Company: BSFC
Filing Date: 2025-08-19
Form Type: 10-Q
Source: 0001493152-25-012137
Chunk: 5

Company: Blue Star Foods Corp.
Filing Date: 2025-08-19
Form: 10-Q
Item: Part I, Item 2
Chunk 5
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 30, 2025, the Company had a working capital deficit of $1,553,621 and the Company’s
primary sources of liquidity consisted of inventory of $248,995 and accounts receivable of $344,309.

The
Company has historically financed its operations through the cash flow generated from operations, capital investment, notes payable and
a working capital line of credit.

Cash
(Used in) Operating Activities. Cash used in operating activities during the six months ended June 30, 2025 was $188,245 as compared
to cash used in operating activities of $2,639,077 for the six months ended June 30, 2024. The decrease is primarily attributable to
decrease in inventory of $421,973 and decrease in accounts receivable of $319,177, offset by the increase in other current assets of
$2,068,264 and increase in payables and accruals of $611,222 for the six months ended June 30, 2025 compared with the six months ended
June 30, 2024.

Cash
(Used in) Investing Activities. Cash used in investing activities for the six months ended June 30, 2025 was $9,914 as compared to
cash used in investing activities of $57,797 for the six months ended June 30, 2024. The decrease was mainly attributable to a decrease
in the purchases of fixed assets for the six months ended June 30, 2025 compared to the purchases of fixed assets for the six months
ended June 30, 2024.

Cash
Provided by Financing Activities. Cash provided by financing activities for the six months ended June 30, 2025 was $9,162 as compared
to cash provided by financing activities of $2,650,048 for the six months ended June 30, 2024. The decrease is mainly attributable due
to the netted decrease in repayments and proceeds of short-term loans and less proceeds from common stock offering during the six months
ended June 30, 2025.

26

Lind
Global Fund II LP investment

On
May 30, 2023, the Company entered into a securities purchase agreement with Lind pursuant to which the Company issued to Lind a secured,
two-year, interest free convertible promissory note in the principal amount of $1,200,000 (the “Lind Note”) and a warrant
(the “Lind Warrant”) to