Jones Soda (JSDA) Registration Filing summary

Company overview and business model

• Develops, produces, markets, and distributes premium beverages in the US, Canada, and select international markets, primarily through independent distributors and direct retail accounts.

• Core products include Jones Soda (premium carbonated soft drinks), fountain beverages, and Mary Jones (THC-infused cannabis sodas and edibles).

• Manufacturing is outsourced to third-party contract manufacturers; also licenses trademarks and sells online, including customizable products.

• Focuses on brand engagement through consumer-submitted label photos and innovative marketing, including augmented reality labels and social media campaigns.

• Mary Jones cannabis products are licensed and distributed in California, Washington, and Ontario, Canada, with plans for further expansion.

Financial performance and metrics

• For the year ended December 31, 2023, revenue was $16.7 million, down 12.7% from 2022, primarily due to a one-time inventory event in 2022 and decreased fountain and Canadian sales.

• Gross profit for 2023 was $4.9 million (29.1% margin), up from 26.9% in 2022 due to improved supply chain management and pricing.

• Net loss for 2023 was $4.9 million, improved from a $6.4 million loss in 2022, reflecting lower marketing and administrative costs.

• As of June 30, 2024, cash and equivalents were $1.5 million, with working capital of $5.2 million; net loss for the first half of 2024 was $2.7 million.

• Revenue for the first half of 2024 increased 40.1% year-over-year to $12.2 million, driven by Mary Jones and online sales; gross margin rose to 36.6%.

Use of proceeds and capital allocation

• The company will not receive proceeds from the resale of shares by selling shareholders; all proceeds go to the selling shareholders.

• Recent private placements in 2024 raised $3.7 million in gross proceeds to support working capital and growth initiatives.

• A $2 million revolving credit facility was secured in May 2024 for working capital needs.