Blue Star(US:BSFC)2025-08-18 22:23Revenue and Profit - Revenue for the three months ended June 30, 2025 increased 84.6% to $1,172,340 compared to $635,018 for the same period in 2024, driven by an increase in inventory items sold and prices [128]. - Gross profit for the three months ended June 30, 2025 rose to $252,690 from $47,502 in the same period in 2024, reflecting increased sales [129]. - Revenue for the six months ended June 30, 2025 increased 25.9% to $2,133,098 compared to $1,694,373 for the same period in 2024, attributed to higher inventory sales and prices [139]. - Gross profit for the six months ended June 30, 2025 increased to $344,334 from $7,868 in the same period in 2024, driven by increased sales [140]. Net Loss and Expenses - Net loss for the three months ended June 30, 2025 was $651,818, a significant decrease from $2,033,757 for the same period in 2024, primarily due to changes in fair value of derivative and warrant liabilities [138]. - Interest expense decreased to $379,971 for the six months ended June 30, 2025 from $1,206,316 for the same period in 2024, due to reduced amortization of debt discount and interest [148]. - Cash used in operating activities during the six months ended June 30, 2025 was $188,245, a decrease from $2,639,077 for the same period in 2024 [151]. Debt and Financing - The company entered into a securities purchase agreement with Lind, issuing a convertible promissory note of $1,200,000 and a warrant for 8,701 shares of common stock [155]. - Loss on settlement of debt increased to $41,066 for the six months ended June 30, 2025 from $0 for the same period in 2024, due to repayments under the Securities Purchase Agreement [146]. - The Company entered into a subordinated business loan agreement for a term loan of $420,000 with a maturity date of August 15, 2025, requiring weekly payments of $21,300 [161]. - For the six months ended June 30, 2025, the Company made principal payments totaling $134,000 on the loan, with an outstanding balance of $286,000 as of June 30, 2025 [161]. - The Company issued a convertible promissory note to Diagonal for $179,400 with a 13% interest rate, requiring monthly payments starting March 15, 2025, with an outstanding balance of $359 as of June 30, 2025 [162]. - The October Diagonal Note issued for $121,900 has a 12% interest rate, with principal payments of $40,633 and interest payments of $4,876 made for the six months ended June 30, 2025, leaving an outstanding balance of $40,633 [163]. - The December Diagonal Note issued for $90,850 has a 12% interest rate, with principal payments of $50,472 and interest payments of $6,057 made for the six months ended June 30, 2025, resulting in an outstanding balance of $40,378 [164]. - The Company issued promissory notes totaling $550,000 as part of the August Private Placement Offering, with mandatory monthly payments of $43,200 starting November 2024 [167][174]. - For the six months ended June 30, 2025, the Company made aggregate principal payments on the Private Placement Notes of $246,454, with an outstanding balance of $111,060 as of June 30, 2025 [179]. - The Company has reserved 2,000,000 shares for issuance upon conversion of the Private Placement Notes at a conversion price of $1.50 [170]. Cash Position and Company Classification - The company had cash of $45,976 as of June 30, 2025, with a working capital deficit of $1,553,621 [150]. - The Company has no off-balance sheet arrangements as of the reporting date [180]. - The Company is classified as a smaller reporting company and is not required to provide additional market risk disclosures [182].