Company: BSFC
Filing Date: 2025-03-05
Form Type: S-1
Source: 0001493152-25-009166
Chunk: 176

Company: Blue Star Foods Corp.
Filing Date: 2025-03-05
Form: S-1
Chunk 176
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 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 period                                |     |   |    212,254 |   |
| Derivative liability balance, September 30, 2024 |     | $ |    231,629 |   |
| Warrant liability balance, January 1, 2024       |     | $ |