Company: VREOF
Filing Date: 2025-03-07
Form Type: PRE 14C
Source: 0001140361-25-007601
Chunk: 214

Company: Vireo Growth Inc.
Filing Date: 2025-03-07
Form: PRE 14C
Chunk 214
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,163 |     | 107% |
| Total revenue     |     |              $47,500,989 |     | $37,179,783 |     | 10,321,206 |     | 28%  |

Cost of Sales and Gross Profit Cost of sales are determined from costs related to the cultivation and processing of cannabis and cannabis-derived products as well as the cost of finished goods inventory purchased from third parties. Cost of sales for the year ended December 31, 2024 were $18,752,885, an increase of $1,406,252 compared to the year ended December 31, 2023 of $17,346,633, driven most significantly by the increase in product costs associated with the increase in revenues year over year. Gross profit for the year ended December 31, 2024 was $28,748,104, representing a gross margin of 61%. This is compared to gross profit for the year ended December 31, 2023 of $19,833,150, or a 53% gross margin. The increase in gross margin was driven by the increased sales from internally generated products which carry higher margins, and increased yields per square foot of canopy at the cultivation site.

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Total Operating Expenses Total operating expenses for the year ended December 31, 2024 were $16,932,100, an increase of $2,634,107 compared to total operating expenses of 14,297,993 for the year ended December 31, 2023. The increase in total operating expenses was attributable to increases in headcount to accommodate increased delivery and dispensary sales. Income from Operations Income from operations for the year ended December 31, 2024 was $11,816,004, an increase of $6,280,847 compared to income from operations of $5,535,157 for the year ended December 31, 2023. Total Other Expense, Net Total other expense, net for the year ended December 31, 2024 was $1,604,418, a decrease of $815,094 compared to other expense, net of $2,419,512 for the year ended December 31, 2023. The decrease in other expense, net is primarily attributable to a decrease in interest expense driven by a principal repayment of debt that occurred during the year ended December 31, 2024. Provision for Income Taxes Income tax expense is recognized based on the expected tax payable on