Company: BSFC
Filing Date: 2025-06-23
Form Type: 10-K
Source: 0001641172-25-015976
Chunk: 1304

Company: Blue Star Foods Corp.
Filing Date: 2025-06-23
Form: 10-K
Item: Item 5
Chunk 1304
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 accordance with ASC 718, “Compensation-Stock Compensation”. ASC 718 requires
companies to measure the cost of services received in exchange for an award of equity instruments, including stock options, based on
the grant-date fair value of the award and to recognize it as compensation expense over the period the individual is required to provide
service in exchange for the award, usually the vesting period. The Company accounts for forfeitures as they occur.

Related
Parties

The
Company accounts for related party transactions in accordance with ASC 850 (“Related Party Disclosures”). A party is considered
to be related to the Company if the party directly or indirectly or through one or more intermediaries, controls, is controlled by, or
is under common control with the Company. Related parties also include principal owners of the Company, its management, members of the
immediate families of principal owners of the Company and its management and other parties with which the Company may deal if one party
controls or can significantly influence the management or operating policies of the other to an extent that one of the transacting parties
might be prevented from fully pursuing its own separate interests. A party which can significantly influence the management or operating
policies of the transacting parties or if it has an ownership interest in one of the transacting parties and can significantly influence
the other to an extent that one or more of the transacting parties might be prevented from fully pursuing its own separate interests
is also a related party.

As
of December 31, 2024, and 2023, there was approximately $8,300 and $83,000, respectively, in interest paid to related parties notes payable.

As of December
31, 2024, the Company had outstanding advances of $72,300 to Sustainable Seafood Philippines, a related party, in connection with the planned acquisition of Bacolod’s assets, which will be carried out by Sustainable Seafood Philippines. The Company recorded a full valuation allowance on these advances due to uncertainty regarding collectability.

During the year ended December 31,
2024, the Company recognized a full valuation allowance on its long-term receivable of $435,540
with Strike the Gold Foods Limited (“Strike the Gold”), a related party, due to uncertainty regarding its
collectability. During the year ended December 31, 2024, the Company advanced $37,500 for shipment expenses in connection with
product sold to Strike the Gold of $210,354. A full valuation allowance was also recognized for