Company: JSDA
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001641172-25-024179
Chunk: 26

Company: JONES SODA CO.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 8
Chunk 26
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ows and sponsorships for both the Jones Soda and Mary Jones brands in the second quarter
of 2025 compared to the same quarter of 2024. Selling and marketing expenses as a percentage of revenue decreased to 21% in the second
quarter ending June 30, 2025 from 25% in the same period in 2024. We intend to continue to look for clear return on investment from our
selling and marketing expenses to drive profitable sales. For the three months ending June 30, 2025, and 2024, non-cash expenses included
in selling and marketing expenses (stock compensation and depreciation) were approximately $65,000 and $38,000, respectively.

General
and Administrative Expenses

General
and administrative expenses for the second quarter ending June 30, 2025 were approximately $1.3 million compared to $2.2 million in the
second quarter ending June 30, 2024 or a reduction of $0.9 million. General and administrative expenses as a percentage of revenue decreased
to 27% in the second quarter ending June 30, 2025 from 33% in the same quarter in 2024 or an approximately 6 percentage points decrease.
We intend to continue to look for additional opportunities to reduce our G&A costs beyond the cost reductions achieved in 2025. For
the three months ending June 30, 2025, and 2024, non-cash expenses included in general and administrative expenses (stock compensation
and depreciation) were approximately $148,000 and $435,000, respectively.

20

Income
Tax Expense

We
incurred approximately $7,000 and $11,000 of  income tax expense during the quarter ended June 30, 2025 and 2024, respectively.
We have not recorded any tax benefit for the loss in our U.S. operations as we have recorded a full valuation allowance on our U.S. net
deferred tax assets. We expect to continue to record a full valuation allowance on our U.S. net deferred tax assets until we sustain
an appropriate level of taxable income through improved U.S. operations. Our effective tax rate is based on recurring factors, including
the forecasted mix of income before taxes in various jurisdictions, estimated permanent differences and the recording of a full valuation
allowance on our U.S. net deferred tax assets.

Net
income (loss)

Net
Income for the quarter ended June 30, 2025 was approximately