Company: BSFC
Filing Date: 2025-06-23
Form Type: 10-K
Source: 0001641172-25-015976
Chunk: 663

Company: Blue Star Foods Corp.
Filing Date: 2025-06-23
Form: 10-K
Item: Item 1B
Chunk 663
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     (1,417,305) 
     (176,000)
  
    Inventory, net 
    $447,760  
    $2,608,521 

Advances
to Suppliers and Related Party

In
the normal course of business, the Company may advance payments to its suppliers, including Bacolod, a related party. These advances
are in the form of prepayments for products that will ship within a short window of time. In the event that it becomes necessary for
the Company to return products or adjust for quality issues, the Company is issued a credit by the vendor in the normal course of business
and these credits are also reflected against future shipments.

As
of December 31, 2023, the balance due from Bacolod for future shipments was approximately $1,300,000.
During the year ended December 31, 2024, the Company determined it was appropriate to record an allowance for the full balance due from
Bacolod. No new purchases have been made from Bacolod since November 2020. There was no
cost of revenue related to inventories purchased from Bacolod
recorded for the years ended December 31, 2024 and 2023.

Fixed
Assets

Fixed
assets are stated at cost less accumulated depreciation and are being depreciated using the straight-line method over the estimated useful
life of the asset as follows:

 Schedule of Estimated Usefule Life of Assets

    RAS System 
    10 years
  
    Furniture and fixtures 
    7 to 10 years
  
    Computer equipment 
    5 years
  
    Warehouse and refrigeration equipment 
    10 years
  
    Leasehold improvements 
    7 years
  
    Automobile 
    5 years
  
    Trade show booth 
    7 years

The
RAS system is comprised of tanks, plumbing, pumps, controls, hatchery, tools and other equipment all working together for the TOBC facility.

Leasehold
improvements are amortized using the straight-line method over the shorter of the expected life of the improvement or the remaining lease
term.

The
Company capitalizes expenditures for major improvements and additions and expenses those items which do not improve or extend the useful
life of the fixed assets.

The
Company reviews fixed assets for recoverability if events or changes in circumstances indicate the assets may be impaired. No impairment
was recorded related to fixed assets as of December 31, 2024 and