Company: JSDA
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001641172-25-024179
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Company: JONES SODA CO.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 8
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 and for the six months ended June 30, 2025 and 2024, our revenue was reduced by $0.9 million and $1.6
million, respectively, in each case for slotting fees and promotion allowances.

Sales
to distributors and customers are generally final. However, in limited instances, the Company may accept product returns due to quality
issues or distributor terminations, resulting in variable consideration. Customers typically remit payment within 30 days of receiving
a valid invoice. The Company offers prompt payment discounts of up to 2% to certain customers, generally for payments made within 15
days. These discounts are recorded as a deduction to revenue in the condensed consolidated statements of operations. As of June 30, 2025
and December 31, 2024, prompt payment discounts extended to these customers were considered immaterial to the related accounts receivable
balances presented on the condensed consolidated balance sheets.

Accounts
Receivable

The
accounts receivable balance primarily consists of trade receivables from distributors and retail customers. The Company’s allowance
for credit losses represents management’s best estimate of probable credit losses in existing accounts receivable, determined primarily
based on current trends and historical collection data. To account for potential credit losses, the Company reserves a percentage of
trade receivable balances based on collection history and prevailing economic conditions expected to impact credit risk over the life
of the receivables. These reserves are regularly re-evaluated and adjusted as necessary. Account balances deemed uncollectible are written
off against the allowance after all collection efforts have been exhausted and the likelihood of recovery is considered remote. As of
June 30, 2025 and December 31, 2024, allowances for credit losses were approximately $0.1 million  and $0.1 million, respectively,
and were netted against accounts receivable.  Changes in accounts receivable are primarily driven by fluctuations in order volume, the timing of product transfers
to distributors, and the timing of cash collections.

As
of June 30, 2025, two of the Company’s independent customers accounted for approximately 24% of outstanding accounts
receivable. As of December 31, 2024, a single customer represented approximately 10.2% of the Company’s accounts receivable balance.

Earnings
(loss) per share

Basic
earnings (loss) per share is calculated using the weighted average number of common shares outstanding during the respective reporting
periods. Diluted