10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended: March 31, 2022

or

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ________________ to ________________

Commission file number: 000-55903

BLUE STAR FOODS CORP.

(Exact name of registrant as specified in its charter)

Delaware	82-4270040
(State or other jurisdiction of incorporation or organization)	(IRS Employer Identification No.)

3000 NW 109th Avenue

Miami, Florida 33172

(Address of principal executive offices)

(860) 633-5565

(Registrant’s telephone number, including area code)

N/A

(Former name, former address and former fiscal year, if changed since last report)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, $0.0001 par value	BSFC	The NASDAQ Stock Market LLC (NASDAQ Capital Market)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	☐	Accelerated filer	☐
Non-accelerated Filer	☒	Smaller reporting company	☒
		Emerging growth company	☒

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

As of May 13, 2022, there were 25,024,974 shares of the registrant’s common stock, par value $0.0001 per share, outstanding.

BLUE STAR FOODS CORP.

FORM 10-Q

FOR THE QUARTERLY PERIOD ENDED MARCH 31, 2021

TABLE OF CONTENTS

		PAGE
PART I - FINANCIAL INFORMATION		4
Item 1.	Financial Statements (Unaudited)	4
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	19
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	25
Item 4.	Controls and Procedures	25
PART II - OTHER INFORMATION		26
Item 1.	Legal Proceedings	26
Item 1A.	Risk Factors	26
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	26
Item 3.	Defaults Upon Senior Securities	27
Item 4.	Mine Safety Disclosures	27
Item 5.	Other Information	27
Item 6.	Exhibits	27
SIGNATURES		28

2

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS

Except for historical information, this report contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”) and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). Such forward-looking statements include, among others, those statements including the words “believes”, “anticipates”, “expects”, “intends”, “estimates”, “plans” and words of similar import. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements.

Forward-looking statements are based on our current expectations and assumptions regarding our business, potential target businesses, the economy and other future conditions. Because forward-looking statements relate to the future, by their nature, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. Our actual results may differ materially from those contemplated by the forward-looking statements. We caution you therefore that you should not rely on any of these forward-looking statements as statements of historical fact or as guarantees or assurances of future performance. Important factors that could cause actual results to differ materially from those in the forward-looking statements include changes in local, regional, national or global political, economic, business, competitive, market (supply and demand) and regulatory conditions and the following:

● Our ability to raise capital when needed and on acceptable terms and conditions;

● Our ability to make acquisitions and integrate acquired businesses into our company;

● Our ability to attract and retain management with experience in the business of importing, packaging and selling of seafood;

● Our ability to negotiate, finalize and maintain economically feasible agreements with suppliers and customers;

● The availability of crab meat and other premium seafood products we sell;

● The intensity of competition;

● Changes in the political and regulatory environment and in business and fiscal conditions in the United States and overseas; and

● The effect of COVID-19 on our operations and the capital markets.

A description of these and other risks and uncertainties that could affect our business appears in the section captioned “Risk Factors” in our Annual Report on Form 10-K which we filed with the Securities and Exchange Commission (“SEC”) on March 31, 2022. The risks and uncertainties described under “Risk Factors” are not exhaustive.

Given these uncertainties, readers of this Quarterly Report on Form 10-Q (“Quarterly Report”) are cautioned not to place undue reliance on such forward-looking statements. We disclaim any obligation to update any such factors or to publicly announce the result of any revisions to any of the forward-looking statements contained herein to reflect future events or developments.

All references in this Quarterly Report to the “Company”, “Blue Star Foods”, “we”, “us”, or “our”, are to Blue Star Foods Corp., a Delaware corporation, and its consolidated subsidiaries, John Keeler & Co., Inc., d/b/a Blue Star Foods, a Florida corporation, and its wholly-owned subsidiary, Coastal Pride Seaford, LLC, a Florida limited liability company (“Coastal Pride”) and Taste of BC Aquafarms, Inc., a corporation formed under the laws of the Province of British Columbia, Canada (“TOBC”).

3

PART I – FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

The accompanying unaudited financial statements have been prepared in accordance with accounting principles generally accepted in the United States and the rules of the SEC, and should be read in conjunction with the audited financial statements and notes thereto contained in our Annual Report, as updated in subsequent filings we have made with the SEC. In the opinion of management, all adjustments, consisting of normal recurring adjustments, necessary for a fair presentation of financial position and the results of operations for the periods presented have been reflected herein. The results of operations for the periods presented are not necessarily indicative of the results to be expected for the full year.

Blue Star Foods Corp.  

CONSOLIDATED BALANCE SHEETS  

	MARCH 31, 2022			DECEMBER 31, 2021
	Unaudited
ASSETS
CURRENT ASSETS
Cash and cash equivalents	$	2,980,672		$	1,155,513
Accounts receivable, net		3,854,439			1,231,181
Inventory, net		3,041,184			2,119,441
Advances to related party		1,448,750			1,422,750
Other current assets		2,132,036			3,702,661
Total Current Assets		13,457,081			9,631,546
RELATED PARTY LONG-TERM RECEIVABLE		455,545			455,545
FIXED ASSETS, net		2,068,536			1,904,403
RIGHT OF USE ASSET		63,951			71,128
INTANGIBLE ASSETS, net
Trademarks		1,103,916			1,125,074
Customer relationships		2,633,020			2,082,757
Non-compete agreements		96,136			104,927
Total Intangible Assets		3,833,072			3,312,758
GOODWILL		445,395			445,395
OTHER ASSETS		129,261			124,634
TOTAL ASSETS	$	20,452,841		$	15,945,409
LIABILITIES AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES
Accounts payable and accruals	$	1,382,578		$	1,794,223
Working capital line of credit		2,746,763			2,368,200
Deferred income		112,096			109,414
Current maturities of long-term debt, net		1,326,527			-
Current maturities of lease liabilities		30,657			30,583
Current maturities of related party long-term notes		440,000			475,000
Current maturity of loan payable		32,029			-
Related party notes payable - subordinated		910,000			960,000
Other current liabilities		914,649			1,054,649
Total Current Liabilities		7,895,299			6,792,069
LONG-TERM LIABILITIES
Long-term lease liability		32,822			40,109
Long-term debt, net		2,653,054			31,263
Related party long-term notes		150,000			175,000
TOTAL LIABILITIES		10,731,175			7,038,441
STOCKHOLDERS’ EQUITY
Series A 8% cumulative convertible preferred stock, $0.0001 par value; 10,000 shares authorized, 0 shares issued and outstanding as of March 31, 2022, and 0 shares issued and outstanding as of December 31, 2021		-			-
Common stock, $0.0001 par value, 100,000,000 shares authorized; 24,983,796 shares issued and outstanding as of March 31, 2022, and 24,671,318 shares issued and outstanding as of December 31, 2021		2,514			2,480
Additional paid-in capital		26,935,998			25,102,879
Accumulated other comprehensive loss		(18,829	)		(54,240	)
Accumulated deficit		(17,198,017	)		(16,144,151	)
TOTAL STOCKHOLDERS’ EQUITY		9,721,666			8,906,968
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	20,452,841		$	15,945,409

The accompanying notes are an integral part of these unaudited consolidated financial statements

4

Blue Star Foods Corp.

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS

(UNAUDITED)

	Three Months Ended March 31
	2022			2021
REVENUE, NET	$	5,324,302		$	2,485,891
COST OF REVENUE		4,836,563			2,183,112
GROSS PROFIT		487,739			302,779
COMMISSIONS		-			4,794
SALARIES AND WAGES		575,449			380,596
DEPRECIATION AND AMORTIZATION		164,595			44,079
OTHER OPERATING EXPENSES		596,474			317,398
LOSS FROM OPERATIONS		(848,779	)		(444,088	)
OTHER INCOME		29,629			76,518
INTEREST EXPENSE		(234,716	)		(110,534	)
NET LOSS		(1,053,866	)		(478,104	)
DIVIDEND ON PREFERRED STOCK		-			28,260
NET LOSS ATTRIBUTABLE TO COMMON STOCKHOLDERS	$	(1,053,866	)	$	(506,364	)
COMPREHENSIVE LOSS:
CHANGE IN FOREIGN CURRENCY TRANSLATION ADJUSTMENT		35,411			-
COMPREHENSIVE LOSS	$	(1,018,455	)	$	(478,104	)
Loss per common share:
Net loss per common share - basic and diluted	$	(0.04	)	$	(0.03	)
Weighted average common shares outstanding - basic and diluted		24,304,881			19,594,888

The accompanying notes are an integral part of these unaudited consolidated financial statements

5

Blue Star Foods Corp.

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY (DEFICIT) (UNAUDITED)

THREE MONTHS ENDED MARCH 31, 2022 AND 2021

	Series A Preferred Stock $.0001 par value				Common Stock $.0001 par value				Additional Paid-in		Accumulated			Accumulated Other Comprehensive			Total Stockholders’
	Shares		Amount		Shares		Amount		Capital		Deficit			Income			Equity
December 31, 2021		-	$	-		24,671,318	$	2,480	$	25,102,879	$	(16,144,151	)	$	(54,240	)	$	8,906,968
Stock based compensation		-		-		-		-		193,631		-			-			193,631
Warrants issued on convertible debt note		-		-		-		-		956,301		-			-			956,301
Common stock issued for service		-		-		20,385		4		73,967		-			-			73,971
Common stock issued for asset acquisition		-		-		167,093		17		359,233		-			-			359,250
Common stock issued from exercise of warrants		-		-		125,000		13		249,987		-			-			250,000
Net Loss		-		-		-		-		-		(1,053,866	)		-			(1,053,866	)
Cumulative translation adjustment		-		-		-		-		-		-			35,411			35,411
March 31, 2022		-	$	-		24,983,796	$	2,514	$	26,935,998	$	(17,198,017	)	$	(18,829	)	$	9,721,666

	Series A Preferred Stock $.0001 par value				Common Stock $.0001 par value				Additional Paid-in		Accumulated			Accumulated Other Comprehensive		Total Stockholders’
	Shares		Amount		Shares		Amount		Capital		Deficit			Income		Deficit
December 31, 2020		1,413	$	-		19,580,721	$	1,958	$	13,488,836	$	(13,510,517	)	$	-	$	(19,723	)
Stock based compensation		-		-		-		-		30,319		-			-		30,319
Series A preferred 8% dividend issued in common stock		-		-		11,975		1		28,259		(28,260	)		-		-
Common stock issued for service		-		-		40,465		5		96,242		-			-		96,247
Net Loss		-		-		-		-		-		(478,104	)		-		(478,104	)
March 31, 2021		1,413	$	-		19,633,161	$	1,964	$	13,643,656	$	(14,016,881	)	$	-	$	(371,261	)

The accompanying notes are an integral part of these unaudited consolidated financial statements

6

Blue Star Foods Corp.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(UNAUDITED)

	Three Months Ended March 31
	2022			2021
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Loss	$	(1,053,866	)	$	(478,104	)
Adjustments to reconcile net loss to net cash (used in) provided by operating activities:
Stock based compensation		193,631			30,319
Common stock issued for service		73,971			96,247
Depreciation of fixed assets		55,628			1,085
Amortization of intangible assets		95,086			42,327
Amortization of loan costs		13,881			667
Amortization of debt and warrant discount and issuance costs		173,027			-
Lease expense		7,177			7,086
Bad debt expense		322			90
Allowance for inventory obsolescence		-			43,090
Changes in operating assets and liabilities:
Accounts receivables		(2,623,580	)		364,215
Inventories		(921,743	)		1,183,922
Advances to related parties		(26,000	)		-
Other current assets		1,570,625			(45,521	)
Right of use liability		(7,213	)		(7,123	)
Other assets		-			(14,341	)
Accounts payable and accruals		(427,538	)		(726,066	)
Deferred income		2,682			-
Other current liabilities		(140,000	)		(35,269	)
Net Cash (Used in) Provided by Operating Activities		(3,013,910	)		462,624
CASH FLOWS FROM INVESTING ACTIVITIES:
Net cash paid for acquisition		(398,482	)		-
Purchases of fixed assets		(73,870	)		-
Net Cash (Used in) Investing Activities		(472,352	)		-
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from common stock warrants exercised		250,000			-
Proceeds from working capital line of credit		3,009,349			2,508,585
Proceeds from PPP loan		-			371,944
Proceeds from convertible debt		4,762,855			-
Repayments of working capital line of credit		(2,630,786	)		(3,534,204	)
Repayments of related party notes payable		(110,000	)		-
Payment of loan costs		(25,000	)		-
Net Cash Provided by (Used in) Financing Activities		5,256,418			(653,675	)
Effect of Exchange Rate Changes on Cash		55,003			-
NET INCREASE (DECREASE) IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH		1,825,159			(191,051	)
CASH, CASH EQUIVALENTS AND RESTRICTED CASH – BEGINNING OF PERIOD		1,155,513			337,687
CASH, CASH EQUIVALENTS AND RESTRICTED CASH – END OF PERIOD	$	2,980,672		$	146,636
Supplemental Disclosure of Cash Flow Information
Cash paid for interest	$	63,490		$	291,038
SUPPLEMENTAL DISCLOSURE OF NON-CASH ACTIVITY
Series A preferred 8% dividend issued in common stock		-			28,260
Warrants issued for convertible debt		956,301			-
Common stock issued for asset acquisition		359,250			-

The accompanying notes are an integral part of these unaudited consolidated financial statements

7

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

Note 1. Company Overview

Blue Star Foods Corp., a Delaware corporation (“we”, “our”, the “Company”), is an international sustainable marine protein company based in Miami, Florida that imports, packages and sells refrigerated pasteurized crab meat, and other premium seafood products. The Company’s main operating business, John Keeler & Co., Inc. (“Keeler & Co.”) was incorporated in the State of Florida in May 1995. The Company’s current source of revenue is importing blue and red swimming crab meat primarily from Indonesia, Philippines and China and distributing it in the United States and Canada under several brand names such as Blue Star, Oceanica, Pacifika, Crab & Go, First Choice, Good Stuff and Coastal Pride Fresh, and steelhead salmon produced under the brand name Little Cedar Farms for distribution in Canada.

On November 26, 2019, Keeler & Co., a wholly-owned direct subsidiary of the Company, entered into an Agreement and Plan of Merger and Reorganization (the “Coastal Merger Agreement”) with Coastal Pride Company, Inc., a South Carolina corporation, Coastal Pride Seafood, LLC, a Florida limited liability company and newly-formed, wholly-owned subsidiary of the Purchaser (the “Acquisition Subsidiary” and, upon the effective date of the Merger, the “Surviving Company” or “Coastal Pride”), and The Walter F. Lubkin, Jr. Irrevocable Trust dated January 8, 2003 (the “Trust”), Walter F. Lubkin III (“Lubkin III”), Tracy Lubkin Greco (“Greco”) and John C. Lubkin (“Lubkin”), constituting all of the shareholders of Coastal Pride Company, Inc. immediately prior to the Coastal Merger (collectively, the “Sellers”). Pursuant to the terms of the Coastal Merger Agreement, Coastal Pride Company, Inc. merged with and into the Acquisition Subsidiary, with the Acquisition Subsidiary being the surviving company (the “Coastal Merger”).

Coastal Pride is a seafood company, based in Beaufort, South Carolina, that imports pasteurized and fresh crabmeat sourced primarily from Mexico and Latin America and sells premium branded label crabmeat throughout North America.

On April 27, 2021, the Company entered into a stock purchase agreement (the “Purchase Agreement”) with TOBC, and Steve Atkinson and Janet Atkinson (the “Sellers”), the owners of all of the capital stock of TOBC (the “TOBC Shares”), pursuant to which the Company acquired all of the TOBC Shares from the Sellers for an aggregate purchase price of CAD$4,000,000 for: (i) an aggregate of CAD$1,000,000 in cash (with each Seller receiving a pro rata amount based upon the total number of TOBC Shares held by such Seller); (ii) promissory notes in the aggregate principal amount of CAD$200,000 (the “Notes”) with the principal amount of each Seller’s Note based on such Seller’s pro rata portion of the TOBC Shares); and (iii) 987,741 shares of the Company’s common stock (representing CAD$2,800,000 of shares based on USD$2.30 per share) with each Seller receiving a pro rata portion of such shares based upon the total number of TOBC Shares held by such Seller.

On June 24, 2021, the Purchase Agreement was amended (the “Amendment”), to increase the Purchase Price up to an aggregate of CAD$5,000,000 and the acquisition closed. Pursuant to the Amendment, on August 3, 2021, an aggregate of 344,957 shares of the Company’s common stock (representing CAD$1,000,000 of additional shares calculated at USD$2.30 per share) was put in escrow until the 24-month anniversary of the closing. If, within 24 months of the closing, TOBC has cumulative revenue of at least CAD$1,300,000, the Sellers will receive all of the escrowed shares. If, as of the 24-month anniversary of the closing, TOBC has cumulative revenue of less than CAD$1,300,000, the Sellers will receive a prorated number of the escrowed shares based on the actual cumulative revenue of TOBC as of such date.

TOBC is a land-based recirculating aquaculture systems salmon farming operation, based in Nanaimo, British Columbia, Canada, which sells its steelhead salmon to distributors in Canada.

On February 3, 2022, Coastal Pride entered into an asset purchase agreement with Gault Seafood, LLC, a South Carolina limited liability company (“Gault Seafood”), and Robert J. Gault II, President of Gault Seafood (“Gault”) pursuant to which Coastal Pride acquired all of the Seller’s right, title and interest in and to assets relating to Gault Seafood’s soft-shell crab operations, including intellectual property, equipment, vehicles and other assets used in connection with the soft-shell crab business. Coastal Pride did not assume any liabilities in connection with the acquisition. The purchase price for the assets consisted of a cash payment in the amount of $359,250 and the issuance of 167,093 shares of common stock of the Company with a fair value of $359,250. Such shares are subject to a leak-out agreement pursuant to which Gault Seafood may not sell or otherwise transfer the shares until February 3, 2023.

8

Note 2. Basis of Presentation and Summary of Significant Accounting Policies

Basis of Presentation

The following unaudited interim consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). Accordingly, such interim financial statements do not include all the information and footnotes required by accounting principles generally accepted in the United States (“GAAP”) for complete annual financial statements. The information furnished reflects all adjustments, consisting only of normal recurring items which are, in the opinion of management, necessary in order to make the financial statements not misleading. The results of operations for the interim periods are not necessarily indicative of the results to be expected for the full year. The consolidated balance sheet as of December 31, 2021 has been derived from the Company’s annual financial statements that were audited by an independent registered public accounting firm but does not include all of the information and footnotes required for complete annual financial statements. These financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto which are included in our Annual Report on Form 10-K for the year ended December 31, 2021 filed with the SEC on March 31, 2022 for a broader discussion of our business and the risks inherent in such business.

Advances to Suppliers and Related Party

In the normal course of business, the Company may advance payments to its suppliers, inclusive of Bacolod Blue Star Export Corp. (“Bacolod”), a related party based in the Philippines. These advances are in the form of prepayments for products that will ship within a short window of time. In the event that it becomes necessary for the Company to return products or adjust for quality issues, the Company is issued a credit by the vendor in the normal course of business and these credits are also reflected against future shipments.

As of March 31, 2022, and December 31, 2021, the balance due from the related party for future shipments was approximately $1,300,000. No new purchases have been made from Bacolod during the three months ended March 31, 2022. Cost of revenue related to inventories purchased from Bacolod represented approximately $0 and $170 of total cost of revenue for the three months ended March 31, 2022 and 2021, respectively.

Revenue Recognition

The Company recognizes revenue in accordance with Accounting Standards Codification (ASC) 606, Revenue from Contracts with Customers, as such, we record revenue when our customer obtains control of the promised goods or services in an amount that reflects the consideration which the Company expects to receive in exchange for those goods or services. The Company’s source of revenue is from importing blue and red swimming crab meat primarily from Indonesia, the Philippines and China and distributing it in the United States and Canada under several brand names such as Blue Star, Oceanica, Pacifika, Crab & Go, First Choice, Good Stuff and Coastal Pride Fresh, and steelhead salmon produced by TOBC under the brand name Little Cedar Farms for distribution in Canada. The Company sells 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 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.

9

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.

Goodwill and Other Intangible Assets

The Company accounts for business combinations under the acquisition method of accounting in accordance with ASC 805, “Business Combinations,” where the total purchase price is allocated to the tangible and identified intangible assets acquired and liabilities assumed based on their estimated fair values. The purchase price is allocated using the information currently available, and may be adjusted, up to one year from acquisition date, after obtaining more information regarding, among other things, asset valuations, liabilities assumed, and revisions to preliminary estimates. The purchase price in excess of the fair value of the tangible and identified intangible assets acquired less liabilities assumed is recognized as goodwill.

The Company reviews its indefinite lived intangibles and goodwill for impairment annually or whenever events or circumstances indicate that the carrying amount of the asset exceeds its fair value and may not be recoverable. In accordance with its policies, the Company performed an assessment of indefinite lived intangibles and goodwill and determined there was no impairment for the three months ended March 31, 2022 and 2021.

Long-lived Assets

The Company reviews long-lived assets, including finite-lived intangible assets, for indicators of impairment whenever events or changes in circumstances indicate that the carrying value may not be recoverable. Cash flows expected to be generated by the related assets are estimated over the asset’s useful life on an undiscounted basis. If the evaluation indicates that the carrying value of the asset may not be recoverable, the potential impairment is measured using fair value. Impairment losses for assets to be disposed of, if any, are based on the estimated proceeds to be received, less costs of disposal.

In accordance with its policies, the Company performed an assessment of its finite-lived intangibles and recognized an impairment loss on customer relationships intangible asset of $374,300 for the year ended December 31, 2021. No impairment was recognized during the three months ended March 31, 2022.

Foreign Currency Exchange Rates Risk

We manage our exposure to fluctuations in foreign currency exchange rates through our normal operating activities. Our primary focus is to monitor our exposure to, and manage, the economic foreign currency exchange risks faced by our operations and realized when we exchange one currency for another. Our operations primarily utilize the U.S. dollar and Canadian dollar as their functional currencies. Movements in foreign currency exchange rates affect our financial statements.

Recently Adopted Accounting Pronouncements

ASU 2020-06, Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40).

In August 2020, the FASB issued ASU 2020-06, Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40). The ASU simplifies the accounting for certain financial instruments with characteristics of liabilities and equity. The FASB reduced the number of accounting models for convertible debt and convertible preferred stock instruments and made certain disclosure amendments to improve the information provided to users. In addition, the FASB amended the derivative guidance for the “own stock” scope exception and certain aspects of the EPS guidance. The guidance is effective for smaller reporting companies for fiscal years beginning after December 15, 2023, including interim periods within those fiscal years. Early adoption is permitted, but no earlier than fiscal years beginning after December 15, 2020, including interim periods within those fiscal years. The Company early adopted the ASU effective January 1, 2022 and applied the provisions of the ASU to the convertible note issued during the three months ended March 31, 2022.

Note 3. Going Concern

The accompanying consolidated financial statements and notes have been prepared assuming the Company will continue as a going concern. For the three months ended March 31, 2022, the Company incurred a net loss of $1,053,866, has an accumulated deficit of $17,198,017 and working capital surplus of $5,561,782, with the current liabilities inclusive of $910,000 in stockholder loans that are subordinated to the provider of the working capital facility, and $30,657 in the current portion of the lease liability recognized. These circumstances raise substantial doubt as to the Company’s ability to continue as a going concern. The Company’s ability to continue as a going concern is dependent upon the Company’s ability to increase revenues, execute on its business plan to acquire complimentary companies, raise capital, and to continue to sustain adequate working capital to finance its operations. The consolidated financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern.

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Note 4. Other Current Assets

Other current assets totaled $2,132,036 as of March 31, 2022 and $3,702,661 as of December 31, 2021. As of March 31, 2022, approximately $1.95 million of the balance was related to prepaid inventory to our suppliers. The remainder of the balance is related to prepaid insurance and other prepaid expenses.

Note 5. Fixed Assets, Net

Fixed assets comprised the following:

	March 31, 2022			December 31, 2021
Computer equipment	$	94,117		$	90,707
RAS system		2,037,160			1,963,734
Automobiles		124,655			23,188
Leasehold improvements		51,567			4,919
Total		2,307,499			2,082,548
Less: Accumulated depreciation		(238,963	)		(178,145	)
Fixed assets, net	$	2,068,536		$	1,904,403

For the three months ended March 31, 2022 and 2021, depreciation expense totaled approximately $56,000 and $1,000, respectively.

Note 6. Intangible Assets, Net

The following table sets forth the components of the Company’s intangible assets as of March 31, 2022:

	Amortization Period (Years)		Cost		Accumulated Amortization			Net Book Value
Intangible Assets Subject to amortization
Trademarks – Coastal Pride		14	$	850,000	$	(132,216	)	$	717,784
Trademarks – TOBC		15		406,150		(20,018	)		386,132
Customer Relationships – Coastal Pride		12		1,486,832		(236,163	)		1,250,669
Customer Relationships – TOBC		15		1,454,017		(71,666	)		1,382,351
Non-Compete Agreements – Coastal Pride		3		40,000		(23,324	)		16,676
Non-Compete Agreements – TOBC		4		97,476		(18,016	)		79,460
Total			$	4,334,475	$	(501,403	)	$	3,833,072

The aggregate amortization remaining on the intangible assets as of March 31, 2022 is as follows:

	Intangible Amortization
2022 (9 months remaining)	$	272,454
2023	$	363,272
2024	$	362,708
2025	$	328,108
2026	$	328,108
Thereafter	$	2,178,422

Note 7. Debt

Working Capital Line of Credit

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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 $5,000,000 revolving line of credit for a term of thirty-six months, renewable annually for one-year periods thereafter. Amounts due under the line of credit are represented by a revolving credit note issued to Lighthouse by the Borrowers.

The advance rate of the revolving line of credit is 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 will never exceed 50% of the outstanding balance. Interest on the line of credit is the prime rate (with a floor of 3.25%), plus 3.75%. The Borrowers paid Lighthouse a facility fee of $50,000 in three instalments of $16,667 in March, April and May 2021 and will pay an additional facility fee of $25,000 on each anniversary of March 31, 2021. On January 14, 2022, the maximum inventory advance under the line of credit was adjusted from 50% to 70% until June 30, 2022, 65% to July 31, 2022, 60% to August 31, 2022 and 55% to September 30, 2022 at a monthly fee of 0.25% on the portion of the loan in excess of the 50% advance, in order to increase imports to meet customer demand. As of March 31, 2022, the interest rate was 7.25%.

The line of credit is secured by a first priority security interest on all the assets of each Borrower. Pursuant to the terms of a guaranty agreement, the Company guaranteed the obligations of the Borrowers under the note and John Keeler, Executive Chairman and Chief Executive Officer of the Company, provided a personal guaranty of up to $1,000,000 to Lighthouse. As of March 31, 2022, the Company was in compliance with all financial covenants under the Loan Agreement. except for the requirement to maintain a greater than $50,000 cash flow in the months of January and February 2022. Lighthouse has notified the Borrowers as to this default but has elected not to exercise its rights and remedies under the loan documents with the Borrowers. The outstanding balance owed to Lighthouse as of March 31, 2022 was $2,746,763.

First West Credit Union CEBA Loan

On June 24, 2021, the Company assumed a commercial term loan with First West Credit Union Canada Emergency Business Account (“CEBA”) in the principal amount of CAD$60,000 in connection with the acquisition of TOBC. The loan initially bears no interest and is due on December 31, 2025. The borrower may prepay all or part of the loan commencing November 1, 2022 and, if by December 31, 2022 the Company has paid 75% of the loan amount, the remaining 25% will be forgiven as per the loan agreement. If less than 75% of the loan amount is outstanding by December 31, 2022, the then outstanding balance will be converted to interest only monthly payments at 5.0%.

John Keeler Promissory Notes – Subordinated

The Company had unsecured promissory notes outstanding to John Keeler of approximately $910,000 of principal at March 31, 2022 and interest expense of $14,400 and $19,600 as of March 31, 2022 and 2021, respectively. These notes are payable on demand, bear an annual interest rate of 6% and are subordinated to the Lighthouse note. The Company made principal payments of $50,000 during the three months ended March 31, 2022.

Walter Lubkin Jr. Note – Subordinated

On November 26, 2019, the Company issued a five-year unsecured promissory note in the principal amount of $500,000 to Walter Lubkin Jr. as part of the purchase price for the Coastal Pride acquisition. The note bears interest at the rate of 4% per annum and is payable quarterly in an amount equal to the lesser of (i) $25,000 or (ii) 25% of the EBITDA of Coastal Pride, as determined on the first day of each quarter. The first payment was scheduled for February 26, 2020, however, the EBITDA generated for Coastal during the preceding quarter did not warrant a principal payment. This note is subordinated to the working capital line of credit. Principal payments are permitted so long as the borrower is not in default of its working capital line of credit.

On October 8, 2021, $34,205 of the outstanding principal and accrued interest to date was paid on the note by the Company.

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On February 1, 2022, $29,789 of the outstanding principal and accrued interest to date was paid on the note by the Company.

Interest expense for the Walter Lubkin Jr. note totaled approximately $4,500 and $4,900 during the three months ended March 31, 2022 and 2021, respectively.

Walter Lubkin III Convertible Note – Subordinated

On November 26, 2019, the Company issued a thirty-nine-month unsecured promissory note in the principal amount of $87,842 to Walter Lubkin III as part the purchase price for the Coastal Pride acquisition. The note bears interest at the rate of 4% per annum. The note is payable in equal quarterly payments over six quarters beginning August 26, 2021. At the election of the holder, at any time after the first anniversary of the issuance of the note, the then outstanding principal and accrued interest may be converted into the Company’s common stock at a rate of $2.00 per share. This note is subordinated to the working capital line of credit. Principal payments are permitted so long as the borrower is not in default of its working capital line of credit.

On October 8, 2021, $16,257 of the outstanding principal and accrued interest to date was paid on the note by the Company.

On February 1, 2022, $15,378 of the outstanding principal and accrued interest to date was paid on the note by the Company.

Interest expense for the Walter Lubkin III note totaled approximately $600 and $800 during the three months ended March 31, 2022 and 2021, respectively.

Tracy Greco Convertible Note – Subordinated

On November 26, 2019, the Company issued a thirty-nine-month unsecured promissory note in the principal amount of $71,372 to Tracy Greco as part of the purchase price for the Coastal Pride acquisition. The note bears interest at the rate of 4% per annum. The note is payable in equal quarterly payments over six quarters beginning August 26, 2021. At the election of the holder, at any time after the first anniversary of the issuance of the note, the then outstanding principal and accrued interest may be converted into the Company’s common stock at a rate of $2.00 per share. This note is subordinated to the working capital line of credit. Principal payments are permitted so long as the borrower is not in default of its working capital line of credit.

On October 8, 2021, $13,209 of the outstanding principal and accrued interest to date was paid on the note by the Company.

On February 1, 2022, $12,494 of the outstanding principal and accrued interest to date was paid on the note by the Company.

Interest expense for the Tracy Greco note totaled approximately $500 and $700 during the three months ended March 31, 2022 and 2021, respectively.

John Lubkin Convertible Note – Subordinated

On November 26, 2019, the Company issued a thirty-nine-month unsecured promissory note in the principal amount of $50,786 to John Lubkin as part the Coastal Pride acquisition. The note bears interest at the rate of 4% per annum. The note is payable in equal quarterly payments over six quarters beginning August 26, 2021. At the election of the holder, at any time after the first anniversary of the issuance of the note, the then outstanding principal and accrued interest may be converted into the Company’s common stock at a rate of $2.00 per share. This note is subordinated to the working capital line of credit. Principal payments are permitted so long as the borrower is not in default of its working capital line of credit.

On October 8, 2021, $9,399 of the outstanding principal and accrued interest to date was paid on the note by the Company.

On February 1, 2022, $8,891 of the outstanding principal and accrued interest to date was paid on the note by the Company.

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Interest expense for the John Lubkin note totaled approximately $300 and $500 during the three months ended March 31, 2022 and 2021, respectively.

Lind Global Fund II LP investment

On January 24, 2022, the Company entered into a securities purchase agreement with Lind Global Fund II LP, a Delaware limited partnership (“Lind”), pursuant to which the Company issued Lind a secured, two-year, interest free convertible promissory note in the principal amount of $5,750,000 and a five-year warrant to purchase 1,000,000 shares of common stock at an exercise price of $4.50 per share, subject to customary adjustments. The warrant provides for cashless exercise and for full ratchet anti-dilution if the Company issues securities at less than $4.50 per share. In connection with the issuance of the note and the warrant, the Company paid a $150,000 commitment fee to Lind and $87,144 of debt issuance costs. The Company recorded a total of $1,943,445 debt discount at issuance of the debt, including original issuance discount of $750,000, commitment fee $150,000, $87,144 direct issuance cost, and $956,301 related to warrants issued. Amortization expense recorded in interest expense totaled $173,027 during the three months ended March 31, 2022.

The outstanding principal under the note is payable commencing July 24, 2022, in 18 consecutive monthly installments of $333,333, at the Company’s option, in cash or shares of common stock at a price (the “Repayment Share Price”) based on 90% of the five lowest volume weighted average prices (“VWAP”) during the 20-days prior to the payment date with a floor price of $1.50 per share (the “Floor Price”), or a combination of cash and stock provided that if at any time the Repayment Share Price is deemed to be the Floor Price, then in addition to shares, the Company will pay Lind an additional amount in cash as determined pursuant to a formula contained in the note.

In connection with the issuance of the note, the Company granted Lind a first priority security interest and lien on all of its assets, including a pledge on its shares in John Keeler & Co. Inc., its wholly-owned subsidiary, pursuant to a security agreement and a stock pledge agreement with Lind, dated January 24, 2022. Each subsidiary of the Company also granted a second priority security interest in all of its respective assets.

The note is mandatorily payable prior to maturity if the Company issues any preferred stock (with certain exceptions described in the note) or, if the Company or its subsidiaries issues any indebtedness other than certain amounts under the current line of credit facility with Lighthouse. The Company also agreed not to issue or sell any securities with a conversion, exercise or other price based on a discount to the trading prices of the Company’s stock or to grant the right to receive additional securities based on future transactions of the Company on terms more favorable than those granted to Lind, with certain exceptions.

Commencing on the earlier of July 24, 2022 or the effectiveness of the registration statement covering Lind’s shares, if the Company fails to maintain the listing and trading of its common stock, the note will become due and payable and Lind may convert all or a portion of the outstanding principal at the lower of the then current conversion price and 80% of the average of the 3-day VWAP during the 20 days prior to delivery of the conversion notice.

If a resale registration statement is not effective covering the shares of common stock issuable to Lind in 180 days following January 24, 2022, the note will be in default. Lind was also granted piggyback registration rights.

If the Company engages in capital raising transactions, Lind has the right to purchase up to 10% of the new securities.

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The note is convertible into common stock at $5.00 per share, subject to certain adjustments, at any time after the earlier of six months from issuance or the date the registration statement is effective; provided that no such conversion may be made that would result in beneficial ownership by Lind and its affiliates of more than 4.99% of the Company’s outstanding shares of common stock. If shares are issued by the Company at less than the conversion price, the conversion price will be reduced to such price.

Upon a change of control of the Company, as defined in the note, Lind has the right to require the Company to prepay 10% of the outstanding principal amount of the note. The Company may prepay the outstanding principal amount of the note, provided Lind may convert up to 25% of the principal amount of the note at a price per share equal to the lesser of the Repayment Share Price or the conversion price. The Note contains certain negative covenants, including restricting the Company from certain distributions, stock repurchases, borrowing, sale of assets, loans and exchange offers.

Upon an event of default as described in the note, the note will become immediately due and payable at a default interest rate of 125% of the then outstanding principal amount. Upon a default, all or a portion of the outstanding principal amount may be converted into shares of common stock by Lind at the lower of the conversion price and 80% of the average of the three lowest daily VWAPs.

Note 8. Business Combination

Acquisition of Taste of BC Aquafarms

On June 24, 2021, the Company consummated the acquisition of TOBC and TOBC became a wholly owned subsidiary of the Company. The acquisition was accounted for as a business combination under the provisions of ASC 805. The aggregate purchase price of CAD$5,000,000 was paid as follows: (i) an aggregate of CAD$1,000,000 in cash to the Sellers; (ii) promissory notes in the aggregate principal amount of CAD$200,000 to the Sellers; (iii) 987,741 shares of the Company’s common stock and an aggregate of 344,957 shares of the Company’s common stock were issued on August 3, 2021 and put in escrow until June 24, 2023. If, within 24 months of the closing, TOBC has cumulative revenue of at least CAD$1,300,000, the Sellers will receive all of the escrowed shares. If, as of the 24-month anniversary of the closing, TOBC has cumulative revenue of less than CAD$1,300,000, the Sellers will receive a prorated number of the escrowed shares based on the actual cumulative revenue of TOBC as of such date.

The transaction costs incurred in connection with the acquisition of TOBC amounted to $31,000 which were expensed as incurred.

Fair Value of Consideration Transferred and Recording of Assets Acquired

The following table summarizes the acquisition date fair value of the consideration paid, identifiable assets acquired, and liabilities assumed. The business combination accounting is not yet complete and the amounts assigned to assets acquired and liabilities assumed are provisional. Therefore, this may result in future adjustments to the provisional amounts as information is obtained about facts and circumstances that existed at the acquisition date.

Consideration Paid:
Cash	$	814,000
Common stock, 987,741 shares of common stock of the Company		1,975,483
Promissory notes to Sellers		162,400
Contingent consideration - Common stock, 344,957 shares of common stock of the Company in escrow		689,914
Fair value of total consideration	$	3,641,797
Purchase Price Allocation:
Tangible assets acquired	$	2,137,650
Trademarks		406,150
Customer relationships		1,454,017
Non-compete agreements		97,476
Liabilities assumed		(453,496	)
Fair market value of net assets acquired	$	3,641,797

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In determining the fair value of the common stock issued, the Company considered the value of the stock as estimated by the Company at the time of closing which was determined to be $2.00, based on the Company’s private placement offering price.

Liabilities assumed included three mortgage loans of approximately CAD$490,000 which were paid off by the Company on July 9, 2021. The Company has one commercial loan outstanding for CAD$60,000 which is due on December 31, 2025.

Unaudited Pro Forma Information

The following unaudited pro forma information assumes the business acquisition occurred on January 1, 2021. Depreciation and amortization have been included in the calculation of the below pro forma information based upon the actual acquisition costs.

	Three Months Ended March 31, 2021
Revenue	$	2,608,050
Net loss attributable to common shareholders	$	(561,958	)
Basic and diluted loss per share	$	(0.03	)

The information included in the pro forma amounts is derived from historical information obtained from the Sellers of the business.

Note 9. Stockholders’ Equity

On July 1, 2020, the Company entered into an investment banking engagement agreement, as amended on October 30, 2020, with Newbridge Securities Corporation. In consideration for advisory services, the Company agreed to issue Newbridge a total of 60,000 shares of common stock with a fair value of $138,000 which is amortized to expense over the term of the agreement. The Company recognized stock compensation expense of $34,500 for the three months ended March 31, 2021 in connection with these shares.

On February 8, 2021, the Company issued 25,000 shares of common stock with a fair value of $25,250 to an investor relations firm for services provided to the Company under an investor relations consulting agreement.

On March 30, 2021, the Company issued 10,465 shares of common stock with a fair value of $24,697 to the designee of a law firm for services provided to the Company.

On March 31, 2021, the Company issued 5,000 shares of common stock with a fair value of $11,800 to an investor relations firm for services provided to the Company under an investor relations consulting agreement.

On March 31, 2021, the Company issued 11,975 shares of common stock to Series A preferred stockholders as a common stock dividend with an aggregate fair value of $28,260 for the three months ended March 31, 2021.

On July 21, 2021, the Company entered into a consulting agreement as amended on November 10, 2021, with Intelligent Investments I, LLC (“Intelligent”). In consideration for consulting services, the Company agreed to issue Intelligent a total of 52,326 shares of common stock with a fair value of $171,106 which is amortized to expense over the term of the agreement. The Company recognized stock compensation expense of $34,221 for the three months ended March 31, 2022 in connection with these shares.

On January 24, 2022, the Company issued 125,000 shares of common stock to an investor upon the exercise of warrants for total proceeds of $250,000.

On February 3, 2022, the Company issued 167,093 shares of common stock with a fair value of $359,250 to Gault Seafood as partial consideration for the purchase of certain of its assets.

On March 31, 2022, the Company issued 15,385 shares of common stock to Intelligent Investments I LLC, with a fair value of $30,000, for legal services provided to the Company.

On March 31, 2022, the Company issued 5,000 shares of common stock with a fair value of $9,750 to TraDigital Marketing Group for consulting services provided to the Company.

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Note 10. Options

The following table represents option activity for the three months ended March 31, 2022:

	Number of Options		Weighted Average Exercise Price		Weighted Average Remaining Contractual Life in Years		Aggregate Intrinsic Value
Outstanding – December 31, 2021		4,429,680	$	2.00		6.23
Exercisable – December 31, 2021		3,807,127	$	2.00		6.83	$	-
Granted		-	$	-
Forfeited		-	$	-
Vested		3,967,399
Outstanding – March 31, 2022		4,429,680	$	2.00		5.99
Exercisable – March 31, 2022		3,967,399	$	2.00		6.01	$	-

For the three months ended March 31, 2022, the Company recognized $193,631 of compensation expense for vested stock options issued to directors, contractors and employees during 2019 to 2021. The non-vested options outstanding are 462,281 as of March 31, 2022.

Note 11. Warrants

The following table represents warrant activity for the three months ended March 31, 2022:

	Number of Warrants			Weighted Average Exercise Price		Weighted Average Remaining Contractual Life in Years		Aggregate Intrinsic Value
Outstanding – December 31, 2021		1,538,500		$	2.11		2.50
Exercisable – December 31, 2021		1,538,500		$	2.11		2.50	$	-
Granted		1,000,000		$	-
Exercised		(125,000	)	$	2.00
Forfeited or Expired		-		$	-
Outstanding – March 31, 2022		2,413,500		$	3.11		2.08
Exercisable – March 31, 2022		2,413,500		$	3.11		2.08	$	-

On January 24, 2022, in connection with the issuance of the $5,750,000 promissory note to Lind pursuant to a securities purchase agreement, the Company issued Lind a five-year warrant to purchase 1,000,000 shares of common stock at an exercise price of $4.50 per share. The warrant provides for cashless exercise and full ratchet anti-dilution if the Company issues securities at less than $4.50 per share. Under the Black-Scholes pricing model, the fair value of the warrants issued to purchase 1,000,000 shares of common stock was estimated at $1,412,213 on the date of issuance of the warrant using the following assumptions: stock price of $3.97 at the date of the agreement, exercise price of the warrant, warrant term, volatility rate of 43.21% and risk-free interest rate of 1.53% from the Department of Treasury. The relative fair value of $956,031 was calculated using the net proceeds of the convertible note and accounted for as paid in capital.

During the three months ended March 31, 2022, the Company issued 125,000 shares at an exercise price of $2.00 to an investor upon exercise of warrants.

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Note 12. Commitment and Contingencies

Office lease

The Company leased its Miami office and warehouse facility from JK Real Estate, a related party through common family beneficial ownership. The lease which had a 20-year term, expiring in July 2021, was terminated on December 31, 2020, upon the sale of the facility to an unrelated third-party. In connection with the sale, the Company retained approximately 4,756 square feet of such space, rent-free for 12 months. On January 1, 2022, the Company entered into a verbal month-to-month lease agreement for its executive offices with an unrelated third party. The Company has paid $23,200 to date under this lease.

Coastal Pride leases approximately 1,100 square feet of office space in Beaufort, South Carolina. This office space consists of two leases with related parties that expire in 2024.

On February 3, 2022, in connection with the acquisition of certain assets of Gault, the Company entered into a one-year lease agreement for 9,050 square feet from Gault in Beaufort, South Carolina for $1,000 per month until a new facility is completed.

TOBC’s facilities are on land leased to TOBC for approximately $2,500 per month plus taxes from Steve and Janet Atkinson, the former TOBC owners, under a lease agreement that expired December 2021. On April 1, 2022, the lease was renewed with Steve and Janet Atkinson for approximately $2,000 per month plus taxes and an additional new lease was entered into with Kathryn Atkinson for approximately $1,800 per month plus taxes.

Rental and equipment lease expenses amounted to approximately $23,800 and $20,000 for the three months ended March 31, 2022 and 2021, respectively.

Legal

The Company has reached a settlement agreement with a former employee. Although the agreement is not finalized, the Company has reserved $70,000, representing the entire amount of the settlement.

Note 13. COVID-19 Pandemic

On March 11, 2020, the World Health Organization declared that the novel coronavirus (COVID-19) had become a pandemic, and on March 13, 2020, the U.S. President declared a National Emergency concerning the disease. Additionally, in March 2020, state governments in the Company’s geographic operating area began instituting preventative shut down measures in order to combat the novel coronavirus pandemic. The coronavirus and actions taken to mitigate the spread of it have had and are expected to continue to have an adverse impact on the economies and financial markets of the geographical areas in which the Company operates. On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) was enacted to amongst other provisions, provide emergency assistance for individuals, families and businesses affected by the novel coronavirus pandemic for 2020 and into 2021. The Company’s business not being deemed essential resulted in decreased financial performance that may not be indicative of future financial results. Government-mandated closures of businesses and shipping delays have affected our sales and inventory purchases. The Company continues to face uncertainty and increased risks concerning its employees, customers, supply chain and government regulation. In April 2021, the U.S. government has made available the COVID-19 vaccine to most of its population to aid with the pandemic but the long-term effects of this development are yet to be seen. By the end of 2021, the U.S. government has made available a booster of the COVID-19 vaccine to continue the fight against the pandemic. The Company’s sales and supply continue to be adversely affected due to COVID-19 and plans continue to be developed to ensure a prompt response is given to address the effects of the pandemic.

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Note 14. Subsequent Events

On April 1, 2022, the TOBC lease was renewed with Steve and Janet Atkinson for approximately $2,000 per month plus taxes and an additional new lease was entered into with Kathryn Atkinson for approximately $1,800 per month plus taxes.

On April 1, 2022, the Company issued 2,871 shares of common stock with a fair value of $6,000 to the designee of Clear Think Capital for consulting services provided to the Company.

On April 4, 2022, the Company issued 9,569 shares of common stock with a fair value of $20,000 to SRAX, Inc. for consulting services provided to the Company.

On April 5, 2022, the Company issued an aggregate of 24,816 shares of common stock with a fair value of $156,341 to Newbridge and its affiliates for consulting services provided to the Company.

On April 20, 2022, the existing directors and the two new directors each entered into a one-year director service agreement with the Company, which will automatically renew for successive one-year terms unless either party notifies the other of its desire not to renew the agreement at least 30 days prior to the end of the then current term, or unless earlier terminated in accordance with the terms of the agreement. As compensation for serving on the Board of Directors, each director will be entitled to a $25,000 annual stock grant and for serving on a Committee of the Board, an additional $5,000 annual stock grant, both based upon the closing sales price of the common stock on the last trading day of the calendar year. Each director who serves as chairman of the Audit Committee, Compensation Committee and Nominating and Governance Committee will be entitled to an additional $15,000, $10,000 and $7,500 annual stock grant, respectively. As additional consideration for such Board service, on April 20, 2022, each director was granted a five-year option to purchase 25,000 shares of the Company’s common stock at an exercise price of $2.00 per share, which shares will vest in equal quarterly installments of 1,250 shares during the term of the option. The agreement also includes customary confidentiality provisions and one-year non-competition and non-solicitation provisions.

On April 28, 2022, aggregate principal outstanding amounts and accrued interest of $41,023 under the subordinated note with Walter Lubkin Jr., and the subordinated convertible notes with Walter Lubkin III, Tracy Greco and John Lubkin were paid off by the Company.

On May 1, 2022, the Company issued 3,922 shares of common stock with a fair value of $6,000 to the designee of Clear Think Capital for consulting services provided to the Company.

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Forward-Looking Statements

The following management’s discussion and analysis should be read in conjunction with the financial statements and the related notes thereto. The management’s discussion and analysis contain forward-looking statements, such as statements of our plans, objectives, expectations and intentions. Any statements that are not statements of historical fact are forward-looking statements. When used, the words “believe,” “plan,” “intend,” “anticipate,” “target,” “estimate,” “expect” and the like, and/or future tense or conditional constructions (“will,” “may,” “could,” “should,” etc.), or similar expressions, identify certain of these forward-looking statements. These forward-looking statements are subject to risks and uncertainties, including those under “Risk Factors” in our Annual Report on Form 10-K filed with the SEC on March 31, 2022, as updated in subsequent filings we have made with the SEC that could cause actual results or events to differ materially from those expressed or implied by the forward-looking statements. Our actual results and the timing of events could differ materially from those anticipated in these forward-looking statements as a result of several factors. We do not undertake any obligation to update forward-looking statements to reflect events or circumstances occurring after the date of this Quarterly Report.

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Basis of Presentation

The following discussion highlights our results of operations and the principal factors that have affected our financial condition as well as our liquidity and capital resources for the periods described and provides information that management believes is relevant for an assessment and understanding of the statements of financial condition and results of operations presented herein. The following discussion and analysis are based on our unaudited financial statements contained in this Quarterly Report, which we have prepared in accordance with United States generally accepted accounting principles. You should read the discussion and analysis together with such financial statements and the related notes thereto.

Overview

We are an international seafood company that imports, packages and sells refrigerated pasteurized crab meat, and other premium seafood products. Our current source of revenue is from importing blue and red swimming crab meat primarily from Indonesia, the Philippines and China and distributing it in the United States and Canada under several brand names such as Blue Star, Oceanica, Pacifika, Crab & Go, First Choice, Good Stuff and Coastal Pride Fresh, and steelhead salmon produced under the brand name Little Cedar Farms for distribution in Canada. The crab meat which we import is processed in 13 plants throughout Southeast Asia. Our suppliers are primarily via co-packing relationships, including two affiliated suppliers. We sell primarily to food service distributors. We also sell our products to wholesalers, retail establishments and seafood distributors.

Recent Developments

Gault Seafood Asset Acquisition

On February 3, 2022, Coastal Pride entered into an asset purchase agreement with Gault Seafood, LLC, a South Carolina limited liability company (the “Gault Seafood”), and Robert J. Gault II, President of the Seller (“Gault”) pursuant to which Coastal Pride acquired certain assets relating to Gault Seafood’s soft-shell crab operations, including intellectual property, equipment and vehicles used in connection with its soft-shell crab operations. Coastal Pride did not assume any liabilities in connection with the acquisition. The purchase price for the assets consisted of $359,250 in cash and the issuance of 167,093 shares of common stock of the Company with a fair value of $359,250. Such shares are subject to a leak-out agreement pursuant to which Gault Seafood may not sell or otherwise transfer the shares until February 3, 2023.

Coastal Pride also entered into a consulting agreement with Gault under the terms of which Gault will provide consulting services to Coastal Pride at the rate of $100 per hour, however, the first 45 days of services will be provided at no cost. Gault also agreed not to compete with Coastal Pride and its affiliates for a period of five years in any market in which Coastal Pride is operating or is considering operating or solicit employees, consultants, customers or suppliers or in any way interfere with Coastal Pride’s business relationships for a five-year period, Gault is also bound by customary confidentiality provisions. The consulting agreement may be terminated by either party upon five days written notice and by Costal Pride immediately for cause.

In connection with the asset acquisition, Coastal Pride will lease 9,050 square feet for $1,000 per month under a one-year lease agreement and will continue to operate the acquired soft-shell crab operations at such location in Beaufort, South Carolina unless a new facility is earlier completed.

Appointment of Chief Operating Officer

On April 19, 2022, Miozotis Ponce was appointed Chief Operating Officer of the Company.

Increase in Size of Board of Directors

On April 20, 2022, in accordance with the Company’s bylaws, the number of directors constituting the Board of Directors was increased from five to seven directors and, effective as of April 20, 2022, Silva Alana and Juan Carlos Dalto were appointed directors.

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On April 20, 2022, the existing directors and the two new directors each entered into a one-year director service agreement with the Company, which will automatically renew for successive one-year terms unless either party notifies the other of its desire not to renew the agreement at least 30 days prior to the end of the then current term, or unless earlier terminated in accordance with the terms of the agreement. As compensation for serving on the Board of Directors, each director will be entitled to a $25,000 annual stock grant and for serving on a Committee of the Board, an additional $5,000 annual stock grant, both based upon the closing sales price of the common stock on the last trading day of the calendar year. Each director who serves as chairman of the Audit Committee, Compensation Committee and Nominating and Governance Committee will be entitled to an additional $15,000, $10,000 and $7,500 annual stock grant, respectively. As additional consideration for such Board service, on April 20, 2022, each director was granted a five-year option to purchase 25,000 shares of the Company’s common stock at an exercise price of $2.00 per share, which shares will vest in equal quarterly installments of 1,250 shares during the term of the option. The agreement also includes customary confidentiality provisions and one-year non-competition and non-solicitation provisions.

COVID-19

The current COVID-19 pandemic has adversely affected our business operations, including disruptions and restrictions on our ability to travel or to distribute our seafood products, as well as temporary closures of our facilities. Any such disruption or delay may impact our sales and operating results. In addition, COVID-19 has resulted in a widespread health crisis that adversely affected the economies and financial markets of many other countries. As a result of COVID-19, the Company has experienced a decrease in revenue for the three months ended March 31, 2022.

As a result of the business interruption experienced to date, management has taken steps to reduce expenses across all areas of its operations, including payroll, marketing, sales and warehousing expenses. The extent to which we are affected by COVID-19 will largely depend on future developments and restrictions which may disrupt interactions with customers, suppliers, staff and advisors which cannot be accurately predicted, including the duration and scope of the pandemic, governmental and business responses to the pandemic and the impact on the global economy, our customers’ demand for our products, and our ability to provide our products. We continue to monitor the effects of the pandemic on our business.

Results of Operations

The information set forth below should be read in conjunction with the financial statements and accompanying notes elsewhere in this Report.

Three months ended March 31, 2022 and 2021

Net Revenue. Revenue for the three months ended March 31, 2022 increased 114.2% to $5,324,302 as compared to $2,485,891 for the three months ended March 31, 2021 as a result of higher market prices of our product together with sales of our new TOBC and soft-shell crab operations.

Cost of Goods Sold. Cost of goods sold for the three months ended March 31, 2022 increased to $4,836,563 as compared to $2,183,112 for the three months ended March 31, 2021. The increase is attributable to price increases.

Gross Profit. Gross profit for the three months ended March 31, 2022 increased to $487,739 as compared to $302,779 in the three months ended March 31, 2021. This increase is attributable to higher market prices of our product together with sales of our new TOBC and soft-shell crab operations.

Commissions Expense. Commissions expense decreased to $0 for the three months ended March 31, 2022 from $4,794 for the three months ended March 31, 2021. This decrease was due to no commissionable revenues for the three months ended March 31, 2022.

Salaries and Wages Expense. Salaries and wages expense increased to $575,449 for the three months ended March 31, 2022 as compared to $380,596 for the three months ended March 31, 2021. This increase is mainly attributable to the acquisition of TOBC and soft-shell crab operations.

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Depreciation and Amortization. Depreciation and amortization expense increased to $164,595 for the three months ended March 31, 2022 as compared to $44,079 the three months ended March 31, 2021. The increase is attributable to higher depreciation due to the acquisition of TOBC and soft-shell crab operations.

Other Operating Expense. Other operating expense increased to $596,474 for the three months ended March 31, 2022 from $317,398 for the three months ended March 31, 2021. This increase is mainly attributable to legal and professional fees and stock compensation expense associated with the acquisition of the soft-shell crab operations.

Other Income. Other income decreased for the three months ended March 31, 2022 to $29,629 from $76,518 for the three months ended March 31, 2021. This decrease is mainly attributable to the ACF Finco I, LP loan paid off in 2021 and eliminating the loan commitment settlement.

Interest Expense. Interest expense increased to $234,716 for the three months ended March 31, 2022 from $110,534 for the three months ended March 31, 2021. The increase is attributable to the amortization of Lind convertible debt discount.

Net Loss. Net loss was $1,053,866 for the three months ended March 31, 2022 as compared to $478,104 for the three months ended March 31, 2021. The increase in net loss is primarily attributable to increases in salaries and wages and other expenses in connection with the acquisition of the soft-shell crab operations.

Liquidity and Capital Resources

The Company had cash of $2,980,672 as of March 31, 2022. At March 31, 2022, the Company had a working capital surplus of $5,561,782, including $910,000 in stockholder loans that are subordinated to its working capital line of credit, and the Company’s primary sources of liquidity consisted of inventory of $3,041,184 and accounts receivable of $3,854,439.

The Company has historically financed its operations through the cash flow generated from operations, capital investment, notes payable and a working capital line of credit.

The COVID-19 pandemic has caused significant disruptions to the global financial markets. The full impact of the COVID-19 outbreak continues to evolve, is highly uncertain and subject to change. The Company continues to estimate the effects of the COVID-19 outbreak on its operations and financial. While significant uncertainty remains, the Company believes that the COVID-19 outbreak will continue to have a negative impact on the ability to raise financing and access capital.

Cash (Used in) Provided by Operating Activities. Cash used in operating activities during the three months ended March 31, 2022 was $3,013,910 as compared to cash provided by operating activities of $462,624 for the three months ended March 31, 2021. The decrease is attributable to the decrease in the changes in inventory of $2,105,665 and receivables of $2,987,795 netted against the increase in changes in other current assets of $1,616,146 and payables of $298,528 for the three months ended March 31, 2022 compared with the three months ended March 31, 2021.

Cash (Used in) Investing Activities. Cash used in investing activities for the three months ended March 31, 2022 was $472,352 as compared to cash used in investing activities of $0 for the three months ended March 31, 2021. The increase was mainly attributable to the acquisition of the soft-shell crab operation for the three months ended March 31, 2022.

Cash Provided by (Used in) Financing Activities. Cash provided by financing activities for the three months ended March 31, 2022 was $5,256,418 as compared to cash used in financing activities of $653,675 for the three months ended March 31, 2021. The increase is mainly attributable to the convertible debt net proceeds of $4,762,855 and proceeds from common stock warrants exercised of $250,000.

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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 $5,000,000 revolving line of credit for a term of thirty-six months, renewable annually for one-year periods thereafter. Amounts due under the line of credit are represented by a revolving credit note issued to Lighthouse by the Borrowers. As of March 31, 2022, the Company was in compliance with all financial covenants under the Loan Agreement, except for the requirement to maintain a greater than $50,000 cash flow. Lighthouse has notified the Borrowers as to this default but has elected not to exercise its rights and remedies under the loan documents with the Borrowers.

The advance rate of the revolving line of credit is 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 will never exceed 50% of the outstanding balance. Interest on the line of credit is the prime rate (with a floor of 3.25%), plus 3.75%. The Borrowers paid Lighthouse a facility fee of $50,000 in three instalments of $16,667 on March, April and May 2021 and paid an additional facility fee of $25,000 on March 31, 2022, which will continue to be required on each anniversary of March 31, 2021. In order to increase imports to meet customer demand, on January 14, 2022, the maximum inventory advance under the line of credit was adjusted from 50% to 70% until June 30, 2022, 65% to July 31, 2022, 60% to August 31, 2022 and 55% to September 30, 2022 at a monthly fee of 0.25% on the portion of the loan in excess of the 50% advance. As of March 31, 2022, the interest rate was 7.25%.

The line of credit is secured by a first priority security interest on all the assets of each Borrower. Pursuant to the terms of a guaranty agreement, the Company guaranteed the obligations of the Borrowers under the note and John Keeler, Executive Chairman and Chief Executive Officer of the Company, provided a personal guaranty of up to $1,000,000 to Lighthouse.

The outstanding balance owed to Lighthouse as of March 31, 2022 was $2,746,763.

John Keeler Promissory Notes – Subordinated

From January 2006 through May 2017, Keeler & Co issued 6% demand promissory notes in the aggregate principal amount of $2,910,000 to John Keeler, our Chief Executive Officer and Executive Chairman. As of March 31, 2022, approximately $910,000 of principal remains outstanding and approximately $14,400 of interest was paid under the notes during the three months ended March 31, 2022. These notes are subordinated to the Lighthouse note. After satisfaction of the terms of the subordination, the Company may prepay the notes at any time first against interest due thereunder. If an event of default occurs under the notes, interest will accrue at 18% per annum and if not paid within 10 days of payment becoming due, the holder of the note is entitled to a late fee of 5% of the amount of payment not timely made. The Company made principal payments of $50,000 during the three months ended March 31, 2022.

Underwritten Offering

On November 2, 2021, the Company entered into an underwriting agreement (the “Underwriting Agreement”) with Newbridge Securities Corporation (“Newbridge”), as representative of the underwriters listed therein (the “Underwriters”), pursuant to which the Company agreed to sell to the Underwriters in a firm commitment underwritten public offering (the “Offering”) an aggregate of 800,000 shares of the Company’s common stock, at a public offering price of $5.00 per share. In addition, the Underwriters were granted an over-allotment option (the “Over-allotment Option”) for a period of 45 days to purchase up to an additional 120,000 shares of common stock. The Offering closed on November 5, 2021 and the common stock began trading on the NASDAQ Capital Market under the symbol “BSFC” on November 3, 2021. The Over-allotment Option was not exercised by the Underwriters.

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The net proceeds to the Company from the Offering, after deducting the underwriting discount, the underwriters’ fees and expenses and the Company’s estimated Offering expenses, were approximately $3,600,000. The Company is using the net proceeds from the Offering for general corporate purposes, including working capital, operating expenses, and capital expenditures. The Company may also use a portion of the net proceeds to acquire or make investments in businesses, products, and offerings, although the Company does not have agreements or commitments for any material acquisitions or investments at this time.

In addition, pursuant to the terms of the Underwriting Agreement and related “lock-up” agreements, each director, executive officer, and beneficial owners of over 10% of the Company’s common stock (for a period of 180 days after the date of the final prospectus relating to the Offering), have agreed, subject to customary exceptions, not to sell, transfer or otherwise dispose of securities of the Company, without the prior written consent of Newbridge.

On November 5, 2021, in connection with the Offering, the Company issued a warrant to purchase an aggregate of 56,000 shares of common stock at an exercise price of $5.00 per share to Newbridge. Such warrant is exercisable on a date which is 180 days from the closing of the Offering and expires on November 11, 2024.

Lind Global Fund II LP investment

On January 24, 2022, we entered into a securities purchase agreement with Lind Global Fund II LP, a Delaware limited partnership (“Lind”), pursuant to which the Company issued Lind a secured, two-year, interest free convertible promissory note in the principal amount of $5,750,000 and a five-year warrant to purchase 1,000,000 shares of common stock at an exercise price of $4.50 per share, subject to customary adjustments. The warrant provides for cashless exercise and for full ratchet anti-dilution if the Company issues securities at less than $4.50 per share. In connection with the issuance of the note and the warrant, the Company paid a $150,000 commitment fee to Lind and approximately $87,000 of debt issuance costs.

The outstanding principal under the note is payable commencing July 24, 2022, in 18 consecutive monthly installments of $333,333, at the Company’s option, in cash or shares of common stock at a price (the “Repayment Share Price”) based on 90% of the five lowest volume weighted average prices (“VWAP”) during the 20-days prior to the payment date with a floor price of $1.50 per share (the “Floor Price”), or a combination of cash and stock provided that if at any time the Repayment Share Price is deemed to be the Floor Price, then in addition to shares, the Company will pay Lind an additional amount in cash as determined pursuant to a formula contained in the note.

In connection with the issuance of the note, the Company granted Lind a first priority security interest and lien on all of its assets, including a pledge on its shares in John Keeler & Co. Inc., its wholly-owned subsidiary, pursuant to a security agreement and a stock pledge agreement with Lind, dated January 24, 2022. Each subsidiary of the Company also granted a second priority security interest in all of its respective assets.

The note is mandatorily payable prior to maturity if the Company issues any preferred stock (with certain exceptions described in the note) or, if the Company or its subsidiaries issues any indebtedness other than certain amounts under the current line of credit facility with Lighthouse. The Company also agreed not to issue or sell any securities with a conversion, exercise or other price based on a discount to the trading prices of the Company’s stock or to grant the right to receive additional securities based on future transactions of the Company on terms more favorable than those granted to Lind, with certain exceptions.

Commencing on the earlier of July 24, 2022 or the effectiveness of the registration statement covering Lind’s shares, if the Company fails to maintain the listing and trading of its common stock, the note will become due and payable and Lind may convert all or a portion of the outstanding principal at the lower of the then current conversion price and 80% of the average of the 3-day VWAP during the 20 days prior to delivery of the conversion notice.

If a resale registration statement is not effective covering the shares of common stock issuable to Lind in 180 days following January 24, 2022, the note will be in default. Lind was also granted piggyback registration rights.

If the Company engages in capital raising transactions, Lind has the right to purchase up to 10% of the new securities.

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The note is convertible into common stock at $5.00 per share, subject to certain adjustments, at any time after the earlier of six months from issuance or the date the registration statement is effective; provided that no such conversion may be made that would result in beneficial ownership by Lind and its affiliates of more than 4.99% of the Company’s outstanding shares of common stock. If shares are issued by the Company at less than the conversion price, the conversion price will be reduced to such price.

Upon a change of control of the Company, as defined in the note, Lind has the right to require the Company to prepay 10% of the outstanding principal amount of the note. The Company may prepay the outstanding principal amount of the note, provided Lind may convert up to 25% of the principal amount of the note at a price per share equal to the lesser of the Repayment Share Price or the conversion price. The Note contains certain negative covenants, including restricting the Company from certain distributions, stock repurchases, borrowing, sale of assets, loans and exchange offers.

Upon an event of default as described in the note, the note will become immediately due and payable at a default interest rate of 125% of the then outstanding principal amount. Upon a default, all or a portion of the outstanding principal amount may be converted into shares of common stock by Lind at the lower of the conversion price and 80% of the average of the three lowest daily VWAPs.

Off-Balance Sheet Arrangements

We currently have no off-balance sheet arrangements.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

We are a smaller reporting company as defined by Rule 12b-2 of the Exchange Act and are not required to provide the information under this item.

ITEM 4. CONTROLS AND PROCEDURES

Evaluation of Disclosure Controls and Procedures

Under the supervision and with the participation of our management, including our principal executive officer and principal financial officer, as of March 31, 2022, we conducted an evaluation of our disclosure controls and procedures, as such term is defined under Rule 13a-15(e) and Rule 15d-15(e) promulgated under the Securities Exchange Act of 1934, as amended. Based on this evaluation our principal executive officer and principal financial officer have concluded that based on the material weaknesses discussed below our disclosure controls and procedures were not effective as of such date to ensure that information required to be disclosed by us in reports filed or submitted under the Securities Exchange Act were recorded, processed, summarized, and reported within the time periods specified in the SEC’s rules and forms and that our disclosure controls are not effectively designed to ensure that information required to be disclosed by us in the reports that we file or submit under the Securities Exchange Act is accumulated and communicated to management, including our principal executive officer and principal financial officer, or persons performing similar functions, as appropriate to allow timely decisions regarding required disclosure.

The matters involving internal controls and procedures that our management considered to be material weaknesses under the standards of the Public Company Accounting Oversight Board were:

● ineffective controls over the Company’s financial close and reporting process; and

● inadequate segregation of duties consistent with control objectives, including lack of personnel resources and technical accounting expertise within the accounting function of the Company.

Management believes that the material weaknesses that were identified did not have an effect on our financial results. However, management believes that these weaknesses, if not properly remediated, could result in a material misstatement in our financial statements in future periods.

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Management’s Remediation Initiatives

In an effort to remediate the identified material weaknesses and other deficiencies and enhance our internal controls, we plan to further initiate, the following measures, subject to the availability of required resources:

● We plan to create a position to segregate duties consistent with control objectives and hire personnel resources with technical accounting expertise within the accounting function; and

● We plan to create an internal control framework that will address financial close and reporting process, among other procedures.

Changes in Internal Control over Financial Reporting

During the period covered by this Quarterly Report, there were no changes in our internal controls over financial reporting that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

PART II – OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

There are no material pending legal proceedings to which we are a party or in which any director, officer or affiliate of ours, any owner of record or beneficially of more than 5% of any class of our voting securities, or security holder is a party adverse to us or has a material interest adverse to us.

ITEM 1A. RISK FACTORS

We are a smaller reporting company as defined by Rule 12b-2 of the Exchange Act and are not required to provide the information under this item.

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

Except as set forth below, there were no sales of equity securities sold during the period covered by this Report that were not registered under the Securities Act and were not previously reported in a Current Report on Form 8-K filed by the Company.

On January 24, 2022, the Company issued 125,000 shares of common stock to an investor upon the exercise of warrants for total proceeds of $250,000.

In connection with the issuance of the $5,750,000 promissory note to Lind pursuant to a securities purchase agreement, on January 24, 2022, the Company issued Lind a five-year warrant to purchase 1,000,000 shares of common stock at an exercise price of $4.50 per share. The warrant provides for cashless exercise and full ratchet anti-dilution if the Company issues securities at less than $4.50 per share.

On February 3, 2022, the Company issued 167,093 shares to Gault Seafood as partial consideration for the purchase of certain Gault Seafood assets.

On April 1, 2022, the Company issued 2,871 shares of common stock to the designee of Clear Think Capital for consulting services provided to the Company.

On April 4, 2022, the Company issued 9,569 shares of common stock to SRAX, Inc. for consulting services provided to the Company.

On April 5, 2022, the Company issued an aggregate of 24,816 shares of common stock to Newbridge Securities Corporation and its affiliates for consulting services provided to the Company.

On May 1, 2022, the Company issued 3,922 shares of common stock with a fair value of $6,000 to the designee of Clear Think Capital for consulting services provided to the Company.

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The above issuances did not involve any underwriters, underwriting discounts or commissions, or any public offering and we believe are exempt from the registration requirements of the Securities Act of 1933 by virtue of Section 4(2) thereof and/or Regulation D promulgated thereunder.

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

None.

ITEM 4. MINE SAFETY DISCLOSURES

Not applicable.

ITEM 5. OTHER INFORMATION

None.

ITEM 6. EXHIBITS

Exhibit No.	Description
31.1	Certification of Principal Executive Officer pursuant to Exchange Act Rules 13a-14(a) and 15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
31.2	Certification of Principal Financial Officer pursuant to Exchange Act Rules 13a-14(a) and 15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
32.1	Certifications of Principal Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
32.2	Certifications of Principal Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
101.INS	Inline XBRL Instance Document
101.SCH	Inline XBRL Taxonomy Extension Schema Document
101.CAL	Inline XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF	Inline XBRL Taxonomy Extension Definition Linkbase Document
101.LAB	Inline XBRL Taxonomy Extension Label Linkbase Document
101.PRE	Inline XBRL Taxonomy Extension Presentation Linkbase Document
104	Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	BLUE STAR FOODS CORP.
Dated: May 13, 2022	By:	/s/ John Keeler
	Name:	John Keeler
	Title:	Executive Chairman and Chief Executive Officer (Principal Executive Officer)
Dated: May 13, 2022	By:	/s/ Silvia Alana
	Name:	Silvia Alana
	Title:	Chief Financial Officer
		(Principal Financial and Accounting Officer)

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EX-31.1

EXHIBIT 31.1

CERTIFICATION OF CHIEF EXECUTIVE OFFICER

PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT AND RULE 13A-14(A)

OR 15D-14(A) UNDER THE SECURITIES EXCHANGE ACT OF 1934

I, John Keeler, certify that:

1.	I have reviewed this quarterly report on Form 10-Q of Blue Star Foods Corp.
2.	Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3.	Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
4.	I am responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a)	Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under my supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to me by others within those entities, particularly during the period in which this report is being prepared;
(b)	Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under my supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
(c)	Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report my conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
(d)	Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. I have disclosed, based on my most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent functions):

(a)	All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
(b)	Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: May 13, 2022	/s/ John Keeler
	John Keeler
	Executive Chairman and Chief Executive Officer (Principal Executive Officer)

EX-31.2

EXHIBIT 31.2

CERTIFICATION OF CHIEF FINANCIAL OFFICER

PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT AND RULE 13A-14(A)

OR 15D-14(A) UNDER THE SECURITIES EXCHANGE ACT OF 1934

I, Silvia Alana, certify that:

1.	I have reviewed this quarterly report on Form 10-Q of Blue Star Foods Corp.;
2.	Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3.	Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
4.	I am responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a)	Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under my supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to me by others within those entities, particularly during the period in which this report is being prepared;
(b)	Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under my supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
(c)	Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report my conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
(d)	Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. I have disclosed, based on my most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent functions):

(a)	All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
(b)	Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: May 13, 2022	/s/ Silvia Alana
	Silvia Alana
	Chief Financial Officer (Principal Financial and Accounting Officer)

EX-32.1

EXHIBIT 32.1

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report on Form 10-Q of Blue Star Foods Corp. (the “Company”), for the quarter ended March 31, 2022, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, John Keeler, Executive Chairman and Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

(1)	The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
(2)	The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

A signed original of this written statement required by Section 906 has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.

Date: May 13, 2022	By:	/s/ John Keeler
	Name:	John Keeler
	Title:	Executive Chairman and Chief Executive Officer
		(Principal Executive Officer)

EX-32.2

EXHIBIT 32.2

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report on Form 10-Q of Blue Star Foods Corp. (the “Company”), for the quarter ended March 31, 2022, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Silvia Alana, Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

(1)	The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
(2)	The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

A signed original of this written statement required by Section 906 has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.

Date: May 13, 2022	By:	/s/ Silvia Alana
	Name:	Silvia Alana
	Title:	Chief Financial Officer
		(Principal Financial and Accounting Officer)

XML

Cover - shares	3 Months Ended
	Mar. 31, 2022	May 13, 2022
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Mar. 31, 2022
Document Fiscal Period Focus	Q1
Document Fiscal Year Focus	2022
Current Fiscal Year End Date	--12-31
Entity File Number	000-55903
Entity Registrant Name	BLUE STAR FOODS CORP.
Entity Central Index Key	0001730773
Entity Tax Identification Number	82-4270040
Entity Incorporation, State or Country Code	DE
Entity Address, Address Line One	3000 NW 109th Avenue
Entity Address, City or Town	Miami
Entity Address, State or Province	FL
Entity Address, Postal Zip Code	33172
City Area Code	(860)
Local Phone Number	633-5565
Title of 12(b) Security	Common Stock, $0.0001 par value
Trading Symbol	BSFC
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	true
Elected Not To Use the Extended Transition Period	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		25,024,974

XML

Consolidated Balance Sheets - USD ($)	Mar. 31, 2022	Dec. 31, 2021
CURRENT ASSETS
Cash and cash equivalents	$ 2,980,672	$ 1,155,513
Accounts receivable, net	3,854,439	1,231,181
Inventory, net	3,041,184	2,119,441
Advances to related party	1,448,750	1,422,750
Other current assets	2,132,036	3,702,661
Total Current Assets	13,457,081	9,631,546
RELATED PARTY LONG-TERM RECEIVABLE	455,545	455,545
FIXED ASSETS, net	2,068,536	1,904,403
RIGHT OF USE ASSET	63,951	71,128
INTANGIBLE ASSETS, net
Trademarks	1,103,916	1,125,074
Customer relationships	2,633,020	2,082,757
Non-compete agreements	96,136	104,927
Total Intangible Assets	3,833,072	3,312,758
GOODWILL	445,395	445,395
OTHER ASSETS	129,261	124,634
TOTAL ASSETS	20,452,841	15,945,409
CURRENT LIABILITIES
Accounts payable and accruals	1,382,578	1,794,223
Working capital line of credit	2,746,763	2,368,200
Deferred income	112,096	109,414
Current maturities of long-term debt, net	1,326,527
Current maturities of lease liabilities	30,657	30,583
Current maturities of related party long-term notes	440,000	475,000
Current maturity of loan payable	32,029
Related party notes payable - subordinated	910,000	960,000
Other current liabilities	914,649	1,054,649
Total Current Liabilities	7,895,299	6,792,069
LONG-TERM LIABILITIES
Long-term lease liability	32,822	40,109
Long-term debt, net	2,653,054	31,263
Related party long-term notes	150,000	175,000
TOTAL LIABILITIES	10,731,175	7,038,441
STOCKHOLDERS’ EQUITY
Series A 8% cumulative convertible preferred stock, $0.0001 par value; 10,000 shares authorized, 0 shares issued and outstanding as of March 31, 2022, and 0 shares issued and outstanding as of December 31, 2021
Common stock, $0.0001 par value, 100,000,000 shares authorized; 24,983,796 shares issued and outstanding as of March 31, 2022, and 24,671,318 shares issued and outstanding as of December 31, 2021	2,514	2,480
Additional paid-in capital	26,935,998	25,102,879
Accumulated other comprehensive loss	(18,829)	(54,240)
Accumulated deficit	(17,198,017)	(16,144,151)
TOTAL STOCKHOLDERS’ EQUITY	9,721,666	8,906,968
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$ 20,452,841	$ 15,945,409

XML

Consolidated Balance Sheets (Parenthetical) - $ / shares	3 Months Ended	12 Months Ended
	Mar. 31, 2022	Dec. 31, 2021
Common stock par value	$ 0.0001	$ 0.0001
Common stock, shares authorized	100,000,000	100,000,000
Common stock, shares issued	24,983,796	24,671,318
Common stock, shares outstanding	24,983,796	24,671,318
Series A 8% Cumulative Convertible Preferred Stock [Member]
Preferred stock dividend Percentage	8.00%	8.00%
Preferred stock par value	$ 0.0001	$ 0.0001
Preferred stock, shares authorized	10,000	10,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0

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Consolidated Statements of Operations and Comprehensive Loss (Unaudited) - USD ($)	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Income Statement [Abstract]
REVENUE, NET	$ 5,324,302	$ 2,485,891
COST OF REVENUE	4,836,563	2,183,112
GROSS PROFIT	487,739	302,779
COMMISSIONS		4,794
SALARIES AND WAGES	575,449	380,596
DEPRECIATION AND AMORTIZATION	164,595	44,079
OTHER OPERATING EXPENSES	596,474	317,398
LOSS FROM OPERATIONS	(848,779)	(444,088)
OTHER INCOME	29,629	76,518
INTEREST EXPENSE	(234,716)	(110,534)
NET LOSS	(1,053,866)	(478,104)
DIVIDEND ON PREFERRED STOCK		28,260
NET LOSS ATTRIBUTABLE TO COMMON STOCKHOLDERS	(1,053,866)	(506,364)
COMPREHENSIVE LOSS:
CHANGE IN FOREIGN CURRENCY TRANSLATION ADJUSTMENT	35,411
COMPREHENSIVE LOSS	$ (1,018,455)	$ (478,104)
Loss per common share:
Net loss per common share - basic and diluted	$ (0.04)	$ (0.03)
Weighted average common shares outstanding - basic and diluted	24,304,881	19,594,888

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Consolidated Statements of Changes in Stockholders' Deficit (Unaudited) - USD ($)	Preferred Stock [Member] Series A Preferred Stock [Member]	Common Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	AOCI Attributable to Parent [Member]	Total
Beginning balance at Dec. 31, 2020		$ 1,958	$ 13,488,836	$ (13,510,517)		$ (19,723)
Beginning balance, shares at Dec. 31, 2020	1,413	19,580,721
Stock based compensation			30,319			30,319
Common stock issued for service		$ 5	96,242			96,247
Common stock issued for service, shares		40,465
Net Loss				(478,104)		(478,104)
Cumulative translation adjustment
Series A preferred 8% dividend issued in common stock		$ 1	28,259	(28,260)
Series A preferred 8% dividend issued in common stock, shares		11,975
Ending balance at Mar. 31, 2021		$ 1,964	13,643,656	(14,016,881)		(371,261)
Ending balance, shares at Mar. 31, 2021	1,413	19,633,161
Beginning balance at Dec. 31, 2021		$ 2,480	25,102,879	(16,144,151)	(54,240)	8,906,968
Beginning balance, shares at Dec. 31, 2021		24,671,318
Stock based compensation			193,631			193,631
Warrants issued on convertible debt note			956,301			956,301
Common stock issued for service		$ 4	73,967			73,971
Common stock issued for service, shares		20,385
Common stock issued for asset acquisition		$ 17	359,233			359,250
Common stock issued for asset acquisition, shares		167,093
Common stock issued from exercise of warrants		$ 13	249,987			250,000
Common stock issued from exercise of warrants, shares		125,000
Net Loss				(1,053,866)		(1,053,866)
Cumulative translation adjustment					35,411	35,411
Ending balance at Mar. 31, 2022		$ 2,514	$ 26,935,998	$ (17,198,017)	$ (18,829)	$ 9,721,666
Ending balance, shares at Mar. 31, 2022		24,983,796

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Consolidated Statements of Changes in Stockholders' Deficit (Unaudited) (Parenthetical)	3 Months Ended	12 Months Ended
	Mar. 31, 2022	Dec. 31, 2021
Series A 8% Cumulative Convertible Preferred Stock [Member]
Preferred stock dividend Percentage	8.00%	8.00%

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Consolidated Statements of Cash Flows (Unaudited) - USD ($)	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Loss	$ (1,053,866)	$ (478,104)
Adjustments to reconcile net loss to net cash (used in) provided by operating activities:
Stock based compensation	193,631	30,319
Common stock issued for service	73,971	96,247
Depreciation of fixed assets	55,628	1,085
Amortization of intangible assets	95,086	42,327
Amortization of loan costs	13,881	667
Amortization of debt and warrant discount and issuance costs	173,027
Lease expense	7,177	7,086
Bad debt expense	322	90
Allowance for inventory obsolescence		43,090
Changes in operating assets and liabilities:
Accounts receivables	(2,623,580)	364,215
Inventories	(921,743)	1,183,922
Advances to related parties	(26,000)
Other current assets	1,570,625	(45,521)
Right of use liability	(7,213)	(7,123)
Other assets		(14,341)
Accounts payable and accruals	(427,538)	(726,066)
Deferred income	2,682
Other current liabilities	(140,000)	(35,269)
Net Cash (Used in) Provided by Operating Activities	(3,013,910)	462,624
CASH FLOWS FROM INVESTING ACTIVITIES:
Net cash paid for acquisition	(398,482)
Purchases of fixed assets	(73,870)
Net Cash (Used in) Investing Activities	(472,352)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from common stock warrants exercised	250,000
Proceeds from working capital line of credit	3,009,349	2,508,585
Proceeds from PPP loan		371,944
Proceeds from convertible debt	4,762,855
Repayments of working capital line of credit	(2,630,786)	(3,534,204)
Repayments of related party notes payable	(110,000)
Payment of loan costs	(25,000)
Net Cash Provided by (Used in) Financing Activities	5,256,418	(653,675)
Effect of Exchange Rate Changes on Cash	55,003
NET INCREASE (DECREASE) IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH	1,825,159	(191,051)
CASH, CASH EQUIVALENTS AND RESTRICTED CASH – BEGINNING OF PERIOD	1,155,513	337,687
CASH, CASH EQUIVALENTS AND RESTRICTED CASH – END OF PERIOD	2,980,672	146,636
Supplemental Disclosure of Cash Flow Information
Cash paid for interest	63,490	291,038
SUPPLEMENTAL DISCLOSURE OF NON-CASH ACTIVITY
Series A preferred 8% dividend issued in common stock		28,260
Warrants issued for convertible debt	956,301
Common stock issued for asset acquisition	$ 359,250

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Company Overview

3 Months Ended

Mar. 31, 2022

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Company Overview

Note 1. Company Overview

Blue Star Foods Corp., a Delaware corporation (“we”, “our”, the “Company”), is an international sustainable marine protein company based in Miami, Florida that imports, packages and sells refrigerated pasteurized crab meat, and other premium seafood products. The Company’s main operating business, John Keeler & Co., Inc. (“Keeler & Co.”) was incorporated in the State of Florida in May 1995. The Company’s current source of revenue is importing blue and red swimming crab meat primarily from Indonesia, Philippines and China and distributing it in the United States and Canada under several brand names such as Blue Star, Oceanica, Pacifika, Crab & Go, First Choice, Good Stuff and Coastal Pride Fresh, and steelhead salmon produced under the brand name Little Cedar Farms for distribution in Canada.

On November 26, 2019, Keeler & Co., a wholly-owned direct subsidiary of the Company, entered into an Agreement and Plan of Merger and Reorganization (the “Coastal Merger Agreement”) with Coastal Pride Company, Inc., a South Carolina corporation, Coastal Pride Seafood, LLC, a Florida limited liability company and newly-formed, wholly-owned subsidiary of the Purchaser (the “Acquisition Subsidiary” and, upon the effective date of the Merger, the “Surviving Company” or “Coastal Pride”), and The Walter F. Lubkin, Jr. Irrevocable Trust dated January 8, 2003 (the “Trust”), Walter F. Lubkin III (“Lubkin III”), Tracy Lubkin Greco (“Greco”) and John C. Lubkin (“Lubkin”), constituting all of the shareholders of Coastal Pride Company, Inc. immediately prior to the Coastal Merger (collectively, the “Sellers”). Pursuant to the terms of the Coastal Merger Agreement, Coastal Pride Company, Inc. merged with and into the Acquisition Subsidiary, with the Acquisition Subsidiary being the surviving company (the “Coastal Merger”).

Coastal Pride is a seafood company, based in Beaufort, South Carolina, that imports pasteurized and fresh crabmeat sourced primarily from Mexico and Latin America and sells premium branded label crabmeat throughout North America.

On April 27, 2021, the Company entered into a stock purchase agreement (the “Purchase Agreement”) with TOBC, and Steve Atkinson and Janet Atkinson (the “Sellers”), the owners of all of the capital stock of TOBC (the “TOBC Shares”), pursuant to which the Company acquired all of the TOBC Shares from the Sellers for an aggregate purchase price of CAD$4,000,000 for: (i) an aggregate of CAD$1,000,000 in cash (with each Seller receiving a pro rata amount based upon the total number of TOBC Shares held by such Seller); (ii) promissory notes in the aggregate principal amount of CAD$200,000 (the “Notes”) with the principal amount of each Seller’s Note based on such Seller’s pro rata portion of the TOBC Shares); and (iii) 987,741 shares of the Company’s common stock (representing CAD$2,800,000 of shares based on USD$2.30 per share) with each Seller receiving a pro rata portion of such shares based upon the total number of TOBC Shares held by such Seller.

On June 24, 2021, the Purchase Agreement was amended (the “Amendment”), to increase the Purchase Price up to an aggregate of CAD$5,000,000 and the acquisition closed. Pursuant to the Amendment, on August 3, 2021, an aggregate of 344,957 shares of the Company’s common stock (representing CAD$1,000,000 of additional shares calculated at USD$2.30 per share) was put in escrow until the 24-month anniversary of the closing. If, within 24 months of the closing, TOBC has cumulative revenue of at least CAD$1,300,000, the Sellers will receive all of the escrowed shares. If, as of the 24-month anniversary of the closing, TOBC has cumulative revenue of less than CAD$1,300,000, the Sellers will receive a prorated number of the escrowed shares based on the actual cumulative revenue of TOBC as of such date.

TOBC is a land-based recirculating aquaculture systems salmon farming operation, based in Nanaimo, British Columbia, Canada, which sells its steelhead salmon to distributors in Canada.

On February 3, 2022, Coastal Pride entered into an asset purchase agreement with Gault Seafood, LLC, a South Carolina limited liability company (“Gault Seafood”), and Robert J. Gault II, President of Gault Seafood (“Gault”) pursuant to which Coastal Pride acquired all of the Seller’s right, title and interest in and to assets relating to Gault Seafood’s soft-shell crab operations, including intellectual property, equipment, vehicles and other assets used in connection with the soft-shell crab business. Coastal Pride did not assume any liabilities in connection with the acquisition. The purchase price for the assets consisted of a cash payment in the amount of $359,250 and the issuance of 167,093 shares of common stock of the Company with a fair value of $359,250. Such shares are subject to a leak-out agreement pursuant to which Gault Seafood may not sell or otherwise transfer the shares until February 3, 2023.

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Basis of Presentation and Summary of Significant Accounting Policies

3 Months Ended

Mar. 31, 2022

Accounting Policies [Abstract]

Basis of Presentation and Summary of Significant Accounting Policies

Note 2. Basis of Presentation and Summary of Significant Accounting Policies

Basis of Presentation

The following unaudited interim consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). Accordingly, such interim financial statements do not include all the information and footnotes required by accounting principles generally accepted in the United States (“GAAP”) for complete annual financial statements. The information furnished reflects all adjustments, consisting only of normal recurring items which are, in the opinion of management, necessary in order to make the financial statements not misleading. The results of operations for the interim periods are not necessarily indicative of the results to be expected for the full year. The consolidated balance sheet as of December 31, 2021 has been derived from the Company’s annual financial statements that were audited by an independent registered public accounting firm but does not include all of the information and footnotes required for complete annual financial statements. These financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto which are included in our Annual Report on Form 10-K for the year ended December 31, 2021 filed with the SEC on March 31, 2022 for a broader discussion of our business and the risks inherent in such business.

Advances to Suppliers and Related Party

In the normal course of business, the Company may advance payments to its suppliers, inclusive of Bacolod Blue Star Export Corp. (“Bacolod”), a related party based in the Philippines. These advances are in the form of prepayments for products that will ship within a short window of time. In the event that it becomes necessary for the Company to return products or adjust for quality issues, the Company is issued a credit by the vendor in the normal course of business and these credits are also reflected against future shipments.

As of March 31, 2022, and December 31, 2021, the balance due from the related party for future shipments was approximately $1,300,000. No new purchases have been made from Bacolod during the three months ended March 31, 2022. Cost of revenue related to inventories purchased from Bacolod represented approximately $0 and $170 of total cost of revenue for the three months ended March 31, 2022 and 2021, respectively.

Revenue Recognition

The Company recognizes revenue in accordance with Accounting Standards Codification (ASC) 606, Revenue from Contracts with Customers, as such, we record revenue when our customer obtains control of the promised goods or services in an amount that reflects the consideration which the Company expects to receive in exchange for those goods or services. The Company’s source of revenue is from importing blue and red swimming crab meat primarily from Indonesia, the Philippines and China and distributing it in the United States and Canada under several brand names such as Blue Star, Oceanica, Pacifika, Crab & Go, First Choice, Good Stuff and Coastal Pride Fresh, and steelhead salmon produced by TOBC under the brand name Little Cedar Farms for distribution in Canada. The Company sells 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 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.

Goodwill and Other Intangible Assets

The Company accounts for business combinations under the acquisition method of accounting in accordance with ASC 805, “Business Combinations,” where the total purchase price is allocated to the tangible and identified intangible assets acquired and liabilities assumed based on their estimated fair values. The purchase price is allocated using the information currently available, and may be adjusted, up to one year from acquisition date, after obtaining more information regarding, among other things, asset valuations, liabilities assumed, and revisions to preliminary estimates. The purchase price in excess of the fair value of the tangible and identified intangible assets acquired less liabilities assumed is recognized as goodwill.

The Company reviews its indefinite lived intangibles and goodwill for impairment annually or whenever events or circumstances indicate that the carrying amount of the asset exceeds its fair value and may not be recoverable. In accordance with its policies, the Company performed an assessment of indefinite lived intangibles and goodwill and determined there was no impairment for the three months ended March 31, 2022 and 2021.

Long-lived Assets

The Company reviews long-lived assets, including finite-lived intangible assets, for indicators of impairment whenever events or changes in circumstances indicate that the carrying value may not be recoverable. Cash flows expected to be generated by the related assets are estimated over the asset’s useful life on an undiscounted basis. If the evaluation indicates that the carrying value of the asset may not be recoverable, the potential impairment is measured using fair value. Impairment losses for assets to be disposed of, if any, are based on the estimated proceeds to be received, less costs of disposal.

In accordance with its policies, the Company performed an assessment of its finite-lived intangibles and recognized an impairment loss on customer relationships intangible asset of $374,300 for the year ended December 31, 2021. No impairment was recognized during the three months ended March 31, 2022.

Foreign Currency Exchange Rates Risk

We manage our exposure to fluctuations in foreign currency exchange rates through our normal operating activities. Our primary focus is to monitor our exposure to, and manage, the economic foreign currency exchange risks faced by our operations and realized when we exchange one currency for another. Our operations primarily utilize the U.S. dollar and Canadian dollar as their functional currencies. Movements in foreign currency exchange rates affect our financial statements.

Recently Adopted Accounting Pronouncements

ASU 2020-06, Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40).

In August 2020, the FASB issued ASU 2020-06, Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40). The ASU simplifies the accounting for certain financial instruments with characteristics of liabilities and equity. The FASB reduced the number of accounting models for convertible debt and convertible preferred stock instruments and made certain disclosure amendments to improve the information provided to users. In addition, the FASB amended the derivative guidance for the “own stock” scope exception and certain aspects of the EPS guidance. The guidance is effective for smaller reporting companies for fiscal years beginning after December 15, 2023, including interim periods within those fiscal years. Early adoption is permitted, but no earlier than fiscal years beginning after December 15, 2020, including interim periods within those fiscal years. The Company early adopted the ASU effective January 1, 2022 and applied the provisions of the ASU to the convertible note issued during the three months ended March 31, 2022.

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Going Concern

3 Months Ended

Mar. 31, 2022

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Going Concern

Note 3. Going Concern

The accompanying consolidated financial statements and notes have been prepared assuming the Company will continue as a going concern. For the three months ended March 31, 2022, the Company incurred a net loss of $1,053,866, has an accumulated deficit of $17,198,017 and working capital surplus of $5,561,782, with the current liabilities inclusive of $910,000 in stockholder loans that are subordinated to the provider of the working capital facility, and $30,657 in the current portion of the lease liability recognized. These circumstances raise substantial doubt as to the Company’s ability to continue as a going concern. The Company’s ability to continue as a going concern is dependent upon the Company’s ability to increase revenues, execute on its business plan to acquire complimentary companies, raise capital, and to continue to sustain adequate working capital to finance its operations. The consolidated financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern.

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Other Current Assets

3 Months Ended

Mar. 31, 2022

Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]

Other Current Assets

Note 4. Other Current Assets

Other current assets totaled $2,132,036 as of March 31, 2022 and $3,702,661 as of December 31, 2021. As of March 31, 2022, approximately $1.95 million of the balance was related to prepaid inventory to our suppliers. The remainder of the balance is related to prepaid insurance and other prepaid expenses.

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Fixed Assets, Net

3 Months Ended

Mar. 31, 2022

Property, Plant and Equipment [Abstract]

Fixed Assets, Net

Note 5. Fixed Assets, Net

Fixed assets comprised the following:

	March 31, 2022			December 31, 2021
Computer equipment	$	94,117		$	90,707
RAS system		2,037,160			1,963,734
Automobiles		124,655			23,188
Leasehold improvements		51,567			4,919
Total		2,307,499			2,082,548
Less: Accumulated depreciation		(238,963	)		(178,145	)
Fixed assets, net	$	2,068,536		$	1,904,403

For the three months ended March 31, 2022 and 2021, depreciation expense totaled approximately $56,000 and $1,000, respectively.

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Note 6. Intangible Assets, Net

3 Months Ended

Mar. 31, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

Note 6. Intangible Assets, Net

Note 6. Intangible Assets, Net

The following table sets forth the components of the Company’s intangible assets as of March 31, 2022:

	Amortization Period (Years)		Cost		Accumulated Amortization			Net Book Value
Intangible Assets Subject to amortization
Trademarks – Coastal Pride		14	$	850,000	$	(132,216	)	$	717,784
Trademarks – TOBC		15		406,150		(20,018	)		386,132
Customer Relationships – Coastal Pride		12		1,486,832		(236,163	)		1,250,669
Customer Relationships – TOBC		15		1,454,017		(71,666	)		1,382,351
Non-Compete Agreements – Coastal Pride		3		40,000		(23,324	)		16,676
Non-Compete Agreements – TOBC		4		97,476		(18,016	)		79,460
Total			$	4,334,475	$	(501,403	)	$	3,833,072

The aggregate amortization remaining on the intangible assets as of March 31, 2022 is as follows:

	Intangible Amortization
2022 (9 months remaining)	$	272,454
2023	$	363,272
2024	$	362,708
2025	$	328,108
2026	$	328,108
Thereafter	$	2,178,422

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Debt

3 Months Ended

Mar. 31, 2022

Debt Disclosure [Abstract]

Debt

Note 7. 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 $5,000,000 revolving line of credit for a term of thirty-six months, renewable annually for one-year periods thereafter. Amounts due under the line of credit are represented by a revolving credit note issued to Lighthouse by the Borrowers.

The advance rate of the revolving line of credit is 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 will never exceed 50% of the outstanding balance. Interest on the line of credit is the prime rate (with a floor of 3.25%), plus 3.75%. The Borrowers paid Lighthouse a facility fee of $50,000 in three instalments of $16,667 in March, April and May 2021 and will pay an additional facility fee of $25,000 on each anniversary of March 31, 2021. On January 14, 2022, the maximum inventory advance under the line of credit was adjusted from 50% to 70% until June 30, 2022, 65% to July 31, 2022, 60% to August 31, 2022 and 55% to September 30, 2022 at a monthly fee of 0.25% on the portion of the loan in excess of the 50% advance, in order to increase imports to meet customer demand. As of March 31, 2022, the interest rate was 7.25%.

The line of credit is secured by a first priority security interest on all the assets of each Borrower. Pursuant to the terms of a guaranty agreement, the Company guaranteed the obligations of the Borrowers under the note and John Keeler, Executive Chairman and Chief Executive Officer of the Company, provided a personal guaranty of up to $1,000,000 to Lighthouse. As of March 31, 2022, the Company was in compliance with all financial covenants under the Loan Agreement. except for the requirement to maintain a greater than $50,000 cash flow in the months of January and February 2022. Lighthouse has notified the Borrowers as to this default but has elected not to exercise its rights and remedies under the loan documents with the Borrowers. The outstanding balance owed to Lighthouse as of March 31, 2022 was $2,746,763.

First West Credit Union CEBA Loan

On June 24, 2021, the Company assumed a commercial term loan with First West Credit Union Canada Emergency Business Account (“CEBA”) in the principal amount of CAD$60,000 in connection with the acquisition of TOBC. The loan initially bears no interest and is due on December 31, 2025. The borrower may prepay all or part of the loan commencing November 1, 2022 and, if by December 31, 2022 the Company has paid 75% of the loan amount, the remaining 25% will be forgiven as per the loan agreement. If less than 75% of the loan amount is outstanding by December 31, 2022, the then outstanding balance will be converted to interest only monthly payments at 5.0%.

John Keeler Promissory Notes – Subordinated

The Company had unsecured promissory notes outstanding to John Keeler of approximately $910,000 of principal at March 31, 2022 and interest expense of $14,400 and $19,600 as of March 31, 2022 and 2021, respectively. These notes are payable on demand, bear an annual interest rate of 6% and are subordinated to the Lighthouse note. The Company made principal payments of $50,000 during the three months ended March 31, 2022.

Walter Lubkin Jr. Note – Subordinated

On November 26, 2019, the Company issued a five-year unsecured promissory note in the principal amount of $500,000 to Walter Lubkin Jr. as part of the purchase price for the Coastal Pride acquisition. The note bears interest at the rate of 4% per annum and is payable quarterly in an amount equal to the lesser of (i) $25,000 or (ii) 25% of the EBITDA of Coastal Pride, as determined on the first day of each quarter. The first payment was scheduled for February 26, 2020, however, the EBITDA generated for Coastal during the preceding quarter did not warrant a principal payment. This note is subordinated to the working capital line of credit. Principal payments are permitted so long as the borrower is not in default of its working capital line of credit.

On October 8, 2021, $34,205 of the outstanding principal and accrued interest to date was paid on the note by the Company.

On February 1, 2022, $29,789 of the outstanding principal and accrued interest to date was paid on the note by the Company.

Interest expense for the Walter Lubkin Jr. note totaled approximately $4,500 and $4,900 during the three months ended March 31, 2022 and 2021, respectively.

Walter Lubkin III Convertible Note – Subordinated

On November 26, 2019, the Company issued a thirty-nine-month unsecured promissory note in the principal amount of $87,842 to Walter Lubkin III as part the purchase price for the Coastal Pride acquisition. The note bears interest at the rate of 4% per annum. The note is payable in equal quarterly payments over six quarters beginning August 26, 2021. At the election of the holder, at any time after the first anniversary of the issuance of the note, the then outstanding principal and accrued interest may be converted into the Company’s common stock at a rate of $2.00 per share. This note is subordinated to the working capital line of credit. Principal payments are permitted so long as the borrower is not in default of its working capital line of credit.

On October 8, 2021, $16,257 of the outstanding principal and accrued interest to date was paid on the note by the Company.

On February 1, 2022, $15,378 of the outstanding principal and accrued interest to date was paid on the note by the Company.

Interest expense for the Walter Lubkin III note totaled approximately $600 and $800 during the three months ended March 31, 2022 and 2021, respectively.

Tracy Greco Convertible Note – Subordinated

On November 26, 2019, the Company issued a thirty-nine-month unsecured promissory note in the principal amount of $71,372 to Tracy Greco as part of the purchase price for the Coastal Pride acquisition. The note bears interest at the rate of 4% per annum. The note is payable in equal quarterly payments over six quarters beginning August 26, 2021. At the election of the holder, at any time after the first anniversary of the issuance of the note, the then outstanding principal and accrued interest may be converted into the Company’s common stock at a rate of $2.00 per share. This note is subordinated to the working capital line of credit. Principal payments are permitted so long as the borrower is not in default of its working capital line of credit.

On October 8, 2021, $13,209 of the outstanding principal and accrued interest to date was paid on the note by the Company.

On February 1, 2022, $12,494 of the outstanding principal and accrued interest to date was paid on the note by the Company.

Interest expense for the Tracy Greco note totaled approximately $500 and $700 during the three months ended March 31, 2022 and 2021, respectively.

John Lubkin Convertible Note – Subordinated

On November 26, 2019, the Company issued a thirty-nine-month unsecured promissory note in the principal amount of $50,786 to John Lubkin as part the Coastal Pride acquisition. The note bears interest at the rate of 4% per annum. The note is payable in equal quarterly payments over six quarters beginning August 26, 2021. At the election of the holder, at any time after the first anniversary of the issuance of the note, the then outstanding principal and accrued interest may be converted into the Company’s common stock at a rate of $2.00 per share. This note is subordinated to the working capital line of credit. Principal payments are permitted so long as the borrower is not in default of its working capital line of credit.

On October 8, 2021, $9,399 of the outstanding principal and accrued interest to date was paid on the note by the Company.

On February 1, 2022, $8,891 of the outstanding principal and accrued interest to date was paid on the note by the Company.

Interest expense for the John Lubkin note totaled approximately $300 and $500 during the three months ended March 31, 2022 and 2021, respectively.

Lind Global Fund II LP investment

On January 24, 2022, the Company entered into a securities purchase agreement with Lind Global Fund II LP, a Delaware limited partnership (“Lind”), pursuant to which the Company issued Lind a secured, two-year, interest free convertible promissory note in the principal amount of $5,750,000 and a five-year warrant to purchase 1,000,000 shares of common stock at an exercise price of $4.50 per share, subject to customary adjustments. The warrant provides for cashless exercise and for full ratchet anti-dilution if the Company issues securities at less than $4.50 per share. In connection with the issuance of the note and the warrant, the Company paid a $150,000 commitment fee to Lind and $87,144 of debt issuance costs. The Company recorded a total of $1,943,445 debt discount at issuance of the debt, including original issuance discount of $750,000, commitment fee $150,000, $87,144 direct issuance cost, and $956,301 related to warrants issued. Amortization expense recorded in interest expense totaled $173,027 during the three months ended March 31, 2022.

The outstanding principal under the note is payable commencing July 24, 2022, in 18 consecutive monthly installments of $333,333, at the Company’s option, in cash or shares of common stock at a price (the “Repayment Share Price”) based on 90% of the five lowest volume weighted average prices (“VWAP”) during the 20-days prior to the payment date with a floor price of $1.50 per share (the “Floor Price”), or a combination of cash and stock provided that if at any time the Repayment Share Price is deemed to be the Floor Price, then in addition to shares, the Company will pay Lind an additional amount in cash as determined pursuant to a formula contained in the note.

In connection with the issuance of the note, the Company granted Lind a first priority security interest and lien on all of its assets, including a pledge on its shares in John Keeler & Co. Inc., its wholly-owned subsidiary, pursuant to a security agreement and a stock pledge agreement with Lind, dated January 24, 2022. Each subsidiary of the Company also granted a second priority security interest in all of its respective assets.

The note is mandatorily payable prior to maturity if the Company issues any preferred stock (with certain exceptions described in the note) or, if the Company or its subsidiaries issues any indebtedness other than certain amounts under the current line of credit facility with Lighthouse. The Company also agreed not to issue or sell any securities with a conversion, exercise or other price based on a discount to the trading prices of the Company’s stock or to grant the right to receive additional securities based on future transactions of the Company on terms more favorable than those granted to Lind, with certain exceptions.

Commencing on the earlier of July 24, 2022 or the effectiveness of the registration statement covering Lind’s shares, if the Company fails to maintain the listing and trading of its common stock, the note will become due and payable and Lind may convert all or a portion of the outstanding principal at the lower of the then current conversion price and 80% of the average of the 3-day VWAP during the 20 days prior to delivery of the conversion notice.

If a resale registration statement is not effective covering the shares of common stock issuable to Lind in 180 days following January 24, 2022, the note will be in default. Lind was also granted piggyback registration rights.

If the Company engages in capital raising transactions, Lind has the right to purchase up to 10% of the new securities.

The note is convertible into common stock at $5.00 per share, subject to certain adjustments, at any time after the earlier of six months from issuance or the date the registration statement is effective; provided that no such conversion may be made that would result in beneficial ownership by Lind and its affiliates of more than 4.99% of the Company’s outstanding shares of common stock. If shares are issued by the Company at less than the conversion price, the conversion price will be reduced to such price.

Upon a change of control of the Company, as defined in the note, Lind has the right to require the Company to prepay 10% of the outstanding principal amount of the note. The Company may prepay the outstanding principal amount of the note, provided Lind may convert up to 25% of the principal amount of the note at a price per share equal to the lesser of the Repayment Share Price or the conversion price. The Note contains certain negative covenants, including restricting the Company from certain distributions, stock repurchases, borrowing, sale of assets, loans and exchange offers.

Upon an event of default as described in the note, the note will become immediately due and payable at a default interest rate of 125% of the then outstanding principal amount. Upon a default, all or a portion of the outstanding principal amount may be converted into shares of common stock by Lind at the lower of the conversion price and 80% of the average of the three lowest daily VWAPs.

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Business Combination

3 Months Ended

Mar. 31, 2022

Business Combination and Asset Acquisition [Abstract]

Business Combination

Note 8. Business Combination

Acquisition of Taste of BC Aquafarms

On June 24, 2021, the Company consummated the acquisition of TOBC and TOBC became a wholly owned subsidiary of the Company. The acquisition was accounted for as a business combination under the provisions of ASC 805. The aggregate purchase price of CAD$5,000,000 was paid as follows: (i) an aggregate of CAD$1,000,000 in cash to the Sellers; (ii) promissory notes in the aggregate principal amount of CAD$200,000 to the Sellers; (iii) 987,741 shares of the Company’s common stock and an aggregate of 344,957 shares of the Company’s common stock were issued on August 3, 2021 and put in escrow until June 24, 2023. If, within 24 months of the closing, TOBC has cumulative revenue of at least CAD$1,300,000, the Sellers will receive all of the escrowed shares. If, as of the 24-month anniversary of the closing, TOBC has cumulative revenue of less than CAD$1,300,000, the Sellers will receive a prorated number of the escrowed shares based on the actual cumulative revenue of TOBC as of such date.

The transaction costs incurred in connection with the acquisition of TOBC amounted to $31,000 which were expensed as incurred.

Fair Value of Consideration Transferred and Recording of Assets Acquired

The following table summarizes the acquisition date fair value of the consideration paid, identifiable assets acquired, and liabilities assumed. The business combination accounting is not yet complete and the amounts assigned to assets acquired and liabilities assumed are provisional. Therefore, this may result in future adjustments to the provisional amounts as information is obtained about facts and circumstances that existed at the acquisition date.

Consideration Paid:
Cash	$	814,000
Common stock, 987,741 shares of common stock of the Company		1,975,483
Promissory notes to Sellers		162,400
Contingent consideration - Common stock, 344,957 shares of common stock of the Company in escrow		689,914
Fair value of total consideration	$	3,641,797
Purchase Price Allocation:
Tangible assets acquired	$	2,137,650
Trademarks		406,150
Customer relationships		1,454,017
Non-compete agreements		97,476
Liabilities assumed		(453,496	)
Fair market value of net assets acquired	$	3,641,797

In determining the fair value of the common stock issued, the Company considered the value of the stock as estimated by the Company at the time of closing which was determined to be $2.00, based on the Company’s private placement offering price.

Liabilities assumed included three mortgage loans of approximately CAD$490,000 which were paid off by the Company on July 9, 2021. The Company has one commercial loan outstanding for CAD$60,000 which is due on December 31, 2025.

Unaudited Pro Forma Information

The following unaudited pro forma information assumes the business acquisition occurred on January 1, 2021. Depreciation and amortization have been included in the calculation of the below pro forma information based upon the actual acquisition costs.

	Three Months Ended March 31, 2021
Revenue	$	2,608,050
Net loss attributable to common shareholders	$	(561,958	)
Basic and diluted loss per share	$	(0.03	)

The information included in the pro forma amounts is derived from historical information obtained from the Sellers of the business.

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Stockholders’ Equity

3 Months Ended

Mar. 31, 2022

Equity [Abstract]

Stockholders’ Equity

Note 9. Stockholders’ Equity

On July 1, 2020, the Company entered into an investment banking engagement agreement, as amended on October 30, 2020, with Newbridge Securities Corporation. In consideration for advisory services, the Company agreed to issue Newbridge a total of 60,000 shares of common stock with a fair value of $138,000 which is amortized to expense over the term of the agreement. The Company recognized stock compensation expense of $34,500 for the three months ended March 31, 2021 in connection with these shares.

On February 8, 2021, the Company issued 25,000 shares of common stock with a fair value of $25,250 to an investor relations firm for services provided to the Company under an investor relations consulting agreement.

On March 30, 2021, the Company issued 10,465 shares of common stock with a fair value of $24,697 to the designee of a law firm for services provided to the Company.

On March 31, 2021, the Company issued 5,000 shares of common stock with a fair value of $11,800 to an investor relations firm for services provided to the Company under an investor relations consulting agreement.

On March 31, 2021, the Company issued 11,975 shares of common stock to Series A preferred stockholders as a common stock dividend with an aggregate fair value of $28,260 for the three months ended March 31, 2021.

On July 21, 2021, the Company entered into a consulting agreement as amended on November 10, 2021, with Intelligent Investments I, LLC (“Intelligent”). In consideration for consulting services, the Company agreed to issue Intelligent a total of 52,326 shares of common stock with a fair value of $171,106 which is amortized to expense over the term of the agreement. The Company recognized stock compensation expense of $34,221 for the three months ended March 31, 2022 in connection with these shares.

On January 24, 2022, the Company issued 125,000 shares of common stock to an investor upon the exercise of warrants for total proceeds of $250,000.

On February 3, 2022, the Company issued 167,093 shares of common stock with a fair value of $359,250 to Gault Seafood as partial consideration for the purchase of certain of its assets.

On March 31, 2022, the Company issued 15,385 shares of common stock to Intelligent Investments I LLC, with a fair value of $30,000, for legal services provided to the Company.

On March 31, 2022, the Company issued 5,000 shares of common stock with a fair value of $9,750 to TraDigital Marketing Group for consulting services provided to the Company.

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Options

3 Months Ended

Mar. 31, 2022

Share-Based Payment Arrangement [Abstract]

Options

Note 10. Options

The following table represents option activity for the three months ended March 31, 2022:

	Number of Options		Weighted Average Exercise Price		Weighted Average Remaining Contractual Life in Years		Aggregate Intrinsic Value
Outstanding – December 31, 2021		4,429,680	$	2.00		6.23
Exercisable – December 31, 2021		3,807,127	$	2.00		6.83	$	-
Granted		-	$	-
Forfeited		-	$	-
Vested		3,967,399
Outstanding – March 31, 2022		4,429,680	$	2.00		5.99
Exercisable – March 31, 2022		3,967,399	$	2.00		6.01	$	-

For the three months ended March 31, 2022, the Company recognized $193,631 of compensation expense for vested stock options issued to directors, contractors and employees during 2019 to 2021. The non-vested options outstanding are 462,281 as of March 31, 2022.

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Warrants

3 Months Ended

Mar. 31, 2022

Warrants

Warrants

Note 11. Warrants

The following table represents warrant activity for the three months ended March 31, 2022:

	Number of Warrants			Weighted Average Exercise Price		Weighted Average Remaining Contractual Life in Years		Aggregate Intrinsic Value
Outstanding – December 31, 2021		1,538,500		$	2.11		2.50
Exercisable – December 31, 2021		1,538,500		$	2.11		2.50	$	-
Granted		1,000,000		$	-
Exercised		(125,000	)	$	2.00
Forfeited or Expired		-		$	-
Outstanding – March 31, 2022		2,413,500		$	3.11		2.08
Exercisable – March 31, 2022		2,413,500		$	3.11		2.08	$	-

On January 24, 2022, in connection with the issuance of the $5,750,000 promissory note to Lind pursuant to a securities purchase agreement, the Company issued Lind a five-year warrant to purchase 1,000,000 shares of common stock at an exercise price of $4.50 per share. The warrant provides for cashless exercise and full ratchet anti-dilution if the Company issues securities at less than $4.50 per share. Under the Black-Scholes pricing model, the fair value of the warrants issued to purchase 1,000,000 shares of common stock was estimated at $1,412,213 on the date of issuance of the warrant using the following assumptions: stock price of $3.97 at the date of the agreement, exercise price of the warrant, warrant term, volatility rate of 43.21% and risk-free interest rate of 1.53% from the Department of Treasury. The relative fair value of $956,031 was calculated using the net proceeds of the convertible note and accounted for as paid in capital.

During the three months ended March 31, 2022, the Company issued 125,000 shares at an exercise price of $2.00 to an investor upon exercise of warrants.

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Commitment and Contingencies

3 Months Ended

Mar. 31, 2022

Commitments and Contingencies Disclosure [Abstract]

Commitment and Contingencies

Note 12. Commitment and Contingencies

Office lease

The Company leased its Miami office and warehouse facility from JK Real Estate, a related party through common family beneficial ownership. The lease which had a 20-year term, expiring in July 2021, was terminated on December 31, 2020, upon the sale of the facility to an unrelated third-party. In connection with the sale, the Company retained approximately 4,756 square feet of such space, rent-free for 12 months. On January 1, 2022, the Company entered into a verbal month-to-month lease agreement for its executive offices with an unrelated third party. The Company has paid $23,200 to date under this lease.

Coastal Pride leases approximately 1,100 square feet of office space in Beaufort, South Carolina. This office space consists of two leases with related parties that expire in 2024.

On February 3, 2022, in connection with the acquisition of certain assets of Gault, the Company entered into a one-year lease agreement for 9,050 square feet from Gault in Beaufort, South Carolina for $1,000 per month until a new facility is completed.

TOBC’s facilities are on land leased to TOBC for approximately $2,500 per month plus taxes from Steve and Janet Atkinson, the former TOBC owners, under a lease agreement that expired December 2021. On April 1, 2022, the lease was renewed with Steve and Janet Atkinson for approximately $2,000 per month plus taxes and an additional new lease was entered into with Kathryn Atkinson for approximately $1,800 per month plus taxes.

Rental and equipment lease expenses amounted to approximately $23,800 and $20,000 for the three months ended March 31, 2022 and 2021, respectively.

Legal

The Company has reached a settlement agreement with a former employee. Although the agreement is not finalized, the Company has reserved $70,000, representing the entire amount of the settlement.

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COVID-19 Pandemic

3 Months Ended

Mar. 31, 2022

Covid-19 Pandemic

COVID-19 Pandemic

Note 13. COVID-19 Pandemic

On March 11, 2020, the World Health Organization declared that the novel coronavirus (COVID-19) had become a pandemic, and on March 13, 2020, the U.S. President declared a National Emergency concerning the disease. Additionally, in March 2020, state governments in the Company’s geographic operating area began instituting preventative shut down measures in order to combat the novel coronavirus pandemic. The coronavirus and actions taken to mitigate the spread of it have had and are expected to continue to have an adverse impact on the economies and financial markets of the geographical areas in which the Company operates. On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) was enacted to amongst other provisions, provide emergency assistance for individuals, families and businesses affected by the novel coronavirus pandemic for 2020 and into 2021. The Company’s business not being deemed essential resulted in decreased financial performance that may not be indicative of future financial results. Government-mandated closures of businesses and shipping delays have affected our sales and inventory purchases. The Company continues to face uncertainty and increased risks concerning its employees, customers, supply chain and government regulation. In April 2021, the U.S. government has made available the COVID-19 vaccine to most of its population to aid with the pandemic but the long-term effects of this development are yet to be seen. By the end of 2021, the U.S. government has made available a booster of the COVID-19 vaccine to continue the fight against the pandemic. The Company’s sales and supply continue to be adversely affected due to COVID-19 and plans continue to be developed to ensure a prompt response is given to address the effects of the pandemic.

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Subsequent Events

3 Months Ended

Mar. 31, 2022

Subsequent Events [Abstract]

Subsequent Events

Note 14. Subsequent Events

On April 1, 2022, the TOBC lease was renewed with Steve and Janet Atkinson for approximately $2,000 per month plus taxes and an additional new lease was entered into with Kathryn Atkinson for approximately $1,800 per month plus taxes.

On April 1, 2022, the Company issued 2,871 shares of common stock with a fair value of $6,000 to the designee of Clear Think Capital for consulting services provided to the Company.

On April 4, 2022, the Company issued 9,569 shares of common stock with a fair value of $20,000 to SRAX, Inc. for consulting services provided to the Company.

On April 5, 2022, the Company issued an aggregate of 24,816 shares of common stock with a fair value of $156,341 to Newbridge and its affiliates for consulting services provided to the Company.

On April 20, 2022, the existing directors and the two new directors each entered into a one-year director service agreement with the Company, which will automatically renew for successive one-year terms unless either party notifies the other of its desire not to renew the agreement at least 30 days prior to the end of the then current term, or unless earlier terminated in accordance with the terms of the agreement. As compensation for serving on the Board of Directors, each director will be entitled to a $25,000 annual stock grant and for serving on a Committee of the Board, an additional $5,000 annual stock grant, both based upon the closing sales price of the common stock on the last trading day of the calendar year. Each director who serves as chairman of the Audit Committee, Compensation Committee and Nominating and Governance Committee will be entitled to an additional $15,000, $10,000 and $7,500 annual stock grant, respectively. As additional consideration for such Board service, on April 20, 2022, each director was granted a five-year option to purchase 25,000 shares of the Company’s common stock at an exercise price of $2.00 per share, which shares will vest in equal quarterly installments of 1,250 shares during the term of the option. The agreement also includes customary confidentiality provisions and one-year non-competition and non-solicitation provisions.

On April 28, 2022, aggregate principal outstanding amounts and accrued interest of $41,023 under the subordinated note with Walter Lubkin Jr., and the subordinated convertible notes with Walter Lubkin III, Tracy Greco and John Lubkin were paid off by the Company.

On May 1, 2022, the Company issued 3,922 shares of common stock with a fair value of $6,000 to the designee of Clear Think Capital for consulting services provided to the Company.

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Basis of Presentation and Summary of Significant Accounting Policies (Policies)

3 Months Ended

Mar. 31, 2022

Accounting Policies [Abstract]

Basis of Presentation

Basis of Presentation

The following unaudited interim consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). Accordingly, such interim financial statements do not include all the information and footnotes required by accounting principles generally accepted in the United States (“GAAP”) for complete annual financial statements. The information furnished reflects all adjustments, consisting only of normal recurring items which are, in the opinion of management, necessary in order to make the financial statements not misleading. The results of operations for the interim periods are not necessarily indicative of the results to be expected for the full year. The consolidated balance sheet as of December 31, 2021 has been derived from the Company’s annual financial statements that were audited by an independent registered public accounting firm but does not include all of the information and footnotes required for complete annual financial statements. These financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto which are included in our Annual Report on Form 10-K for the year ended December 31, 2021 filed with the SEC on March 31, 2022 for a broader discussion of our business and the risks inherent in such business.

Advances to Suppliers and Related Party

Advances to Suppliers and Related Party

In the normal course of business, the Company may advance payments to its suppliers, inclusive of Bacolod Blue Star Export Corp. (“Bacolod”), a related party based in the Philippines. These advances are in the form of prepayments for products that will ship within a short window of time. In the event that it becomes necessary for the Company to return products or adjust for quality issues, the Company is issued a credit by the vendor in the normal course of business and these credits are also reflected against future shipments.

As of March 31, 2022, and December 31, 2021, the balance due from the related party for future shipments was approximately $1,300,000. No new purchases have been made from Bacolod during the three months ended March 31, 2022. Cost of revenue related to inventories purchased from Bacolod represented approximately $0 and $170 of total cost of revenue for the three months ended March 31, 2022 and 2021, respectively.

Revenue Recognition

Revenue Recognition

The Company recognizes revenue in accordance with Accounting Standards Codification (ASC) 606, Revenue from Contracts with Customers, as such, we record revenue when our customer obtains control of the promised goods or services in an amount that reflects the consideration which the Company expects to receive in exchange for those goods or services. The Company’s source of revenue is from importing blue and red swimming crab meat primarily from Indonesia, the Philippines and China and distributing it in the United States and Canada under several brand names such as Blue Star, Oceanica, Pacifika, Crab & Go, First Choice, Good Stuff and Coastal Pride Fresh, and steelhead salmon produced by TOBC under the brand name Little Cedar Farms for distribution in Canada. The Company sells 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 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.

Goodwill and Other Intangible Assets

Goodwill and Other Intangible Assets

The Company accounts for business combinations under the acquisition method of accounting in accordance with ASC 805, “Business Combinations,” where the total purchase price is allocated to the tangible and identified intangible assets acquired and liabilities assumed based on their estimated fair values. The purchase price is allocated using the information currently available, and may be adjusted, up to one year from acquisition date, after obtaining more information regarding, among other things, asset valuations, liabilities assumed, and revisions to preliminary estimates. The purchase price in excess of the fair value of the tangible and identified intangible assets acquired less liabilities assumed is recognized as goodwill.

The Company reviews its indefinite lived intangibles and goodwill for impairment annually or whenever events or circumstances indicate that the carrying amount of the asset exceeds its fair value and may not be recoverable. In accordance with its policies, the Company performed an assessment of indefinite lived intangibles and goodwill and determined there was no impairment for the three months ended March 31, 2022 and 2021.

Long-lived Assets

Long-lived Assets

The Company reviews long-lived assets, including finite-lived intangible assets, for indicators of impairment whenever events or changes in circumstances indicate that the carrying value may not be recoverable. Cash flows expected to be generated by the related assets are estimated over the asset’s useful life on an undiscounted basis. If the evaluation indicates that the carrying value of the asset may not be recoverable, the potential impairment is measured using fair value. Impairment losses for assets to be disposed of, if any, are based on the estimated proceeds to be received, less costs of disposal.

In accordance with its policies, the Company performed an assessment of its finite-lived intangibles and recognized an impairment loss on customer relationships intangible asset of $374,300 for the year ended December 31, 2021. No impairment was recognized during the three months ended March 31, 2022.

Foreign Currency Exchange Rates Risk

Foreign Currency Exchange Rates Risk

We manage our exposure to fluctuations in foreign currency exchange rates through our normal operating activities. Our primary focus is to monitor our exposure to, and manage, the economic foreign currency exchange risks faced by our operations and realized when we exchange one currency for another. Our operations primarily utilize the U.S. dollar and Canadian dollar as their functional currencies. Movements in foreign currency exchange rates affect our financial statements.

Recently Adopted Accounting Pronouncements

Recently Adopted Accounting Pronouncements

ASU 2020-06, Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40).

In August 2020, the FASB issued ASU 2020-06, Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40). The ASU simplifies the accounting for certain financial instruments with characteristics of liabilities and equity. The FASB reduced the number of accounting models for convertible debt and convertible preferred stock instruments and made certain disclosure amendments to improve the information provided to users. In addition, the FASB amended the derivative guidance for the “own stock” scope exception and certain aspects of the EPS guidance. The guidance is effective for smaller reporting companies for fiscal years beginning after December 15, 2023, including interim periods within those fiscal years. Early adoption is permitted, but no earlier than fiscal years beginning after December 15, 2020, including interim periods within those fiscal years. The Company early adopted the ASU effective January 1, 2022 and applied the provisions of the ASU to the convertible note issued during the three months ended March 31, 2022.

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Fixed Assets, Net (Tables)

3 Months Ended

Mar. 31, 2022

Property, Plant and Equipment [Abstract]

Schedule of Fixed Assets

Fixed assets comprised the following:

	March 31, 2022			December 31, 2021
Computer equipment	$	94,117		$	90,707
RAS system		2,037,160			1,963,734
Automobiles		124,655			23,188
Leasehold improvements		51,567			4,919
Total		2,307,499			2,082,548
Less: Accumulated depreciation		(238,963	)		(178,145	)
Fixed assets, net	$	2,068,536		$	1,904,403

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Note 6. Intangible Assets, Net (Tables)

3 Months Ended

Mar. 31, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Intangible Assets

The following table sets forth the components of the Company’s intangible assets as of March 31, 2022:

	Amortization Period (Years)		Cost		Accumulated Amortization			Net Book Value
Intangible Assets Subject to amortization
Trademarks – Coastal Pride		14	$	850,000	$	(132,216	)	$	717,784
Trademarks – TOBC		15		406,150		(20,018	)		386,132
Customer Relationships – Coastal Pride		12		1,486,832		(236,163	)		1,250,669
Customer Relationships – TOBC		15		1,454,017		(71,666	)		1,382,351
Non-Compete Agreements – Coastal Pride		3		40,000		(23,324	)		16,676
Non-Compete Agreements – TOBC		4		97,476		(18,016	)		79,460
Total			$	4,334,475	$	(501,403	)	$	3,833,072

Schedule of Amortization of Intangible Assets

The aggregate amortization remaining on the intangible assets as of March 31, 2022 is as follows:

	Intangible Amortization
2022 (9 months remaining)	$	272,454
2023	$	363,272
2024	$	362,708
2025	$	328,108
2026	$	328,108
Thereafter	$	2,178,422

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Business Combination (Tables)

3 Months Ended

Mar. 31, 2022

Business Combination and Asset Acquisition [Abstract]

Schedule of Fair Value of Assets Acquired and Liabilities Assumed

Consideration Paid:
Cash	$	814,000
Common stock, 987,741 shares of common stock of the Company		1,975,483
Promissory notes to Sellers		162,400
Contingent consideration - Common stock, 344,957 shares of common stock of the Company in escrow		689,914
Fair value of total consideration	$	3,641,797
Purchase Price Allocation:
Tangible assets acquired	$	2,137,650
Trademarks		406,150
Customer relationships		1,454,017
Non-compete agreements		97,476
Liabilities assumed		(453,496	)
Fair market value of net assets acquired	$	3,641,797

Schedule of Proforma Information

	Three Months Ended March 31, 2021
Revenue	$	2,608,050
Net loss attributable to common shareholders	$	(561,958	)
Basic and diluted loss per share	$	(0.03	)

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Options (Tables)

3 Months Ended

Mar. 31, 2022

Share-Based Payment Arrangement [Abstract]

Schedule of Option Activity

The following table represents option activity for the three months ended March 31, 2022:

	Number of Options		Weighted Average Exercise Price		Weighted Average Remaining Contractual Life in Years		Aggregate Intrinsic Value
Outstanding – December 31, 2021		4,429,680	$	2.00		6.23
Exercisable – December 31, 2021		3,807,127	$	2.00		6.83	$	-
Granted		-	$	-
Forfeited		-	$	-
Vested		3,967,399
Outstanding – March 31, 2022		4,429,680	$	2.00		5.99
Exercisable – March 31, 2022		3,967,399	$	2.00		6.01	$	-

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Warrants (Tables)

3 Months Ended

Mar. 31, 2022

Warrants

Schedule of Warrant Activity

The following table represents warrant activity for the three months ended March 31, 2022:

	Number of Warrants			Weighted Average Exercise Price		Weighted Average Remaining Contractual Life in Years		Aggregate Intrinsic Value
Outstanding – December 31, 2021		1,538,500		$	2.11		2.50
Exercisable – December 31, 2021		1,538,500		$	2.11		2.50	$	-
Granted		1,000,000		$	-
Exercised		(125,000	)	$	2.00
Forfeited or Expired		-		$	-
Outstanding – March 31, 2022		2,413,500		$	3.11		2.08
Exercisable – March 31, 2022		2,413,500		$	3.11		2.08	$	-

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Company Overview (Details Narrative)					3 Months Ended
	Feb. 03, 2022 CAD ($) shares	Aug. 03, 2021 CAD ($) shares	Jun. 24, 2021 CAD ($)	Apr. 27, 2021 CAD ($) shares	Mar. 31, 2022 USD ($)	Mar. 31, 2021 USD ($)	Aug. 03, 2021 $ / shares	Aug. 03, 2021 CAD ($)	Apr. 27, 2021 $ / shares	Apr. 27, 2021 CAD ($)
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Payments to acquire businesses net of cash acquired					$ 398,482
Issuance of non-interest bearing promissory note face value										$ 200,000
Shares issued | shares				987,741
Stock issued during period, value				$ 2,800,000
Shares issued price per share | $ / shares							$ 2.30		$ 2.30
Common stock issued held In Escrow value shares | shares		344,957
Business Acquisitions, Purchase Price Allocation, Year of Acquisition, Description		If, within 24 months of the closing, TOBC has cumulative revenue of at least CAD$1,300,000
Stock Purchase Agreement [Member]
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Payments to acquire businesses net of cash acquired			$ 5,000,000	4,000,000
Taste of BC Aquafarms Inc [Member]
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Payments to acquire businesses net of cash acquired		$ 1,000,000		$ 1,000,000
Taste of BC Aquafarms Inc [Member] | Minimum [Member]
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Cumulative revenue								$ 1,300,000
Taste of BC Aquafarms Inc [Member] | Maximum [Member]
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Cumulative revenue								$ 1,300,000
Asset Purchase [Member] | Gault Sea Food LLC [Member]
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Payments to acquire businesses net of cash acquired	$ 359,250
Shares issued | shares	167,093
Common stock fair value	$ 359,250

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Basis of Presentation and Summary of Significant Accounting Policies (Details Narrative) - USD ($)	3 Months Ended		12 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Dec. 31, 2021
Defined Benefit Plan Disclosure [Line Items]
Due from related party for future shipments	$ 1,300,000		$ 1,300,000
Cost of revenue	4,836,563	$ 2,183,112
Impairment of intangibles and goodwill	0	0
Impairment loss	0		$ 374,300
Bacolod Blue Star Export Corp [Member]
Defined Benefit Plan Disclosure [Line Items]
Cost of revenue	$ 0	$ 170

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Going Concern (Details Narrative) - USD ($)	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Dec. 31, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Net loss	$ 1,053,866	$ 478,104
Accumulated deficit	17,198,017		$ 16,144,151
Working capital surplus	5,561,782
Subordinated Debt	910,000
Operating Lease, Liability, Current	$ 30,657		$ 30,583

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Other Current Assets (Details Narrative) - USD ($)	Mar. 31, 2022	Dec. 31, 2021
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Other current assets	$ 2,132,036	$ 3,702,661
Prepaid inventory	$ 1,950,000

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Schedule of Fixed Assets (Details) - USD ($)	Mar. 31, 2022	Dec. 31, 2021
Property, Plant and Equipment [Line Items]
Total	$ 2,307,499	$ 2,082,548
Less: Accumulated depreciation	(238,963)	(178,145)
Fixed assets, net	2,068,536	1,904,403
Computer Equipment [Member]
Property, Plant and Equipment [Line Items]
Total	94,117	90,707
RAS System [Member]
Property, Plant and Equipment [Line Items]
Total	2,037,160	1,963,734
Automobiles [Member]
Property, Plant and Equipment [Line Items]
Total	124,655	23,188
Leasehold Improvements [Member]
Property, Plant and Equipment [Line Items]
Total	$ 51,567	$ 4,919

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Fixed Assets, Net (Details Narrative) - USD ($)	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Property, Plant and Equipment [Abstract]
Depreciation, Depletion and Amortization, Nonproduction	$ 56,000	$ 1,000

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Schedule of Intangible Assets (Details)	3 Months Ended
	Mar. 31, 2022 USD ($)
Finite-Lived Intangible Assets [Line Items]
Cost	$ 4,334,475
Accumulated Amortization	(501,403)
Net Book Value	$ 3,833,072
Trademarks Coastal Pride [Member]
Finite-Lived Intangible Assets [Line Items]
Amortization Period (Years)	14 years
Cost	$ 850,000
Accumulated Amortization	(132,216)
Net Book Value	$ 717,784
Trademarks TOBC [Member]
Finite-Lived Intangible Assets [Line Items]
Amortization Period (Years)	15 years
Cost	$ 406,150
Accumulated Amortization	(20,018)
Net Book Value	$ 386,132
Customer Relationships Coastal Pride [Member]
Finite-Lived Intangible Assets [Line Items]
Amortization Period (Years)	12 years
Cost	$ 1,486,832
Accumulated Amortization	(236,163)
Net Book Value	$ 1,250,669
Customer Relationships TOBC [Member]
Finite-Lived Intangible Assets [Line Items]
Amortization Period (Years)	15 years
Cost	$ 1,454,017
Accumulated Amortization	(71,666)
Net Book Value	$ 1,382,351
Noncompete Agreements Coastal Pride [Member]
Finite-Lived Intangible Assets [Line Items]
Amortization Period (Years)	3 years
Cost	$ 40,000
Accumulated Amortization	(23,324)
Net Book Value	$ 16,676
Noncompete Agreements TOBC [Member]
Finite-Lived Intangible Assets [Line Items]
Amortization Period (Years)	4 years
Cost	$ 97,476
Accumulated Amortization	(18,016)
Net Book Value	$ 79,460

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Schedule of Amortization of Intangible Assets (Details)	Mar. 31, 2022 USD ($)
Goodwill and Intangible Assets Disclosure [Abstract]
2022 (9 months remaining)	$ 272,454
2023	363,272
2024	362,708
2025	328,108
2026	328,108
Thereafter	$ 2,178,422

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Debt (Details Narrative)							1 Months Ended	3 Months Ended
	Feb. 02, 2022 USD ($)	Feb. 02, 2022 USD ($)	Jan. 24, 2022 USD ($) $ / shares shares	Oct. 08, 2021 USD ($)	Jun. 24, 2021 CAD ($)	Nov. 26, 2019 USD ($) $ / shares	Mar. 31, 2021 USD ($)	Mar. 31, 2022 USD ($) $ / shares	Mar. 31, 2021 USD ($)	Jul. 24, 2022	Apr. 27, 2021 CAD ($)
Short-Term Debt [Line Items]
Debt instrument, principal amount											$ 200,000
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ / shares								$ 2.00
Walter Lubkin Jr [Member]
Short-Term Debt [Line Items]
Monthly payment	$ 29,789			$ 34,205
Walter Lubkin III [Member]
Short-Term Debt [Line Items]
Monthly payment		$ 15,378		16,257
Tracy Greco [Member]
Short-Term Debt [Line Items]
Monthly payment	12,494			13,209
Interest expense								$ 500	$ 700
John Lubkin [Member]
Short-Term Debt [Line Items]
Monthly payment	$ 8,891			$ 9,399
Ceba Loan [Member]
Short-Term Debt [Line Items]
Debt instrument, principal amount					$ 60,000
Description on maturity date					The loan initially bears no interest and is due on December 31, 2025. The borrower may prepay all or part of the loan commencing November 1, 2022 and, if by December 31, 2022
Debt instrument, description					the Company has paid 75% of the loan amount, the remaining 25% will be forgiven as per the loan agreement. If less than 75% of the loan amount is outstanding by December 31, 2022
Debt instrument, interest rate					500.00%
6% Demand Promissory Notes [Member] | John Keeler [Member]
Short-Term Debt [Line Items]
Debt instrument, principal amount								910,000
Debt instrument, interest rate							6.00%		6.00%
Debt Instrument, Periodic Payment, Principal								14,400
Debt Instrument, Periodic Payment, Interest									$ 19,600
Repayments of Unsecured Debt								50,000
Five Year Unsecured Promissory Note [Member] | Walter Lubkin Jr [Member]
Short-Term Debt [Line Items]
Debt instrument, principal amount						$ 500,000
Debt instrument, interest rate						4.00%
EBITDA covenant, description						The note bears interest at the rate of 4% per annum and is payable quarterly in an amount equal to the lesser of (i) $25,000 or (ii) 25% of the EBITDA of Coastal Pride, as determined on the first day of each quarter
Interest expense								4,500	4,900
Thirty-Nine Month Unsecured Promissory Note [Member] | Walter Lubkin III [Member]
Short-Term Debt [Line Items]
Debt instrument, principal amount						$ 87,842
Debt instrument, description						The note is payable in equal quarterly payments over six quarters beginning August 26, 2021
Debt instrument, interest rate						4.00%
Interest expense								600	800
Conversion Price | $ / shares						$ 2.00
Thirty-Nine Month Unsecured Promissory Note [Member] | Tracy Greco [Member]
Short-Term Debt [Line Items]
Debt instrument, principal amount						$ 71,372
Debt instrument, description						The note is payable in equal quarterly payments over six quarters beginning August 26, 2021
Debt instrument, interest rate						4.00%
Conversion Price | $ / shares						$ 2.00
Thirty-Nine Month Unsecured Promissory Note [Member] | John Lubkin [Member]
Short-Term Debt [Line Items]
Debt instrument, principal amount						$ 50,786
Debt instrument, description						The note is payable in equal quarterly payments over six quarters beginning August 26, 2021
Debt instrument, interest rate						4.00%
Interest expense								300	500
Conversion Price | $ / shares						$ 2.00
Securities Purchase Agreement [Member] | Lind Global Fund II LP [Member]
Short-Term Debt [Line Items]
Debt instrument, description			Upon a change of control of the Company, as defined in the note, Lind has the right to require the Company to prepay 10% of the outstanding principal amount of the note. The Company may prepay the outstanding principal amount of the note, provided Lind may convert up to 25% of the principal amount of the note at a price per share equal to the lesser of the Repayment Share Price or the conversion price
Debt instrument, interest rate			125.00%
Monthly payment			$ 333,333
Interest expense								173,027
Conversion Price | $ / shares			$ 5.00
Warrants and Rights Outstanding, Term			5 years
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | shares			1,000,000
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ / shares			$ 4.50
Debt Instrument, Fee Amount			$ 150,000
Debt Issuance Costs, Net			$ 87,144
Debt discount								1,943,445
Original issuance discount								750,000
Commitment fee								150,000
Direct issuance cost								87,144
Warrants issuance cost								956,301
Repayment description			The outstanding principal under the note is payable commencing July 24, 2022, in 18 consecutive monthly installments of $333,333, at the Company’s option, in cash or shares of common stock at a price (the “Repayment Share Price”) based on 90% of the five lowest volume weighted average prices (“VWAP”) during the 20-days prior to the payment date with a floor price of $1.50 per share (the “Floor Price”), or a combination of cash and stock provided that if at any time the Repayment Share Price is deemed to be the Floor Price, then in addition to shares, the Company will pay Lind an additional amount in cash as determined pursuant to a formula contained in the note.
Debt weighted average interest rate										80.00%
Ownership percentage			4.99%
Securities Purchase Agreement [Member] | Lind Global Fund II LP [Member] | Maximum [Member]
Short-Term Debt [Line Items]
Debt instrument, interest rate			10.00%
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ / shares			$ 4.50
Securities Purchase Agreement [Member] | Promissory Note [Member] | Lind Global Fund II LP [Member]
Short-Term Debt [Line Items]
Debt instrument, principal amount			$ 5,750,000
Keeler and co [Member] | Loan agreement [Member]
Short-Term Debt [Line Items]
Line of credit							$ 5,000,000		$ 5,000,000
Description							The advance rate of the revolving line of credit is 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 will never exceed 50% of the outstanding balance. Interest on the line of credit is the prime rate (with a floor of 3.25%), plus 3.75%. The Borrowers paid Lighthouse a facility fee of $50,000 in three instalments of $16,667 in March, April and May 2021 and will pay an additional facility fee of $25,000 on each anniversary of March 31, 2021. On January 14, 2022, the maximum inventory advance under the line of credit was adjusted from 50% to 70% until June 30, 2022, 65% to July 31, 2022, 60% to August 31, 2022 and 55% to September 30, 2022 at a monthly fee of 0.25% on the portion of the loan in excess of the 50% advance, in order to increase imports to meet customer demand. As of March 31, 2022, the interest rate was 7.25%
Line of credit guaranty								1,000,000
Lighthouse [Member]
Short-Term Debt [Line Items]
Line of credit								$ 2,746,763

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Schedule of Fair Value of Assets Acquired and Liabilities Assumed (Details)	Mar. 31, 2022 USD ($)
Business Combination and Asset Acquisition [Abstract]
Cash	$ 814,000
Common stock, 987,741 shares of common stock of the Company	1,975,483
Promissory notes to Sellers	162,400
Contingent consideration - Common stock, 344,957 shares of common stock of the Company in escrow	689,914
Fair value of total consideration	3,641,797
Tangible assets acquired	2,137,650
Trademarks	406,150
Customer relationships	1,454,017
Non-compete agreements	97,476
Liabilities assumed	(453,496)
Fair market value of net assets acquired	$ 3,641,797

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Schedule of Fair Value of Assets Acquired and Liabilities Assumed (Details) (Parenthetical) - Common Stock [Member] - Taste of BC Aquafarms Inc [Member]	3 Months Ended
	Mar. 31, 2022 shares
Business Acquisition [Line Items]
Business combination number of shares	987,741
Number of shares issued in escrow	344,957

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Schedule of Proforma Information (Details)	3 Months Ended
	Mar. 31, 2021 USD ($) $ / shares
Business Combination and Asset Acquisition [Abstract]
Revenue	$ 2,608,050
Net loss attributable to common shareholders	$ (561,958)
Basic and diluted loss per share | $ / shares	$ (0.03)

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Business Combination (Details Narrative)			3 Months Ended
	Aug. 03, 2021 shares	Jun. 24, 2021 CAD ($) shares	Mar. 31, 2022 USD ($) $ / shares	Mar. 31, 2021 USD ($)	Dec. 31, 2021 $ / shares	Dec. 31, 2021 CAD ($)	Jul. 09, 2021 CAD ($)	Jun. 24, 2021 USD ($)	Jun. 24, 2021 CAD ($)	Apr. 27, 2021 CAD ($)
Business Acquisition [Line Items]
Debt Instrument, Face Amount			$ 398,482
Debt instrument, principal amount										$ 200,000
Common stock per share | $ / shares			$ 0.0001		$ 0.0001
December 31, 2025 [Member]
Business Acquisition [Line Items]
Notes payable						$ 60,000
Mortgage loan [Member]
Business Acquisition [Line Items]
Notes payable							$ 490,000
Private Placement [Member]
Business Acquisition [Line Items]
Common stock per share | $ / shares			$ 2.00
Taste of BC Aquafarms Inc [Member]
Business Acquisition [Line Items]
Debt Instrument, Face Amount		$ 5,000,000
Debt instrument, principal amount									$ 200,000
Number of shares issued as consideration | shares	344,957	987,741
Transaction Costs								$ 31,000
Taste of BC Aquafarms Inc [Member] | Minimum [Member]
Business Acquisition [Line Items]
Cumulative Earnings									1,300,000
Taste of BC Aquafarms Inc [Member] | Maximum [Member]
Business Acquisition [Line Items]
Cumulative Earnings									$ 1,300,000
Taste of BC Aquafarms Inc [Member] | Sellers [Member]
Business Acquisition [Line Items]
Debt Instrument, Face Amount		$ 1,000,000

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Stockholders’ Equity (Details Narrative) - USD ($)								1 Months Ended	3 Months Ended
	Mar. 31, 2022	Feb. 03, 2022	Jan. 24, 2022	Jul. 21, 2021	Mar. 31, 2021	Feb. 08, 2021	Jul. 02, 2020	Mar. 30, 2021	Mar. 31, 2022	Mar. 31, 2021
Accumulated Other Comprehensive Income (Loss) [Line Items]
Stock issued during period shares issued for services								10,465
Number of stock issued for services, value								$ 24,697	$ 73,971	$ 96,247
Share-Based Payment Arrangement, Expense									193,631
Stock dividends value
Gault Seafood [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Stock issued during period shares issued for services		167,093
Number of stock issued for services, value		$ 359,250
Intelligent Investments I LLC [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Stock issued during period shares issued for services	15,385
Number of stock issued for services, value	$ 30,000
Tra digital marketing group [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Stock issued during period shares issued for services	5,000
Number of stock issued for services, value	$ 9,750
Series A Preferred Stock [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Stock dividends, shares					11,975
Stock dividends value										28,260
Investor Relations Consulting Agreement [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Stock issued during period shares issued for services					5,000	25,000
Number of stock issued for services, value					$ 11,800	$ 25,250
Investor Relations Consulting Agreement [Member] | Warrant [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Stock issued during period shares issued for services			125,000
Proceeds from issuance of warrants			$ 250,000
Newbridge [Member] | Investment Banking Engagement Agreement [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Stock issued during period shares issued for services							60,000
Number of stock issued for services, value							$ 138,000
Share-Based Payment Arrangement, Expense										$ 34,500
Intelligent Investments I LLC [Member] | Intelligent Investments I, LLC [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Stock issued during period shares issued for services				52,326
Number of stock issued for services, value				$ 171,106
Share-Based Payment Arrangement, Expense									$ 34,221

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Schedule of Option Activity (Details)	3 Months Ended
	Mar. 31, 2022 USD ($) $ / shares shares
Share-Based Payment Arrangement [Abstract]
Number of options, outstanding beginning	4,429,680
Weighted average exercise price, outstanding beginning | $ / shares	$ 2.00
Weighted average remaining contractual life in years, outstanding beginning	6 years 2 months 23 days
Number of option, exercisable	3,807,127
Weighted average exercise price, exercisable beginning | $ / shares	$ 2.00
Weighted average remaining contractual life in years, exercisable beginning	6 years 9 months 29 days
Aggregate intrinsic value, exercisable beginning | $
Number of option, granted
Weighted average exercise price, granted | $ / shares
Number of option, forfeited
Weighted average exercise price, forfeited | $ / shares
Number of option, vested	3,967,399
Number of option, outstanding ending	4,429,680
Weighted average exercise price, outstanding ending | $ / shares	$ 2.00
Weighted average remaining contractual life in years, outstanding ending	5 years 11 months 26 days
Number of option, exercisable ending	3,967,399
Weighted average exercise price, exercisable ending | $ / shares	$ 2.00
Weighted average remaining contractual life in years, exercisable ending	6 years 3 days
Aggregate intrinsic value, exercisable ending | $

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Options (Details Narrative)	3 Months Ended
	Mar. 31, 2022 USD ($) shares
Share-Based Payment Arrangement [Abstract]
Share-Based Payment Arrangement, Expense | $	$ 193,631
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Nonvested, Number of Shares | shares	462,281

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Schedule of Warrant Activity (Details)	3 Months Ended
	Mar. 31, 2022 USD ($) shares
Warrants
Number of shares, warrants outstanding beginning	1,538,500
Weighted average exercise price, outstanding beginning	2.11
Weighted Average Remaining Contractual Life Warrants Outstanding, Beginning	2 years 6 months
Number of shares, warrants exercisable beginning	1,538,500
Weighted average exercise price exercisable beginning	2.11
Weighted Average Remaining Contractual Life Warrants Exercisable, Beginning	2 years 6 months
Aggregate intrinsic value exercisable, beginning | $
Number of shares, warrants granted	1,000,000
Weighted average exercise price granted
Number of shares, warrants excercised	(125,000)
Weighted average exercise price exercised	2.00
Number of shares, warrants forfeited or expired
Weighted average exercise price forfeited or expired
Number of shares, warrants outstanding ending	2,413,500
Weighted average exercise price, outstanding ending	3.11
Weighted Average Remaining Contractual Life Warrants Outstanding, Ending	2 years 29 days
Number of shares, warrants exercisable ending	2,413,500
Weighted average exercise price exercisable ending	3.11
Weighted Average Remaining Contractual Life Warrants Exercisable, Ending	2 years 29 days
Aggregate intrinsic value exercisable, ending | $

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Warrants (Details Narrative)	Mar. 31, 2022 $ / shares shares	Jan. 24, 2022 USD ($) $ / shares shares	Apr. 27, 2021 CAD ($)
Debt Instrument, Face Amount | $			$ 200,000
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ / shares	$ 2.00
Class of Warrant or Right, Outstanding | shares	125,000
Securities Purchase Agreement [Member] | Lind Global Fund II LP [Member]
Warrants and Rights Outstanding, Term		5 years
Class of Warrant or Right, Number of Securities Called by Each Warrant or Right | shares		1,000,000
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ / shares		$ 4.50
Fair value of warrant issued | $		$ 1,412,213
Fair value of convertible debt | $		$ 956,031
Securities Purchase Agreement [Member] | Lind Global Fund II LP [Member] | Measurement Input, Share Price [Member]
Stock price | $ / shares		$ 3.97
Securities Purchase Agreement [Member] | Lind Global Fund II LP [Member] | Measurement Input, Price Volatility [Member]
warrant measurement input		43.21
Securities Purchase Agreement [Member] | Lind Global Fund II LP [Member] | Measurement Input, Risk Free Interest Rate [Member]
warrant measurement input		1.53
Securities Purchase Agreement [Member] | Lind Global Fund II LP [Member] | Minimum [Member]
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ / shares		$ 4.50
Securities Purchase Agreement [Member] | Lind Global Fund II LP [Member] | Promissory Note [Member]
Debt Instrument, Face Amount | $		$ 5,750,000

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Commitment and Contingencies (Details Narrative)			3 Months Ended
	Apr. 02, 2022 USD ($)	Feb. 03, 2022 USD ($)	Mar. 31, 2022 USD ($) ft²	Mar. 31, 2021 USD ($)
Lessee, Lease, Description [Line Items]
Lease term			20 years
Lease Expiration Date Description			expiring in July 2021
Area of land | ft²			4,756
Operating lease payments		$ 1,000
Rental and equipment lease expenses			$ 23,800	$ 20,000
Settlement Agreement [Member]
Lessee, Lease, Description [Line Items]
Reserved for settlement			$ 70,000
Kathryn Atkinson [Member] | Subsequent Event [Member]
Lessee, Lease, Description [Line Items]
Lease, Cost	$ 1,800
Coastal Pride Seafood LLC [Member]
Lessee, Lease, Description [Line Items]
Lease Expiration Date Description			expire in 2024
Area of land | ft²			1,100
Gault [Member]
Lessee, Lease, Description [Line Items]
Area of land | ft²			9,050
Taste of BC Aquafarms Inc [Member] | Subsequent Event [Member]
Lessee, Lease, Description [Line Items]
Lease, Cost	2,000
Taste of BC Aquafarms Inc [Member] | Steve and Atkinson [Member] | Lease agreement [Member]
Lessee, Lease, Description [Line Items]
Lease Expiration Date Description			expired December 2021
Lease, Cost			$ 2,500
Taste of BC Aquafarms Inc [Member] | Kathryn Atkinson [Member] | Subsequent Event [Member]
Lessee, Lease, Description [Line Items]
Lease, Cost	$ 1,800
Lease agreement [Member]
Lessee, Lease, Description [Line Items]
Operating lease payments			$ 23,200

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Subsequent Events (Details Narrative) - USD ($)						1 Months Ended	3 Months Ended
	May 01, 2022	Apr. 20, 2022	Apr. 05, 2022	Apr. 04, 2022	Apr. 02, 2022	Mar. 30, 2021	Mar. 31, 2022	Mar. 31, 2021	Apr. 28, 2022
Subsequent Event [Line Items]
Shares issued for services, shares						10,465
Shares issued for services, value						$ 24,697	$ 73,971	$ 96,247
Number of option granted
Option exercise price
Subsequent Event [Member] | Subordinated Note [Member]
Subsequent Event [Line Items]
Notes payable									$ 41,023
Subsequent Event [Member] | Clear Think Capital [Member]
Subsequent Event [Line Items]
Shares issued for services, shares	3,922				2,871
Shares issued for services, value	$ 6,000				$ 6,000
Subsequent Event [Member] | SRAX, Inc. [Member]
Subsequent Event [Line Items]
Shares issued for services, shares				9,569
Shares issued for services, value				$ 20,000
Subsequent Event [Member] | Newbridge [Member]
Subsequent Event [Line Items]
Shares issued for services, shares			24,816
Shares issued for services, value			$ 156,341
Subsequent Event [Member] | Steve And Janet Atkinson [Member]
Subsequent Event [Line Items]
Lease, Cost					2,000
Subsequent Event [Member] | Kathryn Atkinson [Member]
Subsequent Event [Line Items]
Lease, Cost					$ 1,800
Subsequent Event [Member] | Board Of Directors [Member]
Subsequent Event [Line Items]
Stock granted for service		$ 25,000
Subsequent Event [Member] | Board Of Directors [Member] | Last Trading Day of Calendar Year [Member]
Subsequent Event [Line Items]
Stock granted for service		5,000
Subsequent Event [Member] | Audit Committee [Member]
Subsequent Event [Line Items]
Stock granted for service		15,000
Subsequent Event [Member] | Compensation Committee [Member]
Subsequent Event [Line Items]
Stock granted for service		10,000
Subsequent Event [Member] | Nominating and Governance Committee [Member]
Subsequent Event [Line Items]
Stock granted for service		$ 7,500
Subsequent Event [Member] | Director [Member]
Subsequent Event [Line Items]
Option awarded term		each director was granted a five-year option
Number of option granted		25,000
Option exercise price		$ 2.00
Number of shares vested		1,250