With that, I’ll pass the call over to the operator to see if there are any questions from our listeners today. Ranju, over to you.
Q – Unidentified Analyst: Hi, David, I’d first like to state that I appreciate you taking live Q&A. That means a lot to us. Given your background in alcohol, I was curious if Jones Soda is exploring an entry into that space?
David Knight: Hey, Daniel. Look, firstly, I’m really excited about putting the communication channel to our investors and really appreciate your commitment to Jones Soda. Yes. So I’m a beverage guy. I’m really excited at the brand that we have. I think it resonates and plays in that over 21 category. So for instance, Mary Jones is a perfect play to really engage consumers that are looking for the next functional beverages. The team previously has scattered out Spiked Jones as an opportunity. It’s currently on the radar as we build our innovation, but no firm plans yet for next year and beyond. But I do think it’s a space that we should play in.
Unidentified Analyst: Okay. Thank you. I appreciate that, David. And can you share any more insight into, a, very excited about the entry into Canada. Could you share any more insight into further state expansion here in the US for Mary Jones?
David Knight: Yeah, absolutely. We’re excited about Canada, too. As we look through the opportunities of regulated markets, we’re really doing kind of a ground-up assessment of what it takes, what it costs and what our capabilities are. As you’re aware, some of the startup costs in the states are quite expensive depending on the market. And so we’re doing a ground-up evaluation. No decision is made yet, but really focusing on Canada as our first kind of launch for Q1 next year. I would also say that now that we’re in California and we’re in Washington and Michigan will be launched this month, that we’re excited about moving beyond just beverages. So the team is innovating into edibles as well. So currently, the strategy is to go very deep in the markets that we’re in, expand in Canada and then do a state-by-state evaluation of which states we’ll add to the agenda for next year.
Unidentified Analyst: Okay. That makes sense. That’s exciting to hear that we’re getting into edibles and the like. Would you be able to clarify any expectations for a time line getting into edibles and anything additional to Mary Jones?
David Knight: We’re fast-tracking it, Daniel. I would think that by Q1, we should be starting to roll out some of our edibles. So we’re looking at the basics, right? So gummies as a starting point and some other kind of alternatives. We’re doing the candy in Q1 as well. So trust me, we’re fast-tracking it. Again, it’s finding the right partners in each state to produce and we’re excited about the conversations we’re having. So it’s a target right now. We’ll firm it up in our next investor call.
Unidentified Analyst: Okay. Great. Thank you. And then last question I have, sorry to hog your time. I noticed an interview previously, Bob Blair, who I know who’s no longer with the company had mentioned a licensing deal to get into the sparkling water space, leveraging Jones brand and flavor portfolio. Is that something the company is still pursuing?
David Knight: Absolutely. We’re excited about the progress that we’re making. We’re going into concept testing in this quarter just to ensure that we have won the right to succeed there. So the Jones Soda brand, which we’re pretty confident we can. We’re developing a zero-calorie sparkling water and we’re excited about some of the strategic partnership conversations that we’re having. So yes, that’s probably on the top of the list of our innovation agenda for 2024, ’25.
Unidentified Analyst: Fantastic. Thank you, David. I appreciate your time and appreciate the energy that you’re bringing to the company.
David Knight: Daniel, really appreciate you. And yeah, I look forward to getting more questions. The reason that we’re opening up the mic and doing these things live is that I want to be as transparent as I can with the exciting plans that we have going forward. So appreciate you and your support for the team and the company.
Operator: [Operator Instructions] Next question comes from the line of [Pat Lazar] (ph), a private investor. Please go ahead.
Unidentified Analyst: Hi, David, this is [Pat Lazar] (ph). Thanks for taking my call and really appreciate you guys taking calls in general once again. Excited about Mary Jones and we’ve been told that there’s been a — well, obviously, there’s been an effort to grow that. Can you speak a little bit to the quarter-over-quarter 45% drop in sales, if I’ve got that number right, going from about $400,000 in sales last quarter to $220,000 in the most recent quarter?
David Knight: Yes. So let me do a reality check with Joe. Joe, can you just confirm what the overlap on Mary John’s is?
Joe Culp: Yes. So we — so thanks for the question, Pat. Yes, so that’s from — he’s comparing the Q2 number in comparison to Q3 in the California market that did, in fact, come down to $220,000 from $400,000 in Q2 for California.
David Knight: Okay. Hey, Pat, firstly thanks for the question. California is a key market for us, obviously. And we’re dealing with a little bit of pipeline load in Q2, but we’ve got some exciting plans for California as we add to the line, as I mentioned earlier, with edibles, et cetera. And we have also kind of moved our production facility from Tinley over to [indiscernible]. So there are some changes in terms of what we’re doing in California. But again, we’ve got some significant growth opportunity there that we need to focus on. So I appreciate the question.
Operator: Mr. Lazar, are you done with your question?
Unidentified Analyst: Yes, thank you.
Operator: The next question comes from the line of [indiscernible], a private investor. Please go ahead.
Unidentified Analyst: Thank you, David. I appreciate you doing this live now. Very, very transparent. I know the group appreciate it as well. If there’s any comments in regards to the cash balance, I know that it’s just $5.2 million, but with all the initiatives being spoken about, I don’t recall from the beverage industry, but it seems like there is going to be some investments required to open up Canada, very excited with the Tilray partnership to go into the sparkling water business. Just curious in regards to the cash balance and how you guys are feeling about that?
David Knight: Hey, Joe, that sounds like a question for you and then I’ll comment at the end.
