Company: BSFC
Filing Date: 2025-06-23
Form Type: 10-K
Source: 0001641172-25-015976
Chunk: 908

Company: Blue Star Foods Corp.
Filing Date: 2025-06-23
Form: 10-K
Item: Item 2
Chunk 908
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 Agreement”) with Afritex Ventures, Inc. a Texas
corporation (“Afritex”), pursuant to which the Company will be responsible for all of Afritex’s operations and
finance functions. The Company will provide Afritex with working capital in order to sustain operations and will purchase certain
inventory listed in the Services Agreement. In consideration for its services, during the term of the Services Agreement, the
Company will earn all of the revenue and profits by the purchase and sale of Afritex’s inventory. Under the Services
Agreement, Afritex may not sell or otherwise use as consideration any of its intellectual property without the Company’s
consent. The Company must maintain certain commercial liability insurance during the term of the Services Agreement. The Services
Agreement also provides that the Company may not solicit Afritex employees for 24 months nor circumvent existing business
relationships of Afritex for three years, after the term of the Services Agreement. The term of the Services Agreement will
automatically extend for three thirty-day periods, if Afritex’s outstanding debt is no greater than $325,000.
The Company automatically extended the Service Agreement to August 31, 2024 after which it expired. The Company incurred losses of approximately $1.5 million from our Services
Agreement with Afritex.

In connection with the Services Agreement,
on February 12, 2024, the Company entered into an Intangibles Assets and Machinery Option to Purchase Agreement with Afritex (the “Option
Agreement”). Pursuant to the Option Agreement, the Company has the option to purchase Afritex’s intangible assets, machinery
and equipment set forth in the Option Agreement for a purchase price of $554,714
for machinery and equipment and 100,000
shares of the Company’s common stock were issued on February 12, 2024 to be held in escrow, for intangible assets. The Company did not exercise its option to purchase such intangible assets, machinery and equipment.

In connection with the Services Agreement, on February 1, 2024, AFVFL,
a wholly-owned subsidiary of the Company, was incorporated in the State of Florida for the purpose of purchasing raw materials from Afritex
for the preparation of packaged seafood and other inventory to be sold to various customers in the United States.

On May 20, 2024, the Company amended
its Certificate of Incorporation to affect a one-for-fifty reverse stock split (“Reverse Stock