Company: BSFC
Filing Date: 2025-07-15
Form Type: 10-Q
Source: 0001641172-25-019736
Chunk: 9

Company: Blue Star Foods Corp.
Filing Date: 2025-07-15
Form: 10-Q
Item: Part I, Item 1
Chunk 9
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ritex’s outstanding debt is no greater than $325,000. The Company automatically extended the Service Agreement to August 31,
2024 after which it expired. The Company incurred losses of approximately $1.5 million from our Services Agreement with Afritex.

In
connection with the Services Agreement, on February 12, 2024, the Company entered into an Intangibles Assets and Machinery Option to
Purchase Agreement with Afritex (the “Option Agreement”). Pursuant to the Option Agreement, the Company has the option to
purchase Afritex’s intangible assets, machinery and equipment set forth in the Option Agreement for a purchase price of $554,714
for machinery and equipment and 100,000 shares of the Company’s common stock were issued on February 12, 2024 to be held in escrow,
for intangible assets. The Company did not exercise its option to purchase such intangible assets, machinery and equipment.

In
connection with the Services Agreement, on February 1, 2024, AFVFL, a wholly-owned subsidiary of the Company, was incorporated in the
State of Florida for the purpose of purchasing raw materials from Afritex for the preparation of packaged seafood and other inventory
to be sold to various customers in the United States.

     8 

On
May 20, 2024, the Company amended its Certificate of Incorporation to affect a one-for-fifty reverse stock split (“Reverse Stock
Split”), which became effective the same day. All share and per share amounts have been restated for all periods presented to reflect
the Reverse Stock Split.

Note
2. Summary of Significant Accounting Policies

Basis
of Presentation

The
following unaudited interim consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities
and Exchange Commission (“SEC”). Accordingly, such interim financial statements do not include all the information and footnotes
required by accounting principles generally accepted in the United States (“GAAP”) for complete annual financial statements.
The information furnished reflects all adjustments, consisting only of normal recurring items which are, in the opinion of management,
necessary in order to make the financial statements not misleading. The results of operations for the interim periods are not necessarily
indicative of the results to be expected for the full year. The consolidated balance sheet as of December 31, 2024 has been derived from
the Company’s annual financial statements that were audited by our independent registered public accounting firm but does not include
all of