Company: BSFC
Filing Date: 2025-06-23
Form Type: 10-K
Source: 0001641172-25-015976
Chunk: 796

Company: Blue Star Foods Corp.
Filing Date: 2025-06-23
Form: 10-K
Item: Item 1C
Chunk 796
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The
loss of any major supplier could have a material adverse impact on the Company’s results of operations, cash flows and financial
position.

    F-16

Fair
Value Measurements and Financial Instruments

Fair
value is defined as the amount that would be received for selling an asset or paid to transfer a liability in an orderly transaction
between market participants at the measurement date and is measured using inputs in one of the following three categories:

Level
1 measurements are based on unadjusted quoted prices in active markets for identical assets or liabilities that we have the ability to
access. Valuation of these items does not entail a significant amount of judgment.

Level
2 measurements are based on quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar
assets or liabilities in markets that are not active or market data other than quoted prices that are observable for the assets or liabilities.

Level
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.

The
Company’s financial instruments include cash, accounts receivable, accounts payable, accrued expenses, debt obligations, derivative
liabilities and warrant liabilities. The Company believes the carrying values of 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 as of December 31, 2024 and 2023.

Schedule
of Derivative and Warrant Liabilities Measured at Fair Value

    Fair Value  
    Level 1  
    Level 2  
    Level 3 

    December 31, 2024 

    Fair Value Measurement using Fair Value Hierarchy 

    Fair Value  
    Level 1  
    Level 2  
    Level 3 
  
    Liabilities 

    Derivative liability on convertible debt 
    $49,565  
    $   -  
    $ -  
    $49,565 
  
    Total 
    $49,565  
    $-  
    $-  
    $49,565 

    Fair Value  
    Level