Company: JSDA
Filing Date: 2025-07-03
Form Type: S-1
Source: 0001641172-25-017818
Chunk: 36

Company: JONES SODA CO.
Filing Date: 2025-07-03
Form: S-1
Chunk 36
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uated significantly in comparison to the Canadian dollar. Based on the Noon buying rates in New York City for cable transfers in foreign currencies as certified for customs purposes by the Federal Reserve Bank of New York, as of June 27, 2025, the Canadian dollar exchange rate for one U.S. dollar was equal to $0.7317 compared to $0.6944 as of December 31, 2024 and $0.7575 as of December 31, 2023. We cannot predict future changes in these exchange rates. We do not engage in foreign currency hedging transactions.

| 19 |

Changes in our effective tax rate may impact our results of operations.

We are subject to taxes in the U.S. and other jurisdictions. Tax rates in these jurisdictions may be subject to significant change due to economic and/or political conditions. A number of other factors may also impact our future effective tax rate including:

| ● | the                                                                                                                                
 jurisdictions in which profits are determined to be earned and taxed;                                                              |
| ● | the                                                                                                                                
 resolution of issues arising from tax audits with various tax authorities;                                                         |
| ● | changes                                                                                                                            
 in valuation of our deferred tax assets and liabilities;                                                                           |
| ● | increases                                                                                                                          
 in expenses not deductible for tax purposes, including write-offs of acquired intangibles and impairment of goodwill in connection 
 with acquisitions;                                                                                                                 |
| ● | changes                                                                                                                            
 in availability of tax credits, tax holidays, and tax deductions;                                                                  |
| ● | changes                                                                                                                            
 in share-based compensation; and                                                                                                   |
| ● | changes                                                                                                                            
 in tax laws or the interpretation of such tax laws.                                                                                |

Any material increase in the taxes we owe could materially impact our financial results and results of operations.

Global economic, political, social and other conditions may continue to adversely impact our business and results of operations.

The beverage industry, and particularly those companies selling premium beverages like us, can be affected by macro-economic factors, including changes in national, regional, and local economic conditions, unemployment levels and consumer spending patterns, which together may impact the willingness of consumers to purchase our products as they adjust their discretionary spending. Adverse economic conditions may adversely affect the ability of our distributors to obtain the credit necessary to fund their working capital needs, which could negatively impact their ability or desire to continue to purchase products from us in the same frequencies and volumes as they have done in the past. If we experience similar adverse economic conditions in the future, sales of our products could be adversely affected,