Blue Star(US:BSFC)2022-08-14 16:00Revenue Growth - Revenue for the three months ended June 30, 2022 increased 39.0% to $2,958,866 compared to $2,129,389 for the same period in 2021, driven by higher market prices and new operations [143]. - Revenue for the six months ended June 30, 2022 increased 79.5% to $8,283,168 compared to $4,615,280 for the same period in 2021, attributed to higher market prices and new operations [152]. Cost of Goods Sold - Cost of goods sold for the three months ended June 30, 2022 rose to $2,621,112 from $1,559,490 in the same period of 2021, attributed to price increases [144]. - Cost of goods sold for the six months ended June 30, 2022 increased to $7,457,675 from $3,742,602 in the same period of 2021, due to price increases and increased sales [153]. Net Loss - Net loss for the three months ended June 30, 2022 was $1,437,213, an increase from a net loss of $437,127 for the same period in 2021, primarily due to higher salaries and other expenses related to acquisitions [151]. - Net loss for the six months ended June 30, 2022 was $2,491,079, up from a net loss of $915,231 for the same period in 2021, mainly due to increased salaries and other expenses related to acquisitions [159]. Cash Flow - Cash used in operating activities during the six months ended June 30, 2022 was $4,013,941, a significant decrease from cash provided by operating activities of $311,707 for the same period in 2021 [164]. - Cash provided by financing activities for the six months ended June 30, 2022 was $5,925,976, compared to $1,770,995 for the same period in 2021, primarily due to convertible debt net proceeds of $4,762,855 [166]. Financial Position - As of June 30, 2022, the company had cash of $2,585,878 and a working capital surplus of $3,207,745, including $910,000 in subordinated stockholder loans [161]. - The outstanding balance owed to Lighthouse as of June 30, 2022 was $3,451,321 [171]. Debt and Financing - The company issued 6% demand promissory notes totaling $2,910,000 to CEO John Keeler, with approximately $910,000 principal outstanding as of June 30, 2022 [172]. - The company raised approximately $3,600,000 in net proceeds from an underwritten public offering of 800,000 shares at $5.00 per share, which closed on November 5, 2021 [174]. - The company issued a secured, two-year, interest-free convertible promissory note for $5,750,000 to Lind Global Fund II LP, along with a warrant for 1,000,000 shares at an exercise price of $4.50 per share [177]. - The outstanding principal under the note to Lind is payable in 18 monthly installments of $333,333, starting July 24, 2022 [179]. - The company has granted Lind a first priority security interest in all its assets, including shares in its wholly-owned subsidiary [180]. - The note to Lind is convertible into common stock at $5.00 per share, subject to adjustments, and includes provisions for anti-dilution [184]. - Upon a change of control, Lind can require the company to prepay 10% of the outstanding principal amount of the note [185]. Regulatory and Reporting - The company has no off-balance sheet arrangements as of the latest reporting [187]. - The company is classified as a smaller reporting company and is not required to provide certain market risk disclosures [188].