Company: BSFC
Filing Date: 2025-06-23
Form Type: 10-K
Source: 0001641172-25-015976
Chunk: 574

Company: Blue Star Foods Corp.
Filing Date: 2025-06-23
Form: 10-K
Item: Item 1A
Chunk 574
---
  
     3,626,165 
  
    Non-capital
    Losses 
     727,316  
     511,340 
  
    Other 
     99,962  
     83,687 
  
    Net
    Deferred Tax Asset/(Liability) 
     7,298,065  
     4,363,197 
  
    Valuation
    Allowance 
     (7,298,065)  
     (4,363,197)
  
    Net
    Deferred Tax Asset/(Liability) 
    $- 
                                               
    $- 

Tax
periods for all fiscal years after 2020 remain open to examination by the federal and state taxing jurisdictions to which the Company
is subject. As of December 31, 2024, the Company has cumulative net federal and state operating losses of $24,189,098 and $18,368,316,
respectively.

ASC
740, “Income Taxes” requires that a valuation allowance be established when it is “more likely than not” that
all, or a portion of, deferred tax assets will not be recognized. A review of all available positive and negative evidence needs to be
considered, including the scheduled reversal of deferred tax liabilities, projected future taxable income, and tax planning strategies.
After consideration of all the information available, management believes that uncertainty exists with respect to future realization
of its deferred tax assets and has, therefore, established a full valuation allowance as of December 31, 2024.

As
of December 31, 2024, and 2023, the Company has evaluated and concluded that there were no material uncertain tax positions requiring
recognition in the Company’s financial statements. The Company’s policy is to classify assessments, if any, for tax related
interest as income tax expenses. No interest or penalties were recorded during the years ended December 31, 2024, and 2023.

    F-33

Note
12. Commitment and Contingencies

Office
lease

On
January 1, 2022, the Company entered into a verbal month-to-month lease agreement for its executive offices with an unrelated third party
and paid $69,600 on the lease for the year ended December 31, 2023. For the year ended December 31, 2024, the Company has paid $69,600
on this lease.

Coastal Pride leased approximately