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

Company: Trans American Aquaculture, Inc
Filing Date: 2025-07-17
Form: 10-K
Item: Item 1
Chunk 17
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We undertake no obligation to publicly update or revise any forward-looking statements, including any changes that might result from any
facts, events, or circumstances after the date hereof that may bear upon forward-looking statements. Furthermore, we cannot guarantee
future results, events, levels of activity, performance, or achievements.

Critical Accounting Policies

The following discussions are based upon our financial
statements and accompanying notes, which have been prepared in accordance with GAAP Financial Measures of the United States.

The preparation of these financial statements requires
management to make estimates, judgments and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses,
and related disclosures of contingencies. We continually evaluate the accounting policies and estimates used to prepare the financial
statements. We base our estimates on historical experiences and assumptions believed to be reasonable under current facts and circumstances.
Actual amounts and results could differ from these estimates made by management.

Accounting for Our Shrimp Inventory

Our inventory of shrimp is divided into shrimp held
for sale and broodstock shrimp. Broodstock are shrimp that are used for breeding purposes; selected for their genetic, disease-free and
size attributes they can be more valuable than shrimp held for sale. We collect broodstock from the biomass just before the harvest and
segregate them from the shrimp that will be harvested and sold. Broodstock, because of their higher value, may be sold to other shrimp
farmers in the United States and overseas. We also keep a number of broodstock for our own restocking purposes. So, during the year, our
inventory can consist of shrimp held for sale, broodstock held for sale and broodstock used for restocking purposes.

Shrimp farming is a seasonal business. On a calendar
year basis, we typically use the broodstock to breed our larvae shrimp during the first quarter so that by spring the shrimp are held
in large post-larvae tanks for development. Later, in early summer, the shrimp are transferred to ponds where they complete the grow out
process over the next five to nine months. This can vary if we have more than one cycle of shrimp. Grow out may begin in the second in
the second quarter, with a second cycle grow out beginning in early summer. The first harvest cycle can occur in early fall with the second
harvest cycle occurring in November or December. During 2023, we had one cycle and harvest occurred in early November 2023. During 2024,
we have not stocked, nor have