Company: GRPS
Filing Date: 2025-07-17
Form Type: 10-Q
Source: 0001683168-25-005208
Chunk: 7

Company: Trans American Aquaculture, Inc
Filing Date: 2025-07-17
Form: 10-Q
Item: Part I, Item 1
Chunk 7
---
 accounting.

Cash and Cash Equivalents

For purposes of the statement of cash flows, the
Company considers all highly liquid debt instruments with an original maturity of three months or less to be cash equivalents.

Inventory

Inventory is valued at lower of cost or the net
realizable value on a first-in, first-out basis. Depending on the development and growth stage of shrimp, the Company’s inventory
is comprised of 1) broodstock held for restocking the next harvest cycle, 2) broodstock held for sale, and shrimp held for sale. The Company
evaluates realization of shrimp based on market prices at the end of each period.

Property and Equipment

Property and equipment are stated at cost. Maintenance
and repairs are expensed while expenditures for renewals which prolong the lives of the assets are capitalized. When items are disposed
of, the cost and accumulated depreciation are eliminated from the accounts and any net gain or loss is included in the consolidated statement
of income.

For financial reporting purposes, depreciation
of property and equipment is provided for by using the straight-line method based on the estimated service lives of the property as follows:

    Schedule of estimated service lives of the
    property

    Land improvements
    40 years
  
    Buildings and structures
    40 years
  
    Farm equipment
    10 – 20 years
  
    Autos and trucks
    10 years

The Company reviews long-lived assets for impairment
whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. If it is determined
that an asset has been impaired, the amount of the impairment is charged to operations. No impairments were recognized for the periods
ended March 31, 2024 and 2023.

Income Taxes

The Company uses an asset and liability approach
to financial accounting and reporting for income taxes. The difference between the financial statement and tax basis of assets and liabilities
is determined annually.

     8 

Deferred income tax assets and liabilities
are computed for those differences that have future tax consequences using the currently enacted tax laws and rates that apply to the
periods in which they are expected to affect taxable income. Valuation allowances are established, if necessary, to reduce the deferred
tax asset to the amount that will more likely than not be realized. Income tax expense is the current tax payable or refundable for the
period, plus or minus the net change in the deferred tax assets and liabilities.

The Company’s income tax returns are subject