Company: BSFC
Filing Date: 2025-11-12
Form Type: 10-Q
Source: 0001493152-25-021887
Chunk: 26

Company: Blue Star Foods Corp.
Filing Date: 2025-11-12
Form: 10-Q
Item: Part I, Item 1
Chunk 26
---
 Company issued to Diagonal a convertible promissory note in the principal amount of $90,850
with an original issue discount of $11,850
(the “December Diagonal Note”). The December Diagonal
Note has an interest rate of 12%
with a one-time interest payment of $10,902
paid upon issuance and a maturity date of September
15, 2025. The proceeds from the sale of the December
Diagonal Note are for general working capital. Upon the occurrence of an event of default as described in the December Diagonal Note,
the note will become immediately due and payable at a default interest rate of 22%
of the then outstanding principal amount of the note. Additionally, Diagonal will have the right to convert all or any part of the outstanding
and unpaid amount of the December Diagonal Note into shares of the Company’s common stock at a conversion price of 75%
of the market price as described in the note. The Company may not, without Diagonal’s written consent, sell, lease, or otherwise
dispose of any significant portion of its assets except in the ordinary course of business. The Company will reserve a sufficient number
of shares to provide for the issuance of shares upon the full conversion of the December Diagonal Note. For the nine months ended September
30, 2025, the Company made principal payments on the loan totaling $81,329.
The outstanding balance on the loan was $9,521
as of September 30, 2025. Interest expense related to the loan was $10,902 for the nine months ended September 30, 2025.

    17

On
January 28, 2025, the Company issued to Diagonal a convertible promissory note in the principal amount of $149,650
with an original issue discount of $19,650
(the “January Diagonal Note”). The January Diagonal Note has an interest rate of 13%
with a one-time interest payment of $19,454
paid upon issuance and a maturity date of October
30, 2025. The proceeds from the sale of the January Diagonal Note are for general working capital. Upon the occurrence of an
event of default as described in the January Diagonal Note, the note will become immediately due and payable at a default interest
rate of 22%
of the then outstanding principal amount of the note. Additionally, Diagonal will have the right to convert all or any part of the
outstanding and unpaid amount