Company: BSFC
Filing Date: 2025-06-23
Form Type: 10-K
Source: 0001641172-25-015976
Chunk: 1514

Company: Blue Star Foods Corp.
Filing Date: 2025-06-23
Form: 10-K
Item: Item 7
Chunk 1514
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 Diagonal Lending LLC, a Virginia limited liability company (“Diagonal”) a
convertible promissory note in the principal amount of $138,000 with an original issue discount of $23,000 (the “April
Diagonal Note”). The April Diagonal Note has a one-time interest payment of $26,220 paid upon issuance and a maturity date of
January 15, 2025. The proceeds from the sale of the April Diagonal Note are for general working capital. Upon the occurrence of an
event of default as described in the April 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
note into shares of the Company’s common stock at a conversion price of 61% of the market price as described in the First Diagonal
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 First Diagonal Note. During the year ended December 31, 2024, the Company made principal payments
on the loan totaling $138,000 and interest payments of $26,220. The outstanding balance on the loan was $0 as of December 31, 2024.

On September 9, 2024, pursuant to a securities
purchase agreement, the Company issued a convertible promissory note in the principal amount of $179,400 with an original issue
discount of $23,400 (the “September Diagonal Note”). The September Diagonal Note has a one-time interest payment of
$23,322 paid upon issuance and a maturity date of June 15, 2025. The proceeds from the September Diagonal Note are for general
working capital. Upon the occurrence of an event of default as described in the September 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. The September
Diagonal Note has an initial payment of $131,769 due on March 15, 2025, with monthly payments of $23,651 due on the 15th of every
month thereafter until June