Company: VREOF
Filing Date: 2025-03-11
Form Type: PREM14C
Source: 0001140361-25-008065
Chunk: 352

Company: Vireo Growth Inc.
Filing Date: 2025-03-11
Form: PREM14C
Chunk 352
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 product sales; (2) wholesale product sales to distributors; and (3) subscriptions to the Arches software platform. Revenues for product sales and subscription services are recognized when control of these goods or services is transferred to customers in an amount that reflects the consideration expected to be received by the Company in exchange for those goods or services. The Company determines revenue recognition through the following steps:

| • | Identification of the contract, or contracts, with a customer |

| • | Identification of the performance obligations in the contract |

| • | Determination of the transaction price |

| • | Allocation of the transaction price to the performance obligations in the contract |

| • | Recognition of revenue when, or as, each performance obligation is satisfied |

The Company’s contracts with customers generally contain a single performance obligation. The Company’s contracts with customers consist of the following: Direct to Consumer Revenues Direct to consumer revenues contain one performance obligation – product transfer. Revenues from direct-to-consumer sales are recognized upon the satisfaction of performance obligations, which occurs when control of the good transfers to the customer, which generally occurs upon delivery of the product to the customer. Wholesale Revenues Wholesale revenues contain one performance obligation – product transfer. Revenues from product sales are recognized upon the satisfaction of performance obligations, which occurs when control of the good transfers to the customer, which generally occurs upon delivery of the product to the customer. Software Subscription Revenues The Company’s subscription arrangements generally do not provide customers with the right to take possession of the software supporting the platform and, as a result, are accounted for as service arrangements. Access to the Company’s platform represents a series of distinct services as the Company continually provides access to, and fulfills its obligation to, the end customer over the subscription term. The series of distinct services represents a single performance obligation that is satisfied over time.

B-31

TABLE OF CONTENTS

For the years ended December 31, 2024 and 2023, revenues by sales channel were as follows:

|                    |     |        2024 |     |        2023 |
| Direct-to-consumer |     | $39,937,299 |     | $33,523,256 |
| Wholesale          |     |   7,563,690 |     |   3,656,527 |
| Subscription       |     |           — |     |           — |
|                    |     | $47,500,989 |     | $37,179,783 |

For the years ended December 31,