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

Company: JONES SODA CO.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 8
Chunk 25
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 34% 

Quarter
Ending June 30, 2025 Compared to Quarter Ended June 30, 2024

Revenue

For
the quarter ending June 30, 2025, revenue decreased by approximately $1.8 million, or 26.4%, to approximately $4.9 million compared to
approximately $6.7 million for the quarter ending June 30, 2024. The decrease in sales revenue was driven by lower sales in its core
soda business ($2.1 million decrease year over year) and direct to consumer business ($0.3 million), which was partially
offset by growth in mini cans, food service, convenience stores and HD9 products ($0.7 million increase year over year). HD9 grew to
$0.2 million during the second quarter from $0.6 million in the prior year to $0.8 million for the second quarter ending June 30, 2025.
Core soda sales were front end loaded in 2024 with one customer taking a large pipeline fill order in the second quarter of 2024 which
did not repeat in 2025. Management expects to see growth in the third and fourth quarters driven by Core Soda, HD9, Spiked Jones, Modern
Soda formats (Pop Jones and Fiesta Jones), direct to consumer, as well as growth in club, food service and convenience store channels.

Gross
Profit

For
the quarter ending June 30, 2025, gross profit decreased by approximately $0.6 million, or 28%, to approximately $1.6 million compared
to approximately $2.3 million for the quarter ending June 30, 2024 as a result of lower sales revenue in the current quarter. For the
quarter ending June 30, 2025, gross margin decreased slightly to 33.3% from 33.4% in the quarter ending June 30, 2024. The Company continues
to look for opportunities to decrease the cost of goods sold with its co-manufacturers and our warehouse and freight providers.

Selling
and Marketing Expenses

Selling
and marketing expenses for the second quarter ending June 30, 2025 were approximately $1 million, a decrease of approximately $0.6
million, or 39%, from approximately $1.6 million for the second quarter ending June 30, 2024. This decrease was primarily a result of
decreased online marketing spend and tradesh