Company: JSDA
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-011093
Chunk: 1

Company: JONES SODA CO.
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 8
Chunk 1
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 consolidated
financial statements include our accounts and those of our subsidiaries, with all intercompany transactions eliminated in consolidation.

In
management’s opinion, the accompanying unaudited condensed consolidated financial statements reflect all material adjustments necessary
for a fair presentation of our financial position, results of operations, and cash flows as of the dates and for the periods presented.
These adjustments consist solely of normal and recurring items. The preparation of financial statements requires estimates and assumptions
that impact the reported amounts of assets, liabilities, revenues, and expenses. Key areas subject to such estimates and assumptions
include, but are not limited to, inventory valuation, depreciation and valuation of capital assets, accounts receivable credit loss reserve,
trade promotion liabilities, stock-based compensation expense, valuation allowance for deferred income tax assets, contingencies, and
forecasts supporting the going concern assumption and related disclosures. Actual results may differ from these estimates.

The
operating results for interim periods are not necessarily indicative of expected results for the full fiscal year. These financial statements
should be reviewed in conjunction with the audited financial statements and accompanying notes included in our Annual Report on Form
10-K for the fiscal year ended December 31, 2024.

Reclassifications

Certain
amounts from prior periods have been reclassified to conform with the current period presentation.

Liquidity

As
of March 31, 2025, and December 31, 2024, the Company had cash of approximately $0.7 million and $1.5 million, respectively, and working
capital of approximately $1.3 million and $2.0 million, respectively. Net cash used in operating activities for the three months ended
March 31, 2025 and March 31, 2024, was approximately $1.7 million and $1.0 million, respectively. The Company reported a net loss of
approximately $0.9 million for the three months ended March 31, 2025, compared to a net loss of approximately $1.2 million for the three
months ended March 31, 2024. As of March 31, 2025, the Company’s accumulated deficit increased to approximately $93.8 million,
compared to approximately $92.9 million as of December 31, 2024.

For
the three months ended March 31, 2025, net cash provided by financing activities totaled approximately $0.9 million,
primarily driven by net proceeds of $1.3 million
from the new