Company: JSDA
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-011093
Chunk: 19

Company: JONES SODA CO.
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 8
Chunk 19
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 costs beyond the cost reductions achieved in the first
quarter of 2025. For the three months ended March 31, 2025 and 2024, non-cash expenses included in general and administrative expenses
(stock compensation and depreciation) were approximately $87,000 and $147,000   , respectively.

18

Income
Tax Expense

We
incurred approximately $nil and $10,000 of income tax expense during the quarter ended March 31, 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
loss

Net
loss for the quarter ended March 31, 2025 was approximately $0.9 million compared to net loss of approximately $1.2 million for the quarter
ended March 31, 2024 or an improvement of $0.3 million. This decrease in net loss was primarily due to the decreases in selling and marketing
expenses and general and administrative expenses in the first quarter of 2025 compared to the first quarter of 2024, being partially
offset by reduced sales revenues in the current quarter compared to the same quarter last year.

Seasonality
and other fluctuations

Our
sales are seasonal and we experience fluctuations in quarterly results as a result of many factors. We historically have generated a
greater percentage of our revenues during the warm weather months of April through September. Sales may fluctuate materially on a quarter
to quarter basis or an annual basis when we launch a new product or fill the “pipeline” of a new distribution partner or
a large retail partner. Sales results may also fluctuate based on the number of stock keeping units (“SKU”) selected or removed
by our distributors and retail partners through the normal course of serving consumers in the dynamic, trend-oriented beverage industry.
As a result, management believes that period-to-period comparisons of results of operations are not necessarily meaningful and should
not be relied upon as any indication of future performance or results expected for the fiscal year.