Company: VREOF
Filing Date: 2025-03-11
Form Type: PREM14C
Source: 0001140361-25-008065
Chunk: 334

Company: Vireo Growth Inc.
Filing Date: 2025-03-11
Form: PREM14C
Chunk 334
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 those goods or services. In order to recognize revenue under ASU 2014-09, the Company applies the following five (5) steps:

| • | Identify a customer along with a corresponding contract; |

| • | Identify the performance obligation(s) in the contract to transfer goods or provide distinct services to a customer; |

| • | Determine the transaction price the Company expects to be entitled to in exchange for transferring promised goods or services to a customer; |

B-12

TABLE OF CONTENTS

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

| • | Allocate the transaction price to the performance obligation(s) in the contract; |

| • | Recognize revenue when or as the Company satisfies the performance obligation(s). |

Revenues consist of wholesale and retail sales of cannabis, which are generally recognized at a point in time when control over the goods have been transferred to the customer and is recorded net of sales discounts. Payment is typically due upon transferring the goods to the customer or within a specified time period permitted under the Company’s credit policy. Sales discounts were not material during the years ended December 31, 2024 and 2023. Revenue is recognized upon the satisfaction of the performance obligation. The Company satisfies its performance obligation and transfers control upon delivery and acceptance by the customer.

| (o) | Share-Based Compensation |

The Company has an equity-based compensation plan that allows for various awards, including restricted stock. The Company accounts for its share-based awards in accordance with ASC 718 Compensation – Stock Compensation(ASC 718), which requires fair value measurement on the grant date and recognition of compensation expensed for all share-based payment awards made to employees. The fair value of restricted stock is based upon the estimated value of the Company’s common shares on the date of grant. The fair value is expensed over the requisite service periods of the awards, net of estimated forfeitures, which is generally the performance period and the related amount is recognized in the Consolidated Statement of Income.

| (p) | Advertising Costs |

Advertising costs are charged to operations when incurred. Advertising expenses, included in sales and marketing expenses, was approximately $1,755,800 and $1,308,500 for the years ended December 31, 2024 and 2023, respectively.

| (q) | Related Party Transactions |

The Company follows FASB ASC subtopic 850-10, Related Party Disclosures, for the identification of related parties and disclosure of related party transactions. Pursuant to ASC