Company: BSFC
Filing Date: 2025-06-23
Form Type: 10-K
Source: 0001641172-25-015976
Chunk: 666

Company: Blue Star Foods Corp.
Filing Date: 2025-06-23
Form: 10-K
Item: Item 1B
Chunk 666
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 equipment and six
6 to seven years for real property. The Company elected the accounting policy to include both the lease and non-lease components of
its agreements as a single component and accounts for them as a lease.

Lease
liabilities are recognized at the present value of the fixed lease payments using a discount rate based on similarly secured borrowings
available to us. Lease assets are recognized based on the initial present value of the fixed lease payments, reduced by landlord incentives,
plus any direct costs from executing the leases. Lease assets are tested for impairment in the same manner as long-lived assets used
in operations. Leasehold improvements are capitalized at cost and amortized over the lesser of their expected useful life or the lease
term.

When
the Company has the option to extend the lease term, terminate the lease before the contractual expiration date, or purchase the leased
asset, and it is reasonably certain that the Company will exercise the option, it considers these options in determining the classification
and measurement of the lease. Costs associated with operating lease assets are recognized on a straight-line basis within operating expenses
over the term of the lease.

The
table below presents the lease-related assets and liabilities recorded on the balance sheet as of December 31, 2024.

 Schedule
of Lease-related Assets and Liabilities

    December 31,
                                                                                2024 
  
    Assets 

    Operating lease assets 
    $84,145 

    Liabilities 

    Current 
    $35,688 
  
    Operating lease liabilities 

    Noncurrent 

    Operating lease liabilities 
    $48,457 

Supplemental
cash flow information related to leases were as follows:

 Schedule
of Supplemental Cash Flow Information Related to Leases

    Year Ended
                                                                                December 31,
                                                                                2024 
  
    Cash used in operating activities: 

    Operating leases 
    $40,869 
  
    ROU assets recognized in exchange for lease obligations: 

    Operating leases 
    $- 

The
table below presents the remaining lease term and discount rates for operating leases.

 Schedule
of Remaining Lease Term and Discount Rates for Operating Leases

    December 31, 2024 
  
    Weighted-average remaining lease term 

    Operating leases 
     2.25 years 
  
    Weighted-average discount rate 

    Operating leases 
     7.3%

    F-15

Maturities
of lease liabilities as of December