Company: VREOF
Filing Date: 2025-03-21
Form Type: DEFM14C
Source: 0001140361-25-009815
Chunk: 369

Company: Vireo Growth Inc.
Filing Date: 2025-03-21
Form: DEFM14C
Chunk 369
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Significant components of the Company’s deferred income tax assets (liabilities) are as follows as of December 31:

|                             |     |       2024 |     |       2023 |
| Fixed assets                |     | $(756,976) |     | $(604,533) |
| Right-of-use asset          |     | -2,009,028 |     | -2,181,098 |
| Operating lease liabilities |     |  2,115,763 |     |  2,078,045 |
| 174 capitalization          |     |    278,726 |     |          — |
| Valuation allowance         |     |   -354,514 |     |          — |
| Other                       |     |     97,114 |     |     95,973 |
|                             |     | $(628,915) |     | $(611,613) |

The Company’s provision for income taxes differs from the result of applying the statutory tax rate to income before provision for income taxes, primarily due to state income taxes, net operating losses, depreciation expense, and changes in valuation uncertain tax positions as well as non-deductible expenses, which largely consist of expenses subject to Section 280E disallowance.

B-39

#### TABLE OF CONTENTS
As of December 31, 2024, the Company has domestic federal and state net operating loss (NOL) carryforwards available to offset future domestic taxable income, if any, of approximately $199,315. The NOL carryforwards generated can be carried forward indefinitely.

Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to reverse.

The utilization of the NOL carryforwards is subject to annual limitations under Section 382 of the Internal Revenue Code. Section 382 imposes limitations on a corporation’s ability to utilize its NOL carryforwards if it experiences an “ownership change.”

In general terms, an ownership change results from transactions increasing the ownership of certain stockholders in the stock of a corporation by more than 50% over a three-year period.

The Company operates in the legal cannabis industry but is subject to Section 280E. Section 280E prohibits businesses engaged in the trafficking of controlled substances (within the meaning of Schedule I and II of the Controlled Substance Act) from deducting normal business expenses associated with the sale of cannabis, such as payroll and rent, from gross profit (