Company: VREOF
Filing Date: 2025-03-11
Form Type: PREM14C
Source: 0001140361-25-008065
Chunk: 350

Company: Vireo Growth Inc.
Filing Date: 2025-03-11
Form: PREM14C
Chunk 350
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 time in exchange for consideration) at inception and only reassesses its determination if the terms and conditions of the arrangement are changed. For all arrangements where it is determined that a lease exists, the related right-of-use assets and lease liabilities are recorded within the consolidated balance sheet as either operating or finance leases. At inception or modification, the Company calculates the present value of lease payments using the implicit rate determined from the contract or the risk-free rate as allowed for non-public entities. The present value is adjusted for prepaid lease payments, lease incentives, and initial direct costs (e.g. commissions). The Company’s leases may require fixed rental payments, variable lease payments based on usage or sales and fixed non-lease costs relating to the leased asset. Variable lease payments are generally not included in the measurement of the right-of-use assets and lease liabilities. Leases with an initial term of 12 months or less are not recorded on the consolidated balance sheet. Lease expense is recognized for operating leases on a straight-line 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