10-Q - JONES SODA CO (0001083522) (Filer)

Thu, May 15, 9:39 PM (34 days ago)

**Jones Soda Co. (JSDCF) Q1 2025 Financial Summary** Jones Soda Co. (JSDCF) reported a challenging first quarter for 2025, with revenue and profit margins declining year-over-year. The company's financial health reflects ongoing operational and market challenges, despite efforts to diversify product offerings and reduce expenses. **Revenue and Profit Margins:** - **Revenue:** Decreased by 7.8% to $4.6 million from $4.999 million in Q1 2024. - **Gross Profit:** Declined by 9.2% to $1.717 million, with a gross margin of 37.3%, down from 37.8% in Q1 2024. - **Operating Expenses:** Selling and marketing expenses decreased by 20% to $1.209 million, while general and administrative expenses reduced by 20% to $1.189 million. - **Net Loss:** Improved by $0.3 million to $0.852 million, primarily due to reduced operating expenses. **Cash Flow and Liquidity:** - **Net Cash Used in Operations:** Increased to $1.715 million from $0.958 million in Q1 2024. - **Financing Activities:** Provided $0.916 million, mainly from a new credit facility. - **Cash Position:** Declined to $0.735 million from $1.533 million at the end of 2024. **Earnings and Shareholder Equity:** - **Net Loss per Share:** Remained at $0.01. - **Shareholders' Equity:** Decreased to $1.396 million from $2.156 million, with an accumulated deficit of $93.8 million. **Future Operations and Uncertainties:** - **Strategic Focus:** Aims to grow sales through expanded distribution, new product launches, and cost reductions. - **Market Risks:** Faces competition, regulatory challenges, and economic uncertainties. - **Going Concern:** Management expresses doubt about the company's ability to continue as a going concern, citing recurring losses and negative cash flows. **Segment Performance:** - **Beverages:** Revenue decreased to $4.230 million from $4.587 million, with a loss from operations of $0.921 million. - **Cannabis-Derived (THC) Beverages:** Revenue increased to $0.378 million from $0.412 million, with a profit of $0.240 million. **Conclusion:** Jones Soda Co. is navigating a difficult market environment, with declining revenues and ongoing financial challenges. The company's strategic initiatives and cost-reduction efforts are crucial for improving financial health and ensuring long-term sustainability. However, significant uncertainties and risks remain, requiring careful management and adaptive strategies.