Company: BSFC
Filing Date: 2025-02-10
Form Type: POS AM
Source: 0001493152-25-005479
Chunk: 138

Company: Blue Star Foods Corp.
Filing Date: 2025-02-10
Form: POS AM
Chunk 138
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 Relationships – TOBC             |     |                             | 15 |     |      |   592,979 |     |                                         | (592,979   | ) |     |                | - |
| Non-Compete Agreements – Coastal Pride    |     |                             |  3 |     |      |    40,000 |     |                                         | (40,000    | ) |     |                | - |
| Non-Compete Agreements – TOBC             |     |                             |  4 |     |      |   121,845 |     |                                         | (121,845   | ) |     |                | - |
| Total                                     |     |                             |    |     | $    | 3,497,806 |     | $                                       | (3,497,806 | ) |     | $              | - |

For the years ended December 31, 2023 and 2022, amortization expense of intangible assets totaled approximately $ 0and $ 315,000, respectively.

| F-14 |

Note 7. Debt and Derivatives

Debt

Working Capital Line of Credit

On March 31, 2021, Keeler & Co. and Coastal Pride entered into a loan and security agreement (“Loan Agreement”) with Lighthouse Financial Corp., a North Carolina corporation (“Lighthouse”). Pursuant to the terms of the Loan Agreement, Lighthouse made available to Keeler & Co. and Coastal Pride (together, the “Borrowers”) a $ 5,000,000revolving line of credit for a term of thirty-six months, renewable annually for one-year periods thereafter. Amounts due under the line of credit were evidenced by a revolving credit note issued to Lighthouse by the Borrowers.

The advance rate of the revolving line of credit was 85% with respect to eligible accounts receivable and the lower of 60% of the Borrowers’ eligible inventory, or 80% of the net orderly liquidation value, subject to an inventory sublimit of $2,500,000. The inventory portion of the loan could never exceed 50% of the outstanding balance. Interest on the line of credit was the prime rate (with a floor of 3.25%), plus 3.75% which increased to 4.75% in 2022. The Borrowers paid Lighthouse a facility fee of $50,000 in three instalments of $16,667 in March,