Company: BSFC
Filing Date: 2025-06-23
Form Type: 10-K
Source: 0001641172-25-015976
Chunk: 885

Company: Blue Star Foods Corp.
Filing Date: 2025-06-23
Form: 10-K
Item: Item 2
Chunk 885
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4 from a gain of $2,497,088 for the year ended December 31, 2023. This decrease
is attributable to fair value measurement for the derivative liability and warrant liability as of December 31, 2024.

Interest
Expense. Interest expense increased to $2,060,718 for the year ended December 31, 2024 as compared to $1,771,942 for the year ended
December 31, 2023. This increase is mainly attributable to the amortization of convertible debt discount along with interest expense
paid for various note payables.

Net
Loss. The Company had a net loss of $12,478,487 for the year ended December 31, 2024 as compared to a net loss of $4,471,612 for
the year ended December 31, 2023. The increase in net loss is primarily attributable to valuation allowance recorded for the related
party long-term receivable, the valuation allowance for advances to related parties, the loss within AFVFL and the loss from change
in fair values of derivative and warrant liabilities.

Liquidity
and Capital Resources

The
Company had cash of $326,854 as of December 31, 2024. At December 31, 2024, the Company had a working capital deficit of $411,225, as
compared to a working capital surplus of $899,215 at December 31, 2023, including $165,620 in stockholder loans. The Company’s
primary sources of liquidity consisted of inventory of $447,760 and accounts receivable of $349,641 at December 31, 2024. The decrease
in working capital was due primarily to decreases of inventory of $2,160,761 and accounts receivable of $184,554 netted against the decreases
in the stockholder loans of $165,620 and increase of short-term debt of $472,760.

The
Company has historically financed its operations through the cash flow generated from operations, loans from stockholders and other related
parties as well as a working capital line of credit and the sale of equity in private offerings.

Cash
(Used in) Operating Activities. Cash used in operating activities during the year ended December 31, 2024 was $6,195,893 as compared
to cash used in operating activities of $3,530,662 for the year ended December 31, 2023, representing an increase of $2,