Company: GRPS
Filing Date: 2025-07-17
Form Type: 10-K
Source: 0001683168-25-005173
Chunk: 542

Company: Trans American Aquaculture, Inc
Filing Date: 2025-07-17
Form: 10-K
Item: Item 7A
Chunk 542
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 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 December 31, 2024 and 2023.

     F-10 

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. 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 to examination by the appropriate tax jurisdictions. As of December 31, 2024, the Company needs to file federal and state income
tax returns for 2020, 2021, 2022 and 2023. During 2020, the Company 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