UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT PURSUANT
TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934

Date of report (Date of earliest event reported): May 9, 2013

Jones Soda Co.
(Exact Name of Registrant as Specified in Its Charter)

Washington
(State or Other Jurisdiction of Incorporation)





0-28820

52-2336602

(Commission File Number)

(IRS Employer Identification No.)

 

1000 First Avenue South, Suite 100, Seattle, Washington

98134

(Address of Principal Executive Offices)

(Zip Code)


(206) 624-3357
(Registrant's Telephone Number, Including Area Code)

Not Applicable
(Former Name or Former Address, if Changed Since Last Report)


Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))


Item 2.02. Results of Operations and Financial Condition.

On May 9, 2013, Jones Soda Co. (the "Company") issued a press release announcing its financial results for the first quarter ended March 31, 2013. The press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K.

The Company will host a conference call to discuss the Company's financial results for the first quarter ended March 31, 2013 on  May 9, 2013 at 4:30 p.m. Eastern time. This call will be webcast and can be accessed by visiting our website at www.jonessoda.com or www.jonessoda.com/company/jones-press/webcasts. Investors may also listen to the call via telephone by dialing (719) 325-2455 (confirmation code: 5620989). In addition, a telephone replay will be available by dialing (858) 384-5517 (confirmation code: 5620989) through May 16, 2013, at 11:59 p.m. Eastern Time.

The information in this Current Report in Item 2.02 and Exhibit 99.1 is being furnished to the Securities and Exchange Commission and shall not be deemed “filed” for the purpose of Section 18 of the Securities Exchange Act of 1934, or otherwise subject to the liabilities of that Section, and shall not be incorporated by reference into any registration statement or other document filed pursuant to the Securities Act of 1933, except as shall be expressly set forth by specific reference in such a filing.

 Item 9.01.    Financial Statements and Exhibits.

(d)       Exhibits.

Exhibit No.

Exhibit Description

99.1 Press Release, dated May 9, 2013


SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

JONES SODA CO.

 

Date:

May 9, 2013

By:

/s/ Carrie L. Traner

Carrie L. Traner, Vice President of Finance


Exhibit 99.1

Jones Soda Co. Reports Fiscal 2013 First Quarter Results

Turnaround Plan Delivers 76% Net Loss Improvement

SEATTLE--(BUSINESS WIRE)--May 9, 2013--Jones Soda Co. (the Company) (OTCQB:JSDA), a leader in the premium soda category and known for its unique branding and innovative marketing, today announced results for the first quarter ended March 31, 2013.

Results for the first quarter continue to reflect the efforts of our Turnaround Plan, which was initiated with the change in management in the second half of 2012. As part of this Plan, the Company is focusing its product offerings and areas of market emphasis for the future on a reduced administrative and operating cost structure.

For the first quarter of 2013, the Company achieved a 76% improvement in bottom line performance, reporting a net loss of $399,000, or $(0.01) per share, for the first quarter of 2013, compared to a net loss of $1.7 million, or $(0.05) per share, for the first quarter 2012. Revenues declined 20% to $3.1 million compared to revenue of $3.9 million for the first quarter of 2012 reflecting management's strategy to reallocate resources from certain markets while focusing on key core markets, particularly during the upcoming busier summer selling season.

“The first focus of our Turnaround Plan was cost containment and re-orienting the Company to sustainable operations. Now our attention is turned to the next phase which emphasizes sales structure and distribution strategies that we believe will lead Jones Soda to profitable, growing operations for the long term,” said Jennifer Cue, CEO of Jones Soda Co.

First Quarter Review - Comparison of Quarters Ended March 31, 2013 and 2012


Conference Call

The Company will discuss its results for the quarter ended March 31, 2013 on its scheduled conference call today, May 9, 2013 at 4:30 p.m. Eastern time (1:30 p.m. Pacific time). This call will be webcast and can be accessed by visiting our website at www.jonessoda.com or www.jonessoda.com/company/jones-press/webcasts. Investors may also listen to the call via telephone by dialing (719) 325-2455 (confirmation code: 5620989). In addition, a telephone replay will be available by dialing (858) 384-5517 (confirmation code: 5620989) through May 16, 2013, at 11:59 p.m. Eastern Time.

About Jones Soda Co.

Headquartered in Seattle, Washington, Jones Soda Co.® markets and distributes premium beverages under the Jones® Soda and WhoopAss™ Energy Drink brands and sells through its distribution network, in markets primarily across North America. A leader in the premium soda category, the Company is known for its variety of flavors, highest quality ingredients, including pure cane sugar and innovative labeling technique that incorporates always-changing photos sent in from its consumers. Jones Soda is sold through traditional beverage retailers. For more information, visit www.jonessoda.com or www.myjones.com.

Forward-Looking Statements Disclosure

Certain statements in this press release are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include all passages containing words such as "will," "aims," "anticipates," "becoming," "believes," "continue," "estimates," "expects," "future," "intends," "plans," "predicts," "projects," "targets," or "upcoming". Forward-looking statements also include any other passages that are primarily relevant to expected future events or that can only be evaluated by events that will occur in the future. Forward-looking statements are based on the opinions and estimates of management at the time the statements are made and are subject to certain risks and uncertainties that could cause actual results to differ materially from those anticipated or implied in the forward-looking statements. Factors that could affect the Company's actual results include, among others: its ability to successfully execute on its operating plans for 2013; its ability to maintain and expand distribution arrangements with distributors, independent accounts, retailers or national retail accounts while focusing on core geographic markets; its ability to generate sufficient cash flow from operations; its ability to streamline operations, reduce operating expenses, and reduce and slow its use of cash; its ability to increase revenues and achieve case sales goals on reduced operating expenses; its ability to successfully integrate management changes and reductions in operating expense and personnel; the effect on the market price and liquidity of its common stock and ability to raise capital subsequent to its delisting from The Nasdaq Capital Market and listing on the OTCQB Marketplace; its ability to develop and introduce new products to satisfy customer preferences; its ability to market and distribute brands on a national basis; changes in consumer demand or market acceptance for its products; its ability to increase demand and points of distribution for its products or to successfully innovate new products and product extensions; its ability to maintain relationships with co-packers; its ability to maintain a consistent and cost-effective supply of raw materials; its ability to maintain brand image and product quality; its ability to attract, retain and motivate key personnel; its ability to protect its intellectual property; the impact of future litigation; and the impact of intense competition from other beverage suppliers. More information about factors that potentially could affect the Company's operations or financial results is included in its most recent annual report on Form 10-K for the year ended December 31, 2012, filed with the Securities and Exchange Commission on March 27, 2013, and in its quarterly reports on Form 10-Q filed in 2013. Readers are cautioned not to place undue reliance upon these forward-looking statements that speak only as to the date of this release. Except as required by law, the Company undertakes no obligation to update any forward-looking or other statements in this press release, whether as a result of new information, future events or otherwise.


JONES SODA CO.

CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS

(Unaudited)

 
Three Months Ended March 31,
2013 2012
(In thousands, except share data)
 
Revenue $ 3,087 $ 3,862
Cost of goods sold 2,336   2,814  
Gross profit 751 1,048
Licensing revenue 9 5
Operating expenses:
Promotion and selling 473 1,357
General and administrative 675   1,332  
1,148   2,689  
Loss from operations (388 ) (1,636 )
Other income (expense), net 13   (11 )
Loss before income taxes (375 ) (1,647 )
Income tax expense, net (24 ) (25 )
Net loss $ (399 ) $ (1,672 )
 
Net loss per share - basic and diluted $ (0.01 ) $ (0.05 )
Weighted average basic and diluted common shares outstanding 38,530,416 35,978,771
 

 

Three Months Ended March 31,
Case sale data (288-ounce equivalent): 2013 2012
Finished product cases 225,000 296,000
 
 

JONES SODA CO.

CONDENSED CONSOLIDATED BALANCE SHEETS

 
March 31, 2013 December 31, 2012
(Unaudited)
(In thousands, except share data)
ASSETS
Current assets:
Cash and cash equivalents $ 1,229 $ 1,654
Accounts receivable 1,845 1,742
Inventory 2,864 2,223
Prepaid expenses and other current assets 242   264  
Total current assets 6,180 5,883
Fixed assets 403 497
Other assets 629   640  
Total assets $ 7,212   $ 7,020  
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable $ 1,578 $ 885
Accrued expenses 673 767
Taxes payable 52 45
Other current liabilities 43   54  
Total current liabilities 2,346 1,751
Long-term liabilities — other 445 485
Shareholders’ equity:
Common stock, no par value:
Authorized — 100,000,000; issued and outstanding shares — 38,530,416 and 38,530,416 shares, respectively 52,867 52,867
Additional paid-in capital 7,658 7,590
ccumulated other comprehensive income 419 451
Accumulated deficit (56,523 ) (56,124 )
Total shareholders’ equity 4,421   4,784  
Total liabilities and shareholders’ equity $ 7,212   $ 7,020  

CONTACT:
Jones Soda Co.
Carrie L. Traner, Vice President of Finance, 206-624-3357
ctraner@jonessoda.com