Company: VREOF
Filing Date: 2025-03-21
Form Type: DEFM14C
Source: 0001140361-25-009815
Chunk: 333

Company: Vireo Growth Inc.
Filing Date: 2025-03-21
Form: DEFM14C
Chunk 333
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 have been prepared on the going concern basis, under the historical cost convention. Intercompany balances have been eliminated. The Company’s consolidated financial statements include Deep Roots Holdings, Inc. and its wholly-owned subsidiaries Deep Roots Harvest, Inc., Deep Roots Operating, Inc., and Deep Roots Aria Acqco, Inc.

| (b) | Cash |

Cash includes cash deposits in financial institutions and cash held at the Company’s facility and retail locations.

| (c) | Accounts Receivable and Allowance for Credit Losses |

Accounts receivable are recorded net of an allowance for credit losses. The Company estimates the allowance for credit losses based on existing contractual payments terms, actual payment patterns of its customers and individual customer circumstances. As of December 31, 2024 and 2023, the Company

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2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) estimated an allowance for credit losses accounts of approximately $48,900 and $23,000, respectively. The provision for credit loss expense was for $949,838 for the year ended December 31, 2024. There was no provision for credit losses recorded for the year ended December 31, 2023. The Company's accounts receivable is primarily due from wholesale customers. Credit is extended to customers based on an evaluation of each customer's creditworthiness and financial condition and collateral is not required. The Company maintains allowances for credit losses, returns and discounts. The Company evaluates the collectability of its accounts receivable based on a combination of prospective factors. The allowance for credit losses is based on the aging of such receivables and any known specific collectability exposures as well as financial stability of its customers. Accounts are written off when deemed uncollectible. It is reasonably possible that the Company's estimate of the allowance for credit losses will change.

| (d) | Inventories |

Inventories are primarily comprised of raw materials, internally produced work in process, and finished goods. Costs incurred during the production process are capitalized as incurred to the extent that cost is less than net realizable value. These costs include materials, labor and manufacturing overhead used in the production processes. Inventories of purchased finished goods and packing materials are initially valued at cost and subsequently at the lower of cost and net realizable value. Net realizable value is determined as the estimated selling price in the ordinary course of business less the estimated costs of completion and the estimated costs necessary to make the sale. Cost is determined using the weighted average cost