Company: JSDA
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001641172-25-024179
Chunk: 30

Company: JONES SODA CO.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 8
Chunk 30
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 of stock keeping units (“SKU”) selected or removed
by our distributors and retail partners through the normal course of serving consumers in the dynamic, trend-oriented beverage industry.
As a result, management believes that period-to-period comparisons of results of operations are not necessarily meaningful and should
not be relied upon as any indication of future performance or results expected for the fiscal year.

Liquidity
and Capital Resources

As
of June 30, 2025, and December 31, 2024, the Company had cash of approximately $0.7 million and $1.5 million, respectively, and working
capital of approximately $1.6 million and $2.0 million, respectively. Net cash used in operating activities for the six months ending
June 30, 2025 and 2024, was approximately $2.6 million and $3.0 million, respectively. The Company reported a net income of approximately
$1.8 million for the six months ending June 30, 2025, compared to a net loss of approximately $2.7 million for the six months ending
June 30, 2024. As of June 30, 2025, the Company’s accumulated deficit decreased to approximately $91.2 million, compared to approximately
$92.9 million as of December 31, 2024.

22

For
the six months ending June 30, 2025, net cash provided by investing activities was approximately $0.6 million. This amount was primarily
attributable to cash proceeds of $0.6 million received in connection with the disposition of the Cannabis Subsidiaries.

For
the six months ended June 30, 2025, net cash provided by financing activities was approximately $0.7 million. This amount was primarily
attributable to net proceeds of $0.6 million from a new credit facility and repayments of approximately $0.1 million under the Company’s
insurance financing agreement. In addition, the Company issued a $0.5 million promissory note to its Chairman of the Board, of which
$0.2 million was repaid during the period. In contrast, for the six months ended June 30, 2024, net cash used in financing activities
amounted to approximately $0.1 million, reflecting repayments under the Company’s insurance financing agreement, partially offset
by proceeds from the exercise of Pinestar warrants.

We
have experienced recurring losses from operations and negative cash flows