Company: VREOF
Filing Date: 2025-03-21
Form Type: DEFM14C
Source: 0001140361-25-009815
Chunk: 358

Company: Vireo Growth Inc.
Filing Date: 2025-03-21
Form: DEFM14C
Chunk 358
---
.

<div align='center'>B-30</div>

TABLE OF CONTENTS

The Company uses the Black-Scholes option pricing model to determine the fair value of equity-based awards issued to employees and nonemployees. The Black-Scholes option pricing model is affected by the unit price and a number of assumptions, including the award’s expected life, risk-free interest rate, the expected volatility of the underlying stock and expected dividends. These assumptions are estimated as follows:

| • | Fair Value of Underlying Stock– The Company’s Board of Directors determines the fair value of the underlying common stock based on past transactions in the Company’s stock and current information about the enterprise value of the Company. |

| • | Risk-Free Interest Rate –The risk-free interest rate used in the Black-Scholes option pricing model is the implied yield available on U.S. Treasury zero-coupon issues with remaining terms similar to the expected term on the options. |

| • | Expected Term– The Company estimates the expected term for equity-based awards using the simplified method due to the lack of historical exercise activity for the company. The simplified method calculates the expected term as the mid-point between the vesting date and the contractual expiration date of the award. |

| • | Volatility– The Company estimates the price volatility factor based on the historical volatilities of comparable public companies as there is no trading history of the Company’s common stock. |

| • | Expected Dividend Yield– The Company has no history or expectation to pay dividends for the foreseeable future. |

Revenue Recognition The Company generates its revenues from three main sources: (1) direct to consumer product sales; (2) wholesale product sales to distributors; and (3) subscriptions to the Arches software platform. Revenues for product sales and subscription services are recognized when control of these goods or services is transferred to customers in an amount that reflects the consideration expected to be received by the Company in exchange for those goods or services. The Company determines revenue recognition through the following steps:

| • | Identification of the contract, or contracts, with a customer |

| • | Identification of the performance obligations in the contract |

| • | Determination of the transaction price |

| • | Allocation of the transaction price to the performance obligations in the contract |

| • | Recognition of revenue when, or as, each performance obligation is satisfied |

The Company’s contracts with customers generally contain a single performance obligation. The Company’s contracts with customers consist of the following: Direct to Consumer Revenues Direct to consumer revenues contain one performance obligation