Company: BSFC
Filing Date: 2025-08-19
Form Type: 10-Q
Source: 0001493152-25-012137
Chunk: 8

Company: Blue Star Foods Corp.
Filing Date: 2025-08-19
Form: 10-Q
Item: Part I, Item 2
Chunk 8
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 Diagonal will have the right to convert all or any part of the outstanding and unpaid amount of the September Diagonal
Note into shares of the Company’s common stock at a conversion price of 65% of the market price as described in the note. The Company
may not, without Diagonal’s written consent, sell, lease, or otherwise dispose of any significant portion of its assets except
in the ordinary course of business. The Company will reserve a sufficient number of shares to provide for the issuance of shares upon
the full conversion of the September Diagonal Note. The Company is required to make monthly payments starting March 15, 2025, until the
due date of June 15, 2025. The first payment due March 15, 2025, is $131,769. The monthly payment for April 15, 2025, May 15, 2025, and
June 15, 2025, is $23,651. For the six months ended June 30, 2025, the Company made principal payments on the loan totaling $179,041
of which $15,000 was paid through the issuance of an aggregate of 288,101 share of common stock and no interest payments were made. The
outstanding balance on the loan was $359 as of June 30, 2025.

On
October 1, 2024, the Company issued to Diagonal a convertible promissory note in the principal amount of $121,900 with an original issue
discount of $15,900 (the “October Diagonal Note”). The October Diagonal Note has an interest rate of 12% with a one-time
interest payment of $14,628 paid upon issuance and a maturity date of June 30, 2025. The proceeds from the sale of the October Diagonal
Note are for general working capital. Upon the occurrence of an event of default as described in the October Diagonal Note, the note
will become immediately due and payable at a default interest rate of 22% of the then outstanding principal amount of the note. Additionally,
Diagonal will have the right to convert all or any part of the outstanding and unpaid amount of the October Diagonal Note into shares
of the Company’s common stock at a conversion price of 75% of the market price as described in the note. The Company may not, without
Diagonal’s written consent, sell, lease, or otherwise dispose of any significant portion of its assets