Company: GRPS
Filing Date: 2025-07-17
Form Type: 10-K
Source: 0001683168-25-005173
Chunk: 695

Company: Trans American Aquaculture, Inc
Filing Date: 2025-07-17
Form: 10-K
Item: Item 9B
Chunk 695
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seafood distributors, restaurants, and grocery store chains in the United States. Using decades of experience in the shrimp aquaculture
industry, products are grown with our superior technology and our proprietary genetics which results in a superior fresh product always
grown in the United States.

NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES

Basis of Accounting

The accompanying consolidated
financial statements include the accounts of Trans American Aquaculture, Inc and its wholly owned subsidiary Trans 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 December 31, 2024 and 2023.

     F-10 

Income Taxes

The Company uses an asset and liability