Company: VREOF
Filing Date: 2025-03-07
Form Type: PRE 14C
Source: 0001140361-25-007601
Chunk: 356

Company: Vireo Growth Inc.
Filing Date: 2025-03-07
Form: PRE 14C
Chunk 356
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 basis over the lease term. Fixed non-lease costs, for example common-area maintenance costs, taxes, insurance, and maintenance, are included in the measurement of the right-of-use asset and lease liability as the Company does not separate lease and non-lease components. For leases that include one or more options to renew, management determines whether its reasonably certain those renewal options will be exercised at lease commencement and includes the renewal periods in the calculation of the right-of-use asset and lease liability when it is reasonably certain the renewal option will be exercised. The depreciable life of assets and leasehold improvements are limited by the expected lease term unless there is a transfer of title or purchase option reasonably certain to exercise.

As of January 1, 2024, the Company adopted the accounting policy to calculate the present value of lease payments for real property leases using the rate implicit in the lease, if known, or its incremental borrowing rate for a similar secured borrowing arrangement.

#### Debt and Attached Equity-Linked Instruments
The Company measures issued debt on an amortized cost basis, net of debt premium/discount and debt issuance costs amortized using the effective interest rate method or the straight-line method when the latter does not lead to materially different results.

The Company analyzes freestanding equity-linked instruments including warrants attached to debt to determine whether the instrument meets the definition of the derivative and whether it is considered indexed to the Company’s own stock.

If the instrument is not considered indexed to the Company’s stock, it is classified as an asset or liability recorded at fair value. If the instrument is considered indexed to the Company’s stock, the Company analyzes additional equity classification requirements. When the requirements are met, the instrument is recorded as part of the Company’s equity, initially measured based on its relative fair value with no subsequent re-measurement. When the equity classification requirements are not met, the instrument is recorded as an asset or liability and is measured at fair value with subsequent changes in fair value recorded in earnings.

#### Equity-Based Compensation
The Company accounts for all equity-based awards granted to employees and nonemployees using a fair value method. Equity-based compensation is recognized as an expense and is measured at the fair value of the award. The measurement date for employee awards is generally the date of the grant. Equity-based compensation costs are recognized as expense ratably over the requisite service period, which is generally the vesting period for awards with only a service condition. Forfeitures are accounted for as they occur.

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