Company: GRPS
Filing Date: 2025-10-16
Form Type: 10-Q/A
Source: 0001683168-25-007611
Chunk: 8

Company: Trans American Aquaculture, Inc
Filing Date: 2025-10-16
Form: 10-Q/A
Chunk 8
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. 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.

| 10 |

The Company’s income tax returns are subject
to examination by the appropriate tax jurisdictions. As of June 30, 2025, the Company needs to file federal and state income tax returns
for 2020, 2021, 2022, 2023 and 2024. 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 differ from those estimates.

Revenue Recognition

The Company recognizes revenues according to
the Financial Accounting Standard Board (“FASB”) Accounting Standard Codification (“ASC 606”) and Accounting
Standard Update ASU 2014-09 “Revenues from Contracts with Customers.” Under the ASC 606, revenues is recognized when the
customer obtains control of promised goods or services in amounts that reflect the consideration which the entity expected to receive
in exchange of goods and service. The Company does not collect sales, value-add and other taxes collected on behalf of third parties.
To determine revenue recognition, the Company performs the following five steps: (1) identify the contract with customer; (2) identify
the performance obligations in contract; (3) determine the transaction price; (4) allocate the transaction price to the performance obligation
in the contract; and (5) recognize revenues when (or as) the entity satisfies a performance obligation.

The Company recognizes revenue as a single performance
obligation when it transfers its products to customers, being when the goods are shipped and transfers