Company: JSDA
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001641172-25-024179
Chunk: 33

Company: JONES SODA CO.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 8
Chunk 33
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 control deficiencies that result in more than a remote likelihood that a material misstatement of the annual
or interim financial statements will not be prevented or detected. Management has identified the following material weaknesses:

●
The Company had key senior accounting personnel transitioned over the course of the year-end process from the end of 2024 through the
beginning of 2025. As a result, adjustments to the year end balances were required to be made.

●
During the transition period noted above the Company lacked sufficient resources with respect to the number of people employed in its
accounting department and the adequacy of their training in relation to its financial reporting requirements.

Planned
Remediation

●
The Company announced a new experienced CFO in February, 2025. The Company hired additional CPA consultants to complete the year end
audit.

●
The Company hired an experienced CPA in public company reporting in June,2025.

●
The Company is now through that transition and the new leadership team will ensure previously effective controls are followed by the
time we report the third quarter interim results and reinforced adherence to the set of internal controls that Company has previously
successfully abided by over the past years.

24

PART
II – OTHER INFORMATION

    ITEM
    1.
    LEGAL
    PROCEEDINGS

We
are not currently involved in any material legal proceedings. We may be involved from time to time in various claims and legal actions
arising in the ordinary course of business, including proceedings involving employee claims, contract disputes, product liability and
other general liability claims, as well as trademark, copyright, and related claims and legal actions. In the opinion of our management,
the ultimate disposition of these matters will not have a material adverse effect on our consolidated financial position, results of
operations or liquidity.

    ITEM
    1A.
    RISK
    FACTORS

There
have been no material changes in the risk factors set forth in Part I, Item 1A, “Risk Factors” in our Annual Report on Form
10-K for the year ended December 31, 2024.

    ITEM
    2.
    UNREGISTERED
    SALES OF EQUITY SECURITIES, USE OF PROCEEDS, ISSUER PURCHASES OF EQUITY SECURITIES. 

None.

    ITEM
    3.
    DEFAULTS
    UPON SENIOR SECURITIES

None.

    ITEM
    4.
    MINE
    SAF