Company: VREOF
Filing Date: 2025-03-21
Form Type: DEFM14C
Source: 0001140361-25-009815
Chunk: 220

Company: Vireo Growth Inc.
Filing Date: 2025-03-21
Form: DEFM14C
Chunk 220
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292, or a 59% gross margin. The decrease in gross margin was driven by general pricing compression in the Missouri market and one time inventory write offs. Total Operating Expenses Total operating expenses for the year ended December 31, 2024 were $24,683,705, an increase of $6,218,857 compared to total operating expenses of $18,464,848 for the year ended December 31, 2023. The increase in total operating expenses was primarily due to the increase in the dispensary count related to the Management Service Agreement with Nirvana and acquisition of SLCC, LLC. Income from Operations Income from operations for the year ended December 31, 2024 was $19,021,586, a decrease of $7,275,858 compared to income from operations of $26,297,444 for the year ended December 31, 2023. Total Other Expense Total other expense, net for the year ended December 31, 2024 was $2,483,310, a decrease of $651,763 compared to other expense, net of $3,135,073 for the year ended December 31, 2023. The decrease in other income (expense) is primarily attributable to increased royalty and sublet income in 2024 relative to 2023. Provision for Income Taxes Income tax expense is recognized based on the expected tax payable on the taxable income for the year, using tax rates enacted or substantively enacted at year-end. For the year ended December 31, 2024, Federal and State income tax expense totaled $9,190,000 compared to income tax expense of $9,550,000 for the year ended December 31, 2023. Non-GAAP Measures EBITDA is a non-GAAP measure that does not have a standardized definition under GAAP. The following information provides reconciliations of the supplemental non-GAAP financial measure EBITDA presented herein to the most directly comparable financial measures calculated and presented in accordance with GAAP. We have provided these non-GAAP financial measures, which are not calculated or presented in accordance with GAAP, as supplemental information and in addition to the financial measures that are calculated and presented in accordance with GAAP. These supplemental non-GAAP financial measures are presented because management has evaluated the financial results both including and

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excluding the adjusted items and believes that the supplemental non-GAAP financial measures presented provide additional perspective and insights when analyzing the core operating performance of the business