Company: JSDA
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-011093
Chunk: 6

Company: JONES SODA CO.
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 8
Chunk 6
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 induced conversion.
The amendments specify that an inducement offer must provide the debt holder with consideration meeting or exceeding the conversion privileges
outlined in the instrument’s original terms. Additionally, the update addresses convertible debt instruments that are not currently
convertible but included substantive conversion features at issuance and at the time of the inducement. The guidance is effective for
fiscal years beginning after December 15, 2025, including interim periods within those fiscal years. Early adoption is permitted for
entities that have adopted ASU 2020-06. We are currently evaluating the impact of adopting this guidance on our consolidated financial
statements and disclosures.

    2.
    Inventory

Inventory
consisted of the following:

 Schedule of Inventory

    March
    31, 2025

(in thousands)
  
    December
    31, 2024

(in thousands)

    Finished goods 
    $2,110  
    $2,198 
  
    Raw materials 
     1,798  
     1,340 
  
    Inventory, Net 
    $3,908  
    $3,538 

Finished
goods primarily consist of products ready for shipment and promotional merchandise held for sale. Raw materials include ingredients,
concentrate, and packaging materials. For the three months ended March 31, 2025 and 2024  , the Company recorded obsolete inventory
expenses of approximately $25,000 and $38,000, respectively.

    12

    3.
    Fixed
    Assets, net
  
 Schedule of Fixed Assets, Net

    March
                                            31, 2025
                                                                                (in
                                            thousands)  
    December 31,
                                                                                2024
                                                                                (in thousands) 
  
    Vehicles 
    $65  
    $65 
  
    Equipment 
     203  
     203 
  
    Office and computer equipment 
     262  
     262 
  
    Property, plant and equipment, gross 
     530  
     530 
  
    Accumulated depreciation 
     (435) 
     (422)
  
    Property, plant and equipment,
    net 
    $95  
    $108 

    4.
    Accrued
    Expenses

Accrued
expenses consisted of the following as of March 31, 2025 and December 31, 2024:

 Schedule of Accrued Expenses