Company: JSDA
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-011093
Chunk: 4

Company: JONES SODA CO.
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 8
Chunk 4
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accounts receivable balance primarily consists of trade receivables from distributors and retail customers.   The Company’s
allowance for credit losses represents management’s best estimate of probable credit losses in existing accounts receivable, determined
primarily based on current trends and historical collection data. To account for potential credit losses, the Company reserves a percentage
of trade receivable balances based on collection history and prevailing economic conditions expected to impact credit risk over the life
of the receivables. These reserves are regularly re-evaluated and adjusted as necessary. Account balances deemed uncollectible are written
off against the allowance after all collection efforts have been exhausted and the likelihood of recovery is considered remote. As of
March 31, 2025, and December 31, 2024, allowances for credit losses were approximately $31,000 and $77,000, respectively, and were netted
against accounts receivable. No impairment losses were recognized for the three months ended March 31, 2025 and 2024. Changes in accounts
receivable are primarily driven by fluctuations in order volume, the timing of product transfers to distributors, and the timing of cash
collections.

As
of March 31, 2025, one of the Company’s independent customers accounted for approximately 14.0% of outstanding accounts receivable.
As of December 31, 2024, a single customer represented approximately 10.2% of the Company’s accounts receivable balance.

Net
loss per share

Basic
net loss per share is calculated using the weighted average number of common shares outstanding during the respective periods. Diluted
earnings per share is computed by adjusting the weighted average number of common shares to reflect the potential net exercise or conversion
of all dilutive securities. Due to the net loss incurred during the three months ended March 31, 2025 and 2024, the outstanding stock
options of approximately 11,628,243 and 13,566,522 shares, respectively, and outstanding warrants of approximately 5,945,400 and 6,022,102
shares, respectively, were considered anti-dilutive.

    11
    Table of Contents

Recent
Accounting Guidance Not Yet Adopted

In
December 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2023-09: Income Taxes (Topic 740): Improvements to Income Tax Disclosures. This guidance requires entities to provide more