Company: BSFC
Filing Date: 2025-06-23
Form Type: 10-K
Source: 0001641172-25-015976
Chunk: 1860

Company: Blue Star Foods Corp.
Filing Date: 2025-06-23
Form: 10-K
Item: Item 8
Chunk 1860
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 economic foreign currency exchange risks faced by, its operations and realized when
the Company exchanges one currency for another. The Company’s operations primarily utilize the U.S. dollar and Canadian dollar
as its functional currencies. Movements in foreign currency exchange rates affect its financial statements.

The
assets and liabilities held by TOBC have a functional currency other than the U.S. Dollar. The TOBC results were translated into U.S.
Dollars at exchange rates in effect at the end of each reporting period. TOBC’s revenue and expenses were translated into U.S.
Dollars at the average rates that prevailed during the period. The rate used in the financial statements for TOBC as presented for December
31, 2024 was 0.70 Canadian Dollars to U.S. Dollars and for December 31, 2023 was 0.74 Canadian Dollars to U.S. Dollars. The resulting
net translation gains and losses are reported as foreign currency translation adjustments in stockholders’ equity as a component
of comprehensive (loss) income. The Company recorded foreign currency translation adjustment of approximately $185,169 and $55,900 for
the years ended December 31, 2024 and December 31, 2023, respectively.

Revenue
Recognition

The
Company recognizes revenue in accordance with Accounting Standards Codification (ASC) 606, Revenue from Contracts with Customers, as
such, we record revenue when our customer obtains control of the promised goods or services in an amount that reflects the consideration
which the Company expects to receive in exchange for those goods or services. The Company’s source of revenue is from importing
blue and red swimming crab meat primarily from India, Brazil, Indonesia, and Peru and distributing it in the United States
and Canada under several brand names such as Blue Star, Oceanica, Pacifika, Crab & Go, First Choice, Good Stuff and Coastal Pride
Fresh and steelhead salmon and rainbow trout fingerlings produced by TOBC under the brand name Little Cedar Farms for distribution in
Canada. We sell primarily to food service distributors. The Company also sells its products to wholesalers, retail establishments and
seafood distributors.

To
determine revenue recognition for the arrangements that the Company determines are within the scope of Topic 606, the Company performs
the following five steps: (1) identify the contract(s) with a customer by receipt of purchase orders and confirmations sent by the Company
which includes a required line of credit approval process, (2) identify the performance obligations in the contract