Company: BSFC
Filing Date: 2025-06-23
Form Type: 10-K
Source: 0001641172-25-015976
Chunk: 1903

Company: Blue Star Foods Corp.
Filing Date: 2025-06-23
Form: 10-K
Item: Item 8
Chunk 1903
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 maintaining adequate internal control over financial reporting. Internal control over
financial reporting is defined in Rule 13a-15(f) or 15d-15(f) promulgated under the Exchange Act as a process designed by, or under the
supervision of, our principal executive and principal financial officers and effected by our board of directors, management and other
personnel, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements
for external purposes in accordance with GAAP and includes those policies and procedures that:

    ●
    Pertain
    to the maintenance of records that in reasonable detail accurately and fairly reflect the transactions and dispositions of our assets;

    ●
    Provide
    reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with
    accounting principles generally accepted in the United States of America and that our receipts and expenditures are being made only
    in accordance with authorizations of our management and board of directors; and

    ●
    Provide
    reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of our assets that
    could have a material effect on the financial statements.

40

Our
management assessed the effectiveness of our internal control over financial reporting, existing as of December 31, 2024, based on
the criteria for effective internal control over financial reporting established in Internal Control—Integrated Framework
(2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission and SEC guidance on conducting such
assessments. Based on that evaluation, we believe that, during the period covered by this Report, such internal controls and
procedures were not effective due to the following material weaknesses identified:

●
inadequate control over the monitoring of inventory maintained in the Company’s
third-party warehouse;

●
ineffective controls over the Company’s financial close and reporting process;

●
inadequate segregation of duties consistent with control objectives, including lack of personnel resources and technical accounting expertise
within the accounting function of the Company, and

● inadequate design and implementation of controls over related party transactions.

Management’s
Remediation Initiatives

In
an effort to remediate the identified material weaknesses and other deficiencies and enhance our internal controls, we plan to further
initiate the following measures, subject to the availability of required resources:

    ●
    We
    plan to create an internal control framework that will address financial close and reporting process, among other procedures; and