Company: BSFC
Filing Date: 2025-06-23
Form Type: 10-K
Source: 0001641172-25-015976
Chunk: 320

Company: Blue Star Foods Corp.
Filing Date: 2025-06-23
Form: 10-K
Item: Item 1
Chunk 320
---
 quantity of the salmon that is harvested by TOBC.

We
sell our products in a highly competitive market. The ability of TOBC to successfully sell its salmon and the price therefor, is highly
dependent on the quality of the salmon. A number of factors can negatively affect the quality of the salmon sold, including the quality
of the broodstock, water conditions in the farm, the food and additives consumed by the fish, population levels in the tanks, and the
amount of time that it takes to bring a fish to harvest, including transportation and processing. Optimal growing conditions cannot always
be assured. Although fish grown in RAS production systems are not subject to the disease and parasite issues that can affect salmon grown
in ocean pens, there is the potential for organisms that are ubiquitous to freshwater environments to become pathogenic if the fish are
subjected to stressful conditions or there is an issue with biomass management.

High
standards for the quality of the product are maintained and if we determine that a harvest has not met such standards, we may be required
to reduce inventory and write down the value of the harvest to reflect net realizable value. Sub-optimal conditions could lead to smaller
harvests and or lower quality fish. Conversely, if we experience better than expected growth rates, we may not be able to process and
bring our fish to market in a timely manner, which may result in overcrowding that can cause negative health impacts and/or require culling
our fish population.

Furthermore,
if our salmon is perceived by the market to be of lower quality than other available sources of salmon or other fish, we may experience
reduced demand for our product and may not be able to sell our products at the prices that we expect or at all.

As
we continue to expand our operations and build new farms, we potentially may face additional challenges with maintaining the quality
of our products. We cannot guarantee that we will not face quality issues in the future, any of which could cause damage to our reputation,
and a loss of consumer confidence in our products, which could have a material adverse effect on our business results and the value of
our brands.

A
shutdown, damage to any of our farms, or lack of availability of power, fuel, oxygen, eggs, water, or other key components needed for
our operations, could result in our prematurely harvesting fish, a loss of a material percentage of our fish in production, a delay in
our commercialization plans, and a material adverse effect on our