Company: VREOF
Filing Date: 2025-03-07
Form Type: PRE 14C
Source: 0001140361-25-007601
Chunk: 347

Company: Vireo Growth Inc.
Filing Date: 2025-03-07
Form: PRE 14C
Chunk 347
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 or less are not recorded on the consolidated balance sheet. Certain leases require payments for taxes, insurance, and maintenance and are considered non-lease components. The Company accounts for non-lease components separately. The Company determines if an arrangement is a lease at inception. The Company must consider whether the contract conveys the right to control the use of an identified asset. The Company leases certain business facilities from third parties under non-cancellable operating lease agreements that contain minimum rental provisions that expire through 2031. Some leases also contain renewal provisions and provide for rent abatement and escalating payments. The Company recorded $2,930,806 and $2,680,516 in operating lease expense, of which $1,049,014 and $976,873 was included in the cost of goods sold for the years ended December 31, 2024 and 2023, respectively. Other information related to operating leases as of and for the years ended December 31, 2024 and 2023 were as follows:

|                                              |     | 2024 |     | 2023 |
| Weighed average remaining lease term - years |     | 5.89 |     | 6.69 |
| Weighed average discount rate                |     | 6.0% |     | 6.0% |

Maturities of lease liabilities for operating lease as of December 31, 2024 were as follows:

| Year Ending December 31,         
 2025                             |     | Maturities of Lease Liabilities 
                      $4,059,956 |
|:---------------------------------|:----|--------------------------------:|
| 2026                             |     |                       3,974,293 |
| 2027                             |     |                       4,092,213 |
| 2028                             |     |                       3,902,489 |
| 2029                             |     |                       4,002,286 |
| Thereafter                       |     |                       3,874,699 |
| Total Lease Payments             |     |                      23,905,936 |
| Less: Imputed Interest           |     |                      -3,856,253 |
| Present Value of Lease Liability |     |                     $20,049,683 |

| 13. | RELATED PARTY TRANSACTIONS |

Parties are considered to be related if one party has the ability, directly or indirectly, to control the other party or exercise significant influence over the other party in making financial and operating decisions.