Company: VREOF
Filing Date: 2025-03-11
Form Type: PREM14C
Source: 0001140361-25-008065
Chunk: 374

Company: Vireo Growth Inc.
Filing Date: 2025-03-11
Form: PREM14C
Chunk 374
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 In addition, ASC 326 made changes to the accounting for available-for-sale securities.

The Company adopted ASC 326 using the modified retrospective method for all financial assets measured at amortized costs and off balance sheet credit exposures. Results for reporting periods after January 1, 2023 are presented under ASC 326 while prior period amounts continue to be reported in accordance with previously applicable U.S. GAAP. There are no transition adjustments as of January 1, 2023.

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TABLE OF CONTENTS

| NOTE 2: | INVENTORY |

Detail of inventories are as follows for December 31:

|                                |     |       2024 |     |       2023 |
| Packaging and Label Materials  |     | $3,200,555 |     | $3,088,769 |
| Plants                         |     |    623,862 |     |    569,704 |
| Work in Progress               |     |  2,733,530 |     |  1,222,711 |
| Finished Goods                 |     |  2,403,362 |     |  3,438,625 |
|                                |     | $8,961,309 |     | $8,319,809 |
| Inventory Valuation Adjustment |     |          — |     | -1,200,000 |
| Total                          |     | $8,961,309 |     | $7,119,809 |

Packaging materials were written down during 2023 due to a change in packaging regulations issued by the regulators of Missouri. Inventory valuation adjustment included in cost of sales for the year ended December 31, 2023 was $1.2 million. As of December 31, 2024 and 2023, the inventory valuation adjustment was $0 and $1.2 million. In November 2024 the Company experienced a flood event in its main production facility. The Cost of involuntarily destroyed inventory was $624,043. No flood insurance policy was in place at the time.

| NOTE 3: | DEPOSITS |

|                                                                                                                                                                                                                                                                                                                         |     |       2024 |     |       2023 |
| On August 20, 2024, the Company entered into an agreement to acquire a dispensary license from ROI Wellness Center IV, LLC. The Company has requested a transfer of ownership with the Missouri Department of Health Senior Services. As part of the agreement, the