Company: VREOF
Filing Date: 2025-03-11
Form Type: PREM14C
Source: 0001140361-25-008065
Chunk: 329

Company: Vireo Growth Inc.
Filing Date: 2025-03-11
Form: PREM14C
Chunk 329
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 U.S. federal law, the possession, use, cultivation, and transfer of cannabis and any related drug paraphernalia is illegal and any such acts are criminal acts under federal law under the CSA. Although the Company’s activities are believed to be compliant with applicable state and local laws, strict compliance with state and local laws with respect to cannabis may neither absolve the Company of liability under U.S. federal law, nor may it provide a defense to any federal proceeding which may be brought against the Company.

| 2. | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES |

| (a) | Basis of Accounting and Principles of Consolidation |

The Company’s consolidated financial statements have been prepared in conformity with generally accepted accounting principles in the United States of America (“GAAP”) as issued by the Financial Accounting Standards Board (“FASB”) and reflect the accounts and operations of the Company. The consolidated financial statements 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