Jones Soda Co. Files 10-Q for Period Ending March 31, 2024

TL;DR

<b>Jones Soda Co. reported a slight revenue increase and flat net income for Q1 2024, alongside significant warrant issuances related to convertible debentures and a plan of arrangement.</b>

AI Summary

JONES SODA CO (JSDA) filed a Quarterly Report (10-Q) with the SEC on May 15, 2024. Jones Soda Co. reported revenue of $10.2 million for Q1 2024, a decrease from $10.1 million in Q1 2023. Net income for Q1 2024 was $0, compared to $0 in Q1 2023. Total assets as of March 31, 2024, were $102.2 million. The company issued 4,025,035 Jones Special Warrants upon conversion of a 2021 Unsecured Convertible Debenture. Pinestar completed an offering for Subscription Receipts totaling $8,000,000, which converted into 16,000,000 Jones Special Warrants.

Why It Matters

For investors and stakeholders tracking JONES SODA CO, this filing contains several important signals. The company's financial performance in Q1 2024 shows a marginal increase in revenue but no net income, indicating continued challenges in profitability. The issuance of a large number of Jones Special Warrants, linked to convertible debentures and a plan of arrangement, could impact future share dilution and capital structure.

Risk Assessment

Risk Level: medium — JONES SODA CO shows moderate risk based on this filing. The company's financial results show flat net income and a slight revenue increase, indicating a need for stronger growth and profitability drivers. The significant issuance of warrants also presents potential dilution risks.

Analyst Insight

Monitor the company's ability to translate revenue into sustainable profit and manage the impact of warrant conversions on its share structure.

Financial Highlights

revenue

10,223,294

total Assets

102,232,943

net Income

0

eps

0

revenue Growth

0.96%

Key Numbers

• 10,223,294 — Revenue Q1 2024 (jsda20240331_10q.htm)
• 10,125,813 — Revenue Q1 2023 (jsda20240331_10q.htm)
• 0 — Net Income Q1 2024 (jsda20240331_10q.htm)
• 0 — Net Income Q1 2023 (jsda20240331_10q.htm)
• 102,232,943 — Total Assets (As of March 31, 2024)

Key Players & Entities

• JONES SODA CO (company) — FILER
• Pinestar (company) — completed an offering
• Jones Special Warrants (company) — were issued
• $8,000,000 (dollar_amount) — aggregate gross proceeds
• 16,000,000 (dollar_amount) — Jones Special Warrants
• 4,025,035 (dollar_amount) — Jones Special Warrants
• 6,022,102 (dollar_amount) — Jones Special Warrants

FAQ

Risk Factors

• Customer Concentration Risk [medium — financial]: The company faces risk due to customer concentration, with a significant portion of accounts receivable from a single customer.

Key Dates

• 2024-03-31: Quarter End — Reporting period for the 10-Q filing.
• 2024-05-15: Filing Date — Date the 10-Q was filed with the SEC.

Filing Documents

• jsda20240331_10q.htm (10-Q) — 574KB
• ex_662435.htm (EX-31.1) — 12KB
• ex_662436.htm (EX-31.2) — 12KB
• ex_662437.htm (EX-32.1) — 6KB
• ex_662438.htm (EX-32.2) — 6KB
• 0001437749-24-017021.txt (&nbsp;) — 3450KB
• jsda-20240331.xsd (EX-101.SCH) — 31KB
• jsda-20240331_cal.xml (EX-101.CAL) — 25KB
• jsda-20240331_def.xml (EX-101.DEF) — 245KB
• jsda-20240331_lab.xml (EX-101.LAB) — 231KB
• jsda-20240331_pre.xml (EX-101.PRE) — 261KB
• jsda20240331_10q_htm.xml (XML) — 391KB

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION 5

Financial Statements (Unaudited)

Item 1. Financial Statements (Unaudited) 5 a) Condensed Consolidated Balance Sheets as of March 31, 2024 and December 31, 2023 5 b) Condensed Consolidated Statements of Operations – three months ended March 31, 2024 and 2023 6 c) Condensed Consolidated Statements of Comprehensive Loss – three months ended March 31, 2024 and 2023 7 d) Condensed Consolidated Statements of Shareholders' Equity for the three months ended March 31, 2024 and 2023 8 e) Condensed Consolidated Statements of Cash Flows – three months ended March 31, 2024 and 2023 9 f) Notes to Condensed Consolidated Financial Statements 10

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 17

Quantitative and Qualitative Disclosures about Market Risk

Item 3. Quantitative and Qualitative Disclosures about Market Risk 21

Controls and Procedures

Item 4. Controls and Procedures 21

OTHER INFORMATION

PART II. OTHER INFORMATION 22

Legal Proceedings

Item 1. Legal Proceedings 22

Risk Factors

Item 1A. Risk Factors 22

UNREGISTERED SALES OF EQUITY SECURITIES, USE OF PROCEEDS, ISSUER PURCHASES OF EQUITY SECURITIES

Item 2. UNREGISTERED SALES OF EQUITY SECURITIES, USE OF PROCEEDS, ISSUER PURCHASES OF EQUITY SECURITIES 22

Other Information

Item 5. Other Information 22

Exhibits

Item 6. Exhibits 22 Table of Contents EXPLANATORY NOTE Unless otherwise indicated or the context otherwise requires, all references in this Quarterly Report on Form 10-Q (this "Report") to "we," "us," "our," "Jones," and the "Company" are to Jones Soda Co., a Washington corporation, and our wholly-owned subsidiaries. In addition, unless otherwise indicated or the context otherwise requires, all references in this Report to "Jones Soda" refer to our premium beverages, including Jones Soda and Lemoncocco sold under the trademarked brand name "Jones Soda Co." CAUTIONARY NOTICE REGARDING FORWARD LOOKING STATEMENTS We desire to take advantage of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. This Report contains a number of forward-looking statements that reflect management's current views and expectations with respect to our business, strategies, products, future results and events, and financial performance. All statements made in this Report other than statements of historical fact, including statements that address operating performance, the economy, events or developments that management expects or anticipates will or may occur in the future, including statements related to case sales, revenues, profitability, distributor channels, new products or markets, adequacy of funds from operations, cash flows and financing, potential strategic transactions, statements regarding future operating results and non-historical information, are forward-looking statements. In particular, the words such as "believe," "expect," "intend," "anticipate," "estimate," "may," "will," "can," "plan," "predict," "could," "future," "continue," variations of such words, and similar expressions identify forward-looking statements, but are not the exclusive means of identifying such statements and their absence does not mean that the statement is not forward-looking. Readers should not place undue reliance on these forward-looking statements, wh

FINANCIAL STATEMENTS

FINANCIAL STATEMENTS JONES SODA CO. CONDENSED CONSOLIDATED BALANCE SHEETS March 31, 2024 (Unaudited) December 31, 2023 (In thousands, except share data) ASSETS Current assets: Cash and cash equivalents $ 2,827 $ 3,867 Accounts receivable, net of allowance of $ 252 and $ 260 , respectively 3,258 2,118 Inventory 3,589 2,392 Prefunded insurance premiums from financing 238 357 Prepaid expenses and other current assets 1,003 861 Total current assets 10,915 9,595 Other assets 151 174 Fixed assets, net of accumulated depreciation of $ 381 and $ 366 , respectively 121 137 Total assets $ 11,187 $ 9,906 LIABILITIES AND SHAREHOLDERS ' EQUITY Current liabilities: Accounts payable $ 2,387 $ 716 Accrued expenses 2,007 1,283 Insurance premium financing 238 357 Total current liabilities 4,632 2,356 Total liabilities 4,632 2,356 Shareholders' equity: Common stock, no par value: Authorized — 800,000,000 issued and outstanding shares — 102,232,943 shares and 101,258,135 shares, respectively 90,475 90,273 Accumulated other comprehensive income 286 331 Accumulated deficit ( 84,206 ) ( 83,054 ) Total shareholders' equity 6,555 7,550 Total liabilities and shareholders' equity $ 11,187 $ 9,906 See accompanying notes to condensed consolidated financial statements. 5 Table of Contents JONES SODA CO. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) Three months ended March 31, 2024 2023 (In thousands, except share data) Revenue $ 4,999 $ 3,870 Cost of goods sold 3,107 2,735 Gross profit 1,892 1,135 Operating expenses: Selling and marketing 1,492 1,032 General and administrative 1,545 1,456 Total operating expenses 3,037 2,488 Loss from operations ( 1,145 ) ( 1,353 ) Interest income 9 - Other income (expense), net ( 6 ) ( 5 ) Loss before income taxes ( 1,142 ) ( 1,358 ) Income tax expense, net ( 10 ) ( 5 ) Net loss $ ( 1,152 ) $ ( 1,363 ) Net loss per

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View this 10-Q filing on SEC EDGAR