Company: JSDA
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001641172-25-024179
Chunk: 7

Company: JONES SODA CO.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 8
Chunk 7
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 in Note 1, on June 19, 2025 (the “Date of Disposition”), the Company entered into the SPA with its cannabis beverage
subsidiaries (the “Cannabis Subsidiaries”) and the MJ Reg pursuant to which, on the Date of Disposition, the MJ Reg purchased
all of the issued and outstanding shares of the Cannabis Subsidiaries from the Company for the Share Purchase Price of $3.0 million promissory
notes and inventory for approximately $0.06 million as set forth in the SPA (the “Sale Transaction”). The Share Purchase
Price was paid as follows:

●A
                                            $3.0 million promissory note, payable as follows:   

○$0.5
                                            million at the Date of Disposition (paid);   

○$0.5
                                            million due on June 27, 2025 (of which $0.1million) was paid prior to June 30,
                                            2025 and $0.4 million was received subsequent to June 30, 2025);   

○$0.5
                                            million due on June 19, 2026;

○$0.75
                                            million due on June 19, 2027; and 

○$0.75
                                            million due on June 19, 2028.

The
promissory note accrues interest at the lower of 3% per annum and the lowest amount permitted by law; provided, however, if MJ Reg satisfies
its obligations under the promissory note, in full, pursuant to the terms thereof, any interest accrued pursuant to the promissory note
shall be waived. Notwithstanding the foregoing, upon the occurrence of an Event of Default (as defined in the promissory note), the outstanding
principal amount of the promissory note together with any accrued and unpaid interest thereon shall accrue interest at a rate of 10%
per annum. The promissory note shall mature upon the earlier of (i) June 19, 2028 and (ii) in the event of prepayment of the promissory
note, the date that the principal amount of the promissory note together with the interest accrued thereon is paid in full by MJ Reg.

    12

On
June 19, 2025 (the “License Effective Date”), in connection with the