Company: JSDA
Filing Date: 2025-07-03
Form Type: S-1
Source: 0001641172-25-017818
Chunk: 16

Company: JONES SODA CO.
Filing Date: 2025-07-03
Form: S-1
Chunk 16
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 shall be entitled to license the Licensee Modified Formulas on mutually
agreeable terms and conditions. Notwithstanding the foregoing, the Company shall maintain exclusive rights to products containing Hemp
(as defined in the SPA). Pursuant to the License Agreement, MJ Holdings shall pay the Company $150,000 on the one year anniversary of
the License Effective Date and $225,000 on each subsequent anniversary of the License Effective Date. The Licensing Fee shall be fixed
and non-adjustable during the term of the License.

In connection with the completion of the Sale Transaction, the Company has prepared the following unaudited pro forma condensed consolidated financial statements (“Unaudited Pro Forma Statements”).

The Unaudited Pro
Forma Statements are based on the Company’s historical consolidated financial statements adjusted to give effect to the Sale Transaction.
The Unaudited Pro Forma Condensed Consolidated Statements of Operations for the year ended December 31, 2024, and the three months ended
March 31, 2025, have been prepared with the assumption that the Sale Transaction occurred as of January 1, 2024 and January 1, 2025,
respectively. The Unaudited Pro Forma Condensed Consolidated Balance Sheet as of March 31, 2025 has been prepared with the assumption
that the Sale Transaction was completed as of the balance sheet date.

The Unaudited Pro Forma Statements do not necessarily reflect what the Company’s financial condition or results of operations would have been had the Sale Transaction occurred on the dates indicated, or which may result in the future. The actual financial position and results of operations may differ significantly from the pro forma amounts reflected herein due to a variety of factors. The Unaudited Pro Forma Statements have been prepared by the Company based upon assumptions deemed appropriate by the Company’s management. An explanation of certain assumptions is set forth under the Notes to Unaudited Pro Forma Condensed Consolidated Financial Statements.

The Unaudited Pro Forma Statements
should be read in conjunction with the (i) audited consolidated financial statements for the Company for the fiscal year ended December 31,
2024 included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024, filed with the SEC on April
1, 2025 (the “2024 Form 10-K”) and incorporated by reference in this prospectus, and the (ii) unaudited financial
statements for the Company for the three months ended March