Company: BSFC
Filing Date: 2025-06-23
Form Type: 10-K
Source: 0001641172-25-015976
Chunk: 1573

Company: Blue Star Foods Corp.
Filing Date: 2025-06-23
Form: 10-K
Item: Item 7
Chunk 1573
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2021, the Company assumed a commercial term loan with First West Credit Union Canada Emergency Business Account
(“CEBA”) in the principal amount of CAD$60,000 in
connection with the acquisition of TOBC. The
loan initially bears no interest and is due on December 31, 2022. Under the amended terms, if no more than 75% of the principal was
repaid by December 31, 2023, the full amount
would convert to a term loan bearing interest at an annual rate of 5.0%,
with interest only monthly payments beginning January 1, 2024, and the full principal due by December 31, 2026. As of December 31,
2024, the outstanding balance on the loan was CAD$60,000.

Interest expense totaled $2,060,718 and $1,771,942 for the year ended December 31, 2024 and 2023, respectively. For
the year ended December 31, 2024, approximately $1,232,500 and $868,900 of the balance was related to amortization on debt discount and
cash paid interest.

Note
8. Stockholders’ Equity

Preferred
Stock

Our
Board of Directors has designated 10,000 shares of preferred stock as “8% Series A Convertible Preferred Stock”. The Series
A Convertible Preferred Stock (“Series A Stock”) has no maturity and is not subject to any sinking fund or redemption and
will remain outstanding indefinitely unless and until converted by the holder or the Company redeems or otherwise repurchases the Series
A Stock.

Dividends.
Cumulative dividends accrue on each share of Series A Stock at the rate of 8% (the “Dividend Rate”) of the purchase price
of $1,000.00 per share, commencing on the date of issuance. Dividends are payable quarterly, when and if declared by the Board, beginning
on September 30, 2018 (each a “Dividend Payment Date”) and are payable in shares of common stock (a “PIK Dividend”)
with such shares being valued at the daily volume weighted average price (“VWAP”) of the common stock for the thirty trading
days immediately prior to each Dividend Payment Date or if not traded or quoted as determined by an independent appraiser selected in
good faith by the Company. Any fractional shares of a PIK Dividend will be rounded to the nearest one