Company: BSFC
Filing Date: 2025-06-23
Form Type: 10-K
Source: 0001641172-25-015976
Chunk: 665

Company: Blue Star Foods Corp.
Filing Date: 2025-06-23
Form: 10-K
Item: Item 1B
Chunk 665
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 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 which includes shipment
of goods to the customer at FOB shipping point or destination, (3) determine the transaction price which initiates with the purchase
order received from the customer and confirmation sent by the Company and will include discounts and allowances by customer if any, (4)
allocate the transaction price to the performance obligations in the contract which is the shipment of the goods to the customer and
transaction price determined in step 3 above and (5) recognize revenue when (or as) the entity satisfies a performance obligation which
is when the Company transfers control of the goods to the customers by shipment or delivery of the products.

The
Company elected an accounting policy to treat shipping and handling activities as fulfillment activities. Consideration payable to a
customer is recorded as a reduction of the arrangement’s transaction price, thereby reducing the amount of revenue recognized,
unless the payment is for distinct goods or services received from the customer.

Deferred
Income

The
Company recognizes deferred income for advance payments received from customers for which sales have not yet occurred.

Lease
Accounting

The
Company accounts for its leases under ASC 842, Leases, which requires all leases to be reported on the balance sheet as right-of-use
assets and lease obligations. The Company elected the practical expedients permitted under the transition guidance that retained the
lease classification and initial direct costs for any leases that existed prior to adoption of the standard.

    F-14

The
Company categorizes leases with contractual terms longer than twelve months as either operating or finance. Finance leases are
generally those leases that would allow the Company to substantially utilize or pay for the entire asset over its estimated life.
Assets acquired under finance leases are recorded in property and equipment, net. All other leases are categorized as operating
leases. The Company did not have any finance leases as of December 31, 2023. The Company’s leases generally have terms that
range from three
years for