Company: JSDA
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-011093
Chunk: 17

Company: JONES SODA CO.
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 8
Chunk 17
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 our Pop Jones and Fiesta Jones brands;

    ●
    Expand
    our fountain program in the United States and Canada; and,

    ●
    Grow
    the new Mary Jones brand of Tetrahydrocannabinol (THC) and cannabidiol (CBD)-infused beverages, edibles, and other related products
    through our Mary Jones brand as well as the number of states and Canadian provinces where such products are sold.

17

Results
of Operations

The
following selected financial and operating data are derived from our condensed consolidated financial statements and should be read in
conjunction with our condensed consolidated financial statements.

Three
months ended March 31, 2025 and 2024

    2024  
    2023  

    (Dollars
    in thousands)  
    (Dollars
    in thousands)  
    %
    Change 
  
    Revenue 
    $4,608  
    $4,999  
     (7.8%)
  
    Cost of Goods Sold 
     (2,891) 
     (3,107) 
     (7.0%)
  
    Gross Profit 
     1,717  
     1,892  
     (9.2%)
  
    % of Revenue 
     37.3% 
     37.8% 

Quarter
Ended March 31, 2025 Compared to Quarter Ended March 31, 2024

Revenue

For
the quarter ended March 31, 2025, revenue decreased by approximately $0.4 million, or 7.8%, to approximately $4.6 million compared to
approximately $5.0 million for the quarter ended March 31, 2024. The decrease in sales revenue was primarily the result of a large pipeline
fill by a new distributor in Canada in the first quarter of 2024 that was not repeated in the current period. First
quarter 2025 revenues included significantly higher sales of HD9 products compared to the prior period.

For
the quarter ended March 31, 2025, trade spend and promotional allowances, which reduced the amount of revenue for the sales of our product,
totaled approximately $0.7 million, an increase of approximately $0.3 million, or 75%, compared to approximately $0.4 million for the
quarter ended March 31, 2024, mostly driven by