Company: BSFC
Filing Date: 2025-07-15
Form Type: 10-Q
Source: 0001641172-25-019736
Chunk: 12

Company: Blue Star Foods Corp.
Filing Date: 2025-07-15
Form: 10-Q
Item: Part I, Item 1
Chunk 12
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 discounts of $39,000 and refund liability of $57,000. There was no allowance for bad debt recorded
for the year ended December 31, 2024.

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 and raw materials for packaged seafood and other inventory
from AFVFL. The cost of inventory is primarily determined using the specific identification method for crab meat and raw materials for
packaged seafood inventory. 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 raw materials for packaged
seafood inventory 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 on a cost and freight shipping point basis, and
it becomes the Company’s asset and liability upon leaving the suppliers’ warehouse.

     10 

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. For
the three months ended March 31, 2025, the Company recorded an inventory allowance of $1,398,927. For the year ended December 31, 2024,
the Company recorded an inventory allowance in the amount of $1,417,305 which was charged to cost of goods sold.

The
Company’s inventory as of March 31, 2025 and December 31, 2024 consists of:

 Schedule
of Inventory

    March 31, 2025  
    December 31, 2024 

    Inventory purchased for resale 
    $1,640,581  
    $1,644,085 
  
    Feeds and eggs processed 
     69,223  
     65,924 
  
    Raw materials for packaged seafood 
     31,948  
     155,056 
  
    Less: Inventory allowance 
     (1,398,927)