Company: VREOF
Filing Date: 2025-03-11
Form Type: PREM14C
Source: 0001140361-25-008065
Chunk: 351

Company: Vireo Growth Inc.
Filing Date: 2025-03-11
Form: PREM14C
Chunk 351
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 instrument is considered indexed to the Company’s stock, the Company analyzes additional equity classification requirements. When the requirements are met, the instrument is recorded as part of the Company’s equity, initially measured based on its relative fair value with no subsequent re-measurement. When the equity classification requirements are not met, the instrument is recorded as an asset or liability and is measured at fair value with subsequent changes in fair value recorded in earnings.

#### Equity-Based Compensation
The Company accounts for all equity-based awards granted to employees and nonemployees using a fair value method. Equity-based compensation is recognized as an expense and is measured at the fair value of the award. The measurement date for employee awards is generally the date of the grant. Equity-based compensation costs are recognized as expense ratably over the requisite service period, which is generally the vesting period for awards with only a service condition. Forfeitures are accounted for as they occur.

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TABLE OF CONTENTS

The Company uses the Black-Scholes option pricing model to determine the fair value of equity-based awards issued to employees and nonemployees. The Black-Scholes option pricing model is affected by the unit price and a number of assumptions, including the award’s expected life, risk-free interest rate, the expected volatility of the underlying stock and expected dividends. These assumptions are estimated as follows:

| • | Fair Value of Underlying Stock– The Company’s Board of Directors determines the fair value of the underlying common stock based on past transactions in the Company’s stock and current information about the enterprise value of the Company. |

| • | Risk-Free Interest Rate –The risk-free interest rate used in the Black-Scholes option pricing model is the implied yield available on U.S. Treasury zero-coupon issues with remaining terms similar to the expected term on the options. |

| • | Expected Term– The Company estimates the expected term for equity-based awards using the simplified method due to the lack of historical exercise activity for the company. The simplified method calculates the expected term as the mid-point between the vesting date and the contractual expiration date of the award. |

| • | Volatility– The Company estimates the price volatility factor based on the historical volatilities of comparable public companies as there is no trading history of the Company’s common stock. |

| • | Expected Dividend Yield– The Company has no history or expectation to pay dividends for the foreseeable future. |

Revenue Recognition The Company generates its revenues from three main sources: (1) direct to consumer