Company: BSFC
Filing Date: 2025-06-23
Form Type: 10-K
Source: 0001641172-25-015976
Chunk: 671

Company: Blue Star Foods Corp.
Filing Date: 2025-06-23
Form: 10-K
Item: Item 1B
Chunk 671
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 expenses in connection with
product sold to Strike the Gold of $210,354. A full valuation allowance was also recognized for the advances while the recognition of the sales was deferred
until the consideration is collected.

Income
Taxes

The
Company accounts for income taxes utilizing the liability method, where deferred tax assets and liabilities are determined based on the
expected future tax consequences of temporary differences between the carrying amounts of assets and liabilities for financial and income
tax reporting purposes, using enacted statutory tax rates in effect for the year in which the differences are expected to reverse. The
effects of future changes in tax laws or rates are not included in the measurement. Income tax expense is the total of the current year
income tax due and the change in deferred tax assets and liabilities. Deferred tax assets and liabilities are the expected future tax
amounts for the temporary differences between carrying amounts and tax bases of assets and liabilities, computed using enacted tax rates.
A valuation allowance, if needed, reduces deferred tax assets to the amount expected to be realized. As changes in tax laws or rates
are enacted, deferred tax assets and liabilities are adjusted through the provision for income taxes.

A
tax position is recognized as a benefit only if it is “more likely than not” that the tax position would be sustained in
a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is
greater than 50% likely of being realized on examination. For tax positions not meeting the “more likely than not” test,
no tax benefit is recorded.

The
Company’s policy is to recognize interest and penalties on uncertain tax positions in “Income tax expense” in the Consolidated
Statements of Operations. There were no amounts related to interest and penalties recognized for the years ended December 31, 2024 or
2023.

    F-18

Recent
Accounting Pronouncements

Segment Information 

In November 2023, the FASB issued ASU 2023-07,
Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. This ASU enhances existing segment reporting
requirements by requiring public entities to disclose more detailed information about a reportable segment’s expenses.
Specifically, it introduces a new requirement to disclose significant segment expense categories and amounts that are regularly
provided to the chief operating decision maker (“CODM”) and included in the reported measure of segment profit or loss.
The ASU also extends certain annual segment disclosures to interim periods and clarifies that public