Company: BSFC
Filing Date: 2025-11-12
Form Type: 10-Q
Source: 0001493152-25-021887
Chunk: 15

Company: Blue Star Foods Corp.
Filing Date: 2025-11-12
Form: 10-Q
Item: Part I, Item 1
Chunk 15
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 observable for the assets or liabilities.

Level
3 measurements are based on unobservable data that are supported by little or no market activity and are significant to the fair value
of the assets or liabilities.

Our
financial instruments include cash, accounts receivable, accounts payable, accrued expenses, debt obligations, derivative liabilities
and warrant liabilities. We believe the carrying values of our cash, accounts receivable, accounts payable, and accrued expenses approximate
their fair values because they are short term in nature or payable on demand. The derivative liability is the embedded conversion feature
on the 2023 Lind convertible note. All derivatives and warrant liabilities are recorded at fair value. The change in fair value for derivatives
and warrants liabilities is recognized in earnings. The Company’s derivative and warrant liabilities are measured at fair value
on a recurring basis using the Black Scholes Pricing model as of September 30, 2025 and December 31, 2024. There were no financial assets
and liabilities that were measured at fair value on a recurring basis under Levels 1 and 2.

Schedule
of Derivative and Warrant Liabilities Measured at Fair Value 

    Level 3 Fair Value 

    As of
                                                                                September 30, 2025  
    As of
                                                                                December 31, 2024 
  
    Liabilities 

    Derivative liability on convertible debt 
    $         -  
    $49,565 
  
    Total 
    $-  
    $49,565 

    12

The
table below presents the change in the fair value of the derivative liability convertible debt and warrant liability during the nine
months ended September 30, 2024:

Schedule
of Change in Fair Value of Derivative Liability Convertible Debt and Warrant Liability 

    Derivative liability balance, January 1, 2024 
    $1,047,049 
  
    Issuance of derivative liability during the period 
     - 
  
    Settlement of derivative liability 
     (1,027,674)
  
    Change in fair value of derivative liability during the period 
     212,254 
  
    Derivative liability balance, September 30, 2024 
    $231,629 

    Warrant liability balance, January 1, 2024 
    $1,574 
  
    Issuance of warrant liability during the period 
     - 
  
    Change in fair value of warrant liability during the period