Company: JSDA
Filing Date: 2025-05-01
Form Type: 10-K/A
Source: 0001641172-25-007974
Chunk: 19

Company: JONES SODA CO.
Filing Date: 2025-05-01
Form: 10-K/A
Chunk 19
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 case, subject to Mr. Goldner’s continued service with the Company).                                                            |

Additional Narrative Disclosure

On March 15, 2022, our Board adopted the 2022 Plan, which became effective upon approval by our shareholders on May 16, 2022. Under the 2022 Plan, the sum of (i) 10,000,000 shares of the Company’s common stock, plus (ii) the number of shares of common stock reserved, but unissued under the 2011 Plan, plus (iii) the number of shares of common stock underlying forfeited awards under the 2011 Plan are initially available for issuance of awards under the 2022 Plan. Additionally, the number of shares of the Company’s common stock available reserved under the 2022 Plan is subject to an annual increase on the first day of each calendar year beginning with the first January 1 following the effective date of the 2022 Plan and ending with the last January 1 during the initial ten-year term of the 2022 Plan, equal to the lesser of (A) 4% of the shares of the Company’s common stock outstanding (which shall include shares issuable upon the exercise or conversion of all outstanding securities or rights convertible into or exercisable for shares, including without limitation, preferred stock, warrants and employee options to purchase any shares) on the final day of the immediately preceding calendar year and (B) such lesser number of shares of common stock as determined by our Board. The Company may grant incentive stock options, non-statutory stock options, stock appreciation rights, RSUs, restricted stock units and other stock-based awards to participants to acquire shares of Company common stock under the 2022 Plan. The 2022 Plan is administered by the Compensation Committee.

Compensation Practices

We have evaluated the risks arising from our compensation policies and practices for our employees and concluded that such risks are not reasonably likely to have a material adverse effect on the Company. In this regard, the following factors, among others, were considered:

| ● 
 ● | Compensation                                                                                                                      
 is in line with the Company’s business plan and discourages inappropriate risk-taking for short-term gains;                       
 Long-term                                                                                                                         
 incentive compensation is primarily in the form of stock options that generally vest over multiple year periods, thereby aligning 
 the interests of management and other key employees with the long-term interests of our shareholders;                             |
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| ● | Annual                                                                                                                            
 cash bonuses are discretionary and are not