Jones Soda Co. reported its financial results for the third quarter ended September 30, 2024, with revenue decreasing to $4.2 million, down from $4.5 million in the prior year period. The decline was primarily attributed to reduced sales volumes resulting from a Canadian distributor transition and the loss of a discount retail customer in the U.S.
The company's net loss widened to $2.6 million, or $(0.02) per share, compared to a net loss of $0.9 million, or $(0.01) per share, in the third quarter of 2023. Adjusted EBITDA also worsened to $(2.2) million from $(0.9) million in the year-ago period, reflecting operational headwinds.
Gross margin for the quarter was 21.2%, a decrease from 32.9% in Q3 2023, primarily driven by a one-time trade spend adjustment associated with the Canadian distributor transition and an unfavorable product mix. Total operating expenses increased to $3.5 million from $2.4 million, due to increased spending on product innovation, marketing initiatives, and higher legal expenditures related to the Mary Jones business.
Despite the overall revenue decline, the Mary Jones brand generated approximately $800,000 in revenue, a significant increase from $220,000 in the third quarter of 2023. This growth indicates some success in the company's cannabis-infused beverage segment.
As of September 30, 2024, cash and cash equivalents totaled $2.7 million, an increase from $1.5 million at June 30, 2024. This improvement in cash position was primarily a result of the company successfully raising $3.7 million in net proceeds through a private placement in August 2024, providing crucial liquidity.
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