Company: BSFC
Filing Date: 2025-11-12
Form Type: 10-Q
Source: 0001493152-25-021887
Chunk: 49

Company: Blue Star Foods Corp.
Filing Date: 2025-11-12
Form: 10-Q
Item: Part I, Item 1
Chunk 49
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 maturity date of June 30, 2025. The proceeds from the sale of the October Diagonal
Note are for general working capital. Upon the occurrence of an event of default as described in the October Diagonal Note, the note
will become immediately due and payable at a default interest rate of 22% of the then outstanding principal amount of the note. Additionally,
Diagonal will have the right to convert all or any part of the outstanding and unpaid amount of the October Diagonal Note into shares
of the Company’s common stock at a conversion price of 75% of the market price as described in the note. The Company may not, without
Diagonal’s written consent, sell, lease, or otherwise dispose of any significant portion of its assets except in the ordinary course
of business. The Company will reserve a sufficient number of shares to provide for the issuance of shares upon the full conversion of
the October Diagonal Note. For the nine months ended September 30, 2025, the Company made principal payments on the loan totaling $81,267
and interest payments of $9,752. The outstanding balance on the loan was $0 as of September 30, 2025.

On
December 16, 2024, the Company issued to Diagonal a convertible promissory note in the principal amount of $90,850 with an original issue
discount of $11,850 (the “December Diagonal Note”). The December Diagonal Note has an interest rate of 12% with a one-time
interest payment of $10,902 paid upon issuance and a maturity date of September 15, 2025. The proceeds from the sale of the December
Diagonal Note are for general working capital. Upon the occurrence of an event of default as described in the December Diagonal Note,
the note will become immediately due and payable at a default interest rate of 22% of the then outstanding principal amount of the note.
Additionally, Diagonal will have the right to convert all or any part of the outstanding and unpaid amount of the December Diagonal Note
into shares of the Company’s common stock at a conversion price of 75% of the market price as described in the note. The Company
may not, without Diagonal’s written consent, sell, lease, or otherwise dispose of any significant portion of its assets except
in the ordinary course of business. The Company will reserve a sufficient number of shares to provide for the issuance of shares upon
the full conversion of the December