NOTE 4 – INVENTORY

The inventory at December 31, 2024, consists of shrimp in the larvae stage of development held for sale, broodstock held for sale, and broodstock held for restocking. Included in this amount is the broodstock cost basis reclassified to shrimp held for sale as those costs are applicable expenditures and charges directly and indirectly incurred in bringing shrimp inventory to its existing condition and location as noted in FASB ASC 330-10-30. Although, these animals will eventually come to end of life, their costs are considered part of the necessary costs to birthing and raising shrimp held for sale.

Just prior to harvest, the Company segregates and retains selected premium shrimp to become broodstock for the following shrimp harvest cycle. Upon identification and segregation, the selected animals are transferred from outdoor ponds to specialized indoor tanks. These tanks are highly regulated with respect to temperature, lighting and salinity levels. Costs allocated to broodstock animals at December 31, 2024 and December 31, 2023 totaled $20,830 and $60,388, respectively.

The Company recorded inventory write-down of $148,429 related to the dead of broodstock in its aquaculture operations. The number of broodstock held went down from 15,400 to 4,415 in the year ended December 31, 2024. The write-down is included in the cost of revenues in the consolidated statement of operations.

Total inventory is as follows at: