Company: BSFC
Filing Date: 2025-06-23
Form Type: 10-K
Source: 0001641172-25-015976
Chunk: 545

Company: Blue Star Foods Corp.
Filing Date: 2025-06-23
Form: 10-K
Item: Item 1A
Chunk 545
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,000
of the balance was related to prepaid inventory to the Company’s suppliers and prepaid legal fees, respectively. The remainder
of the balance was related to prepaid insurance and other prepaid expenses.

Note
6. Fixed Assets, Net

Fixed
assets comprised the following at December 31:

 Schedule
of Fixed Assets

    2024  
    2023 
  
    Computer equipment 
    $55,346  
    $47,908 
  
    RAS system 
     -  
     140,214 
  
    Automobiles 
     94,298  
     - 
  
    Leasehold improvements 
     17,904  
     17,904 
  
    Building improvements 
     -  
     136,653 
  
    Total 
     167,548  
     342,679 
  
    Fixed assets, gross 
     167,548  
     342,679 

    Less: Accumulated depreciation and impairment 
     (44,688) 
     (38,822)
  
    Fixed assets, net 
    $122,860  
    $303,857 

During the year ended December 31, 2024, the Company wrote off building
improvements and RAS system improvements with a total carrying amount of $276,867 as they were determined to be no longer useful.

For
the years ended December 31, 2024 and 2023, depreciation expense totaled approximately $5,900 and $4,500, respectively.

Note
7. Debt and Derivatives 

Working
Capital Line of Credit

On
March 31, 2021, Keeler & Co. and Coastal Pride entered into a loan and security agreement (“Loan Agreement”) with Lighthouse
Financial Corp., a North Carolina corporation (“Lighthouse”). Pursuant to the terms of the Loan Agreement, Lighthouse made
available to Keeler & Co. and Coastal Pride (together, the “Borrowers”) a $5,000,000 revolving line of credit for a term
of thirty-six months, renewable annually for one-year periods thereafter. Amounts due under the line of credit were evidenced by a revolving
credit note issued to Lighthouse by the Borrowers.

The
advance rate of the revolving line of credit was 85% with respect to eligible accounts receivable and the lower of 60% of the Borrowers’
eligible inventory, or