8-K: Grove Collaborative Appoints Baker Tilly as New Independent Auditor Following Moss Adams Merger

Grove Collaborative Holdings, Inc. announced the appointment of Baker Tilly US, LLP as its new independent registered public accounting firm, succeeding Moss Adams LLP due to a merger.

Summary

• Grove Collaborative Holdings, Inc. (the "Company") was notified on June 3, 2025, that Moss Adams LLP ("Moss Adams"), its independent registered public accounting firm, merged with Baker Tilly US, LLP.
• Effective June 3, 2025, the combined audit practices operate as Baker Tilly US, LLP ("Baker Tilly").
• Moss Adams resigned as the Company's auditors due to the merger.
• The Audit Committee of the Company's Board of Directors approved the appointment of Baker Tilly as the successor independent registered public accounting firm.
• Moss Adams was engaged for the audit of the Company's financial statements for the year ended December 31, 2024.
• The audit report of Moss Adams for the year ended December 31, 2024, did not contain an adverse opinion, disclaimer of opinion, or any qualifications/modifications.
• There were no disagreements with Moss Adams on accounting principles, financial statement disclosure, or auditing scope/procedure during the year ended December 31, 2024, and through June 3, 2025.
• There were no reportable events requiring disclosure pursuant to Item 304(a)(1)(v) of Regulation S-K.
• Neither the Company nor anyone on its behalf consulted with Baker Tilly regarding accounting principles or audit opinions prior to their appointment.
• Moss Adams provided a letter to the SEC, dated June 4, 2025, agreeing with the Company's statements in the Form 8-K.

Sentiment

Score: 7

Explanation: The sentiment is positive because the change in auditor is a result of a merger, not due to any issues with the company's financial reporting or disagreements with the auditor. The explicit confirmation of no adverse opinions, disclaimers, or disagreements with the outgoing auditor, Moss Adams, reinforces transparency and good governance.

Positives

• The transition of the independent registered public accounting firm from Moss Adams LLP to Baker Tilly US, LLP was a result of a merger, indicating a routine administrative change rather than a performance-related issue.
• Moss Adams' audit report for the year ended December 31, 2024, did not contain any adverse opinion, disclaimer, or qualifications, affirming the integrity of past financial statements.
• There were no disagreements on accounting principles or auditing procedures, nor any reportable events with Moss Adams, suggesting a smooth and professional relationship prior to the change.

Risks

• While the change is due to a merger, any change in an independent auditor carries a minor inherent risk of disruption to the audit process or a learning curve for the new firm, though this filing indicates a smooth transition.

Future Outlook

The document does not contain any forward-looking statements or guidance regarding the company's financial performance or strategic outlook, focusing solely on the change in its independent registered public accounting firm.

Management Comments

• Tom Siragusa, Interim Chief Financial Officer, signed the report on behalf of Grove Collaborative Holdings, Inc.

Industry Context

Mergers between large accounting firms are common in the auditing industry, often leading to changes in auditor for client companies. This event reflects a standard administrative consequence of such consolidation, rather than an issue specific to Grove Collaborative's financial health or practices.

Comparison to Industry Standards

• The process described, including the Audit Committee's approval and the confirmation from the outgoing auditor of no disagreements or reportable events, aligns with standard corporate governance practices and SEC requirements for auditor changes.
• The lack of prior consultations with the incoming auditor on specific accounting principles or audit opinions is also a standard practice to maintain auditor independence.

Corporate Governance

Stakeholder Impact

• Shareholders: Provides assurance of continued independent oversight of financial statements, with no reported issues or disagreements with the previous auditor.
• Regulatory Authorities: Demonstrates compliance with SEC reporting requirements regarding changes in certifying accountants.

Next Steps

• Baker Tilly US, LLP will serve as the Company's independent registered public accounting firm for future audits.

Key Dates

Keywords

Auditor Change, SEC Filing, Form 8-K, Independent Public Accountant, Moss Adams, Baker Tilly, Corporate Governance, Financial Reporting, Audit Committee, GROV