While Seattle-based pop producer Jones Soda Co. (OTCQB: JSDA) is reporting a lag in fourth-quarter sales, the firm is still popular with investors as its plans to enter the growing cannabis beverage sector continue to generate excitement.
Late Thursday, the company released its earnings results for the fourth-quarter and fiscal year ended Dec. 31, with annual revenue up 28 per cent to US$14.8 million from US$11.9 million the year before.
It also revealed its Mary Jones weed drink line, which is set to launch in California by the end of the month.
Annual net loss improved by 40 per cent to negative US$1.8 million from negative US$3 million.
Adjusted earnings before interest, taxes, depreciation and amortization improved by 40 per cent to a loss of US$1.3 million from a loss of US$2.6 million. Jones says its adjusted earnings include US$400,000 in cannabis-related expenses in the fourth quarter.
In the last three months of the year, sales fell 37 per cent to US$2.9 million from US$4.6 million in the third quarter.
Quarterly net loss jumped to negative US$1.3 million from negative US$59,000. The company attributed the net loss to added operational expenses related to its entry into the cannabis sector.
Adjusted EBITDA fell to negative US$1.2 million from earnings of US$72,000.
Jones ended the period with cash and cash equivalents of US$4.7 million.
President and CEO Mark Murray called 2021 a “transformative” year for his company, spearheaded by strategic partnerships and rising sales across all channels.
“Subsequent to the end of the year, we announced multiple partnerships with celebrities and companies, including professional boxer Mike Tyson and Wesana Health to launch a line of Nootropic supplements, UFC Women’s Bantamweight Champion Julianna Peña to raise our brand profile, and The ICEE Company as part of our special release program,” he says in a statement.
“Additionally, we are planning to launch our cannabis portfolio by the end of Q1 and expect it will be an immediate hit with consumers as we leverage the strength and community of the Jones Soda brand.”
In an earnings call late Thursday, Jones revealed its Mary Jane brand cannabis drink line.
“Our first market will be California, and we are on track to launch at the end of this month,” Murray said on the call.
“Trademarked under the brand name Mary Jones, we plan to release a variety of products that in addition to a number of cannabis-infused beverages in several sizes and formats, also includes edibles, pre-rolls and fun, unique accessories that could only come from Jones.”
Earlier this week, Jones revealed a deal to sell its fountain syrup at Costco business centres. And in February closed an acquisition of Pinestar Gold Inc. with the intention of entering the Canadian market.
Company stock rose over 7 per cent Thursday to US$0.59 on the OTC Markets Group exchange.