Company: BSFC
Filing Date: 2025-02-10
Form Type: POS AM
Source: 0001493152-25-005479
Chunk: 176

Company: Blue Star Foods Corp.
Filing Date: 2025-02-10
Form: POS AM
Chunk 176
---
 3 measurements are based on unobservable data that are supported by little or no market activity and are significant to the fair value of the assets or liabilities.

Our financial instruments include cash, accounts receivable, accounts payable, accrued expenses, debt obligations, derivative liabilities and warrant liabilities. We believe the carrying values of our cash, accounts receivable, accounts payable, and accrued expenses approximate their fair values because they are short term in nature or payable on demand. The derivative liability is the embedded conversion feature on the 2023 Lind convertible note. All derivatives and warrant liabilities are recorded at fair value. The change in fair value for derivatives and warrants liabilities is recognized in earnings. The Company’s derivative and warrant liabilities are measured at fair value on a recurring basis using the Black Scholes Pricing model as of September 30, 2024 and December 31, 2023. There were no financial assets and liabilities that were measured at fair value on a recurring basis under Levels 1 and 2.

Schedule of Derivative and Warrant Liabilities Measured at Fair Value

|                                     |     | Level        
 3 Fair Value |                    As 
 of September 30, 2024 |     |   |                   As 
 of December 31, 2023 |
|:------------------------------------|:----|:-------------|----------------------:|:----|:--|---------------------:|
| Liabilities                         |     |              |                       |     |   |                      |
| Derivative liability on convertible 
 debt                                |     | $            |               231,629 |     | $ |            1,047,049 |
| Warrant liability                   |     |              |                     - |     |   |                1,574 |
| Total                               |     | $            |               231,629 |     | $ |            1,048,623 |

The table below presents the change in the fair value of the derivative liability convertible debt and warrant liability during the nine months ended September 30, 2024:

Schedule of Change in Fair Value of Derivative Liability Convertible Debt and Warrant Liability

| Derivative liability balance, January 1, 2024    |     | $ |  1,047,049 |   |
| Issuance of derivative liability during the      
 period                                           |     |   |          - |   |
| Settlement of derivative liability               |     |   | (1,027,674 | ) |
| Change in fair value of derivative liability     
 during the