Company: BSFC
Filing Date: 2025-06-23
Form Type: 10-K
Source: 0001641172-25-015976
Chunk: 1420

Company: Blue Star Foods Corp.
Filing Date: 2025-06-23
Form: 10-K
Item: Item 6
Chunk 1420
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 which was
charged to cost of goods sold and an inventory allowance of $1,417,305.

    F-12

The
Company’s inventory as of December 31, 2024 and December 31, 2023 consists of:

 Schedule
of Inventory

    December 31, 2024  
    December 31, 2023 

    Inventory purchased for resale 
    $1,644,085  
    $1,708,311 
  
    Feeds and eggs processed 
     65,924  
     102,373 
  
    Raw materials for packaged seafood 
     155,056  

    In-transit inventory 
     -  
     973,837 
  
    Less: Inventory allowance 
     (1,417,305) 
     (176,000)
  
    Inventory, net 
    $447,760  
    $2,608,521 

Advances
to Suppliers and Related Party

In
the normal course of business, the Company may advance payments to its suppliers, including Bacolod, a related party. 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 December 31, 2023, the balance due from Bacolod 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 years ended December 31, 2024 and 2023.

Fixed
Assets

Fixed
assets are stated at cost less accumulated depreciation and are being depreciated using the straight-line method over the estimated useful
life of the asset as follows:

 Schedule of Estimated Usefule Life of Assets

    RAS System 
    10 years
  
    Furniture and fixtures 
    7 to 10 years
  
    Computer equipment 
    5 years
  
    Warehouse and refrigeration equipment 
    10 years
  
    Leasehold improvements