What changed in this filing

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Item 1. Financial Statements

2026-05-12 compared with 2025-11-06 · 170 added, 352 removed, 359 unchanged (59% of the section changed)

3 unchanged sentences

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited, in thousands, except shares)

September 30,

(Unaudited, in thousands, except share and per share amounts)

2026 December 31,

2 unchanged sentences

Marketable securities 19,440 15,658

Accounts receivable, net of allowance for credit losses of $ 2,080 and $ 2,177 at September 30, 2025 and December 31, 2024, respectively

Notes receivable, current, net of allowance for credit losses of $ 187 and $ — at September 30, 2025 and December 31, 2024, respectively

Accounts receivable, net of allowance for credit losses of $ 2,142 and $ 2,109 at March 31, 2026 and December 31, 2025, respectively

13,999 10,668

Notes receivable, current, net of allowance for credit losses of $ 196 and $ 214 at March 31, 2026 and December 31, 2025, respectively

Inventory 36,953 38,776

3 unchanged sentences

Property and equipment, net 9,034 9,795

Operating leases right-of-use assets, net 29,462 34,453

Operating lease right-of-use assets, net

25,191 27,050

Intangible assets, net 2,569 3,326

18 unchanged sentences

$ 0.001 par value;

100,000,000 shares authorized, 59,843,443 and 59,402,628 shares issued and outstanding as of September 30, 2025 and December 31, 2024, respectively

100,000,000 shares authorized, 60,090,905 and 60,090,905 shares issued and outstanding as of March 31, 2026 and December 31, 2025, respectively

Additional paid-in capital 377,383 377,128

6 unchanged sentences

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited, in thousands, except per share amounts)

Three Months Ended September 30, Nine Months Ended September 30,

2025 2024 2025 2024

(Unaudited, in thousands, except share and per share amounts)

Three Months Ended March 31,

Net sales $ 38,391 $ 35,703

4 unchanged sentences

Selling, general, and administrative 6,926 7,112

Estimated credit losses (recoveries) 98 272 353 ( 210 )

Estimated credit losses 67 92

Depreciation and amortization 1,611 3,585

Impairment loss — 220 — 220

Total operating expenses 15,005 19,581

Loss from operations ( 5,265 ) ( 9,874 )

Other income (expense):

Other expense — ( 50 ) — ( 13 )

Other income:

Interest income 324 497

Interest expense — — — ( 70 )

Total other income 324 497

Net loss before income taxes ( 4,941 ) ( 9,377 )

(Provision) benefit for income taxes ( 2 ) 43 ( 2 ) ( 50 )

Benefit for income taxes 19 —

Net loss $ ( 4,922 ) $ ( 9,377 )

7 unchanged sentences

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY

(Unaudited, in thousands)

Common Stock Treasury Stock Additional

(Unaudited, in thousands except shares)

Common Stock Additional

Paid-In Capital Accumulated Deficit Total

Stockholders' Equity

Shares Amount Shares Amount

Shares Amount

Balance as of December 31, 2025 60,090,905 $ 60 $ 377,128 $ ( 279,689 ) $ 97,499

Common stock issued for share-based compensation 84 — — — — — —

Common stock withheld for employee payroll taxes — — — — ( 60 ) — ( 60 )

Share-based compensation — — 255 — 255

1 unchanged sentence

Balance as of March 31, 2026 60,090,905 $ 60 $ 377,383 $ ( 284,611 ) $ 92,832

Common stock issued for share-based compensation 192 1 — — — — 1

Common stock withheld for employee payroll taxes — — — ( 52 ) — ( 52 )

Share-based compensation — — — 315 — 315

Common stock issued in connection with acquisitions

93 — — — 109 — 109

Net loss — — ( 4,811 ) ( 4,811 )

Balance as of June 30, 2025 59,772 $ 60 — $ — $ 376,492 $ ( 269,831 ) $ 106,721

Common stock issued for share based compensation 71 — — — — — —

Common stock withheld for employee payroll taxes — — — — ( 1 ) — ( 1 )

Share-based compensation — — — — 421 — 421

Net loss — — — — — ( 2,437 ) ( 2,437 )

Balance as of September 30, 2025 59,843 $ 60 — $ — $ 376,912 $ ( 272,268 ) $ 104,704

Common Stock Treasury Stock Additional

Common Stock Additional

Paid-In Capital Accumulated Deficit Total

Stockholders' Equity

Shares Amount Shares Amount

Shares Amount

Balance as of December 31, 2024 59,402,628 $ 59 $ 375,677 $ ( 255,643 ) $ 120,093

4 unchanged sentences

Balance as of March 31, 2025 59,487,477 $ 59 $ 376,120 $ ( 265,020 ) $ 111,159

Common stock issued for share-based compensation 181 — — — — — —

Common stock withheld for employee payroll taxes — — — — ( 99 ) — ( 99 )

Share-based compensation — — — — 654 — 654

Repurchase of common stock — — ( 1,739 ) ( 4,190 ) — — ( 4,190 )

Cancellation of common stock ( 800 ) ( 1 ) 800 1,874 — ( 1,873 ) —

Net loss — — — — — ( 5,896 ) ( 5,896 )

Balance as of June 30, 2024 60,888 $ 61 ( 939 ) $ ( 2,316 ) $ 374,737 $ ( 216,705 ) $ 155,777

Common stock issued for share based compensation 71 — — — — — —

Common stock withheld for employee payroll taxes — — — — ( 2 ) — ( 2 )

Share-based compensation — — — — 672 — 672

Repurchase of common stock — — ( 778 ) ( 1,847 ) — — ( 1,847 )

Cancellation of common stock ( 1,717 ) ( 2 ) 1,717 4,163 — ( 4,161 ) —

Net loss — — — — — ( 11,435 ) ( 11,435 )

Balance as of September 30, 2024 59,242 $ 59 — $ — $ 375,407 $ ( 232,301 ) $ 143,165

The accompanying notes are an integral part of these Condensed Consolidated Financial Statements.

3 unchanged sentences

(Unaudited, in thousands)

Nine Months Ended September 30,

Three Months Ended March 31,

Cash flows from operating activities:

Net loss $ ( 4,922 ) $ ( 9,377 )

Adjustments to reconcile net loss to net cash used in operating activities:

Adjustments to reconcile net loss to net cash and cash equivalents used in operating activities:

Depreciation and amortization 1,611 3,585

Share-based compensation 255 503

Estimated credit losses (recoveries) 353 ( 210 )

Estimated credit losses 67 92

Loss on asset disposition 22 658

Change in value of marketable securities ( 133 ) ( 234 )

Impairment loss on operating lease right-of-use assets — 220

Changes in operating assets and liabilities, net of acquisitions:

7 unchanged sentences

Sales tax payable ( 32 ) 96

Other ( 36 ) —

Net cash and cash equivalents used in operating activities ( 5,048 ) ( 3,829 )

Cash flows from investing activities:

Acquisitions ( 1,013 ) —

Purchase of marketable securities ( 4,718 ) ( 7,186 )

2 unchanged sentences

Proceeds from disposals of assets 58 15

Net cash and cash equivalents provided by investing activities 7,245 6,717

Net cash and cash equivalents (used in) provided by investing activities

( 3,679 ) 9,160

Cash flows from financing activities:

Common stock withheld for employee payroll taxes — ( 60 )

Common stock repurchased — ( 6,036 )

Net cash and cash equivalents used in financing activities — ( 60 )

Net decrease in cash and cash equivalents ( 116 ) ( 2,321 )

Net (decrease) increase in cash and cash equivalents

( 8,727 ) 5,271

Cash and cash equivalents at the beginning of period 30,406 27,471

1 unchanged sentence

Supplemental cash flow disclosures and non-cash investing and financing transactions:

Cash paid for income taxes $ 203 $ 44

Right-of use assets obtained in exchange for new or modified operating lease liabilities $ 1,049 $ 3,506

Fair value of common stock issued in business combination $ 109 $ —

Fair value of contingent consideration $ 83 $ —

Cash paid for interest $ — $ 70

Cancellation of common stock $ — $ 6,036

Purchase of property and equipment in accounts payable and accrued liabilities $ 85 $ 5

The accompanying notes are an integral part of these Condensed Consolidated Financial Statements.

2 unchanged sentences

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

September 30, 2025

March 31, 2026

GrowGeneration Corp.

4 unchanged sentences

and its Storage Solutions segment, composed of the Company's benching, racking, and storage solutions business.

As of September 30, 2025, GrowGeneration has 24 retail locations across 11 states in the U.S.

As of March 31, 2026, GrowGeneration has 19 retail locations across 9 states in the U.S.

The Company also operates an online superstore at growgeneration.com, as well as a wholesale distribution business for resellers and mass-market retailers, and a benching, racking, and storage solutions business, Mobile Media or MMI.

1 unchanged sentence

The accompanying interim unaudited Condensed Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("U.S.

GAAP") and the rules and regulations of the Securities and Exchange Commission ("SEC").

GAAP") and the applicable rules and regulations of the Securities and Exchange Commission ("SEC").

Accordingly, they do not include all of the information and notes required by U.S.

14 unchanged sentences

In addition to the accounting pronouncements discussed below, no other new accounting pronouncement issued or effective during the fiscal year had or is expected to have a material effect on the Company's Condensed Consolidated Financial Statements or disclosures.

Recently Issued Accounting Pronouncements Not Yet Adopted

In December 2023, the FASB issued ASU No.

2023-09, Income Taxes (Topic 740)—Improvements to income tax disclosures ("ASU 2023-09"), expanding the disclosures requirement for income taxes primarily by requiring more detailed disclosure for income taxes paid and the effective tax rate reconciliation.

Recently Adopted Accounting Pronouncements

In July 2025, the FASB issued ASU No.

2025-05, Financial Instruments—Credit Losses (Topic 326)—Measurement of Credit Losses for Accounts Receivable and Contract Assets ("ASU 2025-05"), which provides a practical expedient to measure credit losses on accounts receivable and contract assets.

ASU 2025-05 is effective for annual periods beginning after December 15, 2025.

Early adoption is permitted, and adoption of ASU 2023-09 can be applied prospectively or retrospectively.

The Company is currently evaluating the impact of this standard and will adopt this guidance in the fourth quarter of 2025 to provide additional disclosures as required.

Early adoption of ASU 2025-05 is permitted and should be applied prospectively.

The Company adopted ASU 2025-05 prospectively as of January 1, 2026 and adoption of the standard did not have a material impact on the Company's Condensed Consolidated Financial Statements and related disclosures.

In September 2025, the FASB issued ASU No.

2025-06, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40)—Targeted Improvements to the Accounting for Internal-Use Software ("ASU 2025-06"), which amends current guidance for capitalizing internal use software costs by removing all references to prescriptive and sequential software development stages to better align with current iterative development methods.

ASU 2025-06 is effective for interim and annual

GROWGENERATION CORP.

1 unchanged sentence

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

September 30, 2025

March 31, 2026

periods beginning after December 15, 2027.

Early adoption is permitted as of the beginning of an annual reporting period, and ASU 2025-06 can be applied prospectively, retrospectively, or on a modified transition approach.

The Company adopted ASU 2025-06 prospectively as of January 1, 2026 and adoption of this standard did not have a material impact on the Company's Condensed Consolidated Financial Statements and related disclosures.

Recently Issued Accounting Pronouncements Not Yet Adopted

In November 2024, the FASB issued ASU No.

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The Company is currently evaluating the impact of this standard.

In July 2025, the FASB issued ASU No.

ASU 2025-05 is effective for annual periods beginning after December 15, 2025.

Early adoption of ASU 2025-05 is permitted and should be applied prospectively.

The Company is currently evaluating the impact of this standard and expects to adopt the standard for the annual period beginning January 1, 2026.

In September 2025, the FASB issued ASU No.

ASU 2025-06 is effective for interim and annual periods beginning after December 15, 2027.

Early adoption is permitted as of the beginning of an annual reporting period, and ASU 2025-06 can be applied prospectively, retrospectively, or on a modified transition approach.

The Company is currently evaluating the impact of this standard and expects to adopt the standard prospectively for the annual period beginning January 1, 2026.

In December 2025, the FASB issued ASU No.

2025-11, Interim Reporting (Topic 270)—Narrow-Scope Improvements (“ASU 2025-11”), which is intended to clarify interim disclosure requirements and the applicability of Topic 270.

ASU 2025-11 also addresses the form and content of such financial statements, interim disclosures requirements, and establishes a principle under which an entity must disclose events since the end of the last annual reporting period that have a material impact on the entity.

ASU 2025-11 is effective for interim reporting periods within annual reporting periods beginning after December 15, 2027.

Early adoption is permitted, and adoption of ASU 2025-11 can be applied either prospectively or retrospectively.

The Company is currently evaluating the impact of this standard.

FAIR VALUE MEASUREMENTS

12 unchanged sentences

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

September 30, 2025

March 31, 2026

The carrying amounts of cash and cash equivalents, accounts receivable, accounts payable, and all other current liabilities approximate fair values due to their short-term nature.

1 unchanged sentence

The marketable securities are classified as available-for-sale and are carried at fair value based on quoted market prices.

Changes in fair value of marketable securities, principally derived from accretion of discounts, were $ 0.2 million and $ 0.6 million for the three and nine months ended September 30, 2025, respectively, and $ 0.3 million and $ 1.0 million for the three and nine months ended September 30, 2024, respectively.

Changes in fair value of marketable securities, principally derived from accretion of discounts, were $ 0.1 million and $ 0.2 million for the three months ended March 31, 2026 and 2025, respectively.

Changes in fair value of marketable securities are included in Interest income on the Condensed Consolidated Statements of Operations.

Level September 30,

Level March 31,

2026 December 31,

1 unchanged sentence

Marketable securities

Treasury and agency securities

2 $ 3,039 $ 3,014

Corporate bonds

2 16,401 12,644

Total marketable securities

$ 19,440 $ 15,658

REVENUE RECOGNITION

8 unchanged sentences

$ 10,668 $ 4,015

Balance as of September 30, 2025

Increase $ 5,619 $ 1,799

Balance as of March 31, 2026

Increase (decrease) $ 3,331 $ ( 1,372 )

Balance as of January 1, 2025

$ 7,361 $ 2,404

Balance as of September 30, 2024

Increase (decrease) $ 1,429 $ ( 2,728 )

Of the total amount of customer deposits as of January 1, 2025, $ 0.1 million and $ 1.7 million was reported as revenue during the three and nine months ended September 30, 2025, respectively.

Of the total amount of customer deposits as of January 1, 2024, $ 0.4 million and $ 4.4 million was reported as revenue during the three and nine months ended September 30, 2024, respectively.

Notes receivable at September 30, 2025 and December 31, 2024 were as follows:

September 30,

Balance as of March 31, 2025

Decrease $ ( 425 ) $ ( 54 )

Of the total amount of customer deposits as of January 1, 2026, $ 2.8 million was reported as net sales during the three months ended March 31, 2026.

Of the total amount of customer deposits as of January 1, 2025, $ 1.1 million was reported as net sales during the three months ended March 31, 2025.

Notes receivable at March 31, 2026 and December 31, 2025 were as follows:

2026 December 31,

2 unchanged sentences

Notes receivable, net $ 495 $ 507

During the nine months ended September 30, 2024, the Company received a $ 0.3 million settlement related to a $ 1.5 million note receivable, which had been fully reserved as of December 31, 2023.

Refer to Note 13, Commitments and Contingencies, for additional information regarding the settlement.

GROWGENERATION CORP.

1 unchanged sentence

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

September 30, 2025

March 31, 2026

PROPERTY AND EQUIPMENT

Property and equipment at September 30, 2025 and December 31, 2024 consisted of the following:

September 30,

Property and equipment at March 31, 2026 and December 31, 2025 consisted of the following:

2026 December 31,

8 unchanged sentences

Property and equipment, net $ 9,034 $ 9,795

Depreciation and amortization expense related to property and equipment was $ 1.1 million and $ 4.3 million for the three and nine months ended September 30, 2025, respectively, and $ 3.3 million and $ 7.3 million for the three and nine months ended September 30, 2024, respectively.

In conjunction with the Company's restructuring activities as discussed in Note 16, Restructuring, the Company retired certain capitalized software assets during the nine months ended September 30, 2025.

Depreciation and amortization expense related to property and equipment was $ 0.9 million and $ 2.0 million for the three months ended March 31, 2026 and 2025, respectively.

Depreciation and amortization expense during the three months ended March 31, 2025 included the effects of the reassessment and shortening of estimated useful lives of certain capitalized software assets in conjunction with the Company's restructuring activities as discussed in Note 14, Restructuring.

Depreciation and amortization expense related to these capitalized software assets was $ 0.8 million for the three months ended March 31, 2025.

These capitalized software assets became fully amortized and were retired during the three months ended March 31, 2025.

Refer to Note 14, Restructuring, for additional information on the restructuring activities.

During the year ended December 31, 2025, the Company concluded that a closed retail location, wholly-owned by the Company, met the criteria for classification as held-for-sale.

Property and equipment in the above table includes building and land amounts classified as held-for-sale with a carrying value of $ 0.3 million.

As of March 31, 2026, the Company continues to actively market the asset and expects to sell the asset within one year.

GOODWILL AND INTANGIBLE ASSETS

2 unchanged sentences

Balance as of December 31, 2025 $ 475 $ 1,605 $ 2,080

Additions & measurement period adjustments 447 — 447

Balance as of September 30, 2025 $ 447 $ 1,605 $ 2,052

Accumulated impairment for goodwill related entirely to the Cultivation and Gardening segment and totaled $ 131.9 million as of September 30, 2025 and December 31, 2024.

The changes in intangible assets by segment for the nine months ended September 30, 2025 were as follows:

Acquisitions and measurement period adjustments — — —

Balance as of March 31, 2026 $ 475 $ 1,605 $ 2,080

Accumulated impairment for goodwill related entirely to the Cultivation and Gardening segment and totaled $ 131.9 million as of March 31, 2026 and December 31, 2025.

The changes in intangible assets by segment for the three months ended March 31, 2026 were as follows:

Cultivation and Gardening Storage Solutions Total

1 unchanged sentence

Amortization ( 582 ) ( 175 ) ( 757 )

Acquisitions 470 — 470

Balance as of September 30, 2025 $ 3,281 $ 1,372 $ 4,653

On June 6, 2025, the Company purchased substantially all of the assets of Hydro Generation Inc.

(referred to as "Viagrow"), a domestic supplier of gardening and hydroponic equipment.

The acquisition related intangible assets in the preceding table represent the preliminary estimated fair values of goodwill and identified intangible assets.

As of September 30, 2025, the Company has not finalized its preliminary purchase price allocation.

Refer to Note 12, Acquisitions, for additional information regarding the Viagrow acquisition.

Balance as of March 31, 2026 $ 1,548 $ 1,021 $ 2,569

GROWGENERATION CORP.

1 unchanged sentence

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

September 30, 2025

March 31, 2026

Intangible assets on the Condensed Consolidated Balance Sheets consisted of the following:

September 30, 2025 December 31, 2024

March 31, 2026 December 31, 2025

Amount Accumulated

8 unchanged sentences

Total $ 43,194 $ ( 40,625 ) $ 2,569 $ 43,194 $ ( 39,868 ) $ 3,326

Amortization expense was $ 1.5 million and $ 4.6 million for the three and nine months ended September 30, 2025, respectively, and $ 1.7 million and $ 5.0 million for the three and nine months ended September 30, 2024, respectively.

Future amortization expense as of September 30, 2025 was as follows:

Amortization expense was $ 0.8 million and $ 1.5 million for the three months ended March 31, 2026 and 2025, respectively.

Future amortization expense as of March 31, 2026 was as follows:

2026 (remainder of the year) $ 1,310

1 unchanged sentence

Total $ 2,569

For the nine months ended September 30, 2025 and 2024, the effective tax rate was 0.0 % and 0.2 %, respectively.

The effective tax rate for each of the nine months ended September 30, 2025 and 2024 was lower than the U.S.

For the three months ended March 31, 2026 and 2025, the effective tax rate was ( 0.4 )% and 0.0 %, respectively.

The effective tax rate for each of the three months ended March 31, 2026 and 2025 was lower than the U.S.

federal statutory rate of 21.0% primarily due to the Company's valuation allowance against deferred tax assets.

As of September 30, 2025, the Company concluded that its deferred tax assets are not expected to be realizable, based on positive and negative evidence, therefore it has assigned a full valuation allowance against them.

On July 4, 2025, the “One Big Beautiful Bill Act”, or “OBBBA”, was signed into law, making several provisions of the Tax Cuts and Jobs Act permanent.

Under Accounting Standards Codification Topic 740, Income Taxes , the effects of changes in tax laws must be recognized in the period of enactment.

While the Company continues to evaluate the potential impact of OBBBA, the provisions of the new law have not had and are not expected to have a material impact on the Company’s consolidated financial statements.

No adjustments have been made to the financial statements as of September 30, 2025 as a result of the OBBBA.

As of March 31, 2026, the Company concluded that its deferred tax assets are not expected to be realizable, based on positive and negative evidence, therefore it has assigned a full valuation allowance against them.

The right-of-use assets and corresponding liabilities related to the Company's operating leases were as follows:

September 30,

2026 December 31,

Operating leases right-of-use assets, net $ 29,462 $ 34,453

Current maturities of operating lease liability $ 6,778 $ 7,398

Operating lease liability, net of current maturities 25,139 29,633

Total lease liability $ 31,917 $ 37,031

GROWGENERATION CORP.

AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

September 30, 2025

Operating lease right-of-use assets, net

$ 25,191 $ 27,050

Current maturities of operating lease liabilities

$ 5,831 $ 6,455

Operating lease liabilities, net of current maturities

21,627 23,022

Total lease liabilities

$ 27,458 $ 29,477

The weighted-average remaining lease terms and weighted-average discount rates for operating leases were as follows:

September 30,

Weighted average remaining lease term 4.8 years 5.4 years

Weighted average discount rate 6.1 % 6.2 %

GROWGENERATION CORP.

AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2026

The components of lease costs were as follows:

Three Months Ended September 30, Nine Months Ended September 30,

2025 2024 2025 2024

Three Months Ended March 31,

Operating lease costs $ 2,011 $ 2,292

3 unchanged sentences

Total operating lease costs $ 2,033 $ 2,153

Future maturities of the Company's operating lease liabilities and receipts from subleases as of September 30, 2025 were as follows:

Future maturities of the Company's operating lease liabilities and receipts from subleases as of March 31, 2026 were as follows:

Lease Payments Sublease Receipts

7 unchanged sentences

imputed interest ( 4,177 )

Operating lease liability as of September 30, 2025

Operating lease liability as of March 31, 2026

Supplemental and other information related to leases was as follows:

Nine Months Ended September 30,

Three Months Ended March 31,

Cash paid for amounts included in the measurement of lease liabilities:

Operating cash flow from operating leases $ 2,018 $ 2,358

GROWGENERATION CORP.

AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

September 30, 2025

EARNINGS PER SHARE

The following table sets forth the composition of the weighted average shares (denominator) used in the basic and diluted loss per share computation for the three and nine months ended September 30, 2025 and 2024:

Three Months Ended September 30, Nine Months Ended September 30,

2025 2024 2025 2024

The following table sets forth the composition of the weighted average shares (denominator) used in the basic and diluted loss per share computation for the three months ended March 31, 2026 and 2025:

Three Months Ended March 31,

Net loss $ ( 4,922 ) $ ( 9,377 )

1 unchanged sentence

Effect of dilutive outstanding restricted stock units and stock options

Adjusted weighted average shares outstanding, diluted

Weighted average shares outstanding, diluted

60,090,905 59,441,330

2 unchanged sentences

$ ( 0.08 ) $ ( 0.16 )

Diluted loss per share calculations for the three and nine months ended September 30, 2025 excluded 1.3 million and 1.4 million non-vested restricted stock units, respectively.

In addition, for the nine months ended September 30, 2025, 8 thousand shares of common stock issuable upon exercise of stock options were excluded that would have been anti-dilutive.

Diluted loss per share calculations for the three and nine months ended September 30, 2024 excluded 0.7 million and 0.8 million non-vested restricted stock units, respectively.

In addition, for each of the three and nine months ended September 30, 2024, 0.5 million shares of common stock issuable upon exercise of stock options that would have been anti-dilutive.

Diluted loss per share calculations for the three months ended March 31, 2026 and 2025 excluded 1.1 million and 1.4 million non-vested restricted stock units that would have been anti-dilutive, respectively.

In addition, diluted loss per share calculations for the three months ended March 31, 2025, excluded 17 thousand shares of common stock issuable upon exercise of stock options that would have been anti-dilutive.

GROWGENERATION CORP.

AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2026

SHARE-BASED PAYMENTS

The Company maintains a long-term incentive plan, the Second Amended and Restated 2018 Equity Incentive Plan (the "2018 Equity Incentive Plan"), for employees, non-employee members of its Board of Directors (the "Board"), and consultants.

The 2018 Equity Incentive Plan allows the Company to grant equity-based compensation awards, including stock options, stock appreciation rights, performance share units, restricted stock units, restricted stock awards, common stock warrants, or a combination of awards (collectively, "share-based awards").

The Company accounts for share-based payments through the measurement and recognition of compensation expense for share-based awards made to employees, non-employee members of the Board, and consultants of the Company, including stock options and restricted stock units.

The Company recorded share-based compensation expense of $ 0.4 million and $ 1.2 million in the three and nine months ended September 30, 2025, respectively, and $ 0.7 million and $ 2.1 million in the three and nine months ended September 30, 2024, respectively.

The Company maintains a long-term incentive plan, the Second Amended and Restated 2018 Equity Incentive Plan (collectively with all amendments referred to as the "2018 Plan"), for employees, non-employee members of its Board of Directors (the "Board"), and consultants.

The 2018 Plan, which is administered by the Board, allows the Company to grant equity-based compensation awards, including stock options, stock appreciation rights, performance share units, restricted stock units, restricted stock awards, common stock warrants, or a combination of awards (collectively, "share-based awards").

The Board also has broad authority to determine the terms and conditions of each option or other kind of equity award, adopt, amend and rescind rules and regulations for the administration of the 2018 Plan and amend or modify outstanding options, grants and awards.

The Company accounts for share-based payments through the measurement and recognition of compensation expense for share-based awards, primarily restricted stock units, made to employees, non-employee members of the Board, and consultants of the Company.

The Company recorded share-based compensation expense of $ 0.3 million and $ 0.5 million in the three months ended March 31, 2026 and 2025, respectively.

Restricted Stock Units

2 unchanged sentences

Restricted stock units are valued using the market value on the grant date.

GROWGENERATION CORP.

AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

September 30, 2025

Restricted stock unit activity for the nine months ended September 30, 2025 is presented in the following table:

Restricted stock unit activity for the three months ended March 31, 2026 is presented in the following table:

Units Weighted Average Grant Date Fair Value

Nonvested as of December 31, 2025

1,045,584 $ 2.01

Granted 80,000 $ 1.27

Vested ( 441 ) $ 2.56

Forfeited ( 25,000 ) $ 3.35

Nonvested as of September 30, 2025

As of September 30, 2025, the Company had approximately $ 2.0 million of unrecognized share-based compensation related to restricted stock units, which is expected to be recognized over a weighted average period of approximately 2.2 years.

During the nine months ended September 30, 2024, 672 thousand restricted stock units were granted at a weighted average grant date fair value of $ 2.29 .

Performance Stock Units

During the nine months ended September 30, 2025, the Board granted 90 thousand short-term, performance stock units with a weighted average grant date fair value of $ 0.91 to its named executive officers under the 2018 Equity Incentive Plan.

The number of shares issuable as a result of the performance stock units vesting ranges from 0 % and 125 % and is determined based on Company-specific net sales targets to be achieved for fiscal year 2025 as well as service conditions.

Although no awards vest until the Company attains the performance conditions described above, compensation will be recorded based on an assessment of the probability of meeting the performance conditions.

During the nine months ended September 30, 2025, the Company concluded that the probability of attaining the performance conditions under the awards to be remote.

Therefore, no expense was recognized related to the performance stock units.

If the performance conditions are probable of being achieved, the Company will begin recognizing the associated non-cash, share-based compensation expense.

Stock Options

Stock option activity for the nine months ended September 30, 2025 is presented in the following table:

Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Term (Years) Weighted Average Grant Date Fair Value

Outstanding as of December 31, 2024

Nonvested as of March 31, 2026

1,100,584 $ 1.92

Granted — — — —

Exercised — — — —

Forfeited or expired ( 16 ) 4.63 — 2.56

Outstanding as of September 30, 2025

Vested and exercisable as of September 30, 2025

During the three months ended March 31, 2025, 244 thousand restricted stock units were granted at a weighted average grant date fair value of $ 1.26 .

As of March 31, 2026, the Company had approximately $ 1.5 million of unrecognized share-based compensation related to restricted stock units, which is expected to be recognized over a weighted average period of approximately 1.8 years.

STOCKHOLDERS' EQUITY

On March 20, 2024, the Board authorized a share repurchase program, whereby the Company could repurchase up to $ 6.0 million worth of its common stock in open market transactions pursuant to Rule 10b-18 of the Exchange Act and a 10b5-1 trading plan.

The program began on April 1, 2024 and as of December 31, 2024, the Company completed all purchases available under the stock repurchase program.

This share repurchase program was intended to enhance long-term shareholder value.

The program did not obligate the Company to acquire any specific number of shares or to acquire any shares over any specific period of time.

The timing and amount of any repurchases was dependent upon factors such as the stock price, trading

GROWGENERATION CORP.

AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

September 30, 2025

volumes, market conditions, and regulatory requirements.

The stock repurchase program could be amended, suspended, or discontinued at any time by the Company.

During the three and nine months ended September 30, 2024, the Company repurchased 0.8 million and 2.5 million shares of common stock at an average price of $ 2.36 and $ 2.38 per share, respectively, exclusive of incremental direct costs.

The Company recognized the common stock repurchased as treasury stock at the amount paid to repurchase its shares, including the incremental direct costs to repurchase the common stock, as a reduction to stockholders' equity on the Condensed Consolidated Balance Sheets.

The Company retired 1.7 million and 2.5 million shares of treasury stock under the repurchase program in the three and nine months ended September 30, 2024, respectively.

The retirement of treasury stock was recognized as a deduction from common stock for the shares' par value and any excess cost over par value was recognized as a deduction from retained earnings.

Treasury stock is retired on a first in, first out basis.

The Company retired all shares of treasury stock acquired under the share repurchase program during the year ended December 31, 2024.

The shares were returned to the status of authorized but unissued shares.

On June 6, 2025, the Company purchased substantially all of the assets of Viagrow, a domestic supplier of gardening and hydroponic equipment.

The acquisition further diversifies the Company's home gardening and hydroponic gardening proprietary brand product offerings as well as expands the Company's outreach to significant new customers through relationships with major home improvement mass-market retailers and e-commerce platforms.

The total consideration for the purchase of Viagrow was $ 1.2 million including cash paid and common stock issued on the date of acquisition, with certain additional amounts to be paid in future periods.

The preliminary estimated purchase price includes deferred equity consideration to be issued upon settling any discrepancies of net assets acquired, and contingent consideration to be paid in cash over three years, dependent on the achievement of certain performance goals.

During the three months ended September 30, 2025, the preliminary purchase price allocation was adjusted, resulting in a decrease to intangible assets and an increase to acquired goodwill of $ 0.4 million, which represents the expected value of organic growth and an opportunity for the Company to expand into a new market.

As of September 30, 2025, the Company has not finalized its preliminary purchase price allocation.

The preliminary purchase price allocation may be adjusted as a result of the finalization of the purchase price allocation procedures related to the assets acquired and liabilities assumed.

Measurement period adjustments are recognized in the reporting period in which adjustments are determined and calculated as if the accounting had been completed at the acquisition date.

The final fair value determination of the assets acquired and liabilities assumed will be completed prior to one year from the transaction completion.

The table below details the consideration paid, and the preliminary estimated allocation of the purchase price to the acquired net assets during the nine months ended September 30, 2025.

Consideration

Common stock 109

Contingent consideration 83

Deferred equity consideration 23

Total consideration 1,228

Assets and liabilities acquired

Inventory 276

Prepaids and other current assets 10

Property and equipment 41

Intangible assets 470

Customer deposits ( 16 )

Total $ 1,228

GROWGENERATION CORP.

AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

September 30, 2025

The following table represents the preliminary estimates of the fair values of identified intangible assets and their related estimated remaining useful lives.

Estimated Fair Value Estimated Useful Life

Customer relationships $ 470 9.0 years

The following table represents the revenue and earnings included in the Condensed Consolidated Statement of Operations from the date of acquisition for the three and nine months ended September 30, 2025.

Three Months Ended Nine Months Ended

September 30, 2025 September 30, 2025

Net sales $ 353 $ 475

Net income $ 63 $ 88

The following table represents the pro forma Condensed Consolidated Statement of Operations as if the acquisition was completed on January 1, 2024.

Three Months Ended September 30, Nine Months Ended September 30,

2025 2024 2025 2024

Net sales $ 47,254 $ 50,534 $ 125,194 $ 153,695

Net loss $ ( 2,437 ) $ ( 11,443 ) $ ( 16,323 ) $ ( 26,116 )

The pro forma financial information is presented for informational purposes only and is not indicative of the results of operations that would have been achieved if the Viagrow acquisition had been consummated as of the beginning of the periods presented or of results that may occur in the future.

On February 24, 2026, the Board authorized a share repurchase program, whereby the Company could repurchase up to $ 10.0 million worth of its common stock in open market transactions pursuant to Rule 10b-18 of the Exchange Act and a 10b5-1 trading plan.

Repurchases under the program can commence on April 24, 2026 and may continue for up to two years .

The program does not obligate the Company to acquire any specific number of shares or to acquire any shares over any specific period of time.

The timing and amount of any repurchases is dependent upon factors such as the stock price, trading volumes, market conditions, and regulatory requirements.

The stock repurchase program may be amended, suspended, or discontinued at any time.

COMMITMENTS AND CONTINGENCIES

1 unchanged sentence

From time to time, the Company has been and may again become involved in legal proceedings arising in the ordinary course of its business, including the initiation and defense of proceedings related to contract and employment disputes.

It is the Company's opinion that these claims individually and in the aggregate are not expected to have a material adverse effect on its financial condition, results of operations or cash flows.

In December 2021, the Company was sued in the U.S.

District Court for the Southern District of Texas related to a Promissory Note & Asset Acquisition Rights Option ("Note & Option") with TGC Systems, LLC ("Total Grow").

The case was dismissed and the parties submitted the matter to arbitration pursuant to the arbitration clause of the Note & Option.

Among other claims, Total Grow alleged that the Company was liable to Total Grow for failing to consummate the acquisition of Total Grow by the Company.

The Company asserted counterclaims for repayment of $ 1.5 million in principal loaned by the Company to Total Grow pursuant to the Note & Option, plus interest and certain costs.

In July 2023, the arbitrator rendered an arbitration award denying all of Total Grow's claims and defenses and awarding the Company more than $ 2.0 million in total, consisting of principal, interest, and certain costs.

Total Grow voluntarily filed for bankruptcy in October 2023.

In February 2024, the Company received $ 0.3 million from the bankruptcy proceedings, which it recorded as a recovery on the $ 1.5 million Note & Option.

The remainder of the Note & Option, which were fully reserved, were written off during the nine months ended September 30, 2024.

There can be no assurance that future developments related to pending claims or claims filed in the future, whether as a result of adverse outcomes or as a result of significant defense costs, will not have a material effect on the Company's financial condition, results of operations or cash flows.

The Company believes that its assessment of contingencies is reasonable and that

In accordance

GROWGENERATION CORP.

1 unchanged sentence

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

September 30, 2025

the related accruals, in the aggregate, are adequate;

March 31, 2026

with ASC 450, Contingencies , the Company regularly evaluates the status of its legal proceedings and establishes a liability for litigation and loss contingencies when information related to those contingencies show both that it is probable that a loss has been incurred and the amount of the loss can be reasonably estimated.

Due to the unpredictable nature of litigation, the outcome of a litigation matter and the amount or range of potential loss at particular points in time is normally difficult to ascertain.

Legal and loss contingency accruals are recorded within Accrued liabilities on the Condensed Consolidated Balance Sheets and within Selling, general, and administrative expense in the Condensed Consolidated Statements of Operations.

During the year ended December 31, 2025 and the three months ended March 31, 2026, the Company has been engaged in two legal matters related to a California employment class action dispute and a vendor contract dispute.

As of March 31, 2026, the Company has recorded cumulative loss contingencies of approximately $ 1.6 million related to these matters.

No loss contingency accruals were recorded in the three months ended March 31, 2026 or March 31, 2025.

The Company continues to evaluate these matters and, while an additional loss is reasonably possible, the Company is unable to estimate a range of potential additional loss, if any.

It is the Company's opinion that the legal proceedings disclosed above, in addition to the other legal proceedings and claims in which the Company has been involved, individually and in the aggregate are not expected to have a material adverse effect on its financial condition, results of operations or cash flows.

The Company believes that its assessment of contingencies is reasonable and that the related accruals, in the aggregate, are adequate;

however, there can be no assurance that the final resolution of these matters will not have a material effect on the Company's financial condition, results of operations or cash flows.

1 unchanged sentence

In the ordinary course of its business, the Company makes certain indemnities under which it may be required to make payments in relation to certain transactions.

As of September 30, 2025, the Company did not have any liabilities associated with indemnities.

As of March 31, 2026, the Company did not have any liabilities associated with indemnities.

In addition, the Company, as permitted under Colorado law and in accordance with its amended and restated certificate of incorporation and amended and restated bylaws, in each case, as amended to date, indemnifies its officers and directors for certain events or occurrences, subject to certain limits, while the officer or director is or was serving at the Company's request in such capacity.

3 unchanged sentences

No such losses have been recorded to date.

RELATED PARTIES

The Company has engaged with a firm that employs an immediate family member of an officer of the Company as partner.

The firm provides certain legal services.

Amounts paid to that firm in total were $ 0.1 million and $ 0.2 million for the three and nine months ended September 30, 2025, respectively, and were $ 0.1 million and $ 0.2 million for the three and nine months ended September 30, 2024.

As of September 30, 2025 and December 31, 2024, there was an immaterial amount outstanding due to the firm.

The Company has two operating segments, each its own reportable segment, based on its major lines of business:

2 unchanged sentences

In addition to sales by operating segment, which represent the Company's principal lines of business, the chief operating decision maker ("CODM") evaluates the Company's operations by regularly reviewing sales by major product line, including proprietary brands, non-proprietary brands, and commercial fixtures, and by product type, including consumable and durable products.

Profit measures are evaluated for each reportable segment based on income from operations with identifiable expenses allocated to each reporting unit from which the expense line item was derived.

The profit measure that is evaluated for each reportable segment is based on income from operations with identifiable expenses allocated to each reporting unit from which the expense line item was derived.

The CODM compares actual results to prior year and current year budgeted income statements to identify areas for improvement and make capital allocation decisions.

4 unchanged sentences

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

September 30, 2025

March 31, 2026

Disaggregated revenue by segment is presented in the following tables.

Three Months Ended September 30, Nine Months Ended September 30,

Three Months Ended March 31,

Net sales 2026 2025

7 unchanged sentences

Total $ 38,391 $ 35,703

Three Months Ended September 30, Nine Months Ended September 30,

Three Months Ended March 31,

Net sales 2026 2025

7 unchanged sentences

Total $ 38,391 $ 35,703

Selected information by segment is presented in the following tables for the three and nine months ended:

Three Months Ended September 30, 2025

Cultivation & Gardening Storage Solutions Corporate Total

Net sales $ 38,374 $ 8,880 $ — $ 47,254

Cost of sales 29,373 5,025 — 34,398

Gross profit 9,001 3,855 — 12,856

Operating expenses

Store operations and other operational expenses:

Employee costs 2,292 680 — 2,972

Facilities 2,530 304 — 2,834

External service providers 69 15 — 84

Other segment items (1)

1,149 206 — 1,355

Total store operations and other operational expenses 6,040 1,205 — 7,245

Other operating expenses

Selling, general, and administrative — — 5,706 5,706

Estimated credit losses — — 98 98

Depreciation and amortization — — 2,649 2,649

Total operating expenses 6,040 1,205 8,453 15,698

Income (loss) from operations 2,961 2,650 ( 8,453 ) ( 2,842 )

Other income — — 407 407

Net income (loss) before income taxes

$ 2,961 $ 2,650 $ ( 8,046 ) $ ( 2,435 )

(1) Other segment items for each reportable segment include travel expenses, transaction fees, and other miscellaneous expenses.

(1) During the first quarter of 2026, the Company internally began viewing certain items' product type designations (i.e., consumable or durable) differently.

Comparative prior period disclosures have been reclassified to conform to the current period segment presentation.

GROWGENERATION CORP.

1 unchanged sentence

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

September 30, 2025

Nine Months Ended September 30, 2025

Cultivation & Gardening Storage Solutions Corporate Total

Net sales $ 102,146 $ 21,774 $ — $ 123,920

Cost of sales 77,076 12,687 — 89,763

Gross profit 25,070 9,087 — 34,157

Operating expenses

Store operations and other operational expenses:

Employee costs 7,433 2,119 — 9,552

Facilities 7,931 1,100 — 9,031

External service providers 411 31 — 442

Other segment items (1)

4,226 653 — 4,879

Total store operations and other operational expenses 20,001 3,903 — 23,904

Other operating expenses

Selling, general, and administrative — — 18,969 18,969

Estimated credit losses — — 353 353

Depreciation and amortization — — 8,921 8,921

Total operating expenses 20,001 3,903 28,243 52,147

Income (loss) from operations 5,069 5,184 ( 28,243 ) ( 17,990 )

Other income — — 1,367 1,367

Net income (loss) before income taxes

$ 5,069 $ 5,184 $ ( 26,876 ) $ ( 16,623 )

(1) Other segment items for each reportable segment include travel expenses, transaction fees, and other miscellaneous expenses.

Three Months Ended September 30, 2024

Cultivation & Gardening Storage Solutions Corporate Total

March 31, 2026

Selected disaggregated information by segment, including significant segment expenses, is presented in the following tables for the three months ended:

Three Months Ended March 31, 2026

Cultivation & Gardening Storage Solutions Total

Net sales $ 31,897 $ 6,494 $ 38,391

9 unchanged sentences

Total store operations and other operational expenses 5,079 1,322 6,401

Other operating expenses

Segment income from operations 2,089 1,250 3,339

Other corporate operating expenses

Selling, general, and administrative 6,926

1 unchanged sentence

Depreciation and amortization 1,611

Impairment loss — — 220 220

Total operating expenses 8,718 1,314 12,869 22,901

(Loss) income from operations ( 1,548 ) 2,326 ( 12,869 ) ( 12,091 )

Total other corporate expenses 8,604

Loss from operations ( 5,265 )

Other income 324

Net (loss) income before income taxes $ ( 1,548 ) $ 2,326 $ ( 12,256 ) $ ( 11,478 )

Net loss before taxes $ ( 4,941 )

(1) Other segment items for each reportable segment include travel expenses, transaction fees, and other miscellaneous expenses.

2 unchanged sentences

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

September 30, 2025

Nine Months Ended September 30, 2024

Cultivation & Gardening Storage Solutions Corporate Total

March 31, 2026

Three Months Ended March 31, 2025

Cultivation & Gardening Storage Solutions Total

Net sales $ 30,911 $ 4,792 $ 35,703

9 unchanged sentences

Total store operations and other operational expenses 7,369 1,423 8,792

Other operating expenses

Segment income from operations 535 380 915

Other corporate operating expenses

Selling, general, and administrative 7,112

Estimated credit recoveries — — ( 210 ) ( 210 )

Estimated credit losses 92

Depreciation and amortization 3,585

Impairment loss — — 220 220

Total operating expenses 26,906 3,970 34,756 65,632

Income (loss) from operations 1,525 5,194 ( 34,756 ) ( 28,037 )

Total other corporate expenses 10,789

Loss from operations ( 9,874 )

Other income 497

Net income (loss) before income taxes

$ 1,525 $ 5,194 $ ( 32,837 ) $ ( 26,118 )

Net loss before taxes $ ( 9,377 )

(1) Other segment items for each reportable segment include travel expenses, transaction fees, and other miscellaneous expenses.

4 unchanged sentences

The restructuring plan primarily included reductions in cost structure by closing and consolidating 12 redundant or underperforming retail locations, workforce reductions, and other operational improvements in inventory management, sales and marketing, and administrative activities.

The Company's restructuring and restructuring-related charges consisted of inventory disposal costs, retail location closure costs including related contract termination costs and fixed asset disposals, employee termination benefits, asset impairments including the impairment of operating lease right-of-use assets, and other associated costs.

The Company substantially completed its restructuring activities as of March 31, 2025.

Overall, the Company incurred aggregate restructuring and restructuring-related costs of $ 3.5 million, of which $ 1.1 million were incurred during the nine months ended September 30, 2025, and $ 2.1 million were incurred during the three and nine months ended September 30, 2024.

GROWGENERATION CORP.

1 unchanged sentence

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

September 30, 2025

March 31, 2026

The Company substantially completed its restructuring activities and had no remaining liability associated with restructuring costs as of March 31, 2025.

The Company incurred no costs related to restructuring activities during the three months ended March 31, 2026 and does not expect to incur significant additional restructuring and restructuring-related costs in future periods.

Overall, the Company incurred aggregate restructuring and restructuring-related costs of $ 3.5 million, of which $ 1.1 million were incurred during the three months ended March 31, 2025.

These costs are presented on the Condensed Consolidated Statements of Operations in the following table.

The Company does not expect to incur significant additional restructuring and restructuring-related costs in future periods.

Three Months Ended September 30, Nine Months Ended September 30,

2025 2024 2025 2024

Three Months Ended March 31,

Cultivation and Gardening segment:

Cost of sales (1)

$ — $ 1,039 $ — $ 1,039

Gross profit — ( 1,039 ) — ( 1,039 )

Store operations and other operational expenses (1)

— 658 765 658

Segment operating loss — ( 1,697 ) ( 765 ) ( 1,697 )

Restructuring costs in segment income from operations

Corporate expenses:

Selling, general, and administrative (2)

Impairment loss (4)

Other expense (5)

Total restructuring and restructuring-related charges $ ( 1,141 )

(1) Includes inventory disposal costs

(2) Costs consist primarily of property and equipment disposals, lease contract termination costs and employee termination benefits

(3) Costs consist of corporate operational and administrative contract terminations and employee termination benefits

(4) Consists of asset impairments for operating lease right-of-use assets

(5) Includes non-operating losses related to retail location closures

In conjunction with the Company's restructuring activities related to operational and administrative improvements, the Company reassessed and shortened the estimated useful life of certain capitalized software assets.

These capitalized software assets became fully amortized and were retired during the nine months ended September 30, 2025.

The liabilities associated with restructuring costs were included in Accrued liabilities and Payroll and payroll tax liabilities on the Condensed Consolidated Balance Sheets.

Activities related to liabilities incurred under the restructuring plan were as follows:

Retail Location Closures Termination Benefits Total

Balance as of January 1, 2025 $ 115 $ 9 $ 124

Additions 765 — 765

Payments and other adjustments ( 880 ) ( 9 ) ( 889 )

Balance as of September 30, 2025 $ — $ — $ —

(1) Costs consist primarily of property and equipment disposals and lease contract termination costs for previously closed retail locations

(2) Costs consist of corporate operational and administrative contract terminations

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements