Company: JUSHF
Filing Date: 2025-08-05
Form Type: 10-Q
Source: 0001628280-25-037797
Chunk: 8

Company: Jushi Holdings Inc.
Filing Date: 2025-08-05
Form: 10-Q
Item: Item 2
Chunk 8
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     Other expenses are primarily comprised of marketing and selling expenses, insurance costs, administrative and licensing fees, software and technology costs, travel, entertainment and conferences and other.

Depreciation and amortization expense increased due primarily 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. Lower share-based compensation expense reflects higher forfeitures as well as lower value of share-based compensation granted.  

Other Income (Expense)

Interest Expense, Net

Interest expense, net was $20,219 compared to $18,615, an increase of $1,604, 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.

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Fair Value gain (loss) on Derivatives

Fair value gain on derivatives was $450, compared to a gain of $212. 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 $7,598, compared to an income of $4,663, a change of $2,935. The current period is primarily comprised of $6,831 in employee retention credit claims, including interest, received from the IRS, $914 gain on sale of a non-core asset, partially offset by $886 foreign exchange translation loss in relation to certain 12% second lien notes due 2026 (the “Second Lien Notes”) denominated in Canadian dollars. The prior period primarily relates to $1,896 gain on Jushi Europe deconsolidation and $680 foreign exchange translation gain in relation to certain Second Lien Notes denominated in Canadian dollars.

Income Tax Expense

Total income tax expense was $18,906 compared to $19,076 in the prior year, a decrease of $170 or 1%. 

Non-GAAP Measures and Reconciliation

In addition to providing financial measurements based on GAAP, we provide additional financial metrics that are not prepared in accordance with GAAP. We use non-GAAP financial measures, in addition to GAAP financial measures, to understand and compare operating results across accounting periods