Company: BSFC
Filing Date: 2025-08-19
Form Type: 10-Q
Source: 0001493152-25-012137
Chunk: 48

Company: Blue Star Foods Corp.
Filing Date: 2025-08-19
Form: 10-Q
Item: Part I, Item 1
Chunk 48
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 allowance for the full balance due from Bacolod.
No new purchases have been made from Bacolod since November 2020. There was no cost of revenue related to inventories purchased from
Bacolod recorded for the six months ended June 30, 2025 and 2024.

As of June 30, 2025, the Company made payments to John Keeler for an unsecured promissory note which has already
been paid off in the year 2024. These payments exceeded the amount owed under the note, resulting in an overpayment of approximately $110,000
as advance to related party. Management is evaluating the appropriate method for recovery or settlement of the overpaid amount.

Revenue
Recognition

The
Company recognizes revenue in accordance with Accounting Standards Codification (ASC) 606, Revenue from Contracts with Customers, as
such, we record revenue when our customer obtains control of the promised goods or services in an amount that reflects the consideration
which the Company expects to receive in exchange for those goods or services. The Company’s source of revenue is from importing
blue and red swimming crab meat primarily from South East Asia and distributing it in the United States and Canada under several brand
names such as Blue Star, Oceanica, Pacifika, Crab & Go, First Choice, Good Stuff and Coastal Pride Fresh, and steelhead salmon and
rainbow trout fingerlings produced under the brand name Little Cedar Farms for distribution in Canada. We sell primarily to food service
distributors. The Company also sells its products to wholesalers, retail establishments and seafood distributors.

    9

To
determine revenue recognition for the arrangements that the Company determines are within the scope of Topic 606, the Company performs
the following five steps: (1) identify the contract(s) with a customer by receipt of purchase orders and confirmations sent by the Company
which includes a required line of credit approval process, (2) identify the performance obligations in the contract which includes shipment
of goods to the customer FOB shipping point or destination, (3) determine the transaction price which initiates with the purchase order
received from the customer and confirmation sent by the Company and will include discounts and allowances by customer if any, (4) allocate
the transaction price to the performance obligations in the contract which is the shipment of the goods to the customer and transaction
price determined in step 3 above and (5) recognize revenue when (or as) the entity satisfies a performance obligation which is when the