Company: GRPS
Filing Date: 2025-07-17
Form Type: 10-K
Source: 0001683168-25-005173
Chunk: 173

Company: Trans American Aquaculture, Inc
Filing Date: 2025-07-17
Form: 10-K
Item: Item 1C
Chunk 173
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 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 we had a harvest; however, we are in process of larval development for broodstock sales, genetics families
and line continuation.

 13 

Our shrimp inventory is valued at lower of cost or
the net realizable value on a first-in, first-out basis.

The inventory on December 31, 2024 consists of live
broodstock animals. Included in this amount are costs and charges directly and indirectly incurred in bringing shrimp inventory to its
existing condition and location as noted in FASB ASC 330-10-30.

At December 31, 2024, the broodstock shrimp for the
2024 harvest had been identified and segregated from consumable shrimp in outdoor ponds to indoor tanks. The table below summarizes inventory
at December 31, 2024 and 2023.

    2024  
    2023