Company: JSDA
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001641172-25-024179
Chunk: 5

Company: JONES SODA CO.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 8
Chunk 5
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 earnings (loss) per share is computed by adjusting the weighted average number of common shares to reflect the potential
impact of dilutive securities, including stock options, warrants, and restricted stock units.

During
the three and six months ended June 30, 2025 and 2024, the following potentially dilutive securities were considered anti-dilutive
and were therefore excluded from the computation of diluted earnings (loss) per share:

●Stock
                                            options: approximately 12,528,244 and 13,037,772 shares for the three and six months
                                            ended June 30, 2025 and 2024, respectively

●Warrants:
                                            approximately 6,695,400 and nil shares for the three and six months ended June 30, 2025 and
                                            2024, respectively

●Restricted
                                            stock units: nil and approximately 1,998,979 shares for the three and six months ended
                                            June 30, 2025 and 2024, respectively 

    11
    Table of Contents

Recently
Adopted Accounting Pronouncements

In December 2023, the Financial
Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2023-09: Income Taxes (Topic 740):
Improvements to Income Tax Disclosures. This guidance requires entities to provide more detailed disclosures about income tax expenses
(or benefits), including components of the expense (or benefit) and the nature of significant reconciling items. Entities must also disclose
information about unrecognized tax benefits, including a tabular reconciliation of beginning and ending balances of unrecognized tax benefits,
and details about valuation allowances, including the nature and amount of valuation allowances recorded and released during the period.
The guidance is effective for fiscal years beginning after December 15, 2024, including interim periods within those fiscal years. Early
adoption is permitted. The adoption of ASU 2023-09 did not have a material impact on the Company’s condensed consolidated financial
statements.

In March 2024, the FASB
issued ASU 2024-01: Compensation—Stock Compensation (Topic 718): Scope Application of Profits Interest and Similar Awards.
This update provides guidance on the scope application of profits interest and similar awards under Topic 718. The amendments
improve clarity and understanding of paragraph 718-10-15-3, aiding entities in determining whether a profits interest award should
be accounted for as a share-based payment arrangement