Company: BSFC
Filing Date: 2025-06-23
Form Type: 10-K
Source: 0001641172-25-015976
Chunk: 769

Company: Blue Star Foods Corp.
Filing Date: 2025-06-23
Form: 10-K
Item: Item 1C
Chunk 769
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4-03 – Income Statement—Reporting
Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40)

In November 2024, the FASB issued ASU 2024-03, Income Statement—Reporting Comprehensive Income—Expense
Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses. This ASU requires public business entities
to disclose more detailed information about certain costs and expenses in the notes to their financial statements, both in annual and
interim filings. The objective is to provide investors with greater transparency into a company’s expense structure, enabling a better
understanding of performance, assessment of future cash flows, and comparison with other entities. Key provisions include the disaggregation,
in a tabular format, of specific natural expense categories such as purchases of inventory, employee compensation, depreciation, and intangible
asset amortization, within each relevant expense caption on the income statement. The ASU also requires disclosure of the total amount
of selling expenses and a qualitative description of expenses remaining in the “other” category. For public business entities,
the amendments are effective for annual reporting periods beginning after December 15, 2026, and interim reporting periods within annual
reporting periods beginning after December 15, 2027. The Company is currently evaluating the impact of adopting this ASU on its financial
statements and disclosures.

Reverse
Stock Split 

On
May 7, 2024, the Company’s board of directors approved, and on April 30, 2024, at a special meeting of the stockholders, holders
of approximately 62.9% of the Company’s voting power, approved the granting of authority to the Board to amend the Company’s
Certificate of Incorporation to effect a reverse stock split of the issued and outstanding shares of the Company’s common stock,
by a ratio of not less than 1-for-2 and not more than 1-for-50, with the exact ratio to be determined by the Board in its sole discretion.

The
Board determined to effectuate a 1:50 reverse stock split (the “Reverse Stock Split”) and on May 20, 2024 the Company amended
its Certificate of Incorporation to effect the Reverse Stock Split. All shares and per share amounts in the financial statements have
been retrospectively adjusted for all periods presented to reflect the Reverse Stock Split.

Off
Balance Sheet Arrangements

We
currently have no off-balance sheet arrangements.

ITEM