Company: JSDA
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001641172-25-024179
Chunk: 1

Company: JONES SODA CO.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 8
Chunk 1
---
 reflect all material adjustments necessary
for a fair presentation of our financial position, results of operations, and cash flows as of the dates and for the periods presented.
These adjustments consist solely of normal and recurring items. The preparation of financial statements requires estimates and assumptions
that impact the reported amounts of assets, liabilities, revenues, and expenses. Key areas subject to such estimates and assumptions
include, but are not limited to, inventory valuation, depreciation and valuation of capital assets, accounts receivable credit loss reserve,
trade promotion liabilities, stock-based compensation expense, valuation allowance for deferred income tax assets, contingencies, and
forecasts supporting the going concern assumption and related disclosures. Actual results may differ from these estimates.

The
operating results for interim periods are not necessarily indicative of expected results for the full fiscal year. These financial statements
should be reviewed in conjunction with the audited financial statements and accompanying notes included in our Annual Report on Form
10-K for the fiscal year ended December 31, 2024.

In
accordance with ASC 205-20, the Company has classified the Cannabis Subsidiaries as discontinued operations. The results of
discontinued operations are presented separately in the condensed consolidated statements of operations for all periods presented
and the assets and liabilities of Cannabis Subsidiaries have been reflected as assets and liabilities of discontinued operations in
the accompanying unaudited condensed consolidated balance sheets for all periods presented. (Note 2).

Reclassifications

Certain
amounts from prior periods have been reclassified to conform with the current period presentation.

Liquidity

As
of June 30, 2025, and December 31, 2024, the Company had cash of approximately $0.7 million and $1.5 million, respectively, and working
capital of approximately $1.6 million and $2.0 million, respectively. Net cash used in operating activities for the six months ended
June 30, 2025 and 2024, was approximately $2.6 million and $3.0 million, respectively. The Company reported a net income of approximately
$1.8 million for the six months ended June 30, 2025, compared to a net loss of approximately $2.7 million for the six months ended June
30, 2024. As of June 30, 2025, the Company’s accumulated deficit decreased to approximately $91.2 million, compared to approximately
$92.9 million as of December 31,