Jones Soda (JSDA)

[MisterEC]

From JSDA News: Quarterly Report (10-q) Go to the end.


7 . Our Loan Facility (described below), is available for our working capital needs.

We have a revolving secured credit facility (the “Loan Facility”) with CapitalSource Business Finance Group . The Loan Facility allows us to borrow a maximum aggregate amount of up to $ 3.0 million based on eligible accounts receivable and inventory, plus an additional amount of up to $500,000 in principal advances against purchase orders until March 31, 2016. As of March 31, 2016, our accounts receivable and inventory eligible borrowing base was approximately $ 1.7 million, of which we had drawn down $902,000. During the three months ended March 31, 2016, we made no principal advances against purchase orders resulting in the $500,000 additional purchase order line expiring unused. See Note 3 for further information .

We may require additional financing to support our working capital needs in the future. The amount of additional capital we may require, the timing of our capital needs and the availability of financing to fund those needs will depend on a number of factors, including our strategic initiatives and operating plans, the performance of our business and the market conditions for debt or equity financing. Additionally, the amount of capital required will depend on our ability to meet our case sales goals and otherwise successfully execute our operating plan. We believe it is imperative to meet these sales objectives in order to lessen our reliance on external financing in the future. We intend to continually monitor and adjust our business plan as necessary to respond to developments in our business, our markets and the broader economy. Although we believe various debt and equity financing alternatives will be available to us to support our working capital needs, financing arrangements on acceptable terms may not be available to us when needed. Additionally, these alternatives may require significant cash payments for interest and other costs or could be highly dilutive to our existing shareholders. Any such financing alternatives may not provide us with sufficient funds to meet our long-term capital requirements. If necessary, we may explore strategic transactions that we consider to be in the best interest of the Company and our shareholders, which may include, without limitation, public or private offerings of debt or equity securities, a rights offering, and other strategic alternatives; however, these options may not ultimately be available or feasible.

The uncertainties relating to our ability to successfully execute on our business plan and finance our operations continue to raise substantial doubt about our ability to continue as a going concern.