Company: JSDA
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001641172-25-024179
Chunk: 28

Company: JONES SODA CO.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 8
Chunk 28
---
 quarters driven by Core Soda, HD9, Spiked Jones, Modern Soda formats (Pop Jones
and Fiesta Jones), direct to consumer, as well as growth in club, food service and convenience store channels. Core Soda sales for 2025
is expected to end the year down slightly over the prior year’s total core soda sales.

Gross
Profit

For
the six months ending June 30, 2025, gross profit decreased by approximately $0.8 million, or 22%, to approximately $3.0 million compared
to approximately $3.8 million for the six months ending June 30, 2024 because of lower sales revenue. For the six months ending June
30, 2025, gross margin decreased to 33.3% from 34.5% in the comparable period driven by higher initial product costs for new Jones products.
The Company expects that with higher sales volumes of these new products, product costs are expected to be lower as we negotiate lower
co-manufacturing fees and lower raw material and packaging.

Selling
and Marketing Expenses

Selling
and marketing expenses for the six months ending June 30, 2025, were approximately $2.2 million, a decrease of approximately $0.9 million,
or 29%, from approximately $3.1 million in the comparable period. This decrease was primarily a result of decreased online marketing
spend and tradeshows and sponsorships for both the Jones Soda and Mary Jones brands in the six months ending June 30, 2025, compared
to the same period in 2024. Selling and marketing expenses as a percentage of revenue decreased to 24% in the six months ending June
30, 2025, from 28% in the same period in 2024. We intend to continue to look for clear return on investment from our selling and marketing
expenses to drive profitable sales. For the six months ending June 30, 2025, and 2024, non-cash expenses included in selling and marketing
expenses (stock compensation and depreciation) were approximately $82,000 and $65,000, respectively.

21

General
and Administrative Expenses

General
and administrative expenses for the six months ending June 30, 2025, were approximately $2.6 million compared to $3.8 million in the
first six months ending June 30, 2024, or a reduction of $1.2 million (31% reduction). General and