Company: JSDA
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-011093
Chunk: 8

Company: JONES SODA CO.
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 8
Chunk 8
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    6.
    Insurance
    Premium Financing

Effective
November 15, 2024, the Company entered into a 1 one-year
financing agreement with IPFS Corporation to fund a portion of its insurance premiums in the amount of $191,000.
Repayments are made quarterly on January 15, 2025, April 15, 2025, and by July 15, 2025, the entirety of the financing is paid off
in full. The interest rate is 8.99%
and there are no covenants associated with this agreement.

    7.
    Membership
    Agreement Obligation

On
September 1, 2022, the Company entered into a revocable membership and licensing agreement with Saltbox Inc. for shared office and warehouse
access in Seattle, WA. This agreement establishes a licensor-licensee relationship rather than a lease, and no lease liability or right-of-use
asset is recorded. Initially, the agreement had a 1 one-year term with monthly payments of $8,000. Upon renewal, the Company opted for
a month-to-month arrangement at $9,000 per month. On February 28, 2025, the Company provided notice of its intent to exit the agreement
after securing lower-cost facilities.

    13

8.
    Shareholders’ Equity

On
May 16, 2022, the Company’s shareholders approved the adoption of the Jones Soda Co. 2022 Omnibus Equity Incentive Plan (“2022
Plan”), replacing the 2011 Plan. The 2022 Plan provides for various stock-based awards, including stock options, stock appreciation
rights, restricted stock, and restricted stock units.

The
total shares authorized under the 2022 Plan initially included 10,000,000 new shares, plus 1,936,074 unissued shares transferred from
the 2011 Plan, along with shares underlying forfeited awards, bringing the total authorized shares to 11,936,074.

The
Board may grant awards to employees, officers, directors, consultants, agents, advisors, and independent contractors. Stock options are
issued at the closing price on the grant date and generally have a 10 ten-year term. As of March 31, 2025, 307,830 shares remained available
for future awards under the Plan.

    (a)
    Stock
    options:

A
summary of our stock option activity is as follows:

 Schedule of