1. Description of Business and Summary
Vireo Growth Inc. (\u201cVireo Growth\u201d or the \u201cCompany\u201d) (formerly, Goodness Growth Holdings, Inc.) was incorporated under the Alberta Business Corporations Act on November\u00a023, 2004. The Company was previously listed on the Canadian Securities Exchange (the \u201cCSE\u201d) under ticker symbol \u201cGDNS\u201d. On July 8, 2024, the Company changed its name to Vireo Growth Inc., its ticker symbol on the CSE to \u201cVREO\u201d and its ticker symbol on the OTCQX to \u201cVREOF.\u201d
Vireo Growth is a cannabis company whose mission is to provide safe access, quality products and value to its customers while supporting its local communities through active participation and restorative justice programs. Vireo Growth operates cannabis cultivation, production, and dispensary facilities in Maryland, Minnesota, and New York, and formerly in Arizona and New Mexico.
While marijuana and CBD-infused products are legal under the laws of several U.S. states (with vastly differing restrictions), the United States Federal Controlled Substances Act classifies all \u201cmarijuana\u201d as a Schedule I drug. Under U.S. federal law, a Schedule I drug or substance has a high potential for abuse, no accepted medical use in the United States, and a lack of safety for the use of the drug under medical supervision. Recently some federal officials have attempted to distinguish between medical cannabis use as necessary, but adult-use as \u201cstill a violation of federal law.\u201d At the present time, the distinction between \u201cmedical marijuana\u201d and \u201cadult-use marijuana\u201d does not exist under U.S. federal law.
Update on Verano Litigation
On October 21, 2022, Vireo Growth commenced an action in the Supreme Court of British Columbia against Verano Holdings Corp. (\"Verano\") after Verano repudiated the Arrangement Agreement with the Company dated January 31, 2022. The Company is seeking damages, costs and interest, based on Verano's breach of contract and of its duty of good faith and honest performance.
On May 2, 2024, the Company filed an application with the Supreme Court of British Columbia for summary determination. The Company is seeking substantial damages, specifically $860.9 million, as well as other costs and legal fees, based on Verano\u2019s breach of contract and of its duty of good faith and honest performance.
Due to uncertainties inherent in litigation, it is not possible for Vireo Growth to predict the timing or final outcome of the legal proceedings against Verano or to determine the amount of damages, if any, that may be awarded.
The termination of the Arrangement Agreement gives rise to substantial doubt about the Company\u2019s ability to continue as a going concern. Company management is working with the Company\u2019s lenders, counsel, and other applicable parties to implement a plan to effectively mitigate the conditions giving rise to substantial doubt. Elements of this plan may include, but are not limited to, asset sales, debt restructuring, and capital raises. The accompanying consolidated financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. However, the Company\u2019s continuance as a going concern is dependent on its future profitability and implementation of the aforementioned plan. The Company may not be successful in these efforts.
"}]},{"name":"rpt:f-383","factDimensions":{"xbrl:concept":"us-gaap:LossContingencyDamagesSoughtValue","xbrl:period":"2024-05-02T00:00:00/2024-05-03T00:00:00","xbrl:entity":"cik:0001771706","xbrl:unit":"iso4217:USD","us-gaap:TypeOfArrangementAxis":"vreof:ArrangementAgreementWithVeranoHoldingsCorpMember"},"factValues":[{"value":"860900000","decimals":-5}]},{"name":"rpt:f-384","factDimensions":{"xbrl:concept":"us-gaap:SignificantAccountingPoliciesTextBlock","xbrl:period":"2024-01-01T00:00:00/2024-10-01T00:00:00","xbrl:entity":"cik:0001771706"},"factValues":[{"value":"2. Summary of Significant Accounting Policies
Significant Accounting Policies
The Company\u2019s significant accounting policies are described in Note 2 to the Company\u2019s consolidated financial statements included in the Annual Report on Form 10-K for the fiscal year ended December 31, 2023, filed with the United States Securities and Exchange Commission (\u201cSEC\u201d) on April 1, 2024, (the \"Annual Financial Statements\"), as amended on April 29, 2024. There have been no material changes to the Company\u2019s significant accounting policies.
Basis of presentation
The accompanying unaudited condensed consolidated financial statements reflect the accounts of the Company. The information included in these statements should be read in conjunction with the Annual Financial Statements. The unaudited condensed consolidated financial statements were prepared in accordance with generally accepted accounting principles in the United States of America (\u201cU.S. GAAP\u201d) and pursuant to the rules\u00a0and regulations of the SEC. In the opinion of management, the financial data presented includes all adjustments necessary to present fairly the financial position, results of operations and cash flows for the interim periods presented. Results of interim periods should not be considered indicative of the results for the full year. These unaudited interim condensed consolidated financial statements include estimates and assumptions of management that affect the amounts reported in the unaudited condensed consolidated financial statements. Actual results could differ from these estimates.
Basis of consolidation
These unaudited condensed consolidated financial statements include the accounts of the following entities wholly owned, or effectively controlled by the Company during the period ended September 30, 2024:
Name of entity | \u00a0\u00a0\u00a0\u00a0 | Place\u00a0of\u00a0\u00a0incorporation |
EHF Cultivation Management, LLC | Arizona, USA | |
Elephant Head Farm, LLC | \u00a0 | Arizona, USA |
HiColor, LLC | \u00a0 | Minnesota, USA |
MaryMed, LLC | \u00a0 | Maryland, USA |
Mayflower Botanicals, Inc. | \u00a0 | Massachusetts, USA |
Minnesota Medical Solutions, LLC | \u00a0 | Minnesota, USA |
MJ Distributing C201, LLC | Nevada, USA | |
MJ Distributing P132, LLC | Nevada, USA | |
Resurgent Biosciences, Inc. | \u00a0 | Delaware, USA |
Retail Management Associates, LLC | \u00a0 | Arizona, USA |
Verdant Grove, Inc. | \u00a0 | Massachusetts, USA |
Vireo Health de Puerto Rico, Inc. | \u00a0 | Puerto Rico |
Vireo Health of Nevada 1, LLC | \u00a0 | Nevada, USA |
Vireo Health of New Mexico, LLC | \u00a0 | Delaware, USA |
Vireo Health of New York, LLC | \u00a0 | New York, USA |
Vireo Health of Puerto Rico, LLC | \u00a0 | Delaware, USA |
Vireo Health, Inc. | \u00a0 | Delaware, USA |
Vireo of Charm City, LLC | Maryland, USA | |
XAAS Agro, Inc. | \u00a0 | Puerto Rico |
The entities listed are wholly owned or effectively controlled by the Company and have been formed or acquired to support the intended operations of the Company, and all intercompany transactions and balances have been eliminated in the Company's unaudited condensed consolidated financial statements. Red Barn Growers, Inc. and all New Mexico assets and liabilities were divested in June of 2023.
Recently adopted accounting pronouncements
None.
Net loss per share
Basic net loss per share is computed by dividing reported net loss by the weighted average number of common shares outstanding for the reported period. Diluted net loss per share reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock of the Company during the reporting period. Diluted net loss per share is computed by dividing net loss by the sum of the weighted average number of common shares and the number of potential dilutive common share equivalents outstanding during the period. Potential
dilutive common share equivalents consist of the incremental common shares issuable upon the exercise of vested share options and the incremental shares issuable upon conversion of the convertible notes. Potential dilutive common share equivalents consist of stock options, warrants, and restricted stock units.
In computing diluted earnings per share, common share equivalents are not considered in periods in which a net loss is reported, as the inclusion of the common share equivalents would be anti-dilutive. The Company recorded a net loss for the three and nine month periods ended September 30, 2024, and 2023, presented in these financial statements, and as such there is no difference between the Company\u2019s basic and diluted net loss per share for these periods.
The anti-dilutive shares outstanding for the nine month periods ended September 30, 2024, and 2023 were as follows:
September 30, | ||||
2024 | \u00a0\u00a0\u00a0\u00a0 | 2023 | ||
Stock options | 31,440,328 | \u00a0 | 29,633,217 | |
Warrants | 19,134,522 | \u00a0 | 9,437,649 | |
RSUs | 4,107,749 | 2,714,491 | ||
Convertible debt | \u2014 | 42,074,926 | ||
Total | 54,682,599 | \u00a0 | 83,860,283 |
Revenue Recognition
The Company\u2019s primary source of revenue is from wholesale of cannabis products to dispensary locations and direct retail sales to eligible customers at Company-owned dispensaries. Substantially all of the Company\u2019s retail revenue is from the direct sale of cannabis products to adult-use and medical customers.
The following table represents the Company\u2019s disaggregated revenue by source:
Three Months Ended | Nine Months Ended | |||||||||||
\u00a0\u00a0\u00a0\u00a0 | 2024 | \u00a0\u00a0\u00a0\u00a0 | 2023 | 2024 | \u00a0\u00a0\u00a0\u00a0 | 2023 | ||||||
Retail | $ | 19,740,787 | $ | 20,147,074 | $ | 60,159,246 | $ | 53,761,973 | ||||
Wholesale | \u00a0 | 5,424,556 | \u00a0 | 4,528,071 | \u00a0 | 14,201,659 | \u00a0 | 10,198,152 | ||||
Total | $ | 25,165,343 | $ | 24,675,145 | $ | 74,360,905 | $ | 63,960,125 |
New accounting pronouncements not yet adopted
ASU 2023-07\u00a0In November 2023, the Financial Accounting Standards Board (\u201cFASB\u201d) issued Accounting Standards Update (\"ASU\") 2023-07,\u00a0Improvements to Reportable Segment Disclosures (Topic 280). This ASU updates reportable segment disclosure requirements by requiring disclosures of significant reportable segment expenses that are regularly provided to the Chief Operating Decision Maker (\u201cCODM\u201d) and included within each reported measure of a segment's profit or loss. This ASU also requires disclosure of the title and position of the individual identified as the CODM and an explanation of how the CODM uses the reported measures of a segment\u2019s profit or loss in assessing segment performance and deciding how to allocate resources. The ASU is effective for annual periods beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024.\u00a0The Company has not adopted the standard for the interim periods presented herein, but will adopt the standard on or before December 31, 2024. This ASU will result in additional required disclosures when adopted, where applicable.
ASU 2023-09\u00a0In December 2023, the FASB issued ASU 2023-09,\u00a0Improvements to Income Tax Disclosures (Topic 740). The ASU requires disaggregated information about a reporting entity\u2019s effective tax rate reconciliation as well as additional information on income taxes paid. The ASU is effective on a prospective basis for annual periods beginning after December 15, 2024. Early adoption is also permitted for annual financial statements that have not yet been issued or made available for issuance. Once adopted, this ASU will result in additional disclosures.
"}]},{"name":"rpt:f-385","factDimensions":{"xbrl:concept":"us-gaap:BasisOfAccountingPolicyPolicyTextBlock","xbrl:period":"2024-01-01T00:00:00/2024-10-01T00:00:00","xbrl:entity":"cik:0001771706"},"factValues":[{"value":"Basis of presentation
The accompanying unaudited condensed consolidated financial statements reflect the accounts of the Company. The information included in these statements should be read in conjunction with the Annual Financial Statements. The unaudited condensed consolidated financial statements were prepared in accordance with generally accepted accounting principles in the United States of America (\u201cU.S. GAAP\u201d) and pursuant to the rules\u00a0and regulations of the SEC. In the opinion of management, the financial data presented includes all adjustments necessary to present fairly the financial position, results of operations and cash flows for the interim periods presented. Results of interim periods should not be considered indicative of the results for the full year. These unaudited interim condensed consolidated financial statements include estimates and assumptions of management that affect the amounts reported in the unaudited condensed consolidated financial statements. Actual results could differ from these estimates.
"}]},{"name":"rpt:f-386","factDimensions":{"xbrl:concept":"us-gaap:ConsolidationPolicyTextBlock","xbrl:period":"2024-01-01T00:00:00/2024-10-01T00:00:00","xbrl:entity":"cik:0001771706"},"factValues":[{"value":"Basis of consolidation
These unaudited condensed consolidated financial statements include the accounts of the following entities wholly owned, or effectively controlled by the Company during the period ended September 30, 2024:
Name of entity | \u00a0\u00a0\u00a0\u00a0 | Place\u00a0of\u00a0\u00a0incorporation |
EHF Cultivation Management, LLC | Arizona, USA | |
Elephant Head Farm, LLC | \u00a0 | Arizona, USA |
HiColor, LLC | \u00a0 | Minnesota, USA |
MaryMed, LLC | \u00a0 | Maryland, USA |
Mayflower Botanicals, Inc. | \u00a0 | Massachusetts, USA |
Minnesota Medical Solutions, LLC | \u00a0 | Minnesota, USA |
MJ Distributing C201, LLC | Nevada, USA | |
MJ Distributing P132, LLC | Nevada, USA | |
Resurgent Biosciences, Inc. | \u00a0 | Delaware, USA |
Retail Management Associates, LLC | \u00a0 | Arizona, USA |
Verdant Grove, Inc. | \u00a0 | Massachusetts, USA |
Vireo Health de Puerto Rico, Inc. | \u00a0 | Puerto Rico |
Vireo Health of Nevada 1, LLC | \u00a0 | Nevada, USA |
Vireo Health of New Mexico, LLC | \u00a0 | Delaware, USA |
Vireo Health of New York, LLC | \u00a0 | New York, USA |
Vireo Health of Puerto Rico, LLC | \u00a0 | Delaware, USA |
Vireo Health, Inc. | \u00a0 | Delaware, USA |
Vireo of Charm City, LLC | Maryland, USA | |
XAAS Agro, Inc. | \u00a0 | Puerto Rico |
The entities listed are wholly owned or effectively controlled by the Company and have been formed or acquired to support the intended operations of the Company, and all intercompany transactions and balances have been eliminated in the Company's unaudited condensed consolidated financial statements. Red Barn Growers, Inc. and all New Mexico assets and liabilities were divested in June of 2023.
"}]},{"name":"rpt:f-387","factDimensions":{"xbrl:concept":"us-gaap:ScheduleOfInvestmentsInAndAdvancesToAffiliatesScheduleOfInvestmentsTableTextBlock","xbrl:period":"2024-01-01T00:00:00/2024-10-01T00:00:00","xbrl:entity":"cik:0001771706"},"factValues":[{"value":"Name of entity | \u00a0\u00a0\u00a0\u00a0 | Place\u00a0of\u00a0\u00a0incorporation |
EHF Cultivation Management, LLC | Arizona, USA | |
Elephant Head Farm, LLC | \u00a0 | Arizona, USA |
HiColor, LLC | \u00a0 | Minnesota, USA |
MaryMed, LLC | \u00a0 | Maryland, USA |
Mayflower Botanicals, Inc. | \u00a0 | Massachusetts, USA |
Minnesota Medical Solutions, LLC | \u00a0 | Minnesota, USA |
MJ Distributing C201, LLC | Nevada, USA | |
MJ Distributing P132, LLC | Nevada, USA | |
Resurgent Biosciences, Inc. | \u00a0 | Delaware, USA |
Retail Management Associates, LLC | \u00a0 | Arizona, USA |
Verdant Grove, Inc. | \u00a0 | Massachusetts, USA |
Vireo Health de Puerto Rico, Inc. | \u00a0 | Puerto Rico |
Vireo Health of Nevada 1, LLC | \u00a0 | Nevada, USA |
Vireo Health of New Mexico, LLC | \u00a0 | Delaware, USA |
Vireo Health of New York, LLC | \u00a0 | New York, USA |
Vireo Health of Puerto Rico, LLC | \u00a0 | Delaware, USA |
Vireo Health, Inc. | \u00a0 | Delaware, USA |
Vireo of Charm City, LLC | Maryland, USA | |
XAAS Agro, Inc. | \u00a0 | Puerto Rico |
Recently adopted accounting pronouncements
None.
New accounting pronouncements not yet adopted
ASU 2023-07\u00a0In November 2023, the Financial Accounting Standards Board (\u201cFASB\u201d) issued Accounting Standards Update (\"ASU\") 2023-07,\u00a0Improvements to Reportable Segment Disclosures (Topic 280). This ASU updates reportable segment disclosure requirements by requiring disclosures of significant reportable segment expenses that are regularly provided to the Chief Operating Decision Maker (\u201cCODM\u201d) and included within each reported measure of a segment's profit or loss. This ASU also requires disclosure of the title and position of the individual identified as the CODM and an explanation of how the CODM uses the reported measures of a segment\u2019s profit or loss in assessing segment performance and deciding how to allocate resources. The ASU is effective for annual periods beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024.\u00a0The Company has not adopted the standard for the interim periods presented herein, but will adopt the standard on or before December 31, 2024. This ASU will result in additional required disclosures when adopted, where applicable.
ASU 2023-09\u00a0In December 2023, the FASB issued ASU 2023-09,\u00a0Improvements to Income Tax Disclosures (Topic 740). The ASU requires disaggregated information about a reporting entity\u2019s effective tax rate reconciliation as well as additional information on income taxes paid. The ASU is effective on a prospective basis for annual periods beginning after December 15, 2024. Early adoption is also permitted for annual financial statements that have not yet been issued or made available for issuance. Once adopted, this ASU will result in additional disclosures.
"}]},{"name":"rpt:f-389","factDimensions":{"xbrl:concept":"us-gaap:EarningsPerSharePolicyTextBlock","xbrl:period":"2024-01-01T00:00:00/2024-10-01T00:00:00","xbrl:entity":"cik:0001771706"},"factValues":[{"value":"Net loss per share
Basic net loss per share is computed by dividing reported net loss by the weighted average number of common shares outstanding for the reported period. Diluted net loss per share reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock of the Company during the reporting period. Diluted net loss per share is computed by dividing net loss by the sum of the weighted average number of common shares and the number of potential dilutive common share equivalents outstanding during the period. Potential
dilutive common share equivalents consist of the incremental common shares issuable upon the exercise of vested share options and the incremental shares issuable upon conversion of the convertible notes. Potential dilutive common share equivalents consist of stock options, warrants, and restricted stock units.
In computing diluted earnings per share, common share equivalents are not considered in periods in which a net loss is reported, as the inclusion of the common share equivalents would be anti-dilutive. The Company recorded a net loss for the three and nine month periods ended September 30, 2024, and 2023, presented in these financial statements, and as such there is no difference between the Company\u2019s basic and diluted net loss per share for these periods.
The anti-dilutive shares outstanding for the nine month periods ended September 30, 2024, and 2023 were as follows:
September 30, | ||||
2024 | \u00a0\u00a0\u00a0\u00a0 | 2023 | ||
Stock options | 31,440,328 | \u00a0 | 29,633,217 | |
Warrants | 19,134,522 | \u00a0 | 9,437,649 | |
RSUs | 4,107,749 | 2,714,491 | ||
Convertible debt | \u2014 | 42,074,926 | ||
Total | 54,682,599 | \u00a0 | 83,860,283 |
September 30, | ||||
2024 | \u00a0\u00a0\u00a0\u00a0 | 2023 | ||
Stock options | 31,440,328 | \u00a0 | 29,633,217 | |
Warrants | 19,134,522 | \u00a0 | 9,437,649 | |
RSUs | 4,107,749 | 2,714,491 | ||
Convertible debt | \u2014 | 42,074,926 | ||
Total | 54,682,599 | \u00a0 | 83,860,283 |
Revenue Recognition
The Company\u2019s primary source of revenue is from wholesale of cannabis products to dispensary locations and direct retail sales to eligible customers at Company-owned dispensaries. Substantially all of the Company\u2019s retail revenue is from the direct sale of cannabis products to adult-use and medical customers.
The following table represents the Company\u2019s disaggregated revenue by source:
Three Months Ended | Nine Months Ended | |||||||||||
\u00a0\u00a0\u00a0\u00a0 | 2024 | \u00a0\u00a0\u00a0\u00a0 | 2023 | 2024 | \u00a0\u00a0\u00a0\u00a0 | 2023 | ||||||
Retail | $ | 19,740,787 | $ | 20,147,074 | $ | 60,159,246 | $ | 53,761,973 | ||||
Wholesale | \u00a0 | 5,424,556 | \u00a0 | 4,528,071 | \u00a0 | 14,201,659 | \u00a0 | 10,198,152 | ||||
Total | $ | 25,165,343 | $ | 24,675,145 | $ | 74,360,905 | $ | 63,960,125 |
Three Months Ended | Nine Months Ended | |||||||||||
\u00a0\u00a0\u00a0\u00a0 | 2024 | \u00a0\u00a0\u00a0\u00a0 | 2023 | 2024 | \u00a0\u00a0\u00a0\u00a0 | 2023 | ||||||
Retail | $ | 19,740,787 | $ | 20,147,074 | $ | 60,159,246 | $ | 53,761,973 | ||||
Wholesale | \u00a0 | 5,424,556 | \u00a0 | 4,528,071 | \u00a0 | 14,201,659 | \u00a0 | 10,198,152 | ||||
Total | $ | 25,165,343 | $ | 24,675,145 | $ | 74,360,905 | $ | 63,960,125 |
3. Business Combinations and Dispositions
Assets Held for Sale
As of September 30, 2024, the Company identified property and equipment, deposits, and lease assets and liabilities associated with the businesses in New York, Nevada, and Massachusetts with carrying amounts that are expected to be recovered principally through sale or disposal rather than through continuing use. The sale of these assets and liabilities is highly probable, they can be sold in their immediate condition, and the sales are expected to occur within the next twelve months. As such, these assets and liabilities have been classified as \u201cheld for sale.\u201d Management does not believe these divestitures represent a strategic shift that has or will have a major effect on an entity\u2019s operations and financial results, and as such, none of these divestitures are considered a discontinued operation. The carrying value of these net assets did not exceed fair value less expected cost to sell, and as such, the Company recorded\u00a0no\u00a0impairment loss. Assets and liabilities held for sale are as follows:
\u00a0\u00a0\u00a0\u00a0 | \u00a0\u00a0\u00a0\u00a0 | |||||
Assets held for sale | \u00a0 | September 30, | \u00a0\u00a0\u00a0\u00a0 | December 31, | ||
2024 | 2023 | |||||
Property and equipment | $ | 88,793,895 | $ | 86,864,965 | ||
Intangible assets | 972,000 | 662,500 | ||||
Operating lease, right-of-use asset | 3,381,612 | 3,381,612 | ||||
Deposits | 1,870,233 | 304,194 | ||||
Total assets held for sale | $ | 95,017,740 | $ | 91,213,271 | ||
Liabilities held for sale | \u00a0 | \u00a0\u00a0 | \u00a0 | |||
Right of Use Liability | $ | 88,437,021 | $ | 88,326,323 | ||
Total liabilities held for sale | $ | 88,437,021 | $ | 88,326,323 |
Current assets and liabilities held by our New York business have not been classified as held for sale. Pre-tax operating losses attributable to the New York business were $12,152,587 and $10,099,014\u00a0for the nine months ended September 30, 2024 and 2023, respectively.
"}]},{"name":"rpt:f-415","factDimensions":{"xbrl:concept":"us-gaap:ImpairmentOfLongLivedAssetsToBeDisposedOf","xbrl:period":"2024-01-01T00:00:00/2024-10-01T00:00:00","xbrl:entity":"cik:0001771706","xbrl:unit":"iso4217:USD","us-gaap:DisposalGroupClassificationAxis":"us-gaap:DisposalGroupHeldforsaleNotDiscontinuedOperationsMember"},"factValues":[{"value":"0","decimals":0}]},{"name":"rpt:f-416","factDimensions":{"xbrl:concept":"us-gaap:ScheduleOfDisposalGroupsIncludingDiscontinuedOperationsIncomeStatementBalanceSheetAndAdditionalDisclosuresTextBlock","xbrl:period":"2024-01-01T00:00:00/2024-10-01T00:00:00","xbrl:entity":"cik:0001771706"},"factValues":[{"value":"\u00a0\u00a0\u00a0\u00a0 | \u00a0\u00a0\u00a0\u00a0 | |||||
Assets held for sale | \u00a0 | September 30, | \u00a0\u00a0\u00a0\u00a0 | December 31, | ||
2024 | 2023 | |||||
Property and equipment | $ | 88,793,895 | $ | 86,864,965 | ||
Intangible assets | 972,000 | 662,500 | ||||
Operating lease, right-of-use asset | 3,381,612 | 3,381,612 | ||||
Deposits | 1,870,233 | 304,194 | ||||
Total assets held for sale | $ | 95,017,740 | $ | 91,213,271 | ||
Liabilities held for sale | \u00a0 | \u00a0\u00a0 | \u00a0 | |||
Right of Use Liability | $ | 88,437,021 | $ | 88,326,323 | ||
Total liabilities held for sale | $ | 88,437,021 | $ | 88,326,323 |
4. Fair Value Measurements
The Company complies with ASC 820, Fair Value Measurements, for its financial assets and liabilities that are re-measured and reported at fair value at each reporting period, and non-financial assets and liabilities that are re-measured and reported at fair value at least annually. In general, fair values determined by Level 1 inputs utilize quoted prices (unadjusted) in active markets for identical assets or liabilities. Fair values determined by Level 2 inputs utilize data points that are observable such as quoted prices, interest rates and yield curves. Fair values determined by Level 3 inputs are unobservable data points for the asset or liability, and includes situations where there is little, if any, market activity for the asset or liability.
Items measured at fair value on a non-recurring basis
The Company\u2019s non-financial assets, such as prepayments and other current assets, long lived assets, including property and equipment and intangible assets, are measured at fair value when there is an indicator of impairment and are recorded at fair value only when an impairment charge is recognized. No indicators of impairment existed as of September 30, 2024, and therefore no impairment charges were recorded.
The carrying value of the Company\u2019s accounts receivable, accounts payable, and accrued liabilities approximate their fair value due to their short-term nature, and the carrying value of notes receivable, long-term debt, and convertible debt approximates fair value as they bear a market rate of interest.
The carrying value of the Company\u2019s warrants held \u00a0utilize Level 3 inputs given there is no market activity for the asset. The inputs used are further described in Note 19.
"}]},{"name":"rpt:f-434","factDimensions":{"xbrl:concept":"us-gaap:AssetImpairmentCharges","xbrl:period":"2024-01-01T00:00:00/2024-10-01T00:00:00","xbrl:entity":"cik:0001771706","xbrl:unit":"iso4217:USD"},"factValues":[{"value":"0","decimals":0}]},{"name":"rpt:f-435","factDimensions":{"xbrl:concept":"us-gaap:AccountsAndNontradeReceivableTextBlock","xbrl:period":"2024-01-01T00:00:00/2024-10-01T00:00:00","xbrl:entity":"cik:0001771706"},"factValues":[{"value":"5. Accounts Receivable
Trade receivables are comprised of the following items:
September 30, | December 31, | |||||
\u00a0\u00a0\u00a0\u00a0 | 2024 | \u00a0\u00a0\u00a0\u00a0 | 2023 | |||
Trade receivable | $ | 2,673,965 | $ | 2,256,763 | ||
Tax withholding receivable | 174,660 | 174,660 | ||||
Other | \u00a0 | \u2014 | \u00a0 | 655,217 | ||
Total | $ | 2,848,625 | $ | 3,086,640 |
Included in the trade receivables, net balance at September 30, 2024, and December 31, 2023, is an allowance for doubtful accounts of \u00a0$99,736\u00a0and $95,686, respectively.\u00a0Included in the tax withholding receivable, net balance at September 30, 2024, and December 31, 2023, is an allowance for doubtful accounts of $159,275.
"}]},{"name":"rpt:f-436","factDimensions":{"xbrl:concept":"vreof:ScheduleOfTradeReceivablesDisclosureTableTextBlock","xbrl:period":"2024-01-01T00:00:00/2024-10-01T00:00:00","xbrl:entity":"cik:0001771706"},"factValues":[{"value":"September 30, | December 31, | |||||
\u00a0\u00a0\u00a0\u00a0 | 2024 | \u00a0\u00a0\u00a0\u00a0 | 2023 | |||
Trade receivable | $ | 2,673,965 | $ | 2,256,763 | ||
Tax withholding receivable | 174,660 | 174,660 | ||||
Other | \u00a0 | \u2014 | \u00a0 | 655,217 | ||
Total | $ | 2,848,625 | $ | 3,086,640 |
6. Notes Receivable
As of September 30, 2024, the Company had $0 (December 31, 2023 - $3,750,000) in notes receivable. During the nine months ended September 30, 2024, the Company received\u00a0$3,600,000\u00a0in proceeds related to the repayment of the $3,750,000\u00a0note receivable, which was consideration received in connection with the divestiture of the Company\u2019s Pennsylvania operations in 2020. The Company considers the note receivable to be fully paid. The $150,000 difference between the face value of the note and proceeds received is included in other expense on the unaudited condensed consolidated statements of net loss and comprehensive loss.
"}]},{"name":"rpt:f-449","factDimensions":{"xbrl:concept":"us-gaap:FinancingReceivableExcludingAccruedInterestAfterAllowanceForCreditLossCurrent","xbrl:period":"2024-10-01T00:00:00","xbrl:entity":"cik:0001771706","xbrl:unit":"iso4217:USD"},"factValues":[{"value":"0","decimals":0}]},{"name":"rpt:f-450","factDimensions":{"xbrl:concept":"us-gaap:FinancingReceivableExcludingAccruedInterestAfterAllowanceForCreditLossCurrent","xbrl:period":"2024-01-01T00:00:00","xbrl:entity":"cik:0001771706","xbrl:unit":"iso4217:USD"},"factValues":[{"value":"3750000","decimals":0}]},{"name":"rpt:f-451","factDimensions":{"xbrl:concept":"us-gaap:ProceedsFromCollectionOfNotesReceivable","xbrl:period":"2024-01-01T00:00:00/2024-10-01T00:00:00","xbrl:entity":"cik:0001771706","xbrl:unit":"iso4217:USD"},"factValues":[{"value":"3600000","decimals":0}]},{"name":"rpt:f-452","factDimensions":{"xbrl:concept":"us-gaap:DisposalGroupIncludingDiscontinuedOperationConsideration","xbrl:period":"2024-10-01T00:00:00","xbrl:entity":"cik:0001771706","xbrl:unit":"iso4217:USD","us-gaap:IncomeStatementBalanceSheetAndAdditionalDisclosuresByDisposalGroupsIncludingDiscontinuedOperationsAxis":"vreof:PennsylvaniaMedicalSolutionsLlcMember"},"factValues":[{"value":"3750000","decimals":0}]},{"name":"rpt:f-453","factDimensions":{"xbrl:concept":"vreof:NotesReceivableDecreaseForgiveness","xbrl:period":"2024-01-01T00:00:00/2024-10-01T00:00:00","xbrl:entity":"cik:0001771706","xbrl:unit":"iso4217:USD"},"factValues":[{"value":"150000","decimals":0}]},{"name":"rpt:f-454","factDimensions":{"xbrl:concept":"us-gaap:InventoryDisclosureTextBlock","xbrl:period":"2024-01-01T00:00:00/2024-10-01T00:00:00","xbrl:entity":"cik:0001771706"},"factValues":[{"value":"7. Inventory
Inventory is comprised of the following items:
\u00a0\u00a0\u00a0\u00a0 | September 30 | December 31, | ||||
\u00a0\u00a0\u00a0\u00a0 | 2024 | \u00a0\u00a0\u00a0\u00a0 | 2023 | |||
Work-in-progress | $ | 13,118,519 | $ | 13,058,348 | ||
Finished goods | \u00a0 | 5,805,958 | \u00a0 | 5,278,331 | ||
Other | \u00a0 | 921,450 | \u00a0 | 949,191 | ||
Total | $ | 19,845,927 | $ | 19,285,870 |
Inventory is written down for any obsolescence, spoilage and excess inventory or when the net realizable value of inventory is less than the carrying value. Inventory valuation adjustments included in cost of sales on the statements of net loss and comprehensive loss is comprised of the following:
\u00a0\u00a0\u00a0\u00a0 | Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||
\u00a0\u00a0\u00a0\u00a0 | 2024 | \u00a0\u00a0\u00a0\u00a0 | 2023 | 2024 | \u00a0\u00a0\u00a0\u00a0 | 2023 | ||||||
Work-in-progress | $ | 433,283 | $ | 1,024,225 | $ | 231,583 | $ | 1,580,264 | ||||
Finished goods | \u00a0 | (40,283) | \u00a0 | (40,029) | \u00a0 | (101,583) | \u00a0 | (16,392) | ||||
Total | $ | 393,000 | $ | 984,196 | $ | 130,000 | $ | 1,563,872 |
"}]},{"name":"rpt:f-455","factDimensions":{"xbrl:concept":"us-gaap:ScheduleOfInventoryCurrentTableTextBlock","xbrl:period":"2024-01-01T00:00:00/2024-10-01T00:00:00","xbrl:entity":"cik:0001771706"},"factValues":[{"value":"
\u00a0\u00a0\u00a0\u00a0 | September 30 | December 31, | ||||
\u00a0\u00a0\u00a0\u00a0 | 2024 | \u00a0\u00a0\u00a0\u00a0 | 2023 | |||
Work-in-progress | $ | 13,118,519 | $ | 13,058,348 | ||
Finished goods | \u00a0 | 5,805,958 | \u00a0 | 5,278,331 | ||
Other | \u00a0 | 921,450 | \u00a0 | 949,191 | ||
Total | $ | 19,845,927 | $ | 19,285,870 |
\u00a0\u00a0\u00a0\u00a0 | Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||
\u00a0\u00a0\u00a0\u00a0 | 2024 | \u00a0\u00a0\u00a0\u00a0 | 2023 | 2024 | \u00a0\u00a0\u00a0\u00a0 | 2023 | ||||||
Work-in-progress | $ | 433,283 | $ | 1,024,225 | $ | 231,583 | $ | 1,580,264 | ||||
Finished goods | \u00a0 | (40,283) | \u00a0 | (40,029) | \u00a0 | (101,583) | \u00a0 | (16,392) | ||||
Total | $ | 393,000 | $ | 984,196 | $ | 130,000 | $ | 1,563,872 |
"}]},{"name":"rpt:f-465","factDimensions":{"xbrl:concept":"vreof:InventoryValuationAdjustmentsWorkInProgress","xbrl:period":"2024-07-01T00:00:00/2024-10-01T00:00:00","xbrl:entity":"cik:0001771706","xbrl:unit":"iso4217:USD"},"factValues":[{"value":"433283","decimals":0}]},{"name":"rpt:f-466","factDimensions":{"xbrl:concept":"vreof:InventoryValuationAdjustmentsWorkInProgress","xbrl:period":"2023-07-01T00:00:00/2023-10-01T00:00:00","xbrl:entity":"cik:0001771706","xbrl:unit":"iso4217:USD"},"factValues":[{"value":"1024225","decimals":0}]},{"name":"rpt:f-467","factDimensions":{"xbrl:concept":"vreof:InventoryValuationAdjustmentsWorkInProgress","xbrl:period":"2024-01-01T00:00:00/2024-10-01T00:00:00","xbrl:entity":"cik:0001771706","xbrl:unit":"iso4217:USD"},"factValues":[{"value":"231583","decimals":0}]},{"name":"rpt:f-468","factDimensions":{"xbrl:concept":"vreof:InventoryValuationAdjustmentsWorkInProgress","xbrl:period":"2023-01-01T00:00:00/2023-10-01T00:00:00","xbrl:entity":"cik:0001771706","xbrl:unit":"iso4217:USD"},"factValues":[{"value":"1580264","decimals":0}]},{"name":"rpt:f-469","factDimensions":{"xbrl:concept":"vreof:InventoryValuationAdjustmentsFinishedGoods","xbrl:period":"2024-07-01T00:00:00/2024-10-01T00:00:00","xbrl:entity":"cik:0001771706","xbrl:unit":"iso4217:USD"},"factValues":[{"value":"-40283","decimals":0}]},{"name":"rpt:f-470","factDimensions":{"xbrl:concept":"vreof:InventoryValuationAdjustmentsFinishedGoods","xbrl:period":"2023-07-01T00:00:00/2023-10-01T00:00:00","xbrl:entity":"cik:0001771706","xbrl:unit":"iso4217:USD"},"factValues":[{"value":"-40029","decimals":0}]},{"name":"rpt:f-471","factDimensions":{"xbrl:concept":"vreof:InventoryValuationAdjustmentsFinishedGoods","xbrl:period":"2024-01-01T00:00:00/2024-10-01T00:00:00","xbrl:entity":"cik:0001771706","xbrl:unit":"iso4217:USD"},"factValues":[{"value":"-101583","decimals":0}]},{"name":"rpt:f-472","factDimensions":{"xbrl:concept":"vreof:InventoryValuationAdjustmentsFinishedGoods","xbrl:period":"2023-01-01T00:00:00/2023-10-01T00:00:00","xbrl:entity":"cik:0001771706","xbrl:unit":"iso4217:USD"},"factValues":[{"value":"-16392","decimals":0}]},{"name":"rpt:f-473","factDimensions":{"xbrl:concept":"us-gaap:InventoryWriteDown","xbrl:period":"2024-07-01T00:00:00/2024-10-01T00:00:00","xbrl:entity":"cik:0001771706","xbrl:unit":"iso4217:USD"},"factValues":[{"value":"393000","decimals":0}]},{"name":"rpt:f-474","factDimensions":{"xbrl:concept":"us-gaap:InventoryWriteDown","xbrl:period":"2023-07-01T00:00:00/2023-10-01T00:00:00","xbrl:entity":"cik:0001771706","xbrl:unit":"iso4217:USD"},"factValues":[{"value":"984196","decimals":0}]},{"name":"rpt:f-475","factDimensions":{"xbrl:concept":"us-gaap:InventoryWriteDown","xbrl:period":"2024-01-01T00:00:00/2024-10-01T00:00:00","xbrl:entity":"cik:0001771706","xbrl:unit":"iso4217:USD"},"factValues":[{"value":"130000","decimals":0}]},{"name":"rpt:f-476","factDimensions":{"xbrl:concept":"us-gaap:InventoryWriteDown","xbrl:period":"2023-01-01T00:00:00/2023-10-01T00:00:00","xbrl:entity":"cik:0001771706","xbrl:unit":"iso4217:USD"},"factValues":[{"value":"1563872","decimals":0}]},{"name":"rpt:f-477","factDimensions":{"xbrl:concept":"vreof:PrepaymentsAndOtherCurrentAssetsTextBlock","xbrl:period":"2024-01-01T00:00:00/2024-10-01T00:00:00","xbrl:entity":"cik:0001771706"},"factValues":[{"value":"
8. Prepayments and other current assets
Prepayments and other current assets are comprised of the following items:
\u00a0\u00a0\u00a0\u00a0 | September 30, | December 31, | ||||
\u00a0\u00a0\u00a0\u00a0 | 2024 | \u00a0\u00a0\u00a0\u00a0 | 2023 | |||
Prepaid Insurance | $ | 1,015,178 | $ | 806,610 | ||
Other Prepaid Expenses | \u00a0 | 817,813 | \u00a0 | 529,624 | ||
Total | $ | 1,832,991 | $ | 1,336,234 |
"}]},{"name":"rpt:f-478","factDimensions":{"xbrl:concept":"vreof:ScheduleOfPrepaidExpenseAndOtherAssetsCurrentTableTextBlock","xbrl:period":"2024-01-01T00:00:00/2024-10-01T00:00:00","xbrl:entity":"cik:0001771706"},"factValues":[{"value":"
\u00a0\u00a0\u00a0\u00a0 | September 30, | December 31, | ||||
\u00a0\u00a0\u00a0\u00a0 | 2024 | \u00a0\u00a0\u00a0\u00a0 | 2023 | |||
Prepaid Insurance | $ | 1,015,178 | $ | 806,610 | ||
Other Prepaid Expenses | \u00a0 | 817,813 | \u00a0 | 529,624 | ||
Total | $ | 1,832,991 | $ | 1,336,234 |
"}]},{"name":"rpt:f-479","factDimensions":{"xbrl:concept":"us-gaap:PrepaidInsurance","xbrl:period":"2024-10-01T00:00:00","xbrl:entity":"cik:0001771706","xbrl:unit":"iso4217:USD"},"factValues":[{"value":"1015178","decimals":0}]},{"name":"rpt:f-480","factDimensions":{"xbrl:concept":"us-gaap:PrepaidInsurance","xbrl:period":"2024-01-01T00:00:00","xbrl:entity":"cik:0001771706","xbrl:unit":"iso4217:USD"},"factValues":[{"value":"806610","decimals":0}]},{"name":"rpt:f-481","factDimensions":{"xbrl:concept":"us-gaap:OtherPrepaidExpenseCurrent","xbrl:period":"2024-10-01T00:00:00","xbrl:entity":"cik:0001771706","xbrl:unit":"iso4217:USD"},"factValues":[{"value":"817813","decimals":0}]},{"name":"rpt:f-482","factDimensions":{"xbrl:concept":"us-gaap:OtherPrepaidExpenseCurrent","xbrl:period":"2024-01-01T00:00:00","xbrl:entity":"cik:0001771706","xbrl:unit":"iso4217:USD"},"factValues":[{"value":"529624","decimals":0}]},{"name":"rpt:f-483","factDimensions":{"xbrl:concept":"us-gaap:PrepaidExpenseAndOtherAssetsCurrent","xbrl:period":"2024-10-01T00:00:00","xbrl:entity":"cik:0001771706","xbrl:unit":"iso4217:USD"},"factValues":[{"value":"1832991","decimals":0}]},{"name":"rpt:f-484","factDimensions":{"xbrl:concept":"us-gaap:PrepaidExpenseAndOtherAssetsCurrent","xbrl:period":"2024-01-01T00:00:00","xbrl:entity":"cik:0001771706","xbrl:unit":"iso4217:USD"},"factValues":[{"value":"1336234","decimals":0}]},{"name":"rpt:f-485","factDimensions":{"xbrl:concept":"us-gaap:PropertyPlantAndEquipmentDisclosureTextBlock","xbrl:period":"2024-01-01T00:00:00/2024-10-01T00:00:00","xbrl:entity":"cik:0001771706"},"factValues":[{"value":"
9. Property and Equipment, Net
Property and equipment, net consisted of the following:
\u00a0\u00a0\u00a0\u00a0 | September 30 | December 31, | ||||
\u00a0\u00a0\u00a0\u00a0 | 2024 | \u00a0\u00a0\u00a0\u00a0 | 2023 | |||
Land | $ | 863,105 | $ | 863,105 | ||
Buildings and leasehold improvements | \u00a0 | 16,259,882 | \u00a0 | 15,124,915 | ||
Furniture and equipment | \u00a0 | 7,240,644 | \u00a0 | 7,807,250 | ||
Software | \u00a0 | 39,388 | \u00a0 | 242,204 | ||
Vehicles | \u00a0 | 447,478 | \u00a0 | 284,000 | ||
Construction-in-progress | \u00a0 | 7,770,507 | \u00a0 | 128,220 | ||
Right of use asset under finance lease | \u00a0 | 7,572,566 | \u00a0 | 7,938,138 | ||
\u00a0 | 40,193,570 | \u00a0 | 32,387,832 | |||
Less: accumulated depreciation | \u00a0 | (9,684,390) | \u00a0 | (9,096,649) | ||
Total | $ | 30,509,180 | $ | 23,291,183 |
For the nine months ended September 30, 2024, and 2023, total depreciation on property and equipment was $1,901,198 and $2,223,540, respectively. For the nine months ended September 30, 2024, and 2023, accumulated amortization of the right of use asset under finance lease amounted to $2,408,998 and $2,221,116, respectively. The right of use asset under finance lease of $7,572,566 consists of leased processing and cultivation premises. The Company capitalized into inventory $1,678,435 and $1,846,419 relating to depreciation associated with manufacturing equipment and production facilities for the nine months ended September 30, 2024, and 2023, respectively. The capitalized depreciation costs associated are added to inventory and expensed through cost of sales product cost on the unaudited condensed consolidated statements of net loss and comprehensive loss.
As of September 30, 2024 and 2023, in conjunction with the Company\u2019s held for sale assessment and disposal of certain long-lived assets, the Company evaluated whether property and equipment showed any indicators of impairment, and it was determined that the recoverable amount of certain net assets was above book value. As a result, the Company recorded no impairment charge\u00a0on property and equipment, net.
"}]},{"name":"rpt:f-486","factDimensions":{"xbrl:concept":"us-gaap:PropertyPlantAndEquipmentTextBlock","xbrl:period":"2024-01-01T00:00:00/2024-10-01T00:00:00","xbrl:entity":"cik:0001771706"},"factValues":[{"value":"\u00a0\u00a0\u00a0\u00a0 | September 30 | December 31, | ||||
\u00a0\u00a0\u00a0\u00a0 | 2024 | \u00a0\u00a0\u00a0\u00a0 | 2023 | |||
Land | $ | 863,105 | $ | 863,105 | ||
Buildings and leasehold improvements | \u00a0 | 16,259,882 | \u00a0 | 15,124,915 | ||
Furniture and equipment | \u00a0 | 7,240,644 | \u00a0 | 7,807,250 | ||
Software | \u00a0 | 39,388 | \u00a0 | 242,204 | ||
Vehicles | \u00a0 | 447,478 | \u00a0 | 284,000 | ||
Construction-in-progress | \u00a0 | 7,770,507 | \u00a0 | 128,220 | ||
Right of use asset under finance lease | \u00a0 | 7,572,566 | \u00a0 | 7,938,138 | ||
\u00a0 | 40,193,570 | \u00a0 | 32,387,832 | |||
Less: accumulated depreciation | \u00a0 | (9,684,390) | \u00a0 | (9,096,649) | ||
Total | $ | 30,509,180 | $ | 23,291,183 |
10. Leases
Components of lease expenses are listed below:
\u00a0\u00a0\u00a0\u00a0 | September 30, | September 30, | ||||
\u00a0\u00a0\u00a0\u00a0 | 2024 | 2023 | ||||
Finance lease cost | \u00a0\u00a0 | |||||
Amortization of ROU assets | $ | 410,013 | $ | 557,817 | ||
Interest on lease liabilities | \u00a0 | 10,654,530 | \u00a0 | 8,409,687 | ||
Operating lease costs | \u00a0 | 1,412,489 | \u00a0 | 1,472,588 | ||
Total lease costs | $ | 12,477,032 | $ | 10,440,092 |
Future minimum lease payments (principal and interest) on the leases are as follows:
\u00a0\u00a0\u00a0\u00a0 | Operating\u00a0Leases | \u00a0\u00a0\u00a0\u00a0 | Finance\u00a0Leases | \u00a0\u00a0\u00a0\u00a0 | |||||
\u00a0\u00a0\u00a0\u00a0 | September 30, 2024 | \u00a0\u00a0\u00a0\u00a0 | September 30, 2024 | \u00a0\u00a0\u00a0\u00a0 | Total | ||||
2024 | $ | 560,981 | $ | 3,416,902 | $ | 3,977,883 | |||
2025 | \u00a0 | 3,047,603 | \u00a0 | 13,773,155 | \u00a0 | 16,820,758 | |||
2026 | \u00a0 | 2,727,346 | \u00a0 | 14,183,661 | \u00a0 | 16,911,007 | |||
2027 | \u00a0 | 2,474,144 | \u00a0 | 14,606,527 | \u00a0 | 17,080,671 | |||
2028 | \u00a0 | 2,254,049 | \u00a0 | 15,042,128 | \u00a0 | 17,296,177 | |||
Thereafter | \u00a0 | 7,824,515 | \u00a0 | 218,572,918 | \u00a0 | 226,397,433 | |||
Total minimum lease payments | $ | 18,888,638 | $ | 279,595,291 | $ | 298,483,929 | |||
Less discount to net present value | (4,111,939) | \u00a0 | (185,628,604) | \u00a0 | (189,740,543) | ||||
Less liabilities held for sale | (2,837,202) | (85,599,819) | (88,437,021) | ||||||
Present value of lease liability | $ | 11,939,497 | $ | 8,366,868 | $ | 20,306,365 |
The Company has entered into various lease agreements for the use of buildings used in production and retail sales of cannabis products.
On February 22, 2024, the Company executed a lease for cannabis cultivation and manufacturing facilities. Per the terms of the lease the landlord agreed to provide the Company with\u00a0$2,000,000\u00a0of tenant improvement allowances. Rent will not commence until January 1, 2025, at which time monthly base rent will be\u00a0$82,500. Starting January 1, 2025, the Company has the option to purchase the property. The initial purchase price is\u00a0$13,000,000\u00a0increasing by\u00a03%\u00a0at the start of each calendar year until the option expires on December 31, 2028. The lease expires on December 31, 2034.
On February 24, 2023, the Company signed the fourth amendment to the existing lease agreements for the cultivation and processing facilities in New York. The amendment provides for additional tenant improvements of\u00a0$4,000,000\u00a0and increases base rent by\u00a0$50,000\u00a0a month. \u00a0
Supplemental cash flow information related to leases:
\u00a0\u00a0\u00a0\u00a0 | September 30, | |||||
\u00a0\u00a0\u00a0\u00a0 | 2024 | \u00a0\u00a0\u00a0\u00a0 | 2023 | |||
Cash paid for amounts included in the measurement of lease liabilities: | \u00a0\u00a0 | \u00a0 | \u00a0\u00a0 | |||
Lease principal payments - finance | $ | 162,405 | $ | 1,414,698 | ||
Lease principal payments - operating | 633,540 | \u2014 | ||||
Non-cash additions to ROU assets | \u00a0 | 9,270,915 | \u00a0 | \u2014 | ||
Amortization of operating leases | \u00a0 | 531,359 | \u00a0 | 670,782 |
Other information about lease amounts recognized in the financial statements:
\u00a0\u00a0\u00a0\u00a0 | September 30, | \u00a0 | ||||
\u00a0\u00a0\u00a0\u00a0 | 2024 | \u00a0\u00a0\u00a0\u00a0 | 2023 | \u00a0 | ||
Weighted-average remaining lease term (years) \u2013 operating leases | 7.85 | \u00a0 | 4.27 | |||
Weighted-average remaining lease term (years) \u2013 finance leases | 16.34 | \u00a0 | 17.14 | |||
Weighted-average discount rate \u2013 operating leases | 8.16 | %\u00a0\u00a0 | 15.00 | % | ||
Weighted-average discount rate \u2013 finance leases | 16.20 | %\u00a0\u00a0 | 15.31 | % |
"}]},{"name":"rpt:f-517","factDimensions":{"xbrl:concept":"us-gaap:LeaseCostTableTextBlock","xbrl:period":"2024-01-01T00:00:00/2024-10-01T00:00:00","xbrl:entity":"cik:0001771706"},"factValues":[{"value":"
\u00a0\u00a0\u00a0\u00a0 | September 30, | September 30, | ||||
\u00a0\u00a0\u00a0\u00a0 | 2024 | 2023 | ||||
Finance lease cost | \u00a0\u00a0 | |||||
Amortization of ROU assets | $ | 410,013 | $ | 557,817 | ||
Interest on lease liabilities | \u00a0 | 10,654,530 | \u00a0 | 8,409,687 | ||
Operating lease costs | \u00a0 | 1,412,489 | \u00a0 | 1,472,588 | ||
Total lease costs | $ | 12,477,032 | $ | 10,440,092 |
\u00a0\u00a0\u00a0\u00a0 | Operating\u00a0Leases | \u00a0\u00a0\u00a0\u00a0 | Finance\u00a0Leases | \u00a0\u00a0\u00a0\u00a0 | |||||
\u00a0\u00a0\u00a0\u00a0 | September 30, 2024 | \u00a0\u00a0\u00a0\u00a0 | September 30, 2024 | \u00a0\u00a0\u00a0\u00a0 | Total | ||||
2024 | $ | 560,981 | $ | 3,416,902 | $ | 3,977,883 | |||
2025 | \u00a0 | 3,047,603 | \u00a0 | 13,773,155 | \u00a0 | 16,820,758 | |||
2026 | \u00a0 | 2,727,346 | \u00a0 | 14,183,661 | \u00a0 | 16,911,007 | |||
2027 | \u00a0 | 2,474,144 | \u00a0 | 14,606,527 | \u00a0 | 17,080,671 | |||
2028 | \u00a0 | 2,254,049 | \u00a0 | 15,042,128 | \u00a0 | 17,296,177 | |||
Thereafter | \u00a0 | 7,824,515 | \u00a0 | 218,572,918 | \u00a0 | 226,397,433 | |||
Total minimum lease payments | $ | 18,888,638 | $ | 279,595,291 | $ | 298,483,929 | |||
Less discount to net present value | (4,111,939) | \u00a0 | (185,628,604) | \u00a0 | (189,740,543) | ||||
Less liabilities held for sale | (2,837,202) | (85,599,819) | (88,437,021) | ||||||
Present value of lease liability | $ | 11,939,497 | $ | 8,366,868 | $ | 20,306,365 |
"}]},{"name":"rpt:f-527","factDimensions":{"xbrl:concept":"us-gaap:LesseeOperatingLeaseLiabilityMaturityTableTextBlock","xbrl:period":"2024-01-01T00:00:00/2024-10-01T00:00:00","xbrl:entity":"cik:0001771706"},"factValues":[{"value":"
\u00a0\u00a0\u00a0\u00a0 | Operating\u00a0Leases | \u00a0\u00a0\u00a0\u00a0 | Finance\u00a0Leases | \u00a0\u00a0\u00a0\u00a0 | |||||
\u00a0\u00a0\u00a0\u00a0 | September 30, 2024 | \u00a0\u00a0\u00a0\u00a0 | September 30, 2024 | \u00a0\u00a0\u00a0\u00a0 | Total | ||||
2024 | $ | 560,981 | $ | 3,416,902 | $ | 3,977,883 | |||
2025 | \u00a0 | 3,047,603 | \u00a0 | 13,773,155 | \u00a0 | 16,820,758 | |||
2026 | \u00a0 | 2,727,346 | \u00a0 | 14,183,661 | \u00a0 | 16,911,007 | |||
2027 | \u00a0 | 2,474,144 | \u00a0 | 14,606,527 | \u00a0 | 17,080,671 | |||
2028 | \u00a0 | 2,254,049 | \u00a0 | 15,042,128 | \u00a0 | 17,296,177 | |||
Thereafter | \u00a0 | 7,824,515 | \u00a0 | 218,572,918 | \u00a0 | 226,397,433 | |||
Total minimum lease payments | $ | 18,888,638 | $ | 279,595,291 | $ | 298,483,929 | |||
Less discount to net present value | (4,111,939) | \u00a0 | (185,628,604) | \u00a0 | (189,740,543) | ||||
Less liabilities held for sale | (2,837,202) | (85,599,819) | (88,437,021) | ||||||
Present value of lease liability | $ | 11,939,497 | $ | 8,366,868 | $ | 20,306,365 |
\u00a0\u00a0\u00a0\u00a0 | September 30, | |||||
\u00a0\u00a0\u00a0\u00a0 | 2024 | \u00a0\u00a0\u00a0\u00a0 | 2023 | |||
Cash paid for amounts included in the measurement of lease liabilities: | \u00a0\u00a0 | \u00a0 | \u00a0\u00a0 | |||
Lease principal payments - finance | $ | 162,405 | $ | 1,414,698 | ||
Lease principal payments - operating | 633,540 | \u2014 | ||||
Non-cash additions to ROU assets | \u00a0 | 9,270,915 | \u00a0 | \u2014 | ||
Amortization of operating leases | \u00a0 | 531,359 | \u00a0 | 670,782 |
\u00a0\u00a0\u00a0\u00a0 | September 30, | \u00a0 | ||||
\u00a0\u00a0\u00a0\u00a0 | 2024 | \u00a0\u00a0\u00a0\u00a0 | 2023 | \u00a0 | ||
Weighted-average remaining lease term (years) \u2013 operating leases | 7.85 | \u00a0 | 4.27 | |||
Weighted-average remaining lease term (years) \u2013 finance leases | 16.34 | \u00a0 | 17.14 | |||
Weighted-average discount rate \u2013 operating leases | 8.16 | %\u00a0\u00a0 | 15.00 | % | ||
Weighted-average discount rate \u2013 finance leases | 16.20 | %\u00a0\u00a0 | 15.31 | % |
"}]},{"name":"rpt:f-572","factDimensions":{"xbrl:concept":"us-gaap:OperatingLeaseWeightedAverageRemainingLeaseTerm1","xbrl:period":"2024-10-01T00:00:00","xbrl:entity":"cik:0001771706"},"factValues":[{"value":"P7Y10M6D"}]},{"name":"rpt:f-573","factDimensions":{"xbrl:concept":"us-gaap:OperatingLeaseWeightedAverageRemainingLeaseTerm1","xbrl:period":"2023-10-01T00:00:00","xbrl:entity":"cik:0001771706"},"factValues":[{"value":"P4Y3M7D"}]},{"name":"rpt:f-574","factDimensions":{"xbrl:concept":"us-gaap:FinanceLeaseWeightedAverageRemainingLeaseTerm1","xbrl:period":"2024-10-01T00:00:00","xbrl:entity":"cik:0001771706"},"factValues":[{"value":"P16Y4M2D"}]},{"name":"rpt:f-575","factDimensions":{"xbrl:concept":"us-gaap:FinanceLeaseWeightedAverageRemainingLeaseTerm1","xbrl:period":"2023-10-01T00:00:00","xbrl:entity":"cik:0001771706"},"factValues":[{"value":"P17Y1M20D"}]},{"name":"rpt:f-576","factDimensions":{"xbrl:concept":"us-gaap:OperatingLeaseWeightedAverageDiscountRatePercent","xbrl:period":"2024-10-01T00:00:00","xbrl:entity":"cik:0001771706"},"factValues":[{"value":"0.0816","decimals":4}]},{"name":"rpt:f-577","factDimensions":{"xbrl:concept":"us-gaap:OperatingLeaseWeightedAverageDiscountRatePercent","xbrl:period":"2023-10-01T00:00:00","xbrl:entity":"cik:0001771706"},"factValues":[{"value":"0.1500","decimals":4}]},{"name":"rpt:f-578","factDimensions":{"xbrl:concept":"us-gaap:FinanceLeaseWeightedAverageDiscountRatePercent","xbrl:period":"2024-10-01T00:00:00","xbrl:entity":"cik:0001771706"},"factValues":[{"value":"0.1620","decimals":4}]},{"name":"rpt:f-579","factDimensions":{"xbrl:concept":"us-gaap:FinanceLeaseWeightedAverageDiscountRatePercent","xbrl:period":"2023-10-01T00:00:00","xbrl:entity":"cik:0001771706"},"factValues":[{"value":"0.1531","decimals":4}]},{"name":"rpt:f-580","factDimensions":{"xbrl:concept":"us-gaap:IntangibleAssetsDisclosureTextBlock","xbrl:period":"2024-01-01T00:00:00/2024-10-01T00:00:00","xbrl:entity":"cik:0001771706"},"factValues":[{"value":"
11. Intangibles
Intangible assets are comprised of the following items:
\u00a0\u00a0\u00a0\u00a0 | Licenses & Trademarks | ||
Balance, December\u00a031,\u00a02022 | $ | 8,776,946 | |
Divestitures | \u00a0 | (409,239) | |
Additions | 1,090,919 | ||
Amortization | (728,419) | ||
(11,630) | |||
Balance, December\u00a031,\u00a02023 | $ | 8,718,577 | |
Amortization | \u00a0 | (614,437) | |
Balance, September 30, 2024 | $ | 8,104,140 |
Amortization expense for intangibles was\u00a0$204,813\u00a0and\u00a0$614,437\u00a0during the three and nine months ended September 30, 2024, respectively, and\u00a0$204,813 and\u00a0$523,607\u00a0during the three and nine months ended September 30, 2023, respectively. The Company capitalized into inventory $24,778 (2023 - $24,779) and $74,336 (2023 - $24,779) of amortization for the three and nine months ended September 30, 2024, respectively. Amortization expense is recorded in operating expenses on the unaudited condensed consolidated statements of net loss and comprehensive loss.
The Company estimates that amortization expense will be $819,655 next five fiscal years.
"}]},{"name":"rpt:f-581","factDimensions":{"xbrl:concept":"vreof:ScheduleOfFiniteLivedAndIndefiniteLivedIntangibleAssetsByMajorClassTableTextBlock","xbrl:period":"2024-01-01T00:00:00/2024-10-01T00:00:00","xbrl:entity":"cik:0001771706"},"factValues":[{"value":"\u00a0\u00a0\u00a0\u00a0 | Licenses & Trademarks | ||
Balance, December\u00a031,\u00a02022 | $ | 8,776,946 | |
Divestitures | \u00a0 | (409,239) | |
Additions | 1,090,919 | ||
Amortization | (728,419) | ||
(11,630) | |||
Balance, December\u00a031,\u00a02023 | $ | 8,718,577 | |
Amortization | \u00a0 | (614,437) | |
Balance, September 30, 2024 | $ | 8,104,140 |
12. Accounts Payable and Accrued Liabilities
Accounts payable and accrued liabilities are comprised of the following items:
\u00a0\u00a0\u00a0\u00a0 | September 30, | December 31, | ||||
\u00a0\u00a0\u00a0\u00a0 | 2024 | \u00a0\u00a0\u00a0\u00a0 | 2023 | |||
Accounts payable \u2013 trade | $ | 3,757,200 | $ | 1,769,346 | ||
Accrued Expenses | \u00a0 | 4,297,047 | \u00a0 | 4,852,648 | ||
Taxes payable | \u00a0 | 192,716 | \u00a0 | 218,563 | ||
Contract liability | \u00a0 | 921,785 | \u00a0 | 833,832 | ||
Total accounts payable and accrued liabilities | $ | 9,168,748 | $ | 7,674,389 |
"}]},{"name":"rpt:f-600","factDimensions":{"xbrl:concept":"us-gaap:ScheduleOfAccountsPayableAndAccruedLiabilitiesTableTextBlock","xbrl:period":"2024-01-01T00:00:00/2024-10-01T00:00:00","xbrl:entity":"cik:0001771706"},"factValues":[{"value":"
\u00a0\u00a0\u00a0\u00a0 | September 30, | December 31, | ||||
\u00a0\u00a0\u00a0\u00a0 | 2024 | \u00a0\u00a0\u00a0\u00a0 | 2023 | |||
Accounts payable \u2013 trade | $ | 3,757,200 | $ | 1,769,346 | ||
Accrued Expenses | \u00a0 | 4,297,047 | \u00a0 | 4,852,648 | ||
Taxes payable | \u00a0 | 192,716 | \u00a0 | 218,563 | ||
Contract liability | \u00a0 | 921,785 | \u00a0 | 833,832 | ||
Total accounts payable and accrued liabilities | $ | 9,168,748 | $ | 7,674,389 |
"}]},{"name":"rpt:f-601","factDimensions":{"xbrl:concept":"us-gaap:AccountsPayableTradeCurrent","xbrl:period":"2024-10-01T00:00:00","xbrl:entity":"cik:0001771706","xbrl:unit":"iso4217:USD"},"factValues":[{"value":"3757200","decimals":0}]},{"name":"rpt:f-602","factDimensions":{"xbrl:concept":"us-gaap:AccountsPayableTradeCurrent","xbrl:period":"2024-01-01T00:00:00","xbrl:entity":"cik:0001771706","xbrl:unit":"iso4217:USD"},"factValues":[{"value":"1769346","decimals":0}]},{"name":"rpt:f-603","factDimensions":{"xbrl:concept":"us-gaap:AccruedLiabilitiesCurrent","xbrl:period":"2024-10-01T00:00:00","xbrl:entity":"cik:0001771706","xbrl:unit":"iso4217:USD"},"factValues":[{"value":"4297047","decimals":0}]},{"name":"rpt:f-604","factDimensions":{"xbrl:concept":"us-gaap:AccruedLiabilitiesCurrent","xbrl:period":"2024-01-01T00:00:00","xbrl:entity":"cik:0001771706","xbrl:unit":"iso4217:USD"},"factValues":[{"value":"4852648","decimals":0}]},{"name":"rpt:f-605","factDimensions":{"xbrl:concept":"us-gaap:TaxesPayableCurrent","xbrl:period":"2024-10-01T00:00:00","xbrl:entity":"cik:0001771706","xbrl:unit":"iso4217:USD"},"factValues":[{"value":"192716","decimals":0}]},{"name":"rpt:f-606","factDimensions":{"xbrl:concept":"us-gaap:TaxesPayableCurrent","xbrl:period":"2024-01-01T00:00:00","xbrl:entity":"cik:0001771706","xbrl:unit":"iso4217:USD"},"factValues":[{"value":"218563","decimals":0}]},{"name":"rpt:f-607","factDimensions":{"xbrl:concept":"us-gaap:ContractWithCustomerLiabilityCurrent","xbrl:period":"2024-10-01T00:00:00","xbrl:entity":"cik:0001771706","xbrl:unit":"iso4217:USD"},"factValues":[{"value":"921785","decimals":0}]},{"name":"rpt:f-608","factDimensions":{"xbrl:concept":"us-gaap:ContractWithCustomerLiabilityCurrent","xbrl:period":"2024-01-01T00:00:00","xbrl:entity":"cik:0001771706","xbrl:unit":"iso4217:USD"},"factValues":[{"value":"833832","decimals":0}]},{"name":"rpt:f-609","factDimensions":{"xbrl:concept":"us-gaap:AccountsPayableAndAccruedLiabilitiesCurrent","xbrl:period":"2024-10-01T00:00:00","xbrl:entity":"cik:0001771706","xbrl:unit":"iso4217:USD"},"factValues":[{"value":"9168748","decimals":0}]},{"name":"rpt:f-610","factDimensions":{"xbrl:concept":"us-gaap:AccountsPayableAndAccruedLiabilitiesCurrent","xbrl:period":"2024-01-01T00:00:00","xbrl:entity":"cik:0001771706","xbrl:unit":"iso4217:USD"},"factValues":[{"value":"7674389","decimals":0}]},{"name":"rpt:f-611","factDimensions":{"xbrl:concept":"vreof:LongTermDebtExcludingConvertibleDebtTextBlock","xbrl:period":"2024-01-01T00:00:00/2024-10-01T00:00:00","xbrl:entity":"cik:0001771706"},"factValues":[{"value":"
13. Long-Term Debt
During 2017, the Company signed a promissory note payable in the amount of\u00a0$1,010,000. The note bears interest at a rate of\u00a015%\u00a0per annum with interest payments required on a\u00a0monthly\u00a0basis. In 2019, the Company\u2019s promissory note payable in the amount of\u00a0$1,010,000\u00a0was modified to increase the amount payable to\u00a0$1,110,000. The Company repaid the note in full during the nine months ended September 30, 2024.
On November 19, 2021, the Company signed a promissory note payable in the amount of $2,000,000\u00a0in connection with the acquisition of Charm City Medicus, LLC. The note bears an interest rate of\u00a08% per annum with interest payments due on the last day of each calendar\u00a0quarter. On November 19, 2023, the Company and lender amended the note. Per the terms of the amendment, the interest rate was modified to\u00a015%, and the Company paid off $1,000,000\u00a0of principal. \u00a0The remaining principal balance of $1,000,000\u00a0is due on\u00a0November 19, 2024, and the note is secured by\u00a025% of the membership interests in Vireo Health of Charm City, LLC.
On March 25, 2021, the Company entered into a credit agreement for a senior secured delayed draw term loan with an aggregate principal amount of up to $46,000,000\u00a0(the \u201cCredit Facility\u201d), and executed a draw of $26,000,000\u00a0in principal. The unpaid principal amounts outstanding under the Credit Facility bear interest at a rate of (a)\u00a0the U.S. prime rate plus\u00a010.375%, payable monthly in cash, and (b)\u00a02.75% per annum paid in kind (\u201cPIK\u201d) interest payable monthly. In connection with the Credit Facility, the Company also pays a monthly credit monitoring fee in the amount of $130,400\u00a0which is included in interest expense in the consolidated statements of loss and comprehensive loss for the nine months ended September 30, 2024 and 2023.
On November 18, 2021, the Company and lenders amended the Credit Facility to provide for an additional loan of $4,200,000\u00a0with a cash interest rate of\u00a015% per annum and PIK interest of\u00a02% per annum and a maturity date of November 29, 2024. Obligations under the Credit Facility are secured by substantially all the assets of the Company.
On January 31, 2022, Vireo Growth and certain of its subsidiaries, as borrowers (collectively, \u201cBorrowers\u201d), entered into a Third Amendment to the Credit Facility (the \u201cThird Amendment\u201d) providing for additional delayed draw term loans of up to\u00a0$55\u00a0million (the \u201cDelayed Draw Loans\u201d). The cash interest rate on the Delayed Draw Loans under the Third Amendment is equal to the U.S. prime rate plus\u00a010.375%, with a minimum required rate of\u00a013.375%\u00a0per annum, in addition to PIK interest of\u00a02.75%\u00a0per annum.
On March 31, 2023, the Company executed a fifth amendment to its Credit Facility with its senior secured lender, Chicago Atlantic Admin, LLC (the \"Agent\"), an affiliate of Green Ivy Capital, and a group of lenders. The amended credit facility extends the maturity date on its Delayed Draw Loans to April 30, 2024, through the issuance of\u00a015,000,000\u00a0Subordinate Voting Shares in lieu of a cash extension fee. These\u00a015,000,000\u00a0shares were valued at $1,407,903\u00a0using a fair value per share of $0.094\u00a0and considered a deferred financing cost. The fair value per share reflects a\u00a022% discount to the market price at the time of issuance to account for the\u00a0four-month\u00a0trading lock-up imposed on the shares. The amendment also provides the Company with reduced cash outlays by eliminating required amortization of the loan, and requires the Company to divest certain assets to improve its liquidity position and financial performance. The Company has the potential to extend the maturity date on its Delayed Draw Loans up to January 31, 2026 with the satisfaction of certain financial performance-related conditions.
On April 30, 2024, the Company executed a short-term extension of the maturity date on the Credit Facility with the Agent. The Credit Facility was extended until June 14, 2024, matching all other terms of the existing agreement. On June 14, 2024, another short-term extension was executed which extended the maturity date on the Credit Facility to July 31, 2024, matching all other terms of the existing agreement.
On May 21, 2024 the Company executed a $1,200,000 term loan with the Agent to assist with the purchase of a site for a new dispensary location. The loan bears an interest rate of 12.0% and is due on May 28, 2027. Financing costs of $68,600 were incurred in connection with the closing of the loan.
On July 31, 2024, the Company executed a ninth amendment to the Company\u2019s Credit Facility. The ninth amendment to the Company\u2019s Credit Facility extends the maturity date on the Credit Facility loans to January 29, 2027, adjusts and
extends the deadline with respect to the Company\u2019s ongoing disposition of its New York operations through July 31, 2025, and amends certain financial measure definitions and covenants within the agreement. The Company issued\u00a012,500,000\u00a0Subordinate Voting Shares to the lenders in consideration for the credit facility amendment. These\u00a015,000,000\u00a0shares were valued at $5,387,500\u00a0using a fair value per share of $0.431\u00a0and considered a deferred financing cost.
Unless otherwise specified, all deferred financing costs are treated as a contra-liability, to be netted against the outstanding loan balance and amortized over the remaining life of the loan. As of September 30, 2024, $5,089,311\u00a0(December 31, 2023 - $1,524,531) of deferred financing costs remain unamortized.
The following table shows a summary of the Company\u2019s long-term debt:
\u00a0\u00a0\u00a0\u00a0 | September 30, | December 31, | ||||
\u00a0\u00a0\u00a0\u00a0 | 2024 | \u00a0\u00a0\u00a0\u00a0 | 2023 | |||
Beginning of period | $ | 60,220,535 | $ | 58,028,604 | ||
Proceeds | \u00a0 | 1,200,000 | \u00a0 | \u2014 | ||
Principal repayments | (1,098,000) | (2,976,362) | ||||
Deferred financing costs | (5,456,100) | (1,407,903) | ||||
PIK interest | 1,219,451 | 1,607,032 | ||||
Amortization of deferred financing costs | 1,891,320 | 4,969,164 | ||||
End of period | \u00a0 | 57,977,206 | \u00a0 | 60,220,535 | ||
Less: current portion | \u00a0 | 1,144,000 | \u00a0 | 60,220,535 | ||
Total long-term debt | $ | 56,833,206 | $ | \u2014 |
As of September 30, 2024, stated maturities of long-term debt were as follows:
2024 | $ | 1,144,000 | |
2025 | \u2014 | ||
2026 | \u2014 | ||
2027 | 56,833,206 | ||
Total | $ | 57,977,206 |
"}]},{"name":"rpt:f-612","factDimensions":{"xbrl:concept":"us-gaap:DebtInstrumentFaceAmount","xbrl:period":"2018-01-01T00:00:00","xbrl:entity":"cik:0001771706","xbrl:unit":"iso4217:USD","us-gaap:LongtermDebtTypeAxis":"us-gaap:NotesPayableOtherPayablesMember"},"factValues":[{"value":"1010000","decimals":0}]},{"name":"rpt:f-613","factDimensions":{"xbrl:concept":"us-gaap:DebtInstrumentInterestRateStatedPercentage","xbrl:period":"2018-01-01T00:00:00","xbrl:entity":"cik:0001771706","us-gaap:LongtermDebtTypeAxis":"us-gaap:NotesPayableOtherPayablesMember"},"factValues":[{"value":"0.15","decimals":2}]},{"name":"rpt:f-614","factDimensions":{"xbrl:concept":"us-gaap:DebtInstrumentFrequencyOfPeriodicPayment","xbrl:period":"2017-01-01T00:00:00/2018-01-01T00:00:00","xbrl:entity":"cik:0001771706","us-gaap:LongtermDebtTypeAxis":"us-gaap:NotesPayableOtherPayablesMember"},"factValues":[{"value":"monthly"}]},{"name":"rpt:f-615","factDimensions":{"xbrl:concept":"us-gaap:DebtInstrumentFaceAmount","xbrl:period":"2018-01-01T00:00:00","xbrl:entity":"cik:0001771706","xbrl:unit":"iso4217:USD","us-gaap:LongtermDebtTypeAxis":"us-gaap:NotesPayableOtherPayablesMember"},"factValues":[{"value":"1010000","decimals":0}]},{"name":"rpt:f-616","factDimensions":{"xbrl:concept":"us-gaap:DebtInstrumentFaceAmount","xbrl:period":"2020-01-01T00:00:00","xbrl:entity":"cik:0001771706","xbrl:unit":"iso4217:USD","us-gaap:LongtermDebtTypeAxis":"us-gaap:NotesPayableOtherPayablesMember"},"factValues":[{"value":"1110000","decimals":0}]},{"name":"rpt:f-617","factDimensions":{"xbrl:concept":"us-gaap:DebtInstrumentFaceAmount","xbrl:period":"2021-11-20T00:00:00","xbrl:entity":"cik:0001771706","xbrl:unit":"iso4217:USD","us-gaap:AssetAcquisitionAxis":"vreof:CharmCityMedicusLlcMember","us-gaap:LongtermDebtTypeAxis":"us-gaap:NotesPayableOtherPayablesMember"},"factValues":[{"value":"2000000","decimals":0}]},{"name":"rpt:f-618","factDimensions":{"xbrl:concept":"us-gaap:DebtInstrumentInterestRateStatedPercentage","xbrl:period":"2021-11-20T00:00:00","xbrl:entity":"cik:0001771706","us-gaap:AssetAcquisitionAxis":"vreof:CharmCityMedicusLlcMember","us-gaap:LongtermDebtTypeAxis":"us-gaap:NotesPayableOtherPayablesMember"},"factValues":[{"value":"0.08","decimals":2}]},{"name":"rpt:f-619","factDimensions":{"xbrl:concept":"us-gaap:DebtInstrumentInterestRateStatedPercentage","xbrl:period":"2023-11-20T00:00:00","xbrl:entity":"cik:0001771706","us-gaap:AssetAcquisitionAxis":"vreof:CharmCityMedicusLlcMember","us-gaap:LongtermDebtTypeAxis":"us-gaap:NotesPayableOtherPayablesMember"},"factValues":[{"value":"0.15","decimals":2}]},{"name":"rpt:f-620","factDimensions":{"xbrl:concept":"us-gaap:RepaymentsOfLongTermDebt","xbrl:period":"2023-11-19T00:00:00/2023-11-20T00:00:00","xbrl:entity":"cik:0001771706","xbrl:unit":"iso4217:USD","us-gaap:AssetAcquisitionAxis":"vreof:CharmCityMedicusLlcMember","us-gaap:LongtermDebtTypeAxis":"us-gaap:NotesPayableOtherPayablesMember"},"factValues":[{"value":"1000000","decimals":0}]},{"name":"rpt:f-621","factDimensions":{"xbrl:concept":"us-gaap:SecuredDebtCurrent","xbrl:period":"2023-11-20T00:00:00","xbrl:entity":"cik:0001771706","xbrl:unit":"iso4217:USD","us-gaap:AssetAcquisitionAxis":"vreof:CharmCityMedicusLlcMember","us-gaap:LongtermDebtTypeAxis":"us-gaap:NotesPayableOtherPayablesMember"},"factValues":[{"value":"1000000","decimals":0}]},{"name":"rpt:f-622","factDimensions":{"xbrl:concept":"us-gaap:DebtInstrumentMaturityDate","xbrl:period":"2023-11-19T00:00:00/2023-11-20T00:00:00","xbrl:entity":"cik:0001771706","us-gaap:AssetAcquisitionAxis":"vreof:CharmCityMedicusLlcMember","us-gaap:LongtermDebtTypeAxis":"us-gaap:NotesPayableOtherPayablesMember"},"factValues":[{"value":"2024-11-19"}]},{"name":"rpt:f-623","factDimensions":{"xbrl:concept":"vreof:PercentageOfMembershipInterestHeldAsCollateral","xbrl:period":"2023-11-19T00:00:00/2023-11-20T00:00:00","xbrl:entity":"cik:0001771706","us-gaap:AssetAcquisitionAxis":"vreof:CharmCityMedicusLlcMember","us-gaap:LongtermDebtTypeAxis":"us-gaap:LineOfCreditMember"},"factValues":[{"value":"0.25","decimals":2}]},{"name":"rpt:f-624","factDimensions":{"xbrl:concept":"us-gaap:LineOfCreditFacilityMaximumBorrowingCapacity","xbrl:period":"2021-03-26T00:00:00","xbrl:entity":"cik:0001771706","xbrl:unit":"iso4217:USD","us-gaap:LongtermDebtTypeAxis":"us-gaap:LineOfCreditMember"},"factValues":[{"value":"46000000","decimals":0}]},{"name":"rpt:f-625","factDimensions":{"xbrl:concept":"us-gaap:ProceedsFromLinesOfCredit","xbrl:period":"2021-03-25T00:00:00/2021-03-26T00:00:00","xbrl:entity":"cik:0001771706","xbrl:unit":"iso4217:USD","us-gaap:LongtermDebtTypeAxis":"us-gaap:LineOfCreditMember"},"factValues":[{"value":"26000000","decimals":0}]},{"name":"rpt:f-626","factDimensions":{"xbrl:concept":"us-gaap:DebtInstrumentBasisSpreadOnVariableRate1","xbrl:period":"2021-03-25T00:00:00/2021-03-26T00:00:00","xbrl:entity":"cik:0001771706","us-gaap:LongtermDebtTypeAxis":"us-gaap:LineOfCreditMember"},"factValues":[{"value":"0.10375","decimals":5}]},{"name":"rpt:f-627","factDimensions":{"xbrl:concept":"vreof:DebtInstrumentInterestInKindRatePercentage","xbrl:period":"2021-03-25T00:00:00/2021-03-26T00:00:00","xbrl:entity":"cik:0001771706","us-gaap:LongtermDebtTypeAxis":"us-gaap:LineOfCreditMember"},"factValues":[{"value":"0.0275","decimals":4}]},{"name":"rpt:f-628","factDimensions":{"xbrl:concept":"vreof:LineOfCreditFacilityCreditMonitoringFees","xbrl:period":"2023-01-01T00:00:00/2023-10-01T00:00:00","xbrl:entity":"cik:0001771706","xbrl:unit":"iso4217:USD","us-gaap:IncomeStatementLocationAxis":"us-gaap:InterestExpenseMember","us-gaap:LongtermDebtTypeAxis":"us-gaap:LineOfCreditMember"},"factValues":[{"value":"130400","decimals":0}]},{"name":"rpt:f-629","factDimensions":{"xbrl:concept":"vreof:LineOfCreditFacilityCreditMonitoringFees","xbrl:period":"2024-01-01T00:00:00/2024-10-01T00:00:00","xbrl:entity":"cik:0001771706","xbrl:unit":"iso4217:USD","us-gaap:IncomeStatementLocationAxis":"us-gaap:InterestExpenseMember","us-gaap:LongtermDebtTypeAxis":"us-gaap:LineOfCreditMember"},"factValues":[{"value":"130400","decimals":0}]},{"name":"rpt:f-630","factDimensions":{"xbrl:concept":"us-gaap:LineOfCreditFacilityMaximumBorrowingCapacity","xbrl:period":"2021-11-19T00:00:00","xbrl:entity":"cik:0001771706","xbrl:unit":"iso4217:USD","us-gaap:LongtermDebtTypeAxis":"us-gaap:LineOfCreditMember"},"factValues":[{"value":"4200000","decimals":0}]},{"name":"rpt:f-631","factDimensions":{"xbrl:concept":"us-gaap:DebtInstrumentInterestRateStatedPercentage","xbrl:period":"2021-11-19T00:00:00","xbrl:entity":"cik:0001771706","us-gaap:LongtermDebtTypeAxis":"us-gaap:LineOfCreditMember"},"factValues":[{"value":"0.15","decimals":2}]},{"name":"rpt:f-632","factDimensions":{"xbrl:concept":"vreof:DebtInstrumentInterestInKindRatePercentage","xbrl:period":"2021-11-18T00:00:00/2021-11-19T00:00:00","xbrl:entity":"cik:0001771706","us-gaap:LongtermDebtTypeAxis":"us-gaap:LineOfCreditMember"},"factValues":[{"value":"0.02","decimals":2}]},{"name":"rpt:f-633","factDimensions":{"xbrl:concept":"us-gaap:LineOfCreditFacilityMaximumBorrowingCapacity","xbrl:period":"2022-02-01T00:00:00","xbrl:entity":"cik:0001771706","xbrl:unit":"iso4217:USD","srt:RangeAxis":"srt:MaximumMember","us-gaap:TypeOfArrangementAxis":"vreof:ArrangementAgreementWithVeranoHoldingsCorpMember"},"factValues":[{"value":"55000000","decimals":-6}]},{"name":"rpt:f-634","factDimensions":{"xbrl:concept":"us-gaap:DebtInstrumentBasisSpreadOnVariableRate1","xbrl:period":"2022-01-31T00:00:00/2022-02-01T00:00:00","xbrl:entity":"cik:0001771706","us-gaap:TypeOfArrangementAxis":"vreof:ArrangementAgreementWithVeranoHoldingsCorpMember"},"factValues":[{"value":"0.10375","decimals":5}]},{"name":"rpt:f-635","factDimensions":{"xbrl:concept":"us-gaap:DebtInstrumentInterestRateStatedPercentage","xbrl:period":"2022-02-01T00:00:00","xbrl:entity":"cik:0001771706","us-gaap:TypeOfArrangementAxis":"vreof:ArrangementAgreementWithVeranoHoldingsCorpMember"},"factValues":[{"value":"0.13375","decimals":5}]},{"name":"rpt:f-636","factDimensions":{"xbrl:concept":"vreof:DebtInstrumentInterestInKindRatePercentage","xbrl:period":"2022-01-31T00:00:00/2022-02-01T00:00:00","xbrl:entity":"cik:0001771706","us-gaap:TypeOfArrangementAxis":"vreof:ArrangementAgreementWithVeranoHoldingsCorpMember"},"factValues":[{"value":"0.0275","decimals":4}]},{"name":"rpt:f-637","factDimensions":{"xbrl:concept":"us-gaap:StockIssuedDuringPeriodSharesNewIssues","xbrl:period":"2023-03-31T00:00:00/2023-04-01T00:00:00","xbrl:entity":"cik:0001771706","xbrl:unit":"xbrla:shares","us-gaap:StatementClassOfStockAxis":"vreof:SubordinateVotingSharesMember"},"factValues":[{"value":"15000000"}]},{"name":"rpt:f-638","factDimensions":{"xbrl:concept":"vreof:SharesIssuableAccruedAsDeferredFinancing","xbrl:period":"2023-04-01T00:00:00","xbrl:entity":"cik:0001771706","xbrl:unit":"xbrla:shares","us-gaap:LongtermDebtTypeAxis":"us-gaap:LineOfCreditMember"},"factValues":[{"value":"15000000"}]},{"name":"rpt:f-639","factDimensions":{"xbrl:concept":"us-gaap:DeferredOfferingCosts","xbrl:period":"2023-04-01T00:00:00","xbrl:entity":"cik:0001771706","xbrl:unit":"iso4217:USD","us-gaap:LongtermDebtTypeAxis":"us-gaap:LineOfCreditMember"},"factValues":[{"value":"1407903","decimals":0}]},{"name":"rpt:f-640","factDimensions":{"xbrl:concept":"us-gaap:SharesIssuedPricePerShare","xbrl:period":"2023-04-01T00:00:00","xbrl:entity":"cik:0001771706","xbrl:unit":"iso4217:USD/xbrla:shares","us-gaap:LongtermDebtTypeAxis":"us-gaap:LineOfCreditMember"},"factValues":[{"value":"0.094","decimals":3}]},{"name":"rpt:f-641","factDimensions":{"xbrl:concept":"vreof:DebtInstrumentPercentageOfDiscountToMarketPrice","xbrl:period":"2023-03-31T00:00:00/2023-04-01T00:00:00","xbrl:entity":"cik:0001771706","us-gaap:LongtermDebtTypeAxis":"us-gaap:LineOfCreditMember"},"factValues":[{"value":"0.22","decimals":2}]},{"name":"rpt:f-642","factDimensions":{"xbrl:concept":"vreof:TradingLockUpPeriod","xbrl:period":"2023-03-31T00:00:00/2023-04-01T00:00:00","xbrl:entity":"cik:0001771706","us-gaap:LongtermDebtTypeAxis":"us-gaap:LineOfCreditMember"},"factValues":[{"value":"P4M"}]},{"name":"rpt:f-643","factDimensions":{"xbrl:concept":"us-gaap:DebtInstrumentFaceAmount","xbrl:period":"2024-05-22T00:00:00","xbrl:entity":"cik:0001771706","xbrl:unit":"iso4217:USD","us-gaap:LongtermDebtTypeAxis":"vreof:TermLoanMember"},"factValues":[{"value":"1200000","decimals":0}]},{"name":"rpt:f-644","factDimensions":{"xbrl:concept":"us-gaap:DebtInstrumentInterestRateDuringPeriod","xbrl:period":"2024-05-21T00:00:00/2024-05-22T00:00:00","xbrl:entity":"cik:0001771706","us-gaap:LongtermDebtTypeAxis":"vreof:TermLoanMember"},"factValues":[{"value":"0.120","decimals":3}]},{"name":"rpt:f-645","factDimensions":{"xbrl:concept":"us-gaap:DeferredOfferingCosts","xbrl:period":"2024-05-22T00:00:00","xbrl:entity":"cik:0001771706","xbrl:unit":"iso4217:USD","us-gaap:LongtermDebtTypeAxis":"vreof:TermLoanMember"},"factValues":[{"value":"68600","decimals":0}]},{"name":"rpt:f-646","factDimensions":{"xbrl:concept":"us-gaap:StockIssuedDuringPeriodSharesNewIssues","xbrl:period":"2024-07-31T00:00:00/2024-08-01T00:00:00","xbrl:entity":"cik:0001771706","xbrl:unit":"xbrla:shares","us-gaap:LongtermDebtTypeAxis":"us-gaap:LineOfCreditMember","us-gaap:StatementClassOfStockAxis":"vreof:SubordinateVotingSharesMember"},"factValues":[{"value":"12500000"}]},{"name":"rpt:f-647","factDimensions":{"xbrl:concept":"vreof:SharesIssuableAccruedAsDeferredFinancing","xbrl:period":"2024-08-01T00:00:00","xbrl:entity":"cik:0001771706","xbrl:unit":"xbrla:shares","us-gaap:LongtermDebtTypeAxis":"us-gaap:LineOfCreditMember"},"factValues":[{"value":"15000000"}]},{"name":"rpt:f-648","factDimensions":{"xbrl:concept":"us-gaap:DeferredOfferingCosts","xbrl:period":"2024-08-01T00:00:00","xbrl:entity":"cik:0001771706","xbrl:unit":"iso4217:USD","us-gaap:LongtermDebtTypeAxis":"us-gaap:LineOfCreditMember"},"factValues":[{"value":"5387500","decimals":0}]},{"name":"rpt:f-649","factDimensions":{"xbrl:concept":"us-gaap:SharesIssuedPricePerShare","xbrl:period":"2024-08-01T00:00:00","xbrl:entity":"cik:0001771706","xbrl:unit":"iso4217:USD/xbrla:shares","us-gaap:LongtermDebtTypeAxis":"us-gaap:LineOfCreditMember"},"factValues":[{"value":"0.431","decimals":3}]},{"name":"rpt:f-650","factDimensions":{"xbrl:concept":"us-gaap:DeferredFinanceCostsNet","xbrl:period":"2024-10-01T00:00:00","xbrl:entity":"cik:0001771706","xbrl:unit":"iso4217:USD","us-gaap:DebtInstrumentAxis":"us-gaap:LongTermDebtMember"},"factValues":[{"value":"5089311","decimals":0}]},{"name":"rpt:f-651","factDimensions":{"xbrl:concept":"us-gaap:DeferredFinanceCostsNet","xbrl:period":"2024-01-01T00:00:00","xbrl:entity":"cik:0001771706","xbrl:unit":"iso4217:USD","us-gaap:DebtInstrumentAxis":"us-gaap:LongTermDebtMember"},"factValues":[{"value":"1524531","decimals":0}]},{"name":"rpt:f-652","factDimensions":{"xbrl:concept":"us-gaap:ScheduleOfDebtInstrumentsTextBlock","xbrl:period":"2024-01-01T00:00:00/2024-10-01T00:00:00","xbrl:entity":"cik:0001771706"},"factValues":[{"value":"
\u00a0\u00a0\u00a0\u00a0 | September 30, | December 31, | ||||
\u00a0\u00a0\u00a0\u00a0 | 2024 | \u00a0\u00a0\u00a0\u00a0 | 2023 | |||
Beginning of period | $ | 60,220,535 | $ | 58,028,604 | ||
Proceeds | \u00a0 | 1,200,000 | \u00a0 | \u2014 | ||
Principal repayments | (1,098,000) | (2,976,362) | ||||
Deferred financing costs | (5,456,100) | (1,407,903) | ||||
PIK interest | 1,219,451 | 1,607,032 | ||||
Amortization of deferred financing costs | 1,891,320 | 4,969,164 | ||||
End of period | \u00a0 | 57,977,206 | \u00a0 | 60,220,535 | ||
Less: current portion | \u00a0 | 1,144,000 | \u00a0 | 60,220,535 | ||
Total long-term debt | $ | 56,833,206 | $ | \u2014 |
2024 | $ | 1,144,000 | |
2025 | \u2014 | ||
2026 | \u2014 | ||
2027 | 56,833,206 | ||
Total | $ | 57,977,206 |
"}]},{"name":"rpt:f-670","factDimensions":{"xbrl:concept":"us-gaap:LongTermDebtMaturitiesRepaymentsOfPrincipalRemainderOfFiscalYear","xbrl:period":"2024-10-01T00:00:00","xbrl:entity":"cik:0001771706","xbrl:unit":"iso4217:USD","us-gaap:LongtermDebtTypeAxis":"vreof:PromissoryNoteAndLineOfCreditMember"},"factValues":[{"value":"1144000","decimals":0}]},{"name":"rpt:f-671","factDimensions":{"xbrl:concept":"us-gaap:LongTermDebtMaturitiesRepaymentsOfPrincipalInYearThree","xbrl:period":"2024-10-01T00:00:00","xbrl:entity":"cik:0001771706","xbrl:unit":"iso4217:USD","us-gaap:LongtermDebtTypeAxis":"vreof:PromissoryNoteAndLineOfCreditMember"},"factValues":[{"value":"56833206","decimals":0}]},{"name":"rpt:f-672","factDimensions":{"xbrl:concept":"us-gaap:SecuredDebt","xbrl:period":"2024-10-01T00:00:00","xbrl:entity":"cik:0001771706","xbrl:unit":"iso4217:USD","us-gaap:LongtermDebtTypeAxis":"vreof:PromissoryNoteAndLineOfCreditMember"},"factValues":[{"value":"57977206","decimals":0}]},{"name":"rpt:f-673","factDimensions":{"xbrl:concept":"vreof:ConvertibleDebtTextBlock","xbrl:period":"2024-01-01T00:00:00/2024-10-01T00:00:00","xbrl:entity":"cik:0001771706"},"factValues":[{"value":"
14. Convertible Notes
On April 28, 2023, the Company closed on a new convertible debt facility which enables the Company to access up to\u00a0$10,000,000\u00a0in aggregate principal amount of convertible notes (the \u201cConvertible Notes\u201d). The convertible facility has a term of\u00a0three years, with an annual interest rate of\u00a012.0%, comprised of\u00a06.0%\u00a0cash and\u00a06.0%\u00a0PIK. The initial tranche's principal amount of Convertible Notes outstanding in the amount of\u00a0$2,000,000, plus all PIK and all other accrued but unpaid interest thereunder, is convertible into Subordinate Voting Shares of the Company at the option of the holders at any time by written notice to the Company, at a conversion price equal to\u00a0$0.145. For each future tranche advanced, the principal amount of Convertible Notes outstanding, plus all PIK interest and all other accrued but unpaid interest thereunder, is convertible into Subordinate Voting Shares of the Company at the option of the holders at any time by written notice to the Company, at a conversion price equal to the lesser of\u00a0$0.145\u00a0or a\u00a020.0%\u00a0premium over the 30-day volume weighted average price of the Company\u2019s Subordinate Voting Shares calculated on the day prior to the date on which each tranche is advanced, if permitted by the Canadian Securities Exchange. The lenders also have the right to advance any remaining undrawn funds on the convertible loan facility to the Company at any time. If the notes are not converted, the outstanding principal amount and unpaid PIK interest is due on April 30, 2026.
During the year ended December 31, 2023, the Company closed\u00a0eight\u00a0additional tranches of Convertible Notes, which are convertible into Subordinate Voting Shares at a conversion price of\u00a0$0.145. Total proceeds received from these tranches amounted to\u00a0$8,000,000.
In connection with this financing, the Company issued\u00a06,250,000\u00a0warrants to purchase Subordinate Voting Shares of the Company to the lenders. These warrants have a\u00a0five year\u00a0term, a strike price of\u00a0$0.145, and were valued at\u00a0$497,055. The
value of these warrants and other legal and administrative expenses amounting to\u00a0$1,346,793\u00a0are treated as deferred financing costs.\u00a0All deferred financing costs are treated as a contra-liability, to be netted against the outstanding loan balance and amortized over the remaining life of the loan. As of \u00a0September 30, 2024, $0\u00a0(December 31, 2023 - $1,083,697)\u00a0of deferred financing costs remain unamortized.
On July 31, 2024, the holders voluntarily converted all outstanding convertible notes into 73,016,061 Subordinate Voting Shares of the Company.
The following table shows a summary of the Company\u2019s convertible debt:
\u00a0\u00a0\u00a0\u00a0 | September 30, | December 31, | ||||
\u00a0\u00a0\u00a0\u00a0 | 2024 | \u00a0\u00a0\u00a0\u00a0 | 2023 | |||
Beginning of period | $ | 9,140,257 | $ | \u2014 | ||
Proceeds | \u00a0 | \u2014 | \u00a0 | 10,000,000 | ||
Deferred financing costs | \u2014 | (1,346,793) | ||||
PIK interest | 363,376 | 223,954 | ||||
Amortization of deferred financing costs | 270,924 | 263,096 | ||||
Conversion | (9,774,557) | \u2014 | ||||
End of period | $ | \u2014 | \u00a0 | 9,140,257 | ||
Less: current portion | \u00a0 | \u2014 | \u00a0 | \u2014 | ||
Total convertible debt | $ | \u2014 | $ | 9,140,257 |
"}]},{"name":"rpt:f-674","factDimensions":{"xbrl:concept":"us-gaap:LineOfCreditFacilityMaximumBorrowingCapacity","xbrl:period":"2023-04-29T00:00:00","xbrl:entity":"cik:0001771706","xbrl:unit":"iso4217:USD","us-gaap:LongtermDebtTypeAxis":"us-gaap:ConvertibleDebtMember"},"factValues":[{"value":"10000000","decimals":0}]},{"name":"rpt:f-675","factDimensions":{"xbrl:concept":"us-gaap:DebtInstrumentTerm","xbrl:period":"2023-04-28T00:00:00/2023-04-29T00:00:00","xbrl:entity":"cik:0001771706","us-gaap:LongtermDebtTypeAxis":"us-gaap:ConvertibleDebtMember"},"factValues":[{"value":"P3Y"}]},{"name":"rpt:f-676","factDimensions":{"xbrl:concept":"us-gaap:DebtInstrumentInterestRateStatedPercentage","xbrl:period":"2023-04-29T00:00:00","xbrl:entity":"cik:0001771706","us-gaap:LongtermDebtTypeAxis":"us-gaap:ConvertibleDebtMember"},"factValues":[{"value":"0.120","decimals":3}]},{"name":"rpt:f-677","factDimensions":{"xbrl:concept":"vreof:DebtInstrumentCashInterestRate","xbrl:period":"2023-04-28T00:00:00/2023-04-29T00:00:00","xbrl:entity":"cik:0001771706","us-gaap:LongtermDebtTypeAxis":"us-gaap:ConvertibleDebtMember"},"factValues":[{"value":"0.060","decimals":3}]},{"name":"rpt:f-678","factDimensions":{"xbrl:concept":"vreof:DebtInstrumentInterestInKindRatePercentage","xbrl:period":"2023-04-28T00:00:00/2023-04-29T00:00:00","xbrl:entity":"cik:0001771706","us-gaap:LongtermDebtTypeAxis":"us-gaap:ConvertibleDebtMember"},"factValues":[{"value":"0.060","decimals":3}]},{"name":"rpt:f-679","factDimensions":{"xbrl:concept":"us-gaap:DebtConversionConvertedInstrumentAmount1","xbrl:period":"2023-04-28T00:00:00/2023-04-29T00:00:00","xbrl:entity":"cik:0001771706","xbrl:unit":"iso4217:USD","us-gaap:LongtermDebtTypeAxis":"vreof:ConvertibleDebtTranche1Member"},"factValues":[{"value":"2000000","decimals":0}]},{"name":"rpt:f-680","factDimensions":{"xbrl:concept":"us-gaap:DebtInstrumentConvertibleConversionPrice1","xbrl:period":"2023-04-29T00:00:00","xbrl:entity":"cik:0001771706","xbrl:unit":"iso4217:USD/xbrla:shares","us-gaap:LongtermDebtTypeAxis":"vreof:ConvertibleDebtTranche1Member"},"factValues":[{"value":"0.145","decimals":3}]},{"name":"rpt:f-681","factDimensions":{"xbrl:concept":"us-gaap:DebtInstrumentConvertibleConversionPrice1","xbrl:period":"2023-04-29T00:00:00","xbrl:entity":"cik:0001771706","xbrl:unit":"iso4217:USD/xbrla:shares","srt:RangeAxis":"srt:MaximumMember","us-gaap:LongtermDebtTypeAxis":"vreof:ConvertibleDebtTranches2And3Member"},"factValues":[{"value":"0.145","decimals":3}]},{"name":"rpt:f-682","factDimensions":{"xbrl:concept":"vreof:DebtInstrumentConvertibleConversionPremiumOverSharePrice","xbrl:period":"2023-04-28T00:00:00/2023-04-29T00:00:00","xbrl:entity":"cik:0001771706","srt:RangeAxis":"srt:MaximumMember","us-gaap:LongtermDebtTypeAxis":"vreof:ConvertibleDebtTranches2And3Member"},"factValues":[{"value":"20.0","decimals":1}]},{"name":"rpt:f-683","factDimensions":{"xbrl:concept":"vreof:DebtInstrumentNumberOfAdditionalTranches","xbrl:period":"2023-01-01T00:00:00/2024-01-01T00:00:00","xbrl:entity":"cik:0001771706","xbrl:unit":"vreof:tranche","us-gaap:LongtermDebtTypeAxis":"us-gaap:ConvertibleDebtMember"},"factValues":[{"value":"8"}]},{"name":"rpt:f-684","factDimensions":{"xbrl:concept":"us-gaap:DebtInstrumentConvertibleConversionPrice1","xbrl:period":"2024-01-01T00:00:00","xbrl:entity":"cik:0001771706","xbrl:unit":"iso4217:USD/xbrla:shares","us-gaap:LongtermDebtTypeAxis":"us-gaap:ConvertibleDebtMember"},"factValues":[{"value":"0.145","decimals":3}]},{"name":"rpt:f-685","factDimensions":{"xbrl:concept":"us-gaap:DebtConversionConvertedInstrumentAmount1","xbrl:period":"2023-01-01T00:00:00/2024-01-01T00:00:00","xbrl:entity":"cik:0001771706","xbrl:unit":"iso4217:USD","us-gaap:LongtermDebtTypeAxis":"us-gaap:ConvertibleDebtMember"},"factValues":[{"value":"8000000","decimals":0}]},{"name":"rpt:f-686","factDimensions":{"xbrl:concept":"us-gaap:DebtConversionConvertedInstrumentWarrantsOrOptionsIssued1","xbrl:period":"2024-01-01T00:00:00/2024-10-01T00:00:00","xbrl:entity":"cik:0001771706","xbrl:unit":"xbrla:shares","us-gaap:LongtermDebtTypeAxis":"us-gaap:ConvertibleDebtMember"},"factValues":[{"value":"6250000"}]},{"name":"rpt:f-687","factDimensions":{"xbrl:concept":"us-gaap:WarrantsAndRightsOutstandingTerm","xbrl:period":"2024-10-01T00:00:00","xbrl:entity":"cik:0001771706","us-gaap:LongtermDebtTypeAxis":"us-gaap:ConvertibleDebtMember"},"factValues":[{"value":"P5Y"}]},{"name":"rpt:f-688","factDimensions":{"xbrl:concept":"us-gaap:DebtInstrumentConvertibleConversionPrice1","xbrl:period":"2024-10-01T00:00:00","xbrl:entity":"cik:0001771706","xbrl:unit":"iso4217:USD/xbrla:shares","us-gaap:LongtermDebtTypeAxis":"us-gaap:ConvertibleDebtMember"},"factValues":[{"value":"0.145","decimals":3}]},{"name":"rpt:f-689","factDimensions":{"xbrl:concept":"vreof:StockIssuedDuringPeriodValueWarrantsExercised","xbrl:period":"2024-01-01T00:00:00/2024-10-01T00:00:00","xbrl:entity":"cik:0001771706","xbrl:unit":"iso4217:USD","us-gaap:LongtermDebtTypeAxis":"us-gaap:ConvertibleDebtMember"},"factValues":[{"value":"497055","decimals":0}]},{"name":"rpt:f-690","factDimensions":{"xbrl:concept":"vreof:DebtInstrumentsAdditionalThirdPartyLegalFees","xbrl:period":"2024-01-01T00:00:00/2024-10-01T00:00:00","xbrl:entity":"cik:0001771706","xbrl:unit":"iso4217:USD","us-gaap:LongtermDebtTypeAxis":"us-gaap:ConvertibleDebtMember"},"factValues":[{"value":"1346793","decimals":0}]},{"name":"rpt:f-691","factDimensions":{"xbrl:concept":"us-gaap:DeferredFinanceCostsNet","xbrl:period":"2024-10-01T00:00:00","xbrl:entity":"cik:0001771706","xbrl:unit":"iso4217:USD","us-gaap:LongtermDebtTypeAxis":"us-gaap:ConvertibleDebtMember"},"factValues":[{"value":"0","decimals":0}]},{"name":"rpt:f-692","factDimensions":{"xbrl:concept":"us-gaap:DeferredFinanceCostsNet","xbrl:period":"2024-01-01T00:00:00","xbrl:entity":"cik:0001771706","xbrl:unit":"iso4217:USD","us-gaap:LongtermDebtTypeAxis":"us-gaap:ConvertibleDebtMember"},"factValues":[{"value":"1083697","decimals":0}]},{"name":"rpt:f-693","factDimensions":{"xbrl:concept":"us-gaap:StockIssuedDuringPeriodSharesConversionOfConvertibleSecurities","xbrl:period":"2024-07-31T00:00:00/2024-08-01T00:00:00","xbrl:entity":"cik:0001771706","xbrl:unit":"xbrla:shares","srt:CounterpartyNameAxis":"vreof:ChicagoAtlanticOpportunityPortfolioLpMember","us-gaap:StatementClassOfStockAxis":"vreof:SubordinateVotingSharesMember"},"factValues":[{"value":"73016061"}]},{"name":"rpt:f-694","factDimensions":{"xbrl:concept":"us-gaap:ConvertibleDebtTableTextBlock","xbrl:period":"2024-01-01T00:00:00/2024-10-01T00:00:00","xbrl:entity":"cik:0001771706"},"factValues":[{"value":"
\u00a0\u00a0\u00a0\u00a0 | September 30, | December 31, | ||||
\u00a0\u00a0\u00a0\u00a0 | 2024 | \u00a0\u00a0\u00a0\u00a0 | 2023 | |||
Beginning of period | $ | 9,140,257 | $ | \u2014 | ||
Proceeds | \u00a0 | \u2014 | \u00a0 | 10,000,000 | ||
Deferred financing costs | \u2014 | (1,346,793) | ||||
PIK interest | 363,376 | 223,954 | ||||
Amortization of deferred financing costs | 270,924 | 263,096 | ||||
Conversion | (9,774,557) | \u2014 | ||||
End of period | $ | \u2014 | \u00a0 | 9,140,257 | ||
Less: current portion | \u00a0 | \u2014 | \u00a0 | \u2014 | ||
Total convertible debt | $ | \u2014 | $ | 9,140,257 |
"}]},{"name":"rpt:f-695","factDimensions":{"xbrl:concept":"us-gaap:ConvertibleDebt","xbrl:period":"2024-01-01T00:00:00","xbrl:entity":"cik:0001771706","xbrl:unit":"iso4217:USD","us-gaap:LongtermDebtTypeAxis":"us-gaap:ConvertibleDebtMember"},"factValues":[{"value":"9140257","decimals":0}]},{"name":"rpt:f-696","factDimensions":{"xbrl:concept":"us-gaap:ProceedsFromConvertibleDebt","xbrl:period":"2023-01-01T00:00:00/2024-01-01T00:00:00","xbrl:entity":"cik:0001771706","xbrl:unit":"iso4217:USD","us-gaap:LongtermDebtTypeAxis":"us-gaap:ConvertibleDebtMember"},"factValues":[{"value":"10000000","decimals":0}]},{"name":"rpt:f-697","factDimensions":{"xbrl:concept":"us-gaap:DeferredOfferingCosts","xbrl:period":"2024-01-01T00:00:00","xbrl:entity":"cik:0001771706","xbrl:unit":"iso4217:USD","us-gaap:LongtermDebtTypeAxis":"us-gaap:ConvertibleDebtMember"},"factValues":[{"value":"1346793","decimals":0}]},{"name":"rpt:f-698","factDimensions":{"xbrl:concept":"us-gaap:PaidInKindInterest","xbrl:period":"2024-01-01T00:00:00/2024-10-01T00:00:00","xbrl:entity":"cik:0001771706","xbrl:unit":"iso4217:USD","us-gaap:LongtermDebtTypeAxis":"us-gaap:ConvertibleDebtMember"},"factValues":[{"value":"363376","decimals":0}]},{"name":"rpt:f-699","factDimensions":{"xbrl:concept":"us-gaap:PaidInKindInterest","xbrl:period":"2023-01-01T00:00:00/2024-01-01T00:00:00","xbrl:entity":"cik:0001771706","xbrl:unit":"iso4217:USD","us-gaap:LongtermDebtTypeAxis":"us-gaap:ConvertibleDebtMember"},"factValues":[{"value":"223954","decimals":0}]},{"name":"rpt:f-700","factDimensions":{"xbrl:concept":"us-gaap:AmortizationOfFinancingCosts","xbrl:period":"2024-01-01T00:00:00/2024-10-01T00:00:00","xbrl:entity":"cik:0001771706","xbrl:unit":"iso4217:USD","us-gaap:LongtermDebtTypeAxis":"us-gaap:ConvertibleDebtMember"},"factValues":[{"value":"270924","decimals":0}]},{"name":"rpt:f-701","factDimensions":{"xbrl:concept":"us-gaap:AmortizationOfFinancingCosts","xbrl:period":"2023-01-01T00:00:00/2024-01-01T00:00:00","xbrl:entity":"cik:0001771706","xbrl:unit":"iso4217:USD","us-gaap:LongtermDebtTypeAxis":"us-gaap:ConvertibleDebtMember"},"factValues":[{"value":"263096","decimals":0}]},{"name":"rpt:f-702","factDimensions":{"xbrl:concept":"us-gaap:DebtConversionOriginalDebtAmount1","xbrl:period":"2024-01-01T00:00:00/2024-10-01T00:00:00","xbrl:entity":"cik:0001771706","xbrl:unit":"iso4217:USD","us-gaap:LongtermDebtTypeAxis":"us-gaap:ConvertibleDebtMember"},"factValues":[{"value":"9774557","decimals":0}]},{"name":"rpt:f-703","factDimensions":{"xbrl:concept":"us-gaap:ConvertibleDebt","xbrl:period":"2024-01-01T00:00:00","xbrl:entity":"cik:0001771706","xbrl:unit":"iso4217:USD","us-gaap:LongtermDebtTypeAxis":"us-gaap:ConvertibleDebtMember"},"factValues":[{"value":"9140257","decimals":0}]},{"name":"rpt:f-704","factDimensions":{"xbrl:concept":"us-gaap:ConvertibleDebtNoncurrent","xbrl:period":"2024-01-01T00:00:00","xbrl:entity":"cik:0001771706","xbrl:unit":"iso4217:USD","us-gaap:LongtermDebtTypeAxis":"us-gaap:ConvertibleDebtMember"},"factValues":[{"value":"9140257","decimals":0}]},{"name":"rpt:f-705","factDimensions":{"xbrl:concept":"us-gaap:StockholdersEquityNoteDisclosureTextBlock","xbrl:period":"2024-01-01T00:00:00/2024-10-01T00:00:00","xbrl:entity":"cik:0001771706"},"factValues":[{"value":"
15. Stockholders\u2019 Equity
Shares
The Company\u2019s certificate of incorporation authorized the Company to issue the following classes of shares with the following par value and voting rights as of September 30, 2024. The liquidation and dividend rights are identical among shares equally in the Company\u2019s earnings and losses on an as converted basis.
\u00a0\u00a0\u00a0\u00a0 | Par\u00a0Value | \u00a0\u00a0\u00a0\u00a0 | Authorized | \u00a0\u00a0\u00a0\u00a0 | Voting\u00a0Rights | |
Subordinate Voting Share (\u201cSVS\u201d) | \u00a0 | \u2014 | \u00a0 | Unlimited | \u00a0 | 1 vote for each share |
Multiple Voting Share (\u201cMVS\u201d) | \u00a0 | \u2014 | \u00a0 | Unlimited | \u00a0 | 100 votes for each share |
Super Voting Share | \u00a0 | \u2014 | \u00a0 | Unlimited | \u00a0 | 1,000 votes for each share |
Subordinate Voting Shares
Holders of Subordinate Voting Shares are entitled to one vote in respect of each Subordinate Voting Share held.
Multiple Voting Shares
Holders of Multiple Voting Shares are entitled to votes for each Multiple Voting Share held.
Multiple Voting Shares each have the restricted right to convert to Subordinate Voting Shares subject to adjustments for certain customary corporate changes.
Super Voting Shares
Holders of Super Voting Shares are entitled to votes per Super Voting Share. Each Super Voting share is convertible into one Multiple Voting Share.
Shares Issued
During the nine months ended September 30, 2024,\u00a032,879\u00a0Multiple Voting Shares were converted into\u00a03,287,900\u00a0Subordinate Voting Shares for no additional consideration.
During the nine months ended September 30, 2024, 12,500,000 Subordinate Voting Shares were issued to the Company\u2019s senior secured lender in connection with the ninth amendment to the Company\u2019s credit agreement (Note 13).
During the nine months ended September 30, 2024,\u00a01,300,078 Subordinate Voting Shares were issued to the Company\u2019s senior secured lender, Chicago Atlantic Opportunity Portfolio, LP, for $700,000 of proceeds.
During the nine months ended September 30, 2024, the holders of the Company\u2019s Convertible Notes voluntarily converted all outstanding convertible notes into 73,016,061 Subordinate Voting Shares of the Company
During the nine months ended September 30, 2024, employee stock options were exercised for 50,000 Subordinate Voting Shares. Proceeds from this transaction were $16,500.
During the nine months ended September 30, 2024, stock warrants were exercised for 303,127 Subordinate Voting Shares. Proceeds from these transactions were $43,953.
During the nine months ended September 30, 2023, the Company issued the\u00a015,000,000\u00a0Subordinate Voting Shares to its senior secured lender, Chicago Atlantic Admin, LLC, an affiliate of Green Ivy Capital, and a group of lenders in connection with the fifth amendment to its Credit Facility signed on March 31, 2023 (Note 13).
During the nine months ended September 30, 2023,\u00a065,411\u00a0Super Voting Shares were redeemed for\u00a06,541,100\u00a0Subordinate Voting Shares
During the nine months ended September 30, 2023,\u00a0702\u00a0Multiple Voting Shares were redeemed for\u00a070,200\u00a0Subordinate Voting Shares
"}]},{"name":"rpt:f-706","factDimensions":{"xbrl:concept":"us-gaap:ScheduleOfStockByClassTextBlock","xbrl:period":"2024-01-01T00:00:00/2024-10-01T00:00:00","xbrl:entity":"cik:0001771706"},"factValues":[{"value":"\u00a0\u00a0\u00a0\u00a0 | Par\u00a0Value | \u00a0\u00a0\u00a0\u00a0 | Authorized | \u00a0\u00a0\u00a0\u00a0 | Voting\u00a0Rights | |
Subordinate Voting Share (\u201cSVS\u201d) | \u00a0 | \u2014 | \u00a0 | Unlimited | \u00a0 | 1 vote for each share |
Multiple Voting Share (\u201cMVS\u201d) | \u00a0 | \u2014 | \u00a0 | Unlimited | \u00a0 | 100 votes for each share |
Super Voting Share | \u00a0 | \u2014 | \u00a0 | Unlimited | \u00a0 | 1,000 votes for each share |
"}]},{"name":"rpt:f-707","factDimensions":{"xbrl:concept":"us-gaap:CommonStockNoParValue","xbrl:period":"2024-10-01T00:00:00","xbrl:entity":"cik:0001771706","xbrl:unit":"iso4217:USD/xbrla:shares","us-gaap:StatementClassOfStockAxis":"vreof:SubordinateVotingSharesMember"},"factValues":[{"value":"0"}]},{"name":"rpt:f-708","factDimensions":{"xbrl:concept":"us-gaap:CommonStockSharesAuthorizedUnlimited","xbrl:period":"2024-01-01T00:00:00/2024-10-01T00:00:00","xbrl:entity":"cik:0001771706","us-gaap:StatementClassOfStockAxis":"vreof:SubordinateVotingSharesMember"},"factValues":[{"value":"Unlimited"}]},{"name":"rpt:f-709","factDimensions":{"xbrl:concept":"us-gaap:CommonStockVotingRights","xbrl:period":"2024-01-01T00:00:00/2024-10-01T00:00:00","xbrl:entity":"cik:0001771706","us-gaap:StatementClassOfStockAxis":"vreof:SubordinateVotingSharesMember"},"factValues":[{"value":"1 vote for each share"}]},{"name":"rpt:f-710","factDimensions":{"xbrl:concept":"vreof:CommonStockVotingRightsVotesPerShare","xbrl:period":"2024-10-01T00:00:00","xbrl:entity":"cik:0001771706","xbrl:unit":"vreof:Vote","us-gaap:StatementClassOfStockAxis":"vreof:SubordinateVotingSharesMember"},"factValues":[{"value":"1"}]},{"name":"rpt:f-711","factDimensions":{"xbrl:concept":"us-gaap:CommonStockNoParValue","xbrl:period":"2024-10-01T00:00:00","xbrl:entity":"cik:0001771706","xbrl:unit":"iso4217:USD/xbrla:shares","us-gaap:StatementClassOfStockAxis":"vreof:MultipleVotingSharesMember"},"factValues":[{"value":"0"}]},{"name":"rpt:f-712","factDimensions":{"xbrl:concept":"us-gaap:CommonStockSharesAuthorizedUnlimited","xbrl:period":"2024-01-01T00:00:00/2024-10-01T00:00:00","xbrl:entity":"cik:0001771706","us-gaap:StatementClassOfStockAxis":"vreof:MultipleVotingSharesMember"},"factValues":[{"value":"Unlimited"}]},{"name":"rpt:f-713","factDimensions":{"xbrl:concept":"us-gaap:CommonStockVotingRights","xbrl:period":"2024-01-01T00:00:00/2024-10-01T00:00:00","xbrl:entity":"cik:0001771706","us-gaap:StatementClassOfStockAxis":"vreof:MultipleVotingSharesMember"},"factValues":[{"value":"100 votes for each share"}]},{"name":"rpt:f-714","factDimensions":{"xbrl:concept":"vreof:CommonStockVotingRightsVotesPerShare","xbrl:period":"2024-10-01T00:00:00","xbrl:entity":"cik:0001771706","xbrl:unit":"vreof:Vote","us-gaap:StatementClassOfStockAxis":"vreof:MultipleVotingSharesMember"},"factValues":[{"value":"100"}]},{"name":"rpt:f-715","factDimensions":{"xbrl:concept":"us-gaap:CommonStockNoParValue","xbrl:period":"2024-10-01T00:00:00","xbrl:entity":"cik:0001771706","xbrl:unit":"iso4217:USD/xbrla:shares","us-gaap:StatementClassOfStockAxis":"vreof:SuperVotingSharesMember"},"factValues":[{"value":"0"}]},{"name":"rpt:f-716","factDimensions":{"xbrl:concept":"us-gaap:CommonStockSharesAuthorizedUnlimited","xbrl:period":"2024-01-01T00:00:00/2024-10-01T00:00:00","xbrl:entity":"cik:0001771706","us-gaap:StatementClassOfStockAxis":"vreof:SuperVotingSharesMember"},"factValues":[{"value":"Unlimited"}]},{"name":"rpt:f-717","factDimensions":{"xbrl:concept":"us-gaap:CommonStockVotingRights","xbrl:period":"2024-01-01T00:00:00/2024-10-01T00:00:00","xbrl:entity":"cik:0001771706","us-gaap:StatementClassOfStockAxis":"vreof:SuperVotingSharesMember"},"factValues":[{"value":"1,000 votes for each share"}]},{"name":"rpt:f-718","factDimensions":{"xbrl:concept":"vreof:CommonStockVotingRightsVotesPerShare","xbrl:period":"2024-10-01T00:00:00","xbrl:entity":"cik:0001771706","xbrl:unit":"vreof:Vote","us-gaap:StatementClassOfStockAxis":"vreof:SuperVotingSharesMember"},"factValues":[{"value":"1000"}]},{"name":"rpt:f-719","factDimensions":{"xbrl:concept":"vreof:CommonStockVotingRightsVotesPerShare","xbrl:period":"2024-10-01T00:00:00","xbrl:entity":"cik:0001771706","xbrl:unit":"vreof:Vote","us-gaap:StatementClassOfStockAxis":"vreof:SubordinateVotingSharesMember"},"factValues":[{"value":"1"}]},{"name":"rpt:f-720","factDimensions":{"xbrl:concept":"vreof:CommonStockConvertibleNumberOfShares","xbrl:period":"2024-10-01T00:00:00","xbrl:entity":"cik:0001771706","xbrl:unit":"xbrla:shares","us-gaap:StatementClassOfStockAxis":"vreof:SuperVotingSharesMember"},"factValues":[{"value":"1"}]},{"name":"rpt:f-721","factDimensions":{"xbrl:concept":"vreof:NumberOfSharesConverted","xbrl:period":"2024-01-01T00:00:00/2024-10-01T00:00:00","xbrl:entity":"cik:0001771706","xbrl:unit":"xbrla:shares","us-gaap:StatementClassOfStockAxis":"vreof:MultipleVotingSharesMember"},"factValues":[{"value":"32879"}]},{"name":"rpt:f-722","factDimensions":{"xbrl:concept":"us-gaap:StockIssuedDuringPeriodSharesConversionOfConvertibleSecurities","xbrl:period":"2024-01-01T00:00:00/2024-10-01T00:00:00","xbrl:entity":"cik:0001771706","xbrl:unit":"xbrla:shares","us-gaap:StatementClassOfStockAxis":"vreof:SubordinateVotingSharesMember"},"factValues":[{"value":"3287900"}]},{"name":"rpt:f-723","factDimensions":{"xbrl:concept":"us-gaap:StockIssuedDuringPeriodSharesOther","xbrl:period":"2024-01-01T00:00:00/2024-10-01T00:00:00","xbrl:entity":"cik:0001771706","xbrl:unit":"xbrla:shares","us-gaap:AccountsNotesLoansAndFinancingReceivablesByLegalEntityOfCounterpartyTypeAxis":"vreof:ChicagoAtlanticAdminLlcAndAffiliatesMember"},"factValues":[{"value":"12500000"}]},{"name":"rpt:f-724","factDimensions":{"xbrl:concept":"us-gaap:StockIssuedDuringPeriodSharesOther","xbrl:period":"2024-01-01T00:00:00/2024-10-01T00:00:00","xbrl:entity":"cik:0001771706","xbrl:unit":"xbrla:shares","us-gaap:AccountsNotesLoansAndFinancingReceivablesByLegalEntityOfCounterpartyTypeAxis":"vreof:ChicagoAtlanticOpportunityPortfolioLpMember"},"factValues":[{"value":"1300078"}]},{"name":"rpt:f-725","factDimensions":{"xbrl:concept":"us-gaap:ProceedsFromIssuanceOrSaleOfEquity","xbrl:period":"2024-01-01T00:00:00/2024-10-01T00:00:00","xbrl:entity":"cik:0001771706","xbrl:unit":"iso4217:USD","us-gaap:AccountsNotesLoansAndFinancingReceivablesByLegalEntityOfCounterpartyTypeAxis":"vreof:ChicagoAtlanticOpportunityPortfolioLpMember"},"factValues":[{"value":"700000","decimals":0}]},{"name":"rpt:f-726","factDimensions":{"xbrl:concept":"us-gaap:StockIssuedDuringPeriodSharesConversionOfConvertibleSecurities","xbrl:period":"2024-01-01T00:00:00/2024-10-01T00:00:00","xbrl:entity":"cik:0001771706","xbrl:unit":"xbrla:shares","srt:CounterpartyNameAxis":"vreof:ChicagoAtlanticOpportunityPortfolioLpMember","us-gaap:StatementClassOfStockAxis":"vreof:SubordinateVotingSharesMember"},"factValues":[{"value":"73016061"}]},{"name":"rpt:f-727","factDimensions":{"xbrl:concept":"us-gaap:StockIssuedDuringPeriodSharesStockOptionsExercised","xbrl:period":"2024-01-01T00:00:00/2024-10-01T00:00:00","xbrl:entity":"cik:0001771706","xbrl:unit":"xbrla:shares","us-gaap:StatementClassOfStockAxis":"vreof:SubordinateVotingSharesMember"},"factValues":[{"value":"50000"}]},{"name":"rpt:f-728","factDimensions":{"xbrl:concept":"us-gaap:ProceedsFromStockOptionsExercised","xbrl:period":"2024-01-01T00:00:00/2024-10-01T00:00:00","xbrl:entity":"cik:0001771706","xbrl:unit":"iso4217:USD","us-gaap:StatementClassOfStockAxis":"vreof:SubordinateVotingSharesMember"},"factValues":[{"value":"16500","decimals":0}]},{"name":"rpt:f-729","factDimensions":{"xbrl:concept":"vreof:StockIssuedDuringPeriodSharesWarrantsExercised","xbrl:period":"2024-01-01T00:00:00/2024-10-01T00:00:00","xbrl:entity":"cik:0001771706","xbrl:unit":"xbrla:shares","us-gaap:StatementClassOfStockAxis":"vreof:SubordinateVotingSharesMember"},"factValues":[{"value":"303127"}]},{"name":"rpt:f-730","factDimensions":{"xbrl:concept":"us-gaap:ProceedsFromWarrantExercises","xbrl:period":"2024-01-01T00:00:00/2024-10-01T00:00:00","xbrl:entity":"cik:0001771706","xbrl:unit":"iso4217:USD","us-gaap:StatementEquityComponentsAxis":"us-gaap:WarrantMember"},"factValues":[{"value":"43953","decimals":0}]},{"name":"rpt:f-731","factDimensions":{"xbrl:concept":"us-gaap:StockIssuedDuringPeriodSharesIssuedForServices","xbrl:period":"2023-01-01T00:00:00/2023-10-01T00:00:00","xbrl:entity":"cik:0001771706","xbrl:unit":"xbrla:shares","srt:CounterpartyNameAxis":"vreof:ChicagoAtlanticAdminLlcMember","us-gaap:StatementClassOfStockAxis":"vreof:SubordinateVotingSharesMember"},"factValues":[{"value":"15000000"}]},{"name":"rpt:f-732","factDimensions":{"xbrl:concept":"vreof:NumberOfSharesRedeemed","xbrl:period":"2023-01-01T00:00:00/2023-10-01T00:00:00","xbrl:entity":"cik:0001771706","xbrl:unit":"xbrla:shares","us-gaap:StatementClassOfStockAxis":"vreof:SuperVotingSharesMember"},"factValues":[{"value":"65411"}]},{"name":"rpt:f-733","factDimensions":{"xbrl:concept":"vreof:NumberOfSubordinateVotingSharesIssuedOnRedemptionOfSuperVotingShares","xbrl:period":"2023-01-01T00:00:00/2023-10-01T00:00:00","xbrl:entity":"cik:0001771706","xbrl:unit":"xbrla:shares"},"factValues":[{"value":"6541100"}]},{"name":"rpt:f-734","factDimensions":{"xbrl:concept":"vreof:NumberOfSharesRedeemed","xbrl:period":"2023-01-01T00:00:00/2023-10-01T00:00:00","xbrl:entity":"cik:0001771706","xbrl:unit":"xbrla:shares","us-gaap:StatementClassOfStockAxis":"vreof:MultipleVotingSharesMember"},"factValues":[{"value":"702"}]},{"name":"rpt:f-735","factDimensions":{"xbrl:concept":"vreof:NumberOfSubordinateVotingSharesIssuedOnRedemptionOfMultipleVotingShares","xbrl:period":"2023-01-01T00:00:00/2023-10-01T00:00:00","xbrl:entity":"cik:0001771706","xbrl:unit":"xbrla:shares"},"factValues":[{"value":"70200"}]},{"name":"rpt:f-736","factDimensions":{"xbrl:concept":"us-gaap:DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock","xbrl:period":"2024-01-01T00:00:00/2024-10-01T00:00:00","xbrl:entity":"cik:0001771706"},"factValues":[{"value":"
16. Stock-Based Compensation
Stock Options
In January\u00a02019, the Company adopted the 2019 Equity Incentive Plan under which the Company may grant incentive stock options, restricted shares, restricted share units, or other awards. Under the terms of the plan, a total of ten\u00a0percent of the number of shares outstanding assuming conversion of all super voting shares and Multiple Voting Shares to Subordinate Voting Shares are permitted to be issued. The exercise price for incentive stock options issued under the plan will be set by the Compensation Committee but will not be less 100% of the fair market value of the Company\u2019s shares on the date of grant. Incentive stock options have a maximum term of 10 years from the date of grant. The incentive stock options vest at the discretion of the Board of Directors.
Options granted under the equity incentive plan were valued using the Black-Scholes option pricing model with the following weighted average assumptions:
\u00a0\u00a0\u00a0\u00a0 | September 30, | September 30, | \u00a0 | ||
\u00a0\u00a0\u00a0\u00a0 | 2024 | \u00a0\u00a0\u00a0\u00a0 | 2023 | \u00a0 | |
Risk-Free Interest Rate | 3.88 | % | 3.81 | % | |
Weighted Average Exercise Price | $ | 0.49 | $ | 0.25 | |
Weighted Average Stock Price | $ | 0.49 | $ | 0.25 | |
Expected Life of Options (years) | 7.00 | 6.12 | |||
Expected Annualized Volatility | 100.00 | % | 100.00 | % | |
Grant Fair Value | $ | 0.41 | $ | 0.13 | |
Expected Forfeiture Rate | N/A | \u00a0 | N/A | ||
Expected Dividend Yield | N/A | \u00a0 | N/A |
Stock option activity for the nine months ended September 30, 2024, and for the year ended December 31, 2023, is presented below:
\u00a0\u00a0\u00a0\u00a0 | \u00a0\u00a0\u00a0\u00a0 | Weighted\u00a0Average\u00a0\u00a0 | \u00a0\u00a0\u00a0\u00a0 | Weighted\u00a0Avg.\u00a0 | |||
Number\u00a0of\u00a0Options | Exercise\u00a0Price | Remaining\u00a0Life | |||||
Balance, December 31, 2022 | \u00a0 | 23,547,558 | $ | 0.66 | \u00a0 | 7.30 | |
Forfeitures | \u00a0 | (4,137,079) | \u00a0 | 0.82 | \u00a0 | \u2014 | |
Granted | \u00a0 | 10,558,845 | \u00a0 | 0.25 | \u00a0 | 6.42 | |
Balance, December 31, 2023 | \u00a0 | 29,969,324 | $ | 0.50 | \u00a0 | 6.18 | |
Forfeitures | \u00a0 | (952,835) | \u00a0 | 0.77 | \u00a0 | \u2014 | |
Exercised | \u00a0 | (50,000) | \u00a0 | 0.33 | \u00a0 | \u2014 | |
Granted | \u00a0 | 2,473,839 | \u00a0 | 0.49 | \u00a0 | \u2014 | |
Options Outstanding at September 30, 2024 | \u00a0 | 31,440,328 | $ | 0.49 | \u00a0 | 5.72 | |
Options Exercisable at September 30, 2024 | \u00a0 | 26,718,615 | $ | 0.42 | \u00a0 | 5.29 |
During the three and nine month periods ended September 30, 2024, the Company recognized\u00a0$615,215\u00a0and\u00a0$641,196\u00a0in stock-based compensation relating to stock options, respectively. During the three and nine month periods ended September 30, 2023, the Company recognized\u00a0$248,000\u00a0and\u00a0$2,247,635\u00a0in stock-based compensation relating to stock options, respectively. As of September 30, 2024, the total unrecognized compensation costs related to unvested stock options awards granted was $549,340. In addition, the weighted average period over which the unrecognized compensation expense is expected to be recognized is approximately\u00a01.4\u00a0years. The total intrinsic value of stock options outstanding and exercisable as of September 30, 2024, was $4,884,187 and $4,432,386, respectively.
The Company does not estimate forfeiture rates when calculating compensation expense. The Company records forfeitures as they occur.
Warrants
Subordinate Voting Share (SVS) warrants entitle the holder to purchase one Subordinate Voting Share of the Company.
A summary of the warrants outstanding is as follows:
\u00a0\u00a0\u00a0\u00a0 | Number\u00a0of\u00a0 | \u00a0\u00a0\u00a0\u00a0 | Weighted\u00a0Average\u00a0 | \u00a0\u00a0\u00a0\u00a0 | Weighted\u00a0Average\u00a0 | ||
SVS Warrants | Warrants | Exercise\u00a0Price | Remaining\u00a0Life | ||||
Warrants outstanding at December 31, 2022 | \u00a0 | 150,000 | $ | 1.49 | 2.00 | ||
Granted | \u00a0 | 16,250,000 | 0.20 | 5.00 | |||
Warrants outstanding at December 31, 2023 | 16,400,000 | $ | 0.21 | \u00a0 | 4.57 | ||
Granted | \u2014 | \u2014 | \u2014 | ||||
Exercised | (303,127) | 0.145 | \u2014 | ||||
Warrants outstanding at September 30, 2024 | \u00a0 | 16,096,873 | $ | 0.21 | \u00a0 | 3.82 | |
Warrants exercisable at September 30, 2024 | \u00a0 | 16,096,873 | $ | 0.21 | \u00a0 | 3.82 |
\u00a0\u00a0\u00a0\u00a0 | Number\u00a0of\u00a0 | \u00a0\u00a0\u00a0\u00a0 | Weighted\u00a0Average\u00a0 | \u00a0\u00a0\u00a0\u00a0 | Weighted\u00a0Average\u00a0 | ||
SVS Warrants Denominated in C$ | Warrants | Exercise\u00a0Price | Remaining\u00a0Life | ||||
Warrants outstanding at December 31, 2022 | \u00a0 | 3,037,649 | $ | 3.50 | \u00a0 | 3.23 | |
Granted | \u00a0 | \u2014 | \u00a0 | \u2014 | \u00a0 | \u2014 | |
Warrants outstanding at December 31, 2023 | \u00a0 | 3,037,649 | $ | 3.50 | \u00a0 | 2.23 | |
Granted | \u2014 | \u2014 | \u2014 | ||||
Warrants outstanding at September 30, 2024 | 3,037,649 | $ | 3.50 | 1.48 | |||
Warrants exercisable at September 30, 2024 | \u00a0 | 3,037,649 | $ | 3.50 | \u00a0 | 1.48 |
During both the three and nine month periods ended September 30, 2024, $0 in stock-based compensation expense was recorded in connection with outstanding warrants. During the three and nine month periods ended September 30, 2023, ($3,820) and $1,244,404 was recorded in connection with outstanding warrants.
Restricted Stock Units (\u201cRSUs\u201d)
The expense associated with RSUs is based on the closing share price of the Company\u2019s subordinate voting shares on the business day immediately preceding the grant date, adjusted for the absence of future dividends and is amortized on a straight-line basis over the periods during which the restrictions lapse. The Company currently has RSUs that vest over a three year period. The awards are generally subject to forfeiture in the event of termination of employment. During the three and nine months ended September 30, 2024, the Company recognized $689,704 and $782,944, respectively, in stock-based compensation expense related to RSUs. During the three and nine month periods ended September 30, 2023, the Company recognized $52,437\u00a0and $517,376, respectively, in stock-based compensation expense related to RSUs.
A summary of RSUs is as follows:
\u00a0\u00a0\u00a0\u00a0 | \u00a0\u00a0\u00a0\u00a0 | Weighted Avg. | |||
Number\u00a0of\u00a0Shares | Fair Value | ||||
Balance, December 31, 2022 | \u00a0 | 3,221,677 | $ | 0.81 | |
Forfeitures | (678,666) | 0.54 | |||
Balance, December 31, 2023 | 2,543,011 | 0.88 | |||
Granted | 1,728,458 | 0.50 | |||
Forfeitures | (163,720) | 0.54 | |||
Balance, September 30, 2024 | 4,107,749 | 0.73 | |||
Vested at September 30, 2024 | 2,253,298 | $ | 0.71 |
"}]},{"name":"rpt:f-737","factDimensions":{"xbrl:concept":"us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardPercentageOfOutstandingStockMaximum","xbrl:period":"2024-01-01T00:00:00/2024-10-01T00:00:00","xbrl:entity":"cik:0001771706","us-gaap:AwardTypeAxis":"us-gaap:EmployeeStockOptionMember"},"factValues":[{"value":"0.10"}]},{"name":"rpt:f-738","factDimensions":{"xbrl:concept":"vreof:ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExercisePriceMinimumPercentageOfGrantDateFairMarketValueOfShares","xbrl:period":"2024-10-01T00:00:00","xbrl:entity":"cik:0001771706","us-gaap:AwardTypeAxis":"us-gaap:EmployeeStockOptionMember"},"factValues":[{"value":"1","decimals":2}]},{"name":"rpt:f-739","factDimensions":{"xbrl:concept":"us-gaap:SharebasedCompensationArrangementBySharebasedPaymentAwardExpirationPeriod","xbrl:period":"2024-01-01T00:00:00/2024-10-01T00:00:00","xbrl:entity":"cik:0001771706","srt:RangeAxis":"srt:MaximumMember","us-gaap:AwardTypeAxis":"us-gaap:EmployeeStockOptionMember"},"factValues":[{"value":"P10Y"}]},{"name":"rpt:f-740","factDimensions":{"xbrl:concept":"us-gaap:ScheduleOfShareBasedPaymentAwardStockOptionsValuationAssumptionsTableTextBlock","xbrl:period":"2024-01-01T00:00:00/2024-10-01T00:00:00","xbrl:entity":"cik:0001771706"},"factValues":[{"value":"
\u00a0\u00a0\u00a0\u00a0 | September 30, | September 30, | \u00a0 | ||
\u00a0\u00a0\u00a0\u00a0 | 2024 | \u00a0\u00a0\u00a0\u00a0 | 2023 | \u00a0 | |
Risk-Free Interest Rate | 3.88 | % | 3.81 | % | |
Weighted Average Exercise Price | $ | 0.49 | $ | 0.25 | |
Weighted Average Stock Price | $ | 0.49 | $ | 0.25 | |
Expected Life of Options (years) | 7.00 | 6.12 | |||
Expected Annualized Volatility | 100.00 | % | 100.00 | % | |
Grant Fair Value | $ | 0.41 | $ | 0.13 | |
Expected Forfeiture Rate | N/A | \u00a0 | N/A | ||
Expected Dividend Yield | N/A | \u00a0 | N/A |
\u00a0\u00a0\u00a0\u00a0 | \u00a0\u00a0\u00a0\u00a0 | Weighted\u00a0Average\u00a0\u00a0 | \u00a0\u00a0\u00a0\u00a0 | Weighted\u00a0Avg.\u00a0 | |||
Number\u00a0of\u00a0Options | Exercise\u00a0Price | Remaining\u00a0Life | |||||
Balance, December 31, 2022 | \u00a0 | 23,547,558 | $ | 0.66 | \u00a0 | 7.30 | |
Forfeitures | \u00a0 | (4,137,079) | \u00a0 | 0.82 | \u00a0 | \u2014 | |
Granted | \u00a0 | 10,558,845 | \u00a0 | 0.25 | \u00a0 | 6.42 | |
Balance, December 31, 2023 | \u00a0 | 29,969,324 | $ | 0.50 | \u00a0 | 6.18 | |
Forfeitures | \u00a0 | (952,835) | \u00a0 | 0.77 | \u00a0 | \u2014 | |
Exercised | \u00a0 | (50,000) | \u00a0 | 0.33 | \u00a0 | \u2014 | |
Granted | \u00a0 | 2,473,839 | \u00a0 | 0.49 | \u00a0 | \u2014 | |
Options Outstanding at September 30, 2024 | \u00a0 | 31,440,328 | $ | 0.49 | \u00a0 | 5.72 | |
Options Exercisable at September 30, 2024 | \u00a0 | 26,718,615 | $ | 0.42 | \u00a0 | 5.29 |
\u00a0\u00a0\u00a0\u00a0 | Number\u00a0of\u00a0 | \u00a0\u00a0\u00a0\u00a0 | Weighted\u00a0Average\u00a0 | \u00a0\u00a0\u00a0\u00a0 | Weighted\u00a0Average\u00a0 | ||
SVS Warrants | Warrants | Exercise\u00a0Price | Remaining\u00a0Life | ||||
Warrants outstanding at December 31, 2022 | \u00a0 | 150,000 | $ | 1.49 | 2.00 | ||
Granted | \u00a0 | 16,250,000 | 0.20 | 5.00 | |||
Warrants outstanding at December 31, 2023 | 16,400,000 | $ | 0.21 | \u00a0 | 4.57 | ||
Granted | \u2014 | \u2014 | \u2014 | ||||
Exercised | (303,127) | 0.145 | \u2014 | ||||
Warrants outstanding at September 30, 2024 | \u00a0 | 16,096,873 | $ | 0.21 | \u00a0 | 3.82 | |
Warrants exercisable at September 30, 2024 | \u00a0 | 16,096,873 | $ | 0.21 | \u00a0 | 3.82 |
\u00a0\u00a0\u00a0\u00a0 | Number\u00a0of\u00a0 | \u00a0\u00a0\u00a0\u00a0 | Weighted\u00a0Average\u00a0 | \u00a0\u00a0\u00a0\u00a0 | Weighted\u00a0Average\u00a0 | ||
SVS Warrants Denominated in C$ | Warrants | Exercise\u00a0Price | Remaining\u00a0Life | ||||
Warrants outstanding at December 31, 2022 | \u00a0 | 3,037,649 | $ | 3.50 | \u00a0 | 3.23 | |
Granted | \u00a0 | \u2014 | \u00a0 | \u2014 | \u00a0 | \u2014 | |
Warrants outstanding at December 31, 2023 | \u00a0 | 3,037,649 | $ | 3.50 | \u00a0 | 2.23 | |
Granted | \u2014 | \u2014 | \u2014 | ||||
Warrants outstanding at September 30, 2024 | 3,037,649 | $ | 3.50 | 1.48 | |||
Warrants exercisable at September 30, 2024 | \u00a0 | 3,037,649 | $ | 3.50 | \u00a0 | 1.48 |
"}]},{"name":"rpt:f-787","factDimensions":{"xbrl:concept":"us-gaap:ClassOfWarrantOrRightOutstanding","xbrl:period":"2023-01-01T00:00:00","xbrl:entity":"cik:0001771706","xbrl:unit":"xbrla:shares","us-gaap:ClassOfWarrantOrRightAxis":"vreof:CommonStockWarrantsEquitySubordinateVotingShareWarrantsDenominatedInUnitedStatesDollarsMember"},"factValues":[{"value":"150000"}]},{"name":"rpt:f-788","factDimensions":{"xbrl:concept":"vreof:ClassOfWarrantOrRightOutstandingWeightedAverageExercisePrice","xbrl:period":"2023-01-01T00:00:00","xbrl:entity":"cik:0001771706","xbrl:unit":"iso4217:USD/xbrla:shares","us-gaap:ClassOfWarrantOrRightAxis":"vreof:CommonStockWarrantsEquitySubordinateVotingShareWarrantsDenominatedInUnitedStatesDollarsMember"},"factValues":[{"value":"1.49","decimals":2}]},{"name":"rpt:f-789","factDimensions":{"xbrl:concept":"vreof:ClassOfWarrantOrRightOutstandingWeightedAverageRemainingContractualTerm","xbrl:period":"2022-01-01T00:00:00/2023-01-01T00:00:00","xbrl:entity":"cik:0001771706","us-gaap:ClassOfWarrantOrRightAxis":"vreof:CommonStockWarrantsEquitySubordinateVotingShareWarrantsDenominatedInUnitedStatesDollarsMember"},"factValues":[{"value":"P2Y"}]},{"name":"rpt:f-790","factDimensions":{"xbrl:concept":"vreof:ClassOfWarrantOrRightGranted","xbrl:period":"2023-01-01T00:00:00/2024-01-01T00:00:00","xbrl:entity":"cik:0001771706","xbrl:unit":"xbrla:shares","us-gaap:ClassOfWarrantOrRightAxis":"vreof:CommonStockWarrantsEquitySubordinateVotingShareWarrantsDenominatedInUnitedStatesDollarsMember"},"factValues":[{"value":"16250000"}]},{"name":"rpt:f-791","factDimensions":{"xbrl:concept":"vreof:ClassOfWarrantOrRightGrantedWeightedAverageExercisePrice","xbrl:period":"2023-01-01T00:00:00/2024-01-01T00:00:00","xbrl:entity":"cik:0001771706","xbrl:unit":"iso4217:USD/xbrla:shares","us-gaap:ClassOfWarrantOrRightAxis":"vreof:CommonStockWarrantsEquitySubordinateVotingShareWarrantsDenominatedInUnitedStatesDollarsMember"},"factValues":[{"value":"0.20","decimals":2}]},{"name":"rpt:f-792","factDimensions":{"xbrl:concept":"vreof:ClassOfWarrantOrRightGrantedWeightedAverageRemainingContractualTerm","xbrl:period":"2023-01-01T00:00:00/2024-01-01T00:00:00","xbrl:entity":"cik:0001771706","us-gaap:ClassOfWarrantOrRightAxis":"vreof:CommonStockWarrantsEquitySubordinateVotingShareWarrantsDenominatedInUnitedStatesDollarsMember"},"factValues":[{"value":"P5Y"}]},{"name":"rpt:f-793","factDimensions":{"xbrl:concept":"us-gaap:ClassOfWarrantOrRightOutstanding","xbrl:period":"2024-01-01T00:00:00","xbrl:entity":"cik:0001771706","xbrl:unit":"xbrla:shares","us-gaap:ClassOfWarrantOrRightAxis":"vreof:CommonStockWarrantsEquitySubordinateVotingShareWarrantsDenominatedInUnitedStatesDollarsMember"},"factValues":[{"value":"16400000"}]},{"name":"rpt:f-794","factDimensions":{"xbrl:concept":"vreof:ClassOfWarrantOrRightOutstandingWeightedAverageExercisePrice","xbrl:period":"2024-01-01T00:00:00","xbrl:entity":"cik:0001771706","xbrl:unit":"iso4217:USD/xbrla:shares","us-gaap:ClassOfWarrantOrRightAxis":"vreof:CommonStockWarrantsEquitySubordinateVotingShareWarrantsDenominatedInUnitedStatesDollarsMember"},"factValues":[{"value":"0.21","decimals":2}]},{"name":"rpt:f-795","factDimensions":{"xbrl:concept":"vreof:ClassOfWarrantOrRightOutstandingWeightedAverageRemainingContractualTerm","xbrl:period":"2023-01-01T00:00:00/2024-01-01T00:00:00","xbrl:entity":"cik:0001771706","us-gaap:ClassOfWarrantOrRightAxis":"vreof:CommonStockWarrantsEquitySubordinateVotingShareWarrantsDenominatedInUnitedStatesDollarsMember"},"factValues":[{"value":"P4Y6M25D"}]},{"name":"rpt:f-796","factDimensions":{"xbrl:concept":"vreof:StockIssuedDuringPeriodSharesWarrantsExercised","xbrl:period":"2024-01-01T00:00:00/2024-10-01T00:00:00","xbrl:entity":"cik:0001771706","xbrl:unit":"xbrla:shares","us-gaap:ClassOfWarrantOrRightAxis":"vreof:CommonStockWarrantsEquitySubordinateVotingShareWarrantsDenominatedInUnitedStatesDollarsMember"},"factValues":[{"value":"303127"}]},{"name":"rpt:f-797","factDimensions":{"xbrl:concept":"vreof:ClassOfWarrantOrRightExercisedWeightedAverageExercisePrice","xbrl:period":"2024-01-01T00:00:00/2024-10-01T00:00:00","xbrl:entity":"cik:0001771706","xbrl:unit":"iso4217:USD/xbrla:shares","us-gaap:ClassOfWarrantOrRightAxis":"vreof:CommonStockWarrantsEquitySubordinateVotingShareWarrantsDenominatedInUnitedStatesDollarsMember"},"factValues":[{"value":"0.145","decimals":3}]},{"name":"rpt:f-798","factDimensions":{"xbrl:concept":"us-gaap:ClassOfWarrantOrRightOutstanding","xbrl:period":"2024-10-01T00:00:00","xbrl:entity":"cik:0001771706","xbrl:unit":"xbrla:shares","us-gaap:ClassOfWarrantOrRightAxis":"vreof:CommonStockWarrantsEquitySubordinateVotingShareWarrantsDenominatedInUnitedStatesDollarsMember"},"factValues":[{"value":"16096873"}]},{"name":"rpt:f-799","factDimensions":{"xbrl:concept":"vreof:ClassOfWarrantOrRightOutstandingWeightedAverageExercisePrice","xbrl:period":"2024-10-01T00:00:00","xbrl:entity":"cik:0001771706","xbrl:unit":"iso4217:USD/xbrla:shares","us-gaap:ClassOfWarrantOrRightAxis":"vreof:CommonStockWarrantsEquitySubordinateVotingShareWarrantsDenominatedInUnitedStatesDollarsMember"},"factValues":[{"value":"0.21","decimals":2}]},{"name":"rpt:f-800","factDimensions":{"xbrl:concept":"vreof:ClassOfWarrantOrRightOutstandingWeightedAverageRemainingContractualTerm","xbrl:period":"2024-01-01T00:00:00/2024-10-01T00:00:00","xbrl:entity":"cik:0001771706","us-gaap:ClassOfWarrantOrRightAxis":"vreof:CommonStockWarrantsEquitySubordinateVotingShareWarrantsDenominatedInUnitedStatesDollarsMember"},"factValues":[{"value":"P3Y9M25D"}]},{"name":"rpt:f-801","factDimensions":{"xbrl:concept":"vreof:ClassOfWarrantOrRightExercisable","xbrl:period":"2024-10-01T00:00:00","xbrl:entity":"cik:0001771706","xbrl:unit":"xbrla:shares","us-gaap:ClassOfWarrantOrRightAxis":"vreof:CommonStockWarrantsEquitySubordinateVotingShareWarrantsDenominatedInUnitedStatesDollarsMember"},"factValues":[{"value":"16096873"}]},{"name":"rpt:f-802","factDimensions":{"xbrl:concept":"vreof:ClassOfWarrantOrRightExercisableWeightedAverageExercisePrice","xbrl:period":"2024-10-01T00:00:00","xbrl:entity":"cik:0001771706","xbrl:unit":"iso4217:USD/xbrla:shares","us-gaap:ClassOfWarrantOrRightAxis":"vreof:CommonStockWarrantsEquitySubordinateVotingShareWarrantsDenominatedInUnitedStatesDollarsMember"},"factValues":[{"value":"0.21","decimals":2}]},{"name":"rpt:f-803","factDimensions":{"xbrl:concept":"vreof:ClassOfWarrantOrRightExercisableWeightedAverageRemainingContractualTerm","xbrl:period":"2024-01-01T00:00:00/2024-10-01T00:00:00","xbrl:entity":"cik:0001771706","us-gaap:ClassOfWarrantOrRightAxis":"vreof:CommonStockWarrantsEquitySubordinateVotingShareWarrantsDenominatedInUnitedStatesDollarsMember"},"factValues":[{"value":"P3Y9M25D"}]},{"name":"rpt:f-804","factDimensions":{"xbrl:concept":"us-gaap:ClassOfWarrantOrRightOutstanding","xbrl:period":"2023-01-01T00:00:00","xbrl:entity":"cik:0001771706","xbrl:unit":"xbrla:shares","us-gaap:ClassOfWarrantOrRightAxis":"vreof:CommonStockWarrantsEquitySubordinateVotingShareWarrantsDenominatedInCanadianDollarsMember"},"factValues":[{"value":"3037649"}]},{"name":"rpt:f-805","factDimensions":{"xbrl:concept":"vreof:ClassOfWarrantOrRightOutstandingWeightedAverageExercisePrice","xbrl:period":"2023-01-01T00:00:00","xbrl:entity":"cik:0001771706","xbrl:unit":"iso4217:USD/xbrla:shares","us-gaap:ClassOfWarrantOrRightAxis":"vreof:CommonStockWarrantsEquitySubordinateVotingShareWarrantsDenominatedInCanadianDollarsMember"},"factValues":[{"value":"3.50","decimals":2}]},{"name":"rpt:f-806","factDimensions":{"xbrl:concept":"vreof:ClassOfWarrantOrRightOutstandingWeightedAverageRemainingContractualTerm","xbrl:period":"2022-01-01T00:00:00/2023-01-01T00:00:00","xbrl:entity":"cik:0001771706","us-gaap:ClassOfWarrantOrRightAxis":"vreof:CommonStockWarrantsEquitySubordinateVotingShareWarrantsDenominatedInCanadianDollarsMember"},"factValues":[{"value":"P3Y2M23D"}]},{"name":"rpt:f-807","factDimensions":{"xbrl:concept":"us-gaap:ClassOfWarrantOrRightOutstanding","xbrl:period":"2024-01-01T00:00:00","xbrl:entity":"cik:0001771706","xbrl:unit":"xbrla:shares","us-gaap:ClassOfWarrantOrRightAxis":"vreof:CommonStockWarrantsEquitySubordinateVotingShareWarrantsDenominatedInCanadianDollarsMember"},"factValues":[{"value":"3037649"}]},{"name":"rpt:f-808","factDimensions":{"xbrl:concept":"vreof:ClassOfWarrantOrRightOutstandingWeightedAverageExercisePrice","xbrl:period":"2024-01-01T00:00:00","xbrl:entity":"cik:0001771706","xbrl:unit":"iso4217:USD/xbrla:shares","us-gaap:ClassOfWarrantOrRightAxis":"vreof:CommonStockWarrantsEquitySubordinateVotingShareWarrantsDenominatedInCanadianDollarsMember"},"factValues":[{"value":"3.50","decimals":2}]},{"name":"rpt:f-809","factDimensions":{"xbrl:concept":"vreof:ClassOfWarrantOrRightOutstandingWeightedAverageRemainingContractualTerm","xbrl:period":"2023-01-01T00:00:00/2024-01-01T00:00:00","xbrl:entity":"cik:0001771706","us-gaap:ClassOfWarrantOrRightAxis":"vreof:CommonStockWarrantsEquitySubordinateVotingShareWarrantsDenominatedInCanadianDollarsMember"},"factValues":[{"value":"P2Y2M23D"}]},{"name":"rpt:f-810","factDimensions":{"xbrl:concept":"us-gaap:ClassOfWarrantOrRightOutstanding","xbrl:period":"2024-10-01T00:00:00","xbrl:entity":"cik:0001771706","xbrl:unit":"xbrla:shares","us-gaap:ClassOfWarrantOrRightAxis":"vreof:CommonStockWarrantsEquitySubordinateVotingShareWarrantsDenominatedInCanadianDollarsMember"},"factValues":[{"value":"3037649"}]},{"name":"rpt:f-811","factDimensions":{"xbrl:concept":"vreof:ClassOfWarrantOrRightOutstandingWeightedAverageExercisePrice","xbrl:period":"2024-10-01T00:00:00","xbrl:entity":"cik:0001771706","xbrl:unit":"iso4217:USD/xbrla:shares","us-gaap:ClassOfWarrantOrRightAxis":"vreof:CommonStockWarrantsEquitySubordinateVotingShareWarrantsDenominatedInCanadianDollarsMember"},"factValues":[{"value":"3.50","decimals":2}]},{"name":"rpt:f-812","factDimensions":{"xbrl:concept":"vreof:ClassOfWarrantOrRightOutstandingWeightedAverageRemainingContractualTerm","xbrl:period":"2024-01-01T00:00:00/2024-10-01T00:00:00","xbrl:entity":"cik:0001771706","us-gaap:ClassOfWarrantOrRightAxis":"vreof:CommonStockWarrantsEquitySubordinateVotingShareWarrantsDenominatedInCanadianDollarsMember"},"factValues":[{"value":"P1Y5M23D"}]},{"name":"rpt:f-813","factDimensions":{"xbrl:concept":"vreof:ClassOfWarrantOrRightExercisable","xbrl:period":"2024-10-01T00:00:00","xbrl:entity":"cik:0001771706","xbrl:unit":"xbrla:shares","us-gaap:ClassOfWarrantOrRightAxis":"vreof:CommonStockWarrantsEquitySubordinateVotingShareWarrantsDenominatedInCanadianDollarsMember"},"factValues":[{"value":"3037649"}]},{"name":"rpt:f-814","factDimensions":{"xbrl:concept":"vreof:ClassOfWarrantOrRightExercisableWeightedAverageExercisePrice","xbrl:period":"2024-10-01T00:00:00","xbrl:entity":"cik:0001771706","xbrl:unit":"iso4217:USD/xbrla:shares","us-gaap:ClassOfWarrantOrRightAxis":"vreof:CommonStockWarrantsEquitySubordinateVotingShareWarrantsDenominatedInCanadianDollarsMember"},"factValues":[{"value":"3.50","decimals":2}]},{"name":"rpt:f-815","factDimensions":{"xbrl:concept":"vreof:ClassOfWarrantOrRightExercisableWeightedAverageRemainingContractualTerm","xbrl:period":"2024-01-01T00:00:00/2024-10-01T00:00:00","xbrl:entity":"cik:0001771706","us-gaap:ClassOfWarrantOrRightAxis":"vreof:CommonStockWarrantsEquitySubordinateVotingShareWarrantsDenominatedInCanadianDollarsMember"},"factValues":[{"value":"P1Y5M23D"}]},{"name":"rpt:f-816","factDimensions":{"xbrl:concept":"us-gaap:AllocatedShareBasedCompensationExpense","xbrl:period":"2024-07-01T00:00:00/2024-10-01T00:00:00","xbrl:entity":"cik:0001771706","xbrl:unit":"iso4217:USD","us-gaap:ClassOfWarrantOrRightAxis":"vreof:CommonStockWarrantsEquitySubordinateVotingShareWarrantsMember"},"factValues":[{"value":"0","decimals":0}]},{"name":"rpt:f-817","factDimensions":{"xbrl:concept":"us-gaap:AllocatedShareBasedCompensationExpense","xbrl:period":"2023-07-01T00:00:00/2023-10-01T00:00:00","xbrl:entity":"cik:0001771706","xbrl:unit":"iso4217:USD","us-gaap:ClassOfWarrantOrRightAxis":"vreof:CommonStockWarrantsEquitySubordinateVotingShareWarrantsMember"},"factValues":[{"value":"-3820","decimals":0}]},{"name":"rpt:f-818","factDimensions":{"xbrl:concept":"us-gaap:AllocatedShareBasedCompensationExpense","xbrl:period":"2023-01-01T00:00:00/2023-10-01T00:00:00","xbrl:entity":"cik:0001771706","xbrl:unit":"iso4217:USD","us-gaap:ClassOfWarrantOrRightAxis":"vreof:CommonStockWarrantsEquitySubordinateVotingShareWarrantsMember"},"factValues":[{"value":"1244404","decimals":0}]},{"name":"rpt:f-819","factDimensions":{"xbrl:concept":"us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardAwardVestingPeriod1","xbrl:period":"2024-01-01T00:00:00/2024-10-01T00:00:00","xbrl:entity":"cik:0001771706","us-gaap:AwardTypeAxis":"us-gaap:RestrictedStockUnitsRSUMember"},"factValues":[{"value":"P3Y"}]},{"name":"rpt:f-820","factDimensions":{"xbrl:concept":"us-gaap:AllocatedShareBasedCompensationExpense","xbrl:period":"2024-07-01T00:00:00/2024-10-01T00:00:00","xbrl:entity":"cik:0001771706","xbrl:unit":"iso4217:USD","us-gaap:AwardTypeAxis":"us-gaap:RestrictedStockUnitsRSUMember"},"factValues":[{"value":"689704","decimals":0}]},{"name":"rpt:f-821","factDimensions":{"xbrl:concept":"us-gaap:AllocatedShareBasedCompensationExpense","xbrl:period":"2024-01-01T00:00:00/2024-10-01T00:00:00","xbrl:entity":"cik:0001771706","xbrl:unit":"iso4217:USD","us-gaap:AwardTypeAxis":"us-gaap:RestrictedStockUnitsRSUMember"},"factValues":[{"value":"782944","decimals":0}]},{"name":"rpt:f-822","factDimensions":{"xbrl:concept":"us-gaap:AllocatedShareBasedCompensationExpense","xbrl:period":"2023-07-01T00:00:00/2023-10-01T00:00:00","xbrl:entity":"cik:0001771706","xbrl:unit":"iso4217:USD","us-gaap:AwardTypeAxis":"us-gaap:RestrictedStockUnitsRSUMember"},"factValues":[{"value":"52437","decimals":0}]},{"name":"rpt:f-823","factDimensions":{"xbrl:concept":"us-gaap:AllocatedShareBasedCompensationExpense","xbrl:period":"2023-01-01T00:00:00/2023-10-01T00:00:00","xbrl:entity":"cik:0001771706","xbrl:unit":"iso4217:USD","us-gaap:AwardTypeAxis":"us-gaap:RestrictedStockUnitsRSUMember"},"factValues":[{"value":"517376","decimals":0}]},{"name":"rpt:f-824","factDimensions":{"xbrl:concept":"us-gaap:ScheduleOfShareBasedCompensationRestrictedStockUnitsAwardActivityTableTextBlock","xbrl:period":"2024-01-01T00:00:00/2024-10-01T00:00:00","xbrl:entity":"cik:0001771706"},"factValues":[{"value":"
\u00a0\u00a0\u00a0\u00a0 | \u00a0\u00a0\u00a0\u00a0 | Weighted Avg. | |||
Number\u00a0of\u00a0Shares | Fair Value | ||||
Balance, December 31, 2022 | \u00a0 | 3,221,677 | $ | 0.81 | |
Forfeitures | (678,666) | 0.54 | |||
Balance, December 31, 2023 | 2,543,011 | 0.88 | |||
Granted | 1,728,458 | 0.50 | |||
Forfeitures | (163,720) | 0.54 | |||
Balance, September 30, 2024 | 4,107,749 | 0.73 | |||
Vested at September 30, 2024 | 2,253,298 | $ | 0.71 |
"}]},{"name":"rpt:f-825","factDimensions":{"xbrl:concept":"us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsNonvestedNumber","xbrl:period":"2023-01-01T00:00:00","xbrl:entity":"cik:0001771706","xbrl:unit":"xbrla:shares","us-gaap:AwardTypeAxis":"us-gaap:RestrictedStockUnitsRSUMember"},"factValues":[{"value":"3221677"}]},{"name":"rpt:f-826","factDimensions":{"xbrl:concept":"us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsNonvestedWeightedAverageGrantDateFairValue","xbrl:period":"2023-01-01T00:00:00","xbrl:entity":"cik:0001771706","xbrl:unit":"iso4217:USD/xbrla:shares","us-gaap:AwardTypeAxis":"us-gaap:RestrictedStockUnitsRSUMember"},"factValues":[{"value":"0.81","decimals":2}]},{"name":"rpt:f-827","factDimensions":{"xbrl:concept":"us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsForfeitedInPeriod","xbrl:period":"2023-01-01T00:00:00/2024-01-01T00:00:00","xbrl:entity":"cik:0001771706","xbrl:unit":"xbrla:shares","us-gaap:AwardTypeAxis":"us-gaap:RestrictedStockUnitsRSUMember"},"factValues":[{"value":"678666"}]},{"name":"rpt:f-828","factDimensions":{"xbrl:concept":"us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsForfeituresWeightedAverageGrantDateFairValue","xbrl:period":"2023-01-01T00:00:00/2024-01-01T00:00:00","xbrl:entity":"cik:0001771706","xbrl:unit":"iso4217:USD/xbrla:shares","us-gaap:AwardTypeAxis":"us-gaap:RestrictedStockUnitsRSUMember"},"factValues":[{"value":"0.54","decimals":2}]},{"name":"rpt:f-829","factDimensions":{"xbrl:concept":"us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsNonvestedNumber","xbrl:period":"2024-01-01T00:00:00","xbrl:entity":"cik:0001771706","xbrl:unit":"xbrla:shares","us-gaap:AwardTypeAxis":"us-gaap:RestrictedStockUnitsRSUMember"},"factValues":[{"value":"2543011"}]},{"name":"rpt:f-830","factDimensions":{"xbrl:concept":"us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsNonvestedWeightedAverageGrantDateFairValue","xbrl:period":"2024-01-01T00:00:00","xbrl:entity":"cik:0001771706","xbrl:unit":"iso4217:USD/xbrla:shares","us-gaap:AwardTypeAxis":"us-gaap:RestrictedStockUnitsRSUMember"},"factValues":[{"value":"0.88","decimals":2}]},{"name":"rpt:f-831","factDimensions":{"xbrl:concept":"us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsGrantsInPeriod","xbrl:period":"2024-01-01T00:00:00/2024-10-01T00:00:00","xbrl:entity":"cik:0001771706","xbrl:unit":"xbrla:shares","us-gaap:AwardTypeAxis":"us-gaap:RestrictedStockUnitsRSUMember"},"factValues":[{"value":"1728458"}]},{"name":"rpt:f-832","factDimensions":{"xbrl:concept":"us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsGrantsInPeriodWeightedAverageGrantDateFairValue","xbrl:period":"2024-01-01T00:00:00/2024-10-01T00:00:00","xbrl:entity":"cik:0001771706","xbrl:unit":"iso4217:USD/xbrla:shares","us-gaap:AwardTypeAxis":"us-gaap:RestrictedStockUnitsRSUMember"},"factValues":[{"value":"0.50","decimals":2}]},{"name":"rpt:f-833","factDimensions":{"xbrl:concept":"us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsForfeitedInPeriod","xbrl:period":"2024-01-01T00:00:00/2024-10-01T00:00:00","xbrl:entity":"cik:0001771706","xbrl:unit":"xbrla:shares","us-gaap:AwardTypeAxis":"us-gaap:RestrictedStockUnitsRSUMember"},"factValues":[{"value":"163720"}]},{"name":"rpt:f-834","factDimensions":{"xbrl:concept":"us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsForfeituresWeightedAverageGrantDateFairValue","xbrl:period":"2024-01-01T00:00:00/2024-10-01T00:00:00","xbrl:entity":"cik:0001771706","xbrl:unit":"iso4217:USD/xbrla:shares","us-gaap:AwardTypeAxis":"us-gaap:RestrictedStockUnitsRSUMember"},"factValues":[{"value":"0.54","decimals":2}]},{"name":"rpt:f-835","factDimensions":{"xbrl:concept":"us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsNonvestedNumber","xbrl:period":"2024-10-01T00:00:00","xbrl:entity":"cik:0001771706","xbrl:unit":"xbrla:shares","us-gaap:AwardTypeAxis":"us-gaap:RestrictedStockUnitsRSUMember"},"factValues":[{"value":"4107749"}]},{"name":"rpt:f-836","factDimensions":{"xbrl:concept":"us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsNonvestedWeightedAverageGrantDateFairValue","xbrl:period":"2024-10-01T00:00:00","xbrl:entity":"cik:0001771706","xbrl:unit":"iso4217:USD/xbrla:shares","us-gaap:AwardTypeAxis":"us-gaap:RestrictedStockUnitsRSUMember"},"factValues":[{"value":"0.73","decimals":2}]},{"name":"rpt:f-837","factDimensions":{"xbrl:concept":"us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsVestedInPeriod","xbrl:period":"2024-01-01T00:00:00/2024-10-01T00:00:00","xbrl:entity":"cik:0001771706","xbrl:unit":"xbrla:shares","us-gaap:AwardTypeAxis":"us-gaap:RestrictedStockUnitsRSUMember"},"factValues":[{"value":"2253298"}]},{"name":"rpt:f-838","factDimensions":{"xbrl:concept":"us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsVestedInPeriodWeightedAverageGrantDateFairValue","xbrl:period":"2024-01-01T00:00:00/2024-10-01T00:00:00","xbrl:entity":"cik:0001771706","xbrl:unit":"iso4217:USD/xbrla:shares","us-gaap:AwardTypeAxis":"us-gaap:RestrictedStockUnitsRSUMember"},"factValues":[{"value":"0.71","decimals":2}]},{"name":"rpt:f-839","factDimensions":{"xbrl:concept":"us-gaap:CommitmentsAndContingenciesDisclosureTextBlock","xbrl:period":"2024-01-01T00:00:00/2024-10-01T00:00:00","xbrl:entity":"cik:0001771706"},"factValues":[{"value":"
17. Commitments and Contingencies
Legal proceedings
Schneyer
On February\u00a025, 2019, Dr.\u00a0Mark Schneyer (\u201cSchneyer\u201d) filed a lawsuit in Minnesota District Court, Fourth District (the \u201cCourt\u201d), on his own behalf and, derivatively, on behalf of Dorchester Capital, LLC, naming Vireo Health, Inc. (\u201cVireo U.S.\u201d), Dorchester Management, LLC (\u201cDorchester Management\u201d), and Dorchester Capital, LLC (\u201cCapital\u201d), as defendants. The essence of the claims made by Schneyer is Vireo U.S. paid an inadequate price for MaryMed, LLC (\u201cMaryMed\u201d), which it purchased from Capital in 2018, and that the consideration given\u00a0\u2013 shares of preferred stock in Vireo U.S.\u00a0\u2013 was distributed inappropriately by Capital at the direction of Dorchester Management (the managing member of Capital). Schneyer, who is a Class\u00a0B member of Capital, sought unspecified damages in excess of\u00a0$50,000\u00a0and other relief. Dorchester Management, LLC is an affiliated entity to Vireo U.S. and was previously used as a management company over Dorchester Capital,\u00a0LLC. It no longer has active operations following Vireo Health,\u00a0Inc.\u2019s acquisition of MaryMed, LLC in 2018. It was owned and controlled by Kyle E. Kingsley and Amber H. Shimpa, executive officers and directors of Vireo U.S. and the Company.
While Vireo U.S. continues to believe that Schneyer\u2019s claims lack merit, it agreed to settle the litigation in April 2023 to avoid the expense, distraction and risk of the pre-trial and trial processes. Entering into this settlement in no way changed the defendants\u2019 position that they did nothing wrong and that the claims were baseless.
Verano
On January 31, 2022, the Company entered into the Arrangement Agreement with Verano, pursuant to which Verano was to acquire all of the issued and outstanding shares of Vireo Growth pursuant to a Plan of Arrangement. Subject to the terms and conditions set forth in the Arrangement Agreement and the Plan of Arrangement, holders of Vireo Growth Shares would receive\u00a00.22652\u00a0of a Verano Subordinate Voting Share, subject to adjustment as described below, for each Subordinate Voting Share held, and\u00a022.652\u00a0Verano Subordinate Voting Shares for each Multiple Voting Share and Super Voting Share held, immediately prior to the effective time of the Arrangement.
\u00a0
On October 13, 2022, Vireo Growth received a notice of purported termination of the Arrangement Agreement (the \u201cNotice\u201d) from Verano. The Notice asserted certain breaches of the Arrangement Agreement, including claims the Company\u2019s public filings and communications with respect to its business and ongoing operations were misleading and that the Company breached its representations to Verano under the Arrangement Agreement. Verano also claimed, as a result of such breaches, it is entitled to payment of a $14,875,000\u00a0termination fee and its transaction expenses. Vireo Growth denies all of Verano\u2019s allegations and affirmatively asserts that it has complied with its obligations under the Arrangement Agreement, and with its disclosure obligations under US and Canadian law, in all material respects at all times. The Company believes that Verano has no factual or legal basis to justify or support its purported termination of the Arrangement Agreement, which the Company determined to treat as a repudiation of the Arrangement Agreement.
\u00a0
On October 21, 2022, Vireo Growth commenced an action in the Supreme Court of British Columbia against Verano after Verano wrongfully repudiated the Arrangement Agreement. The Company is seeking damages, costs and interest, based on Verano's breach of contract and of its duty of good faith and honest performance.
\u00a0
On November 14, 2022, Verano filed counterclaims against the Company for the termination fee and transaction expenses described above.
\u00a0
On July 31, 2023, the Company filed a requisition for adjournment of its application filed July 14, 2023, and set for hearing on July 31, 2023 to compel Verano\u2019s compliance with document production based upon the Company\u2019s belief that Verano was engaging in tactics to delay the litigation.\u00a0
\u00a0
Throughout 2023, the Company served\u00a04\u00a0lists of documents, reviewed document production from Verano, and prepared for examinations for discovery.\u00a0
On May 2, 2024, the Company filed an application with the Supreme Court of British Columbia for summary determination. The Company is seeking substantial damages, specifically US $860.9 million, as well as other costs and legal fees, based on Verano\u2019s breach of contract and of its duty of good faith and honest performance.
\u00a0
Due to uncertainties inherent in litigation, it is not possible for Vireo Growth to predict the timing or final outcome of the legal proceedings against Verano or to determine the amount of damages, if any, that may be awarded.\u00a0 The damages sought will be significant and material given that Verano\u2019s breach left the Company in a vulnerable position resulting in the Company being constrained in its ability to fund growth initiatives that were desirable and that its competitors were able to undertake, most notably in Minnesota and New York markets.
Lease commitments
The Company leases various facilities, under non-cancelable finance and operating leases, which expire at various dates through September 2041.
"}]},{"name":"rpt:f-840","factDimensions":{"xbrl:concept":"us-gaap:LossContingencyEstimateOfPossibleLoss","xbrl:period":"2019-02-26T00:00:00","xbrl:entity":"cik:0001771706","xbrl:unit":"iso4217:USD","srt:RangeAxis":"srt:MinimumMember","srt:TitleOfIndividualAxis":"vreof:Dr.MarkSchneyerMember"},"factValues":[{"value":"50000","decimals":0}]},{"name":"rpt:f-841","factDimensions":{"xbrl:concept":"vreof:ExchangeRatioOfSharesReceivable","xbrl:period":"2022-02-01T00:00:00","xbrl:entity":"cik:0001771706","us-gaap:StatementClassOfStockAxis":"vreof:SubordinateVotingSharesMember","us-gaap:TypeOfArrangementAxis":"vreof:ArrangementAgreementWithVeranoHoldingsCorpMember"},"factValues":[{"value":"0.22652","decimals":5}]},{"name":"rpt:f-842","factDimensions":{"xbrl:concept":"vreof:ExchangeRatioOfSharesReceivable","xbrl:period":"2022-02-01T00:00:00","xbrl:entity":"cik:0001771706","us-gaap:StatementClassOfStockAxis":"vreof:MultipleVotingSharesMember","us-gaap:TypeOfArrangementAxis":"vreof:ArrangementAgreementWithVeranoHoldingsCorpMember"},"factValues":[{"value":"22.652","decimals":3}]},{"name":"rpt:f-843","factDimensions":{"xbrl:concept":"us-gaap:LossContingencyDamagesSoughtValue","xbrl:period":"2022-10-13T00:00:00/2022-10-14T00:00:00","xbrl:entity":"cik:0001771706","xbrl:unit":"iso4217:USD","us-gaap:TypeOfArrangementAxis":"vreof:ArrangementAgreementWithVeranoHoldingsCorpMember"},"factValues":[{"value":"14875000","decimals":0}]},{"name":"rpt:f-844","factDimensions":{"xbrl:concept":"vreof:LossContingencyListOfDocumentsServedForExaminationNumber","xbrl:period":"2023-01-01T00:00:00/2024-01-01T00:00:00","xbrl:entity":"cik:0001771706","xbrl:unit":"vreof:item","us-gaap:TypeOfArrangementAxis":"vreof:ArrangementAgreementWithVeranoHoldingsCorpMember"},"factValues":[{"value":"4"}]},{"name":"rpt:f-845","factDimensions":{"xbrl:concept":"us-gaap:LossContingencyDamagesSoughtValue","xbrl:period":"2024-05-02T00:00:00/2024-05-03T00:00:00","xbrl:entity":"cik:0001771706","xbrl:unit":"iso4217:USD","us-gaap:TypeOfArrangementAxis":"vreof:ArrangementAgreementWithVeranoHoldingsCorpMember"},"factValues":[{"value":"860900000","decimals":-5}]},{"name":"rpt:f-846","factDimensions":{"xbrl:concept":"vreof:GeneralAndAdministrativeExpensesTextBlock","xbrl:period":"2024-01-01T00:00:00/2024-10-01T00:00:00","xbrl:entity":"cik:0001771706"},"factValues":[{"value":"18. Selling, General and Administrative Expenses
Selling, general and administrative expenses are comprised of the following items:
Three Months Ended | Nine Months Ended | |||||||||||
\u00a0\u00a0\u00a0\u00a0 | 2024 | \u00a0\u00a0\u00a0\u00a0 | 2023 | 2024 | \u00a0\u00a0\u00a0\u00a0 | 2023 | ||||||
Salaries and benefits | $ | 3,635,658 | $ | 3,844,445 | $ | 10,814,786 | $ | 11,507,372 | ||||
Professional fees | \u00a0 | 1,026,305 | \u00a0 | 687,007 | \u00a0 | 4,324,986 | \u00a0 | 3,273,733 | ||||
Insurance expenses | \u00a0 | 435,789 | \u00a0 | 656,100 | \u00a0 | 1,414,059 | \u00a0 | 1,967,588 | ||||
Marketing | 239,932 | 161,782 | 651,892 | 613,963 | ||||||||
Other expenses | \u00a0 | 1,573,594 | \u00a0 | 1,399,980 | \u00a0 | 4,321,399 | \u00a0 | 4,602,920 | ||||
Total | $ | 6,911,278 | $ | 6,749,314 | $ | 21,527,122 | $ | 21,965,576 |
"}]},{"name":"rpt:f-847","factDimensions":{"xbrl:concept":"vreof:GeneralAndAdministrativeExpensesTableTextBlock","xbrl:period":"2024-01-01T00:00:00/2024-10-01T00:00:00","xbrl:entity":"cik:0001771706"},"factValues":[{"value":"
Three Months Ended | Nine Months Ended | |||||||||||
\u00a0\u00a0\u00a0\u00a0 | 2024 | \u00a0\u00a0\u00a0\u00a0 | 2023 | 2024 | \u00a0\u00a0\u00a0\u00a0 | 2023 | ||||||
Salaries and benefits | $ | 3,635,658 | $ | 3,844,445 | $ | 10,814,786 | $ | 11,507,372 | ||||
Professional fees | \u00a0 | 1,026,305 | \u00a0 | 687,007 | \u00a0 | 4,324,986 | \u00a0 | 3,273,733 | ||||
Insurance expenses | \u00a0 | 435,789 | \u00a0 | 656,100 | \u00a0 | 1,414,059 | \u00a0 | 1,967,588 | ||||
Marketing | 239,932 | 161,782 | 651,892 | 613,963 | ||||||||
Other expenses | \u00a0 | 1,573,594 | \u00a0 | 1,399,980 | \u00a0 | 4,321,399 | \u00a0 | 4,602,920 | ||||
Total | $ | 6,911,278 | $ | 6,749,314 | $ | 21,527,122 | $ | 21,965,576 |
"}]},{"name":"rpt:f-848","factDimensions":{"xbrl:concept":"us-gaap:LaborAndRelatedExpense","xbrl:period":"2024-07-01T00:00:00/2024-10-01T00:00:00","xbrl:entity":"cik:0001771706","xbrl:unit":"iso4217:USD"},"factValues":[{"value":"3635658","decimals":0}]},{"name":"rpt:f-849","factDimensions":{"xbrl:concept":"us-gaap:LaborAndRelatedExpense","xbrl:period":"2023-07-01T00:00:00/2023-10-01T00:00:00","xbrl:entity":"cik:0001771706","xbrl:unit":"iso4217:USD"},"factValues":[{"value":"3844445","decimals":0}]},{"name":"rpt:f-850","factDimensions":{"xbrl:concept":"us-gaap:LaborAndRelatedExpense","xbrl:period":"2024-01-01T00:00:00/2024-10-01T00:00:00","xbrl:entity":"cik:0001771706","xbrl:unit":"iso4217:USD"},"factValues":[{"value":"10814786","decimals":0}]},{"name":"rpt:f-851","factDimensions":{"xbrl:concept":"us-gaap:LaborAndRelatedExpense","xbrl:period":"2023-01-01T00:00:00/2023-10-01T00:00:00","xbrl:entity":"cik:0001771706","xbrl:unit":"iso4217:USD"},"factValues":[{"value":"11507372","decimals":0}]},{"name":"rpt:f-852","factDimensions":{"xbrl:concept":"us-gaap:ProfessionalFees","xbrl:period":"2024-07-01T00:00:00/2024-10-01T00:00:00","xbrl:entity":"cik:0001771706","xbrl:unit":"iso4217:USD"},"factValues":[{"value":"1026305","decimals":0}]},{"name":"rpt:f-853","factDimensions":{"xbrl:concept":"us-gaap:ProfessionalFees","xbrl:period":"2023-07-01T00:00:00/2023-10-01T00:00:00","xbrl:entity":"cik:0001771706","xbrl:unit":"iso4217:USD"},"factValues":[{"value":"687007","decimals":0}]},{"name":"rpt:f-854","factDimensions":{"xbrl:concept":"us-gaap:ProfessionalFees","xbrl:period":"2024-01-01T00:00:00/2024-10-01T00:00:00","xbrl:entity":"cik:0001771706","xbrl:unit":"iso4217:USD"},"factValues":[{"value":"4324986","decimals":0}]},{"name":"rpt:f-855","factDimensions":{"xbrl:concept":"us-gaap:ProfessionalFees","xbrl:period":"2023-01-01T00:00:00/2023-10-01T00:00:00","xbrl:entity":"cik:0001771706","xbrl:unit":"iso4217:USD"},"factValues":[{"value":"3273733","decimals":0}]},{"name":"rpt:f-856","factDimensions":{"xbrl:concept":"us-gaap:GeneralInsuranceExpense","xbrl:period":"2024-07-01T00:00:00/2024-10-01T00:00:00","xbrl:entity":"cik:0001771706","xbrl:unit":"iso4217:USD"},"factValues":[{"value":"435789","decimals":0}]},{"name":"rpt:f-857","factDimensions":{"xbrl:concept":"us-gaap:GeneralInsuranceExpense","xbrl:period":"2023-07-01T00:00:00/2023-10-01T00:00:00","xbrl:entity":"cik:0001771706","xbrl:unit":"iso4217:USD"},"factValues":[{"value":"656100","decimals":0}]},{"name":"rpt:f-858","factDimensions":{"xbrl:concept":"us-gaap:GeneralInsuranceExpense","xbrl:period":"2024-01-01T00:00:00/2024-10-01T00:00:00","xbrl:entity":"cik:0001771706","xbrl:unit":"iso4217:USD"},"factValues":[{"value":"1414059","decimals":0}]},{"name":"rpt:f-859","factDimensions":{"xbrl:concept":"us-gaap:GeneralInsuranceExpense","xbrl:period":"2023-01-01T00:00:00/2023-10-01T00:00:00","xbrl:entity":"cik:0001771706","xbrl:unit":"iso4217:USD"},"factValues":[{"value":"1967588","decimals":0}]},{"name":"rpt:f-860","factDimensions":{"xbrl:concept":"us-gaap:MarketingExpense","xbrl:period":"2024-07-01T00:00:00/2024-10-01T00:00:00","xbrl:entity":"cik:0001771706","xbrl:unit":"iso4217:USD"},"factValues":[{"value":"239932","decimals":0}]},{"name":"rpt:f-861","factDimensions":{"xbrl:concept":"us-gaap:MarketingExpense","xbrl:period":"2023-07-01T00:00:00/2023-10-01T00:00:00","xbrl:entity":"cik:0001771706","xbrl:unit":"iso4217:USD"},"factValues":[{"value":"161782","decimals":0}]},{"name":"rpt:f-862","factDimensions":{"xbrl:concept":"us-gaap:MarketingExpense","xbrl:period":"2024-01-01T00:00:00/2024-10-01T00:00:00","xbrl:entity":"cik:0001771706","xbrl:unit":"iso4217:USD"},"factValues":[{"value":"651892","decimals":0}]},{"name":"rpt:f-863","factDimensions":{"xbrl:concept":"us-gaap:MarketingExpense","xbrl:period":"2023-01-01T00:00:00/2023-10-01T00:00:00","xbrl:entity":"cik:0001771706","xbrl:unit":"iso4217:USD"},"factValues":[{"value":"613963","decimals":0}]},{"name":"rpt:f-864","factDimensions":{"xbrl:concept":"us-gaap:OtherGeneralAndAdministrativeExpense","xbrl:period":"2024-07-01T00:00:00/2024-10-01T00:00:00","xbrl:entity":"cik:0001771706","xbrl:unit":"iso4217:USD"},"factValues":[{"value":"1573594","decimals":0}]},{"name":"rpt:f-865","factDimensions":{"xbrl:concept":"us-gaap:OtherGeneralAndAdministrativeExpense","xbrl:period":"2023-07-01T00:00:00/2023-10-01T00:00:00","xbrl:entity":"cik:0001771706","xbrl:unit":"iso4217:USD"},"factValues":[{"value":"1399980","decimals":0}]},{"name":"rpt:f-866","factDimensions":{"xbrl:concept":"us-gaap:OtherGeneralAndAdministrativeExpense","xbrl:period":"2024-01-01T00:00:00/2024-10-01T00:00:00","xbrl:entity":"cik:0001771706","xbrl:unit":"iso4217:USD"},"factValues":[{"value":"4321399","decimals":0}]},{"name":"rpt:f-867","factDimensions":{"xbrl:concept":"us-gaap:OtherGeneralAndAdministrativeExpense","xbrl:period":"2023-01-01T00:00:00/2023-10-01T00:00:00","xbrl:entity":"cik:0001771706","xbrl:unit":"iso4217:USD"},"factValues":[{"value":"4602920","decimals":0}]},{"name":"rpt:f-868","factDimensions":{"xbrl:concept":"us-gaap:SellingGeneralAndAdministrativeExpense","xbrl:period":"2024-07-01T00:00:00/2024-10-01T00:00:00","xbrl:entity":"cik:0001771706","xbrl:unit":"iso4217:USD"},"factValues":[{"value":"6911278","decimals":0}]},{"name":"rpt:f-869","factDimensions":{"xbrl:concept":"us-gaap:SellingGeneralAndAdministrativeExpense","xbrl:period":"2023-07-01T00:00:00/2023-10-01T00:00:00","xbrl:entity":"cik:0001771706","xbrl:unit":"iso4217:USD"},"factValues":[{"value":"6749314","decimals":0}]},{"name":"rpt:f-870","factDimensions":{"xbrl:concept":"us-gaap:SellingGeneralAndAdministrativeExpense","xbrl:period":"2024-01-01T00:00:00/2024-10-01T00:00:00","xbrl:entity":"cik:0001771706","xbrl:unit":"iso4217:USD"},"factValues":[{"value":"21527122","decimals":0}]},{"name":"rpt:f-871","factDimensions":{"xbrl:concept":"us-gaap:SellingGeneralAndAdministrativeExpense","xbrl:period":"2023-01-01T00:00:00/2023-10-01T00:00:00","xbrl:entity":"cik:0001771706","xbrl:unit":"iso4217:USD"},"factValues":[{"value":"21965576","decimals":0}]},{"name":"rpt:f-872","factDimensions":{"xbrl:concept":"us-gaap:OtherIncomeAndOtherExpenseDisclosureTextBlock","xbrl:period":"2024-01-01T00:00:00/2024-10-01T00:00:00","xbrl:entity":"cik:0001771706"},"factValues":[{"value":"
19. Other Income (Expense)
The CARES Act provides an employee retention credit (\u201cCARES Employee Retention credit\u201d), which is a refundable tax credit against certain employment taxes of up to $5,000 per employee for eligible employers. The tax credit is equal to 50% of qualified wages paid to employees during a quarter, capped at $10,000 of qualified wages per employee through December 31, 2020. Additional relief provisions were passed by the United States government, which extend and slightly expand the qualified wage caps on these credits through December 31, 2021. Based on these additional provisions, the tax credit is now equal to 70% of qualified wages paid to employees during a quarter, and the limit on qualified wages per employee has been increased to $10,000 of qualified wages per quarter. The Company applied for and received the tax credit under the CARES Act. During the three and nine months ended September 30, 2024, the Company recorded and received $815,422\u00a0(2023 - $4,650,264) related to the CARES Employee Retention credit in other income on the unaudited condensed consolidated statement of loss and comprehensive loss for the three and nine months ended September 30, 2024 and 2023.
On May 25, 2023, the Company and Grown Rogue International, Inc. (\u201cGrown Rogue\u201d) entered into a strategic agreement whereby Grown Rogue will support Vireo Growth in the optimization of its cannabis flower products. As part of this strategic agreement (the \u201cConsulting Agreement\u201d) Grown Rogue granted the Company\u00a08,500,000\u00a0warrants to purchase subordinate voting shares of Grown Rogue on October 5, 2023. These warrants were valued at $5,221,971 on September 30, 2024 using a stock price of $0.70, an exercise price of $0.167, an expected life of\u00a04.02\u00a0years, an annual risk free rate of\u00a03.58%, and volatility of\u00a0100%. The change in fair value for the three and nine months ended September 30, 2024, of $354,328 and $3,284,619, respectively, was recorded as other income in the unaudited condensed consolidated statement of loss and comprehensive loss for the three and nine months ended September 30, 2024.
"}]},{"name":"rpt:f-873","factDimensions":{"xbrl:concept":"us-gaap:GovernmentAssistanceAmount","xbrl:period":"2024-01-01T00:00:00/2024-10-01T00:00:00","xbrl:entity":"cik:0001771706","xbrl:unit":"iso4217:USD"},"factValues":[{"value":"815422","decimals":0}]},{"name":"rpt:f-874","factDimensions":{"xbrl:concept":"us-gaap:GovernmentAssistanceAmount","xbrl:period":"2024-07-01T00:00:00/2024-10-01T00:00:00","xbrl:entity":"cik:0001771706","xbrl:unit":"iso4217:USD"},"factValues":[{"value":"815422","decimals":0}]},{"name":"rpt:f-875","factDimensions":{"xbrl:concept":"us-gaap:GovernmentAssistanceAmount","xbrl:period":"2023-01-01T00:00:00/2023-10-01T00:00:00","xbrl:entity":"cik:0001771706","xbrl:unit":"iso4217:USD"},"factValues":[{"value":"4650264","decimals":0}]},{"name":"rpt:f-876","factDimensions":{"xbrl:concept":"us-gaap:GovernmentAssistanceAmount","xbrl:period":"2023-07-01T00:00:00/2023-10-01T00:00:00","xbrl:entity":"cik:0001771706","xbrl:unit":"iso4217:USD"},"factValues":[{"value":"4650264","decimals":0}]},{"name":"rpt:f-877","factDimensions":{"xbrl:concept":"vreof:WarrantsIssuableUnderAgreement","xbrl:period":"2023-10-05T00:00:00/2023-10-06T00:00:00","xbrl:entity":"cik:0001771706","xbrl:unit":"xbrla:shares","dei:LegalEntityAxis":"vreof:GrownRogueInternationalInc.Member"},"factValues":[{"value":"8500000"}]},{"name":"rpt:f-878","factDimensions":{"xbrl:concept":"us-gaap:NontradeReceivablesCurrent","xbrl:period":"2024-10-01T00:00:00","xbrl:entity":"cik:0001771706","xbrl:unit":"iso4217:USD"},"factValues":[{"value":"5221971","decimals":0}]},{"name":"rpt:f-879","factDimensions":{"xbrl:concept":"us-gaap:WarrantsAndRightsOutstandingMeasurementInput","xbrl:period":"2024-10-01T00:00:00","xbrl:entity":"cik:0001771706","xbrl:unit":"iso4217:USD/xbrla:shares","dei:LegalEntityAxis":"vreof:GrownRogueInternationalInc.Member","us-gaap:MeasurementInputTypeAxis":"us-gaap:MeasurementInputSharePriceMember"},"factValues":[{"value":"0.70","decimals":2}]},{"name":"rpt:f-880","factDimensions":{"xbrl:concept":"us-gaap:ClassOfWarrantOrRightExercisePriceOfWarrantsOrRights1","xbrl:period":"2024-10-01T00:00:00","xbrl:entity":"cik:0001771706","xbrl:unit":"iso4217:USD/xbrla:shares","dei:LegalEntityAxis":"vreof:GrownRogueInternationalInc.Member"},"factValues":[{"value":"0.167","decimals":3}]},{"name":"rpt:f-881","factDimensions":{"xbrl:concept":"us-gaap:WarrantsAndRightsOutstandingMeasurementInput","xbrl:period":"2024-10-01T00:00:00","xbrl:entity":"cik:0001771706","xbrl:unit":"vreof:Y","dei:LegalEntityAxis":"vreof:GrownRogueInternationalInc.Member","us-gaap:MeasurementInputTypeAxis":"us-gaap:MeasurementInputExpectedTermMember"},"factValues":[{"value":"4.02","decimals":2}]},{"name":"rpt:f-882","factDimensions":{"xbrl:concept":"us-gaap:WarrantsAndRightsOutstandingMeasurementInput","xbrl:period":"2024-10-01T00:00:00","xbrl:entity":"cik:0001771706","dei:LegalEntityAxis":"vreof:GrownRogueInternationalInc.Member","us-gaap:MeasurementInputTypeAxis":"us-gaap:MeasurementInputRiskFreeInterestRateMember"},"factValues":[{"value":"3.58","decimals":2}]},{"name":"rpt:f-883","factDimensions":{"xbrl:concept":"us-gaap:WarrantsAndRightsOutstandingMeasurementInput","xbrl:period":"2024-10-01T00:00:00","xbrl:entity":"cik:0001771706","dei:LegalEntityAxis":"vreof:GrownRogueInternationalInc.Member","us-gaap:MeasurementInputTypeAxis":"us-gaap:MeasurementInputOptionVolatilityMember"},"factValues":[{"value":"100","decimals":0}]},{"name":"rpt:f-884","factDimensions":{"xbrl:concept":"us-gaap:FairValueAdjustmentOfWarrants","xbrl:period":"2024-07-01T00:00:00/2024-10-01T00:00:00","xbrl:entity":"cik:0001771706","xbrl:unit":"iso4217:USD","dei:LegalEntityAxis":"vreof:GrownRogueInternationalInc.Member"},"factValues":[{"value":"-354328","decimals":0}]},{"name":"rpt:f-885","factDimensions":{"xbrl:concept":"us-gaap:FairValueAdjustmentOfWarrants","xbrl:period":"2024-01-01T00:00:00/2024-10-01T00:00:00","xbrl:entity":"cik:0001771706","xbrl:unit":"iso4217:USD","dei:LegalEntityAxis":"vreof:GrownRogueInternationalInc.Member"},"factValues":[{"value":"-3284619","decimals":0}]},{"name":"rpt:f-886","factDimensions":{"xbrl:concept":"us-gaap:CashFlowSupplementalDisclosuresTextBlock","xbrl:period":"2024-01-01T00:00:00/2024-10-01T00:00:00","xbrl:entity":"cik:0001771706"},"factValues":[{"value":"
20. Supplemental Cash Flow Information(1)
\u00a0\u00a0\u00a0\u00a0 | September 30, | September 30, | ||||
\u00a0\u00a0\u00a0\u00a0 | 2024 | \u00a0\u00a0\u00a0\u00a0 | 2023 | |||
Cash paid for interest | $ | 20,355,166 | $ | 18,214,889 | ||
Cash paid for income taxes | \u00a0 | \u2014 | \u00a0 | 1,055,235 | ||
Change in construction accrued expenses | \u00a0 | (280,999) | \u00a0 | 10,475,367 | ||
Stock issued in connection with financing activities | \u00a0 | 5,387,500 | \u00a0 | \u2014 |
| (1) | For supplemental cash flow information related to leases, refer to Note 10. |
\u00a0\u00a0\u00a0\u00a0 | September 30, | September 30, | ||||
\u00a0\u00a0\u00a0\u00a0 | 2024 | \u00a0\u00a0\u00a0\u00a0 | 2023 | |||
Cash paid for interest | $ | 20,355,166 | $ | 18,214,889 | ||
Cash paid for income taxes | \u00a0 | \u2014 | \u00a0 | 1,055,235 | ||
Change in construction accrued expenses | \u00a0 | (280,999) | \u00a0 | 10,475,367 | ||
Stock issued in connection with financing activities | \u00a0 | 5,387,500 | \u00a0 | \u2014 |
| (1) | For supplemental cash flow information related to leases, refer to Note 10. |
21. Financial Instruments
Credit risk
Credit risk is the risk of loss associated with counterparty\u2019s inability to fulfill its payment obligations. The Company\u2019s credit risk is primarily attributable to cash, and accounts receivable. A small portion of cash is held on hand, from which management believes the risk of loss is remote. Receivables relate primarily to wholesale sales. The Company does not have significant credit risk with respect to customers. The Company\u2019s maximum credit risk exposure is equivalent to the carrying value of these instruments. The Company has been granted licenses pursuant to the laws of the states of Maryland, Minnesota, and New York with respect to cultivating, processing, and/or distributing marijuana. Presently, this industry is illegal under United States federal law. The Company has adhered, and intends to continue to adhere, strictly to the applicable state statutes in its operations.
Liquidity risk
The Company\u2019s approach to managing liquidity risk is to ensure that it will have sufficient liquidity to meet liabilities when due. As of September 30, 2024, the Company\u2019s financial liabilities consist of accounts payable, accrued liabilities, debt, convertible debt, liabilities held for sale, and uncertain tax liabilities. The Company manages liquidity risk by reviewing its capital requirements on an ongoing basis. Historically, the Company\u2019s main source of funding has been additional funding from investors and debt issuances. The Company\u2019s access to financing is always uncertain. There can be no assurance of continued access to significant equity or debt financing.
Legal Risk
Vireo Growth operates in the United States. The U.S. federal government regulates drugs through the Controlled Substances Act (21 U.S.C. \u00a7 811), which places controlled substances, including cannabis, in a schedule. Cannabis is classified as a Schedule I drug. Under U.S. federal law, a Schedule I drug or substance has a high potential for abuse, no accepted medical use in the U.S., and a lack of accepted safety for the use of the drug under medical supervision. The U.S. Food and Drug Administration has not approved marijuana as a safe and effective drug for any indication. In the U.S. marijuana is largely regulated at the state level. State laws regulating cannabis are in direct conflict with the federal Controlled Substances Act, which makes cannabis use and possession federally illegal.
Foreign currency risk
Foreign currency risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in foreign currency rates. Given the Company\u2019s financial transactions are rarely denominated in a foreign currency, there is minimal foreign currency risk exposure.
Interest rate risk
Interest rate risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company currently carries variable interest-bearing debt subject to fluctuations in the United States Prime rate. A change of 100 basis points in interest rates during the nine months ended September 30, 2024, would have resulted in a corresponding change in the statement of loss and comprehensive loss of $420,133.
"}]},{"name":"rpt:f-895","factDimensions":{"xbrl:concept":"vreof:InterestRateRiskEffectOnNetIncomeOfOneHundredBasisPointChangeInPrimeRate","xbrl:period":"2024-01-01T00:00:00/2024-10-01T00:00:00","xbrl:entity":"cik:0001771706","xbrl:unit":"iso4217:USD"},"factValues":[{"value":"420133","decimals":0}]},{"name":"rpt:f-896","factDimensions":{"xbrl:concept":"us-gaap:RelatedPartyTransactionsDisclosureTextBlock","xbrl:period":"2024-01-01T00:00:00/2024-10-01T00:00:00","xbrl:entity":"cik:0001771706"},"factValues":[{"value":"
22. Related Party Transactions
As of September 30, 2024, and December 31, 2023, there were $0 and $121,846 due to related parties, respectively.
"}]},{"name":"rpt:f-897","factDimensions":{"xbrl:concept":"us-gaap:OtherLiabilities","xbrl:period":"2024-10-01T00:00:00","xbrl:entity":"cik:0001771706","xbrl:unit":"iso4217:USD"},"factValues":[{"value":"0","decimals":0}]},{"name":"rpt:f-898","factDimensions":{"xbrl:concept":"us-gaap:OtherLiabilities","xbrl:period":"2024-01-01T00:00:00","xbrl:entity":"cik:0001771706","xbrl:unit":"iso4217:USD"},"factValues":[{"value":"121846","decimals":0}]},{"name":"rpt:f-899","factDimensions":{"xbrl:concept":"us-gaap:SubsequentEventsTextBlock","xbrl:period":"2024-01-01T00:00:00/2024-10-01T00:00:00","xbrl:entity":"cik:0001771706"},"factValues":[{"value":"23. Subsequent Events
On October 9, 2024, the Company and Grown Rogue, mutually agreed to terminate the Consulting Agreement between the parties dated May 24, 2023, as amended September 20, 2023, effective September 30, 2024. As part of the termination agreement, Vireo Growth forfeited 4.5 million of the 8.5 million Grown Rogue warrants the Company received under the Consulting Agreement and paid Grown Rogue a lump sum termination fee of $800,000.
On October 10, 2024, Joshua Rosen, Chief Executive Officer, Interim Chief Financial Officer and Director of the Company resigned from all of his positions with the Company. In conjunction with this event, the parties entered into a separation agreement (\u201cSeparation Agreement\u201d) dated October 9, 2024 that provides, among other things, for the grant of 500,000 restricted stock units, which vest in 12 equal installments commencing January 1, 2025 and ending on December 1, 2025 and 500,000 immediately exercisable stock options with an exercise price per share of $0.50. Such options expire October 9, 2027. Further, Mr. Rosen will receive salary continuation for two years at a rate of $300,000 per year. Pursuant to the Separation Agreement, the vesting of 250,000 options granted to Mr. Rosen in August 2024 were accelerated and are exercisable until October 9, 2027.
On November 1, 2024, the Company entered into a Joinder and Tenth Amendment to the Credit Facility, which provides a financing commitment of up to $10.0 million in aggregate principal amount of convertible notes (the \u201cConvertible Notes\u201d). These Convertible Notes are being funded by the Company\u2019s senior secured lender and its affiliates. The Convertible Notes have a term of three years, with a cash interest rate of 12.0 percent, and such interest shall be paid in cash on the last business day of each calendar month. All accrued and unpaid interest shall be payable in full on the maturity date or earlier date of prepayment, in each case adjusted for any period of less than one calendar month, if applicable. The Convertible Notes are convertible at the option of lender, in whole but not in part in a single transaction, \u00a0at any time into that number of Subordinate Voting Shares of the Company determined by dividing the outstanding principal amount plus all accrued but unpaid interest on the Convertible Notes on the date of such conversion by a conversion price \u00a0equal to $0.625.
"}]},{"name":"rpt:f-900","factDimensions":{"xbrl:concept":"vreof:ClassOfWarrantOrRightForfeited","xbrl:period":"2024-10-09T00:00:00/2024-10-10T00:00:00","xbrl:entity":"cik:0001771706","xbrl:unit":"xbrla:shares","us-gaap:ClassOfWarrantOrRightAxis":"vreof:GrownRogueWarrantsMember","us-gaap:SubsequentEventTypeAxis":"us-gaap:SubsequentEventMember"},"factValues":[{"value":"4500000","decimals":-5}]},{"name":"rpt:f-901","factDimensions":{"xbrl:concept":"vreof:ClassOfWarrantOrRightReceivedAsPerAgreement","xbrl:period":"2024-10-09T00:00:00/2024-10-10T00:00:00","xbrl:entity":"cik:0001771706","xbrl:unit":"xbrla:shares","us-gaap:ClassOfWarrantOrRightAxis":"vreof:GrownRogueWarrantsMember","us-gaap:SubsequentEventTypeAxis":"us-gaap:SubsequentEventMember"},"factValues":[{"value":"8500000","decimals":-5}]},{"name":"rpt:f-902","factDimensions":{"xbrl:concept":"vreof:PaymentsForLumpSumContractTerminationFee","xbrl:period":"2024-10-09T00:00:00/2024-10-10T00:00:00","xbrl:entity":"cik:0001771706","xbrl:unit":"iso4217:USD","us-gaap:ClassOfWarrantOrRightAxis":"vreof:GrownRogueWarrantsMember","us-gaap:SubsequentEventTypeAxis":"us-gaap:SubsequentEventMember"},"factValues":[{"value":"800000","decimals":0}]},{"name":"rpt:f-903","factDimensions":{"xbrl:concept":"us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsGrantsInPeriod","xbrl:period":"2024-10-09T00:00:00/2024-10-10T00:00:00","xbrl:entity":"cik:0001771706","xbrl:unit":"xbrla:shares","us-gaap:AwardTypeAxis":"us-gaap:RestrictedStockUnitsRSUMember","us-gaap:SubsequentEventTypeAxis":"us-gaap:SubsequentEventMember"},"factValues":[{"value":"500000"}]},{"name":"rpt:f-904","factDimensions":{"xbrl:concept":"vreof:ShareBasedCompensationArrangementByShareBasedPaymentAwardNumberOfVestingInstallments","xbrl:period":"2024-10-09T00:00:00/2024-10-10T00:00:00","xbrl:entity":"cik:0001771706","xbrl:unit":"vreof:installment","us-gaap:AwardTypeAxis":"us-gaap:RestrictedStockUnitsRSUMember","us-gaap:SubsequentEventTypeAxis":"us-gaap:SubsequentEventMember"},"factValues":[{"value":"12"}]},{"name":"rpt:f-905","factDimensions":{"xbrl:concept":"us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodGross","xbrl:period":"2024-10-09T00:00:00/2024-10-10T00:00:00","xbrl:entity":"cik:0001771706","xbrl:unit":"xbrla:shares","us-gaap:AwardTypeAxis":"us-gaap:EmployeeStockOptionMember","us-gaap:SubsequentEventTypeAxis":"us-gaap:SubsequentEventMember"},"factValues":[{"value":"500000"}]},{"name":"rpt:f-906","factDimensions":{"xbrl:concept":"us-gaap:ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsGrantsInPeriodWeightedAverageExercisePrice","xbrl:period":"2024-10-09T00:00:00/2024-10-10T00:00:00","xbrl:entity":"cik:0001771706","xbrl:unit":"iso4217:USD/xbrla:shares","us-gaap:AwardTypeAxis":"us-gaap:EmployeeStockOptionMember","us-gaap:SubsequentEventTypeAxis":"us-gaap:SubsequentEventMember"},"factValues":[{"value":"0.50","decimals":2}]},{"name":"rpt:f-907","factDimensions":{"xbrl:concept":"vreof:SeparationAgreementSalaryContinuationPeriod","xbrl:period":"2024-10-09T00:00:00/2024-10-10T00:00:00","xbrl:entity":"cik:0001771706","us-gaap:SubsequentEventTypeAxis":"us-gaap:SubsequentEventMember"},"factValues":[{"value":"P2Y"}]},{"name":"rpt:f-908","factDimensions":{"xbrl:concept":"vreof:SeparationAgreementSalaryPerAnnum","xbrl:period":"2024-10-09T00:00:00/2024-10-10T00:00:00","xbrl:entity":"cik:0001771706","xbrl:unit":"iso4217:USD","us-gaap:SubsequentEventTypeAxis":"us-gaap:SubsequentEventMember"},"factValues":[{"value":"300000","decimals":0}]},{"name":"rpt:f-909","factDimensions":{"xbrl:concept":"us-gaap:SharebasedCompensationArrangementBySharebasedPaymentAwardAcceleratedVestingNumber","xbrl:period":"2024-10-09T00:00:00/2024-10-10T00:00:00","xbrl:entity":"cik:0001771706","xbrl:unit":"xbrla:shares","us-gaap:SubsequentEventTypeAxis":"us-gaap:SubsequentEventMember"},"factValues":[{"value":"250000"}]},{"name":"rpt:f-910","factDimensions":{"xbrl:concept":"vreof:DebtInstrumentMaximumBorrowingCapacity","xbrl:period":"2024-11-02T00:00:00","xbrl:entity":"cik:0001771706","xbrl:unit":"iso4217:USD","us-gaap:LongtermDebtTypeAxis":"us-gaap:ConvertibleDebtMember","us-gaap:SubsequentEventTypeAxis":"us-gaap:SubsequentEventMember"},"factValues":[{"value":"10000000.0","decimals":-5}]},{"name":"rpt:f-911","factDimensions":{"xbrl:concept":"us-gaap:DebtInstrumentTerm","xbrl:period":"2024-11-01T00:00:00/2024-11-02T00:00:00","xbrl:entity":"cik:0001771706","us-gaap:LongtermDebtTypeAxis":"us-gaap:ConvertibleDebtMember","us-gaap:SubsequentEventTypeAxis":"us-gaap:SubsequentEventMember"},"factValues":[{"value":"P3Y"}]},{"name":"rpt:f-912","factDimensions":{"xbrl:concept":"us-gaap:DebtInstrumentInterestRateStatedPercentage","xbrl:period":"2024-11-02T00:00:00","xbrl:entity":"cik:0001771706","us-gaap:LongtermDebtTypeAxis":"us-gaap:ConvertibleDebtMember","us-gaap:SubsequentEventTypeAxis":"us-gaap:SubsequentEventMember"},"factValues":[{"value":"0.120","decimals":3}]},{"name":"rpt:f-913","factDimensions":{"xbrl:concept":"us-gaap:DebtInstrumentConvertibleConversionPrice1","xbrl:period":"2024-11-02T00:00:00","xbrl:entity":"cik:0001771706","xbrl:unit":"iso4217:USD/xbrla:shares","us-gaap:LongtermDebtTypeAxis":"us-gaap:ConvertibleDebtMember","us-gaap:SubsequentEventTypeAxis":"us-gaap:SubsequentEventMember"},"factValues":[{"value":"0.625","decimals":3}]},{"name":"rpt:f-914","factDimensions":{"xbrl:concept":"ecd:Rule10b51ArrAdoptedFlag","xbrl:period":"2024-07-01T00:00:00/2024-10-01T00:00:00","xbrl:entity":"cik:0001771706"},"factValues":[{"value":"false"}]},{"name":"rpt:f-915","factDimensions":{"xbrl:concept":"ecd:Rule10b51ArrTrmntdFlag","xbrl:period":"2024-07-01T00:00:00/2024-10-01T00:00:00","xbrl:entity":"cik:0001771706"},"factValues":[{"value":"false"}]},{"name":"rpt:f-916","factDimensions":{"xbrl:concept":"ecd:NonRule10b51ArrAdoptedFlag","xbrl:period":"2024-07-01T00:00:00/2024-10-01T00:00:00","xbrl:entity":"cik:0001771706"},"factValues":[{"value":"false"}]},{"name":"rpt:f-917","factDimensions":{"xbrl:concept":"ecd:NonRule10b51ArrTrmntdFlag","xbrl:period":"2024-07-01T00:00:00/2024-10-01T00:00:00","xbrl:entity":"cik:0001771706"},"factValues":[{"value":"false"}]}]}}