Company: VREOF
Filing Date: 2025-03-11
Form Type: PREM14C
Source: 0001140361-25-008065
Chunk: 348

Company: Vireo Growth Inc.
Filing Date: 2025-03-11
Form: PREM14C
Chunk 348
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 than 10% of the Company’s revenues for the years ended December 31, 2024 and 2023.

B-28

TABLE OF CONTENTS

Major vendors are defined as those vendors having expenditures made by the Company which exceed 10% of the Company’s total expenditures. No vendors represented greater than 10% of the Company’s total expenditures in 2024 and 2023. The Company’s access to sources of debt funding is generally limited due to the selling of medical cannabis being legalized on the state level in many states including Utah where the Company operates, but not legal at the federal level. As a result, if the Company’s primary lender were to discontinue lending to the Company, it may have a negative impact on the operations of the Company. Accounts Receivable and Allowance for Credit Losses The Company sells medical cannabis products to retail and wholesale customers. Retail customers are required to present payment at the time of product delivery. Wholesale customers are allowed to purchase product on account with invoices generally due within 30 days of the invoice date. The Company began selling to wholesale customers during 2023 and does not have historical loss information for similar trade receivables. The Company evaluates the collectability of trade receivables based on the aging of trade receivables (current, 1–30 days past due, 31–60 days past due, 61–90 days past due, and more than 90 days past due). Estimates of expected credit losses are based on historical collection experience, current market conditions, and reasonable and supportable forecasts of economic conditions. The Company also provides an allowance for customers determined to be insolvent. The allowance for credit losses is maintained at a level that management considers adequate to provide for losses based on an evaluation of known and possible risks of collection of receivable balances. Recoveries of receivables previously charged off receivables are recorded when payment is received. As of December 31, 2024 and 2023, the Company determined no allowance for credit losses was required. Inventories Inventories are primarily comprised of raw materials, internally produced work in process, finished goods and packaging materials. Inventories also include finished products purchased at wholesale from other medical cannabis companies that are offered for sale by the Company. Costs incurred during the growing and production process are capitalized as incurred to the extent that cost does not exceed net realizable value. These costs include materials, labor and manufacturing overhead used in the growing and production processes. The Company capitalizes pre-harvest costs.