Company: BSFC
Filing Date: 2025-07-15
Form Type: 10-Q
Source: 0001641172-25-019736
Chunk: 35

Company: Blue Star Foods Corp.
Filing Date: 2025-07-15
Form: 10-Q
Item: Part I, Item 1
Chunk 35
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 ended March 31, 2024. This decrease is attributable
to the fair value measurement for the derivative liability for the three months ended March 31, 2025.

Loss
on Settlement of Debt. Loss on settlement of debt increased to $41,066 for the three months ended March 31, 2025 from $0 for the
three months ended March 31, 2024. The increase is attributable to the Jefferson and Quick Capital payments during the three months ended
March 31, 2025.

Interest
Expense. Interest expense decreased to $208,048 for the three months ended March 31, 2025 from $335,067 for the three months ended
March 31, 2024. The decrease is attributable to the decrease in amortization of debt discount and interest paid and accrued on the notes.

Net
Loss. Net loss was $1,199,930 for the three months ended March 31, 2025 as compared to $1,279,451 for the three months ended March
31, 2024. The decrease in net loss is primarily attributable to the change in fair value of derivative and warrant liabilities and the
interest expense.

 24 

Liquidity
and Capital Resources

The
Company had cash of $23,049 as of March 31, 2025. At March 31, 2025, the Company had a working capital deficit of $687,321 and the Company’s
primary sources of liquidity consisted of inventory of $342,825 and accounts receivable of $455,518.

The
Company has historically financed its operations through the cash flow generated from operations, capital investment, notes payable and
a working capital line of credit.

Cash
(Used in) Operating Activities. Cash used in operating activities during the three months ended March 31, 2025 was $392,550 as
compared to cash used in operating activities of $679,928 for the three months ended March 31, 2024. The decrease is primarily
attributable to decrease in inventory of $571,008, offset by the increase in other current assets of $622,820 and increase in
payables and accruals of $629,617 for the three months ended March 31, 2025 compared with the three months ended March 31,
2024.

Cash
(Used in) Investing Activities. Cash used in investing activities for the three months ended March 31, 2025 was $