Company: JUSHF
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0001628280-25-023749
Chunk: 51

Company: Jushi Holdings Inc.
Filing Date: 2025-05-08
Form: 10-Q
Item: Item 8
Chunk 51
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 standard pricing models for forward or option equity contracts, i.e., the “fixed for fixed” criteria under ASC 815-40. The estimated fair value of the Derivative Warrants is measured at the end of each reporting period and an adjustment is reflected in fair value changes in derivatives in the consolidated statements of operations. These are Level 3 recurring fair value measurements. The estimated fair value of the Derivative Warrants was determined 

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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)

using the Black-Scholes model with stock price based on the OTCQX closing price of the Derivative Warrants issue date as of March 31, 2025 and December 31, 2024. The assumptions used in the fair value calculations as of the balance sheet dates presented include the following:March 31, 2025 (unaudited)December 31, 2024Stock price per share$0.30$0.31Risk-free annual interest rate3.94% - 3.98%4.24% - 4.35%Range of estimated possible exercise price$1.00 - $2.086$1.00 - $2.086Weighted average volatility95%93%Remaining life1.7 - 4.3 years2 - 4.6 yearsForfeiture rate0%0%Expected annual dividend yield0%0%Volatility was estimated by using a weighting of the Company’s historical volatility. The risk-free interest rate for the expected life of the Derivative Warrants was based on the yield available on government benchmark bonds with an approximate equivalent remaining term. The expected life is based on the contractual term. If any of the assumptions used in the calculation were to increase or decrease, this could result in a material or significant increase or decrease in the estimated fair value of the derivative liability. For example, the following table illustrates an increase or decrease in certain significant assumptions as of the balance sheet dates:As of March 31, 2025As of December 31, 2024(unaudited)InputEffect of 10% IncreaseEffect of 10% DecreaseInputEffect of 10% IncreaseEffect of 10% DecreaseStock price per share$0.30$412 $(400)$0.31$440 $(427)Volatility95 %427