Vending

Jones Soda widens loss in Q1 2022 from cannabis expansion despite higher sales

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May 12, 2022

Jones Soda Co. posted a loss against higher sales for Q1 2022 compared to the prior year period, largely on account of costs related to its previously reported expansion into the cannabis business, according to an earnings release. Highlights include:

• Revenue increased 58% from $2.9 million in Q1 2021 to $4.5 million for the quarter ending March 31, 2022, primarily attributable to the growing sales momentum within the retail and alternative sales channels for the core bottled business.
• Net loss increased from $700,000, or 1 cent per share, to $1.7 million, or 2 cents per share, in the comparative quarters, primarily due to the added operating expenses incurred in connection with the development of the company's cannabis products and the hiring of additional personnel to bolster the expanding subsidiary, which totaled approximately $800,000 in the first quarter of 2022.
• As part of the strategic entry into the cannabis sector, the company incurred an increase in stock compensation expenses primarily from the accelerated vesting of its outstanding options in connection with the closing of the transaction with Pinestar Gold Inc.

Shares traded at 23 cents Wednesday against a 52-week range of 22 cents - $1.54.

"Our core bottled business saw meaningful growth across all major sales channels, which drove our strong revenue results this past quarter," Mark Murray, president and CEO, said in the press release.