Company: JSDA
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-011093
Chunk: 18

Company: JONES SODA CO.
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 8
Chunk 18
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 timing of incentive and retailer programs.

Gross
Profit

For
the quarter ended March 31, 2024, gross profit decreased by approximately $0.2 million, or 9.2%,   to approximately $1.7 million
compared to approximately $1.9 million for the quarter ended March 31, 2024 as a result of lower sales revenue in the current quarter.
For the quarter ended March 31, 2025, gross margin decreased slightly to 37.3% from 37.8% in the quarter ended March 31, 2024. The Company
continues to look for opportunities to decrease its cost of goods sold with its co-manufacturers and our warehouse and freight providers.

Selling
and Marketing Expenses

Selling
and marketing expenses for the first quarter ended March 31, 2025 were approximately $1.2 million, a decrease of approximately $0.3
million, or 20%, from approximately $1.5 million for the first quarter ended March 31, 2024. This decrease was primarily a result of
decreased online marketing spend and tradeshows and sponsorships for both the Jones Soda and Mary Jones brands in the first quarter of
2025 compared to the same quarter of 2024. Selling and marketing expenses as a percentage of revenue decreased to 25.8% in the first
quarter ended March 31, 2025 from 29.8% in the same period in 2024. We intend to continue to look for clear return on investment from
our selling and marketing expenses to drive profitable sales. For the three months ended March 31, 2025 and 2024, non-cash expenses included
in selling and marketing expenses (stock compensation and depreciation) were approximately $17,000 and $26,000  , respectively.

General
and Administrative Expenses

General
and administrative expenses for the first quarter ended March 31, 2025 were approximately $1.2 million compared to $1.5 million in the
first quarter ended March 31, 2024 or a reduction of $0.3 million. General and administrative expenses as a percentage of revenue decreased
to 26.2% in the first quarter ended March 31, 2025 from 30.9% in the same quarter in 2024 or an approximately 5 percentage points decrease.
We intend to continue to look for additional opportunities to reduce our G&A