Company: JUSHF
Filing Date: 2025-11-04
Form Type: 10-Q
Source: 0001628280-25-048797
Chunk: 78

Company: Jushi Holdings Inc.
Filing Date: 2025-11-04
Form: 10-Q
Item: Item 8
Chunk 78
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 the current year’s cost of sales as products produced in prior periods turn. These decreases were partially offset by higher gross profit and gross profit margin in Ohio as a result of new dispensary openings, as well as lower costs following the ramping up our grower processor facility in 2024 to support the transition to adult-use. Jushi branded product sales as a percentage of total retail revenue were 56% across the Company’s five vertical markets compared to 55% in the prior year. 

Operating Expenses

Operating expenses were $81,294 compared to $80,192, an increase of $1,102 or 1%. The following table presents information on our operating expenses for the periods indicated:

Nine Months Ended September 30,20252024$ Change% ChangeSalaries, wages and employee related expenses$43,055 $42,837 $218 1 %Depreciation and amortization expenses13,702 11,090 2,612 24 %Rent and related expenses9,415 8,928 487 5 %Professional fees and legal expenses5,584 5,501 83 2 %Share-based compensation expense424 2,953 (2,529)(86)%Gain on asset disposals and lease terminations(2,992)(2,233)(759)34 %Other expenses (1)12,106 11,116 990 9 %Total operating expenses$81,294 $80,192 $1,102 1 %

(1)     Other expenses are primarily comprised of marketing and selling expenses, insurance costs, administrative and licensing fees, software and technology costs, travel, entertainment and other.

The increase is primarily driven by higher depreciation and amortization expense due to the amortization of our business licenses which commenced on June 1, 2024, as we concluded that our business licenses no longer have indefinite useful lives. This was partially offset by lower share-based compensation expense which reflects higher forfeitures as well as lower value of share-based compensation granted.  

Other Income (Expense)

Interest Expense, Net

Interest expense, net was $30,486 compared to $27,997, an increase of $2,489, or 9%. The increase in interest expense, net is primarily due to the Term Loans which were issued in July 2024, which was partially offset by the decrease in interest expense from the repayment of the Acquisition Facility in July 2024.

Fair Value gain