Company: JSDA
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-011093
Chunk: 7

Company: JONES SODA CO.
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 8
Chunk 7
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 March
                                            31, 2025 (in
                                            thousands)  
    December
                                            31,
                                                                                                                  2024 (in
                                            thousands) 
  
    Employee benefits 
    $229  
    $220 
  
    Goods and services tax 
     152  
     155 
  
    Legal settlement 
     1  
     135 
  
    Sales and marketing 
     1,057  
     1,309 
  
    Other accruals 
     412  
     654 
  
    Accrued expenses 
    $1,851  
    $2,473 

    5.
    Revolving
    Credit Facility

During
the year ended December 31, 2024, the Company entered into a Revolving Financing and Assignment Agreement (“RFAA”), which
provided a revolving credit facility of up to $2.0 million (the “Total Credit Facility”) at an interest rate equal to the
prime rate plus 3.50% per annum, with a minimum floor rate of 6.00%. This facility was intended to support the Company’s working
capital needs and general corporate purposes. On February 24, 2025, the Company made a payment of approximately $0.1 million to fully
repay the Total Credit Facility and formally terminated the RFAA. Following this payment, the Company was released from any further obligations
under the terms of the agreement.   

On
February 5, 2025, the Company, through its Subsidiary, entered into a Loan Agreement with Two Shores Capital Corp., pursuant to which
the Subsidiary may borrow up to an aggregate maximum amount of $5.0 million, subject to the satisfaction of certain conditions. Advances
under the Loan Agreement bear interest at a rate of 13.75% per annum. All present and future obligations of the Subsidiary under the
Loan Agreement are secured by a first-priority security interest in all assets of the Company, the Subsidiary, and the Company’s
other U.S. subsidiaries. As of March 31, 2025, the outstanding balance under the Loan Agreement, including accrued interest, was approximately
$1.3 million. The Company is obligated to provide periodic financial reporting, reporting of its inventory and accounts receivable listings,
maintenance of its subsidiaries in good legal standing, maintenance of its insurance policies and payments of its tax obligations