Company: GRPS
Filing Date: 2025-07-17
Form Type: 10-K
Source: 0001683168-25-005173
Chunk: 457

Company: Trans American Aquaculture, Inc
Filing Date: 2025-07-17
Form: 10-K
Item: Item 6
Chunk 457
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 had taxable income primarily as a result of a short-term capital gain
of $445,500 on the sale of a joint venture interest. This resulted in taxable income of $155,200 and an unremitted federal income tax
liability of $33,180. With accrued penalties and interest, the total due the IRS is approximately $58,300. All liabilities, including
federal taxes, were indemnified by Goulding as part of the transaction and accordingly a receivable due from the previous owner of the
Company has been recorded and netted against the tax obligation. The Company intends to file its 2020 federal tax return and pay the tax
due, plus penalties in interest once it has sufficient cash to do so.

Use of Estimates 

The preparation of the consolidated financial statements
in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and
assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates.

Revenue Recognition

The Company recognizes revenues according to the Financial
Accounting Standard Board (“FASB”) Accounting Standard Codification (“ASC 606”) and Accounting Standard Update
ASU 2014-09 “Revenues from Contracts with Customers.” Under the ASC 606, revenues is recognized when the customer obtains
control of promised goods or services in amounts that reflect the consideration which the entity expected to receive in exchange of goods
and service. The Company does not collect sales, value-add and other taxes collected on behalf of third parties. To determine revenue
recognition, the Company performs the following five steps: (1) identify the contract with customer; (2) identify the performance obligations
in contract; (3) determine the transaction price; (4) allocate the transaction price to the performance obligation in the contract; and
(5) recognize revenues when (or as) the entity satisfies a performance obligation.

The Company recognizes revenue as a single performance
obligation when it transfers its products to customers, being when the goods are shipped and transfers to a buyer and when performance
obligation under contracted sales are completed.

Advertising and Promotion

All costs associated with advertising
and promoting the Company's goods and services are expensed in the year incurred.

     F-11 

Concentrations of Credit Risk

The Company's financial instruments
that are exposed to credit risk consist primarily of temporary cash investments and accounts receivable.

The Company maintains its cash balances at a large
financial institution. At times