Company: VREOF
Filing Date: 2025-03-21
Form Type: DEFM14C
Source: 0001140361-25-009815
Chunk: 359

Company: Vireo Growth Inc.
Filing Date: 2025-03-21
Form: DEFM14C
Chunk 359
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 – product transfer. Revenues from direct-to-consumer sales are recognized upon the satisfaction of performance obligations, which occurs when control of the good transfers to the customer, which generally occurs upon delivery of the product to the customer. Wholesale Revenues Wholesale revenues contain one performance obligation – product transfer. Revenues from product sales are recognized upon the satisfaction of performance obligations, which occurs when control of the good transfers to the customer, which generally occurs upon delivery of the product to the customer. Software Subscription Revenues The Company’s subscription arrangements generally do not provide customers with the right to take possession of the software supporting the platform and, as a result, are accounted for as service arrangements. Access to the Company’s platform represents a series of distinct services as the Company continually provides access to, and fulfills its obligation to, the end customer over the subscription term. The series of distinct services represents a single performance obligation that is satisfied over time.

B-31

TABLE OF CONTENTS

For the years ended December 31, 2024 and 2023, revenues by sales channel were as follows:

|                    |     |        2024 |     |        2023 |
| Direct-to-consumer |     | $39,937,299 |     | $33,523,256 |
| Wholesale          |     |   7,563,690 |     |   3,656,527 |
| Subscription       |     |           — |     |           — |
|                    |     | $47,500,989 |     | $37,179,783 |

For the years ended December 31, 2024 and 2023, revenues are presented net of discounts and refunds provided to customers of $10,696,567 and $6,594,503, respectively. The Company offers a loyalty reward program to its retail customers. A portion of the revenue generated in a sale must be allocated to the loyalty points earned. The amount allocated to the points earned is deferred until the loyalty points are redeemed or expire. As of December 31, 2024 and 2023, the Company had deferred revenue of $457,695 and $273,665, respectively, due to its loyalty reward program, that is included in accrued expenses in the consolidated balance sheets. Sales Tax The Company collects from certain customers and remits to governmental agencies sales and other taxes. The Company reports the collection of these taxes on a net basis and such taxes are excluded from revenues. Income Taxes Income taxes are provided for the tax effects of