Company: JUSHF
Filing Date: 2025-03-06
Form Type: 10-K
Source: 0001628280-25-010947
Chunk: 108

Company: Jushi Holdings Inc.
Filing Date: 2025-03-06
Form: 10-K
Item: Item 7
Chunk 108
---
 to thirty-four in seven states at the end of 2023.

Wholesale revenue decreased $499. The decrease is primarily attributable to $3,324 decline in wholesale revenue in Massachusetts, $1,003 decline in Nevada and $1,004 decline in Pennsylvania due to continued competition and product availability to sell to third parties through our wholesale channel. These decreases were partially offset by wholesale revenue growth in Virginia of $4,336 as the cultivation and processing facility in Virginia matured and had more products available for sale to third parties. 

Gross Profit

Gross profit was $118,303 compared to $116,228, an increase of $2,075, or 2%. Gross profit margin increased to 46% compared to 43%. The increase in gross profit and gross profit margin was driven by efficiencies at our cultivation and processing facilities which enabled us to reduce costs, partially offset by additional expenses in Ohio, including inventory write downs, as we ramp up our facilities in Ohio to support the transition to adult-use. In our retail channel, gross profit declined due to lower sales; however, gross profit margin improved 46 basis points as a result of increased sell-through of Jushi branded products at our retail stores. Jushi branded product sales as a percentage of total retail revenue were 55% across the Company’s five vertical markets compared to 50% in the prior year.

62

Operating Expenses

Operating expenses were $107,440 compared to $119,046, a decrease of $11,606, or 10%. The following table presents information on our operating expenses for the periods indicated:

Year Ended December 31,20242023$ Change% ChangeSalaries, wages and employee related expenses$56,443 $56,483 $(40)— %Depreciation and amortization expense15,459 10,656 4,803 45 %Rent and related expenses11,673 11,789 (116)(1)%Professional fees and legal expenses6,744 7,732 (988)(13)%Share-based compensation expense4,222 8,092 (3,870)(48)%Goodwill impairment— 7,329 (7,329)(100)%Indefinite-lived intangible asset impairment— 845 (845)(100)%Tangible long-lived asset impairment432 400 32 8 %Other expenses (1)12,467 15,720 (3,253)(21)%Total operating expenses$107,440