Company: BSFC
Filing Date: 2025-06-23
Form Type: 10-K
Source: 0001641172-25-015976
Chunk: 1861

Company: Blue Star Foods Corp.
Filing Date: 2025-06-23
Form: 10-K
Item: Item 8
Chunk 1861
---
 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 equipment and six
6 to seven years for real property. The Company elected the accounting policy to include both the lease and non-lease components of
its agreements as a single component and accounts for them as a lease.

Lease
liabilities are recognized at the present value of the fixed lease payments using a discount rate based on similarly secured borrowings
available to us. Lease assets are recognized based on the initial present value of the fixed lease payments, reduced by landlord incentives,
plus any direct costs from executing the leases. Lease assets are tested for impairment in the same manner as long-lived assets used