Company: BSFC
Filing Date: 2025-07-15
Form Type: 10-Q
Source: 0001641172-25-019736
Chunk: 38

Company: Blue Star Foods Corp.
Filing Date: 2025-07-15
Form: 10-Q
Item: Part I, Item 1
Chunk 38
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420,000 which note is secured by all of the Borrowers’ assets, including
receivables. For the three months ended March 31, 2025, the Company made principal payments on the loan totaling $129,000 and
no interest payments were made. The outstanding balance on the loan was $291,000 as of March 31, 2025.

 26 

1800
Diagonal Notes

On
September 9, 2024, the Company issued to Diagonal a convertible promissory note in the principal amount of $179,400 with an original
issue discount of $23,400 (the “September Diagonal Note”). The September Diagonal Note has an interest rate of 13% with
a one-time interest payment of $23,322 paid upon issuance and a maturity date of June 15, 2025. The proceeds from the sale of the
September Diagonal Note are for general working capital. Upon the occurrence of an event of default as described in the September
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 September Diagonal Note into shares of the Company’s common stock at a conversion price of 65% 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 September Diagonal Note. The Company is required to make
monthly payments starting March 15, 2025, until the due date of June 15, 2025. The first payment due March 15, 2025, is $131,769.
The monthly payment for April 15, 2025, May 15, 2025, and June 15, 2025, is $23,651. For the three months ended March 31, 2025, the
Company made principal payments on the loan totaling $146,769 of which $15,000 was paid through the issuance of an aggregate of
288,101 share of common stock and no interest payments were made. The outstanding balance on the loan was $32,