Company: BSFC
Filing Date: 2025-11-12
Form Type: 10-Q
Source: 0001493152-25-021887
Chunk: 10

Company: Blue Star Foods Corp.
Filing Date: 2025-11-12
Form: 10-Q
Item: Part I, Item 1
Chunk 10
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”) for complete annual financial statements.
The information furnished reflects all adjustments, consisting only of normal recurring items which are, in the opinion of management,
necessary in order to make the financial statements not misleading. The results of operations for the interim periods are not necessarily
indicative of the results to be expected for the full year. The consolidated balance sheet as of December 31, 2024 has been derived from
the Company’s annual financial statements that were audited by our independent registered public accounting firm but does not include
all of the information and footnotes required for complete annual financial statements. These financial statements should be read in
conjunction with the audited consolidated financial statements and notes thereto which are included in our Annual Report on Form 10-K
for the year ended December 31, 2024 filed with the SEC on June 23, 2025 for a broader discussion of our business and the risks inherent
in such business.

Advances
to Suppliers and Related Party

In
the normal course of business, the Company may advance payments to its suppliers, including of Bacolod Blue Star Export Corp. (“Bacolod”),
a related party based in the Philippines. These advances are in the form of prepayments for products that will ship within a short window
of time. In the event that it becomes necessary for the Company to return products or adjust for quality issues, the Company is issued
a credit by the vendor in the normal course of business and these credits are also reflected against future shipments.

As
of September 30, 2025, and December 31, 2024, the balance due from the related party for future shipments was approximately $1,300,000.
During the year ended December 31, 2024, the Company determined it was appropriate to record an allowance for the full balance due from
Bacolod. No new purchases have been made from Bacolod since November 2020. There was no cost of revenue related to inventories purchased
from Bacolod recorded for the nine months ended September 30, 2025 and 2024.

As
of September 30, 2025, the Company made payments to John Keeler for an unsecured promissory note which has already been paid off in the
year 2024. These payments exceeded the amount owed under the note, resulting in an overpayment of approximately $131,000 as advance to
related party. Management is evaluating the appropriate method for recovery or settlement