Company: JSDA
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-011093
Chunk: 20

Company: JONES SODA CO.
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 8
Chunk 20
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Liquidity
and Capital Resources

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 2024, was approximately $1.7 million and $1.0 million, respectively. The Company reported a net loss of approximately
$0.8 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 credit facility, partially offset by a $0.3   million payment related to the termination
of a prior credit facility and $0.1 million, reflecting repayments under the Company’s insurance financing agreement. In contrast,
for the three months ended March 31, 2024, net cash used in financing activities amounted to approximately $0.1 million,
reflecting repayments under the Company’s insurance financing agreement, partially offset by proceeds from the exercise of Pinestar
warrants.

We
have experienced recurring losses from operations and negative cash flows from operating activities. These factors raise substantial
doubt regarding the Company’s ability to continue as a going concern. To address this issue, the Company recently changed its senior
leadership and is focusing on reducing its operating expenses while bringing new products to market with higher margins and potentially
higher customer demand. Additionally, on February 5, 2025, the Company, through a wholly-owned subsidiary (the “Subsidiary”),
entered into loan agreement (the “Loan Agreement”) with Two Shores Capital Corp, pursuant to which the Subsidiary may borrow
a maximum aggregate amount of up to $5 million, subject to satisfaction of certain conditions. All advances drawn under the Loan Agreement
will bear interest at a rate of 13