Company: VREOF
Filing Date: 2025-03-11
Form Type: PREM14C
Source: 0001140361-25-008065
Chunk: 213

Company: Vireo Growth Inc.
Filing Date: 2025-03-11
Form: PREM14C
Chunk 213
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, 2023. The increase was primarily due increased patient count in Utah, increased delivery sales, increased product offerings, and improved product quality.

|                   |     |                Wholesome 
 Years Ended December 31, |     |             |     |  Change in |     |      |
|:------------------|:----|-------------------------:|:----|------------:|:----|-----------:|:----|:-----|
|                   |     |                     2024 |     |        2023 |     |          $ |     | %    |
| Retail revenue    |     |              $39,937,299 |     | $33,523,256 |     | $6,414,043 |     | 19%  |
| Wholesale revenue |     |                7,563,690 |     |   3,656,527 |     |  3,907,163 |     | 107% |
| Total revenue     |     |              $47,500,989 |     | $37,179,783 |     | 10,321,206 |     | 28%  |

Cost of Sales and Gross Profit Cost of sales are determined from costs related to the cultivation and processing of cannabis and cannabis-derived products as well as the cost of finished goods inventory purchased from third parties. Cost of sales for the year ended December 31, 2024 were $18,752,885, an increase of $1,406,252 compared to the year ended December 31, 2023 of $17,346,633, driven most significantly by the increase in product costs associated with the increase in revenues year over year. Gross profit for the year ended December 31, 2024 was $28,748,104, representing a gross margin of 61%. This is compared to gross profit for the year ended December 31, 2023 of $19,833,150, or a 53% gross margin. The increase in gross margin was driven by the increased sales from internally generated products which carry higher margins, and increased yields per square foot of canopy at the cultivation site.

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Total Operating Expenses Total operating expenses for the year ended December 31, 2024 were $16,932,100, an increase of $2,634,107 compared to total operating expenses of 14,297,993 for the year ended December 31, 2023. The increase in total operating expenses