Company: JUSHF
Filing Date: 2025-11-04
Form Type: 10-Q
Source: 0001628280-25-048797
Chunk: 8

Company: Jushi Holdings Inc.
Filing Date: 2025-11-04
Form: 10-Q
Item: Item 2
Chunk 8
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(1)     Other expenses are primarily comprised of marketing and selling expenses, insurance costs, administrative and licensing fees, software and technology costs, travel, entertainment and other.

The increase is primarily driven by higher depreciation and amortization expense due to the amortization of our business licenses which commenced on June 1, 2024, as we concluded that our business licenses no longer have indefinite useful lives. This was partially offset by lower share-based compensation expense which reflects higher forfeitures as well as lower value of share-based compensation granted.  

Other Income (Expense)

Interest Expense, Net

Interest expense, net was $30,486 compared to $27,997, an increase of $2,489, or 9%. The increase in interest expense, net is primarily due to the Term Loans which were issued in July 2024, which was partially offset by the decrease in interest expense from the repayment of the Acquisition Facility in July 2024.

Fair Value gain (loss) on Derivatives

Fair value loss on derivatives was $5,875, compared to a gain of $2,840. Fair value gain (loss) on derivatives include the fair value changes relating to the derivative warrants. The derivative warrants are required to be remeasured at fair value at each reporting period. The fair value changes in derivatives were primarily attributable to the movement in our stock price during the corresponding period. 

Other, Net

Other, net was an income of $6,992, compared to $4,186, an increase of $2,806. The current period is primarily comprised of $7,621 related to employee retention credit claims, including interest, received from the IRS, and $914 gain on sale of a non-core asset, partially offset by $1,671 indemnification asset adjustment related to acquisitions made in prior years and 

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$568 foreign exchange translation loss in relation to certain Second Lien Notes denominated in Canadian dollars. The prior year is primarily comprised of $1,896 gain on Jushi Europe deconsolidation, $457 foreign exchange translation gain in relation to certain Second Lien Notes denominated in Canadian dollars, $455 indemnification asset adjustment related to acquisitions made in prior years, and $400 reversal of legal claim accruals no longer required.

Income Tax Expense

Total income tax expense was $27,735 compared to $28,041 in the prior year, a decrease of $306 or 1%. 

Non-GAAP Measures and Reconciliation

In addition to providing