gross profit may not be comparable to other retailers or distributors. Income Taxes The Company accounts for income taxes under the asset and liability method, whereby deferred tax assets and liabilities are determined based on the difference between the consolidated financial statement and income tax bases of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. The Company recognizes the benefits of tax-return positions in the consolidated financial statements when they are more likely than not to be sustained by the taxing authority, based on the technical merits at the reporting date. The Company considers many factors when evaluating and estimating its tax positions and tax benefits, which may require periodic adjustments, and which may not accurately forecast actual outcomes. The Company recognizes interest and penalties related to unrecognized tax benefits, if any, as income tax expense. Stock-Based Compensation The Company’s stock-based compensation relates to stock options, restricted stock units (“RSU”) and stock purchase rights under an Employee Stock Purchase Plan (“ESPP”). The Company recognizes the cost of share-based awards granted to employees and non-employees based on the estimated grant-date fair value of the awards. For stock option awards with service-only vesting conditions, expense is recognized on a straight-line basis over the requisite service period, which is generally the vesting period of the award. The Company estimates the grant-date fair value of the stock option awards with service only vesting conditions using the Black-Scholes option-pricing model. The Black-Scholes option-pricing model utilizes inputs and assumptions which involve inherent uncertainties and generally require significant judgment. As a result, if factors or expected outcomes change and significantly different assumptions or estimates are used, the Company’s stock-based compensation could be materially different. Significant inputs and assumptions include: Fair value of Common Stock – As there has been no public market for the Company’s common stock prior to the Business Combination, the fair value of the shares of common stock underlying the stock-based awards on the grant-date has historically been determined by the Company’s Board of Directors with assistance of third-party valuation specialists. The Board of Directors exercises reasonable judgment and considers a number of objective and subjective factors to determine the best estimate of the fair market value, which include important developments in the Company’s operations, the prices at which the Company sold shares of its convertible preferred stock, the rights, preferences and privileges of the Company’s convertible preferred stock relative to those of the Company’s common stock, actual operating results, financial performance, external market conditions, equity market conditions of comparable public companies, and the lack of marketability of the Company’s common stock. Expected Term – The Company’s expected term represents the period that the Company’s stock-based awards are expected to be outstanding and is determined using the simplified method (based on the mid-point between the vesting date and the end of the contractual term). Expected Volatility – Because the Company was privately held prior to the Business Combination and did not have an active trading market for its common stock, the expected volatility was estimated based on the average volatility for publicly traded companies that the Company considers to be comparable, over a period equal to the expected term of the stock option grants. Risk-Free Interest Rate – The risk-free interest rate is based on the U.S. Treasury zero coupon issues in effect at the time of grant for periods corresponding with the expected term of option. Expected Dividend – The Company has never paid dividends on its common stock and has no plans to pay dividends on its common stock. Therefore, the Company used an expected dividend yield of zero. For RSU awards with performance vesting conditions, the Company evaluates the probability of achieving the performance vesting condition at each reporting date. The Company begins to recognize expense for RSUs with performance vesting conditions using an accelerated attribution method when it is deemed probable that the performance condition will be met. For RSUs with service-only vesting conditions, expense is recognized on a straight-line basis over the requisite service period, which is generally the vesting period of the award. The fair value of RSU awards is determined using the price of the Company’s common stock on the grant date, as determined by the Company’s board of directors. For awards with both market and service vesting conditions, expense is recognized over the derived service period using an accelerated attribution method starting from when it is deemed probable that the performance condition will be met. The fair value of stock option awards with both market and service conditions is estimated using multifactor Monte Carlo simulations. The Monte Carlo simulation model incorporates the probability of satisfying a market condition and utilizes inputs and assumptions which involve inherent uncertainties and generally require significant judgment, including the Company’s stock price, contractual terms, maturity and risk-free interest rates, as well as volatility. The fair value of each purchase under the ESPP is estimated at the beginning of the offering period using the Black-Scholes option pricing model and recorded as expense over the service period using the straight-line method. The Company accounts for forfeitures as they occur. Recently Issued Accounting Standards In October 2023, Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (“ASU”) 2023-06, Disclosure Improvements (“ASU2023-06”), to clarify or improve disclosure and presentation requirements of a variety of topics and align the requirements in the FASB accounting standard codification (“ASC”) with the SEC's regulations. The amendment |
Recapitalization
Recapitalization | 12 Months Ended |
Dec. 31, 2023 | |
Reverse Recapitalization [Abstract] | |
Recapitalization | Recapitalization As discussed in Note 1, Description of Business, on the Closing Date, VGAC II completed the acquisition of Legacy Grove and acquired 100% of Legacy Grove’s shares and Legacy Grove received gross proceeds of $97.1 million, which includes proceeds from issuance of common stock upon the consummation of the Business Combination, including the Backstop Tranche 2 shares, and proceeds from the PIPE investment (as defined below). The Company recorded $24.4 million of transaction costs, which consisted of legal, accounting, and other professional services directly related to the Business Combination. Transaction costs were allocated on a relative fair value basis between the issuance of common stock, Public and Private Placement Warrants, Grove Earn-Out Shares, Backstop Additional Shares and Backstop Warrants (as defined below). Direct and incremental transaction costs allocated to equity-classified instruments have been recorded within equity as an offset against proceeds upon accounting for the consummation of the Business Combination in the consolidated financial statements. Direct and incremental transaction costs allocated to liability-classified equity instruments were expensed in the consolidated financial statements and included in other expense, net in the consolidated statements of operations . The cash outflows related to these costs were presented as financing activities on the Company’s consolidated statement of cash flows. On the Closing Date, each holder of Legacy Grove common stock received approximately 1.1760 shares of the Company’s Class B common stock, par value $0.0001 per share. See Note 9, Convertible Preferred Stock and Note 10, Common Stock and Warrants for additional details of the Company's equity balances prior to and subsequent to the Business Combination. All equity awards of Legacy Grove were assumed by the Company and converted into comparable equity awards that are settled or exercisable for shares of the Company’s Class B common stock. As a result, each outstanding stock option was converted into an option exercisable for the Company’s Class B common stock based on an exchange ratio of approximately 1.1760, each outstanding restricted stock unit was converted into restricted stock units of the Company that, upon vesting and issued, will be settled for shares of the Company’s Class B common stock based on an exchange ratio of approximately 1.1760 and each outstanding warrant to purchase Legacy Grove common stock or preferred stock was converted into a warrant to purchase shares of the Company’s Class B common stock based on an exchange ratio of approximately 1.1760. Each public and private warrant of VGAC II that was unexercised at the time of the business combination was assumed by the Company and five warrants bundled together represent the right to purchase one share of the Company’s Class A common stock upon exercise of such warrant. For further details on these warrants see Note 10, Common Stock and Warrants. The Business Combination was accounted for as a reverse recapitalization with Legacy Grove as the accounting acquirer and VGAC II as the acquired company for accounting purposes. Legacy Grove was determined to be the accounting acquirer since Legacy Grove’s shareholders prior to the business combination had the greatest voting interest in the combined entity, Legacy Grove's shareholders appointed the initial directors of the combined Board of Directors and control future appointments, Legacy Grove comprises all of the ongoing operations, and Legacy Grove's senior management directs operations of the combined entity. Accordingly, all historical financial information presented in these consolidated financial statements represents the accounts of Legacy Grove. Net assets were stated at historical cost consistent with the treatment of the transaction as a reverse recapitalization of Legacy Grove. PIPE Investmen t On December 7, 2021, concurrently with the execution of the Merger Agreement , VGAC II entered into subscription agreements with certain investors (the “PIPE Investors”) to which such investors collectively subscribed for an aggregate of 1,741,500 shares of the Company’s Class A common stock for aggregate gross proceeds of $87,075,000 (the “PIPE Investment”). 1,721,500 shares of the Company’s Class A common stock have been issued for aggregate proceeds of $86,075,000, which consummated concurrently with the closing to the Business Combination. Backstop Financing On March 31, 2022, VGAC II entered into a subscription agreement (the “Backstop Subscription Agreement”) with Corvina Holdings Limited (the “Backstop Investor”) and Legacy Grove. As part of the Backstop Subscription Agreement, the Backstop Investor subscribed for and purchased 467,670 shares of Legacy Grove Common Stock (the “Backstop Tranche 1 Shares”) for aggregate proceeds of $27,500,000. The Company initially classified the Backstop Tranche 1 Shares as mezzanine (or temporary) equity on its balance sheet because the Backstop Tranche 1 Shares were contingently redeemable upon the occurrence of certain events not solely within the control of the Company that allow for the effective redemption of such shares in cash at the option of the holder. Upon Closing of the Business Combination, the Backstop Tranche 1 Shares were converted into 550,000 shares of the Company’s Class A common stock and the Tranche 1 Shares were no longer contingently redeemable. The Company has classified these shares in permanent equity on its balance sheet at December 31, 2023. In addition, the Backstop Investor agreed to subscribe for and purchase, on the closing date of the Business Combination, certain shares of the Company’s Class A common stock at a purchase price of $50.00 per share (“Backstop Tranche 2 Shares”) for aggregate gross proceeds in an amount equal to (x) $22.5 million minus (y) the amount of aggregate cash remaining in VGAC II’s trust account, after deducting any amounts paid to VGAC II shareholders who exercise their redemption rights in connection with the Business Combination. The Company issued to the Backstop Investor, as of immediately following the closing of the Business Combination, 334,304 Backstop Tranche 2 Shares for aggregate proceeds of $16,715,240. The Backstop Subscription Agreement also provided that the Company would issue additional shares of the Company’s Class A common stock to the Backstop Investor for Backstop Tranche 1 Shares and Backstop Tranche 2 Shares if the volume weighted average price of the Company’s Class A common stock was less than $50.00 during the 10 trading days commencing on the first trading date after the Company’s first quarterly earnings call for the fiscal quarter ended June 30, 2022 (“Backstop Additional Shares”). In August 2022, the Company settled this obligation by issuing 655,036 shares of Class A common stock to the Backstop Investor. |
Fair Value Measurements and Fai
Fair Value Measurements and Fair Value of Financial Instruments | 12 Months Ended |
Dec. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements and Fair Value of Financial Instruments | Fair Value Measurements and Fair Value of Financial Instruments The Company measures certain financial assets and liabilities at fair value on a recurring basis. The Company determines fair value based upon the exit price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants, as determined by either the principal market or the most advantageous market. Inputs used in the valuation techniques to derive fair values are classified based on a three-level hierarchy. These levels are: Level 1 – Inputs are unadjusted, quoted prices in active markets for identical assets or liabilities at the measurement date; Level 2 – Inputs are observable, unadjusted quoted prices in active markets for similar assets or liabilities, unadjusted quoted prices for identical or similar assets or liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the related assets or liabilities; and Level 3 – Unobservable inputs that are significant to the measurement of the fair value of the assets or liabilities that are supported by little or no market data. Financial instruments consist of cash equivalents, accounts payable, accrued liabilities, debt and convertible preferred stock warrant liability, Additional Shares, Earn-Out Shares and Public and Private Placement Warrants. Cash equivalents, convertible preferred stock warrant liability, Earn-Out Shares and Public and Private Placement Warrant are stated at fair value on a recurring basis. Accounts payable and accrued liabilities are stated at their carrying value, which approximates fair value due to the short period time to the expected receipt or payment. The carrying amount of the Company’s outstanding debt approximates the fair value as the debt bears interest at a rate that approximates prevailing market rate. The Public Warrants were historically classified as Level 1 due to the use of an observable market quote in an active market. Private Placement Warrants were historically classified as Level 2 as the fair value approximated the fair value of the Public Warrants. The Private Placement Warrants are identical to the Public Warrants, with certain exceptions as defined in Note 10, Common Stock and Warrants. Five Public Warrants or Private Placement Warrants must be bundled together to receive one share of the Company’s Class A common stock. During the year ended December 31, 2023, the entire balance of the Public Warrants and Private Placement Warrants was transferred out of Level 1 and Level 2, respectively, into Level 3 due to the warrants being delisted by the NYSE in response to the low trading price of the warrants. The value of the Public Warrants and Private Placement Warrants was determined by using a Black-Scholes Model with the following assumptions: Year Ended December 31, 2023 2022 Fair value of common stock $0.35 — Exercise Price $11.50 — Expected term (in years) 3.54 — Risk-free interest rate 3.93% — Volatility 71.77% — Dividend yield — — The Earn-Out Shares are classified as Level 3 and their fair values were estimated using a Monte Carlo options pricing model utilizing assumptions related to expected stock-price volatility, expected life, risk-free interest rate and dividend yield. The Company estimated the expected volatility assumption using an average of the implied volatility of its common stock and an implied volatility based on its peer companies. The Structural Derivative Liability is a compound embedded derivative related to features within the Structural Debt Facility, including an increase in interest rate upon an event of default and the contingent issuance of the Structural Subsequent Shares as defined in Note 6, Debt. This liability is classified as Level 3 and is valued using a risk-neutral income approach related to an event of default occurring and expected cash flows in such a scenario and an income and Black-Scholes pricing model for the contingent issuance of the Structural Subsequent Shares utilizing assumptions related to expected stock price volatility, expected life, risk-free interest rate and dividend yield. The Company estimated the expected volatility assumption using an weighted-average of the implied volatility of its publicly traded common stock and an implied volatility based on its peer companies. The following table sets forth the Company’s financial instruments that were measured at fair value on a recurring basis as of December 31, 2023 and December 31, 2022 by level within the fair value hierarchy (in thousands): December 31, 2023 Level 1 Level 2 Level 3 Total Financial Assets: Cash equivalents: Money market funds $ 83,431 $ — $ — $ 83,431 Total $ 83,431 $ — $ — $ 83,431 Financial Liabilities: Earn-Out Shares $ — $ — $ 2,973 $ 2,973 Private Placement Warrants — — 37 37 Public Warrants — — 31 31 Structural Derivative Liability — — 8,470 8,470 Total $ — $ — $ 11,511 $ 11,511 December 31, 2022 Level 1 Level 2 Level 3 Total Financial Assets: Cash equivalents: Money market funds $ 74,990 $ — $ — $ 74,990 Total $ 74,990 $ — $ — $ 74,990 Financial Liabilities: Additional Shares $ — $ — $ 580 $ 580 Earn-Out Shares — — 4,122 4,122 Private Placement Warrants — 670 — 670 Public Warrants 805 — — 805 Structural Derivative Liability — — 7,050 7,050 Total $ 805 $ 670 $ 11,752 $ 13,227 Additional Shares Liability At the closing of the HGI Subscription Agreement discussed in Note 10, Common Stock and Warrants, the Company recorded a liability related to the potential issuance of Additional Shares. Subsequent changes in fair value of the Additional Shares liability until settlement were recognized in the consolidated statements of operations. The Additional Shares Liability was settled as of December 31, 2023 (refer to Note 10, Common Stock and Warrants). Earn-Out Shares At Closing of the Business Combination, certain Earn-Out Shares were accounted for as a liability. Subsequent changes in fair value, until settlement or until equity classification is met, is recognized in the statements of operations. Private Placement and Public Warrant Liabilities As of December 31, 2023, the Company has Private Placement and Public Warrants defined and discussed in Note 10, Common Stock and Warrants. Such warrants are measured at fair value on a recurring basis. Subsequent changes in fair value, until settlement, is recognized in the statement of operations. Structural Derivative Liability Upon closing the Structural Debt Facility, the Company recorded a liability related to the features that are required to be bifurcated and accounted for as a compound derivative at fair value. Subsequent changes in fair value of the Structural Derivative Liability until settlement is recognized in the statement of operations. The following table provides a summary of changes in the estimated fair value of these liabilities (in thousands): Additional Shares Liability Earn-Out Shares Public Warrants Private Placement Warrants Structural Derivative Liability Total Balances at December 31, 2022 $ 580 $ 4,122 $ 805 $ 670 $ 7,050 $ 13,227 Cancellation — (347) — — (347) Changes in fair value 920 (802) (768) (639) 1,420 131 Settlement (1,500) — — — — (1,500) Balances at December 31, 2023 $ — $ 2,973 $ 37 $ 31 $ 8,470 $ 11,511 |
Other Balance Sheet Information
Other Balance Sheet Information | 12 Months Ended |
Dec. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Other Balance Sheet Information | Other Balance Sheet Information Property and Equipment Property and equipment, net consisted of the following (in thousands): December 31, 2023 2022 Machinery and warehouse equipment $ 6,753 $ 6,799 Internally developed software 15,772 15,199 Computer equipment 2,531 2,805 Leasehold improvements 2,134 2,018 Furniture and fixtures 1,049 1,028 Total property and equipment 28,239 27,849 Less: accumulated depreciation (16,614) (13,319) Property and equipment, net $ 11,625 $ 14,530 Depreciation expense for the years ended December 31, 2023, 2022 and 2021 was $1.7 million, $2.0 million, and $2.2 million respectively. The Company capitalized software development costs of $3.0 million and $4.3 million for the years ended December 31, 2023 and 2022, respectively. Amortization of capitalized software development costs was $4.1 million, $3.6 million and $2.5 million for the years ended December 31, 2023, 2022 and 2021 respectively. Accrued Expenses Accrued expenses consisted of the following (in thousands): December 31, 2023 2022 Inventory purchases $ 3,512 $ 2,757 Compensation and benefits 5,071 1,714 Advertising costs 457 1,203 Fulfillment costs 789 1,725 Sales taxes 1,106 1,374 Transaction costs — 17,500 Other accrued expenses 5,085 5,081 Total accrued expenses $ 16,020 $ 31,354 |
Debt
Debt | 12 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
Debt | Debt The Company’s outstanding debt, net of debt discounts, consisted of the following (in thousands): December 31, 2023 2022 Structural Debt Facility 64,162 60,620 Siena Revolver 7,500 — Atel Loan Facility Draw 3 — 480 Atel Loan Facility Draw 4 — 95 Total debt 71,662 61,195 Less: debt, current — (575) Total debt, noncurrent $ 71,662 $ 60,620 Structural Debt Facility In December 2022, the Company entered into a Loan and Security Agreement (“Structural Debt Facility”) with Structural Capital Investments III, LP, Structural Capital Investments IV, LP and Series PCI Grove series of Structural Capital Primary Co-Investment Fund, LLC (collectively, “Structural Funds”) and Avenue Sustainable Solutions Fund, L.P. (“Avenue”) (collectively “Structural Lenders”) to borrow $72.0 million which was used primarily to settle other debt obligations. The Structural Debt Facility bears an annual rate of interest at the greater of 15.00% or 7.50% plus the prime rate, payable monthly. The principal repayment period commences on July 1, 2025 and continues until the maturity date of December 21, 2026. The Company may prepay all outstanding amounts under this facility at anytime. Under the agreement, when amounts are prepaid or repaid in full at the Maturity Date, the Company may be obligated to pay additional fees which would allow for Structural Funds and Avenue to reach a Minimum Return, as defined by the agreement. The Structural Debt Facility is collateralized by the assets of the Company and includes financial covenants the Company must meet in order to avoid an Event of Default, as defined by the agreement. Such covenants include (i) maintaining a minimum of $57.0 million in unrestricted cash at all times and (ii) achieving certain revenue targets for the trailing four quarter period beginning with this fiscal quarter ended March 31, 2023. The Structural Debt Facility contains a subjective acceleration clause in the event that lenders determine that a material adverse change has or will occur within the business, operations, or financial condition of the Company or a material impairment of the prospect of repaying any portion of this financial obligation. In accordance with the loan agreement, Structural has been provided with the Company’s periodic financial statements and updated projections to facilitate their ongoing assessment of the Company. The Company believes the likelihood that Structural Lenders would exercise the subjective acceleration clause is remote. As of December 31, 2023, the Company was in compliance with these debt covenants. On December 21, 2022, in connection with the closing of the Structural Debt Facility, the Company issued to Structural Funds, including certain affiliates, and to Avenue a total of 990,000 shares of the Company’s Class A common stock (the “Structural Closing Shares”). The Company recorded a debt discount of $1.1 million related to the issuance of these shares, with a corresponding offset to the Company’s Class A common stock and additional paid-in capital. Further, if there are outstanding obligations relating to the Structural Debt Facility on July 21, 2025, representing the thirty-month anniversary of such closing, the Company agrees to issue to Structural Funds, including certain affiliates, and to Avenue, the aggregate number of shares of the Company’s Class A common stock equal to $9,900,000, divided by the lower of (i) $10.00 and (ii) the volume weighted average price of the Company’s Class A common stock for the sixty The Company has identified several features within the Structural Debt Facility consisting of the contingent obligation to issue the Structural Subsequent Shares, mandatory and voluntary prepayment features and default interest rate (“Structural Derivative Liability”), which are required to be bifurcated and accounted for as a compound embedded derivative at fair value. The fair value of the Structural Derivative Liability was $7.1 million as of the debt issuance date. Changes in fair value will be recognized through the consolidated statements of operations and were nominal for the year ended December 31, 2023. Closing costs consisted of $3.3 million in costs directly related to the issuance of the Structural Facility to third parties, issuance of certain Structural Closing Shares amounting to $1.1 million and the Structural Derivative Liability amount of $7.1 million. At December 31, 2023, the Company had $72.0 million in principal outstanding under the Structural Debt Facility with an effective interest rate of 21.37%. Siena Revolver In March 2023, the Company entered into a Loan and Security Agreement (the “Siena Revolver”) with Siena Lending Group, LLC (“Siena”) which permits the Company to receive funding through a revolving line of credit with an initial commitment of $35.0 million. The Company’s borrowing capacity under the Siena Revolver is subject to certain conditions, including the Company’s eligible inventory and accounts receivable balances among other limitations as specified in the agreement. In connection with this facility the Company incurred $1.1 million of debt issuance costs which have been included in other assets on the Company’s balance sheet and being amortized through the Revolver’s scheduled maturity date. Additional borrowing capacity from the Siena Revolver was $8.1 million as of December 31, 2023 . The interest rates applicable to borrowings under the Siena Revolver are based on a fluctuating rate of interest measured by reference to either, at the Company’s option, (i) a Base Rate, plus an applicable margin, or (ii) the Term SOFR rate then in effect, plus 0.10% and an applicable margin. The Base Rate is defined as the greatest of: (1) Prime Rate as published in the Wall Street Journal, (2) Federal Funds Rate plus 0.50% and (3) 5.00% per annum. The applicable margin for Siena Revolver borrowings is based on the Company’s monthly average principal balance outstanding and ranges from 2.75% to 4.50% per annum in the case of Base Rate Borrowings and 3.75% to 5.50% per annum in the case of Term SOFR borrowings. The Siena Revolver also contains various financial covenants the Company must maintain to avoid an Event of Default, as defined by the agreement, including a subjective acceleration clause in the event that Siena determines that a material adverse change has or will occur within the business, operations, or financial condition of the Company or a material impairment of the prospect of repaying any portion of this financial obligation. In accordance with the agreement, Siena has been provided with the Company’s periodic financial statements and updated projections to facilitate their ongoing assessment of the Company. The Company believes the likelihood that Siena would exercise the subjective acceleration clause is remote. As of December 31, 2023, the Company was in compliance with these debt covenants. The Siena Revolver matures at the earlier of March 10, 2026 or the maturity date of the Structural Debt Facility. As of December 31, 2023, the Company has an outstanding principal balance of $7.5 million under the Siena Revolver. The interest rate on the outstanding balance at December 31, 2023 was 9.18% A schedule of the Company’s future debt maturities is as follows (in thousands): Year ended December 31, 2024 — 2025 22,737 2026 56,763 Total principal debt payments 79,500 Less: debt discounts (7,838) Total Debt 71,662 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Merchandise Purchase Commitments As of December 31, 2023 and 2022 , the Company had obligations to purchase $14.1 million and $18.7 million, respectively, of merchandise. Letters of Credit The Company had irrevocable standby letters of credit in the amount of $3.4 million as of December 31, 2023 and 2022 primarily related to the Company’s operating leases. The letters of credit have expiration dates through January 2029. Contingencies From time to time, the Company is subject to various claims, charges and litigation matters that arise in the ordinary course of business. The Company records a provision for a liability when it is both probable that the loss has been incurred and the amount of the loss can be reasonably estimated. If the Company determines that a loss is reasonably possible and the loss or range of loss can be reasonably estimated, it discloses the possible loss or range of loss. Any potential gains associated with legal matters are not recorded until the period in which all contingencies are resolved and the gain is realized or realizable. Depending on the nature and timing of any such proceedings that may arise, an unfavorable resolution of a matter could materially affect the Company’s future consolidated results of operations, cash flows or financial position in a particular period. Except if otherwise indicated, it is not reasonably possible to determine the probability of loss or estimate damages for any of the matters discussed below, and therefore, the Company has not established reserves for any of these matters. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2023 | |
Leases [Abstract] | |
Leases | Leases The Company has operating leases primarily for its offices and warehouses, including the lease for its office headquarters in San Francisco, CA. The lease commenced in February 2019, with an original term of approximately 8 years and an option to renew for an additional 5 years. Lease payments are made monthly and are subject to annual increases of approximately 3%. The Company’s operating leases have remaining lease terms between 1 and 5 years. These leases require monthly lease payments that may be subject to annual increases throughout the lease term. The components of lease expense included in the Company’s statements of operations for the years ended December 31, 2023, 2022 and 2021, include operating lease expense of $6.3 million, $7.6 million and $7.4 million, respectively, and variable lease expense $1.2 million, $0.8 million and $0.6 million, respectively. Variable lease expenses are primarily related to payments made to lessors for common area maintenance, property taxes, insurance, and other operating expenses and are classified as lease expense due to the Company’s election to not separate lease and non-lease components. Cash paid for amounts included in the measurement of operating lease liabilities for the years ended December 31, 2023, 2022 and 2021 was $6.6 million, $6.9 million and $6.8 million which was included in net cash used in operating activities in the Company’s statements of cash flows. Due to the Company’s renewal of its lease at one of its warehousing facilities, there were $2.4 million of new operating lease right-of-use assets obtained in exchange for new operating lease liabilities during the year ended December 31, 2023. There were no new operating lease right-of-use assets obtained in exchange for new operating lease liabilities during the years ended December 31, 2022 and 2021. Maturities of operating lease liabilities were as follows (in thousands): Year Ended December 31, Operating Lease 2024 $ 5,968 2025 6,043 2026 6,219 2027 4,241 2028 1,404 Thereafter — Total undiscounted lease payments 23,875 Less: Imputed interest (5,982) Present value of lease liabilities 17,893 Less: Operating lease liabilities, current (3,489) Operating lease liabilities, noncurrent $ 14,404 The weighted-average remaining lease term and discount rate related to the Company’s operating lease liabilities as of December 31, 2023 and 2022 were 3.8 years and 4.5 years, respectively, and 15.5% as of December 31, 2023 and 2022 . Impairment During the years ended December 31, 2023 and 2022, the Company recorded $2.3 million and $5.3 million of impairment charges, respectively, on its operating lease right-of-use assets related to the Company’s corporate office space located in San Francisco, California with the impairment expense being recorded within selling, general, and administrative on the consolidated statements of operations. |
Redeemable Convertible Preferre
Redeemable Convertible Preferred Stock | 12 Months Ended |
Dec. 31, 2023 | |
Temporary Equity Disclosure [Abstract] | |
Redeemable Convertible Preferred Stock | Redeemable Convertible Preferred Stock On August 11, 2023 (the “Preferred Stock Closing Date”), the Company entered into a subscription agreement (the “Preferred Stock Subscription Agreement”) with Volition Capital Fund IV, L.P. (“Volition”) where the Company received gross proceeds of $10.0 million in exchange for 10,000 shares of the Company’s Series A Redeemable Convertible Preferred Stock (the “Preferred Stock”), a warrant to purchase 1,579,778 shares of Grove’s Class A common stock at an exercise price of $6.33 per share (the “Volition Warrant”) and a separate warrant to Volition to purchase 20,905 shares of Grove’s Class A common stock at an exercise price of $0.01 per share (the “Volition Penny Warrant”). The Volition Warrant and the Volition Penny Warrant each expire on the three-year anniversary of the Preferred Stock Closing Date and are not exercisable until six months following the Preferred Stock Closing Date. The Company allocated the proceeds received on the Preferred Stock Closing Date to the Preferred Stock, Volition Warrant and Volition Penny Warrant (together the “Volition Warrants”) on a relative fair value basis. The aggregate fair value of the Volition Warrants was $0.7 million and determined using a Black-Scholes Model with the following inputs: Fair value of common stock $2.16 Exercise Price $0.01 — $6.33 Expected term in years 3.0 Risk free rate 4.56% Volatility 67.24% Dividend yield —% Gross proceeds and transaction costs were allocated between the Preferred Stock and Volition Warrants as follows: Gross Proceeds Transaction Costs Net Proceeds Preferred Stock $ 9,336 $ (292) $ 9,044 Volition Warrants 664 (21) 643 Total $ 10,000 $ (313) $ 9,687 Significant provisions of the Preferred Stock are as follows: Dividends The holders of the outstanding shares of Preferred Stock shall be entitled to receive, only when, as and if declared by the Board of Directors, out of any funds and assets legally available therefore, dividends at the rate of 6% per annum of the original issuance price for each share of Preferred Stock, prior and in preference to any declaration or payment of any other dividend (other than dividends on shares of Class A common stock payable in shares of Class A common stock). The dividends on shares of the Preferred Stock accrue from day to day, whether or not declared, and shall be cumulative, provided, however, such accruing dividends shall be payable only when, as, and if declared by the Board of Directors and the Company shall be under no obligation to pay such accruing dividends. Total cumulative undeclared dividends as of December 31, 2023 was $0.2 million. Liquidation Upon any liquidation transaction, whether voluntary or involuntary, each holder of outstanding shares of Preferred Stock shall be entitled to be paid out of the assets of the Company legally available for distribution to stockholders, whether such assets are capital, surplus or earnings, prior and in preference to any distribution of any of the assets of the Corporation to the holders of the Class A common stock, Class B common stock or of any other stock or equity security, an amount in cash, equal to the greater of (i) the Preferred Stock original issuance price held by such holder plus any declared but unpaid dividends to which such holder of outstanding shares of the Preferred Stock is then entitled, if any, or (ii) the amount each holder of a share of the Series A would be entitled on an as-converted into Class A common stock basis, based on the then effective Conversion Price, as defined by the Certificate of Designations of Series A Convertible Preferred Stock, (without regard to any restrictions or limitations on conversion) immediately prior to such liquidation transaction. If, upon any Liquidation Transaction, the funds legally available for distribution to all holders of the Preferred Stock shall be insufficient to permit the payment to all such holders of the full liquidation preference amount, then the entire funds legally available for distribution shall be distributed ratably among the holders of the Preferred Stock ratably in proportion to the full preferential amounts to which they are entitled to. Voting Each holder of Preferred Stock is entitled to the number of votes equal to the number of shares of Class A common stock into which such shares of the Preferred Stock are then convertible based on the Conversion Price as of the record date for determining stockholders entitled to vote on such matter and shall have voting rights and powers equal to the voting rights and powers of the Class A common stock (except as otherwise expressly provided herein or as required by law, voting together with the Class A common stock as a single class) and shall be entitled to notice of any such stockholders’ meeting in accordance with the Bylaws of the Company. For so long as an original purchaser of the Preferred Stock beneficially holds 20% or more of the shares of Class A Common Stock (calculated on as converted basis based on the Conversion Price (as adjusted for stock splits, combinations, stock dividends, recapitalizations and the like) such purchaser acquired pursuant to the Preferred Stock Subscription Agreement, such purchaser shall have the right to designate up to one director for election to the Board of Directors as a Class I Director. Conversion At the option of the holder, each share of Preferred Stock is convertible into fully paid and non-assessable shares of Class A common stock equal to the sum of (i) the amount determined by dividing (x) the Preferred Stock original issuance price plus any declared but unpaid dividends to which such share of the Preferred Stock is then entitled by (y) $2.11 (as adjusted for stock splits, combinations, stock dividends, recapitalizations and the like) in effect on the date the certificate is surrendered for conversion or notice is provided for non-certificated shares and (ii) the Subsequent Issuance Share Adjustment, as defined by the Certificate of Designations of Series A Convertible Preferred Stock. The Company may, in its sole discretion, upon five Redemption At the option of the holder, the Preferred Stock is redeemable for the original issuance price plus any declared but unpaid dividends following the seventh anniversary of the Preferred Stock Closing Date. The Company evaluated these features and determined that the Preferred Stock is appropriately classified as temporary equity due to the redemption provisions allowing the holders to redeem the Preferred Stock upon a liquidation transaction or following the seventh anniversary of the closing date. The Volition Warrants and Volition Penny Warrants are classified within additional paid-in capital on the Company’s balance sheet at December 31, 2023. |
Common Stock and Warrants
Common Stock and Warrants | 12 Months Ended |
Dec. 31, 2023 | |
Earnings Per Share [Abstract] | |
Common Stock and Warrants | Common Stock and Warrants Prior to the Business Combination, Legacy Grove had one class of authorized common stock (Class B common stock). The outstanding shares of Legacy Grove common stock is presented on the consolidated balance sheet and on the statements of convertible preferred stock, contingently redeemable convertible common stock and stockholders’ deficit for the year ended December 31, 2023. Merger Transaction On the Closing Date and in accordance with the terms and subject to the conditions of the Business Combination, each common stock, par value $0.0001 per share (other than Backstop Tranche 1 Shares), preferred stock, outstanding options (whether vested or unvested), restricted stock units (whether vested or unvested) and warrants of Legacy Grove was canceled and converted into a comparable number of awards (i) that consisted of either the rights to receive or acquire shares of the Company’s Class B common stock, par value $0.0001 per share, as determined by the exchange ratio, and (ii) the right to receive a number of the Company’s Earn-Out shares. Each Backstop Tranche 1 Shares issued to the Backstop Investor pursuant to the Backstop Subscription Agreement was canceled and converted into the right to receive a number of shares of the Company’s Class B common stock equal to the exchange ratio, which were immediately exchanged on a one-for-one basis for shares of the Company’s Class A common stock). The exchange ratio is approximately 1.1760. On June 16, 2022, in connection with the closing of the Business Combination, the Company amended and restated its certificate of incorporation to authorize 900,000,000 shares, consisting of (a) 800,000,000 shares of common stock, including (i) 600,000,000 shares of Class A common stock, and (ii) 200,000,000 shares of Class B common stock, and (b) 100,000,000 shares of preferred stock. The rights of the holders of the Company’s Class A common stock and Class B common stock are identical, except with respect to number of voting rights. Holders of the Company’s Class A common stock are entitled to one vote per share and holders of Class B common stock are entitled to ten votes per share. Each share of Class B common stock is convertible into one share of the Company’s Class A common stock any time at the option of the holder, and is automatically converted into one share of the Company’s Class A common stock upon transfer (except for certain permitted transfers). Once converted into the Company’s Class A common stock, the Class B common stock will not be reissued. The Company’s Board of Directors has the authority to issue shares of the Preferred Stock in one or more series and to determine the voting rights, designations, powers, preferences, other rights and restrictions of each such series of shares. Earn-Out Shares At the closing of the Business Combination, Class B common stock shareholders (including Grove stock option, restricted stock unit, and warrant holders) were issued 2,799,696 shares of the Company’s Class B Common Stock (“Earn-Out Shares”). During the year ended December 31, 2023, certain shareholders surrendered an aggregate 197,284 Earn-Out Shares which, per terms of the Merger Agreement, were cancelled by the Company and not reallocated among the remaining holders. The remaining 2,602,412 Earn-Out Shares will vest (i) with respect to 1,301,206 of the Earn-Out Shares, upon the closing price of the Company’s Class A common stock equaling or exceeding $62.50 per share for any 20 trading days within any 30-trading-day period and (ii) with respect to 1,301,206 of the Earn-Out Shares, upon the closing price of the Company’s Class A common stock equaling or exceeding $75.00 per share for any 20 trading days within any 30-trading-day period. Such events can occur during a period of ten years following the Business Combination (the “Earn-Out Period”). If, during the Earn-Out Period, there is a Change of Control Transaction (as defined in the Merger Agreement), then all remaining triggering events that have not previously occurred and the related vesting conditions shall be deemed to have occurred. If, upon the expiration of the Earn-Out Period, any Earn-Out Shares shall have not vested, then such Earn-Out Shares shall be automatically forfeited by the holders thereof and canceled by the Company. The settlement amount to be paid to the selling shareholders of the Earn-Out Shares can change and is not indexed to the Company’s stock. Due to the change in control event contingency and variable number of Earn-Out shares to be settled to the holders, the Earn-Out Shares fail the equity scope exception and are accounted for as a derivative in accordance with ASC 815 and will be remeasured on a recurring basis at fair value, with changes in fair value recorded in the condensed consolidated statements of operations. As of December 31, 2023, the Company did not meet any Earn-Out thresholds. Class A Common Stock Warrants As the accounting acquirer, Grove Collaborative, Inc. is deemed to have assume d 6,700,000 P rivate Placement Warrants for the Company’s Class A common stock that were held by Virgin Group Acquisition Sponsor II LLC (the “Sponsor”) and 8,050,000 of the Company’s Class A common stock Public Warrants that were held by VGAC II’s shareholders. The warrants will expire on July 16, 2027, or earlier upon redemption or liquidation. Five whole warrants must be bundled together in order to receive one share of the Company’s Class A common stock at an effective exercise price of $57.50. Subsequent to the Closing of the Business Combination, the Private Placement and Public Warrants for shares of the Company’s Class A common stock meet liability classification requirements since the warrants may be required to be settled in cash under a tender offer. In addition, Private Placement warrants are potentially subject to a different settlement amount as a result of being held by the Sponsor which precludes the private placement warrants from being considered indexed to the entity's own stock. Therefore, these warrants are classified as liabilities and included in derivative liabilities on the Company's balance sheet as of December 31, 2023. As of December 31, 2023, the following Warrants were outstanding on an as converted basis: Warrant Type Shares Exercise Price Public Warrants 1,460,146 $ 57.50 Private Placement Warrants 1,340,000 $ 57.50 Public Warrants The Public Warrants become exercisable into shares of the Company’s Class A common stock commencing on July 16, 2022 and expire on July 16, 2027, or earlier upon redemption or liquidation. At closing, the Company assumed 8,050,000 public warrants. On June 16, 2023, the Company agreed to cancel 749,291 Public Warrants from certain holders. Five whole warrants must be bundled together in order to receive one share of the Company’s Class A common stock at an effective exercise price of $57.50 per share, subject to certain adjustments. The Company may redeem, with 30 days written notice, each whole outstanding Public Warrant for cash a t a price of $0.01 per warrant if the Reference Value equals or exceeds $90.00 per share, subject to certain adjustments. The warrant holders have the right to exercise their outstanding warrants prior to the scheduled redemption date during the Redemption Period at and effective price of $57.50 per share, subject to certain adjustments. If the Company calls the Public Warrants for redemption, the Company will have the option to require all holders that wish to exercise the Public Warrants to do so on a “cashless basis”, as described in the warrant agreement. For purposes of the redemption, “Reference Value” shall mean the last reported sales price of the Company’s Class A common stock for any twenty thirty Private Placement Warrants The Private Placement Warrants are identical to the Public Warrants, except that the Private Placement Warrants were not transferable, assignable or salable until 30 days after the completion of a Business Combination, subject to certain limited exceptions. Additionally, the Private Warrants are exercisable on a cashless basis and are non-redeemable so long as they are held by the initial purchasers or their permitted transferees. If the Private Warrants are held by someone other than the initial purchasers or their permitted transferees, then such warrants will be redeemable by the Company and exercisable by the warrant holders on the same basis as the Public Warrants. At Closing, the Company assumed 6,700,000 Private Placement Warrants. Backstop Warrants In connection with the Business Combination and Backstop Subscription Agreement, the Company issued to the Corvina Holdings limited warrants to purchase 775,005 shares of the Company’s Class A common stock with an exercise price of $0.05 per share (such warrants, the “Backstop Warrants”). The Backstop Warrants are exercisable by the Backstop Investor at any time on or before June 16, 2027, and are on terms customary for warrants of such nature. None of these warrants have been exercised as of December 31, 2023. Standby Equity Purchase Agreement On July 18, 2022, the Company entered into a Standby Equity Purchase Agreement (the “SEPA”) with YA II PN, LTD (“Yorkville” or “SEPA Investor”), pursuant to which Yorkville has agreed to purchase up to $100 million shares of common stock from time to time over a period of 36 months, subject to certain conditions. The shares of the Company’s common stock that may be issued under the SEPA may be sold by us to Yorkville at our discretion from time to time and sales of the Company’s common stock under the SEPA will depend upon market conditions and other factors. Additionally, in no event may the Company sell more than 6,511,532 shares of common stock to Yorkville under the SEPA, which number of shares is equal to 19.99% of the shares of the Company's common stock outstanding immediately prior to the execution of the Equity Purchase Agreement (the “Exchange Cap”), unless stockholder approval is obtained to issue shares of common stock in excess of the Exchange Cap in accordance with applicable NYSE rules or comply with certain other requirements as described in the Equity Purchase Agreement. As a result, unless the Company’s stock price exceeds $15.33, the Company will be unable to sell the full $100.0 million commitment to Yorkville without seeking stockholder approval to issue additional shares in excess of the Exchange Cap. The purchase price per share for the Company’s Class A common stock will be 97.55% of the Volume-Weighted Average Price (“VWAP”) of the Company’s Class A common stock over the Pricing Period, as defined by the agreement. The Company deferred $0.7 million of transaction costs related to the SEPA and will offset these costs against proceeds of any sales under the SEPA. As of December 31, 2023, the Company has sold 147,965 shares under the SEPA for total gross proceeds of $2.4 million. Issuance costs related to these shares are not material. As of December 31, 2023, there were 6,363,567 shares available to be sold to Yorkville under the Exchange Cap. HGI Subscription Agreement On November 10, 2022, the Company entered into a subscription agreement (the “HGI Subscription Agreement”) with HCI Grove LLC (“HGI”), pursuant to which, among other things, the Company issued to HGI 396,825 shares of the Company’s Class A common stock (“Subscribed Shares”) for aggregate proceeds of $2.5 million. Under the terms of the HGI Subscription Agreement, the Company was required to file a registration statement for the Subscribed Shares upon the Company becoming eligible to file a registration statement on Form S-3 and in any event prior to July 15, 2023 (the “Subscribed Shares Registration Statement”). The Subscribed Shares Registration Statement was filed on July 14, 2023. The HGI Subscription Agreement also provides that the Company will issue additional shares (the “HGI Additional Shares”) of the Company’s Class A common stock to HGI in the event that the volume weighted average price of the Company’s Class A common stock is less than $6.30 during the three Concurrent with the HGI Subscription Agreement, the Company also entered into a consulting services agreement (the “Consulting Agreement”) with HCI Grove Management LLC (the “Consultant”). In consideration for the services under the Consulting Agreement, the Company (i) paid the Consultant an upfront fee of $150,000 and (ii) issued the Consultant 905,000 warrants (the “HGI Warrant Shares”) to purchase shares of the Company’s Class A common stock (the “HGI Warrants”), at an exercise price per share of $6.30 (the “Exercise Price”). On November 10, 2022, 40% of the HGI Warrant Shares vested and became issuable (the “Vested Warrants”), and the remaining HGI Warrant Shares (the “Unvested Warrants”) shall vest and become exercisable if, prior to December 31, 2024, the Company achieves at least $100.0 million in quarterly net revenue on a consolidated basis or if the Company consummates a Change of Control, as defined in HGI Warrants. If, as a result of the Change of Control, the Company’s equity holders own less than 25% of the equity securities of the surviving entity in such Change of Control, the Exercise Price shall be increased by 50%. The Company determined the Vested Warrants and Unvested Warrants qualify as stock based compensation to a nonemployee. The Company recorded $1.2 million in stock based compensation expense on the execution date of the HGI Subscription Agreement. The Company performs a probability reassessment related to the Unvested Warrants each reporting period and will recognize the cumulative catch-up adjustment based on the grant-date fair value when the vesting conditions are probable of being achieved. Any remaining expense will continue to ratably recognized until the date the revenue target is achieved, and the Unvested Warrants are fully vested. The fair value of Vested Warrants and Unvested Warrants granted to HGI was estimated at the date of grant using the Black-Scholes option-pricing model, with the following assumptions: Fair value of common stock $6.30 Expected term in years 4.5 Volatility 62.50% Risk-free interest rate 4.00% Dividend yield — Reserved for Issuance The Company has the following shares of common stock reserved for future issuance, on an as-if converted basis: December 31, 2023 December 31, 2022 Class A Common Stock Class B Common Stock Class A Common Stock Class B Common Stock Private Placement Warrants 1,340,000 — 1,340,000 — Public Warrants 1,460,146 — 1,610,000 — Backstop Warrants 775,005 — 775,005 — Volition Penny Warrants 20,905 — — — Shares issuable upon conversion of redeemable convertible preferred stock 4,739,336 — — — Other Outstanding common stock warrants 2,484,778 113,776 905,000 113,776 Outstanding stock options 1,084,456 809,847 1,264,302 839,705 Outstanding restricted stock units 4,703,850 9,005 3,864,448 32,149 Shares available for issuance under 2022 Equity Incentive Plan 4,642,495 — 4,158,872 — Shares available for issuance under ESPP 746,212 — 654,814 — Total shares of common stock reserved 21,997,183 932,628 14,572,441 985,630 |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation Equity Incentive Plan In 2016, Legacy Grove adopted the 2016 Equity Incentive Plan (the “2016 Plan”). The 2016 Plan provides for the granting of stock-based awards to employees, directors and consultants under terms and provisions established by the Board of Directors. In April 2022, the Company’s Board of Directors authorized an increase in the number of shares available for issuance under the 2016 Plan by 700,000. In addition, all equity awards of Legacy Grove that were issued under the 2016 Plan were converted into comparable equity awards that are settled or exercisable for shares of the Company’s Class B common stock. As a result, each of Legacy Grove’s equity awards were converted into a comparable equity award with respect to shares of the Company’s Class B common stock based on an exchange ratio of approximately 1.1760. As of the effective date of the 2022 Plan (as defined below), no further stock awards have been or will be granted under the 2016 Plan. In June 2022, the stockholders of the Company approved the Grove Collaborative Holdings, Inc. 2022 Equity and Incentive Plan (the “2022 Plan”). The Plan provides for the granting of stock-based awards to eligible participants, specifically officers, other employees, non-employee directors, consultants, independent contractors under terms and provisions established by the Board of Directors. The 2022 Plan authorizes the issuance of the Company’s Class A common stock of up to 8,107,744 shares. The number of shares available shall increase annually on the first day of each calendar year continuing until (and including) calendar year December 31 2032, with annual increases equal to lesser of (i) 5% of the number of shares of the Company’s Class A and Class B common stock issued and outstanding on December 31 of the immediately preceding fiscal year, and (ii) an amount determined by the Board of Directors. Stock option activity under the 2016 Plan is as follows (in thousands, except share and per share amounts): Options Outstanding Number of Options Weighted–Average Exercise Price Weighted-Average Remaining Contractual Life (years) Aggregate Intrinsic Value Balance – December 31, 2022 2,104,007 $ 7.95 4.87 $ 61 Exercised (37,334) 1.90 Cancelled/forfeited (172,370) 10.73 Balance – December 31, 2023 1,894,303 7.82 4.23 32 Options vested and exercisable – December 31, 2023 1,681,368 $ 6.43 3.86 $ 32 No stock options were granted during the years ended December 31, 2023 and 2022. The weighted-average grant date fair value of stock options granted during the year ended December 31, 2021 was $18.65 per share. The total grant date fair value of stock options that vested during the years ended December 31, 2023, 2022 and 2021 was $0.2 million, $10.5 million and $13.3 million, respectively. The aggregate intrinsic value of options exercised during the years ended December 31, 2023, 2022 and 2021 was nominal, $1.0 million and $4.3 million, respectively. The aggregate intrinsic value is the difference between the current fair value of the underlying common stock and the exercise price for in-the-money stock options. Market-Based Stock Options In February 2021, the Company granted 203,434 stock options with market and liquidity event-related performance-based vesting criteria with an exercise price of $18.85 per share. 100% of the stock options vest upon valuation of the Company’s stock at a stated price upon occurrence of specified transactions. Fair value was determined using the probability weighted expected term method (“PWERM”), which involves the estimation of future potential outcomes as well as values and probabilities associated with each potential outcome. Two potential scenarios were used in the PWERM that utilized 1) the value of the Company’s common equity, and 2) a Monte Carlo simulation to specifically value the award. The total grant date fair value of the award was determined to be $5.5 million. Since a liquidity event is not deemed probable until such event occurs, no compensation cost related to the performance condition was recognized prior to the Business Combination on June 16, 2022. Subsequently, the Company recorded stock-based compensation expense of $4.6 million for service periods completed prior to the Business Combination. As of December 31, 2023, the market-based vesting criteria had not been met. Restricted Stock Units The following table summarizes the activity for all RSUs under all of the Company’s equity incentive plans for the year ended December 31, 2023: Number of shares Weighted–Average Grant Date Fair Value Per Share Unvested – December 31, 2022 3,896,597 $ 8.78 Granted 4,073,223 2.21 Vested (2,484,612) 7.15 Cancelled/forfeited (772,353) 7.56 Balance – December 31, 2023 4,712,855 4.16 RSUs granted under the 2016 Plan contained vesting conditions based on continuous service and the occurrence of a specified liquidity event, which is considered a performance condition. The performance condition was satisfied on June 16, 2022 with the closing of the Business Combination. Accordingly, the Company started recognizing stock compensation expense in the three months ended June 30, 2022 using the accelerated attribution method from the grant date for RSUs granted under the 2016 Plan. The total cumulative catch up expense related to prior periods recognized for the RSUs was $11.9 million. CEO Award On August 16, 2023, the Company’s Board of Directors granted its Chief Executive Officer an aggregate of 850,000 Class A common stock RSUs (the “CEO Award”) separate from the Grove Collaborative Holdings, Inc. 2022 Equity and Incentive Plan. A portion of the CEO Award contains market based vesting requirements consisting of four tranches that vest separately upon the Company’s public stock price meeting certain price thresholds. Additionally, the CEO Award also contains a service requirement with 25% of the shares vesting each year from the grant date for four years. The CEO Award has a total aggregate value of $2.0 million. During the period ended December 31, 2023, the Company recorded $0.3 million of stock-based compensation expense related to the CEO Award. Employee Stock Purchase Plan In May 2022, the Company’s board of directors adopted the 2022 Employee Stock Purchase Plan (the “ESPP”), which was subsequently approved by the Company’s stockholders. The ESPP went into effect on November 16, 2022. Subject to certain limitations contained therein, the ESPP allows eligible employees to contribute, through payroll deductions, up to 20% of their eligible compensation to purchase the Company’s Class A common stock at a discounted price per share. Subject to adjustment in the case of certain capitalization events, a total of 3,274,070 shares of Class A common stock of the Company were available for purchase at adoption of the ESPP. Pursuant to the ESPP, beginning the fiscal year ended December 31, 2023 the annual share increase pursuant to the evergreen provision is determined based on the lesser of (i) 3,274,070 shares (ii) 1% of the number of shares of the Company’s Class A Common Stock and Class B Common Stock issued and outstanding on December 31 of the immediately preceding fiscal year, or (iii) such number of shares as determined by the Board of Directors. The Company recognized $0.8 million and $0.1 million of expense related to the ESSP for the years ended December 31, 2023 and 2022, respectively. There were 263,219 shares of Class A common stock purchased under the ESPP during the year ended December 31, 2023 with a weighted average fair value of $0.85 . No shares were purchased under the ESPP during the year ended December 31, 2022. The following assumptions were used in estimating the fair values of shares under the ESPP for the period indicated: Year Ended December 31, 2023 Fair value of common stock $2.37 - $6.20 Expected term (in years) 0.50 - 1.00 Volatility 66.00% - 73.00% Risk-free interest rate 4.54% - 5.24% Dividend yield — Equity Award Modifications During the year ended December 31, 2022, the Company modified stock options held by former and existing employees to accelerate vesting and to extend the post-termination exercise period of the awards from 60 days to 1, 2 or 10 years after termination, as well as accelerated the vesting of certain stock options and RSUs. The modifications resulted in modification expenses of $2.9 million during the year ended December 31, 2022. Equity award modifications were immaterial for the year ended December 31, 2023. On September 19, 2022, the Company’s Board of Directors approved a stock option exchange which permitted certain employee and non-employee option holders, subject to specified conditions, to exchange some or all of their outstanding stock options to purchase shares of the Company's common stock for RSUs to be issued under the 2022 Plan (the “Option Exchange”). The Option Exchange commenced on September 26, 2022 and concluded on October 21, 2022, with RSUs being issued in the Option Exchange on October 27, 2022 following approval by the Compensation Committee of the Company’s Board of Directors. For fully vested stock options that were tendered in the Option Exchange, the Company issued RSUs which were unvested immediately following the Option Exchange and vested or will vest 50% on each of February 15, 2023 and May 15, 2023. RSUs issued in exchange for unvested options vested or will vest in equal installments on each February 15, May 15, August 15 and November 15 until becoming fully vested in the calendar quarter in which the stock option tendered in exchange for such RSUs would have fully vested had it not been exchanged. As a result of the Option Exchange, 2,595,496 stock options, with a weighted average exercise price of $16.20, were exchanged for 1,916,450 RSUs. The aggregate incremental stock-based compensation expected to be recognized over the vesting periods for awards related to the Option Exchange is $4.4 million, Stock-Based Compensation Expense For the years ended December 31, 2023, 2022 , and 2021 the Company recognized a total of $15.5 million, $43.6 million and $14.6 million of stock-based compensation expense, respectively, related to stock options and RSUs granted to employees and non-employees. Stock-based compensation expense was predominately recorded in selling, general and administrative expenses in the statements of operations for each period presented. As of December 31, 2023, the total unrecognized compensation expense related to unvested options and RSUs was $17.8 million, which the Company expects to recognize over an estimated weighted average period of 1.9 years. |
Provision for Income Taxes
Provision for Income Taxes | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Provision for Income Taxes | Provision for Income Taxes The Company is subject to U.S. federal, state, and local corporate income taxes. The Company’s effective income tax rate reconciliation is composed of the following for the periods presented: Year Ended December 31, 2023 2022 2021 Federal statutory rate 21.0 % 21.0 % 21.0 % Stock-based compensation (9.2) % (7.3) % (0.6) % Remeasurement of derivative liabilities 0.1 % 17.5 % (0.2) % Other — % 0.4 % — % Change in valuation allowance (12.0) % (31.6) % (20.2) % Provision for income taxes (0.1) % — % — % The components of net deferred tax assets are as follows (in thousands): December 31, 2023 2022 Deferred tax assets: Net operating loss carryforwards $ 125,850 $ 119,345 Deferred revenue 1,745 2,581 Inventory reserve and uniform capitalization 2,509 3,365 Operating lease liabilities 4,364 4,720 Accruals and other reserves 1,332 1,876 Stock-based compensation 5,570 6,856 Business Interest Carryforwards 7,660 4,840 Other 268 268 Total deferred tax assets 149,298 143,851 Less: valuation allowance (145,711) (139,033) Total deferred tax assets, net of valuation allowance 3,587 4,818 Deferred tax liabilities: Operating lease right-of-use assets (2,344) (2,933) Depreciation and amortization (1,243) (1,885) Total deferred tax liabilities (3,587) (4,818) Net deferred tax assets $ — $ — The following summarizes the activity related to valuation allowances on deferred tax assets: December 31, 2023 2022 Valuation allowance, as of beginning of year $ 139,033 $ 107,301 Valuation allowance established 5,947 31,270 Changes to existing valuation allowances 731 462 Valuation allowance, as of end of year $ 145,711 $ 139,033 As of December 31, 2023, the Company had federal and state net operating loss (“NOL”) carryforwards of $536.8 million and $226.8 million, respectively. $511.9 million of the federal NOL carryforwards have no expiration and can only be used to offset 80% of the Company’s future taxable income. The state NOL carryforwards include $197.0 million with definitive expiration dates and $29.8 million with no expiration. The state NOLs are presented as an apportioned amount. Valuation Allowance The realization of deferred tax assets is based on historical tax positions and estimates of future taxable income. We evaluate both the positive and negative evidence that we believe is relevant in assessing whether we will realize the deferred tax assets. A valuation allowance is recorded when it is more likely than not that some portion of the deferred tax assets will not be realized. To the extent that a valuation allowance has been established and it is subsequently determined that it is more likely than not that the deferred tax assets will be recovered, the valuation allowance will be released. The Company’s valuation allowance was $145.7 million as of December 31, 2023 , which represents an increase of $6.7 million from the prior year. The increase in the valuation allowance primarily relates to the following: (i) an increase of $5.9 million relating to current year operating activity, and (ii) an increase of $0.7 million relating to changes to the state blended rate. The ultimate realization of deferred tax assets depends on the generation of future taxable income during the periods in which those temporary differences are deductible. We consider the scheduled reversal of deferred tax liabilities (including the effect of available carryback and carryforward periods), as well as projected pre-tax book income in making this assessment. To fully utilize the NOL and tax credits carryforwards we will need to generate sufficient future taxable income in each respective jurisdiction. Uncertain Tax Positions During the years ended December 31, 2023 and 2022, the Company did not record any uncertain tax positions and the balances of unrecognized tax positions were nominal. The amount of unrecognized tax benefits relating to the Company’s tax positions is subject to change based on future events including, but not limited to, the settlements of ongoing audits and/or the expiration of applicable statute of limitations. Although the outcomes and timing of such events are highly uncertain, the Company does not expect the unrecognized tax benefits to change significantly over the next 12 months. The Company recognizes interest and penalties related to uncertain tax positions in its provision for income taxes. Accrued interest and penalties are included within the related tax liability. |
Net Loss Per Share Attributable
Net Loss Per Share Attributable to Common Stockholders | 12 Months Ended |
Dec. 31, 2023 | |
Earnings Per Share [Abstract] | |
Net Loss Per Share Attributable to Common Stockholders | Net Loss Per Share Attributable to Common Stockholders The following table presents the calculation of basic and diluted income (loss) per share attributable to common stockholders (in thousands, except share and per share data): Year Ended December 31, 2023 2022 2021 Net loss, basic and diluted $ (43,232) $ (87,715) $ (135,896) Less: Accretion on Series A redeemable convertible preferred stock (957) — — Less: Series A accumulated dividends (233) — — Net loss attributable to common stockholders, basic and diluted $ (44,422) $ (87,715) $ (135,896) Net loss per share attributable to common stockholders, basic and diluted $ (1.28) $ (4.85) $ (79.28) Weighted-average shares used in computing net loss per share attributable to common stockholders, basic and diluted 34,797,582 18,101,407 1,714,230 The following potentially dilutive shares were excluded from the computation of diluted net loss per share attributable to common stockholders for the periods presented, because including them would have been anti-dilutive (on an as-converted basis): Year Ended December 31, 2023 2022 2021 Convertible preferred stock 4,739,336 — 23,057,403 Common stock options 1,894,303 2,104,007 5,576,504 Restricted stock units 4,712,855 3,896,597 355,436 Preferred stock warrants — — 147,152 Common stock warrants 2,598,554 1,018,776 137,669 Private and Public Placement Warrants 2,800,146 2,950,000 — Earn-Out Shares 2,602,554 2,799,696 — Shares subject to repurchase — — 16,350 ESPP Shares 67,178 — — Total 19,414,926 12,769,076 29,290,514 |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2023 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events In March 2024, the Company announced the planned closure of the St. Peters, Missouri fulfillment center in the second quarter of 2024 to further optimize fulfillment operations. As a result of this announcement, the Company expects to incur charges including, but not limited to, certain exit costs, employee severance charges and certain asset impairments. The Company is currently evaluating the full impact of this announcement on its consolidated financial statements. In March 2024, the Company entered into an amendment to the lease agreement (the “Amendment”) for its headquarters located in San Francisco, California, to provide for, among other things, a reduction of the amount of space being leased and reduces the monthly lease payments owed to the lessor. In connection with the Amendment, the Company paid $4.8 million upon execution. The Amendment requires the Company to make escalating undiscounted annual base rent payments of up to $0.4 million, payable monthly. The lease term under the Amendment expires in May 2027. The Company is currently evaluating all the terms of this lease modification and its impact on the consolidated financial statements. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Pay vs Performance Disclosure | |||
Net loss | $ (43,232) | $ (87,715) | $ (135,896) |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Dec. 31, 2023 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Liquidity | Basis of Presentation and Liquidity The consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”). The Company has historically incurred losses and negative cash flows from operations and had an accumulated deficit of $621.1 million as of December 31, 2023. The Company’s existing sources of liquidity as of December 31, 2023 include cash and cash equivalents of $86.4 million. Prior to the Business Combination, the Company historically funded operations primarily with issuances of convertible preferred stock, contingently redeemable convertible common stock and the incurrence of debt. Upon the Closing of the Business Combination, the Company received $86.0 million in cash proceeds, net of transaction costs. The Company believes its existing cash, cash equivalents, together with its increased borrowing capacity through its recently entered into asset backed revolving line of credit (see Note 14, Subsequent Events), will be sufficient to fund its operations for a period of at least one year from the date the financial statements are issued. Over the longer-term, the Company will need to raise additional capital through debt or equity financing to fund future operations until it generates positive cash flows from operations. There can be no assurance that such additional debt or equity financing will be available on terms acceptable to the Company, or at all. |
Emerging Growth Company | Emerging Growth Company The Company is an “emerging growth company,” as defined in the Jumpstart Our Business Startups Act of 2012, or the JOBS Act. The JOBS Act permits companies with emerging growth company status to take advantage of an extended transition period to comply with new or revised accounting standards, delaying the adoption of these accounting standards until they would apply to private companies. Following the closing of the Business Combination, the Company uses this extended transition period to enable it to comply with new or revised accounting standards that have different effective dates for public and private companies until the earlier of the date the Company (1) is no longer an emerging growth company or (2) affirmatively and irrevocably opts out of the extended transition period provided in the JOBS Act. As a result, the Company’s consolidated financial statements may not be comparable to companies that comply with the new or revised accounting standards as of public company effective dates. |
Comprehensive Loss | Comprehensive Loss Comprehensive loss represents all changes in stockholders’ deficit. The Company’s net loss was equal to its comprehensive loss for all periods presented. |
Use of Estimates | Use of Estimates The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates, judgments and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements, as well as the reported amounts of revenue and expenses during the reporting period. These estimates made by management include the determination of reserves amounts for the Company’s inventories on hand, useful life of intangible assets, sales returns and allowances and certain assumptions used in the valuation of equity awards, the estimated fair value of common stock liability classified Public and Private Placement Warrants, the fair value of Earn-Out liabilities, the fair value of Additional Shares liabilities, the fair value of the Structural Derivative Liability and stock based compensation expense. Actual results could |
Segments | Segments |
Net Loss Per Share Attributable to Common Stockholders | Net Loss Per Share Attributable to Common Stockholders Net loss per share attributable to common stockholders is computed using the two-class method required for multiple classes of common stock and participating securities. The rights, including the liquidation and dividend rights and sharing of losses, of the Company’s Class A common stock and Class B common stock are identical, other than voting rights. As the liquidation and dividend rights and sharing of losses are identical, the undistributed earnings are allocated on a proportionate basis and the resulting net loss per share will, therefore, be the same for both the Company’s Class A and Class B common stock on an individual or combined basis. The Company’s participating securities included the Company’s redeemable convertible preferred stock, as the holders are entitled to receive cumulative dividends in the event that a dividend is paid on common stock. The Company also considers any shares issued on the early exercise of stock options subject to repurchase to be participating securities because holders of such shares have non-forfeitable dividend rights in the event a dividend is paid on common stock. The holders of redeemable convertible preferred stock, the holders of early exercised shares subject to repurchase nor the holders of the Company’s common stock warrants have a contractual obligation to share in losses. Basic net loss per share attributable to common stockholders is calculated by dividing the net loss, as adjusted for any accumulated dividends on Series A Redeemable Convertible Preferred Stock (Note 9, Redeemable Convertible Preferred Stock) for the period, attributable to common stockholders by the weighted-average number of shares of common stock outstanding during the period, adjusted for outstanding shares that are subject to repurchase or outstanding shares that are contingently returnable by the holder. Contingently issuable shares, including shares that are issuable for little or no cash consideration, are considered outstanding common shares and included in net loss per share as of the date that all necessary conditions have been satisfied. Such shares include the Backstop Warrants (Note 10, Common Stock and Warrants) and Volition Penny Warrants (Note 9 - Redeemable Convertible Preferred Stock). Diluted net loss per share is computed by giving effect to all potentially dilutive securities outstanding for the period using the treasury stock method or the if-converted method based on the nature of such securities. For periods in which the Company reports net losses, diluted net loss per common share attributable to common stockholders is the same as basic net loss per common share attributable to common stockholders, because potentially dilutive common shares are not assumed to have been issued if their effect is anti-dilutive. |
Cash, Cash Equivalents and Restricted Cash | Cash, Cash Equivalents and Restricted Cash Cash consists primarily of demand deposit bank accounts including amounts in transit from banks for customer credit card transactions. The Company considers all highly liquid investments with an original maturity from date of purchase of three months or less, or that are readily convertible into known amounts of cash, to be cash equivalents. As of December 31, 2023 and 2022, cash equivalents are comprised of money market funds. As of December 31, 2023, the Company held short-term restricted cash of $5.7 million which primarily represents cash on deposit with a financial institution to collateralize short-term obligations related to company credit cards. Long-term restricted cash of $2.8 million primarily represents cash on deposit with a financial institution to collateralize letters of credit related to the Company’s non-cancellable operating leases for its corporate headquarters. Restricted cash is stated at cost, which approximates fair value. |
Concentration of Risks | Concentration of Risks Financial instruments that potentially subject the Company to significant concentrations of credit risk consist primarily of cash and cash equivalents. The Company maintains the majority of its cash and cash equivalents in accounts with one financial institution within the United States, generally in the form of demand accounts. Deposits in this institution may exceed federally insured limits. Management believes minimal credit risk exists with respect to this financial institution and the Company has not experienced any losses on such amounts. |
Inventory | Inventory |
Property and Equipment | Property and Equipment |
Capitalized Software Development Costs | Capitalized Software Development Costs |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets |
Leases | Leases The Company determines if an arrangement is or contains a lease at inception. An arrangement is or contains a lease if it conveys the right to control the use of an identified asset for a period of time in exchange for consideration. If a lease is identified, classification is determined at lease commencement. Operating lease liabilities are recognized at the present value of the future lease payments at the lease commencement date. As the implicit rate in the Company’s lease is generally unknown, the Company estimates its incremental borrowing rate to discount lease payments. The incremental borrowing rate reflects the interest rate that the Company would have to pay to borrow on a collateralized basis an amount equal to the lease payments in a similar economic environment over a similar term. Operating lease right-of-use (“ROU”) assets are based on the corresponding lease liability adjusted for any lease payments made at or before commencement, initial direct costs, and lease incentives. Certain leases also include options to renew or terminate the lease at the election of the Company. The Company evaluates these options at lease inception and on an ongoing basis. Renewal and termination options that the Company is reasonably certain to exercise are included when classifying leases and measuring lease liabilities. Operating lease expense is recognized on a straight-line basis over the lease term. The Company has lease agreements with lease and non-lease components, which are accounted for as a single lease component. Lease payments for short-term leases with a term of twelve months or less are expensed on a straight-line basis over the lease term. The Company elected to not record operating lease right-of-use assets or operating lease liabilities for leases with an initial term of twelve months or less. Operating leases are included in operating lease right-of-use assets, operating lease liabilities, current, and operating lease liabilities, non-current on the Company’s balance sheet. |
Additional Shares Liabilities | Additional Shares Liabilities |
Earn-Out Liabilities | Earn-Out Liabilities The Company has recorded a liability related to the Earn-Out Shares, defined in Note 10, Common Stock and Warrants. The Company accounts for this instrument at fair value within derivative liabilities on its consolidated balance sheet with changes in fair value until settlement being recorded in its consolidated statement of operations. |
Warrant Liabilities | Warrant Liabilities The Company classifies Private Placement Warrants and Public Warrants (both defined and discussed in Note 10, Common Stock and Warrants) as liabilities within derivative liabilities on its consolidated balance sheet. At the end of each reporting period, changes in fair value during the period are recognized within the consolidated statements of operations. The Company will continue to adjust the warrant liability for changes in the fair value until the earlier of a) the exercise or expiration of the warrants or b) the redemption of the warrants, at which time the warrants will be reclassified to additional paid-in capital. |
Structural Derivative Liability | Structural Derivative Liability The Structural Derivative Liability is a compound embedded derivative related to features within the Structural Facility, defined in Note 6, Debt. The Company accounts for this instrument at fair value within derivative liabilities on its consolidated balance sheet with changes in fair value until settlement being recorded in its consolidated statement of operations. |
Revenue Recognition | Revenue Recognition The Company primarily generates revenue from the sale of both third-party and Grove Brands products through its DTC platform. Customers purchase products through the website or mobile application through a combination of directly selecting items from the catalog, items that are suggested by the Company’s recurring shipment recommendation engine, and features that appear in marketing on-site, in emails and on the Company’s mobile application. Most customers purchase a combination of products recommended by the Company based on previous purchases and new products discovered through marketing or catalog browsing. Customers can have orders auto-shipped to them on a specified date or shipped immediately through an option available on the website and mobile application. In order to reduce the environmental impact of each shipment, the Company has a minimum total sales order value threshold policy which is required to be met before the order qualifies for shipment. Payment is collected upon finalizing the order. The products are subsequently packaged and shipped to fill the order. Customers can customize future purchases by selecting products they want to receive on a specified cadence or by selecting products for immediate shipment. The Company also offers a VIP membership to its customers for an annual fee which includes the rights to free shipping, free gifts and early access to exclusive sales, all of which are available at the customers’ option, should they elect to make future purchases of the Company’s products within their annual VIP membership benefit period. Many customers receive a free 60-day VIP membership for trial purposes, typically upon their first qualifying order. After the expiration of this free trial VIP membership period, customers will be charged their annual VIP membership fee, which automatically renews annually, until cancelled. The customer is alerted before any VIP membership renews. In accordance with Accounting Standards Codification (“ASC”) Topic 606, Revenue from Contracts with Customers (“ASC 606”), the Company recognizes revenue when the customer obtains control of promised goods, in an amount that reflects the consideration that it expects to receive in exchange for those goods. To determine revenue recognition for arrangements that the Company determines are within the scope of ASC 606, the Company performs the following five steps: (i) identify the contract with a customer, (ii) identify the performance obligations in the contract, (iii) determine the transaction price, including variable consideration, if any, (iv) allocate the transaction price to the performance obligations in the contract, and (v) recognize revenue when (or as) the Company satisfies a performance obligation. The Company only applies the five-step model to contracts when it is probable that it will collect the consideration to which it is entitled in exchange for the goods it transfers to a customer. A contract with a customer exists when the customer submits an order online for the Company’s products. Under this arrangement, there is one performance obligation which is the obligation for the Company to fulfill the order. Product revenue is recognized when control of the goods is transferred to the customer, which occurs upon the Company’s delivery to a third-party carrier. The VIP membership provides customers with a suite of benefits that are only accessible to them at their option, upon making a future qualifying order of the Company’s products. The VIP membership includes free shipping, a select number of free products, and early access to exclusive sales. Under ASC 606, sales arrangements that include rights to additional goods or services that are exercisable at a customer’s discretion are generally considered options; therefore the Company must assess whether these options provide a material right to the customer and if so, they are considered a performance obligation. The Company concluded that its VIP membership benefits include two material rights, one related to the future discount (i.e. free shipping) on the price of the customer’s qualifying order(s) over the membership period and the second one relating to a certain number of free products provided at pre-set intervals within the VIP membership benefit period, that will only ship with a customer’s next qualifying order (i.e. bundled). At inception of the VIP membership benefit period, the Company allocates the VIP membership fee to each of the two material rights using a relative standalone selling price basis. Generally, standalone selling prices are determined based on the observable price of the good or service when sold separately to non-VIP customers and the estimated number of shipments and free products per benefit period. The Company also considers the likelihood of redemption when determining the standalone selling price for free products and then recognize these allocated amounts upon the shipment of a qualifying customer order. To date, customers buying patterns closely approximate a ratable revenue attribution method over the customers VIP Membership period. The Company deducts discounts, sales tax, customer service credits and estimated refunds to arrive at net revenue. Sales tax collected from customers is not considered revenue and is included in accrued liabilities until remitted to the taxing authorities. The Company has made the policy election to account for shipping and handling as activities to fulfill the promise to transfer the good. Outbound shipping, handling and packaging expenses are recognized upon shipment and classified within selling, general and administrative expenses. Discounts are recorded as a reduction to revenue when revenue is recognized. The Company records a refund reserve based on historical Contractual Liabilities |
Cost of Goods Sold | Cost of Goods Sold Cost of goods sold consists of the product costs of merchandise, inbound freight costs, vendor allowances, costs associated with inventory shrinkage, damages and inventory write-offs and changes to the Company’s inventory reserves. Vendor Allowances The Company receives discounts and other product related reimbursements from certain vendors through a variety of programs intended to offset the purchase prices of inventory and for the promotion and selling of that vendor’s inventory. Discounts and other reimbursements are recorded as a reduction in the cost of the associated inventory purchased. |
Advertising Expenses | Advertising Expenses |
Product Development Expenses | Product Development Expenses |
Selling, General and Administrative Expenses | Selling, General and Administrative Expenses Selling, general and administrative expenses consist primarily of compensation and benefit costs for personnel involved in general corporate functions, including stock-based compensation expense, and certain fulfillment costs, as further outlined below. Selling, general and administrative expenses also include the allocated facilities, equipment, depreciation and overhead costs, marketing costs including qualified cost of credits issued through the Company’s referral program, costs associated with the Company’s customer service operation and costs of environmental offsets. Fulfillment Costs |
Income Taxes | Income Taxes The Company accounts for income taxes under the asset and liability method, whereby deferred tax assets and liabilities are determined based on the difference between the consolidated financial statement and income tax bases of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. The Company recognizes the benefits of tax-return positions in the consolidated financial statements when they are more likely than not to be sustained by the taxing authority, based on the technical merits at the reporting date. The Company considers many factors when evaluating and estimating its tax positions and tax benefits, which may require periodic adjustments, and which may not accurately forecast actual outcomes. The Company recognizes interest and penalties related to unrecognized tax benefits, if any, as income tax expense. |
Stock-Based Compensation | Stock-Based Compensation The Company’s stock-based compensation relates to stock options, restricted stock units (“RSU”) and stock purchase rights under an Employee Stock Purchase Plan (“ESPP”). The Company recognizes the cost of share-based awards granted to employees and non-employees based on the estimated grant-date fair value of the awards. For stock option awards with service-only vesting conditions, expense is recognized on a straight-line basis over the requisite service period, which is generally the vesting period of the award. The Company estimates the grant-date fair value of the stock option awards with service only vesting conditions using the Black-Scholes option-pricing model. The Black-Scholes option-pricing model utilizes inputs and assumptions which involve inherent uncertainties and generally require significant judgment. As a result, if factors or expected outcomes change and significantly different assumptions or estimates are used, the Company’s stock-based compensation could be materially different. Significant inputs and assumptions include: Fair value of Common Stock – As there has been no public market for the Company’s common stock prior to the Business Combination, the fair value of the shares of common stock underlying the stock-based awards on the grant-date has historically been determined by the Company’s Board of Directors with assistance of third-party valuation specialists. The Board of Directors exercises reasonable judgment and considers a number of objective and subjective factors to determine the best estimate of the fair market value, which include important developments in the Company’s operations, the prices at which the Company sold shares of its convertible preferred stock, the rights, preferences and privileges of the Company’s convertible preferred stock relative to those of the Company’s common stock, actual operating results, financial performance, external market conditions, equity market conditions of comparable public companies, and the lack of marketability of the Company’s common stock. Expected Term – The Company’s expected term represents the period that the Company’s stock-based awards are expected to be outstanding and is determined using the simplified method (based on the mid-point between the vesting date and the end of the contractual term). Expected Volatility – Because the Company was privately held prior to the Business Combination and did not have an active trading market for its common stock, the expected volatility was estimated based on the average volatility for publicly traded companies that the Company considers to be comparable, over a period equal to the expected term of the stock option grants. Risk-Free Interest Rate – The risk-free interest rate is based on the U.S. Treasury zero coupon issues in effect at the time of grant for periods corresponding with the expected term of option. Expected Dividend – The Company has never paid dividends on its common stock and has no plans to pay dividends on its common stock. Therefore, the Company used an expected dividend yield of zero. For RSU awards with performance vesting conditions, the Company evaluates the probability of achieving the performance vesting condition at each reporting date. The Company begins to recognize expense for RSUs with performance vesting conditions using an accelerated attribution method when it is deemed probable that the performance condition will be met. For RSUs with service-only vesting conditions, expense is recognized on a straight-line basis over the requisite service period, which is generally the vesting period of the award. The fair value of RSU awards is determined using the price of the Company’s common stock on the grant date, as determined by the Company’s board of directors. For awards with both market and service vesting conditions, expense is recognized over the derived service period using an accelerated attribution method starting from when it is deemed probable that the performance condition will be met. The fair value of stock option awards with both market and service conditions is estimated using multifactor Monte Carlo simulations. The Monte Carlo simulation model incorporates the probability of satisfying a market condition and utilizes inputs and assumptions which involve inherent uncertainties and generally require significant judgment, including the Company’s stock price, contractual terms, maturity and risk-free interest rates, as well as volatility. The fair value of each purchase under the ESPP is estimated at the beginning of the offering period using the Black-Scholes option pricing model and recorded as expense over the service period using the straight-line method. The Company accounts for forfeitures as they occur. |
Fair Value Measurement | The Company measures certain financial assets and liabilities at fair value on a recurring basis. The Company determines fair value based upon the exit price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants, as determined by either the principal market or the most advantageous market. Inputs used in the valuation techniques to derive fair values are classified based on a three-level hierarchy. These levels are: Level 1 – Inputs are unadjusted, quoted prices in active markets for identical assets or liabilities at the measurement date; Level 2 – Inputs are observable, unadjusted quoted prices in active markets for similar assets or liabilities, unadjusted quoted prices for identical or similar assets or liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the related assets or liabilities; and Level 3 – Unobservable inputs that are significant to the measurement of the fair value of the assets or liabilities that are supported by little or no market data. Financial instruments consist of cash equivalents, accounts payable, accrued liabilities, debt and convertible preferred stock warrant liability, Additional Shares, Earn-Out Shares and Public and Private Placement Warrants. Cash equivalents, convertible preferred stock warrant liability, Earn-Out Shares and Public and Private Placement Warrant are stated at fair value on a recurring basis. Accounts payable and accrued liabilities are stated at their carrying value, which approximates fair value due to the short period time to the expected receipt or payment. The carrying amount of the Company’s outstanding debt approximates the fair value as the debt bears interest at a rate that approximates prevailing market rate. The Public Warrants were historically classified as Level 1 due to the use of an observable market quote in an active market. Private Placement Warrants were historically classified as Level 2 as the fair value approximated the fair value of the Public Warrants. The Private Placement Warrants are identical to the Public Warrants, with certain exceptions as defined in Note 10, Common Stock and Warrants. Five Public Warrants or Private Placement Warrants must be bundled together to receive one share of the Company’s Class A common stock. During the year ended December 31, 2023, the entire balance of the Public Warrants and Private Placement Warrants was transferred out of Level 1 and Level 2, respectively, into Level 3 due to the warrants being delisted by the NYSE in response to the low trading price of the warrants. The value of the Public Warrants and Private Placement Warrants was determined by using a Black-Scholes Model with the following assumptions: Year Ended December 31, 2023 2022 Fair value of common stock $0.35 — Exercise Price $11.50 — Expected term (in years) 3.54 — Risk-free interest rate 3.93% — Volatility 71.77% — Dividend yield — — The Earn-Out Shares are classified as Level 3 and their fair values were estimated using a Monte Carlo options pricing model utilizing assumptions related to expected stock-price volatility, expected life, risk-free interest rate and dividend yield. The Company estimated the expected volatility assumption using an average of the implied volatility of its common stock and an implied volatility based on its peer companies. The Structural Derivative Liability is a compound embedded derivative related to features within the Structural Debt Facility, including an increase in interest rate upon an event of default and the contingent issuance of the Structural Subsequent Shares as defined in Note 6, Debt. This liability is classified as Level 3 and is valued using a risk-neutral income approach related to an event of default occurring and expected cash flows in such a scenario and an income and Black-Scholes pricing model for the contingent issuance of the Structural Subsequent Shares utilizing assumptions related to expected stock price volatility, expected life, risk-free interest rate and dividend yield. The Company estimated the expected volatility assumption using an weighted-average of the implied volatility of its publicly traded common stock and an implied volatility based on its peer companies. |
Contingencies | Contingencies From time to time, the Company is subject to various claims, charges and litigation matters that arise in the ordinary course of business. The Company records a provision for a liability when it is both probable that the loss has been incurred and the amount of the loss can be reasonably estimated. If the Company determines that a loss is reasonably possible and the loss or range of loss can be reasonably estimated, it discloses the possible loss or range of loss. Any potential gains associated with legal matters are not recorded until the period in which all contingencies are resolved and the gain is realized or realizable. Depending on the nature and timing of any such proceedings that may arise, an unfavorable resolution of a matter could materially affect the Company’s future consolidated results of operations, cash flows or financial position in a particular period. Except if otherwise indicated, it is not reasonably possible to determine the probability of loss or estimate damages for any of the matters discussed below, and therefore, the Company has not established reserves for any of these matters. |
Recently Issued Accounting Standards | Recently Issued Accounting Standards In October 2023, Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (“ASU”) 2023-06, Disclosure Improvements (“ASU2023-06”), to clarify or improve disclosure and presentation requirements of a variety of topics and align the requirements in the FASB accounting standard codification (“ASC”) with the SEC's regulations. The amendments in ASU 2023-06 will become effective on the date the related disclosures are removed from Regulation S-X or Regulation S-K by the SEC, and will no longer be effective if the SEC has not removed the applicable disclosure requirement by June 30, 2027. Early adoption is prohibited. The Company is currently evaluating the impact of ASU 2023-06 on its consolidated financial statements and disclosures. In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures (“ASU 2023-07”). ASU 2023-07 enhances public entities’ segment disclosures by requiring disclosure of significant segment expenses that are regularly provided to the chief operating decision maker and included within each reported measure of segment profit or loss, an amount and description of its composition for other segment items, and interim disclosures of a reportable segment’s profit or loss and assets. Disclosure requirements under ASU 2023-07 are required for all public entities, including those with a single reportable segment. ASU 2023-07 takes effect for fiscal years starting after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted. The Company does not expect to early adopt ASU 2023-07 and is currently evaluating its impact on its consolidated financial statements and disclosures. In December 2023, the FASB issued ASU 2023-09, Improvements to Income Tax Disclosures (“ASU 2023-09”), which will require incremental income tax disclosures on an annual basis for all public entities. The amendments require that public business entities disclose specific categories in the rate reconciliation and provide additional information for reconciling items meeting a quantitative threshold. The amendments also require disclosure of income taxes paid to be disaggregated by jurisdiction, and the disclosure of income tax expense disaggregated by federal, state, and foreign. ASU 2023-09 is effective for annual reporting beginning with the fiscal years starting after December 15, 2024. Early adoption is permitted. The Company does not expect to early adopt ASU 2023-09 and is currently evaluating the impact ASU 2023-09 will have on its consolidated financial statements and disclosures. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Reconciliation of Restrictions on Cash and Cash Equivalents | The following table provides a reconciliation of cash, cash equivalents and restricted cash reported on the consolidated balance sheets that sum to the total of the same amounts shown in the consolidated statements of cash flows (in thousands): Year Ended December 31, 2023 2022 Cash and cash equivalents $ 86,411 $ 81,084 Restricted cash 8,452 14,901 Total cash, cash equivalents and restricted cash $ 94,863 $ 95,985 |
Schedule of Cash and Cash Equivalents | The following table provides a reconciliation of cash, cash equivalents and restricted cash reported on the consolidated balance sheets that sum to the total of the same amounts shown in the consolidated statements of cash flows (in thousands): Year Ended December 31, 2023 2022 Cash and cash equivalents $ 86,411 $ 81,084 Restricted cash 8,452 14,901 Total cash, cash equivalents and restricted cash $ 94,863 $ 95,985 |
Schedule of Property Plant and Equipment Useful Life | The estimated useful lives of the Company’s assets are as follows: Computer equipment 3 - 5 years Furniture and fixtures 5 years Machinery and warehouse equipment 7 - 10 years Leasehold improvements Shorter of 10 years or lease term |
Disaggregation of Revenue | The following table sets forth revenue by product type (in thousands): Year Ended December 31, 2023 2022 2021 Revenue, net: Grove Brands $ 119,006 $ 154,854 $ 187,055 Third-party products 140,272 166,673 196,630 Total revenue, net $ 259,278 $ 321,527 $ 383,685 |
Fair Value Measurements and F_2
Fair Value Measurements and Fair Value of Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value Measurement Inputs and Valuation Techniques | The value of the Public Warrants and Private Placement Warrants was determined by using a Black-Scholes Model with the following assumptions: Year Ended December 31, 2023 2022 Fair value of common stock $0.35 — Exercise Price $11.50 — Expected term (in years) 3.54 — Risk-free interest rate 3.93% — Volatility 71.77% — Dividend yield — — Fair value of common stock $2.16 Exercise Price $0.01 — $6.33 Expected term in years 3.0 Risk free rate 4.56% Volatility 67.24% Dividend yield —% |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | The following table sets forth the Company’s financial instruments that were measured at fair value on a recurring basis as of December 31, 2023 and December 31, 2022 by level within the fair value hierarchy (in thousands): December 31, 2023 Level 1 Level 2 Level 3 Total Financial Assets: Cash equivalents: Money market funds $ 83,431 $ — $ — $ 83,431 Total $ 83,431 $ — $ — $ 83,431 Financial Liabilities: Earn-Out Shares $ — $ — $ 2,973 $ 2,973 Private Placement Warrants — — 37 37 Public Warrants — — 31 31 Structural Derivative Liability — — 8,470 8,470 Total $ — $ — $ 11,511 $ 11,511 December 31, 2022 Level 1 Level 2 Level 3 Total Financial Assets: Cash equivalents: Money market funds $ 74,990 $ — $ — $ 74,990 Total $ 74,990 $ — $ — $ 74,990 Financial Liabilities: Additional Shares $ — $ — $ 580 $ 580 Earn-Out Shares — — 4,122 4,122 Private Placement Warrants — 670 — 670 Public Warrants 805 — — 805 Structural Derivative Liability — — 7,050 7,050 Total $ 805 $ 670 $ 11,752 $ 13,227 |
Schedule of Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation | The following table provides a summary of changes in the estimated fair value of these liabilities (in thousands): Additional Shares Liability Earn-Out Shares Public Warrants Private Placement Warrants Structural Derivative Liability Total Balances at December 31, 2022 $ 580 $ 4,122 $ 805 $ 670 $ 7,050 $ 13,227 Cancellation — (347) — — (347) Changes in fair value 920 (802) (768) (639) 1,420 131 Settlement (1,500) — — — — (1,500) Balances at December 31, 2023 $ — $ 2,973 $ 37 $ 31 $ 8,470 $ 11,511 |
Other Balance Sheet Informati_2
Other Balance Sheet Information (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Property, Plant and Equipment | Property and equipment, net consisted of the following (in thousands): December 31, 2023 2022 Machinery and warehouse equipment $ 6,753 $ 6,799 Internally developed software 15,772 15,199 Computer equipment 2,531 2,805 Leasehold improvements 2,134 2,018 Furniture and fixtures 1,049 1,028 Total property and equipment 28,239 27,849 Less: accumulated depreciation (16,614) (13,319) Property and equipment, net $ 11,625 $ 14,530 |
Schedule of Accrued Liabilities | Accrued expenses consisted of the following (in thousands): December 31, 2023 2022 Inventory purchases $ 3,512 $ 2,757 Compensation and benefits 5,071 1,714 Advertising costs 457 1,203 Fulfillment costs 789 1,725 Sales taxes 1,106 1,374 Transaction costs — 17,500 Other accrued expenses 5,085 5,081 Total accrued expenses $ 16,020 $ 31,354 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | The Company’s outstanding debt, net of debt discounts, consisted of the following (in thousands): December 31, 2023 2022 Structural Debt Facility 64,162 60,620 Siena Revolver 7,500 — Atel Loan Facility Draw 3 — 480 Atel Loan Facility Draw 4 — 95 Total debt 71,662 61,195 Less: debt, current — (575) Total debt, noncurrent $ 71,662 $ 60,620 |
Schedule of Maturities of Long-Term Debt | A schedule of the Company’s future debt maturities is as follows (in thousands): Year ended December 31, 2024 — 2025 22,737 2026 56,763 Total principal debt payments 79,500 Less: debt discounts (7,838) Total Debt 71,662 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Leases [Abstract] | |
Summary of Maturities of Operating Lease Liabilities | Maturities of operating lease liabilities were as follows (in thousands): Year Ended December 31, Operating Lease 2024 $ 5,968 2025 6,043 2026 6,219 2027 4,241 2028 1,404 Thereafter — Total undiscounted lease payments 23,875 Less: Imputed interest (5,982) Present value of lease liabilities 17,893 Less: Operating lease liabilities, current (3,489) Operating lease liabilities, noncurrent $ 14,404 |
Redeemable Convertible Prefer_2
Redeemable Convertible Preferred Stock (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Temporary Equity Disclosure [Abstract] | |
Schedule of Fair Value Measurement Inputs and Valuation Techniques | The value of the Public Warrants and Private Placement Warrants was determined by using a Black-Scholes Model with the following assumptions: Year Ended December 31, 2023 2022 Fair value of common stock $0.35 — Exercise Price $11.50 — Expected term (in years) 3.54 — Risk-free interest rate 3.93% — Volatility 71.77% — Dividend yield — — Fair value of common stock $2.16 Exercise Price $0.01 — $6.33 Expected term in years 3.0 Risk free rate 4.56% Volatility 67.24% Dividend yield —% |
Schedule of Gross Proceeds and Transaction Costs between Preferred Stock and Warrants | Gross proceeds and transaction costs were allocated between the Preferred Stock and Volition Warrants as follows: Gross Proceeds Transaction Costs Net Proceeds Preferred Stock $ 9,336 $ (292) $ 9,044 Volition Warrants 664 (21) 643 Total $ 10,000 $ (313) $ 9,687 |
Common Stock and Warrants (Tabl
Common Stock and Warrants (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Earnings Per Share [Abstract] | |
Schedule of Stockholders' Equity Note, Warrants or Rights | As of December 31, 2023, the following Warrants were outstanding on an as converted basis: Warrant Type Shares Exercise Price Public Warrants 1,460,146 $ 57.50 Private Placement Warrants 1,340,000 $ 57.50 |
Schedule of Share-Based Payment Award, Stock Options, Valuation Assumptions | The fair value of Vested Warrants and Unvested Warrants granted to HGI was estimated at the date of grant using the Black-Scholes option-pricing model, with the following assumptions: Fair value of common stock $6.30 Expected term in years 4.5 Volatility 62.50% Risk-free interest rate 4.00% Dividend yield — |
Schedule of Reserved for Issuance | The Company has the following shares of common stock reserved for future issuance, on an as-if converted basis: December 31, 2023 December 31, 2022 Class A Common Stock Class B Common Stock Class A Common Stock Class B Common Stock Private Placement Warrants 1,340,000 — 1,340,000 — Public Warrants 1,460,146 — 1,610,000 — Backstop Warrants 775,005 — 775,005 — Volition Penny Warrants 20,905 — — — Shares issuable upon conversion of redeemable convertible preferred stock 4,739,336 — — — Other Outstanding common stock warrants 2,484,778 113,776 905,000 113,776 Outstanding stock options 1,084,456 809,847 1,264,302 839,705 Outstanding restricted stock units 4,703,850 9,005 3,864,448 32,149 Shares available for issuance under 2022 Equity Incentive Plan 4,642,495 — 4,158,872 — Shares available for issuance under ESPP 746,212 — 654,814 — Total shares of common stock reserved 21,997,183 932,628 14,572,441 985,630 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Share-Based Payment Arrangement, Option, Activity | Stock option activity under the 2016 Plan is as follows (in thousands, except share and per share amounts): Options Outstanding Number of Options Weighted–Average Exercise Price Weighted-Average Remaining Contractual Life (years) Aggregate Intrinsic Value Balance – December 31, 2022 2,104,007 $ 7.95 4.87 $ 61 Exercised (37,334) 1.90 Cancelled/forfeited (172,370) 10.73 Balance – December 31, 2023 1,894,303 7.82 4.23 32 Options vested and exercisable – December 31, 2023 1,681,368 $ 6.43 3.86 $ 32 |
Schedule of Restricted Stock Units Activity | The following table summarizes the activity for all RSUs under all of the Company’s equity incentive plans for the year ended December 31, 2023: Number of shares Weighted–Average Grant Date Fair Value Per Share Unvested – December 31, 2022 3,896,597 $ 8.78 Granted 4,073,223 2.21 Vested (2,484,612) 7.15 Cancelled/forfeited (772,353) 7.56 Balance – December 31, 2023 4,712,855 4.16 |
Schedule of Share-Based Payment Award, Employee Stock Purchase Plan, Valuation Assumptions | The following assumptions were used in estimating the fair values of shares under the ESPP for the period indicated: Year Ended December 31, 2023 Fair value of common stock $2.37 - $6.20 Expected term (in years) 0.50 - 1.00 Volatility 66.00% - 73.00% Risk-free interest rate 4.54% - 5.24% Dividend yield — |
Provision for Income Taxes (Tab
Provision for Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Schedule of Effective Income Tax Rate Reconciliation | The Company’s effective income tax rate reconciliation is composed of the following for the periods presented: Year Ended December 31, 2023 2022 2021 Federal statutory rate 21.0 % 21.0 % 21.0 % Stock-based compensation (9.2) % (7.3) % (0.6) % Remeasurement of derivative liabilities 0.1 % 17.5 % (0.2) % Other — % 0.4 % — % Change in valuation allowance (12.0) % (31.6) % (20.2) % Provision for income taxes (0.1) % — % — % |
Schedule of Deferred Tax Assets and Liabilities | The components of net deferred tax assets are as follows (in thousands): December 31, 2023 2022 Deferred tax assets: Net operating loss carryforwards $ 125,850 $ 119,345 Deferred revenue 1,745 2,581 Inventory reserve and uniform capitalization 2,509 3,365 Operating lease liabilities 4,364 4,720 Accruals and other reserves 1,332 1,876 Stock-based compensation 5,570 6,856 Business Interest Carryforwards 7,660 4,840 Other 268 268 Total deferred tax assets 149,298 143,851 Less: valuation allowance (145,711) (139,033) Total deferred tax assets, net of valuation allowance 3,587 4,818 Deferred tax liabilities: Operating lease right-of-use assets (2,344) (2,933) Depreciation and amortization (1,243) (1,885) Total deferred tax liabilities (3,587) (4,818) Net deferred tax assets $ — $ — |
Summary of Valuation Allowance | The following summarizes the activity related to valuation allowances on deferred tax assets: December 31, 2023 2022 Valuation allowance, as of beginning of year $ 139,033 $ 107,301 Valuation allowance established 5,947 31,270 Changes to existing valuation allowances 731 462 Valuation allowance, as of end of year $ 145,711 $ 139,033 |
Net Loss Per Share Attributab_2
Net Loss Per Share Attributable to Common Stockholders (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The following table presents the calculation of basic and diluted income (loss) per share attributable to common stockholders (in thousands, except share and per share data): Year Ended December 31, 2023 2022 2021 Net loss, basic and diluted $ (43,232) $ (87,715) $ (135,896) Less: Accretion on Series A redeemable convertible preferred stock (957) — — Less: Series A accumulated dividends (233) — — Net loss attributable to common stockholders, basic and diluted $ (44,422) $ (87,715) $ (135,896) Net loss per share attributable to common stockholders, basic and diluted $ (1.28) $ (4.85) $ (79.28) Weighted-average shares used in computing net loss per share attributable to common stockholders, basic and diluted 34,797,582 18,101,407 1,714,230 |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | The following potentially dilutive shares were excluded from the computation of diluted net loss per share attributable to common stockholders for the periods presented, because including them would have been anti-dilutive (on an as-converted basis): Year Ended December 31, 2023 2022 2021 Convertible preferred stock 4,739,336 — 23,057,403 Common stock options 1,894,303 2,104,007 5,576,504 Restricted stock units 4,712,855 3,896,597 355,436 Preferred stock warrants — — 147,152 Common stock warrants 2,598,554 1,018,776 137,669 Private and Public Placement Warrants 2,800,146 2,950,000 — Earn-Out Shares 2,602,554 2,799,696 — Shares subject to repurchase — — 16,350 ESPP Shares 67,178 — — Total 19,414,926 12,769,076 29,290,514 |
Description of Business (Detail
Description of Business (Details) | 12 Months Ended | |
May 24, 2023 | Dec. 31, 2023 channel | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Domestic sales channels (in channels) | 2 | |
Reverse split, conversion ratio | 0.2 | |
Customer complementary membership period | 60 days |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Jun. 16, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Class of Stock [Line Items] | ||||
Accumulated deficit | $ 621,090 | $ 577,858 | ||
Cash and cash equivalents | 86,411 | 81,084 | ||
Reverse recapitalization, proceeds received, net of transaction costs | $ 24,400 | 86,000 | ||
Restricted cash, current | 5,650 | 11,950 | ||
Restricted cash, noncurrent | 2,802 | 2,951 | ||
Contract with customer, refund liability, current | 100 | 100 | ||
Deferred revenue | 7,154 | 10,878 | ||
Fulfillment cost | $ 58,800 | 82,200 | $ 95,500 | |
Software and Software Development Costs | ||||
Class of Stock [Line Items] | ||||
Property, plant and equipment, useful life (in years) | 4 years | |||
Shipping and Handling | ||||
Class of Stock [Line Items] | ||||
Fulfillment cost | $ 35,600 | 50,200 | 56,100 | |
Fulfillment Labor | ||||
Class of Stock [Line Items] | ||||
Fulfillment cost | 13,500 | 19,700 | $ 24,500 | |
Deferred Revenue | ||||
Class of Stock [Line Items] | ||||
Deferred revenue | 7,200 | 10,900 | ||
Other Current Liabilities | ||||
Class of Stock [Line Items] | ||||
Deferred revenue | $ 100 | $ 200 | ||
Five Suppliers | Revenue Benchmark | Supplier Concentration Risk | ||||
Class of Stock [Line Items] | ||||
Concentration risk, percentage | 40% | 50% | 50% |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Reconciliation of Cash, Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Accounting Policies [Abstract] | ||||
Cash and cash equivalents | $ 86,411 | $ 81,084 | ||
Restricted cash | 8,452 | 14,901 | ||
Total cash, cash equivalents and restricted cash | $ 94,863 | $ 95,985 | $ 78,376 | $ 176,523 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Schedule of Property Plant and Equipment Useful Life (Details) | Dec. 31, 2023 |
Furniture and fixtures | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life (in years) | 5 years |
Leasehold improvements | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life (in years) | 10 years |
Minimum | Computer equipment | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life (in years) | 3 years |
Minimum | Machinery and warehouse equipment | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life (in years) | 7 years |
Maximum | Computer equipment | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life (in years) | 5 years |
Maximum | Machinery and warehouse equipment | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life (in years) | 10 years |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Disaggregation of Revenue [Line Items] | |||
Total revenue, net | $ 259,278 | $ 321,527 | $ 383,685 |
Grove Brands | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue, net | 119,006 | 154,854 | 187,055 |
Third-party products | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue, net | $ 140,272 | $ 166,673 | $ 196,630 |
Recapitalization - Narrative (D
Recapitalization - Narrative (Details) | 1 Months Ended | 12 Months Ended | ||||||
Aug. 13, 2022 $ / shares | Jun. 16, 2022 USD ($) $ / shares | Mar. 31, 2022 USD ($) $ / shares shares | Dec. 07, 2021 USD ($) shares | Aug. 31, 2022 shares | Dec. 31, 2023 USD ($) $ / shares | Dec. 31, 2022 USD ($) $ / shares | Dec. 31, 2021 USD ($) | |
Schedule of Reverse Recapitalization [Line Items] | ||||||||
Reverse recapitalization, percentage of voting interests acquired | 100% | |||||||
Proceeds from issuance of common stock upon Closing of Business Combination | $ 97,100,000 | $ 0 | $ 97,100,000 | $ 0 | ||||
Reverse recapitalization, proceeds received, net of transaction costs | $ 24,400,000 | $ 86,000,000 | ||||||
Common stock, par value (in dollars per share) | $ / shares | $ 0.0001 | |||||||
Public Warrants | ||||||||
Schedule of Reverse Recapitalization [Line Items] | ||||||||
As-converted, exercise ratio of warrants | 5 | 5 | ||||||
Private Placement Warrants | ||||||||
Schedule of Reverse Recapitalization [Line Items] | ||||||||
As-converted, exercise ratio of warrants | 5 | |||||||
Tranche One Shares | Corvina Holdings Limited | ||||||||
Schedule of Reverse Recapitalization [Line Items] | ||||||||
Sale of stock, number of shares issued in transaction (in shares) | shares | 467,670 | |||||||
Sale of stock, consideration received on transaction | $ 27,500,000 | |||||||
Class B Common Stock | ||||||||
Schedule of Reverse Recapitalization [Line Items] | ||||||||
Common stock, par value (in dollars per share) | $ / shares | $ 0.0001 | $ 0.0001 | $ 0.0001 | |||||
Class A Common Stock | ||||||||
Schedule of Reverse Recapitalization [Line Items] | ||||||||
Common stock, par value (in dollars per share) | $ / shares | $ 0.0001 | $ 0.0001 | ||||||
Class A Common Stock | Tranche One Shares | Corvina Holdings Limited | ||||||||
Schedule of Reverse Recapitalization [Line Items] | ||||||||
Sale of stock, number of shares issued in transaction (in shares) | shares | 550,000 | |||||||
Class A Common Stock | Tranche Two Shares | Corvina Holdings Limited | ||||||||
Schedule of Reverse Recapitalization [Line Items] | ||||||||
Sale of stock (in dollars per share) | $ / shares | $ 50 | $ 50 | ||||||
Sale of stock, number of shares issued in transaction (in shares) | shares | 334,304 | 655,036 | ||||||
Sale of stock, consideration received on transaction | $ 16,715,240 | |||||||
Reverse recapitalization, aggregate gross proceeds amount | $ 22,500,000 | |||||||
Number of trading days after the closing of business combination | 10 days | |||||||
Class A Common Stock | Private Placement | ||||||||
Schedule of Reverse Recapitalization [Line Items] | ||||||||
Sale of stock, number of shares available in transaction (in shares) | shares | 1,741,500 | |||||||
Sale of stock, consideration available on transaction | $ 87,075,000 | |||||||
Sale of stock, number of shares issued in transaction (in shares) | shares | 1,721,500 | |||||||
Sale of stock, consideration received on transaction | $ 86,075,000 | |||||||
2022 Equity Incentive Plan | Class B Common Stock | ||||||||
Schedule of Reverse Recapitalization [Line Items] | ||||||||
Recapitalization exchange ratio | 1.1760 |
Fair Value Measurements and F_3
Fair Value Measurements and Fair Value of Financial Instruments - Narrative (Details) | 12 Months Ended | |
Jun. 16, 2022 | Dec. 31, 2023 | |
Private Placement Warrants | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
As-converted, exercise ratio of warrants | 5 | |
Public Warrants | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
As-converted, exercise ratio of warrants | 5 | 5 |
Fair Value Measurements and F_4
Fair Value Measurements and Fair Value of Financial Instruments - Schedule of Fair Value Measurement Inputs and Valuation Techniques (Details) - Private Placements And Public Warrants - Level 3 | Dec. 31, 2023 | Dec. 31, 2022 |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Warrants and rights outstanding, term | 3 years 6 months 14 days | 0 years |
Fair value of common stock | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Warrants , measurement input | 0.35 | 0 |
Exercise Price | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Warrants , measurement input | 11.50 | 0 |
Risk-free interest rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Warrants , measurement input | 0.0393 | 0 |
Volatility | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Warrants , measurement input | 0.7177 | 0 |
Dividend yield | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Warrants , measurement input | 0 | 0 |
Fair Value Measurements and F_5
Fair Value Measurements and Fair Value of Financial Instruments - Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis (Details) - Fair Value, Recurring - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents: | $ 83,431 | $ 74,990 |
Financial Liabilities: | 11,511 | 13,227 |
Structural Derivative Liability | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial Liabilities: | 8,470 | 7,050 |
Additional Shares | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial Liabilities: | 580 | |
Earn-Out Shares | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial Liabilities: | 2,973 | 4,122 |
Private Placement Warrants | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial Liabilities: | 37 | 670 |
Public Warrants | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial Liabilities: | 31 | 805 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents: | 83,431 | 74,990 |
Financial Liabilities: | 0 | 805 |
Level 1 | Structural Derivative Liability | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial Liabilities: | 0 | 0 |
Level 1 | Additional Shares | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial Liabilities: | 0 | |
Level 1 | Earn-Out Shares | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial Liabilities: | 0 | 0 |
Level 1 | Private Placement Warrants | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial Liabilities: | 0 | 0 |
Level 1 | Public Warrants | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial Liabilities: | 0 | 805 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents: | 0 | 0 |
Financial Liabilities: | 0 | 670 |
Level 2 | Structural Derivative Liability | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial Liabilities: | 0 | 0 |
Level 2 | Additional Shares | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial Liabilities: | 0 | |
Level 2 | Earn-Out Shares | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial Liabilities: | 0 | 0 |
Level 2 | Private Placement Warrants | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial Liabilities: | 0 | 670 |
Level 2 | Public Warrants | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial Liabilities: | 0 | 0 |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents: | 0 | 0 |
Financial Liabilities: | 11,511 | 11,752 |
Level 3 | Structural Derivative Liability | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial Liabilities: | 8,470 | 7,050 |
Level 3 | Additional Shares | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial Liabilities: | 580 | |
Level 3 | Earn-Out Shares | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial Liabilities: | 2,973 | 4,122 |
Level 3 | Private Placement Warrants | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial Liabilities: | 37 | 0 |
Level 3 | Public Warrants | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial Liabilities: | 31 | 0 |
Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents: | 83,431 | 74,990 |
Money market funds | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents: | 83,431 | 74,990 |
Money market funds | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents: | 0 | 0 |
Money market funds | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents: | $ 0 | $ 0 |
Fair Value Measurements and F_6
Fair Value Measurements and Fair Value of Financial Instruments - Schedule of Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2023 USD ($) | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |
Fair Value, Liability, Recurring Basis, Unobservable Input Reconciliation, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Gain (Loss) on Derivative Instruments, Net, Pretax |
Level 3 | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |
Balances at December 31, 2022 | $ 13,227 |
Cancellation | (347) |
Changes in fair value | 131 |
Settlement | (1,500) |
Balances at December 31, 2023 | 11,511 |
Level 3 | Earn-Out Shares | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |
Balances at December 31, 2022 | 4,122 |
Cancellation | (347) |
Changes in fair value | (802) |
Settlement | 0 |
Balances at December 31, 2023 | 2,973 |
Level 3 | Structural Derivative Liability | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |
Balances at December 31, 2022 | 7,050 |
Cancellation | 0 |
Changes in fair value | 1,420 |
Settlement | 0 |
Balances at December 31, 2023 | 8,470 |
Additional Shares | Level 3 | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |
Balances at December 31, 2022 | 580 |
Cancellation | 0 |
Changes in fair value | 920 |
Settlement | (1,500) |
Balances at December 31, 2023 | 0 |
Public Warrants | Level 3 | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |
Balances at December 31, 2022 | 805 |
Cancellation | |
Changes in fair value | (768) |
Settlement | 0 |
Balances at December 31, 2023 | 37 |
Private Placement Warrants | Level 3 | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |
Balances at December 31, 2022 | 670 |
Cancellation | 0 |
Changes in fair value | (639) |
Settlement | 0 |
Balances at December 31, 2023 | $ 31 |
Other Balance Sheet Informati_3
Other Balance Sheet Information - Schedule of Property, Plant and Equipment (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | $ 28,239 | $ 27,849 |
Less: accumulated depreciation | (16,614) | (13,319) |
Property and equipment, net | 11,625 | 14,530 |
Machinery and warehouse equipment | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 6,753 | 6,799 |
Internally developed software | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 15,772 | 15,199 |
Computer equipment | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 2,531 | 2,805 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 2,134 | 2,018 |
Furniture and fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | $ 1,049 | $ 1,028 |
Other Balance Sheet Informati_4
Other Balance Sheet Information - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Depreciation | $ 1.7 | $ 2 | $ 2.2 |
Capitalized computer software, gross | 3 | 4.3 | |
Capitalized computer software, amortization | $ 4.1 | $ 3.6 | $ 2.5 |
Other Balance Sheet Informati_5
Other Balance Sheet Information - Schedule of Accrued Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Inventory purchases | $ 3,512 | $ 2,757 |
Compensation and benefits | 5,071 | 1,714 |
Advertising costs | 457 | 1,203 |
Fulfillment costs | 789 | 1,725 |
Sales taxes | 1,106 | 1,374 |
Transaction costs | 0 | 17,500 |
Other accrued expenses | 5,085 | 5,081 |
Accrued expenses | $ 16,020 | $ 31,354 |
Debt - Schedule of Debt (Detail
Debt - Schedule of Debt (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Debt Instrument [Line Items] | ||
Total debt | $ 71,662 | $ 61,195 |
Debt, current | 0 | (575) |
Debt, noncurrent | 71,662 | 60,620 |
Structural Lenders | Structural Debt Facility | ||
Debt Instrument [Line Items] | ||
Other long-term debt | 64,162 | 60,620 |
Siena Lending Group, LLC | Siena Revolver | ||
Debt Instrument [Line Items] | ||
Other long-term debt | 7,500 | 0 |
Atel | Atel Loan Facility Draw 3 | ||
Debt Instrument [Line Items] | ||
Other long-term debt | 0 | 480 |
Atel | Atel Loan Facility Draw 4 | ||
Debt Instrument [Line Items] | ||
Other long-term debt | $ 0 | $ 95 |
Debt - Narrative (Details)
Debt - Narrative (Details) - USD ($) | 1 Months Ended | 12 Months Ended | |||||
Dec. 21, 2022 | Mar. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Jul. 21, 2025 | |
Debt Instrument [Line Items] | |||||||
Loss on extinguishment of debt | $ 0 | $ 4,663,000 | $ 1,027,000 | ||||
Payment of debt issuance costs | 925,000 | 2,463,000 | $ 375,000 | ||||
Total principal debt payments | $ 79,500,000 | ||||||
Revolving Credit Facility | Line of Credit | Loan And Security Agreement | |||||||
Debt Instrument [Line Items] | |||||||
Line of credit facility, maximum borrowing capacity | $ 35,000,000 | ||||||
Long-term debt, percentage bearing variable interest, percentage rate | 9.18% | ||||||
Long-term line of credit | $ 7,500,000 | ||||||
Debt issuance costs, gross | $ 1,100,000 | ||||||
Line of credit facility, additional borrowing capacity | 8,100,000 | ||||||
Revolving Credit Facility | Line of Credit | Federal Funds Rate | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument, basis spread on variable rate | 0.50% | ||||||
Revolving Credit Facility | Line of Credit | Base Rate | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument, basis spread on variable rate | 5% | ||||||
Revolving Credit Facility | Line of Credit | Base Rate | Minimum | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument, basis spread on variable rate | 2.75% | ||||||
Revolving Credit Facility | Line of Credit | Base Rate | Maximum | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument, basis spread on variable rate | 4.50% | ||||||
Revolving Credit Facility | Line of Credit | Secured Overnight Financing Rate (SOFR) | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument, basis spread on variable rate | 0.10% | ||||||
Revolving Credit Facility | Line of Credit | Secured Overnight Financing Rate (SOFR) | Minimum | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument, basis spread on variable rate | 3.75% | ||||||
Revolving Credit Facility | Line of Credit | Secured Overnight Financing Rate (SOFR) | Maximum | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument, basis spread on variable rate | 5.50% | ||||||
Structural Lenders | Structural Debt Facility | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument, face amount | $ 72,000,000 | 72,000,000 | |||||
Other long-term debt | 60,620,000 | $ 64,162,000 | 60,620,000 | ||||
Debt instrument, interest rate, effective percentage | 21.37% | ||||||
Debt instrument, covenant, minimum unrestricted cash required to maintain | $ 57,000,000 | $ 57,000,000 | |||||
Debt instrument, unamortized discount (premium), net | $ 1,100,000 | ||||||
Payment of debt issuance costs | 3,300,000 | ||||||
Total principal debt payments | $ 72,000,000 | ||||||
Structural Lenders | Structural Debt Facility | Structural Derivative Liability | Level 3 | |||||||
Debt Instrument [Line Items] | |||||||
Fair Value, measurement with unobservable inputs reconciliation, recurring basis, liability, purchases | $ 7,100,000 | ||||||
Structural Lenders | Structural Debt Facility | Forecast | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument, anniversary of closing date | 30 months | ||||||
Trading days prior to such date | 60 days | ||||||
Structural Lenders | Structural Debt Facility | Class A Common Stock | |||||||
Debt Instrument [Line Items] | |||||||
Issuance of shares (in shares) | 990,000 | ||||||
Structural Lenders | Structural Debt Facility | Class A Common Stock | Forecast | |||||||
Debt Instrument [Line Items] | |||||||
Contingently issuable shares, calculation, numerator | $ 9,900,000 | ||||||
Contingently issuable shares, calculation, maximum denominator | $ 10 | ||||||
Structural Lenders | Structural Debt Facility | Minimum | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument, interest rate, effective percentage | 15% | 15% | |||||
Structural Lenders | Structural Debt Facility | Prime Rate | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument, basis spread on variable rate | 7.50% |
Debt - Schedule of Maturities o
Debt - Schedule of Maturities of Long-Term Debt (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Debt Disclosure [Abstract] | ||
2024 | $ 0 | |
2025 | 22,737 | |
2026 | 56,763 | |
Total principal debt payments | 79,500 | |
Less: debt discounts | (7,838) | |
Total debt | $ 71,662 | $ 61,195 |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Long-Term Purchase Commitment [Line Items] | ||
Purchase obligation | $ 14.1 | $ 18.7 |
Standby Letters of Credit | ||
Long-Term Purchase Commitment [Line Items] | ||
Line of credit facility, maximum borrowing capacity | $ 3.4 |
Leases - Narrative (Details)
Leases - Narrative (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||
Feb. 28, 2019 | Dec. 31, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Lessee, Lease, Description [Line Items] | |||||
Lessee, operating lease, term of contract | 8 years | ||||
Lessee, operating lease, renewal term | 5 years | ||||
Lessee, operating lease, increase in discount rate | 3% | ||||
Operating lease, cost | $ 6.3 | $ 7.6 | $ 7.4 | ||
Variable lease, cost | 1.2 | 0.8 | 0.6 | ||
Operating lease, payments | 6.6 | 6.9 | 6.8 | ||
Right-of-use asset obtained in exchange for operating lease liability | $ 2.4 | $ 0 | $ 0 | ||
Operating lease, weighted average remaining lease term | 3 years 9 months 18 days | 3 years 9 months 18 days | 4 years 6 months | ||
Operating lease, weighted average discount rate, percent | 15.50% | 15.50% | 15.50% | ||
Asset impairment charges | $ 2.3 | $ 5.3 | |||
Minimum | |||||
Lessee, Lease, Description [Line Items] | |||||
Lessee, operating lease, remaining lease term | 1 year | 1 year | |||
Maximum | |||||
Lessee, Lease, Description [Line Items] | |||||
Lessee, operating lease, remaining lease term | 5 years | 5 years |
Leases - Summary of Maturities
Leases - Summary of Maturities of Operating Lease Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Leases [Abstract] | ||
2024 | $ 5,968 | |
2025 | 6,043 | |
2026 | 6,219 | |
2027 | 4,241 | |
2028 | 1,404 | |
Thereafter | 0 | |
Total undiscounted lease payments | 23,875 | |
Less: Imputed interest | (5,982) | |
Present value of lease liabilities | 17,893 | |
Operating lease liabilities, current | (3,489) | $ (3,705) |
Operating lease liabilities, noncurrent | $ 14,404 | $ 16,192 |
Redeemable Convertible Prefer_3
Redeemable Convertible Preferred Stock - Narrative (Details) $ / shares in Units, $ in Millions | 12 Months Ended | |
Aug. 11, 2023 USD ($) director $ / shares shares | Dec. 31, 2023 USD ($) shares | |
Temporary Equity [Line Items] | ||
Proceeds from issuance of preferred stock | $ | $ 10 | |
Issuance of Series A redeemable convertible preferred stock, net of issuance costs (in shares) | shares | 10,000 | 10,000 |
Dividend rate | 6% | |
Cumulative undeclared dividends | $ | $ 0.2 | |
Minimum percentage threshold, director designation rights | 20% | |
Director designation rights, number of directors | director | 1 | |
Convertible, conversion price (in dollars per share) | $ / shares | $ 2.11 | |
Convertible, control of rights by issuer, written notice period | 5 days | |
Volition Warrants | ||
Temporary Equity [Line Items] | ||
Warrant, exercisable, period after closing date | 6 months | |
Warrants and rights outstanding, term | 3 years | |
Fair value of warrants | $ | $ 0.7 | |
Volition Warrant | ||
Temporary Equity [Line Items] | ||
Class of warrant or right, number of securities called by warrants or rights (in shares) | shares | 1,579,778 | |
Exercise price (in dollars per share) | $ / shares | $ 6.33 | |
Volition Penny Warrants | ||
Temporary Equity [Line Items] | ||
Class of warrant or right, number of securities called by warrants or rights (in shares) | shares | 20,905 | |
Exercise price (in dollars per share) | $ / shares | $ 0.01 |
Redeemable Convertible Prefer_4
Redeemable Convertible Preferred Stock - Fair Value Measurement Inputs and Valuation Techniques (Details) - Volition Warrants | Aug. 11, 2023 |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Warrants and rights outstanding, term | 3 years |
Level 3 | Fair value of common stock | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Warrants , measurement input | 2.16 |
Level 3 | Exercise Price | Minimum | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Warrants , measurement input | 0.01 |
Level 3 | Exercise Price | Maximum | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Warrants , measurement input | 6.33 |
Level 3 | Expected term in years | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Warrants , measurement input | 3 |
Level 3 | Risk-free interest rate | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Warrants , measurement input | 0.0456 |
Level 3 | Volatility | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Warrants , measurement input | 0.6724 |
Level 3 | Dividend yield | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Warrants , measurement input | 0 |
Redeemable Convertible Prefer_5
Redeemable Convertible Preferred Stock - Schedule of Gross Proceeds and Transaction Costs between Preferred Stock and Warrants (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Aug. 11, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Class of Warrant or Right [Line Items] | ||||
Gross Proceeds | $ 10,000 | $ 10,000 | $ 27,500 | $ 0 |
Transaction Costs | (313) | |||
Transaction Costs | 9,687 | |||
Preferred Stock | ||||
Class of Warrant or Right [Line Items] | ||||
Gross Proceeds | 9,336 | |||
Transaction Costs | (292) | |||
Transaction Costs | 9,044 | |||
Volition Warrants | ||||
Class of Warrant or Right [Line Items] | ||||
Gross Proceeds | 664 | |||
Transaction Costs | (21) | |||
Transaction Costs | $ 643 |
Common Stock and Warrants - Nar
Common Stock and Warrants - Narrative (Details) $ / shares in Units, $ in Thousands | 12 Months Ended | |||||||
Aug. 01, 2023 shares | Nov. 10, 2022 USD ($) $ / shares shares | Jul. 18, 2022 USD ($) $ / shares shares | Jun. 16, 2022 vote $ / shares shares | Dec. 31, 2023 USD ($) $ / shares shares | Dec. 31, 2022 USD ($) $ / shares shares | Dec. 31, 2021 USD ($) | Jun. 16, 2023 shares | |
Class of Warrant or Right [Line Items] | ||||||||
Common stock, par value (in dollars per share) | $ / shares | $ 0.0001 | |||||||
Common stock, exchange ratio | 1 | |||||||
Common stock, shares authorized (in shares) | 900,000,000 | |||||||
Temporary equity, shares authorized (in shares) | 100,000,000 | 100,000,000 | 100,000,000 | |||||
Shares converted (in shares) | 1 | |||||||
Cancellation of earn-out shares (in shares) | 197,284 | |||||||
Reverse recapitalization, contingent consideration, liability, earnout period | 10 years | |||||||
Consulting fee expense | $ | $ 150 | |||||||
Stock-based compensation expense | $ | $ 15,500 | $ 43,600 | $ 14,600 | |||||
Standby Equity Purchase Agreement | ||||||||
Class of Warrant or Right [Line Items] | ||||||||
Purchase agreement, equity interests issuable, not yet issued | $ | $ 100,000 | |||||||
Purchase agreement, equity interests issuable, not yet issued, transaction period | 36 months | |||||||
Sale of stock, exchange cap, maximum number of shares authorized to sell (in shares) | 6,511,532 | |||||||
Sale of stock, exchange cap, percentage of shares outstanding | 19.99% | |||||||
Sale of stock, ability to sell full commitment, share price threshold (in dollars per share) | $ / shares | $ 15.33 | |||||||
Purchase agreement, volume weighted average price, percentage | 97.55% | |||||||
Purchase agreement, deferred transaction cost | $ | $ 700 | |||||||
Sale of stock, number of shares issued in transaction (in shares) | 147,965 | |||||||
Sale of stock, consideration received on transaction | $ | $ 2,400 | |||||||
Sale of stock, number of shares available in transaction (in shares) | 6,363,567 | |||||||
HGI Subscription Agreement, Additional Shares | Sale Of Stock, Measurement Period Two | ||||||||
Class of Warrant or Right [Line Items] | ||||||||
Sale of stock, covenant, volume weighted average price threshold, measurement period | 6 months | |||||||
HGI Subscription Agreement, Additional Shares | Sale Of Stock, Measurement Period One | ||||||||
Class of Warrant or Right [Line Items] | ||||||||
Sale of stock, covenant, volume weighted average price threshold, measurement period | 3 months | |||||||
HGI Subscription Agreement, Additional Shares | Sale Of Stock, Measurement Period Three | ||||||||
Class of Warrant or Right [Line Items] | ||||||||
Sale of stock, covenant, volume weighted average price threshold, measurement period | 9 months | |||||||
Private Placement Warrants | ||||||||
Class of Warrant or Right [Line Items] | ||||||||
Class of warrant or right, outstanding (in shares) | 6,700,000 | 6,700,000 | ||||||
As-converted, exercise ratio of warrants | 5 | |||||||
Exercise Price (in dollars per share) | $ / shares | $ 57.50 | |||||||
Exercise price (in dollars per share) | $ / shares | $ 57.50 | |||||||
Number of days after the completion of an initial business combination | 30 days | |||||||
Class of warrant or right, number of securities called by warrants or rights (in shares) | 1,340,000 | |||||||
Public Warrants | ||||||||
Class of Warrant or Right [Line Items] | ||||||||
Class of warrant or right, outstanding (in shares) | 8,050,000 | |||||||
As-converted, exercise ratio of warrants | 5 | 5 | ||||||
Exercise Price (in dollars per share) | $ / shares | $ 57.50 | |||||||
Warrants cancelled (in shares) | 749,291 | |||||||
Exercise price (in dollars per share) | $ / shares | $ 57.50 | $ 57.50 | ||||||
Class of warrant or right, number of securities called by warrants or rights (in shares) | 1,460,146 | |||||||
HGI Warrants | ||||||||
Class of Warrant or Right [Line Items] | ||||||||
Exercise price (in dollars per share) | $ / shares | $ 6.30 | |||||||
Warrants issued (in shares) | 905,000 | |||||||
Warrant shares, shares vesting rights, percentage | 40% | |||||||
Warrants, covenant, quarterly net revenue | $ | $ 100,000 | |||||||
Warrants, equity ownership percentage | 25% | |||||||
Warrant, exercise price, increase, percentage | 50% | |||||||
Vested Warrants | ||||||||
Class of Warrant or Right [Line Items] | ||||||||
Stock-based compensation expense | $ | $ 1,200 | |||||||
Class B Common Stock | ||||||||
Class of Warrant or Right [Line Items] | ||||||||
Common stock, par value (in dollars per share) | $ / shares | $ 0.0001 | $ 0.0001 | $ 0.0001 | |||||
Common stock, shares authorized (in shares) | 200,000,000 | 200,000,000 | 200,000,000 | |||||
Number of votes | vote | 10 | |||||||
Reverse recapitalization, contingent consideration, liability (in shares) | 2,799,696 | |||||||
Common Stock | ||||||||
Class of Warrant or Right [Line Items] | ||||||||
Common stock, shares authorized (in shares) | 800,000,000 | |||||||
Class A Common Stock | ||||||||
Class of Warrant or Right [Line Items] | ||||||||
Common stock, par value (in dollars per share) | $ / shares | $ 0.0001 | $ 0.0001 | ||||||
Common stock, shares authorized (in shares) | 600,000,000 | 600,000,000 | 600,000,000 | |||||
Number of votes | vote | 1 | |||||||
Shares converted (in shares) | 1 | |||||||
Reverse recapitalization, contingent consideration, liability (in shares) | 2,602,412 | |||||||
Class A Common Stock | Corvina Holdings Limited | ||||||||
Class of Warrant or Right [Line Items] | ||||||||
Exercise price (in dollars per share) | $ / shares | $ 0.05 | |||||||
Class of warrant or right, number of securities called by warrants or rights (in shares) | 775,005 | |||||||
Shares exercised by warrants at period end (in shares) | 0 | |||||||
Class A Common Stock | Reverse Recapitalization Tranche One | ||||||||
Class of Warrant or Right [Line Items] | ||||||||
Reverse recapitalization, contingent consideration, liability (in shares) | 1,301,206 | |||||||
Reverse recapitalization, contingent consideration, liability, earnout period, stock price trigger (in dollars per share) | $ / shares | $ 62.50 | |||||||
Reverse recapitalization contingent consideration, liability, earnout period, threshold trading days | 20 days | |||||||
Reverse recapitalization, contingent consideration, liability, earnout period, threshold trading day period | 30 days | |||||||
Class A Common Stock | Reverse Recapitalization Tranche Two | ||||||||
Class of Warrant or Right [Line Items] | ||||||||
Reverse recapitalization, contingent consideration, liability (in shares) | 1,301,206 | |||||||
Reverse recapitalization, contingent consideration, liability, earnout period, stock price trigger (in dollars per share) | $ / shares | $ 75 | |||||||
Reverse recapitalization contingent consideration, liability, earnout period, threshold trading days | 20 days | |||||||
Reverse recapitalization, contingent consideration, liability, earnout period, threshold trading day period | 30 days | |||||||
Class A Common Stock | HGI Subscription Agreement | ||||||||
Class of Warrant or Right [Line Items] | ||||||||
Sale of stock, number of shares issued in transaction (in shares) | 396,825 | |||||||
Sale of stock, consideration received on transaction | $ | $ 2,500 | |||||||
Class A Common Stock | HGI Subscription Agreement, Additional Shares | ||||||||
Class of Warrant or Right [Line Items] | ||||||||
Sale of stock, number of shares issued in transaction (in shares) | 714,285 | |||||||
Sale of stock, covenant, volume weighted average price threshold (in dollars per share) | $ / shares | $ 6.30 | |||||||
Sale of stock, covenant, volume weighted average price threshold, trading period | 3 days | |||||||
Class A Common Stock | Public Warrants | ||||||||
Class of Warrant or Right [Line Items] | ||||||||
Class of warrants redemption notice period | 30 days | |||||||
Class of warrants or rights redemption price per unit (in dollars per share) | $ / shares | $ 0.01 | |||||||
Share redemption trigger price (in dollars per share) | $ / shares | $ 90 | |||||||
Class A Common Stock | Public Warrants | Minimum | ||||||||
Class of Warrant or Right [Line Items] | ||||||||
Class of warrant or right redemption threshold consecutive trading days | 20 days | |||||||
Class A Common Stock | Public Warrants | Maximum | ||||||||
Class of Warrant or Right [Line Items] | ||||||||
Class of warrant or right redemption threshold consecutive trading days | 30 days | |||||||
2022 Equity Incentive Plan | Class B Common Stock | ||||||||
Class of Warrant or Right [Line Items] | ||||||||
Recapitalization exchange ratio | 1.1760 |
Common Stock and Warrants - Sch
Common Stock and Warrants - Schedule of Stockholders' Equity Note, Warrants or Rights (Details) - $ / shares | Dec. 31, 2023 | Jun. 16, 2022 |
Public Warrants | ||
Class of Warrant or Right [Line Items] | ||
Class of warrant or right, number of securities called by warrants or rights (in shares) | 1,460,146 | |
Exercise price (in dollars per share) | $ 57.50 | $ 57.50 |
Private Placement Warrants | ||
Class of Warrant or Right [Line Items] | ||
Class of warrant or right, number of securities called by warrants or rights (in shares) | 1,340,000 | |
Exercise price (in dollars per share) | $ 57.50 |
Common Stock and Warrants - S_2
Common Stock and Warrants - Schedule of Share-Based Payment Award, Stock Options, Valuation Assumptions (Details) - $ / shares | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2021 | |
Class of Warrant or Right [Line Items] | ||
Fair value of common stock (in dollars per share) | $ 18.65 | |
Unvested Warrant | ||
Class of Warrant or Right [Line Items] | ||
Fair value of common stock (in dollars per share) | $ 6.30 | |
Expected term in years | 4 years 6 months | |
Volatility | 62.50% | |
Risk-free interest rate | 4% | |
Dividend yield | 0% | |
Vested Warrants | ||
Class of Warrant or Right [Line Items] | ||
Fair value of common stock (in dollars per share) | $ 6.30 | |
Expected term in years | 4 years 6 months | |
Volatility | 62.50% | |
Risk-free interest rate | 4% | |
Dividend yield | 0% |
Common Stock and Warrants - S_3
Common Stock and Warrants - Schedule of Reserved for Issuance (Details) - shares | Dec. 31, 2023 | Dec. 31, 2022 |
Class A Common Stock | ||
Class of Warrant or Right [Line Items] | ||
Total shares of common stock reserved (in shares) | 21,997,183 | 14,572,441 |
Class A Common Stock | Restricted stock units | ||
Class of Warrant or Right [Line Items] | ||
Total shares of common stock reserved (in shares) | 4,703,850 | 3,864,448 |
Class A Common Stock | Stock options | ||
Class of Warrant or Right [Line Items] | ||
Total shares of common stock reserved (in shares) | 1,084,456 | 1,264,302 |
Class A Common Stock | Shares Issuable Upon Conversion Of Redeemable Convertible Preferred Stock | ||
Class of Warrant or Right [Line Items] | ||
Total shares of common stock reserved (in shares) | 4,739,336 | 0 |
Class A Common Stock | Private Placement Warrants | ||
Class of Warrant or Right [Line Items] | ||
Total shares of common stock reserved (in shares) | 1,340,000 | 1,340,000 |
Class A Common Stock | Public Warrants | ||
Class of Warrant or Right [Line Items] | ||
Total shares of common stock reserved (in shares) | 1,460,146 | 1,610,000 |
Class A Common Stock | Backstop Warrants | ||
Class of Warrant or Right [Line Items] | ||
Total shares of common stock reserved (in shares) | 775,005 | 775,005 |
Class A Common Stock | Volition Penny Warrants | ||
Class of Warrant or Right [Line Items] | ||
Total shares of common stock reserved (in shares) | 20,905 | 0 |
Class A Common Stock | Other Outstanding common stock warrants | ||
Class of Warrant or Right [Line Items] | ||
Total shares of common stock reserved (in shares) | 2,484,778 | 905,000 |
Class B Common Stock | ||
Class of Warrant or Right [Line Items] | ||
Total shares of common stock reserved (in shares) | 932,628 | 985,630 |
Class B Common Stock | Restricted stock units | ||
Class of Warrant or Right [Line Items] | ||
Total shares of common stock reserved (in shares) | 9,005 | 32,149 |
Class B Common Stock | Stock options | ||
Class of Warrant or Right [Line Items] | ||
Total shares of common stock reserved (in shares) | 809,847 | 839,705 |
Class B Common Stock | Shares Issuable Upon Conversion Of Redeemable Convertible Preferred Stock | ||
Class of Warrant or Right [Line Items] | ||
Total shares of common stock reserved (in shares) | 0 | 0 |
Class B Common Stock | Private Placement Warrants | ||
Class of Warrant or Right [Line Items] | ||
Total shares of common stock reserved (in shares) | 0 | 0 |
Class B Common Stock | Public Warrants | ||
Class of Warrant or Right [Line Items] | ||
Total shares of common stock reserved (in shares) | 0 | 0 |
Class B Common Stock | Backstop Warrants | ||
Class of Warrant or Right [Line Items] | ||
Total shares of common stock reserved (in shares) | 0 | 0 |
Class B Common Stock | Volition Penny Warrants | ||
Class of Warrant or Right [Line Items] | ||
Total shares of common stock reserved (in shares) | 0 | 0 |
Class B Common Stock | Other Outstanding common stock warrants | ||
Class of Warrant or Right [Line Items] | ||
Total shares of common stock reserved (in shares) | 113,776 | 113,776 |
2022 Equity Incentive Plan | Class A Common Stock | ||
Class of Warrant or Right [Line Items] | ||
Total shares of common stock reserved (in shares) | 4,642,495 | 4,158,872 |
2022 Equity Incentive Plan | Class B Common Stock | ||
Class of Warrant or Right [Line Items] | ||
Total shares of common stock reserved (in shares) | 0 | 0 |
Employee Stock Purchase Plan, 2022 | Class A Common Stock | Stock options | ||
Class of Warrant or Right [Line Items] | ||
Total shares of common stock reserved (in shares) | 746,212 | 654,814 |
Employee Stock Purchase Plan, 2022 | Class B Common Stock | Stock options | ||
Class of Warrant or Right [Line Items] | ||
Total shares of common stock reserved (in shares) | 0 | 0 |
Stock-Based Compensation - Narr
Stock-Based Compensation - Narrative (Details) $ / shares in Units, $ in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||||||
Aug. 16, 2023 tranche shares | Sep. 26, 2022 $ / shares shares | May 31, 2022 shares | Feb. 28, 2021 USD ($) $ / shares shares | Jun. 30, 2022 USD ($) | Dec. 31, 2023 USD ($) $ / shares shares | Dec. 31, 2022 USD ($) $ / shares shares | Dec. 31, 2021 USD ($) $ / shares | Jun. 16, 2022 | Apr. 30, 2022 shares | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||||||
Share-based compensation arrangement by share-based payment award, options, grants in period, gross | 0 | |||||||||
Fair value of common stock (in dollars per share) | $ / shares | $ 18.65 | |||||||||
Share-based compensation arrangement by share-based payment award, options, vested in period, fair value | $ | $ 0.2 | $ 10.5 | $ 13.3 | |||||||
Share-based compensation arrangement by share-based payment award, options, exercisable, aggregate intrinsic value | $ | 0 | 1 | 4.3 | |||||||
Stock-based compensation expense | $ | 15.5 | $ 43.6 | $ 14.6 | |||||||
Share-based payment arrangement, aggregate incremental expense, option exchange | $ | 4.4 | |||||||||
Share-based payment arrangement, nonvested award, cost not yet recognized, amount | $ | $ 17.8 | |||||||||
Share-based payment arrangement, nonvested award, cost not yet recognized, period for recognition (in years) | 1 year 10 months 24 days | |||||||||
Class B Common Stock | ||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||||||
Total shares of common stock reserved (in shares) | 932,628 | 985,630 | ||||||||
Stock options | ||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||||||
Share-based compensation arrangement by share-based payment award, options, exchange, number | 2,595,496 | |||||||||
Share-based compensation arrangement by share-based payment award, options, exchange, weighted average exercise price (in dollars per share) | $ / shares | $ 16.20 | |||||||||
Restricted stock units | ||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||||||
Share-based compensation arrangement by share-based payment award, options, exchange, number | 1,916,450 | |||||||||
2022 Equity Incentive Plan | Class B Common Stock | ||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||||||
Recapitalization exchange ratio | 1.1760 | |||||||||
Market-based Stock Options | ||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||||||
Share-based compensation arrangement by share-based payment award, options, grants in period, gross | 203,434 | |||||||||
Share-based compensation arrangement by share-based payment award, options, exercisable, weighted average exercise price (in dollars per share) | $ / shares | $ 18.85 | |||||||||
Vesting rights, percentage | 100% | |||||||||
Share-based compensation arrangement by share-based payment award, options, grant date, fair value | $ | $ 5.5 | |||||||||
Stock-based compensation expense | $ | $ 4.6 | |||||||||
Restricted stock units | ||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||||||
Weighted average date fair value | $ / shares | $ 4.16 | $ 8.78 | ||||||||
Share-based payment arrangement, catch up expense | $ | $ 11.9 | |||||||||
Granted (in shares) | 4,073,223 | |||||||||
Restricted stock units | Chief Executive Officer | ||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||||||
Stock-based compensation expense | $ | $ 0.3 | |||||||||
Granted (in shares) | 850,000 | |||||||||
Share-based payment arrangement, tranches (in tranches) | tranche | 4 | |||||||||
Share-based compensation arrangement by share-based payment award, award vesting period | 4 years | |||||||||
Share-based payment arrangement, fair value | $ | $ 2 | |||||||||
Restricted stock units | Share-Based Payment Arrangement, Tranche One | Chief Executive Officer | ||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||||||
Vesting rights, percentage | 25% | |||||||||
Restricted stock units | Share-Based Payment Arrangement, Tranche Two | Chief Executive Officer | ||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||||||
Vesting rights, percentage | 25% | |||||||||
Restricted stock units | Share-Based Payment Arrangement, Tranche Three | Chief Executive Officer | ||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||||||
Vesting rights, percentage | 25% | |||||||||
Restricted stock units | Share-Based Payment Arrangement, Tranche Four | Chief Executive Officer | ||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||||||
Vesting rights, percentage | 25% | |||||||||
Restricted stock units | Vesting on February 15, 2023 | ||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||||||
Vesting rights, percentage | 50% | |||||||||
Restricted stock units | Vesting on May 15, 2023 | ||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||||||
Vesting rights, percentage | 50% | |||||||||
Restricted stock units | Class B Common Stock | ||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||||||
Total shares of common stock reserved (in shares) | 9,005 | 32,149 | ||||||||
Employee Stock | ||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||||||
Stock-based compensation expense | $ | $ 0.8 | $ 0.1 | ||||||||
Weighted average date fair value | $ / shares | $ 0.85 | |||||||||
Share-based compensation arrangement by share-based payment award, maximum employee contributions, percentage of eligible compensation | 0.20 | |||||||||
Total shares of common stock reserved (in shares) | 3,274,070 | |||||||||
Share-based compensation arrangement by share-based payment award, number of additional shares allowable under the plan | 3,274,070 | |||||||||
Share-based compensation arrangement by share-based payment award, percentage of outstanding stock maximum | 1% | |||||||||
Share-based compensation arrangement by share-based payment award, shares issued in period (in shares) | 263,219 | 0 | ||||||||
Equity Award Modifications | ||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||||||
Share-based payment arrangement, plan modification, incremental cost | $ | $ 0 | $ 2.9 | ||||||||
Equity Award Modifications | Sixty Days | ||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||||||
Share-based payment arrangement, option, exercise price range, exercisable, weighted average remaining contractual term (in years) | 60 days | |||||||||
Equity Award Modifications | One Year | ||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||||||
Share-based payment arrangement, option, exercise price range, exercisable, weighted average remaining contractual term (in years) | 1 year | |||||||||
Equity Award Modifications | Two Years | ||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||||||
Share-based payment arrangement, option, exercise price range, exercisable, weighted average remaining contractual term (in years) | 2 years | |||||||||
Equity Award Modifications | Ten Years | ||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||||||
Share-based payment arrangement, option, exercise price range, exercisable, weighted average remaining contractual term (in years) | 10 years | |||||||||
2016 Equity Incentive Plan | ||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||||||
Share-based compensation arrangement by share-based payment award, number of shares authorized (in shares) | 700,000 | |||||||||
2022 Equity Incentive Plan | ||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||||||
Share-based compensation arrangement by share-based payment award, number of shares authorized (in shares) | 8,107,744 | |||||||||
Share-based compensation arrangement by share-based payment award, annual percent of shares increase | 0.05 | |||||||||
2022 Equity Incentive Plan | Class B Common Stock | ||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||||||
Total shares of common stock reserved (in shares) | 0 | 0 |
Stock-Based Compensation - Shar
Stock-Based Compensation - Share-Based Payment Arrangement, Option, Activity (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Number of Options | ||
Options outstanding, beginning of period (in shares) | 2,104,007 | |
Exercised (in shares) | (37,334) | |
Cancelled/forfeited (in shares) | (172,370) | |
Options outstanding, ending of period (in shares) | 1,894,303 | 2,104,007 |
Options vested and exercisable (in shares) | 1,681,368 | |
Weighted–Average Exercise Price | ||
Options outstanding, beginning of period (in dollars per share) | $ 7.95 | |
Exercised (in dollars per share) | 1.90 | |
Cancelled/forfeited (in dollars per share) | 10.73 | |
Options outstanding, ending of period (in dollars per share) | 7.82 | $ 7.95 |
Options vested and exercisable (in dollars per share) | $ 6.43 | |
Weighted-Average Remaining Contractual Life (years) | ||
Options, outstanding (in years) | 4 years 2 months 23 days | 4 years 10 months 13 days |
Options vested and exercisable (in years) | 3 years 10 months 9 days | |
Aggregate Intrinsic Value | ||
Options, outstanding, aggregate intrinsic value | $ 32 | $ 61 |
Options, vested and exercisable, aggregate intrinsic value | $ 32 |
Stock-Based Compensation - Sche
Stock-Based Compensation - Schedule of Restricted Stock Units Activity (Details) - Restricted stock units | 12 Months Ended |
Dec. 31, 2023 $ / shares shares | |
Number of Options | |
Outstanding and unvested, beginning of period (in shares) | shares | 3,896,597 |
Granted (in shares) | shares | 4,073,223 |
Vested (in shares) | shares | (2,484,612) |
Cancelled/forfeited (in shares) | shares | (772,353) |
Outstanding and unvested, ending of period (in shares) | shares | 4,712,855 |
Weighted–Average Exercise Price | |
Outstanding and unvested, beginning of period (in dollars per share) | $ / shares | $ 8.78 |
Granted (in dollars per share) | $ / shares | 2.21 |
Vested (in dollars per share) | $ / shares | 7.15 |
Cancelled/forfeited (in dollars per share) | $ / shares | 7.56 |
Outstanding and unvested, ending of period (in dollars per share) | $ / shares | $ 4.16 |
Stock-Based Compensation - Sc_2
Stock-Based Compensation - Schedule of Share-Based Payment Award, Employee Stock Purchase Plan, Valuation Assumptions (Details) - Employee Stock | 12 Months Ended |
Dec. 31, 2023 $ / shares | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |
Volatility, minimum | 66% |
Volatility, maximum | 73% |
Risk-free interest rate, minimum | 4.54% |
Risk-free interest rate, maximum | 5.24% |
Dividend yield | 0% |
Minimum | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |
Share price (in dollars per share) | $ 2.37 |
Expected term in years | 6 months |
Maximum | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |
Share price (in dollars per share) | $ 6.20 |
Expected term in years | 1 year |
Provision for Income Taxes - Sc
Provision for Income Taxes - Schedule of Effective Income Tax Rate Reconciliation (Details) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |||
Federal statutory rate | 21% | 21% | 21% |
Stock-based compensation | (9.20%) | (7.30%) | (0.60%) |
Remeasurement of derivative liabilities | 0.10% | 17.50% | (0.20%) |
Other | 0% | 0.40% | 0% |
Change in valuation allowance | (12.00%) | (31.60%) | (20.20%) |
Provision for income taxes | (0.10%) | 0% | 0% |
Provision for Income Taxes - _2
Provision for Income Taxes - Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Deferred tax assets: | |||
Net operating loss carryforwards | $ 125,850 | $ 119,345 | |
Deferred revenue | 1,745 | 2,581 | |
Inventory reserve and uniform capitalization | 2,509 | 3,365 | |
Operating lease liabilities | 4,364 | 4,720 | |
Accruals and other reserves | 1,332 | 1,876 | |
Stock-based compensation | 5,570 | 6,856 | |
Business Interest Carryforwards | 7,660 | 4,840 | |
Other | 268 | 268 | |
Total deferred tax assets | 149,298 | 143,851 | |
Less: valuation allowance | (145,711) | (139,033) | $ (107,301) |
Total deferred tax assets, net of valuation allowance | 3,587 | 4,818 | |
Deferred tax liabilities: | |||
Operating lease right-of-use assets | (2,344) | (2,933) | |
Depreciation and amortization | (1,243) | (1,885) | |
Total deferred tax liabilities | (3,587) | (4,818) | |
Net deferred tax assets | $ 0 | $ 0 |
Provision for Income Taxes - Su
Provision for Income Taxes - Summary of Valuation Allowance (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Income Taxes Valuation Allowance [Roll Forward] | ||
Valuation allowance, as of beginning of year | $ 139,033 | $ 107,301 |
Changes to existing valuation allowances | 6,700 | |
Valuation allowance, as of end of year | 145,711 | 139,033 |
Valuation Allowance, Current Year Activity | ||
Income Taxes Valuation Allowance [Roll Forward] | ||
Changes to existing valuation allowances | 5,947 | 31,270 |
Valuation Allowance, Tax Provision At Federal Statutory Tax Rate | ||
Income Taxes Valuation Allowance [Roll Forward] | ||
Changes to existing valuation allowances | $ 731 | $ 462 |
Provision for Income Taxes - Na
Provision for Income Taxes - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Tax Contingency [Line Items] | |||
Deferred tax assets, valuation allowance | $ 145,711 | $ 139,033 | $ 107,301 |
Changes to existing valuation allowances | 6,700 | ||
Valuation Allowance, Current Year Activity | |||
Income Tax Contingency [Line Items] | |||
Changes to existing valuation allowances | 5,947 | 31,270 | |
Valuation Allowance, Tax Provision At Federal Statutory Tax Rate | |||
Income Tax Contingency [Line Items] | |||
Changes to existing valuation allowances | 731 | $ 462 | |
Domestic Tax Authority | |||
Income Tax Contingency [Line Items] | |||
Operating loss carryforwards | 536,800 | ||
Operating loss carryforwards, subject to expiration | 511,900 | ||
State and Local Jurisdiction | |||
Income Tax Contingency [Line Items] | |||
Operating loss carryforwards | 226,800 | ||
Operating loss carryforwards, subject to expiration | 197,000 | ||
Operating loss carryforwards, not subject to expiration | $ 29,800 |
Net Loss Per Share Attributab_3
Net Loss Per Share Attributable to Common Stockholders - Schedule of Earnings Per Share, Basic and Diluted (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Net loss, basic and diluted | $ (43,232) | $ (87,715) | $ (135,896) |
Less: Accretion on redeemable convertible preferred stock | (957) | 0 | 0 |
Less: Series A accumulated dividends | (233) | 0 | 0 |
Net loss per share attributable to common stockholders, basic | (44,422) | (87,715) | (135,896) |
Net loss per share attributable to common stockholders, diluted | $ (44,422) | $ (87,715) | $ (135,896) |
Net loss per share attributable to common stockholders, basic (in dollars per share) | $ (1.28) | $ (4.85) | $ (79.28) |
Net loss per share attributable to common stockholders, diluted (in dollars per share) | $ (1.28) | $ (4.85) | $ (79.28) |
Weighted-average shares used in computing net loss per share attributable to common stockholders, basic (in shares) | 34,797,582 | 18,101,407 | 1,714,230 |
Weighted-average shares used in computing net loss per share attributable to common stockholders, diluted (in shares) | 34,797,582 | 18,101,407 | 1,714,230 |
Net Loss Per Share Attributab_4
Net Loss Per Share Attributable to Common Stockholders - Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share (Details) - shares | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities (in shares) | 19,414,926 | 12,769,076 | 29,290,514 |
Convertible preferred stock | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities (in shares) | 4,739,336 | 0 | 23,057,403 |
Common stock options | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities (in shares) | 1,894,303 | 2,104,007 | 5,576,504 |
Restricted stock units | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities (in shares) | 4,712,855 | 3,896,597 | 355,436 |
Warrant [Member] | Preferred stock warrants | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities (in shares) | 0 | 0 | 147,152 |
Warrant [Member] | Common stock warrants | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities (in shares) | 2,598,554 | 1,018,776 | 137,669 |
Warrant [Member] | Private and Public Placement Warrants | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities (in shares) | 2,800,146 | 2,950,000 | 0 |
Earn-Out Shares | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities (in shares) | 2,602,554 | 2,799,696 | 0 |
Shares subject to repurchase | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities (in shares) | 0 | 0 | 16,350 |
ESPP Shares | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities (in shares) | 67,178 | 0 | 0 |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) $ in Thousands | 1 Months Ended | |
Mar. 20, 2024 | Dec. 31, 2023 | |
Subsequent Event [Line Items] | ||
Total undiscounted lease payments | $ 23,875 | |
Subsequent Event | ||
Subsequent Event [Line Items] | ||
Operating lease, expense | $ 4,800 | |
Total undiscounted lease payments | $ 400 |