Company: JSDA
Filing Date: 2025-07-03
Form Type: S-1
Source: 0001641172-25-017818
Chunk: 35

Company: JONES SODA CO.
Filing Date: 2025-07-03
Form: S-1
Chunk 35
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 our ability to gain or maintain share of sales in the        
 marketplace as a result of actions by competitors.                                              |

Due to these and other factors, our results of operations have fluctuated from period to period and may continue to do so in the future, which could cause our operating results in a particular quarter to fail to meet market expectations.

Changes in tax laws or the imposition of additional duties, quotas, tariffs, and other trade restrictions could adversely affect our business.

Changes in U.S. and Canadian trade
policy, such as the renegotiation of the U.S. Mexico Canada Agreement (“USMCA”) and the imposition of additional
tariffs, present risks to our business. Currently, the Company’s soft drink beverage products originate under the USMCA and
enter the US duty-free. Currently, the Company imports raw materials from the U.S. into Canada where it produces
glass products for the U.S. and Canadian markets. Any change to these tariffs or the imposition of other trade restrictions
(e.g., quotas) could adversely affect our ability to produce and market products at competitive prices which could impact sales
and financial results. The Company may not be able to move its Canadian based glass production to the U.S. at a similar production
cost if there is an adverse change to these tariffs or the imposition of other trade restrictions.

Our business and periodic financial results may be affected by currency rate fluctuations, because a significant percentage of our business is in Canada.

A significant percentage of our sales are conducted through our Canadian subsidiary, for which we receive revenues in the Canadian dollar. In addition, a significant percentage of our costs of goods are denominated in the Canadian dollar, due to our co-packing facility in Canada. Because of this we are affected by changes in U.S. exchange rates with the Canadian dollar.

In preparing our consolidated financial statements, certain financial information is required to be translated from the Canadian dollar to the U.S. dollar. The translation of our Canadian revenues, cash and other assets is adversely affected when the United States dollar strengthens against the Canadian dollar and is positively affected when the U.S. dollar weakens. Similarly, translation of our Canadian expenses and liabilities is positively affected when the U.S. dollar strengthens against the Canadian dollar and adversely affected when the U.S. dollar weakens. This exposure to foreign currency risk could significantly affect our revenues and profitability from our Canadian operations and could result in significant fluctuations to our periodic consolidated statements of operations and consolidated balance sheets.

Throughout 2024, the U.S. dollar’s strength fluct