Company: JSDA
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001641172-25-024179
Chunk: 12

Company: JONES SODA CO.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 8
Chunk 12
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 period of three years from the date of issuance. For accounting purposes, the
Company estimated the fair value of the warrants at $50,711 on the issuance date. This amount was recognized as finance costs in the
condensed consolidated statements of operations. The valuation of the warrants was performed using the Black-Scholes option
pricing model, applying the following weighted-average assumptions:

 Schedule
of Weighted Average Assumptions Using the Black Scholes Valuation of Warrants

●Stock
                                            price 
     
    $0.20

●Risk
free interest rate 
     
    4.00%

●Expected
                                            volatility 
     
    79%

●Expected
life (in years) 
     
    3

●Expected
dividend
     
    nil

Subsequent
to June 30, 2025, the Company issued 250,000 warrants to Two Shores Capital Corp., exercisable at a price of $0.45 per share for a period
of three years from the date of issuance.

7. Promissory Notes

On
May 2, 2025, the Company entered into a Promissory Note (the “Note”) with the Chairman of the Board of the Company (the
“Lender”) for a principal amount of $0.45 million. The Note carries a fixed interest rate of 12% per annum and is
payable monthly in arrears. The principal, together with accrued interest, is due and payable in full by October 10,
2025.

In
addition to the principal and interest payments, the Company is required to pay a loan origination fee of $22,000, which is due on the
date of maturity. The Note permits the Company to make prepayments without penalty, provided there is no default in payment obligations.

During
the three and six months ended June 30, 2025, the Company repaid $0.17 million on the Notes. Subsequent to June 30, 2025,
the Company made an additional repayment of $0.14 million.

8. Insurance Premium Financing

Effective
November 15, 2024, the Company entered into a 1 one-year financing agreement with IPFS Corporation to fund a portion of its insurance
premiums in the amount of $0.2 million. Repayments are made quarterly on January 15, 2025, April 15, 2025, and by July 15,