Company: JSDA
Filing Date: 2025-07-03
Form Type: S-1
Source: 0001641172-25-017818
Chunk: 107

Company: JONES SODA CO.
Filing Date: 2025-07-03
Form: S-1
Chunk 107
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 income tax purposes) created or organized in the U.S. or under 
 the laws of the U.S., any state thereof, or the District of Columbia;                                                                 |
| ● | an                                                                                                                                    
 estate whose income is subject to U.S. federal income tax regardless of its source; or                                                |
| ● | a                                                                                                                                     
 trust (x) whose administration is subject to the primary supervision of a U.S. court, and which has one or more “U.S. persons”        
 (within the meaning of Section 7701(a)(30) of the Code) who have the authority to control all substantial decisions of the trust      
 or (y) which has made a valid election to be treated as a U.S. person.                                                                |

As used herein, the term non-U.S. holder means a beneficial owner, other than an entity treated as a partnership for U.S. federal income tax purposes, of our common stock that is for U.S. federal income tax purposes not a U.S. holder.

| 70 |

Tax Considerations Applicable to U.S. Holders

Distributions

As described in “Dividend Policy,” we have never declared or paid cash dividends on our common stock and do not anticipate paying any dividends on our common stock in the foreseeable future. However, if we do make distributions on our common stock, those payments will generally constitute dividends for U.S. federal income tax purposes to the extent paid from our current or accumulated earnings and profits, as determined under U.S. federal income tax principles. To the extent those distributions exceed both our current and our accumulated earnings and profits, they will constitute a non-taxable return of capital and will first reduce a U.S. holder’s basis in our common stock, but not below zero, and then any additional excess will be treated as gain from the sale of stock as described below under “—Gain or Loss on Disposition of Common Stock.” Dividends received by a corporate U.S. holder may be eligible for a dividends received deduction, subject to applicable limitations. Dividends received by certain non-corporate U.S. holders, including individuals, are generally taxed at the lower applicable capital gains rate provided certain holding period and other requirements are satisfied.

Gain or Loss on Disposition of Common Stock

Upon the sale, exchange or other taxable disposition of our common stock, a U.S. holder will generally recognize capital gain or loss equal to the difference between the amount of cash and the fair market value of any property received upon the sale, exchange or other taxable