Company: JSDA
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001641172-25-024179
Chunk: 20

Company: JONES SODA CO.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 8
Chunk 20
---
 30, 2025  
    June 30, 2024 
  
    Segment Results – Income (loss) from continuing operations 

    United States 
    $1,553  
    $(3,660)
  
    Canada 
     7  
     667 
  
    Total 
    $1,560  
    $(2,993)
  
    Segment Results – Income (loss) from continuing operations 
    $1,560  
    $(2,993)

Long-Lived
Assets: All of the Company’s long-lived assets are located in the United States.

12. Commitments and Contingencies

Commitments

As
of June 30, 2025, we continue to have commitments to various suppliers of raw materials. Purchase obligations under these commitments
are expected to total $2.3 million.

Legal
proceedings

The California Department of Public
Health (“CDPH”) issued a cease-and-desist letter to the sale and distribution of Mary Jones hemp infused sodas in California
through Jones Soda’s wholly owned subsidiary Mary Jones Michigan, LLC. The state alleged that the Company’s products violated
California law by failing to properly label the products and that the products contained hemp-derived THC isolate, which they did not.
The Company disputed the CDPH position, however, it voluntarily agreed to cease distribution of its hemp infused soda in California. While
CDPH requested additional information from the Company regarding the status of the recall for distributed products, the action appeared
to be resolved by September 2024. In April 2025, shortly before the statute of limitations expired for any further action by CDPH relating
to Mary Jones sodas, CDPH filed a Complaint, and on June 27, 2025, the CDPH filed an amended compliant, in Los Angeles Superior Court
naming Jones Soda and other businesses who were involved in the sale of infused soda in California in the spring of 2024, which the Company
intends to dispute.

The Company
has been served with a lawsuit by a supplier on August 11 , 2025 concerning an alleged breach of contract and unjust enrichment in the
amount of $342,373. The Company intends to file a counterclaim against the plaintiff for an amount in excess of the damages alleged in
the complaint.

We
are or may be involved from time to time in various claims and legal actions arising in the ordinary course of business, including
proceedings involving employee