Blue Star(US:BSFC)2021-11-21 16:00Revenue Performance - Revenue for the three months ended September 30, 2021 decreased 6.4% to $3,726,704 compared to $3,980,151 for the same period in 2020 due to a decrease in poundage sold as a result of the COVID-19 pandemic [132]. - Revenue for the nine months ended September 30, 2021 decreased 26.9% to $8,341,984 compared to $11,416,868 for the same period in 2020, again due to a decrease in poundage sold related to the COVID-19 pandemic [143]. Profit and Loss - Gross profit for the three months ended September 30, 2021 increased to $670,243 from $546,362 in the same period of 2020, attributed to higher market prices and lower cost of goods sold [134]. - Gross profit for the nine months ended September 30, 2021 increased to $1,542,921 from $952,140 in the same period of 2020, driven by higher market prices and lower cost of goods sold [145]. - Net loss for the three months ended September 30, 2021 was $161,788, a significant increase from a net income of $538 for the same period in 2020, primarily due to increases in salaries and wages and other expenses [142]. - Net loss for the nine months ended September 30, 2021 was $1,077,019, a decrease from $4,344,042 for the same period in 2020, mainly due to reductions in depreciation, amortization, interest, and other expenses [154]. Cash Flow - Cash utilized in operating activities during the nine months ended September 30, 2021 was $1,005,549, a significant decrease compared to cash provided of $3,944,053 for the same period in 2020 [158]. - Cash utilized in investing activities for the nine months ended September 30, 2021 was $841,643, an increase from $54,351 for the same period in 2020, attributed to the acquisition of TOBC [159]. Debt and Liabilities - The Company had cash of $203,967 as of September 30, 2021, with a working capital deficit of $825,877, including $1,150,000 in subordinated stockholder loans [155]. - As of September 30, 2021, the outstanding balance owed to Lighthouse was $1,520,433 after utilizing $784,450 to repay ACF [166]. - The Company issued 6% demand promissory notes totaling $2,910,000 to John Keeler, with approximately $1,150,000 of principal remaining outstanding as of September 30, 2021 [167]. - The Kenar Note, originally $1,000,000, was extended multiple times and had an outstanding principal of $872,500 as of March 31, 2021 [169]. - The Company paid $918,539 to Kenar on July 6, 2021, extinguishing the Kenar Note [170]. - The Payroll Protection Program Loan amounted to $371,944, with a 1.0% interest rate, and was fully forgiven in October 2021 [173]. - The Company has no off-balance sheet arrangements [174]. Interest and Financing - Interest expense decreased to $264,757 for the nine months ended September 30, 2021 from $704,809 for the same period in 2020, due to a decrease in average loans and line of credit outstanding [153]. - Interest on the revolving line of credit is the prime rate plus 3.75%, with a floor of 3.25% [164]. - The revolving line of credit has an advance rate of 85% on eligible accounts receivable and a maximum of $2,500,000 on inventory, with a cap of 50% of the outstanding balance [164]. - The Company made principal payments of $149,712 on subordinated notes during the nine months ended September 30, 2021 [167]. Management Guarantees - John Keeler, the CEO, provided a personal guaranty of up to $1,000,000 to Lighthouse [165].