GrowGeneration Corp. Files 2023 Annual Report (10-K)

TL;DR

<b>GrowGeneration Corp. has filed its 2023 10-K report detailing its financial performance and business operations.</b>

AI Summary

GrowGeneration Corp. (GRWG) filed a Annual Report (10-K) with the SEC on March 13, 2024. GrowGeneration Corp. filed its 10-K report for the fiscal year ending December 31, 2023. The company's principal business address is 5619 DTC Parkway, Greenwood Village, CO 80111. GrowGeneration Corp. was formerly known as EasyLife, Corp. until April 4, 2014. The filing includes financial data for the fiscal years 2023, 2022, and 2021. The SIC code for GrowGeneration Corp. is 5200 (Retail - Building Materials, Hardware, Garden Supply).

Why It Matters

For investors and stakeholders tracking GrowGeneration Corp., this filing contains several important signals. This 10-K filing provides a comprehensive overview of GrowGeneration Corp.'s financial health, operational status, and strategic direction for the fiscal year 2023, which is crucial for investors to assess the company's performance and future prospects. As a publicly traded company, GrowGeneration Corp.'s annual report is a key document for stakeholders, including investors, creditors, and regulatory bodies, to understand its financial position, risks, and compliance with SEC regulations.

Risk Assessment

Risk Level: medium — GrowGeneration Corp. shows moderate risk based on this filing. The company's financial performance and operational details are presented in this 10-K, which is a standard requirement for public companies, indicating a medium level of risk associated with the information provided.

Analyst Insight

Review the detailed financial statements and risk factors within the 10-K to understand GrowGeneration Corp.'s performance and potential challenges in the upcoming fiscal year.

Key Numbers

• 2023-12-31 — Fiscal Year End (Report period)
• 2024-03-13 — Filing Date (Date of submission)
• 2014-04-04 — Name Change Date (Former company name EasyLife, Corp.)
• 5200 — SIC Code (Retail - Building Materials, Hardware, Garden Supply)

Key Players & Entities

• GrowGeneration Corp. (company) — Filer name
• EasyLife, Corp. (company) — Former company name
• 2023-12-31 (date) — Fiscal year end
• 2024-03-13 (date) — Filing date
• 5619 DTC Parkway, Greenwood Village, CO 80111 (address) — Business address
• 0001604868 (company) — Central Index Key
• 5200 (industry) — Standard Industrial Classification
• CO (location) — State of incorporation

FAQ

Industry Context

GrowGeneration Corp. operates within the retail sector, specifically focusing on building materials, hardware, and garden supply.

Regulatory Implications

The filing is a 10-K report, which is an annual report required by the U.S. Securities and Exchange Commission (SEC) that gives a comprehensive summary of a company's financial performance.

What Investors Should Do

1. Analyze the financial statements for revenue, net income, and cash flow for fiscal year 2023.
2. Review the risk factors section for any new or evolving risks that could impact the company.
3. Compare key financial metrics from this 10-K to previous years to identify trends.

Key Dates

• 2023-12-31: Fiscal Year End — End of the reporting period for the 10-K.
• 2024-03-13: Filing Date — Date the 10-K was officially submitted to the SEC.

Year-Over-Year Comparison

This is the initial filing data extracted, no prior filing data is available for comparison.

Key Financial Figures

• $0.001 — ich registered Common Stock, par value $0.001 per share GRWG The NASDAQ Stock Market

Filing Documents

• grwg-20231231.htm (10-K) — 1817KB
• grwg-20231231x10kexx211.htm (EX-21.1) — 6KB
• grwg-20231231x10kexx231.htm (EX-23.1) — 2KB
• grwg-20231231x10kexx232.htm (EX-23.2) — 2KB
• grwg-20231231x10kexx311.htm (EX-31.1) — 10KB
• grwg-20231231x10kexx312.htm (EX-31.2) — 10KB
• grwg-20231231x10kexx321.htm (EX-32.1) — 5KB
• grwg-20231231x10kexx322.htm (EX-32.2) — 5KB
• ex-97clawback.htm (EX-97) — 26KB
• growgenlogoforworkiva2.jpg (GRAPHIC) — 22KB
• grwg-20231231_g1.jpg (GRAPHIC) — 231KB
• 0001628280-24-010996.txt (&nbsp;) — 10675KB
• grwg-20231231.xsd (EX-101.SCH) — 68KB
• grwg-20231231_cal.xml (EX-101.CAL) — 96KB
• grwg-20231231_def.xml (EX-101.DEF) — 241KB
• grwg-20231231_lab.xml (EX-101.LAB) — 678KB
• grwg-20231231_pre.xml (EX-101.PRE) — 496KB
• grwg-20231231_htm.xml (XML) — 1912KB

Business

Business 1 Item 1A.

Risk Factors

Risk Factors 6 Item 1B. Unresolved Staff Comments 14 Item 1C. Cybersecurity 15 Item 2.

Properties

Properties 16 Item 3.

Legal Proceedings

Legal Proceedings 17 Item 4. Mine Safety Disclosures 17 PART II Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 18 Item 6.

Selected Financial Data

Selected Financial Data 19 Item 7.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 20 Item 7A.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 28 Item 8.

Financial Statements and Supplementary Data

Financial Statements and Supplementary Data F- 1 Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 31 Item 9A.

Controls and Procedures

Controls and Procedures 31 Item 9B. Other Information 33 PART III Item 10. Directors, Executive Officers and Corporate Governance 34 Item 11.

Executive Compensation

Executive Compensation 35 Item 12.

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 35 Item 13. Certain Relationships and Related Transactions, and Director Independence 35 Item 14. Principal Accountant Fees and Services 35 PART IV Item 15. Exhibits, Financial Statement Schedules 36

Signatures

Signatures 37 i Table of Contents PART I Forward-Looking Information This Annual Report of GrowGeneration Corp. on Form 10-K contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which are subject to risks and uncertainties. Forward-looking statements generally can be identified through the use of words such as "guidance," "outlook," "projected," "may," "likely," "anticipates," "believes," "expects," "estimates," "plans," "intends," "objectives," and similar expressions. These statements reflect management's best judgment based on factors known at the time of such statements. Actual events or results may differ materially from those discussed herein. The forward-looking statements contained in this Annual Report on Form 10-K have been compiled by our management on the basis of assumptions made by management and considered by management to be reasonable. Our future operating results, however, are impossible to predict and no representation, guaranty, or warranty is to be inferred from those forward-looking statements. The assumptions used for purposes of the forward-looking statements contained in this Annual Report on Form 10-K represent estimates of future events and are subject to uncertainty as to possible changes in economic, legislative, industry, and other circumstances. As a result, the identification and interpretation of data and other information and their use in developing and selecting assumptions from and among reasonable alternatives require the exercise of judgment. To the extent that the assumed events do not occur, the outcome may vary substantially from anticipated or projected results, and, accordingly, no opinion is expressed on the achievability of those forward-looking statements. No assurance can be given that any of the assumptions relating to the forward-looking statements specified in the following inform

BUSINESS

ITEM 1. BUSINESS BACKGROUND GrowGeneration Corp. (together with all of its direct and indirect wholly owned subsidiaries, collectively "GrowGeneration" or the "Company") was incorporated in Colorado in 2014. Since then, GrowGeneration has grown from a small chain of specialty retail hydroponic and organic garden centers to a multifaceted business with diverse assets. Today, GrowGeneration operates two major lines of business: its Cultivation and Gardening segment, composed of the Company's hydroponic and organic gardening business; and its Storage Solutions segment, composed of the Company's benching, racking, and storage solutions business. 1 Table of Contents BUSINESS SEGMENTS During the fourth quarter of 2023, the Company realigned it operating and reportable segments to correspond with changes to its operating model, management structure, and internal reporting and to better align with how the Chief Executive Officer makes operating decisions, allocates resources, and assesses performance. Accordingly, the Company identified two operating segments, each its own reportable segment, based on its major lines of business: the Cultivation and Gardening segment and the Storage Solutions segment. Comparative prior period disclosures in this Annual Report on Form 10-K have been recast to conform to the current segment presentation. Refer to Note 14, Segments, of the Consolidated Financial Statements included in Item 8 of this Annual Report on Form 10-K ("Consolidated Financial Statements") for additional information regarding the Company's reportable segments. Cultivation and Gardening GrowGeneration is a leading developer, marketer, retailer, and distributor of products for both indoor and outdoor hydroponic and organic gardening. We are dedicated to providing best-in-class selection, service, and solutions to all types of cultivators. The Company's main business strategy has been to consolidate assets within the fragmented hydroponics industry to leverage e

RISK FACTORS

ITEM 1A. RISK FACTORS RISKS RELATING TO OUR BUSINESS We face competition that could prohibit us from developing or increasing our customer base. Both the specialty gardening and hydroponic industry and storage solutions industry are highly competitive. Companies with much greater financial resources which do not currently compete with us may be able to adapt their existing operations to sales of gardening and hydroponic products or storage products. Our competitors may also introduce new competitive products, and manufacturers may sell products direct to consumers. Due to this competition, we may encounter difficulties maintaining or increasing revenues or profits. If we underestimate or overestimate demand for our products and do not maintain appropriate inventory levels, our net sales, working capital, or profitability could be negatively impacted. In determining the required quantities of our products, we must make judgments and estimates based on production capacity, timing of shipments, inventory levels, market trends and other factors. Because of the inherent nature of estimates, there could be significant differences between our estimates and the actual amounts of products we require, which could negatively impact our net sales, profit margins, net earnings, working capital, or cash flow, hinder our a

View Full Filing

View this 10-K filing on SEC EDGAR