Company: BSFC
Filing Date: 2025-03-05
Form Type: S-1
Source: 0001493152-25-009166
Chunk: 161

Company: Blue Star Foods Corp.
Filing Date: 2025-03-05
Form: S-1
Chunk 161
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 for $ 1,500per month.

The offices and facility of TOBC are located in Nanaimo, British Columbia, Canada and are on land which was leased to TOBC for approximately $ 2,500per month plus taxes, from Steve and Janet Atkinson, the former TOBC owners. On April 1, 2022, TOBC entered into a new five-year lease with Steve and Janet Atkinson for CAD$ 2,590per month plus taxes, and an additional five-year lease with Kathryn Atkinson for CAD$ 2,370per month plus. Both leases are renewable for two additional five-year terms.

Rental and equipment lease expenses were approximately $ 166,000and $ 168,000for the years ended December 31, 2023 and 2022, respectively.

Legal

The Company has reached a settlement agreement with a former employee. Although the agreement is not finalized the Company has reserved $ 70,000, representing the entire amount of the settlement.

Note 14. Employee Benefit Plan

The Company provides and sponsors a 401(k) plan for its employees. For the years ended December 31, 2023 and 2022, no contributions were made to the plan by the Company.

Note 15. Subsequent Events

In order to refinance interest due on the June 14, 2023 note issued to Agile, on January 2, 2024, the Company, and Keeler & Co. entered into a subordinated business loan and security agreement with Agile and Agile Capital as collateral agent, which provides for a term loan to the Company in the amount of $ 122,491which principal and interest (of $ 48,996) is due on May 31, 2024. Commencing January 5, 2024, the Company is required to make weekly payments of $ 7,795until the due date. The loan may be prepaid subject to a prepayment fee. An administrative agent fee of $ 5,833was paid on the loan. A default interest rate of 5% will become effective upon the occurrence of an event of default. In connection with the loan, Agile was issued a subordinated secured promissory note, dated January 2, 2024, in the principal amount of $ 122,491which note is secured by all of the Borrower’s assets, including receivables.

ClearThink Term Loan

On January 18, 2024, the Company entered into