Company: VREOF
Filing Date: 2025-03-21
Form Type: DEFM14C
Source: 0001140361-25-009815
Chunk: 211

Company: Vireo Growth Inc.
Filing Date: 2025-03-21
Form: DEFM14C
Chunk 211
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 compared to retail revenue of $62,766,225 for the year ended December 31, 2023, primarily due to the acquisition of The Source Holdings, LLC, in October of 2024 which added four dispensaries to Deep Roots operations. Wholesale revenue for the year ended December 31, 2024 was $1,426,794, a decrease of $155,654 or 10% compared to wholesale revenue of $1,582,448 for the year ended December 31, 2023. Wholesale sales were flat, there were no significant drivers of change in 2024.

|                   |     |               Deep Roots 
 Years Ended December 31, |     |             |     |  Change in |     |       |
|:------------------|:----|-------------------------:|:----|------------:|:----|-----------:|:----|:------|
|                   |     |                     2024 |     |        2023 |     |          $ |     | %     |
| Retail revenue    |     |              $68,083,205 |     | $62,766,225 |     | $5,316,980 |     | 8%    |
| Wholesale revenue |     |                1,426,794 |     |   1,582,448 |     |   -155,654 |     | (10)% |
| Total revenue     |     |              $69,509,999 |     | $64,348,673 |     | $5,161,326 |     | 8%    |

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 $31,032,948, an increase of $3,058,429 compared to the year ended December 31, 2023 of $27,974,519, 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 $38,477,051, representing a gross margin of 55%. This is compared to gross profit for the year ended December 31, 2023 of $36,374,154, or a 57% gross margin. The decrease in margin was driven by pricing compression in the Nevada market.