Company: GRPS
Filing Date: 2025-10-16
Form Type: 10-Q/A
Source: 0001683168-25-007611
Chunk: 7

Company: Trans American Aquaculture, Inc
Filing Date: 2025-10-16
Form: 10-Q/A
Chunk 7
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 American Aquaculture, LLC, a Texas Limited
Liability Company. All significant intercompany balances and transactions have been eliminated in consolidation. The accompanying financial
statements have been prepared on the accrual basis of 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 June 30, 2025 and 2024.

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.

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