Company: JUSHF
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0001628280-25-023749
Chunk: 55

Company: Jushi Holdings Inc.
Filing Date: 2025-05-08
Form: 10-Q
Item: Item 8
Chunk 55
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 Total revenue, net$63,846 $65,459 

17

Table of ContentsJUSHI HOLDINGS INC. Notes to the Unaudited Condensed Consolidated Financial Statements(Amounts Expressed in Thousands of U.S. dollars, Except Share and Per Share Amounts)

 13.   OPERATING EXPENSESThe major components of operating expenses are as follows:Three Months Ended March 31,20252024Salaries, wages and employee related expenses$14,149 $14,147 Depreciation and amortization expense4,597 3,278 Rent and related expenses3,197 2,914 Professional fees and legal expenses1,925 2,575 Share-based compensation expense (forfeiture)(307)1,524 Other expenses (1)4,085 3,773 Total operating expenses$27,646 $28,211 (1)     Other expenses are primarily comprised of marketing and selling expenses, insurance costs, administrative and licensing fees, software and technology costs, travel, entertainment and conferences and other.

 14.   INCOME TAXESThe following table summarizes the Company’s income tax expense and effective tax rates for the three months ended March 31, 2025 and 2024:Three Months Ended March 31,20252024Loss before income tax$(8,037)$(8,608)Income tax expense$8,978 $9,747 Effective income tax rate111.7 %113.2 %The Company has computed its provision for income taxes based on the actual effective rate for the three months ended March 31, 2025 and 2024 as the Company believes this is the best estimate for the annual effective tax rate. Therefore, the Company’s effective income tax rates for the three months ended March 31, 2025 and 2024 are not indicative of the effective income tax rate for each respective fiscal year of 2025 and 2024. The Company’s effective income tax rate is significantly higher than the statutory income tax rates due in part to (i) an increase in the uncertain tax position liability due to tax positions based on legal interpretations that challenge the Company’s tax liability under Internal Revenue Code Section 280E (“280E”), (ii) interest and penalties accrual for tax liabilities, and (iii) state income taxes.The IRS has taken the position that cannabis companies are subject to the limitation of 280E, a position held by