Blue Star Foods Corp. Reports Q1 2025 Financial Results with Revenue Decline and Improved Gross Profit

Blue Star Foods Corp. reported its financial results for the first quarter of 2025, revealing a net revenue of $960,758, a decrease of 9.3% from $1,059,355 in the same period last year. The decline in revenue was attributed to a reduction in the poundage of seafood sold. Despite the drop in revenue, the company achieved a gross profit of $91,644, a significant improvement from a gross loss of $39,634 in the prior year, primarily due to the absence of inventory reserves recorded in the current quarter.

The company's cost of goods sold also decreased to $869,114 from $1,098,989 year-over-year, reflecting the lower volume of sales. Operating expenses showed mixed results; salaries and wages increased to $408,296 from $301,790, largely due to accrued stock compensation for directors. Conversely, other operating expenses fell to $648,483 from $681,611, indicating a reduction in legal and professional costs. The net loss for the quarter was $1,199,930, down from $1,279,451 in the previous year, driven by lower interest expenses and changes in the fair value of derivative liabilities.

In terms of operational developments, Blue Star Foods has been actively managing its inventory and accounts receivable, which stood at $342,825 and $455,518, respectively, as of March 31, 2025. The company reported a working capital deficit of $687,321, raising concerns about its liquidity. Cash used in operating activities was $392,550, a notable improvement from $679,928 in the same quarter of 2024, primarily due to a decrease in inventory levels.

Strategically, Blue Star Foods has been involved in various financing activities, including a recent agreement with Lind Global Fund II LP, which provided a $1,200,000 convertible promissory note. The company also entered into a subordinated business loan agreement with Agile Lending, LLC, for $420,000. These financing efforts are aimed at bolstering working capital and supporting ongoing operations. However, the company faces challenges, including a significant accumulated deficit of $47,489,149, which raises substantial doubt about its ability to continue as a going concern.

Looking ahead, Blue Star Foods aims to enhance its revenue generation capabilities and improve operational efficiencies. The management has acknowledged the need for better internal controls and plans to implement measures to address identified weaknesses. The company remains focused on executing its business plan, which includes potential acquisitions and capital raising efforts to ensure sustainable growth in the competitive seafood market.