Company: BSFC
Filing Date: 2025-08-19
Form Type: 10-Q
Source: 0001493152-25-012137
Chunk: 55

Company: Blue Star Foods Corp.
Filing Date: 2025-08-19
Form: 10-Q
Item: Part I, Item 1
Chunk 55
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topic 220-40)

In
November 2024, the FASB issued ASU 2024-03, Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures
(Subtopic 220-40): Disaggregation of Income Statement Expenses. This ASU requires public business entities to disclose more detailed
information about certain costs and expenses in the notes to their financial statements, both in annual and interim filings. The objective
is to provide investors with greater transparency into a company’s expense structure, enabling a better understanding of performance,
assessment of future cash flows, and comparison with other entities. Key provisions include the disaggregation, in a tabular format,
of specific natural expense categories such as purchases of inventory, employee compensation, depreciation, and intangible asset amortization,
within each relevant expense caption on the income statement. The ASU also requires disclosure of the total amount of selling expenses
and a qualitative description of expenses remaining in the “other” category. For public business entities, the amendments
are effective for annual reporting periods beginning after December 15, 2026, and interim reporting periods within annual reporting periods
beginning after December 15, 2027. The Company is currently evaluating the impact of adopting this ASU on its financial statements and
disclosures.

Note
3. Going Concern

The
accompanying consolidated financial statements and notes have been prepared assuming the Company will continue as a going concern. For
the six months ended June 30, 2025, the Company incurred a net loss of $1,851,748, had an accumulated deficit of $48,140,967 and a working
capital deficit of $1,553,621. These factors raise substantial doubt as to the Company’s ability to continue as a going concern.
The Company’s ability to continue as a going concern is dependent upon the Company’s ability to increase revenues, execute
on its business plan to acquire complimentary companies, raise capital, and to continue to sustain adequate working capital to finance
its operations. The failure to achieve the necessary levels of profitability and cash flows would be detrimental to the Company. The
consolidated financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going
concern.

Note
4. Other Current Assets

Other
current assets totaled $565,272
as of June 30, 2025 and $1,109,494
as of December 31, 2024. As of June 30