Company: VREOF
Filing Date: 2025-03-07
Form Type: PRE 14C
Source: 0001140361-25-007601
Chunk: 359

Company: Vireo Growth Inc.
Filing Date: 2025-03-07
Form: PRE 14C
Chunk 359
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 resulting from temporary differences. Such temporary differences result from differences in the carry value of assets and liabilities for tax and financial reporting purposes. The deferred taxes represent the future tax return consequences of those differences, which will either be taxable or deductible when the assets and liabilities are recovered or settled. Deferred income tax assets are reviewed periodically for recoverability, and a valuation allowance is provided when it is more likely than not that some or all of the deferred income tax assets may not be realized. Tax positions for the Company are subject to income tax audits by tax jurisdictions in the United States. The Company recognizes the tax benefit of an uncertain tax position only if it is more likely than not that the position will be sustained upon examination by the taxing authority, based on the technical merits. The tax benefit recognized is measured as the largest amount of benefit which is greater than 50 percent likely to be realized upon settlement with the taxing authority. The Company recognizes interest and penalties accrued related to unrecognized tax benefits in its tax provision. As the Company operates in the cannabis industry, it is subject to the limitations of the Internal Revenue Code of 1986, Section 280E, under which the Company is only allowed to deduct expenses directly related to sales of product from its taxable income. This results in permanent differences between ordinary and necessary business expenses deemed non-allowable under the Internal Revenue Code of 1986, Section 280E. Therefore, the effective tax rate can be highly variable and may not necessarily correlate with pre-tax income or loss. Advertising Advertising costs are expensed as incurred. Advertising expenses totaled $333,389 and $545,571 for the years ended December 31, 2024 and 2023, respectively. Reclassification in Prior Year Financial Statements Certain balances in the 2023 financial statements have been reclassified to conform to the 2024 financial statement presentation. Subsequent Events Management has evaluated events and transactions for potential recognition or disclosure through February 27, 2025, which is the day the consolidated financial statements were available to be issued.

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TABLE OF CONTENTS

2. Inventories Inventories consist of the following as of December 31:

|                   |     |       2024 |     |       2023 |
| Raw materials     |     |   $600,674 |     |   $185,264 |
| Work in process   |     |  2,443,622 |     |  2,256,194 |
| Finished goods    |     |  2,997