Groove Botanicals Inc (GRVE) Q4 2024 Earnings Report

Groove Botanicals Inc (GRVE) reported a materially stressed QQ4 2024 with no revenue disclosed in the available data and a meaningful quarterly net loss of $122 thousand. EBITDA and operating income were negative, driven by high fixed overhead and non-cash depreciation/amortization adjustments, and the company posted a modest tax credit of $155 but still incurred a net loss attributable to shareholders. The quarter underscores a burn profile typical of an early-stage microcap with limited operating scale and no visible revenue stream in the period.

From a balance-sheet perspective, the company displays extreme liquidity fragility. Cash and cash equivalents stand at $1.69 thousand against current liabilities of $762.70 thousand, yielding a current ratio and cash ratio both near zero (0.0028 and 0.0022, respectively). Equity is negative at approximately -$760.6 thousand, with retained earnings deeply negative, signaling ongoing accumulated losses and a precarious balance sheet position absent lengthy fundraising or asset monetization. Free cash flow for the period was negative at $78.4 thousand, reinforcing the cash burn narrative.

Although the quarterly sequence shows a small net income in Q3 2024 (net income of $24.21 thousand) versus a downturn in Q2 and Q4, the overall trajectory remains analytically weak due to absent revenue data for QQ4 2024 and a structurally unprofitable model in the latest period. In the absence of earnings-call commentary in the provided dataset, the assessment relies on disclosed metrics and standard microcap risk factors: liquidity scarcity, reliance on external financing, and significant market and execution risks. Investors should treat the stock as highly speculative until there is visible revenue generation, meaningful liquidity runway, and a credible financing/funding plan or strategic pivot.