Company: VREOF
Filing Date: 2025-03-21
Form Type: DEFM14C
Source: 0001140361-25-009815
Chunk: 355

Company: Vireo Growth Inc.
Filing Date: 2025-03-21
Form: DEFM14C
Chunk 355
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 present payment at the time of product delivery. Wholesale customers are allowed to purchase product on account with invoices generally due within 30 days of the invoice date. The Company began selling to wholesale customers during 2023 and does not have historical loss information for similar trade receivables. The Company evaluates the collectability of trade receivables based on the aging of trade receivables (current, 1–30 days past due, 31–60 days past due, 61–90 days past due, and more than 90 days past due). Estimates of expected credit losses are based on historical collection experience, current market conditions, and reasonable and supportable forecasts of economic conditions. The Company also provides an allowance for customers determined to be insolvent. The allowance for credit losses is maintained at a level that management considers adequate to provide for losses based on an evaluation of known and possible risks of collection of receivable balances. Recoveries of receivables previously charged off receivables are recorded when payment is received. As of December 31, 2024 and 2023, the Company determined no allowance for credit losses was required. Inventories Inventories are primarily comprised of raw materials, internally produced work in process, finished goods and packaging materials. Inventories also include finished products purchased at wholesale from other medical cannabis companies that are offered for sale by the Company. Costs incurred during the growing and production process are capitalized as incurred to the extent that cost does not exceed net realizable value. These costs include materials, labor and manufacturing overhead used in the growing and production processes. The Company capitalizes pre-harvest costs. Inventories of purchased finished goods and packing materials are initially valued at cost and subsequently at the lower of cost and net realizable value. Net realizable value is determined as the estimated selling price in the ordinary course of business less the estimated costs of completion, disposal and transportation for inventories in process. The Company periodically reviews its inventory and identifies that which is excess, slow moving and obsolete by considering factors such as inventory levels, expected product life and forecasted sales demand. Any identified excess, slow moving and obsolete inventory is written down to its net realizable value through a charge to cost of goods sold. As of December 31, 2024 and 2023, the allowance for slow moving and obsolete inventory was $84,205 and $134,968, respectively. Property and Equipment Property and equipment are stated at cost less accumulated depreciation and amortization. Depreciation and amortization are calculated using the straight