Company: VREOF
Filing Date: 2025-03-07
Form Type: PRE 14C
Source: 0001140361-25-007601
Chunk: 219

Company: Vireo Growth Inc.
Filing Date: 2025-03-07
Form: PRE 14C
Chunk 219
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     | 1%  |
| Total revenue     |     |              $90,408,120 |     | $76,171,695 |     | $14,236,425 |     | 19% |

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 $46,702,829, an increase of $15,293,426 compared to the year ended December 31, 2023 of $31,409,403, 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 $43,705,291, representing a gross margin of 48%. This is compared to gross profit for the year ended December 31, 2023 of $44,762,292, or a 59% gross margin. The decrease in gross margin was driven by general pricing compression in the Missouri market and one time inventory write offs. Total Operating Expenses Total operating expenses for the year ended December 31, 2024 were $24,683,705, an increase of $6,218,857 compared to total operating expenses of $18,464,848 for the year ended December 31, 2023. The increase in total operating expenses was primarily due to the increase in the dispensary count related to the Management Service Agreement with Nirvana and acquisition of SLCC, LLC. Income from Operations Income from operations for the year ended December 31, 2024 was $19,021,586, a decrease of $7,275,858 compared to income from operations of $26,297,444 for the year ended December 31, 2023. Total Other Expense Total other expense, net for the year ended December 31, 2024 was $2,483,310, a decrease of $651,763 compared to other expense, net of $3,135,073 for the year ended December 31, 2023. The decrease in other income (expense) is primarily attributable to increased royalty and sublet income in 2024 relative to 2023. Provision for Income Taxes Income tax expense is recognized based on the expected tax payable on the taxable income for the year, using tax rates enacted or substantively enacted at year-end. For