Company: GRPS
Filing Date: 2025-10-15
Form Type: 10-Q
Source: 0001683168-25-007573
Chunk: 17

Company: Trans American Aquaculture, Inc
Filing Date: 2025-10-15
Form: 10-Q
Item: Part I, Item 1
Chunk 17
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 of principal and
interest on this note.

NOTE 7 – RELATED PARTY NOTES PAYABLE

As of June 30, 2025, shareholders have loaned
the Company approximately $1,646,636 in notes which accrue interest ranging from 12% and 18% per annual period. Maturities
between April 1, 2024, and July 1, 2024. Accrued interest related to these notes totaled $835,905 and $414,624 as of June 30,
2025, and June 30, 2024, respectively.

NOTE 8 – INCOME TAX

Income taxes are accounted for under the asset
and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences
between the consolidated financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating
loss and tax credit carry forwards.

 13 

Deferred tax assets and liabilities are measured
using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be covered
or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes
the enactment date. An allowance has been recorded as of June 30, 2025 due to uncertainty of the realization of deferred tax asset in
future periods.

Current tax is the expected tax payable or receivable
on the taxable income or loss for the year, using tax rates enacted or substantively enacted by the end of the reporting period, and
any adjustment to tax payable in respect of previous years.

In accordance with FASB
Interpretation No. 48, Accounting for Uncertainty in Income Taxes, included in ASC Topic 740, Income Taxes, the Company recognizes the
effect of income tax positions only if those positions are more likely than not of being sustained. Recognized income tax positions are
measured at the largest amount that is greater than 50% likely of being realized. Changes in recognition or measurement are reflected
in the period in which the change in judgment occurs. There were no uncertain tax positions that required recognition by the Company.
As of the date of these consolidated financial statements, the Company’s federal and various state tax returns will generally remain
open for the last three years.

The Company’s
provision for income taxes attributable to income before income taxes for the periods ended June 30, 2025 and June 30,