Company: JSDA
Filing Date: 2025-07-03
Form Type: S-1
Source: 0001641172-25-017818
Chunk: 20

Company: JONES SODA CO.
Filing Date: 2025-07-03
Form: S-1
Chunk 20
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 gain from disposition.                                                                                                                |
| k) | Adjustment to recognize stock-based compensation expense related                                                                      
 to the grant of 500,000 stock options, measured at fair value on the grant date and recognized in accordance with ASC 718. The fair   
 value is determined using the Black-Scholes Option Pricing Model with the following weighted average assumptions: risk-free interest  
 rate of 4.41%, expected annual volatility of 76%, expected life of 10 years and share price of $0.20.                                 |
| l) | Included 699,493 shares of common stock upon the vesting of restricted                                                                
 stock units.                                                                                                                          |

| 3. | Net            
 Loss per Share |

Net loss per share included on the Unaudited
Pro Forma Condensed Consolidated Statement of Operations for the year ended December 31, 2024 and three months ended March 31, 2025 were
calculated using the number of shares of our common stock outstanding at such dates and the issuance of additional shares subsequent
to March 31, 2025.

Subsequent to March 31, 2025, 699,493 shares
of common stock became outstanding upon the vesting of restricted stock units.

| 10 |

<div align='center'>RISK FACTORS</div>

Investing in our common stock involves a high degree of risk. You should carefully consider the following risk factors and all other information contained in and incorporated by reference into this prospectus, including“ Management’ s Discussion and Analysis of Financial Condition and Results of Operations” and our financial statements and related notes, before purchasing our common stock. If any of the following risks occur, our business, financial condition, and results of operations could be materially and adversely affected. In that case, the trading price of our common stock could decline and you may lose some or all of your investment.

Risks Related to our Financial Condition and Capital Requirements

We have experienced recurring losses from operations and negative cash flows from operating activities.

We have experienced recurring losses from operations and negative cash flows from operating activities. We incurred a net loss of $0.9 million, $9.9 million and $4.9 million for the three months ended March 31, 2025 and the years ended December 31, 2024 and 2023, respectively. Our accumulated deficit was $93.8 million, $92.9 million and $83.1 million as of March 31, 2025, December 31,