Jones Soda Co. reported its financial results for the third quarter and the nine months ended September 30, 2024, revealing a mixed performance in revenue and profitability compared to the previous fiscal period.

For the three months ended September 30, 2024, Jones Soda generated revenue of $4,211,000, a decrease of 6.4% from $4,497,000 in the same period in 2023. However, for the nine months ended September 30, 2024, revenue increased to $16,367,000, up 24.2% from $13,173,000 year-over-year. The gross profit for the third quarter was $894,000, representing a significant decline of 39.6% from $1,480,000 in the prior year, while gross profit for the nine months rose to $5,347,000, an increase of 28.1% from $4,174,000.

Operating expenses surged during the third quarter, totaling $3,511,000, compared to $2,424,000 in the same quarter of 2023. This increase contributed to a loss from operations of $(2,617,000) for the third quarter, compared to $(944,000) in the prior year. For the nine-month period, the loss from operations was $(5,353,000), up from $(3,326,000) in 2023. The net loss for the third quarter was $(2,628,000), compared to $(934,000) in the same quarter of 2023, while the nine-month net loss increased to $(5,348,000) from $(3,321,000).

The company’s cash and cash equivalents decreased to $2,685,000 as of September 30, 2024, down from $3,867,000 at the end of 2023. Total current assets rose to $11,675,000, compared to $9,595,000 at the end of the previous year. Total liabilities also increased significantly, with current liabilities reaching $5,091,000, up from $2,356,000.

Strategically, Jones Soda closed a private placement during the quarter, resulting in net proceeds of approximately $3.7 million. Additionally, the company established a $2 million revolving credit facility in May 2024 to support working capital needs. The accumulated deficit increased to $88.4 million as of September 30, 2024, from $83.1 million at the end of 2023.

The company is also involved in legal disputes, including a claim from Core regarding alleged breaches of a manufacturing agreement, which seeks damages of $7,220,357. Jones Soda disputes these claims and has filed a counterclaim against Core.

Overall, while Jones Soda experienced revenue growth over nine months, it faced increased losses and operational challenges in the third quarter, alongside significant changes in its financial position and strategic initiatives.