Company: BSFC
Filing Date: 2025-02-10
Form Type: POS AM
Source: 0001493152-25-005479
Chunk: 158

Company: Blue Star Foods Corp.
Filing Date: 2025-02-10
Form: POS AM
Chunk 158
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 ) |
| Net                            
 Deferred Tax Asset/(Liability) |     | $ |          - |   |     | $ |          - |   |

Tax periods for all fiscal years after 2019 remain open to examination by the federal and state taxing jurisdictions to which the Company is subject. As of December 31, 2023, the Company has cumulative net federal and state operating losses of $ 14,896,960and $11,456,916, respectively.

ASC 740, “Income Taxes” requires that a valuation allowance be established when it is “more likely than not” that all, or a portion of, deferred tax assets will not be recognized. A review of all available positive and negative evidence needs to be considered, including the scheduled reversal of deferred tax liabilities, projected future taxable income, and tax planning strategies. After consideration of all the information available, management believes that uncertainty exists with respect to future realization of its deferred tax assets and has, therefore, established a full valuation allowance as of December 31, 2023.

As of December 31, 2023, and 2022, the Company has evaluated and concluded that there were no material uncertain tax positions requiring recognition in the Company’s financial statements. The Company’s policy is to classify assessments, if any, for tax related interest as income tax expenses. No interest or penalties were recorded during the years ended December 31, 2023, and 2022.

| F-26 |

Note 13. Commitment and Contingencies

Office lease

On January 1, 2022, the Company entered into a verbal month-to-month lease agreement for its executive offices with an unrelated third party and paid $ 23,200on the lease for the three months ended March 31, 2022. For the year ended December 31, 2023, the Company has paid $ 69,900on this lease.

Coastal Pride leased an aggregate of 1,600square feet of office space in Beaufort, South Carolina under two leases for $ 1,255and $ 750per month. On October 1, 2023, both leases were terminated and Coastal Pride entered into a new one-year office lease for 1,100square feet for $ 1,000per month.

Coastal Pride also leased a 9,050square foot facility for $ 1,000per month from Gault for its soft-shell crab operations in Beaufort, South Carolina under a one