Company: BSFC
Filing Date: 2025-06-23
Form Type: 10-K
Source: 0001641172-25-015976
Chunk: 630

Company: Blue Star Foods Corp.
Filing Date: 2025-06-23
Form: 10-K
Item: Item 1B
Chunk 630
---
31, 2024. The decrease
in working capital was due primarily to decreases of inventory of $2,160,761 and accounts receivable of $184,554 netted against the decreases
in the stockholder loans of $165,620 and increase of short-term debt of $472,760.

The
Company has historically financed its operations through the cash flow generated from operations, loans from stockholders and other related
parties as well as a working capital line of credit and the sale of equity in private offerings.

Cash
(Used in) Operating Activities. Cash used in operating activities during the year ended December 31, 2024 was $6,195,893 as compared
to cash used in operating activities of $3,530,662 for the year ended December 31, 2023, representing an increase of $2,665,231. The
increase is primarily attributable to a decrease in inventory of $1,104,175 netted against the decreases in customer refunds of $323,051,
accounts receivable netted against other current assets of $488,612 and increase in payables netted against allowance for advances to
affiliated suppliers of $2,059,616 for the year ended December 31, 2024.

33

Cash
(Used in) Investing Activities. Cash used in investing activities for the year ended December 31, 2024 was $101,736 as compared
to $159,609 cash used in investing activities for the year ended December 31, 2023. The decrease was a result of less fixed asset
purchases during the year ended December 31, 2024 compared to the year ended December 31, 2023.

Cash
Provided by Financing Activities. Cash provided by financing activities for the year ended December 31, 2024 was $6,417,872 as compared
to cash provided by financing activities of $3,676,355 for the year ended December 31, 2023. This increase is mainly attributable to
proceeds from common stock offerings and proceeds from short-term loans.

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