Company: BSFC
Filing Date: 2025-06-23
Form Type: 10-K
Source: 0001641172-25-015976
Chunk: 805

Company: Blue Star Foods Corp.
Filing Date: 2025-06-23
Form: 10-K
Item: Item 1C
Chunk 805
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). The warrant provides for cashless exercise and for full ratchet anti-dilution if
the Company issues securities at less than $4.50 per share (exercise price of $4,500 per share after taking into account the
Company’s Reverse Stock Split). In connection with the issuance of the 2022 Lind Note and the warrant, the Company paid a
$150,000 commitment fee to Lind and $87,144 of debt issuance costs. The Company recorded a total of $2,022,397 debt discount at
issuance of the debt, including original issuance discount of $750,000, commitment fee of $150,000, $87,144 debt issuance cost, and
$1,035,253 related to the fair value of warrants issued. Amortization expense recorded in interest expense totaled $0 and $643,777
for the year ended December 31, 2024 and 2023, respectively. As of December 31, 2024 and December 31, 2023, the unamortized discount
on the 2022 Lind Note was $0, respectively.

    F-20

The
outstanding principal under the 2022 Lind Note is payable commencing July 24, 2022, in 18 consecutive monthly installments of $333,333,
at the Company’s option, in cash or shares of common stock at a price (the “Repayment Share Price”) based on 90% of
the five lowest volume weighted average prices (“VWAP”) during the 20-days prior to the payment date with a floor price of
$1.50 per share (the “Floor Price”) (floor price of $1,500 per share after taking into account the Company’s Reverse
Stock Split), or a combination of cash and stock provided that if at any time the Repayment Share Price is deemed to be the Floor Price,
then in addition to shares, the Company will pay Lind an additional amount in cash as determined pursuant to a formula contained in the
2022 Lind Note.

In
connection with the issuance of the 2022 Lind Note, the Company granted Lind a first priority security interest and lien on all of its
assets, including a pledge of its shares in Keeler & Co., pursuant to a security agreement and a stock pledge agreement with Lind,
dated January 24, 2022 (the “2022 Security Agreement). Each subsidiary of the Company also granted a second priority security interest
in all