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

Company: Blue Star Foods Corp.
Filing Date: 2025-08-19
Form: 10-Q
Item: Part I, Item 2
Chunk 10
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5. The proceeds from the sale of the January Diagonal
Note are for general working capital. Upon the occurrence of an event of default as described in the January Diagonal Note, the note
will become immediately due and payable at a default interest rate of 22% of the then outstanding principal amount of the note. Additionally,
Diagonal will have the right to convert all or any part of the outstanding and unpaid amount of the January Diagonal Note into shares
of the Company’s common stock at a conversion price of 75% of the market price as described in the note. The Company may not, without
Diagonal’s written consent, sell, lease, or otherwise dispose of any significant portion of its assets except in the ordinary course
of business. The Company will reserve a sufficient number of shares to provide for the issuance of shares upon the full conversion of
the January Diagonal Note. The Company is required to make monthly payments starting July 30, 2025, until the due date of October 30, 2025.
The first payment due July 30, 2025, is $109,918. The monthly payment for August 30, 2025, September 30, 2025, and October 30, 2025, is
$19,729. For the six months ended June 30, 2025, the Company made no principal and interest payments. The outstanding
balance on the loan was $149,650, net of discount of $8,733, and totaling $140,917 as of June 30, 2025.

August
2024 Private Placement Offering

In
August, 2024, the Company entered into securities purchase agreements (each a “Securities Purchase Agreement”) with each
of Quick Capital, LLC, a Wyoming limited liability company (“Quick Capital”) and Jefferson Street Capital, LLC, a New Jersey
limited liability company (“Jefferson”) whereby we issued promissory notes in the aggregate principal amount of $550,000
(the “August Private Placement Offering”).

The
Company agreed to issue to Quick Capital and Jefferson up to 39,300 shares of our Common Stock as a “Commitment Fee”.

As
part of the August Private Placement Offering, the Company issued two promissory notes each in the principal amount of $275,000 with
an original issue discount of $25,000 (the “Private Placement Notes”). The Private Placement Notes have a one-time interest
payment of $27,500.