Company: JSDA
Filing Date: 2025-05-01
Form Type: 10-K/A
Source: 0001641172-25-007974
Chunk: 16

Company: JONES SODA CO.
Filing Date: 2025-05-01
Form: 10-K/A
Chunk 16
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 ASC Topic 718. See Note 7 to our consolidated   
 financial statements incorporated by reference in this Amendment No 1 regarding the assumptions underlying the valuation of equity        
 awards.                                                                                                                                   |
| (3) | Mr.                                                                                                                                       
 Knight ceased to serve as President and Chief Executive Officer of the Company on October 25, 2024.                                       |
| (4) 
 (5) | Mr.                                                                                                                                       
 Norman served as Interim Chief Executive Officer from October 25, 2024 to February 5, 2025                                                
 and Interim Chief Financial Officer from November 12, 2024 to February 5, 2025. He did not                                                
 receive any compensation for serving in these roles.                                                                                      
 Mr.                                                                                                                                       
 Norman was granted restricted stock units in connection with his service on the Board and as chair of the Board.                          |

| -8- |

Narrative Disclosure to Summary Compensation Table

The following describes the material factors necessary to understand the compensation disclosed in the Summary Compensation Table above.

David Knight.Mr. Knight, the Company’s former President and CEO had an annual base salary of $350,000 as of June 23, 2023. Additionally, Mr. Knight was eligible to receive an annual cash bonus of $175,000 (the “Annual Bonus”) in the event that the Company achieved annual revenues in the applicable fiscal year of at least $23,452,000 (calculated in accordance with Generally Accepted Accounting Principles in the United States) (the “Knight Revenue Target”) and at least $959,000 in annual adjusted EBITDA (as calculated in a manner consistent with the calculation of adjusted EBITDA in the previous fiscal year) (the “Knight EBITDA Target”). The Annual Bonus was to be adjusted upward by $2,500 for each 1% that the Company’s actual annual revenues and adjusted EBITDA exceeded the Knight Revenue Target and the Knight EBITDA Target, up to a maximum of $175,000 (the total Annual Bonus paid in any given year not to exceed $350,000). Based on the Company’s performance, Mr. Knight did not receive an Annual Bonus payment in either 2023 or 2024.

Pursuant to the terms of the employment agreement between the Company and David Knight, on June 8, 2023, the Board granted Mr. Knight non-qualified stock options to purchase 4,000,000 shares of common stock of the Company pursuant to the 2022 Plan.