Company: JSDA
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-011093
Chunk: 22

Company: JONES SODA CO.
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 8
Chunk 22
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) of the Securities Exchange
Act of 1934, as amended (the “Exchange Act”)) that are designed to ensure that the information required to be disclosed in
the reports that we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified
in the SEC’s rules and forms, and that such information is accumulated and communicated to our management, including our Chief
Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure. Management, under
the supervision and with the participation of our Chief Executive Officer and Chief Financial Officer, evaluated the effectiveness of
the design and operation of our disclosure controls and procedures pursuant to Exchange Act Rule 13a-15(b) as of the end of the period
covered by this report. Based on that evaluation, our Chief Executive Officer and Chief Financial Officer concluded that these disclosure
controls and procedures were effective as of March 31, 2025.

(b)
Changes in internal controls over financial reporting

There
were no other changes in our internal controls over financial reporting during the three months ended March 31, 2025 that have materially
affected, or are reasonably likely to materially affect, our internal controls over financial reporting. Based on our evaluation under
the COSO framework, management concluded that, as of such date, our internal controls over financial reporting were not effective as
of the end of the period covered by this interim report on Form 10-Q due to material weaknesses as describe herein. A material weakness
is a control deficiency (within the meaning of the Public Company Accounting Oversight Board (United States) Auditing Standard No. 2)
or combination of control deficiencies that result in more than a remote likelihood that a material misstatement of the annual or interim
financial statements will not be prevented or detected. Management has identified the following material weaknesses:

●
The Company had key senior accounting personnel transitioned over the course of the year-end process from the end of 2024 through the
beginning of 2025. As a result, adjustments to the year end balances were required to be made.

●
During the transition period noted above the Company lacked sufficient resources with respect to the number of people employed in its
accounting department and the adequacy of their training in relation to its financial reporting requirements.

Planned
Remediation

●
The Company announced a new experienced CFO in February, 2025. The Company hired additional CPA consultants to complete the year end
audit.

●
The