Company: BSFC
Filing Date: 2025-06-23
Form Type: 10-K
Source: 0001641172-25-015976
Chunk: 533

Company: Blue Star Foods Corp.
Filing Date: 2025-06-23
Form: 10-K
Item: Item 1A
Chunk 533
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 and sales return, allowances and discounts. They are stated at estimated net realizable
value. As of December 31, 2024, and 2023, the Company recorded sales return, allowances, discounts and refund liability of approximately
$39,000 and $265,700, respectively. There was no allowance for bad debt recorded during the years ended December 31, 2024 and 2023.

Inventories

Substantially
all of the Company’s inventory consists of packaged crab meat located at a public cold storage facility and merchandise in transit
from suppliers. The Company also has eggs and fish in process inventory from TOBC. The cost of inventory is primarily determined using
the specific identification method for crab meat. Fish in process inventory is measured based on the estimated biomass of fish on hand.
The Company has established a standard procedure to estimate the biomass of fish on hand using counting and sampling techniques. Inventory
is valued at the lower of cost or net realizable value, cost being determined using the first-in, first-out method for crab meat and
using various estimates and assumptions in regard to the calculation of the biomass, including expected yield, market value of the biomass,
and estimated costs of completion.

Merchandise
is purchased cost and freight shipping point and becomes the Company’s asset and liability upon leaving the suppliers’ warehouse.

The
Company periodically reviews the value of items in inventory and records an allowance to reduce the carrying value of inventory to the
lower of cost or net realizable value based on its assessment of market conditions, inventory turnover and current stock levels. Inventory
write-downs are charged to cost of goods sold. For the year ended December 31, 2024, the Company recorded an inventory
adjustment to reduce the carrying value of inventory to the lower of cost or net realizable value in the amount of $286,319 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