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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-K

(Mark One)

☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the Fiscal Year Ended March 31, ~~2024~~2025

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from __________________________ to __________________________

Commission file number 000-54030

NATURALSHRIMP INCORPORATED

(Exact name of registrant as specified in its charter)

Nevada		74-3262176
(State or other jurisdiction		(I.R.S. Employer
of incorporation or organization)		Identification No.)

13601 Preston Road, Suite E1092, Dallas, Texas 75240

(Address of principal executive offices) (Zip Code)

(888) 791-9474

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class		Trading symbol(s)		Name of exchange on which registered
None		None		None

Securities registered pursuant to section 12(g) of the Act:

Shares of common stock with a par value of $0.0001

(Title of class)

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes ☐ No ☒

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. Yes ☐ No ☒

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer ☐	Accelerated filer ☐

Non-accelerated filer ☒	Smaller reporting company ☒

	Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant has filed a report on and attestation to its management’s assessment of the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or issued its audit report. ☐

If securities are registered pursuant to Section 12(b) of the Act, indicate by check mark whether the financial statements of the registrant included in the filing reflect the correction of an error to previously issued financial statements. ☐

Indicate by check mark whether any of those error corrections are restatements that required a recovery analysis of incentive-based compensation received by any of the registrant’s executive officers during the relevant recovery period pursuant to §240.10D-1(b). ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

The aggregate market value of the common equity held by non-affiliates was $176,~~715~~648,~~174~~ 639 computed by reference to the ~~closing~~ price of ~~the~~at ~~registrant’s~~which common equity ~~stock~~was aslast ~~quoted~~sold ~~on the OTCQB maintained by OTC Markets, Inc. on September 30, 2023~~ (which was $0.~~020~~ 0054 per share on November 4, 2024). For purposes of the above statement only, all directors, executive officers and 10% shareholders are assumed to be affiliates. This determination of affiliate status is not necessarily a conclusive determination for any other purpose.

The number of shares outstanding of the registrant’s common stock as of ~~July~~November 113, ~~2024~~2025 was 1,~~209~~277,~~334~~546,~~067~~746.

TABLE OF CONTENTS

	~~Page~~	Page
PART I
ITEM 1. BUSINESS	4	4
ITEM 1A. RISK FACTORS	14	10
ITEM 1B. UNRESOLVED STAFF COMMENTS	26	10
ITEM 1C. CYBERSECURITY	26	10
ITEM 2. PROPERTIES	27	11
ITEM 3. LEGAL PROCEEDINGS	27	11
ITEM 4. MINE SAFETY DISCLOSURES	27	11
PART II
ITEM 5. MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES	27	12
ITEM 6. [RESERVED]	28	12
ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS	28	12
ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK	44	14
ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA	45	15
ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE	45	15
ITEM 9A. CONTROLS AND PROCEDURES	45	15
ITEM 9B. OTHER INFORMATION	47	16
ITEM 9C. DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS	47	16
PART III
ITEM 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE	47	17
ITEM 11. EXECUTIVE COMPENSATION	50	20
ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS	53	23
ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE	54	23
ITEM 14. PRINCIPAL ACCOUNTANT FEES AND SERVICES	56	25
PART IV	55
ITEM 15. EXHIBITS AND FINANCIAL STATEMENT SCHEDULES	57	26
ITEM 16. FORM 10-K SUMMARY	58	26
SIGNATURES	59	27

FORWARD-LOOKING STATEMENTS

The information contained in this report should be read in conjunction with the financial statements and related notes contained elsewhere in this Annual Report on Form 10-K. Certain statements made in this report, including those in the sections of this report entitled “Item 1. Business,” “Item 1A. Risk Factors,” and “Item 7. Management’s Discussion and Analysis of Financial Condition and Results Of Operations,” are “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). These statements are based upon beliefs of, and information currently available to, us as of the date hereof, as well as estimates and assumptions made by us. Readers are cautioned not to place undue reliance on these forward-looking statements, which are only predictions and speak only as of the date hereof. When used herein, the words “anticipate,” “believe,” “estimate,” “expect,” “forecast,” “future,” “intend,” “plan,” “predict,” “project,” “target,” “potential,” “will,” “would,” “could,” “should,” “continue” or the negative of these terms and similar expressions identify forward-looking statements. Such statements reflect our current view with respect to future events and are subject to risks, uncertainties, assumptions, and other factors, including the risks relating to our business, industry, and our operations and results of operations. Should one or more of these risks or uncertainties materialize, or should the underlying assumptions prove incorrect, actual results may differ materially from those anticipated, believed, estimated, expected, intended, or planned.

Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance, or achievements. Except as required by applicable law, including the securities laws of the United States, we do not intend to update any of the forward-looking statements to conform these statements to actual results.

Our financial statements are prepared in accordance with accounting principles generally accepted in the United States. These accounting principles require us to make certain estimates, judgments, and assumptions. We believe that the estimates, judgments, and assumptions upon which we rely are reasonable based upon information available to us at the time that these estimates, judgments, and assumptions are made. These estimates, judgments, and assumptions can affect the reported amounts of assets and liabilities as of the date of the financial statements as well as the reported amounts of revenue and expenses during the periods presented. Our financial statements would be affected to the extent there are material differences between these estimates and actual results. The following discussion should be read in conjunction with our financial statements and notes thereto appearing elsewhere in this report.

These statements are only predictions and involve known and unknown risks, uncertainties and other factors that may cause our or our industry’s actual results, levels of activity, performance, or achievements to be materially different from any future results, levels of activity, performance, or achievements expressed or implied by these forward-looking statements. Such risks and uncertainties include, but are not limited to, those factors described in “Item 1A. Risk Factors,” those discussed and identified in our public filings made with the SEC and the following:

● NaturalShrimp’s ability to meet expectations related to its products, technologies and services and its ability to attract and retain revenue-generating customers and execute on its growth plans; the risk of actual or alleged failure to comply with data privacy laws and regulations; ● the attraction and retention of qualified directors, officers, employees and key personnel ● the impact from future regulatory, judicial, and legislative changes in NaturalShrimp’s industry

Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, or performance. Moreover, neither we nor any other person assumes responsibility for the accuracy and completeness of these forward-looking statements. Except as required by law, we undertake no obligation to update any forward-looking statements after the date of this report to conform these statements to actual results.

PART I

ITEM 1. BUSINESS

As used in this Annual Report on Form 10-K and unless otherwise indicated, the terms “NaturalShrimp,” “Company,” “we,” “us,” and “our” refer to NaturalShrimp Incorporated and its wholly-owned subsidiaries: NaturalShrimp USA Corporation (“NSC”), NaturalShrimp Global, Inc. (“NS Global”) and Natural Aquatic Systems, Inc. (“NAS”). The Company owns 51% of NaturalShrimp/Hydrenesis LLC, a Texas limited liability company. Unless otherwise specified, all dollar amounts are expressed in United States Dollars.

Corporate History

The Company was incorporated in the State of Nevada on July 3, 2008 under the name “Multiplayer Online Dragon, Inc.” On January 30, 2015, we acquired substantially all of the assets of NaturalShrimp Holdings, Inc. (“NSH”), which had developed the proprietary technology to grow and sell shrimp potentially anywhere in the world that is now the basis of our business. Such assets consisted primarily of all of the issued and outstanding shares of capital stock of its subsidiaries NaturalShrimp Corporation, now called NaturalShrimp USA Corporation (“NSC”), and NaturalShrimp Global (“NS Global”), and certain real property located outside of San Antonio, Texas, in exchange for our issuance of 75,520,240 shares of NaturalShrimp common stock to NSH. As a result of the transaction, NSH acquired 88.62% of the issued and outstanding shares of NaturalShrimp common stock, NSC and NS Global became our wholly-owned subsidiaries, and we changed our principal business to a global shrimp farming company. We changed our name to “NaturalShrimp Incorporated” in 2015.

~~Terminated Merger Agreement~~Receivership

On ~~October~~September 244, ~~2022~~2024, ~~the~~Streeterville ~~Company~~Capital, ~~Yotta Acquisition Corporation~~LLC, a ~~special~~Utah ~~purpose~~limited ~~acquisition~~liability company ~~(“Yotta”)~~, and ~~Yotta Merger~~Bucktown ~~Sub~~Capital, ~~Inc.~~LLC, a ~~Nevada~~Utah ~~corporation~~limited liability company (~~“Merger~~collectively, ~~Sub~~“Lenders”), ~~and~~filed ~~wholly-owned~~a ~~subsidiary~~Verified ofEmergency ~~Yotta,~~Motion ~~entered~~for ~~into~~Appointment aof ~~Merger~~Receiver ~~Agreement~~ (the “~~Merger Agreement~~Motion”), under ~~pursuant~~Civil toCase ~~which~~No. ~~Merger~~240907138, ~~Sub~~in ~~would merge with and into~~ the ~~Company~~District ~~with~~Court ~~the Company as the surviving corporation~~ of ~~the~~Salt ~~Business~~Lake ~~Combination~~County, ~~and~~Utah, ~~becoming~~against aNaturalShrimp, ~~wholly-owned~~Inc. ~~subsidiary of Yotta~~ (~~the~~ “~~Business Combination~~NaturalShrimp”). ~~In connection with the Business Combination, Yotta would change its name to “NaturalShrimp Incorporated” or such other name designated by the Company.~~

OnThe ~~July~~Motion 20alleges, ~~2023,~~among ~~the~~other Company sent Yotta notice of the Company’s termination of the Merger Agreement pursuant to Section 10.2(b) thereof based on breaches by Yotta of certain representations in the Merger Agreement that would render impossible the satisfaction of certain conditions to the Company’s obligations to consummate the transactions contemplated by the Merger Agreement. In particularthings, that ~~Yotta~~ ~~would~~NaturalShrimp ~~not~~has bedefaulted ~~able~~under ~~to comply with~~ the ~~provision~~terms of its ~~Amended~~loan ~~and~~agreements Restated Certificate of Incorporation that prohibits Yotta from consummating an initial business combination unless it has net tangible assets of at least $5,000,001 upon consummation of such initial business combination. This conflicts with ~~Yotta’s representation in~~ the ~~Merger Agreement that its consummation of the transactions contemplated by the Merger Agreement will not conflict with its organizational documents~~Lenders. The ~~Company also cited delays in the Securities~~Motion ~~and~~sought ~~Exchange Commission registration process that were attributable to Yotta, which breached its covenant pursuant to~~ the ~~Merger~~appointment ~~Agreement to~~of ~~use~~a ~~its~~Receiver ~~reasonable best efforts~~ to immediately take ~~all~~control ~~actions~~of ~~reasonably~~NaturalShrimp’s ~~necessary~~assets ~~or advisable~~ to ~~consummate~~preserve the ~~transactions contemplated by Merger Agreement as promptly as reasonably practicable~~same.

AsAn aorder ~~result~~was ofentered ~~the~~ex ~~termination~~parte ofby the ~~Merger~~Utah ~~Agreement,~~State ~~(i)~~Court in the ~~Sponsor~~Receivership ~~Support~~Case ~~Agreement,~~on ~~dated~~September ~~as of October 20~~9, ~~2022,~~2024 bygranting ~~and among Yotta, Yotta’s Sponsor Yotta Investments LLC (~~the ~~“Sponsor”),~~relief ~~and~~requested ~~the~~by ~~Company, (ii) the Company Stockholder Support~~Lenders. ~~Agreements,~~The ~~dated~~Utah asState ofCourt ~~October~~duly ~~20,~~appointed ~~2022,~~Amplēo byTurnaround and ~~among the Company~~Restructuring, ~~Yotta,~~LLC ~~and each of~~ (the ~~Company’s three executive officers and directors, (iii~~“Receiver”) ~~the Lock-Up Agreements, dated~~ as ~~of October 20, 2022, by and among Yotta,~~ the ~~Company,~~receiver ~~and~~over NaturalShrimp’s ~~each~~assets. ofThe ~~the~~Utah ~~Company~~State Court’s ~~three~~ ~~executive~~order ~~officers~~further ~~and~~scheduled ~~directors,~~a ~~and~~hearing ~~(iv)~~to ~~the~~be ~~Lock-Up~~held ~~Agreement,~~on ~~dated~~September ~~as of October 20~~17, ~~2022~~2024, byon ~~and~~a ~~among the Sponsor, Yotta,~~preliminary ~~and~~injunction ~~the~~to ~~Company,~~address ~~were~~issues ~~each~~raised ~~terminated~~ in ~~accordance~~the ~~with its terms~~Motion.

On November 20, 2024, the Lenders and NaturalShrimp filed a Verified Amended and Stipulated Emergency Motion for Immediate Appointment of a Receiver in the Receivership Case.

On November 22, 2024, the Utah State Court entered an order granting the Stipulated Motion and appointed Receiver as the receiver over the assets of NaturalShrimp. Under the Amended Receivership Order, the Receiver is the receiver over the Receivership Entities’ assets.

On February 11, 2025, the Receiver filed a Motion for Approval to Sell Substantially all of the Receivership Entities’ Assets to Streeterville Captial, LLC and Bucktown Captial, LLC (or Their Designees) or Any Other Party With a Higher and Better Offer Free and Clear of All Liens, Interests, Claims, and Encumbrances (the “Sale Motion”) in the Receivership Case. The Sale Motion seeks the Utah State Court’s approval for the Receiver to sell substantially all of the Receivership Entities’ assets free and clear of all liens, interests, claims, and encumbrances to Streeterville and Bucktown Capital, through their designated entities, NaturalShrimp Farms, Inc. (“NV Purchaser”), a Nevada corporation, Iowa Shrimp Holdings, LLC (“IA Purchaser”), an Iowa limited liability company, Texas Shrimp Holdings, LLC (“TX Purchaser” or together with NV Purchaser and IA Purchaser, the “Purchasers”), a Texas limited liability company, for a roughly $35,703,789.87 credit bid (based on a secured and administrative claim basis) and $100,000 cash, pursuant to the terms and conditions set forth in that certain Asset Purchase Agreement (“APA”) between Trustee and Purchasers. The order to sell the assets was approved on March 30, 2025 and the title to the assets was transferred to the lenders on May 14, 2025. As part of the sale, the Company transferred its ownership rights to its fixed assets, patents and license agreements in exchange for the extinguishment of its outstanding debt to both Streeterville and Buckstown Capital. As of the date of the ownership transfer, the Company ceased its current business operations.

Going Concern and Liquidation Basis of Accounting

Due to the Company’s significant amount of debt that was in default as of September 30, 2024, Ampleo Turnaround and Restructuring, LLC (“the receiver”) was placed as the receiver over the Company’s assets. Further, the receiver filed a motion to sell substantially all of the Company’s assets to Streeterville and Bucktown Capital for an approximate credit bid of $35.7 million and $100,000 in cash. The motion to sell the assets was approved by the court on March 30, 2025 and title to the assets was transferred to Streeterville on May 14, 2025. The Company believes that it continued to function as a going concern until the date that the motion to sell its assets was approved by the court on March 30, 2025 at which point its liquidation became imminent. As such, the Company has presented going concern financial statements as of March 30, 2025 and for the period from April 1, 2024 through March 30, 2025. Furthermore, in accordance with ASC 205-30, Liquidation Basis of Accounting, the Company has presented its financial statements (using a convenience date) as of March 31, 2025 under the liquidation basis of accounting. As such, the financial statements included in the filing also include a Statement of Net Liabilities in liquidation as of March 31, 2025. As there was only a one-day period between the time liquidation became imminent and the end of the reporting period, a Statement of Changes in Net Assets (liabilities) in liquidation has not been presented.

Business Overview

We are an aquaculture technology company that has developed proprietary, patented platform technologies to allow for the production of aquatic species in an ecologically-controlled, high-density, low-cost environment, and in fully contained and independent production facilities without the use of antibiotics or toxic chemicals. NaturalShrimp owns and operates indoor recirculating Pacific White shrimp production facilities in Texas and Iowa using these technologies.

On October 5, 2015, together with F&T Water Solutions, LLC (“F&T”), we formed NAS, with NaturalShrimp holding a majority interest. The purpose of NAS was for NaturalShrimp and F&T to jointly develop certain water technologies including, without limitation, the electrocoagulation equipment dealing with enclosed aquatic production systems worldwide.

On December 17, 2020, we acquired for $10,000,000 certain assets from VeroBlue Farms USA, Inc. (“VBF”) and its subsidiaries VBF Transport, Inc. and Iowa’s First, Inc., which included facilities located in Webster City, Iowa, Blairsburg, Iowa, and Radcliffe, Iowa. These facilities were designed for the growth of barramundi fish. We have converted 40% of the Webster City facility and 20% of the Blairsburg facility for producing shrimp using the Company’s propriety technology.

On May 25, 2021, the Company purchased from F&T its ownership interest in the water treatment technology that the Company and F&T had previously jointly developed and patented (the “Patent”) through NAS, which is used or useful in growing aquatic species in re-circulating and enclosed environments, as well as F&T’s 100% interest in a second patent associated with the Patent that was issued to F&T in March 2018 and all other intellectual property rights owned by F&T. In addition, the Company acquired all of the outstanding shares of common stock of NAS owned by F&T (the “Common Shares”), thereby making NAS a wholly-owned subsidiary of the Company. The purchase price for both the Patent and the Common Shares totaled $3,000,000 in cash and 13,861,386 shares of NaturalShrimp common stock valued at $7,000,000 for a total consideration of $10,000,000.

On August 25, 2021, the Company, through its now wholly-owned subsidiary NAS, entered into an Equipment Rights Agreement with Hydrenesis Delta Systems, LLC, and a Technology Rights Agreement with Hydrenesis Aquaculture, LLC, in a sub-license agreement with Hydrenesis Aquaculture LLC. The Equipment Rights Agreements relates to specialized and proprietary equipment used to produce and control, dose, and infuse Hydrogas® and RLS® into both water and other chemical species, while the Technology Rights Agreement provides us with a sublicense to the rights to Hydrogas® and RLS®. These technologies enhance the health of the aquatic species and minimize stress in high ammonia conditions. Each such agreement is for a 10-year term and automatically renew for successive 10-year terms unless terminated in accordance therewith. The agreements give NAS the exclusive rights to purchase or distribute the technology, or buy or rent the equipment, in the Industry Sector, which is the primary business and revenue stream generated from indoor aquaculture farming of any species in the Territory, defined as anywhere in the world except for the countries in the Gulf Corporation Council. The Company paid Hydrenesis Delta Systems, LLC the sum of $2,500,000 (staged over a period of time, with $1,250,000 still due), plus a 12.5% royalty for the Equipment Rights Agreement and for the Technology Rights Agreement. The Company paid Hydrenesis Aquaculture, LLC a total of $10,000,000, comprised of $2,500,000 at closing, $1,000,000 within 60 days and 6,500,000 shares of common stock of the Company. The Technology Rights Agreement also carried the same royalty provision.

Development of our Technology

General Background and Overview

Historically, efforts to raise shrimp in a high-density, closed system at the commercial level have been met with either modest success or outright failure through “BioFloc Technology.” An aquaculture system using “BioFloc Technology” recycles waste nutrients to culture microorganisms to form microbial protein from the toxic waste and other organic matter in the water. Infectious agents such as parasites, bacteria, and viruses potentially present in BioFloc systems are the most damaging and most difficult to control. While bacterial infection can in some cases be combated using antibiotics (although not always), the use of antibiotics is generally considered undesirable and counter to “green” cultivation practices. Viruses can be worse in that they are immune to antibiotics. Once introduced to a shrimp population, viruses can wipe out entire farms and shrimp populations, even with intense probiotic applications.

Our primary solution against infectious agents is our “Vibrio Suppression Technology.” This technology utilizes electrocoagulation (a procedure that uses heat from an electric current to destroy abnormal tissue) to kill potential pathogens and harmful bacteria such aa vibrio. While bacteria and other pathogens can still survive using this technology, Vibrio Suppression Technology helps to significantly reduce and suppress harmful organisms that usually cause “BioFloc” and other enclosed technologies to fail. Based on several peer-reviewed studies as well as management’s experience with this technology, we believe that this system creates higher sustainable densities, consistent production, improved growth and survival rates, and improved food conversion without the use of antibiotics, probiotics, or unhealthy anti-microbial chemicals.

Our technology platforms combine electrocoagulation and Hydrogas. Our patented electrocoagulation system replaces the need for biofilters and instead applies non-biological, electrical processes and uses electronics to remove ammonia and to control the level of pathogens in an aquaculture system. These technologies generate water chemistry with antioxidant properties, as demonstrated by third-party studies and our own trial conducted on North Atlantic Salmon at the RASLab research facility in Norway in 2021. The findings showed an increase in the well-being of aquatic species, including enhanced growth rates.

Hydrogas technology is based on a reducing gas that is produced on demand and infused into an aquaculture water column. The gas lowers the Oxidation Reduction Potential (“ORP”) of water to a negative reading on an ORP meter. Negative ORP refers to the water’s ability to either gain or lose electrons, acting as a measure of its reduction or oxidation capacity. When water has a negative ORP, it is more prone to gaining electrons, indicating a higher reduction potential. The more negative the ORP value of the water column, the stronger the reduction capacity, effects of which have been shown to have benefit within the aquaculture industry. The use of negative ORP water in recirculating aquaculture systems can have several beneficial effects on the animals and their environment such as lowering of the oxidation stress on the animals leading to better food conversion rates.

We have conducted several internal tests over a period of two years with finfish and shrimp, where we observed decreased mortality rates in the test groups utilizing the Hydrogas system.

The use of electrocoagulation in Recirculating Aquaculture Systems (RAS) plays a pivotal role in achieving higher sustainable densities. This technology utilizes an electrical current to coagulate particulates, bacteria, and other pollutants, leading to their precipitation out of the water column. By removing these harmful elements, the water quality is significantly improved, which in turn can support higher densities of animals without compromising their health and well-being. Furthermore, by reducing the bacterial load in the water, such as harmful Vibrio species, the overall health and immunity of the aquaculture species can be boosted, resulting in lower disease incidences and higher sustainable densities.

Maintaining a negative ORP water column using Hydrogas not only aids in consistent production but also improves food conversion rates. A negative ORP signifies a reducing environment, which is beneficial for lowering the oxidative stress on the animals, leading to better food conversion rates. Moreover, the constant removal of harmful substances and bacteria from the water ensures a stable, high-quality environment for the cultured species, leading to consistent growth rates and production. Thus, through the combined benefits of improved water quality, enhanced health, and optimized nutrient utilization, electrocoagulation with a negative ORP water column serves as a valuable tool for sustainable and efficient aquaculture systems.

The principal theories behind the Company’s system are characterized as:

	●	High-density shrimp production

	●	Weekly production

	●	Natural ecology system

	●	Regional production

	●	Regional distribution

These principles form the foundation for the Company and our potential distributors so that consumers can be provided with continuous volumes of live and fresh shrimp at competitive prices.

Research and Development; Evolution of Our Technology

In 2001, we began research and development of a high density, natural aquaculture system that is not dependent on ocean water to provide quality, fresh shrimp every week, 52 weeks a year. Our initial system was successful, but we determined that it would not be economically feasible due to high operating costs. Over the next several years, using the knowledge we gained from developing the first system, we developed a shrimp production system that eliminated the high costs associated with the previous system. We have continued to refine this technology, eliminating bacteria and other problems that affect recirculating systems, and now have a successful shrimp-growing process. We have produced thousands of pounds of shrimp over the years in order to develop a design that will consistently produce quality shrimp that grow to a large size at a specific rate of growth. This included experimenting with various types of natural live and synthesized feed supplies before selecting the most appropriate nutritious and reliable combination. It also included utilizing monitoring and control automation equipment to minimize labor costs and to provide the necessary oversight for proper regulation of the shrimp environment.

Our system consists of a nursery tank where the shrimp are acclimated and then moved to a larger grow-out tank for the rest of the growth cycle. During 2016, we engaged in additional engineering projects with third parties to further enhance our indoor production capabilities. The Company, working with F&T, contracted with RGA Labs, Inc. to build and update a prototype of our patented electrocoagulation system for the grow-out and harvesting of fully mature, antibiotic-free Pacific White shrimp. The design provided a viable pathway to begin generating revenue and producing shrimp on a commercially-viable scale. During 2019 the Company decided to begin an approximately $2,000,000 facility renovation, demolishing the interior wood-lined tanks (720,000 gallons). The Company began replacing the previous tanks with 40 new fiberglass tanks (600,000 gallons) at a cost of approximately $400,000, allowing complete production flexibility with smaller tanks.

On March 18, 2020, our research and development plant in La Coste, Texas was destroyed by a fire. The Company believed that it was ~~caused~~ caused by a natural gas leak, but the fire was so extensive that the cause was never determined. No one was injured as a result of the fire. The majority of the damage was to our pilot production plant, which comprised approximately 35,000 square feet of the total size of the production facilities at the La Coste location, but the fire did not impact the separate greenhouse, reservoirs, or utility buildings. The Company used the proceeds from its subsequent insurance claim to rebuild a 40,000 square foot production building at the La Coste facility and to repurchase the equipment needed to replace what was lost in the fire. The Company further refined the electrocoagulation system for installation in the Texas and later in its Iowa shrimp production facilities. The Company began developing a live shrimp delivery system from the Iowa production facility in November 2021 and from the Texas production facility. In 2023, the Company changed the focus of the Texas facility into a research and development center. ~~The Company increased production from the Iowa facility in 2024~~

Overview of Industry

Shrimp is a well-known and globally-consumed commodity, constituting one of the most important types of seafood and a staple protein source for much of the world. According to the Food and Agriculture Organization of the United Nations, the 2021 global production of shrimp was 9.9 billion pounds with over 1.9 billion pounds of shrimp consumed in the United States alone. Approximately 65% of the global supply of shrimp is caught by ocean trawlers and the other 35% is produced by open-air shrimp farms, mostly in developing countries.

Shrimp boats catch shrimp through the use of large, boat-towed nets. These nets are quite toxic to the undersea environment as they disturb and destroy ocean-bottom ecosystems; these nets also catch a variety of non-shrimp sea life, which is typically killed and discarded as part of the shrimp harvesting process. Additionally, the world’s oceans can only supply a finite amount of shrimp each year, and in fact, single-boat shrimp yields have fallen by approximately 20% since 2010 and continue to decrease. The shrimping industry’s answer to this problem has been to deploy more (and larger) boats that deploy ever-larger nets, which has in the short-term been successful at maintaining global shrimp yields. This benefit, however, cannot continue forever, as eventually global demand has the potential of outstripping the oceans’ ability to maintain the natural ecosystem’s balance, resulting in a permanent decline in yields. When taken in light of global population growth and the ever-increasing demand for nutrient-rich foods such as shrimp, this method is clearly an unsustainable production paradigm.

Shrimp farming, known in the industry as “aquaculture,” has ostensibly stepped in to fill this demand/supply imbalance. Shrimp farming is typically done in open-air lagoons and man-made shrimp ponds connected to the open ocean. Because these ponds constantly exchange water with the adjacent sea, the farmers are able to maintain the water chemistry that allows the shrimp to prosper. This method of cultivating shrimp, however, also carries severe ecological peril. First of all, most shrimp farming is primarily conducted in developing countries, where poor shrimp farmers have little regard for the global ecosystem. As a result, these farmers use large quantities of antibiotics and other chemicals that maximize each farm’s chance of producing a crop, putting the entire system at risk. For example, a viral infection that crops up in one farm can spread to all nearby farms, quite literally wiping out an entire region’s production. In 1999, the White Spot virus invaded shrimp farms in at least five Latin American countries: Honduras, Nicaragua, Guatemala, Panama, and Ecuador, and in 2013-14 Early Mortality Syndrome wiped out most of the shrimp yields in the Asia Pacific region and Mexico. Secondly, there is also a finite amount of coastline that can be used for shrimp production — eventually shrimp farms that are dependent on the open ocean will have nowhere to expand. Again, this method is also an ecologically damaging and ultimately unsustainable system for producing shrimp.

In both the cases, the current method of shrimp production is unsustainable. As global populations rise and the demand for shrimp continues to grow, the current system is bound to fall short. Shrimp trawling cannot continue to increase production without completely depleting the oceans’ natural shrimp population. Trends in per-boat yield confirm that this industry has already crossed the overfishing threshold, putting the global open-ocean shrimp population in decline. While open-air shrimp aquaculture may seem to address this problem, it is also an unsustainable system that destroys coastal ecological systems and produces shrimp with very high chemical contamination levels. Closed-system shrimp farming is clearly a superior alternative, but its unique challenges have prevented it from becoming a widely-available alternative.

Of the 1.9 billion pounds of shrimp consumed annually in the United States, over 1.5 billion pounds are imported — much of this from developing countries’ shrimp farms. These farms are typically located in developing countries and use high levels of antibiotics and pesticides that are not allowed under USDA regulations. As a result, these shrimp farms produce chemical-laden shrimp in an ecologically unsustainable way.

Unfortunately, most consumers in the United States are not aware of the origin of their store-bought shrimp or the shrimp that they consume in restaurants. This lack of knowledge is due to a USDA rule that states that only bulk-packaged shrimp must state the shrimp’s country of origin; any “prepared” shrimp, which includes arrangements sold in grocery stores and seafood markets, as well as all shrimp served in restaurants, can simply be sold “as is.” Essentially, the foregoing means that most U.S. consumers may be eating shrimp laden with chemicals and antibiotics. Our product is free of pesticide chemicals and antibiotics, a fact that we believe will be highly attractive and beneficial in terms of our eventual marketing success.

~~Target Markets~~7

We are establishing three target markets. The first market is live shrimp delivered to grocery stores and placed in aquariums, the second is fresh-on-ice shrimp delivered through distribution channels to groceries and restaurants, and the third is fresh-on-ice shrimp ordered via an eCommerce website delivered directly to the consumer. Our goal is to establish production systems and distribution centers in regional areas of the United States as well as international distribution networks through joint venture partnerships throughout the world. This should allow the Company to capture a significant portion of world shrimp sales by offering locally-grown, environmentally-friendly, fresh shrimp at competitive wholesale prices.

According to the Food and Agriculture Organization of the United Nations, the United States consumed over 1.9 billion pounds of shrimp in 2021, second only to China in total consumption, with over 90% imported. According to Research and Markets, the worldwide shrimp market was $18.3 billion in 2020 and is expected to reach $23.4 billion by 2026. According to SeafoodSource, in 2021 the United States Food and Drug Administration (the “FDA”) refused 75 entry lines of antibiotic-contaminated shrimp, over twice as many entry lines as was refused in 2020.

We strive to build a profitable global shrimp production company. We believe that our foundational advantage is that we can deliver fresh, organically grown, gourmet-grade shrimp, 52 weeks a year to retail and wholesale buyers in major market areas at competitive, yet premium, prices. By locating regional production and distribution centers in close proximity to consumer demand, we can provide a fresh product to customers within 24 hours after harvest. We believe that we can be the first to market and perhaps the sole weekly provider of fresh shrimp. Based on existing demand and what we believe are the advantages of our process, we believe that we can capture as much market share as our production capacity can support. The existing market demand, however, also might encourage new competitors to enter the market, including competitors that might develop processes that directly compete with NaturalShrimp, which could result in our not being able to capture the market share we anticipate.

Our patented technology and eco-friendly, bio-secure production processes enable the delivery of a chemical and antibiotic-free, locally-grown product that lives up to the Company’s mantra: “Always Fresh, Always Natural,” thereby addressing the issue of “unsafe” imported seafood.

Our Products

Product Description

Most of the shrimp consumed in the world today come from shrimp farms that can only produce crops between one and four times per year. Consequently, the shrimp from these farms requires freezing between crops until consumed. Our system is designed to harvest different tanks each week, which provides for fresh shrimp throughout the year. We strive to create a niche market of “Always Fresh, Always Natural” shrimp. As opposed to many of the foreign shrimp farms, we can also claim that our product is 100% free of antibiotics. The ability to grow shrimp locally and year-round allows us to provide this high-end product to upscale restaurant and grocery stores throughout the world. The Company is currently selling live shrimp to grocery stores outlets in Chicago and to stores and restaurants in Texas. We rotate the stocking and harvesting of our tanks each week, which allows for weekly shrimp harvests. Our product is free of pollutants and is fed only the highest-quality feeds.

Shrimp Growth Period

Our production system produces shrimp at a harvest size of 15 grams in 10 weeks for the live market and 23 grams in 13 weeks for the fresh-on-ice market. We currently purchase post-larva shrimp that are approximately 10 days old. We plan to convert the Blairsburg, Iowa facility into a hatchery for an estimated $500,000 after receipt of funds to control the supply of shrimp to each of our facilities. Our full-scale production systems include nursery and grow-out tanks, projected to produce fresh shrimp 52 weeks per year.

Distribution and Marketing

We plan to build environmentally friendly production systems near major metropolitan areas of the United States. Today, we have one, 40,000 square foot production facility in La Coste, Texas (near San Antonio) and three production facilities totaling 344,000 square feet in Iowa. On January 4, 2021, the Company formed a limited liability company with Hydresnesis Aquaculture, LLC in order to negotiate with local government for the construction of a production facility under available grant programs in Florida.

Because our system is enclosed and also indoors, it is not affected by weather or climate and does not depend on ocean proximity. As such, we believe that we will be able to provide, naturally grown, high-quality, fresh-never frozen shrimp to customers in major markets each week. We believe that these characteristics will allow distribution companies that we partner with to leverage their existing customer relationships by offering an uninterrupted supply of high-quality, fresh, and locally-grown shrimp. We plan to sell and distribute the vast majority of our shrimp production through distributors, such as U.S. Foods in Texas markets, that have established customers and sufficient capacity to deliver a fresh product within hours following harvest. We believe that we have the added advantage of being able to market our shrimp as a fresh, natural, and locally-grown product using sustainable, eco-friendly technology, a key differentiation from existing shrimp producers. Furthermore, we believe that our ability to advertise our product in this manner, along with the fact that it is a locally-grown product, provides us with a marketing advantage over the competition. We expect to utilize distributors that currently supply fresh seafood to upscale restaurants and supermarkets, country clubs, and retail stores whose clientele expect and appreciate fresh, natural products.

Harvesting, Packaging and Shipment

We expect that each of our locations will include production, harvesting/processing and a general shipping and receiving area, in addition to warehousing space for storage of necessary supplies and products required to grow, harvest, package, and otherwise make ready for delivery, a fresh shrimp crop on a weekly basis to consumers in each individual market area within 24 hours following harvest.

The seafood industry lacks a consistent source verification method to track seafood products as they move through countries and customs procedures. With worldwide overfishing leading to declining shrimp freshness and sustainability around the world, it is vital for shrimp providers to be able to realistically identify the source of their product. We have well-managed, sustainable facilities that are able to track shrimp from hatchery to plate using environmentally responsible methods and intend to incorporate these methods in all our future facilities.

International

We own 100% of NS Global, which was formed to create international partnerships and licensing for our platform technologies. Each international partnership is expected to use the Company’s proprietary technology to penetrate shrimp markets throughout the world utilizing existing food service distribution channels.

Go to Market Strategy and Execution

Our strategy is to acquire or develop regional production and distribution centers or joint ventures near major metropolitan areas throughout the United States and internationally. Along with our La Coste facility that includes a 40,000 square foot production facility using a new water treatment process. We have also purchased a 344,000 square foot production facilities and production assets from VBF. Our current plans include a NaturalShrimp Iowa expansion, a La Coste, Texas expansion, and Hydrenesis joint ventures while developing regional production and distribution centers near major markets, adding production centers in Florida, Nevada, and New York.

We have sold live product to grocery stores at $10.50 per pound and we have an exclusive agreement with U.S. Foods to distribute fresh-on-ice shrimp weekly to retail consumers at $10.50 to $14.00 per pound depending on size, which helps to validate our pricing strategy. Additionally, we have developed an eCommerce website for on-line ordering and home delivery by the name of NaturalShrimp Harvest-Select to provide fresh-chilled shrimp directly to consumers.

Current Systems and Expansion

The shrimp production facility rebuilt in La Coste, Texas is now using new patent-pending technologies the Company developed with F&T and Hydrenesis. We expect this facility to produce approximately 5,000 pounds of shrimp every week starting in January 2025 requiring an estimated $500,000 to complete the retrofit. By staging the stocking and harvests from tank to tank, it enables us to produce and therefore deliver fresh shrimp every week.

With the purchase of our Iowa facilities from VBF, the Company is using the aforementioned platform technologies to retrofit 344,000 square feet of the existing Iowa facilities that we expect will, once fully operational, produce 15,000 pounds of shrimp per week starting in September 2025 requiring an estimated $6M to complete the expansion. Therefore, the combined output from our La Coste, Texas and Webster City, Iowa facilities will be approximately 20,000 pounds of shrimp production per week starting in September 2025 requiring a combined estimated total of $6.5M to complete the retrofit and expansion in both facilities

The regional production facilities to be located in Florida, Nevada, and New York are expected to begin construction from future funding. These production centers are not surrounded by commercial shrimp production, and we believe that will create a high demand for fresh shrimp in all of these locations. [In addition, the Company will continue to use undeveloped land it owns in La Coste (37 acres) and Iowa (52 acres) to build as many systems as the Texas and our Midwest markets demand.

Competition

There are a number of companies conducting research and development projects in their attempt to develop closed-system technologies in the U.S., some with reported production and sales. Most North American shrimp farms are using a BioFloc System to intensify shrimp growth. Since these are privately-held companies, it is not possible to know, with certainty, their state of technological development, production capacity, need for water exchange, location requirements, financial status, and other matters. To the best of our knowledge, none are producing significant quantities of shrimp relative to their local markets, and such fresh shrimp sales are likely confined to an area near their production facility.

Additionally, any new competitor would face significant barriers for entry into the market and would likely need years of research and development to develop the proprietary technology necessary to produce similar shrimp at a commercially viable level. ~~We believe that our technology and business model set us apart from any current competition.~~ It is possible that additional competitors will arise in the future, but with the size and growth of the worldwide shrimp market, we are confident that many competitors could co-exist and thrive in the fresh shrimp industry.

108

Intellectual Property

The following table provides information regarding our issued patents:

Patent Document Number (Issued)

Description

Jurisdiction

Type

Date Filed

Date Issued

Expiration

Date

Current Ownership

Currently In Active Use

Must Be In Continued Use

Will Be Maintained Until a Third-Party Challenge

US Patent 10,163,199 B2

Recirculating Aquaculture System and Treatment method of Aquatic Species

United States

Utility*

11/28/2016

12/25/2018

11/28/2036

Natural Shrimp Inc

Yes

US Patent 11,297,809 B1

Ammonia Control in a Recirculating Aquaculture

System

United States

Utility*

7/7/2021

4/12/2022

7/7/2041

Natural Shrimp Inc

Yes

US Patent 9,908,794 B2

Electrocoagulation Chamber with Atmospheric & Pressurized Flow Regimes

United States

Utility*

5/25/2015

3/6/2018

5/25/2035

Natural Shrimp Inc

Yes

*	Utility patents are granted to anyone who invents or discovers any new and useful process, machine, article of manufacture, or compositions of matters, or any new useful improvement thereof.

Patent Document Number (Applied)		Description		Jurisdiction		Date Filed
Application No 17/895,906		Method and Apparatus for removing specific contaminants from water in a recirculating or linear treatment system		United States		8/25/2022

Trademarks

Jurisdiction

Live

First Used in Commerce

Date Filed

Published for Opposition

Registration Date

Word Mark

Currently In Active Use

Must Be In Continued Use

Will Be Maintained Until a Third Party Challenge

6,122,073

United States

Yes

12/31/2004

7/2/2019

5/26/2020

8/11/2022

NATURALSHRIMP

Yes

We intend to take appropriate steps to protect our intellectual property.

There are potential additional technical processes for which the Company may be able to file a patent. There are no assurances, however, that such applications, if filed, would be issued and no right of enforcement is granted to a patent application. Therefore, the Company plans to use a variety of other methods, including copyright registrations as appropriate, trade secret protection, and confidentiality and non-compete agreements to protect its intellectual property portfolio.

Source and Availability of Raw Materials

We receive necessary raw materials from established suppliers, generally in a timely manner. Currently, we buy our feed from Zeigler, a leading producer of aquatic feed. Post larvae shrimp are available from Sea Products Development in Texas and Homegrown Shrimp in Florida.

Notwithstanding our current relationship with our suppliers of Post Larvae (PLs) shrimp, we have previously experienced temporary shortages and delays as a result issues arising at their hatcheries. We have favorable contacts and past business dealings with other major shrimp feed producers from which we can purchase required raw materials if our current suppliers are not available. In addition, we have also experienced supply-chain problems that have restricted our access to needed equipment parts and supplies. However, we have been able to mitigate these issues by modifying off-the-shelf readily available parts and equipment to work within our system.

Government Approvals and Regulations

We are subject to government regulation and require certain licenses. The following list includes regulations to which we are subject and/or the permits and licenses we currently hold:

	●	Exotic Species Permit (annual) required and issued by the Texas Parks and Wildlife Department (“TPWD”) relating to operation of the Company’s facility in La Coste, Texas to raise exotic shrimp (non-native to Texas). This permit is currently active, expiring on December 31, 2024.
	●	Annual permit issued by the Texas Commission on Environmental Quality (“TCEQ”). TCEQ regulates facility wastewater discharge. The La Coste facility is rated Level 1 (Recirculation System with No Discharge). The Company’s technologies provide for zero discharge, which makes it much easier to locate production facilities in various locations having strict environmental requirements.

	●	Annual permit issued by the Texas Commission on Environmental Quality (“TCEQ”). TCEQ regulates facility wastewater discharge. The La Coste facility is rated Level 1 (Recirculation System with No Discharge). The Company’s technologies provide for zero discharge, which makes it much easier to locate production facilities in various locations having strict environmental requirements.

	●	The Company has applied to register the La Coste facility with the FDA in case the Company decides to process the shrimp in the future at this facility. However, the shrimp are currently delivered heads-on with no processing.

	●	The Company has applied to register the facility in Webster City, Iowa with the FDA in case the Company decides to process the shrimp in the future at this facility. However, the shrimp are currently delivered heads-on with no processing.

	●	Annual aquaculture license issued by Iowa Department of Natural Resources in respect of the Webster City, Iowa facility to produce shrimp in Iowa.

● The Company has applied to register the La Coste facility with the FDA in case the Company decides to process the shrimp in the future at this facility. However, the shrimp are currently delivered heads-on with no processing. ● The Company has applied to register the facility in Webster City, Iowa with the FDA in case the Company decides to process the shrimp in the future at this facility. However, the shrimp are currently delivered heads-on with no processing. ● Annual aquaculture license issued by Iowa Department of Natural Resources in respect of the Webster City, Iowa facility to produce shrimp in Iowa.

We are subject to certain regulations regarding the need for field employees to be certified. We strictly adhere to these regulations. The cost of certification is an accepted part of expenses. Regulations may change and become a cost burden, but compliance and safety are our main concern.

~~Market Advantages and Corporate Drivers~~9

We consider the following to be our advantages in the marketplace:

● Early-mover Advantage: We believe that we have an early-mover advantage via commercialized platform technologies in a large, growing market with no significant competition yet identified. Most potential competitors are early-stage companies with limited production and distribution. ● Farm-to-Market: This factor has significant advantages including reduced transportation costs and a product that we believe is more attractive to local consumers. ● Bio-secured Building: Our process is a re-circulating, highly-filtered water technology in an indoor-regulated environment. External pathogens are excluded. ● Eco-friendly Technology: Our closed-loop, recirculating system has no ocean water exchange requirements, does not use chemical or antibiotics and therefore is sustainable, eco-friendly, environmentally sound, and produces a superior-quality shrimp that is totally natural. ● Availability of Weekly Fresh Shrimp: Assures consumers of optimal freshness, taste, and texture of product, which we believe will command premium prices. ● Sustainability: Our naturally grown product does not deplete wild supplies, has no by-catch kill of marine life, does not damage sensitive ecological environments, and avoids potential risks of imported seafood.

Although we have the patented technology and concomitant trade secrets necessary to grow shrimp in commercial quantities in a recirculating, enclosed system, and believe that we have significant advantages in this market, we face competitive challenges from various directions. As noted above, the market for fresh shrimp is significant and attractive and could potentially lead to the development of new technologies that may compete with ours or copycat technologies that infringe on our patents and/or trade secrets.

Outside forces over which we have no control, such as supply chain issues, may create unforeseen obstacles that could hinder our ability to meet production goals. Further, weather may damage those companies from whom we purchase post-larvae shrimp and prohibit us from satisfying its contractual commitments to third party purchasers of our shrimp. Further, there might not be a sufficient pool of potential employees with the technical education and skills we require to staff and operate our intended new facilities in the locations in which we intend to expand.

Diversity, Equity and Inclusion

Much of our success is rooted in the diversity of our teams and our commitment to inclusion. We value diversity at all levels. We believe that our business benefits from the different perspectives a diverse workforce brings, and we pride ourselves on having a strong, inclusive and positive culture based on our shared mission and values.

Environmental, Social and Governance

Our commitment to integrating sustainability across our organization begins with our Board of Directors, or the Board. The Nominating and Governance Committee of the Board has oversight of strategy and risk management related to Environmental, Social and Governance, or ESG. All employees are responsible for upholding our core values, including to communicate, collaborate, innovate and be respectful, as well as for adhering to our Code of Ethics and Business Conduct, including our policies on bribery, corruption, conflicts of interest and our whistleblower program. We encourage employees to come to us with observations and complaints, ensuring we understand the severity and frequency of an event in order to escalate and assess accordingly. Our Chief Compliance Officer strives to ensure accountability, objectivity, and compliance with our Code of Conduct. If a complaint is financial in nature, the Audit Committee Chair is notified concurrently, which triggers an investigation, action, and report.

We are committed to protecting the environment and attempt to mitigate any negative impact of our operations. We monitor resource use, improve efficiency, and at the same time, reduce our emissions and waste. We are systematically addressing the environmental impacts of the buildings we rent as we make improvements, including adding energy control systems and other energy efficiency measures. Waste in our own operation is minimized by our commitment to reduce both single-use plastics and operating paper-free, primarily in a digital environment. We have safety protocols in place for handling biohazardous waste in our labs, and we use third-party vendors for biohazardous waste and chemical disposal.

Corporate and Available Information

Our Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K, and all amendments to those reports are available free of charge though our website (http://www.naturalshrimp.com) as soon as practicable after such material is electronically filed with, or furnished to, the Securities and Exchange Commission (the “SEC”). Except as otherwise stated in these documents, the information contained on our website or available by hyperlink from our website is not incorporated by reference into this report or any other documents we file, with or furnish to, the SEC.

Human Capital Management

Employees

As of ~~July~~the ~~11,~~date ~~2024,~~of the filing we had 20a ~~employees,~~very 19limited number of ~~whom were~~ full-time employees ~~and~~ ~~one~~due ~~who~~to ~~was part-time. In addition, we retain~~ the ~~services~~cessation of ~~outside~~our ~~consultants for~~current ~~various functions including engineering, finance, accounting and~~ business ~~development services~~operations. ~~None of our employees are covered~~ byIn ~~collective~~addition ~~bargaining~~to ~~agreements. We believe that we have good relations with~~ our ~~employees.~~very Welimited ~~believe~~number ~~that~~of ~~our~~full-time ~~future success will depend~~employees, inwe ~~part, on our continued ability to attract, hire, and~~ retain ~~qualified~~the ~~personnel.~~services Inof ~~particular,~~outside weconsultants ~~depend~~for onvarious ~~the~~functions ~~skills, experience,~~including ~~and~~legal ~~performance of our senior management~~ and ~~engineering~~accounting ~~and technical personnel~~services. ~~We compete for qualified personnel with other aquaculture industries.~~

We provide competitive compensation and benefits programs to help meet the needs of our employees. In addition to salaries, these programs (which vary by country/region and employment classification) include incentive compensation plan, pension, healthcare and insurance benefits, paid time off, family leave, and on-site services, among others. We also use targeted equity-based grants with vesting conditions to facilitate retention of personnel, particularly for our key employees.

Contractors

As of July 11, 2024, we retain 5 consultants and independent contractors.

ITEM 1A. RISK FACTORS

~~You~~As ~~should~~a ~~carefully~~smaller ~~consider~~reporting ~~the~~company, ~~risks~~we described below together with all of the other information included in our public filings before making an investment decision with regard to our securities. The statements contained in this document that are not ~~historic~~required ~~facts are forward-looking statements that are subject~~ to ~~risks~~provide ~~and uncertainties that could cause actual results to differ materially from those set forth in or implied by forward-looking statements. If any of~~ the following events described in these risk factors actually occur, our business, financial condition or results of operations could be harmed. In that case, the trading price of our common stock could decline, and you may lose all or part of your investment. Moreover, additional risks not presently known to us or that we currently deem less significant also may impact our business, financial condition, or results of operations, perhaps materially. For additional information ~~regarding~~ ~~risk~~required ~~factors,~~by ~~see~~this ~~“Forward-Looking Statements~~item.”

Risks Related to Our Business and Industry

The market for our product may be limited, and as a result our business may be adversely affected.

The feasibility of marketing our product has been assumed to this point and there can be no assurance that such assumptions are correct. It is possible that the costs of development and implementation of our shrimp production technology may be too expensive to market our shrimp at a competitive price. It is likewise possible that competing technologies will be introduced into the marketplace before or after the introduction of our product to the market, which may affect our ability to market our product at a competitive price.

Furthermore, there can be no assurance that the prices we determine to charge for our product will be commercially acceptable or that the prices that may be dictated by the market will be sufficient to provide to us sufficient revenues to profitably operate and provide a financial return to our investors.

Our business and operations are affected by the volatility of prices for shrimp.

Our business, prospects, revenues, profitability, and future growth are highly dependent upon the prices of and demand for shrimp. Our ability to borrow and to obtain additional capital on attractive terms is also substantially dependent upon shrimp prices. These prices have been and are likely to continue to be extremely volatile for seasonal, cyclical, and other reasons. Any substantial or extended decline in the price of shrimp will have a material adverse effect on our financing capacity and our prospects for commencing and sustaining any economic commercial production. In addition, increased availability of imported shrimp can affect our business by lowering commodity prices. This could reduce the value of inventories, held both by us and by our customers, and cause many of our customers to reduce their orders for new products until they can dispose of their higher-cost inventories.

Market demand for our products may decrease.

We face competition from other producers of seafood as well as from other protein sources, such as pork, beef, and poultry. The bases on which we expect to compete include, but may not be limited to:

● price; ● product quality; ● brand identification; and ● customer service.

Demand for our products will be affected by our competitors’ promotional spending. We may be unable to compete successfully on any or all of these bases in the future, which may have a material adverse effect on our revenues and results of operations.

Moreover, although historically the logistics and perishability of seafood has led to regionalized competition, the market for fresh and frozen seafood is becoming increasingly globalized as a result of improved delivery logistics and improved preservation of the products. Increased competition, consolidation, and overcapacity may lead to lower product pricing of competing products that could reduce demand for our products and have a material adverse effect on our revenues and results of operations.

Competition and unforeseen limited sources of supplies in the industry may result in occasional spot shortages of equipment, supplies, and materials. In particular, we may experience possible unavailability of post-larvae and materials and services used in our shrimp production facilities. Such unavailability could result in increased costs and delays to our operations. If we cannot find the products, equipment, supplies, and materials that we need on a timely basis, we may have to suspend our production plans until we find the products, equipment, and materials that we need.

Our expansion plans for our shrimp production facilities reflects our current intent and is subject to change.

Our current expansion plans are subject to change, and the continuance of such plans will depend on the following factors, among others:

● availability and cost of capital; ● current and future shrimp prices; ● costs and availability of post-larvae shrimp, equipment, supplies, and personnel necessary to conduct these operations; ● the success or failure of system design and activities in similar areas; ● changes in the estimates of the costs to complete production facilities; and ● the decisions of operators and future joint venture partners.

We will continue to gather data about our production facilities, and it is possible that additional information may cause us to alter our schedule or determine that a certain facility should not be pursued at all.

Our product is subject to regulatory approvals and if we fail to obtain such approvals, our business may be adversely affected.

Most of the jurisdictions in which we operate will require us to obtain a license for each facility that we own and operate in that jurisdiction. We have obtained and currently hold a license to own and operate each of our facilities where a license is required. In order to maintain the licenses, we have to operate our current farms and, if we pursue acquisitions or construction of new farms, we will need to obtain additional licenses to operate those farms, where required. We are also exposed to dilution of the value of our licenses where a government issues new licenses to fish farmers other than us, thereby reducing the current value of our fish-farming licenses. Governments may change the way licenses are distributed or otherwise dilute or invalidate our licenses. If we are unable to maintain or obtain new fish-farming licenses or if new licensing regulations dilute the value of our licenses, this may have a material adverse effect on our business.

It is possible that regulatory authorities could make changes in regulatory rules and policies, and we would not be able to market or commercialize our product in the intended manner and/or the changes could adversely impact the realization of our technology or market potential.

Failure to ensure food safety and compliance with food safety standards could result in serious adverse consequences for us.

As our end products are for human consumption, food safety issues (both actual and perceived) may have a negative impact on the reputation of and demand for our products. In addition to the need to comply with relevant food safety regulations, it is of critical importance that our products are safe and perceived as safe and healthy in all relevant markets.

Our products may be subject to contamination by food-borne pathogens, such as Listeria monocytogenes, Clostridia, Salmonella and E. Coli or contaminants. As these pathogens and substances are found in the environment, there is a risk that one or more of these organisms and pathogens can be introduced into our products as a result of improper handling, poor processing hygiene, or cross-contamination by us, the ultimate consumer, or any intermediary. We have little, if any, control over handling procedures once we ship our products for distribution. Furthermore, we may not be able to prevent contamination of our shrimp by pollutants such as polychlorinated biphenyls, or PCBs, dioxins, or heavy metals.

An inadvertent shipment of contaminated products may be a violation of law and may lead to product liability claims, product recalls (which may not entirely mitigate the risk of product liability claims), increased scrutiny, and penalties, including injunctive relief and plant closings, by regulatory agencies, as well as adverse publicity.

Increased quality demands from authorities in the future relating to food safety may have a material adverse effect on our business, financial condition, results of operations, or cash flow. Legislation and guidelines with tougher requirements are expected and may imply higher costs for the food industry. In particular, the ability to trace products through all stages of development, certification, and documentation is becoming increasingly required under food safety regulations. Further, limitations on additives and use of medical products in the farmed shrimp industry may be imposed, which could result in higher costs for us.

The food industry, in general, experiences high levels of customer awareness with respect to food safety and product quality, information, and traceability. We may fail to meet new and exacting customer requirements, which could reduce demand for our products.

Our success is dependent upon our ability to commercialize our shrimp production technology.

Prior to fiscal year 2021, we had been engaged primarily in the research and development of our technology. Therefore, we have a limited operating history upon which current and potential investors can evaluate our prospects. Our prospects must be considered in light of the risk, uncertainties, expenses, delays, and difficulties associated with the establishment of a business in the evolving food industry, as well as those risks encountered in the shift from development to commercialization of new technology and products or services based upon such technology.

While we have developed our first commercial system that employs our technology, additional work is required to incorporate that technology into a system capable of accommodating thousands of customers, which is the minimum capability that we believe is necessary to compete in the marketplace.

Our shrimp production technology may not operate as intended.

Although we have successfully tested our technology, our approach, which is still fairly new in the industry, may not operate as intended or may be subject to other factors that we have not yet considered. These may include the impact of new pathogens or other biological risks, low oxygen levels, algal blooms, fluctuating seawater temperatures, predation, or escapes. Any of the foregoing may result in physical deformities to our shrimp or affect our ability to increase shrimp production, which may have a material adverse effect on our operations. Furthermore, even if we are able to successfully manage these factors, our ability to grow healthy shrimp at a commercially scalable rate may be limited.

Our success is dependent upon our ability to protect our intellectual property.

Our success will depend in part on our ability to obtain and enforce protection for our intellectual property in the United States and other countries. It is possible that our intellectual property protection could fail. It is possible that the claims for patents or other intellectual property protections could be denied or invalidated or that our protections will not be sufficiently broad to protect our technology. It is also possible that our intellectual property will not provide protection against competitive products or will not otherwise be commercially viable.

Our commercial success will depend in part on our ability to commercialize our shrimp production without infringing on patents or proprietary rights of others. We cannot guarantee that other companies or individuals have not or will not independently develop substantially equivalent proprietary rights or that other parties have not or will not be issued patents that may prevent the sale of our products or require licensing and the payment of significant fees or royalties in order for us to be able to carry on our business.

We will need to grow the size and capabilities of our organization, and we may experience difficulties in managing this growth.

As our business strategies develop, we must add additional managerial, operational, financial, and other personnel. Future growth will impose significant added responsibilities on members of management, including:

● identifying, recruiting, integrating, maintaining, and motivating additional personnel; ● managing our internal development efforts effectively, while complying with our contractual obligations to contractors and other third parties; and ● improving our operational, financial and management controls, reporting systems, and procedures.

Our future financial performance will depend, in part, on our ability to effectively manage any future growth and our management may also have to divert a disproportionate amount of its attention away from day-to-day activities in order to devote a substantial amount of time to managing these growth activities.

We currently rely, and for the foreseeable future will continue to rely, in substantial part on certain independent organizations, advisors, and consultants to provide certain services. There can be no assurance that the services of these independent organizations, advisors, and consultants will continue to be available to us on a timely basis when needed, or that we can find qualified replacements. In addition, if we are unable to effectively manage our outsourced activities or if the quality or accuracy of the services provided by consultants is compromised for any reason, we may not be able to advance our business. There can be no assurance that we will be able to manage our existing consultants or find other competent outside contractors and consultants on economically reasonable terms, if at all. If we are not able to effectively expand our organization by hiring new employees and expanding our groups of consultants and contractors, we may not be able to successfully implement the tasks necessary to further develop our business initiatives and, accordingly, may not achieve our research, development, and commercialization goals.

These and other risks associated with our planned international operations may materially adversely affect our ability to attain or maintain profitable operations.

Risks Related to Financing Our Business

Management has determined that there are factors that raise substantial doubt about our ability to continue as a going concern.

The accompanying consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America, assuming we will continue as a going concern, which contemplates the realization of assets and satisfaction of liabilities in the normal course of business. For the fiscal year ended March 31, 2024, we had a net loss available for common stockholders of approximately $16.3 million. At March 31, 2024, we had an accumulated deficit of approximately $183.8 million and a working capital deficit of approximately $38.1 million. These factors raise substantial doubt about our ability to continue as a going concern, within one year from the issuance date of this report. Our ability to continue as a going concern is dependent on our ability to raise the required additional capital or debt financing to meet short and long-term operating requirements. We may also encounter business endeavors that require significant cash commitments or unanticipated problems or expenses that could result in a requirement for additional cash. As we continue to raise additional funds through the issuance of equity or convertible debt securities, the percentage ownership of our current stockholders could be reduced, and such securities might have rights, preferences, or privileges senior to our common stock. Additional financing may not be available upon acceptable terms, or at all. If adequate funds are not available to us or are not available on acceptable terms, we may not be able to take advantage of prospective business endeavors or opportunities, which could significantly and materially restrict our operations. If we are unable to obtain the necessary capital, we may have to cease operations.

The expansion of our technology and operations in Webster City, Iowa will require significant capital expenditures for which we may be unable to obtain sufficient financing.

Our need for additional capital may adversely affect our financial condition. Even prior to the loss of our plant in La Coste by fire or the purchase of the VBF assets in Webster City, Iowa, we had no sustained history of earnings and have operated at a loss since we commenced business. We have relied, and continue to rely, on external sources of financing to meet our capital requirements, to continue developing our proprietary technology, to build our production facilities, and to otherwise implement our corporate development and investment strategies.

We plan to obtain the future funding that we will need through the debt and equity markets, but there can be no assurance that we will be able to obtain additional funding when it is required. If we fail to obtain the funding that we need when it is required, we may have to forego or delay potentially valuable opportunities to build shrimp production facilities or default on existing funding commitments to third parties. Our limited operating history may make it difficult to obtain financing in the future.

Our ability to generate positive cash flows is uncertain.

To develop and expand our business, we will need to make significant up-front investments in our manufacturing capacity and incur research and development, sales and marketing, and general and administrative expenses. In addition, our growth will require a significant investment in working capital. Our business will require significant amounts of working capital to meet our production requirements and support our growth.

We cannot provide any assurance that we will be able to raise the capital necessary to meet these requirements. If adequate funds are not available or are not available on satisfactory terms, we may be required to significantly curtail our operations and may not be able to fund our production requirements once they commence - let alone fund expansion, take advantage of unanticipated acquisition opportunities, develop, or enhance our products, or respond to competitive pressures. Any failure to obtain such additional financing could have a material adverse effect on our business, results of operations, and financial condition.

We have a history of operating losses and anticipate future losses and may never be profitable.

We have experienced significant operating losses in each period since we began investing resources in our production of shrimp. These losses have resulted principally from research and development, sales and marketing, and general and administrative expenses associated with the development of our business. During the fiscal year ended March 31, 2024, we recorded a net loss available for common stockholders of approximately $16.3 million, or $0.02 per share, as compared with approximately $17.5 million, or $0.02 per share, for the year ended March 31, 2023. We expect to continue to incur operating losses until we reach sufficient commercial scale of our product to cover our operating costs. We cannot be certain when, if ever, we will become profitable. Even if we were to become profitable, we might not be able to sustain such profitability on a quarterly or annual basis.

Because we may never have net income from our operations, our business may fail.

We have no history of revenues and profitability from operations. There can be no assurance that we will ever operate profitably. Our success is significantly dependent on uncertain events, including successful development of our technology, establishing satisfactory manufacturing arrangements and processes, and distributing and selling our products.

Before receiving revenues from sales to customers of our products, we anticipate that we will incur increased operating expenses without realizing any revenues. We therefore expect to incur significant losses. If we are unable to generate significant revenues from sales of our products, we will not be able to earn profits or continue operations. We can provide no assurance that we will generate any revenues or ever achieve profitability. If we are unsuccessful in addressing these risks, our business will fail, and investors may lose all of their investment in our Company.

Our insurance coverage may be inadequate to cover all significant risk exposures.

We will be exposed to particular and heightened liabilities as a result of the products we provide. As our products are intended to be ingested by natural persons, we have a heightened level of liability because a problem with our product is more likely to cause injury than many other consumer products. In addition, seafood in particular has a higher risk of contamination or causing food-borne illness than many other types of foods. While we intend to maintain insurance, the amount of our insurance coverage may not be adequate to cover all claims or liabilities, and we may be forced to bear substantial costs resulting from risks and uncertainties of our business. It is also not possible to obtain insurance to protect against all operational risks and liabilities. The failure to obtain adequate insurance coverage on terms favorable to us, or at all, could have a material adverse effect on our business, financial condition, and results of operations. We do not have any business interruption insurance. Any business disruption or natural disaster could result in substantial costs and diversion of resources.

Our margins fluctuate, which leads to further uncertainty in our profitability model.

While we will have the potential ability to negotiate prices that benefit our clients and affect our profitability as it garners market-share and increases our book of business, margins in the aquaculture business are fluid, and our margins vary based upon production volume and the customer. This may lead to continued uncertainty in margins from quarter to quarter.

Risks Related to Doing Business in Foreign Countries

Our operations in foreign countries are subject to political, economic, legal, and regulatory risks.

The following aspects of political, economic, legal, and regulatory systems in foreign countries create uncertainty with respect to many of the legal and business decisions that we make:

● cancellation or renegotiation of contracts due to uncertain enforcement and recognition procedures of judicial decisions; ● disadvantages of competing against companies from countries that are not subject to U.S. laws and regulations, including the Foreign Corrupt Practices Act; ● changes in foreign laws or regulations that adversely impact our business; ● uncertainty regarding tariffs that may be imposed against certain international countries from time-to-time; ● changes in tax laws that adversely impact our business, including, but not limited to, increases in the tax rates and retroactive tax claims; ● royalty and license fee increases; ● expropriation or nationalization of property; ● currency fluctuations; ● foreign exchange controls; ● import and export regulations; ● changes in environmental controls; ● business interruptions resulting from geo-political actions, including war, and terrorism or disease outbreaks (such as the outbreak of COVID-19); ● risks of loss due to civil strife, acts of war and insurrection; and ● other risks arising out of foreign governmental sovereignty over the areas in which our operations are conducted.

Consequently, our development and production activities in foreign countries may be substantially affected by factors beyond our control, any of which could materially adversely affect our business, prospects, financial position, and results of operations. Furthermore, in the event of a dispute arising from our operations in other countries, we may be subject to the exclusive jurisdiction of courts outside the United States or may not be successful in subjecting non-U.S. persons or entities to the jurisdiction of the courts in the United States, which could adversely affect the outcome of a dispute.

The cost of complying with governmental regulations in foreign countries may adversely affect our business operations.

We may be subject to various governmental regulations in foreign countries. These regulations may change depending on prevailing political or economic conditions. In order to comply with these regulations, we believe that we may be required to obtain permits for producing shrimp and file reports concerning our operations. These regulations affect how we carry on our business, and in order to comply with them, we may incur increased costs and delay certain activities pending receipt of requisite permits and approvals. If we fail to comply with applicable regulations and requirements, we may become subject to enforcement actions, including orders issued by regulatory or judicial authorities requiring us to cease or curtail our operations or take corrective measures involving capital expenditures, installation of additional equipment, or remedial actions. We may be required to compensate third parties for loss or damage suffered by reason of our activities and may face civil or criminal fines or penalties imposed for violations of applicable laws or regulations. Amendments to current laws, regulations, and permit requirements governing our operations and activities could affect us in a materially adverse way and could force us to increase expenditures or abandon or delay the development of shrimp production facilities.

Our international operations will involve the use of foreign currencies, which will subject us to exchange rate fluctuations and other currency risks.

We currently have no revenues from international operations. In the future, however, any revenues and related expenses of our international operations will likely be generally denominated in local currencies, which will subject us to exchange rate fluctuations between such local currencies and the U.S. dollar. These exchange rate fluctuations will subject us to currency translation risk with respect to the reported results of our international operations, as well as to other risks sometimes associated with international operations. In the future, we could experience fluctuations in financial results from our operations outside of the United States, and there can be no assurance we will be able, contractually or otherwise, to reduce the currency risks associated with our international operations.

Risks Related to Ownership of our Common Stock

We have limited capitalization and may require financing, which may not be available.

We have limited capitalization, which increases our vulnerability to general adverse economic and industry conditions, limits our flexibility in planning for or reacting to changes in our business and industry and may place us at a competitive disadvantage to competitors with sufficient or excess capitalization. If we are unable to obtain sufficient financing on satisfactory terms and conditions, we will be forced to curtail or abandon our plans or operations. Our ability to obtain financing will depend upon a number of factors, many of which are beyond our control.

The trading of our common stock may have liquidity fluctuations.

Although our common stock is listed for quotation on the OTCQB, under the symbol “SHMP”, and the trading volume of our stock has increased significantly over the last three calendar years, such liquidity may not continue to be sustainable. As a result, any trading price of our common stock may not be an accurate indicator of the valuation of our common stock. Any trading in our shares could have a significant effect on our stock price. If the public market for our common stock declines, then investors may not be able to resell the shares of our common stock that they have purchased and may lose all of their investment. No assurance can be given that an active market will continue or that a stockholder will be able to liquidate their shares of common stock without considerable delay, if at all. Furthermore, our stock price may be impacted by factors that are unrelated or disproportionate to our operating performance. These market fluctuations, as well as general economic, political and market conditions, such as recessions, interest rates or international currency fluctuations may adversely affect the market price and liquidity of our common stock.

Our stock price may be volatile.

The market price of our common stock is likely to be highly volatile and could fluctuate widely in price in response to various factors, many of which are beyond our control, including the following:

● actual or anticipated variations in our quarterly operating results; ● changes in our business or potential earnings estimates; ● our ability to obtain adequate working capital financing; ● changes in market valuations of similar companies; ● publication (or lack of publication) of research reports about us; ● changes in applicable laws or regulations, court rulings, enforcement, and legal actions; ● loss of any strategic relationships; ● additions or departures of key management personnel; ● actions by our stockholders (including transactions in our shares); ● speculation in the press or investment community; ● increases in market interest rates, which may increase our cost of capital; ● changes in our industry; ● competitive pricing pressures; ● our ability to execute our business plan; and ● economic and other external factors.

In addition, the securities markets have from time-to-time experienced significant price and volume fluctuations that are unrelated to the operating performance of particular companies. These market fluctuations may also materially and adversely affect the market price of our common stock.

Our existing stockholders may experience significant dilution from the sale of our common stock pursuant to certain financing agreements.

The sale of our common stock pursuant to conversion of preferred stock or other convertible instruments, or pursuant to our equity line financing will have a dilutive impact on our shareholders. As a result, the market price of our common stock could decline. In addition, the lower our stock price, the greater the impact of dilution under these financing agreements. If our stock price decreases, then our existing shareholders would experience greater dilution for any given dollar amount raised through such financing.

The perceived risk of dilution may cause our stockholders to sell their shares, which may cause a decline in the price of our common stock. Moreover, the perceived risk of dilution and the resulting downward pressure on our stock price could encourage investors to engage in short sales of our common stock. By increasing the number of shares offered for sale, material amounts of short selling could further contribute to progressive price declines in our common stock.

Our stock is categorized as a penny stock. Trading of our stock may be restricted by the SEC’s penny stock regulations which may limit a stockholder’s ability to buy and sell our stock.

Our stock is categorized as a “penny stock”, as that term is defined in SEC Rule 3a51-1, which generally provides that “penny stock”, is any equity security that has a market price (as defined) less than US $5.00 per share, subject to certain exceptions. Our securities are covered by the penny stock rules, including Rule 15g-9, which impose additional sales practice requirements on broker-dealers who sell to persons other than established customers and accredited investors. The penny stock rules require a broker-dealer, prior to a transaction in a penny stock not otherwise exempt from the rules, to deliver a standardized risk disclosure document in a form prepared by the SEC which provides information about penny stocks and the nature and level of risks in the penny stock market. The broker-dealer also must provide the customer with current bid and offer quotations for the penny stock, the compensation of the broker-dealer and its salesperson in the transaction and monthly account statements showing the market value of each penny stock held in the customer’s account. The bid and offer quotations, and the broker-dealer and salesperson compensation information, must be given to the customer orally or in writing prior to effecting the transaction and must be given to the customer in writing before or with the customer’s confirmation. In addition, the penny stock rules require that prior to a transaction in a penny stock not otherwise exempt from these rules, the broker-dealer must make a special written determination that the penny stock is a suitable investment for the purchaser and receive the purchaser’s written agreement to the transaction. These disclosure requirements may have the effect of reducing the level of trading activity in the secondary market for the stock that is subject to these penny stock rules. Consequently, these penny stock rules may affect the ability of broker-dealers to trade our securities and reduces the number of potential investors. We believe that the penny stock rules discourage investor interest in and limit the marketability of our common stock.

According to SEC Release No. 34-29093, the market for “penny stocks” has suffered in recent years from patterns of fraud and abuse. Such patterns include: (1) control of the market for the security by one or a few broker-dealers that are often related to the promoter or issuer; (2) manipulation of prices through prearranged matching of purchases and sales and false and misleading press releases; (3) boiler room practices involving high-pressure sales tactics and unrealistic price projections by inexperienced sales persons; (4) excessive and undisclosed bid-ask differential and markups by selling broker-dealers; and (5) the wholesale dumping of the same securities by promoters and broker-dealers after prices have been manipulated to a desired level, along with the resulting inevitable collapse of those prices and with consequent investor losses. The occurrence of these patterns or practices could increase the future volatility of our share price.

FINRA sales practice requirements may also limit a stockholder’s ability to buy and sell our stock.

In addition to the “penny stock” rules described above, FINRA has adopted rules that require that in recommending an investment to a customer, a broker-dealer must have reasonable grounds for believing that the investment is suitable for that customer. Prior to recommending speculative low-priced securities to their non-institutional customers, broker-dealers must make reasonable efforts to obtain information about the customer’s financial status, tax status, investment objectives and other information. Under interpretations of these rules, FINRA believes that there is a high probability that speculative low-priced securities will not be suitable for at least some customers. The FINRA requirements make it more difficult for broker-dealers to recommend that their customers buy our common stock, which may limit your ability to buy and sell our stock and have an adverse effect on the market for our shares.

To date, we have not paid any cash dividends and no cash dividends will be paid in the foreseeable future.

We do not anticipate paying cash dividends on our common stock in the foreseeable future and we may not have sufficient funds legally available to pay dividends. Even if the funds are legally available for distribution, we may nevertheless decide not to pay any dividends. We presently intend to retain all earnings for our operations.

The existence of indemnification rights to our directors, officers and employees may result in substantial expenditures by our Company and may discourage lawsuits against our directors, officers and employees.

Our bylaws contain indemnification provisions for our directors, officers and employees, and we have entered into indemnification agreements with our officer and directors. The foregoing indemnification obligations could result in us incurring substantial expenditures to cover the cost of settlement or damage awards against directors and officers, which we may be unable to recoup. These provisions and resultant costs may also discourage us from bringing a lawsuit against directors and officers for breaches of their fiduciary duties and may similarly discourage the filing of derivative litigation by our stockholders against our directors and officers even though such actions, if successful, might otherwise benefit us and our stockholders.

If we fail to develop or maintain an effective system of internal control over financial reporting, we may not be able to accurately report our financial results or prevent financial fraud. As a result, current and potential stockholders could lose confidence in our financial reporting.

We are subject to the risk that sometime in the future, our independent registered public accounting firm could communicate to the board of directors that we have deficiencies in our internal control structure that they consider to be “significant deficiencies.” A “significant deficiency” is defined as a deficiency, or a combination of deficiencies, in internal control over financial reporting such that there is more than a remote likelihood that a material misstatement of the entity’s financial statements will not be prevented or detected by the entity’s internal control over financial reporting.

Effective internal control over financial reporting is necessary for us to provide reliable financial reports and effectively prevent fraud. If we cannot provide reliable financial reports or prevent fraud, we could be subject to regulatory action or other litigation and our operating results could be harmed. As set forth in this report, as of March 31, 2024, Company management assessed the effectiveness of our internal control over financial reporting (as defined in Rule 13a-15 and Rule 15d-15 under the Exchange Act) based on the criteria for effective internal control over financial reporting established in Internal Control - Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission and SEC guidance on conducting such assessments. Management concluded that, during the fiscal year ended March 31, 2024, the Company’s internal control over financial reporting was not effective. Management realized that there were deficiencies in the design or operation of the Company’s internal control over financial reporting that adversely affected it and that management considers to be material weaknesses. Such material weakness in our internal control over financial reporting have not been remedied.

The ineffectiveness of NaturalShrimp’s internal control over financial reporting was due to the following material weaknesses, which are indicative of many small companies with small number of staff:

● Inadequate segregation of duties consistent with control objectives; ● Lack of independent members of the board of directors (as of the balance sheet date) and the absence of an audit committee to exercise oversight responsibility related to financial reporting and internal control; ● Lack of risk assessment procedures on internal controls to detect financial reporting risks in a timely manner; and ● Lack of documentation on policies and procedures that are critical to the accomplishment of financial reporting objectives.

Company management continues to implement measures designed to ensure that control deficiencies contributing to the material weakness are remediated, such that these controls are designed, implemented, and operating effectively.

The remediation actions planned include:

● Identify gaps in our skills base and the expertise of its staff required to meet the financial reporting requirements of a public company; ● Establish an independent board of directors and an audit committee to provide oversight for remediation efforts and ongoing guidance regarding accounting, financial reporting, overall risks, and the internal control environment; ● Retain additional accounting personnel with public company financial reporting, technical accounting, Securities and Exchange Commission (the “SEC”) compliance, and strategic financial advisory experience to achieve adequate segregation of duties; and ● Continue to develop formal policies and procedures on accounting and internal control over financial reporting and monitor the effectiveness of operations on existing controls and procedures.

Company management will continue to monitor and evaluate the relevance of its risk-based approach and the effectiveness of our internal control over financial reporting on an ongoing basis and is committed to taking further action and implementing additional enhancements or improvements, as necessary and as funds allow.

Further, a material weakness in the effectiveness of internal control over financial reporting could result in an increased chance of fraud and the loss of customers, reduce our ability to obtain financing, and require additional expenditures to comply with these requirements, each of which could have a material adverse effect on our business, results of operations, and financial condition. For additional information, see Item 9A – Controls and Procedures.

If we are unable to implement and maintain effective internal control over financial reporting, including as applicable standards governing internal control are modified, supplemented, or amended from time to time, we may not be able to ensure that we can conclude on an ongoing basis that we have effective internal control over financial reporting. Failure to achieve and maintain effective internal control over financial reporting could cause us to face regulatory action and cause investors to lose confidence in our reported financial information, either of which could adversely affect the value of our common stock.

General Risk Factors Applicable to the Company

If we lose our key management and technical personnel, our business may be adversely affected.

In carrying out our operations, we rely upon a small group of key management and technical personnel including our Chief Executive Officer and President, Chief Operating Officer and Chief Technology Officer, and Chief Financial Officer. An unexpected partial or total loss of the services of any of our executive officers could be detrimental to our business.

Our Chief Financial Officer and Treasurer does not devote his full time to the Company.

We are highly dependent on the services of William Delgado, our Chief Financial Officer and Treasurer. Although Mr. Delgado allocates a significant amount of time to the Company and is active in our management, he does not devote his full time and attention to us. In addition to his positions with the Company, Mr. Delgado is also President, Chief Executive Officer, and Chief Financial Officer of Eco-Growth Strategies, Inc., a Hawaii based bottled water company, and Chief Executive Officer and Chairman of the Board of Global Digital Solutions, Inc., a transportation technology company. Mr. Delgado may also become involved in additional ventures from time to time.

Worldwide economic and social instability could adversely affect our revenue, financial condition, and results of operations.

The health of the global economy, and the credit markets and the financial services industry in particular, as well as the stability of the social fabric of our society, will affect our business and operating results. For example, the credit and financial markets may continue to be adversely affected by the current conflict between Russia and Ukraine and measures taken in response thereto. If the credit markets are not favorable, we may be unable to raise additional financing when needed or on favorable terms. Our customers may experience financial difficulties or be unable to borrow money to fund their operations, which may adversely impact their ability to purchase our products or to pay for our products on a timely basis, if at all.

General inflation, including rising energy prices, and interest rates and wages could have negative impacts on our business by increasing our operating costs and our borrowing costs as well as decreasing the capital available for our customers to purchase our products. General inflation in the United States, Europe and other geographies has risen to levels not experienced in recent decades. Additionally, inflation and price volatility may cause our customers to reduce use of our products would harm our business operations and financial position.

We need to raise additional funds and such funds may not be available on acceptable terms or at all.

We may consider issuing additional debt or equity securities in the future to fund our business plan, for potential acquisitions or investments, or for general corporate purposes. If we issue equity or convertible debt securities to raise additional funds, our existing stockholders may experience dilution, and the new equity or debt securities may have rights, preferences, and privileges senior to those of our existing stockholders. If we incur additional debt, it may increase our leverage relative to our earnings or to our equity capitalization, requiring us to pay additional interest expenses. We may not be able to obtain financing on favorable terms, or at all, in which case, we may not be able to develop or enhance our products, execute our business plan, take advantage of future opportunities, or respond to competitive pressures.

As the owner of real estate, we are subject to risks under environmental laws, the cost of compliance with which and any violation of which could materially adversely affect us.

Our operating expenses could be higher than anticipated due to the cost of complying with existing and future laws and regulations. Various environmental laws may impose liability on the current or prior owner or operator of real property for removal or remediation of hazardous or toxic substances. Current or prior owners or operators may also be liable for government fines and damages for injuries to persons, natural resources, and adjacent property. These environmental laws often impose liability regardless of whether the owner or operator knew of, or was responsible for, the presence or disposal of the hazardous or toxic substances. The cost of complying with environmental laws could materially adversely affect our results of operations, and such costs could exceed the value of our applicable facility. In addition, the presence of hazardous or toxic substances, or the failure to properly manage, dispose of, or remediate such substances, may adversely affect our ability to use, sell, or rent our property or to borrow using our property as collateral which, in turn, could reduce our revenue and our financing ability. We have not engaged independent environmental consultants to assess the likelihood of any environmental contamination or liabilities and have not obtained a Phase I environmental assessment on our properties. Even if we did obtain a Phase I environmental assessment report, however, such reports are limited in scope and might not reveal all existing material environmental contamination.

ITEM 1B. UNRESOLVED STAFF COMMENTS

Not Applicable.

ITEM 1C. CYBERSECURITY

Risk management and strategy

Management of material risks from cybersecurity threats is integrated into the Company’s overall risk management processes and is monitored as an enterprise risk. To that extent, the Company has engaged with a third-party service provider, DATAECON, in order to help manage its ongoing cybersecurity risk. This includes processes that are put in place ~~in order~~ to oversee and identify risks from cybersecurity ~~threats~~ threats associated with its use of any third-party service provider.

During our fiscal year ended March 31, 2023 , the email of one of our executive officers was hacked by an unknown third party. Utilizing the hacked email of our executive officer, the unknown third party requested a $100,000 payment from one of our investors. In response to the email, the investor wired the $100,000 payment to a bank account provided in the email. The investor funds were not recovered, and the Company was required to make certain restitution to the investor (via the issuance of common shares). As a result of the incident, the Company engaged with DATAECON in order to reduce the potential of such cybersecurity risks going forward.

Governance

While the board of directors does not have any formal oversight of risks from cybersecurity threats, it is important to note that, ~~as discussed in Part III of this filing,~~ our board of directors is comprised solely of Messrs. Easterling, Delgado and Untermeyer. As such, pursuant to the information provided below, all risks from cybersecurity threats our immediately shared with the board of directors.

Our chief technology officer (the “CTO”), Tom Untermeyer, is responsible for managing the Company’s cybersecurity risk. Mr. Untermeyer has served as the Company’s CTO since 2015. His business experience includes systems engineering, program development and technical management. Further, Mr. Untermeyer holds a Bachelor of Science in Electrical Engineering from St. Mary’s University. As NaturalShrimp is a small company with a limited number of employees, any cybsecurity threat or incident is immediately brought to the attention of Mr. Untermeyer. Further, as noted above, Mr. Untermeyer will then immediately inform his fellow board members including Mr. Easterling and Mr. Delgado.

2610

ITEM 2. PROPERTIES

~~Our principal~~Not ~~offices are located at 13601 Preston Road, Suite E1092, Dallas, Texas 75240, where we pay $2,063 per month under an operating lease that expires on March 31, 2027.~~applicable

We intend to rebuild our 8,000 square foot water treatment plant and maintain, own and operate a 40,000 square foot production facility on 37 acres at 833 County Road 583, La Coste, Texas.

We own 344,000 square feet of production facilities consisting of:

● 270,000 square feet on 13 acres at 401 Des Moines Street, Webster City, Iowa; ● 50,000 square feet on 20 acres at 2567 190th Street, Blairsburg, Iowa; and ● 24,000 square feet on 20 acres at 12282 200th Street, Radcliffe, Iowa.

Our registered agent is Business Filings Incorporated, located at 701 S. Carson Street, Suite 200, Carson City, Nevada 89701.

ITEM 3. LEGAL PROCEEDINGS

From time to time, we may become involved in actions, claims, suits, and other legal proceedings arising in the normal course of our business. Neither NaturalShrimp nor its subsidiaries are currently a party, nor is any of our property subject, to any actions, claims, suits, or other legal proceedings the outcome of which, in management’s opinion, would, if determined adversely to us, individually or in the aggregate have a material adverse effect on our business, financial condition, or results of operations.Receivership

On September 4, 2024, Streeterville Capital, LLC, a Utah limited liability company, and Bucktown Capital, LLC, a Utah limited liability company (collectively, “Lenders”), filed a Verified Emergency Motion for Appointment of Receiver (the “Motion”) under Civil Case No. 240907138, in the District Court of Salt Lake County, Utah, against NaturalShrimp, Inc. (“NaturalShrimp”).

The Motion alleges, among other things, that NaturalShrimp has defaulted under the terms of its loan agreements with the Lenders. The Motion sought the appointment of a Receiver to immediately take control of NaturalShrimp’s assets to preserve the same.

An order was entered ex parte by the Utah State Court in the Receivership Case on September 9, 2024 granting the relief requested by Lenders. The Utah State Court duly appointed Amplēo Turnaround and Restructuring, LLC (the “Receiver”) as the receiver over NaturalShrimp’s assets. The Utah State Court’s order further scheduled a hearing to be held on September 17, 2024, on a preliminary injunction to address issues raised in the Motion.

On November 20, 2024, the Lenders and NaturalShrimp filed a Verified Amended and Stipulated Emergency Motion for Immediate Appointment of a Receiver in the Receivership Case.

ITEM 4. MINE SAFETY DISCLOSURES

Not applicable.

PART II

ITEM 5. MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES

Market Information

Our common stock iswas historically quoted on the ~~OTCQB tier of the~~ OTC Markets Group quotation system under the symbol “SHMP.” OnCurrently, ~~July~~our ~~11,~~common stock ~~2024~~is only eligible for unsolicited broker quotations and is now traded on the OTC Markets “Expert Market,” which is accessible ~~the~~solely ~~closing~~to ~~price~~broker-dealers ofand professional investors. As a result, there is no established public trading market for our common stock and ~~reported~~a byrange ~~the~~of ~~OTC~~high ~~Markets~~and ~~was~~low ~~$0.010~~bid ~~per~~information ~~share~~is not available.

Transfer Agent

Our transfer agent is TranShare Corporation, 15500 Roosevelt Blvd, Suite 302, Clearwater, FL 33760. Their telephone number is (303) 662-1112.

Holders of Common Stock

As of ~~July~~October 116, ~~2024~~2025, there were approximately ~~522~~520 shareholders of record of our common stock. As of such date, 1,~~175~~277,~~827~~546,~~812~~746 shares were issued and outstanding.

Dividends

We have never declared or paid any cash dividends on our common stock., Wenor ~~currently~~do ~~intend~~we tohave ~~retain future earnings, if~~ any, intention to ~~increase our working capital and~~ do ~~not~~so ~~anticipate paying any cash dividends~~ in the ~~foreseeable~~ future.

Securities Authorized for Issuance Under Equity Compensation Plans

There were no equity compensation plans formally approved by the shareholders of the Company as of March 31, ~~2024~~2025.

Recent Sales of Unregistered Securities

We have previously disclosed in our quarterly reports on Form 10-Q and current reports on Form 8-K filed since April 1, 2023, all sales of securities without registration under the Securities Act of 1933, as amended, during the fiscal year ended March 31, ~~2024~~2025.

Issuer Purchases of Equity Securities

During the fiscal year ended March 31, ~~2024~~2025, we did not repurchase any of our equity securities.

ITEM 6. [RESERVED]

ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Cautionary Notice Regarding Forward Looking Statements

The information contained in Item 7 contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Actual results may materially differ from those projected in the forward-looking statements as a result of certain risks and uncertainties set forth in this report. Although management believes that the assumptions made and expectations reflected in the forward-looking statements are reasonable, there is no assurance that the underlying assumptions will, in fact, prove to be correct or that actual results will not be different from expectations expressed in this report.

We desire to take advantage of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. This report contains a number of forward-looking statements that reflect management’s current views and expectations with respect to our business, strategies, products, future results and events, and financial performance. All statements made in this report other than statements of historical fact, including statements addressing operating performance, clinical developments which management expects or anticipates will or may occur in the future, including statements related to our technology, market expectations, future revenues, financing alternatives, statements expressing general optimism about future operating results, and non-historical information, are forward looking statements. In particular, the words “believe,” “expect,” “intend,” “anticipate,” “estimate,” “may,” variations of such words, and similar expressions identify forward-looking statements, but are not the exclusive means of identifying such statements, and their absence does not mean that the statement is not forward-looking. These forward-looking statements are subject to certain risks and uncertainties, including those discussed below. Our actual results, performance or achievements could differ materially from historical results as well as those expressed in, anticipated, or implied by these forward-looking statements. We do not undertake any obligation to revise these forward-looking statements to reflect any future events or circumstances.

Readers should not place undue reliance on these forward-looking statements, which are based on management’s current expectations and projections about future events, are not guarantees of future performance, are subject to risks, uncertainties and assumptions (including those described below), and apply only as of the date of this report. Our actual results, performance or achievements could differ materially from the results expressed in, or implied by, these forward-looking statements. Factors which could cause or contribute to such differences include, but are not limited to, the risks to be discussed in this Annual Report on Form 10-K and in the press releases and other communications to shareholders issued by us from time to time which attempt to advise interested parties of the risks and factors which may affect our business. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise. For additional information regarding forward-looking statements, see “Forward-Looking Statements” at the beginning of this report and our Risk Factors under Item 1A of this report.12

28Readers should not place undue reliance on these forward-looking statements, which are based on management’s current expectations and projections about future events, are not guarantees of future performance, are subject to risks, uncertainties and assumptions (including those described below), and apply only as of the date of this report. Our actual results, performance or achievements could differ materially from the results expressed in, or implied by, these forward-looking statements. Factors which could cause or contribute to such differences include, but are not limited to, risks discussed in the press releases and other communications to shareholders issued by us from time to time which attempt to advise interested parties of the risks and factors which may affect our business. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise. For additional information regarding forward-looking statements, see “Forward-Looking Statements” at the beginning of this report.

Use of Generally Accepted Accounting Principles (“GAAP”) Financial Measures

We use United States GAAP financial measures, unless otherwise noted. All of the GAAP financial measures used by us in this report relate to the inclusion of financial information. This discussion and analysis should be read in conjunction with our financial statements and the notes thereto included elsewhere in this annual report. All references to dollar amounts in this section are in United States dollars, unless expressly stated otherwise.

This discussion and analysis should be read in conjunction with our financial statements and the notes thereto included elsewhere in this annual report.

Overview

We ~~are~~were an aquaculture technology company that ~~has~~ developed proprietary, patented platform technologies to allow for the production of aquatic species in an ecologically controlled, high-density, low-cost environment, and in fully contained and independent production facilities without the use of antibiotics or toxic chemicals. ~~We own and operate indoor recirculating Pacific White shrimp production facilities in Texas and Iowa using these technologies.~~

We were incorporated in July 2008 and acquired substantially all of the assets of NSH, the company that developed the proprietary technology to grow and sell shrimp potentially anywhere in the world that is now the basis of our business. In 2015 NSH acquired 88.62% of the issued and outstanding shares of NaturalShrimp Common Stock, NSC and NS Global became our wholly-owned subsidiaries, and we changed our principal business to a global shrimp farming company.

On October 5, 2015, we formed NAS with F&T, the purpose of which was to jointly develop with F&T certain water technologies.

On December 17, 2020, we acquired for $10.0 million certain assets from VeroBlue Farms USA, Inc. and its subsidiaries, which assets included our three current facilities located in Iowa.

On May 25, 2021, we purchased certain parent and intellectual property rights from F&T and acquired all of its outstanding shares in NAS, thereby making NAS our wholly-owned subsidiary, for $3.0 million in cash and 13,861,386 shares of NaturalShrimp Common Stock.

On August 25, 2021, through NAS, we entered into an Equipment Rights Agreements with Hydrenesis-Delta Systems, LLC and a Technology Rights Agreement with Hydrenesis Aquaculture LLC. The Equipment Rights Agreement relates to specialized and proprietary equipment used to produce and control, dose, and infuse Hydrogas^® and RLS^® into both water and other chemical species, while the Technology Rights Agreement provides us with a sublicense to the rights to Hydrogas^® and RLS^®.

The Company has three wholly-owned subsidiaries: NSC, NS Global, and NAS, and owns 51% of NaturalShrimp/Hydrenesis LLC, a Texas limited liability company.

~~Most~~During September of ~~the~~2024, ~~shrimp~~Ampleo ~~consumed~~Turnaround inand Restructuring, LLC was placed as the ~~world~~receiver ~~today~~over ~~come~~the ~~from~~Company’s. ~~shrimp~~Further, ~~farms~~during February ~~that~~of ~~can~~2025, ~~only~~the ~~produce~~receiver ~~crops~~submitted ~~between~~a ~~one~~motion ~~and~~to ~~four~~sell ~~times~~substantially ~~per~~all ~~year.~~of ~~Consequently,~~ the ~~shrimp~~Company’s ~~from~~assets ~~these~~to ~~farms~~Streeterville ~~requires~~and Bucktown ~~freezing~~Capital ~~between~~for ~~crops~~an ~~until~~approximate ~~consumed~~credit bid of $35.7 ~~Our~~million ~~system~~and is$100,000 ~~designed~~in cash. The motion to ~~harvest~~sell ~~different~~was ~~tanks~~approved ~~each~~by ~~week,~~the court ~~which~~on ~~provides~~March ~~for~~30, ~~fresh~~2025. ~~shrimp~~The ~~throughout~~Company ~~the~~believes ~~year.~~that Weit ~~strive~~continued to ~~create~~function as a ~~niche~~going ~~market~~concern ofuntil ~~“Always~~the ~~Fresh,~~date ~~Always~~of ~~Natural” shrimp~~the approved sale. As such, ~~opposed~~the toCompany ~~many~~has ofpresented ~~the~~going ~~foreign~~concern ~~shrimp~~financial ~~farms~~statements as of March 30, we2025 ~~can~~and ~~also~~for ~~claim~~the ~~that~~period ~~our~~from ~~product~~April is1, ~~100%~~2024 through ~~free~~March of30, ~~antibiotics~~2025. ~~The~~Furthermore, ~~ability~~in toaccordance with ASC 205-30, Liquidation ~~grow~~Basis ~~shrimp~~of ~~locally~~Accounting, ~~and~~the ~~year-round~~Company ~~allows~~has uspresented toits ~~provide~~financial ~~this~~statements ~~high-end~~(using ~~product~~a toconvenience ~~upscale~~date) ~~restaurant~~as ~~and~~of ~~grocery~~March ~~stores~~31, ~~throughout~~2025 ~~the~~under ~~world~~the liquidation basis of accounting. WeAs ~~rotate~~such, the ~~stocking~~financial ~~and~~statements ~~harvesting~~included in the filing also include a Statement of ~~our~~Net Liabilities ~~tanks~~in ~~each~~liquidation ~~week~~as of March 31, ~~which~~2025. ~~allows~~As ~~for~~there ~~weekly~~was ~~shrimp~~only ~~harvests.~~a ~~Our~~one-day ~~product~~period isbetween ~~free~~the ~~of pollutants~~time ~~and~~liquidation isbecame ~~fed~~imminent ~~only~~and the end of the ~~highest-quality~~reporting ~~feeds~~period, a Statement of Changes in Net Assets (liabilities) in liquidation has not been provided.

We began making regular weekly sales of live shrimp from our Iowa production facility in November 2021 and from our Texas production facility in June 2022. The Company is using its aforementioned platform technologies to retrofit 344,000 square feet of its existing Iowa facilities that we expect will, once fully operational, produce 15,000 pounds of shrimp per week. We believe that the combined output from our La Coste, Texas and Iowa facilities will be approximately 20,000 pounds of shrimp production per week by the third calendar quarter of 2025.

Recent Material Events

Fires at Texas Facility

On March 18, 2020, our research and development plant in La Coste, Texas was destroyed by a fire. The majority of the damage was to our pilot production plant, which comprised approximately 35,000 square feet of the total size of the production facilities at the La Coste location, but the fire did not impact the separate greenhouse, reservoirs, or utility buildings. The Company used the proceeds from its subsequent insurance claim to rebuild a 40,000 square foot production building at the La Coste facility and to repurchase the equipment needed to replace what was lost in the fire.

On July 3, 2022, a building containing our water treatment and purification system in La Coste, Texas (the “Water Treatment Plant”) was completely destroyed in a fire. The Water Treatment Plant is a separate building consisting of approximately 8,000 square feet located apart from the production building, which was not damaged. The Company received $700,000 from its insurance company for the claim it filed for the fire damage. The Company used the proceeds from the insurance to acquire and replace necessary equipment that had been destroyed in the fire. Due to the damage caused by the fire, the Company has written off approximately $1.8 million of the fixed assets and $325,000 of the accumulated depreciation, which, less the $700,000 insurance settlement, resulted in the recognition of a $869,379 loss due to fire for the year ended March 31, 2023.

Results of Operations

~~Comparison~~As discussed above, the Company ceased being a going concern on March 30, 2025 and, subsequent to that date, began applying the liquidation basis of accounting. As such, the ~~Year~~Company ~~Ended~~believes that a discussion of its results of operations, whether that includes i) comparing the liquidation basis period to the going concern period or ii) comparing the going concern period ended March 3130, ~~2024~~2025 to the ~~Year~~prior ~~Ended~~year period ended March 31, ~~2023~~2024 would not be informative.

~~Revenue~~13

WeLiquidity ~~had gross sales revenue of $446,301~~ and ~~$238,685~~Capital ~~during the fiscal years ended March 31, 2024 and 2023, respectively, which represents an increase of $207,616, or 87.0%.~~Resources

~~Our~~At ~~increase~~March in31, ~~gross~~2025, ~~sales~~we ~~revenue~~had ~~during~~cash ~~fiscal~~on ~~year~~hand ~~2024 as compared to the prior year was a result~~ of ~~the~~$101,969. ~~revenue~~As ~~recognized~~discussed in the ~~current year of $300~~filing,~~000~~ asthe aCompany ~~result~~has ofliquidated aits ~~six-month~~primary ~~agreement~~operating ~~the~~assets in ~~Company~~order ~~entered~~to ~~into~~settle ~~with~~its aoutstanding ~~company~~debt ~~for~~with ~~the~~Streeterville ~~use~~and ofBuckstown ~~the NSI Technologies~~Capital. ~~During the~~At ~~same period in~~ the ~~prior~~time ~~year our sale~~ of ~~shrimp~~this ~~was~~filing, ~~primarily to two customers who engaged with~~ the Company ~~for~~does anot ~~specific trial~~have ~~period.~~a ~~After~~finalized ~~the~~plan ~~trial~~regarding ~~period,~~ the ~~parties~~settlement ~~could~~of ~~have,~~its ~~but~~remaining ~~decided~~outstanding ~~not~~liabilities ~~to,~~or ~~negotiate~~an ~~and~~exact ~~execute~~timeline aregarding ~~long-term~~its ~~distribution~~liquidation ~~agreement~~process.

~~We had~~Critical ~~net~~Accounting revenues of $320,606 and $37,832, respectively, during the fiscal years ended March 31, 2024 and 2023. The increase in net revenues for fiscal 2024 is the result of the increase in gross sales revenue, which was primarily driven by the cost of sales in fiscal 2024.Estimates

Cost of Sales

Cost of sales includes direct costs related to the production and sale of our products, primarily the cost of the post-larva shrimp that we purchase to grow into our shrimp product at our facilities and the costs of shipping purchase orders to customers. Cost of sales were $125,695 and $200,853, respectively, during the fiscal years ended March 31, 2024 and 2023. The decrease in cost of sales relates to the decrease in sales of shrimp during our fiscal year ended March 31, 2024 as compared to the same period in the prior year.

Operating Expenses

The following table summarizes the various components of our operating expenses for each of the fiscal years ended March 31, 2024 and March 31, 2023:

	Years Ended March 31,
	2024		2023
Salaries and related expenses	$	1,936,572	$	2,060,237
Professional fees		3,374,748		1,358,185
Other general and administrative expenses		1,525,497		2,415,749
Rent		43,062		89,524
Facility operations		772,196		1,936,296
Research and development		-		190,855
Depreciation		1,737,825		1,795,427
Amortization		1,470,000		1,470,000
Total	$	10,859,900	$	11,316,273

Operating expenses for the fiscal year ended March 31, 2024, decreased by approximately $0.5 million, or 4.0%, as compared to operating expenses for the fiscal year ended March 31, 2023, primarily as a result of a decrease in various expenses of approximately $2.5 million, offset by an increase of approximately $2.0 million in professional fees.

Decreases during fiscal year 2024 compared to the prior fiscal year included approximately $1.2 million, or 60.1%, in facility operations based on progress in the production of our goods to be sold, resulting in some of these costs being now recognized in cost of goods sold. The basic general and administrative costs, grouped together, also decreased in the current year compared to the prior year, by approximately $890,000, or 36.9%, as a result of the Company attempting to reduce some general expenses. During the current period there was no research and development work being done, so therefore there was a decrease of approximately $190,000, or 100% as compared to the same period in the prior year. The Company also decreased their salaries and wages by approximately $124,000, or 6.0% in the current period. All of these decreases were offset by the current year’s increase in professional fees, of $2,017,000, or 148.5%. The increase was primarily driven by $1,336,000 in the prior year that was Deferred offering costs recognized as an asset in relationship to the Yotta Merger Agreement, but upon the termination of the merger agreement the Deferred offering costs were expensed in professional fees. Additionally, included in this professional fees increase was 40,100,000 common shares issued to consultants, with a fair value of $604,700. The depreciation and amortization amounts were similar over the two years.

Other Income (Expense)

The following table summarizes the various components of our other income (expenses) for each of the years ended March 31, 2024 and March 31, 2023:

	Year Ended March 31,
	2024			2023
Interest expense	$	(73,924	)	$	(2,273,353	)
Interest expense – related parties		(35,051	)		(16,022	)
Amortization of debt discount		(56,868	)		(5,019,883	)
Change in fair value of derivative liability		-			811,000
Change in fair value of warrant liability		331,000			3,568,000
Change in fair value of restructured notes		(5,162,366	)		(2,842,132	)
Gain on extinguishment of debt		-			2,383,088
Extension fee		(190,000	)		(575,100	)
Gain on settlement of accrued expenses		-			124,202
Loss due to fire		-			(869,379	)
Gain on termination of lease		32,375			-
Gain on sale of machinery and equipment		91,717			-
Total	$	(5,063,117	)	$	(4,709,579	)

Other Income (expense) for the year ended March 31, 2024, decreased from the year ended March 31, 2023, by approximately $354,000, or 7.5%. A majority of the change is a result of the extinguishment and restructuring of the Senior and August Restructured notes, as of November 4, 2022. Due to the extinguishment, in the prior year there was a gain on extinguishment of debt, as well as the amortization of the remaining debt discount on the two notes, and a deletion of a derivative liability. This was in the prior year an expense of approximately $5.0 million related to the removal of the original debt discounts for the two notes, with an amortization of the recognized debt discounts on the original issuance of the notes through November 4, 2022, offset by a gain on extinguishment of approximately $2.4 million, which are both basically a 100% difference to the present year. Additionally, the derivative liability related to the extinguished debt, which had a change in fair value with a recognition of income in the prior year of $811,000, was removed as part of the extinguishment and new recognition of the restructured notes. The restructured notes were elected to be accounted for under the fair value option, revalued each period end until settlement, with an increase of approximately $2.4 million in the expense recognized for the change in fair value between the two year ends. Further, under the ASC 825 fair value option, the interest expense is not recognized separately from the fair value of the restructured notes, and therefore, there is a decrease in interest expense of approximately $2.2 million, or 96.7%. These changes as an outcome of the extinguishment of the debt resulted in a total decrease in expenses of approximately $4.0 million. In the current period, there was an increase in the expense for the change in fair value of the restructured notes payable of approximately $2.3.

The Company originally recognized the warrant liability in December 2021 and re-measures it to fair value at each period-end. The decrease in the fair value as of March 31, 2024, resulted in a $331,000 recognition as income during the year ended March 31, 2024, compared to a decrease in fair value as of March 31, 2023, which resulted in $3,568,000 in income during the year ended March 31, 2023.

The $869,379 loss due to fire during the year ended March 31, 2023, was the result of the destruction by fire of the Company’s building containing its water treatment and purification system in La Coste, Texas.

The Company recognized $575,100 for paying a portion of an extension expense related to the Merger Agreement, as a result of the Business Combination not being closed by the first extension date of January 23, 2023, and the second extension date of April 23, 2023.

Liquidity, Financial Condition and Capital Resources

At March 31, 2024, we had cash on hand of $115,525 and a working capital deficit of approximately $38.1 million, compared to cash on hand of $216,465 and a working capital deficit of approximately $9.3 million at March 31, 2023. The decrease in working capital for the year ended March 31, 2024, is mainly due to the Senior Restructured Note fair value of $27,120,000 being reclassed to current liabilities based on the maturity date now being current, and an approximate $1.5 million decrease in current assets, as discussed in further detail below.

Total current assets were approximately $381,000 at March 31, 2024 compared to $1,882,000 at March 31, 2023. The major decrease in current assets at March 31, 2024, compared to March 31, 2023, is the result of the approximate $1,336,000 balance of the Deferred offering costs which were expensed due to the termination of the Merger Agreement. Additionally, there was a use of the cash on hand of approximately $101,000 and the current period expense of approximately $117,000 of Prepaid expenses.

Total current liabilities increased from $11.2 million at March 31, 2023 to $38.5 million at March 31, 2024. The change in current liabilities is mainly the result of the reclass of the Restructured Senior note payable to current liability, the removal of the derivative liability of $13.1 million fair value related to the restructured convertible note and the decrease in the warrant liability fair value of $3.6 million at March 31, 2023, partially offset by the new notes payable and the increase in accounts payable and other accrued expenses and accrued interest.

Working Capital Deficiency

The following table summarizes our working capital deficiency at March 31, 2024 and 2023:

	March 31,		March 31,
	2024		2023
Current assets	$	381,135	$	1,882,371
Current liabilities		38,528,534		11,221,783
Working capital deficiency	$	38,147,399	$	9,339,412

Current assets decreased during the year ended March 31, 2024, primarily because of the termination of the Merger Agreement resulting in the expense of the $1,336,263 of Deferred offering costs. Also contributing to the decrease in current assets was the expense of Prepaid expenses assets, and the use of $101,000 of our cash on hand. The increase in current liabilities during the year ended March 31, 2024, is primarily due to the reclassification of the Restructured Senior note payable, with a fair value as of the end of the current year of $27,120,000, as well as the $240,000 increase in the fair value of the Restructured August note payable, an increase in accrued interest, related parties, of approximately $716,000, and the issuance of $140,000 of notes payable to related parties. This was offset by the decrease in the fair value of the warrant liability of $331,000, and a decrease in accrued interest of approximately $816,000, based on the recognition of the related restructured notes at its fair value under ASC 825 at approximately $2.2 million.

Cash Flows

The following table summarizes our cash flows for each of the fiscal years ended March 31, 2024 and March 31, 2023:

	Years Ended March 31,
	2024			2023
Net cash used in operating activities	$	(3,875,138	)	$	(5,858,646	)
Net cash provided by (used in) investing activities		121,490			(1,848,447	)
Net cash provided by financing activities		3,652,708			6,189,518
Net change in cash	$	(100,940	)	$	(1,517,575	)

Net cash used in operating activities during the year ended March 31, 2024, was approximately $2.0 million less as compared to the year ended March 31, 2023. The decrease in cash used is primarily due to the increase in the change in fair value of the restructured notes payable, the decrease in the change in fair value of the warrant liability, the decrease accrued interest related to the restructured notes payable. The deferred offering costs was an increase in assets during the prior year, and a reduction in assets when expensed in the current year.

The net cash provided by investing activities in the year ended March 31, 2024 decreased by approximately $1,975,000 compared to net cash used by investing activities for the same period in the prior fiscal year. During the current period cash was only used to purchase approximately $43,000 and offset by $169,000 received for the sale of machinery and equipment as compared to cash used to purchase fixed assets which consists of approximately $2,548,000 for the prior year period, offset by $700,000 of cash received for the sale of machinery and equipment.

The net cash provided by financing activities decreased by approximately $2,561000 between periods. For the current period, the Company received approximately $3,169,000 for the sale of shares of common stock, $150,000 from the sale of Series E Preferred Shares, $194,000 for the sale of the new Series G Preferred Shares and $140,000 from promissory notes with related parties. In the same period in the prior year the Company received $3,076,000 for the sale of shares of common stock and $250,000 proceeds from related party promissory notes. In the prior period, as a result of the restructuring of two of the notes, the Company had received a net amount of $1,465,000 based on $4,865,000 from the original August promissory note offset by the removal of $3,900,000 that had been held in escrow until the restructuring of the August promissory note, as well as receiving $1,500,000 that had been held in escrow from the restructured convertible note they entered into in December of 2021.

Recent Financing Arrangements and Developments

Short-Term Debt and Lines of Credit

The Company has a working capital line of credit with Capital One Bank for $50,000. The line of credit bears an interest rate of prime plus 25.9 basis points, which totaled 34.4% and 33.9% as of March 31, 2024 and 2023, respectively. The line of credit is unsecured. The balance of the line of credit was $9,580 at both March 31, 2024 and March 31, 2023.

The Company also has a working capital line of credit with Chase Bank for $25,000. The line of credit bears an interest rate of prime plus 10 basis points, which totaled 18.5% and 18.0% as of March 31, 2024 and 2023, respectively. The line of credit is secured by assets of the Company’s subsidiaries. The balance of the line of credit was $10,237 as of both March 31, 2024 and March 31, 2023.

GHS Purchase Agreement

On November 4, 2022, the Company entered into a purchase agreement (the “GHS Purchase Agreement”) with GHS pursuant to which the Company may require GHS to purchase a maximum of up to 64,000,000 shares of NaturalShrimp Common Stock (“GHS Purchase Shares”) based on a total aggregate purchase price of up to $5,000,000 over a one-year term that ended on November 4, 2023. Notwithstanding the foregoing dollar limitations, the Company and GHS may, from time to time, mutually agree in writing to waive the aforementioned limitations for a particular purchase of GHS Purchase Shares, which waiver may not exceed the 4.99% beneficial ownership limitation contained in the GHS Purchase Agreement. NaturalShrimp will control the timing and amount of any sales of GHS Purchase Shares to GHS. The Company intends to use the net proceeds from the sale of any GHS Purchase Shares for working capital and general corporate purposes.

The purchase price for the GHS Purchase Shares is 90% of the lowest volume-weighted average price during the 10 consecutive business days immediately preceding, but not including the applicable purchase date. The Company must deliver a number of GHS Purchase Shares equal to 112.5% of the aggregate purchase amount for any such purchase of GHS Purchase Shares divided by the applicable purchase price per share.

If any default events, as set forth in the GHS Purchase Agreement, has occurred and is continuing, the Company may not require GHS to purchase any GHS Purchase Shares.

Further, pursuant to the terms of the GHS Purchase Agreement, from November 4, 2022 until the later of the Closing and the 12-month anniversary of the first delivery of GHS Purchase Shares, upon any issuance by the Company or any of its subsidiaries of shares of NaturalShrimp Common Stock or NaturalShrimp Common Stock equivalents for cash, indebtedness, or a combination of units thereof (a “Subsequent Financing”), GHS will have the right to participate in any such financing in an amount equal to 100% or, following the Merger, up to 50% of such financing, on the same terms, conditions and price otherwise provided for in such subsequent financing.

In the year ended March 31, 2024, the Company sold 11,981,706 shares of common stock at a net amount of approximately $376,000, at a share price of $0.03, of the GHS Purchase Agreement.

In the year ended March 31, 2023, the Company sold 52,018,294 shares of common stock at a net amount of approximately $3,076,000, at share prices ranging from $0.04 to $0.10.

$10,000,000 Common Stock Equity Financing

On April 28, 2023, the Company entered into an Equity Financing Agreement (“Equity Financing Agreement”) and Registration Rights Agreement with GHS. Under the terms of the Equity Financing Agreement, GHS agreed to provide the Company with up to $10,000,000 upon effectiveness of a registration statement on Form S-1 (the “Registration Statement”) filed with the SEC. The Registration Statement was filed on July 20, 2023 and the SEC declared it effective on August 14, 2023.

With the effectiveness of the Registration Statement, the Company now has the discretion to deliver puts to GHS and GHS will be obligated to purchase shares of the Company’s common stock, par value $0.0001 per share (the “Common Stock”) based on the investment amount specified in each put notice. The maximum amount that the Company shall be entitled to put to GHS in each put notice shall not exceed two hundred percent (200%) of the average daily trading dollar volume of the Company’s Common Stock during the ten (10) trading days preceding the put, so long as such amount does not equal less than ten thousand dollars ($10,000) or greater than one million dollars ($1,000,000). Pursuant to the Equity Financing Agreement, GHS and its affiliates will not be permitted to purchase, and the Company may not put shares of the Company’s Common Stock to GHS that would result in GHS’s beneficial ownership equaling more than 4.99% of the Company’s outstanding Common Stock. The price of each put share shall be equal to eighty percent (80%) of the Market Price (as defined in the Equity Financing Agreement). Following an up-list to the NASDAQ or equivalent national exchange, the price of each put share shall be equal to ninety percent (90%) of the Market Price, subject to a floor price of $1.00 per share. Puts may be delivered by the Company to GHS until the earlier of twenty-four (24) months after the effectiveness of the Registration Statement or the date on which GHS has purchased an aggregate of $10,000,000 worth of Common Stock under the terms of the Equity Financing Agreement.

In the three months ended September 30, 2023, the Company sold 31,808,246 shares of common stock at a net amount of approximately $566,000, at share price of $0.02 related to the Equity Financing Agreement.

In the three months ended December 31, 2023, the Company sold 44,843,442 shares of common stock at a net amount of approximately $459,000, at share prices ranging from $0.01 to $0.02, in relation to the Equity Financing Agreement. Included in this amount, on October 31, 2023, the Company issued GHS 7,868,985 shares of common stock, for no purchase price, as consideration resulting from GHS receiving a phishing email informing them to wire a purchase price to an incorrect bank, resulting in the Company not receiving the wire and for which GHS resent a second wire to the Company’s correct bank.

In the last quarter ending March 31, 2024, the Company sold 100,816,636 shares of common stock at a net amount of approximately $845,000, at share prices of $0.008 through $0.009, in relation to the Equity Financing Agreement.

GHS 2023 Purchase Agreement

On May 9, 2023, the Company entered into a purchase agreement (the “GHS 2023 Purchase Agreement”) with GHS pursuant which the Company may require GHS to purchase a maximum of up to 45,923,929 shares of the Company’s common stock (“GHS Purchase Shares”) based on a total aggregate purchase price of up to $6,000,000 over a one-year term that ends on May 9, 2024. The Company intends to use the net proceeds from this offering for working capital and general corporate purposes.

The GHS 2023 Purchase Agreement provides that, upon the terms and subject to the conditions and limitations set forth in the agreement, the Company has the right from time to time during the term of the agreement, in its sole discretion, to deliver to GHS a purchase notice (a “Purchase Notice”) directing GHS to purchase (each, a “GHS Purchase”) a specified number of GHS Purchase Shares. A GHS Purchase will be made in a minimum amount of $10,000 and up to a maximum of $1,500,000 and provided that, the purchase amount for any purchase will not exceed 200% of the average of the daily trading dollar volume of the Company’s common stock during the 10 business days preceding the purchase date. Notwithstanding the foregoing dollar limitations, the Company and GHS may, from time to time, mutually agree (in writing) to waive the aforementioned limitations for a relevant Purchase Notice, which waiver, for the avoidance of doubt, shall not exceed the 4.99% beneficial ownership limitation contained in the GHS 2023 Purchase Agreement. The “Purchase Price” means, with respect to a purchase made pursuant to the GHS 2023 Purchase Agreement, 90% of the lowest VWAP (as defined in the GHS 2023 Purchase Agreement) during the Valuation Period (the ten (10) consecutive business days immediately preceding, but not including, the applicable purchase date). The Company shall deliver a number of GHS Purchase Shares equal to 112.5% of the aggregate purchase amount for such GHS Purchase divided by the Purchase Price per share for such GHS Purchase, against payment by GHS to the Company of the purchase amount with respect to such Purchase (less documented deposit and clearing fees, if any), as full payment for such GHS Purchase Shares via wire transfer of immediately available funds.

If there are any default events, as set forth in the GHS 2023 Purchase Agreement, has occurred and is continuing, the Company shall not deliver to GHS any Purchase Notice.

Further, pursuant to the terms of the GHS 2023 Purchase Agreement, from May 9, 2023 until the date that is the later of (i) the closing of the transactions whereby Yotta Merger Sub, Inc. will merge with and into the Company, with the Company as the surviving company (the “Merger”); and (ii) the 12 month anniversary of the initial closing pursuant to the Section 2(a) of GHS Purchase Agreement, upon any issuance by the Company or any of its subsidiaries of Common Stock or Common Stock equivalents for cash consideration, indebtedness or a combination of units thereof (a “Subsequent Financing”), GHS shall have the right to participate in any financing, up to an amount of the Subsequent Financing equal to 100% of the Subsequent Financing (the “Participation Maximum”) on the same terms, conditions and price provided for in the Subsequent Financing. Following the Merger, the Participation Maximum shall be 50% of the Subsequent Financing.

In the three months ended June 30, 2023, the Company sold 28,205,605 shares of common stock at a net amount of approximately $923,000, at share prices ranging from $0.03 to $0.04 related to the GHS 2023 Purchase Agreement.

Series G Preferred Stock

On December 1, 2023, the Board authorized the issuance of 10,000 preferred shares to be designated as Series G Preferred Stock (“Series G Preferred Stock”). The Series G Preferred Stock have a par value of $0.0001, a stated value of $1,200 and dividends at the rate of 8% per annum, payable quarterly, to be paid in cash or in-kind, at the discretion of the Company. The Series G Preferred Stock will vote together with the common stock on an as-converted basis subject to the beneficial ownership limitations. The Series G Preferred Stock is required to be redeemed by the Company no later than one calendar year from the date of its issuance. The Series G Preferred Stock are also redeemable at the option of the Company at any time after the original issued date, upon 3 business days’ notice, at a premium rate which is (a) 1.15 if all of the Series G Preferred Stock is redeemed within 90 calendar days from the issuance date thereof; (b) 1.2 if all of the Series G Preferred Stock is redeemed after 90 calendar days and within 120 calendar days from the issuance date thereof; (c) 1.25 if all of the Series G PS is redeemed after 120 calendar days and within 180 calendar days from the issuance date thereof. The Company shall be permitted to redeem the Series G Preferred Stock at any time in cash upon 3 business days prior notice to the Holder or the Holder may convert the Series G Preferred Stock within 3 business days period prior to redemption. The Holder shall have the right to either redeem for cash or convert the Series G Preferred Stock into common stock within 3 business days following the consummation of a qualified offering. The conversion price is based on the discounted market price which is the lower of: (i) A fixed price equaling the closing bid price for the common stock on the trading day preceding the execution of the SPA; or (ii) 100% of the lowest volume weighted average price (“VWAP)” for the common stock during 10 trading days preceding the conversion request, subject to adjustment. As the redemption feature is mandatorily redeemable within one year of the issuance date, with a substantive conversion option, the Series G Preferred Stock would not fall under liability classification but is to be classified as mezzanine equity.

Series G Preferred Equity Offering

On December 14, 2023, the Company entered into a Securities Purchase Agreement for the sale of 110 shares of Series G Preferred Stock at a price of $1,000 per share of preferred stock, for a total of $110,000. The Purchaser also received an “Equity Incentive”, which was an additional 35 Series G Preferred Stock issued to the Purchaser at the initial closing and deemed to be earned at the time of its issuance. Following the initial closing, the Company and Purchaser shall mutually agree from time to time for the Company to sell and the Purchaser to purchase up to 400 shares of Series G Preferred Stock at a price of $1,000 per share in separate closings. The Series G Preferred Stock will earn a dividend of 8% per annum, for as long as the relevant Preferred Stock has not been redeemed or converted. Dividends are to be paid quarterly, and at the Company’s discretion, in cash or Preferred Stock calculated at the purchase price. On December 19, 2023, the Company received an initial tranche of $110,000 under the SPA, less $13,000 for legal and commission fees. The $77,000 discount will be accreted up to the redemption price over the one-year period until redemption. As of December 31, 2023, the accretion for the Series G Preferred Stock was $3,000.

On January 24, 2024, the Company received a tranche of $100,000 under the SPA for 100 Series G Preferred Stock with a stated value of $120,000, less $3,000 for legal and commission fees. The $23,000 discount will be accreted up to the redemption price over the one-year period until redemption.

On February 23, 2024, the Company entered into a consulting agreement in which it was required to issue the consultant a retainer fee to be either $180,000 in cash or $200,000 in shares of the Company’s preferred stock. The Company issued 200 of their Series G, with a stated value of $240,000. The $40,000 discount will be accreted up to the redemption price over the one-year period until redemption.

January 2023 Note

On January 20, 2023, the Company entered into a secured promissory note (“January 2023 Note”) with an investor (the “Investor”). The January 2023 Note is in the aggregate principal amount of $631,968. The Note has an interest rate of 10% per annum, with a maturity date nine months from the issuance date of the Note. The Note carried an original issue discount totaling $56,868, whereby the purchase price is $575,100. All payments made by the Company under the terms in the note, including upon repayment of this Note at maturity, shall be subject to an exit fee of 15% of the portion of the outstanding balance being paid. The cash was not transferred to the Company’s bank account, but instead to the merger entity, Yotta, for a contribution to a required extension fee for the Business Combination. On November 17, 2023, the Company received an extension of the maturity date to June 30, 2024, for a $5,000 extension fee.

On November 8, 2023, the Company and the Investor entered into an Exchange Agreement on the January 2023 Note. In the Exchange Agreement the original note was partitioned into a $132,000 new promissory note, leaving the original January 2023 Note with an adjusted balance of $499,968. The partitioned note was exchanged for 10,000,000 shares of the Company’s common stock. The shares of common stock issued had a fair value of $160,000 based on the market price of the shares of $0.016 on the execution date, resulting in an excess of $28,000 to be recognized as a financing expense.

On January 17, 2024, the Company and the Investor entered into an Exchange Agreement on the January 2023 Note. In the Exchange Agreement the remaining January 2023 Note was partitioned into a $99,450 new promissory note, leaving the original January 2023 Note with an adjusted balance of $400,518. The partitioned note was exchanged for 10,000,000 shares of the Company’s common stock. The shares of common stock issued had a fair value of $110,000 based on the market price of the shares of $0.011 on the execution date, resulting in an excess of $10,550 to be recognized as a financing expense.

On February 22, 2024, the Company and the Investor entered into an Exchange Agreement on the January 2023 Note. In the Exchange Agreement the remaining January 2023 Note was partitioned into a $91,800 new promissory note, leaving the original January 2023 Note with an adjusted balance of $313,718. The partitioned note was exchanged for 10,000,000 shares of the Company’s common stock. The shares of common stock issued had a fair value of $190,000 based on the market price of the shares of $0.019 on the execution date, resulting in an excess of $98,200 to be recognized as a financing expense.

April 2023 Promissory Note

On April 21, 2023, the Company entered into a $60,000 promissory note with Yotta Investment LLC (“Yotta”), with no interest to accrue on the principal balance. The promissory note is to be settled on the date of closing of the business combination contemplated by the Merger Agreement with Yotta (“Merger Agreement”). Upon the occurrence of an event of default, including the termination of the Merger Agreement, the unpaid principal balance of this note, and all other sums payable with regard to this note, shall automatically and immediately become due and payable, in all cases without any action on the part of the Company. The Merger Agreement was terminated , and management believes the promissory note will be settled in the Breakup Fee.

May 2023 Promissory Note

On May 17, 2023, the Company entered into an additional $60,000 promissory note with Yotta, with no interest to accrue on the principal balance. The promissory note is to be settled on the date of closing of the business combination contemplated by the Merger Agreement with Yotta. Upon the occurrence of an event of default, including the termination of the Merger Agreement, the unpaid principal balance of this note, and all other sums payable with regard to this note, shall automatically and immediately become due and payable, in all cases without any action on the part of the Company. The Merger Agreement was terminated, and management believes the promissory note will be settled in the Breakup Fee.

Restructured August Note Payable

On August 17, 2022, Streeterville purchased from us the August Note. The August Note has an annual interest rate of 12% and was to mature on May 17, 2023. The August Note carried an original issue discount (“OID”) totaling $433,333 and a transaction expense amount of $10,000, both of which are included in its principal balance. At issuance the Company received $1.1 million, with $3.9 million put into escrow to be held until certain terms are met, which includes $3.4 million upon the listing of the NaturalShrimp Common Stock on the New York Stock Exchange (“NYSE”) or Nasdaq. The August Note also provided that if the Company did not effect the listing of the NaturalShrimp Common Stock by November 15, 2022, the then-current outstanding balance on the August Note increased by 10%, and that following such listing, while the August Note was still outstanding, 10 days after the Company sold any shares of NaturalShrimp Common Stock or NaturalShrimp Preferred Stock, it would have been required to make a mandatory prepayment on the August Note equal to the greater of $3.0 million or 33% of the gross proceeds of such equity sale. The August Note is secured by all of the assets of the Company. All payments made by the Company on the note, including upon repayment at maturity, is subject to an exit fee of 15% of the portion of the outstanding balance being paid.

In conjunction with the Merger Agreement, the Company entered into a Restructuring Agreement with respect to the August Note through which the August Note was amended and restated in its entirety. The Restructuring Agreement included key modifications, in which (i) the uplist terms were removed, (ii) in the event that the Closing does not occur on or before December 31, 2022, the then-current outstanding balance will be increased by 2% and will increase by 2% every 30 days thereafter until the Closing or termination of the Merger Agreement, and (iii) the outstanding balance of the August Note may be increased by 5% to 15% upon the occurrence of an event of default or failure to obtain Streeterville’s consent or notify Streeterville for certain major equity related transactions. The Business Combination has not yet closed, and therefore the outstanding balance on the August Note increased by 2% per month, in the amount of approximately $144,000, as of March 31, 2023. The Merger had not yet closed, and therefore the 2% of the outstanding balance was increased as of June 30, 2023, in the amount of approximately $272,000. On July 20, 2023, the Company sent Yotta notice of the Company’s termination of the Merger Agreement. (See Note 13) On November 20, 2023, the maturity date was extended to June 30, 2024.

We analyzed the restructured August Note under ASC 470-50 as to whether the change in terms qualified as a modification or an extinguishment of the note. The changes in terms were considered an extinguishment as the present value of the cash flows under the terms of the new debt instrument was evaluated to be a substantial change, as over 10% difference from the present value of the remaining cash flows under the terms of the original instrument. As such, with the removal of the original note and its debt discount and accrued interest as compared to the restructured note with a fair value of approximately $1.9 million, there was a loss in extinguishment of approximately $157,000. As a result of the extinguishment and at the Company’s election of the fair value option under ASC 825, the August Note will be accounted for at fair value until it is settled. In accordance with ASC 815- 15-25-1(b), a hybrid instrument that is measured at fair value under ASC 825 fair value option each period with changes in fair value reported in earnings as they occur should not be evaluated for embedded derivatives. Therefore, we did not evaluate the provisions in the August Note as to whether it fell under the guidance of embedded derivatives and was required to be bifurcated. The August Note was revalued as of March 31, 2024 at approximately $2,640,000, with a change in fair value of approximately $240,000 in the current year recognized in the accompanying Consolidated Statement of Operations. We revalued the August Note as of March 31, 2023 at approximately $2.4 million, with a change in fair value of approximately $467,000 recognized in the Company’s Consolidated Statement of Operations.

Promissory Note — related parties

On August 10, 2022, the Company entered into a loan agreement for an aggregate of $300,000 with employee and family member related parties, which is to be considered priority debt of the Company. As of the date of this report, five of the related parties have entered into promissory notes under the loan agreement for $50,000 each, for a total of cash received of $250,000. The notes bear interest at 10% per annum and are due one year from the date of the note. For the year ended March 31, 2024 and 2023, the interest expense was approximately $50,000 and $22,000, respectively.

Restructured Senior Note Payable

We issued the Convertible Note in December 2021. The Convertible Note had an annual interest rate of 12% and matured on December 15, 2023. The Convertible Note carried an OID totaling $1.3 million and a transaction expense amount of $20,000, both of which were included in the principal balance of the Convertible Note. The Convertible Note had $2.0 million in debt issuance costs, including fees paid in cash of $1.1 million and warrants to purchase 3,000,000 shares of the Company’s common stock that we issued to the placement agents with a fair value of $940,000. The warrant fair value was estimated using the Black Scholes Model, with the following inputs: the price of the common stock of $0.32; a risk-free interest rate of 1.19%; the expected volatility of the common stock of 209.9%; the estimated remaining term; and a dividend rate of 0%. We classified the warrants as a liability, as it was not known if there would be sufficient authorized shares to be issued upon settlement, based on the conversion terms of the convertible debt.

The Company was required to obtain an effective registration statement or a supplement to any existing registration statement or prospectus with the SEC registering at least $15.0 million in shares of NaturalShrimp common stock for Streeterville’s benefit such that any redemption using shares of NaturalShrimp common stock could be done using registered shares of NaturalShrimp common stock. Additionally, the Company was required, as soon as reasonably possible following the issuance of the Convertible Note, to cause the Company’s common stock to be listed for trading on either NYSE or Nasdaq. In the event the Company did not effectuate such listing by March 1, 2022, the then-current outstanding balance would be increased by 10%. On February 7, 2022, the Company and Streeterville entered into an amendment to the SPA, which extended the date by which the Uplist must be completed to April 15, 2022. In consideration of the grant of the extension an extension fee of $249,079 was added to the principal balance, which we recognized as a financing cost. Subsequently, the date by which the listing had to be completed was further extended to June 15, 2022, and again to November 15, 2022, with no additional fee included. The Company must make a one-time payment to Streeterville equal to 15% of the gross proceeds that the Company receives from the offering expected to be effected in connection with the listing (whether from the sale of shares of its common stock and / or preferred stock) within 10 days of receiving such amount. In the event that the Company does not make this payment, the then-current outstanding balance will be increased by 10%. The Convertible Note also contains certain negative covenants and events of default. Upon the occurrence of an event of default, at its option and sole discretion, Streeterville may consider the Convertible Note immediately due and payable. Upon such an event of default, the annual interest rate on the Convertible Note will increase to 18% and the outstanding balance will increase from 5% to 15%, depending upon the specific event of default.

In accordance with the terms of the Merger Agreement, the Company and Streeterville entered into Restructuring Agreement dated as of November 4, 2022, pursuant to which the Convertible Note was amended and restated, and the Company issued to Streeterville and Amended and Restated Secured Promissory Note that amended and replaced the Convertible Note (the “Restructured Senior Note”), that: (i) eliminated the conversion feature of the Convertible Note; (ii) provides that within three trading days of the closing of the Business Combination, NaturalShrimp as the surviving entity in its merger with Merger Sub as a wholly-owned subsidiary of Yotta will pay Streeterville an amount equal to the lesser of (A) one-third of the amount (calculated prior to any deductions for any broker, underwriter, legal, accounting or other fees) retained in Yotta’s Trust Account (the “Trust Account”) at the effective time of the Business Combination or (B) $10,000,000, in order to repay a portion of the outstanding balance of the Restructured Senior Note; (iii) provide that the remaining balance of the Restructured Senior Note must be repaid in equal monthly installments over a 12-month period beginning on the second month immediately following either the closing date of the Business Combination or the termination of the Merger Agreement, but in no case later than June 30, 2024; and (iv) provides that if the closing date of the Business Combination is after December 31, 2022, the outstanding balance of all indebtedness owed by NaturalShrimp to Streeterville will be increased automatically by 2% and will automatically increase by 2% every 30 days thereafter until the closing of the Business Combination or the termination of the Merger Agreement.

As of March 31, 2023, the Business Combination had not yet closed, and therefore the outstanding balance of the Restructured Senior Note increased 2% per month, in the amount of approximately $1,336,000 as of March 31, 2023. As of June 30, 2023, the Merger has not yet closed, and therefore the 2% of the outstanding balance was increased as of June 30, 2023, in the amount of approximately $2,675,000. On July 20, 2023, the Company sent Yotta notice of the Company’s termination of the Merger Agreement (See Note 13). Based on the termination in July of 2023, the equal monthly payments were to begin on September 20, 2023. On November 20, 2023, the Investor issued a waiver to the Company on the equal monthly payments, which are not currently required to be paid.

We analyzed the Restructured Senior Note under ASC 470-50 as to if the changes in terms qualified as a modification or an extinguishment of the note. The changes in terms were considered an extinguishment as the conversion feature has been eliminated and therefore the Restructured Senior Note is determined to be fundamentally different from the original Convertible Note. As such, with the removal of the Convertible Note and its debt discount and accrued interest as compared to the Restructured Senior Note with a fair value of approximately $18.9 million, there was a gain in extinguishment of approximately $2.5 million. As a result of the extinguishment and at the Company’s election of the fair value option under ASC 825, we will account for the Restructured Senior Note at fair value every period end until it is settled. In accordance with ASC 815- 15-25-1(b) a hybrid instrument that is measured at fair value under ASC 825 fair value option each period with changes in fair value reported in earnings as they occur should not be evaluated for embedded derivatives. Therefore, we did not evaluate the provisions in the Restructured Senior Note as to whether they fell under the guidance of embedded derivatives and were required to be bifurcated. The Restructured Senior Note was revalued as of March 31, 2024 at approximately $27,120,000, with a change in fair value of approximately $5,830,000 recognized in the Company’s accompanying Consolidated Statement of Operations. We revalued the Restructured Senior Note as of March 31, 2023 at approximately $21.3 million, with a change in fair value of approximately $2.4 million recognized in the Company’s Consolidated Statement of Operations.

Series E Preferred Stock and Warrant

On November 22, 2021, we sold to an accredited investor 1,500 shares of Series E Preferred at a price of $1,000 per share and a warrant to purchase up to 1,500,000 shares of NaturalShrimp common stock at an exercise price of $0.75 per share, subject to adjustment as set forth therein, for an aggregate purchase price of $1.5 million. We received approximately $1.4 million in net proceeds after deducting the commission of Joseph Gunnar & Co., LLC (the placement agent) and other estimated offering expenses payable by the Company. We issued warrants to purchase 334,116 shares of our common stock to the placement agent as placement agent fees.

Share Exchange Agreement and Redemption

On April 14, 2021 the Company, entered into a share exchange agreement (the “Exchange Agreement”) with a holder of the Company’s Series D Preferred Stock, par value $0.0001 per share (the “Series D Preferred Stock”), whereby, at the closing of the Offering, the Holder agreed to exchange an aggregate of 3,600 shares of the Series D Preferred Stock into 3,739.63 shares of the Company’s Series E Convertible Preferred Stock, par value $0.0001 (the “Series E Preferred Stock”). The exchange was completed on April 15, 2021. In accordance with ASC 260-10-S99-2, exchanges of preferred stock that are considered to be extinguishments are to be accounted for as a redemption. Therefore, the difference between the fair value of the Series E Preferred Stock transferred to the holder of the Series D Preferred Stock and the carrying amount of the Series D Preferred Stock immediately prior to the exchange, which was $3,258,189, was accounted for in a manner similar to a dividend.

On June 16, 2022, one of the holders of the Series E Convertible Preferred Stock chose to exercise their right, pursuant to the Certificate of Designation relating to the Series E Convertible Preferred Stock, to receive the rights extended to the convertible noteholder of 90% multiplied by the average of the two lowest volume weighted average price per share of the Company’s common stock during the 10 trading days immediately preceding the date of conversion. As the exercise of the conversion price adjustment was similar to a down round, and the Company has not yet adopted ASU 2020-06, the accounting treatment of ASU 2017-11 was applied, whereby the adjustment was treated as a contingent beneficial conversion feature recognized as of the triggering date. As of June 16, 2022, this holder held 940 shares of the Series E Preferred Stock. The Company analyzed the conversion feature under ASC 470-20, “Debt with conversion and other options,” and based on the market price of the common stock of the Company as compared to the conversion price, determined there was a $99,000 beneficial conversion feature to recognize, which was fully amortized as there is no remaining redemption date to their Series E Preferred Stock. The additional rights of the convertible note that were applied include the 10% increase in the outstanding balance if an uplist to a national exchange was not consummated by the Company by March 1, 2022, for an increase of 130 shares of Series E Preferred Stock with a stated value of $156,000, as well as an exit fee of 15% to be recognized upon conversions of the shares of Series E Preferred Stock into shares of common stock. As of March 31, 2023, 170 shares of Series E Preferred Stock were outstanding to this holder.

During the year ended March 31, 2023, 1,300 shares of Series E Preferred Stock were converted into 14,458,127 shares of common stock. During the year ended March 31, 2022, 2,400 shares of Series E Preferred Stock were converted into 8,228,572 shares of common stock. As of March 31, 2023 there were 1,670 shares of Series E Preferred Stock remaining outstanding.

On November 5, 2022, the Company entered a restructuring agreement with the holders of the Series E Preferred Stock whereby the Series E Preferred Stock and the warrants outstanding, including all holders of the warrants (in Note 13 in the consolidated financial statement footnotes) as of the closing date of the Business Combination will have their terms adjusted. The outstanding warrants will be (i) cancelled in exchange for a cash payment equal to the fair value of the warrants based on the Black Scholes model, with the exercise price to be adjusted to equal 80% of the average volume weighted average price of the Company’s common stock during the five trading day period immediately prior to the closing date of the Business Combination (the “Adjusted Exercise Price”) or (ii) as of the effective time of the Business Combination, canceled and treated as if exercised for that number of shares of the Company’s common stock calculated using the Black Scholes model fair value, the number of shares of common stock underlying the warrants on the closing date of the Business Combination and the Adjusted Exercise Price, with the shares of the Company’s common stock that would have been due to the holder as a result of such exercise of the warrant treated as if issued to the holder and then converted into the right to receive (A) the Closing Per Share Merger Consideration (as defined in the Merger Agreement) plus (B) the Additional Per Share Merger Consideration (as defined in the Merger Agreement), if any, at the time and subject to the contingencies set forth in the Merger Agreement. The shares of Series E Preferred Stock that are outstanding immediately prior to the effective time of the Business Combination will be canceled and treated as if converted into that number of shares of the Company’s common stock equal to (i) the stated value of $1,200 per share plus any unpaid dividends, multiplied by 1.25, divided by (ii) 80% of the average volume weighted average price of the Company’s common stock during the five trading day period immediately prior to the closing date of the Business Combination. The shares of the Company’s common stock that would have been due to the holder as a result of the conversion of such shares of Series E Convertible Preferred Stock will be treated as issued to holder and converted, as of the effective time of the Business Combination, into the right to receive (y) the Closing Per Share Merger Consideration plus (z) the Additional Per Share Merger Consideration, if any, at the time and subject to the contingencies set forth in the Merger Agreement.

Waiver

On April 14, 2021, NaturalShrimp entered into a securities purchase agreement with GHS to sell to GHS: (i) 9,090,909 shares of NaturalShrimp common stock at a price per share of $0.55; (ii) warrants to purchase up to 10,000,000 shares of NaturalShrimp common stock, at an exercise price of $0.75 per share; and (iii) 1,000,000 shares of NaturalShrimp common stock with a value (although no purchase price will be paid) of $0.65 per share, pursuant to which, until April 14, 2022, GHS had a right to participate in any subsequent financing that we conducted.

On November 22, 2021, NaturalShrimp and GHS entered into a waiver whereby GHS agreed to waive its right to participate in the above-described offering and to participate in a possible debt financing. GHS also agreed to waive its right, pursuant to the Certificate of Designation for the Series E Preferred Stock, to exchange its shares of Series E Preferred Stock for securities issued in the debt financing, if the Company enters into such financing.

In consideration for GHS entering into the waiver, we lowered the exercise price of the warrants we had previously issued to GHS to $0.35 per share and issued to GHS warrants to purchase 3,739,000 shares of NaturalShrimp Common Stock at an exercise price of $0.75 per share.

Going Concern and Management Liquidity Plans

The consolidated financial statements have been prepared assuming that it will continue as a going concern. For the year ended March 31, 2024, the Company had a net loss available for common stockholders of approximately $15,808,000. As of March 31, 2024, the Company had an accumulated deficit of approximately $183,341,000 and a working capital deficit of approximately $37,698,000. These factors raise substantial doubt about the Company’s ability to continue as a going concern within one year from the issuance date of this report. The Company’s ability to continue as a going concern is dependent on its ability to raise the required additional capital or debt financing to meet short and long-term operating requirements. During the year ended March 31, 2024, the Company received net cash proceeds of approximately $3,169,000 from the sale of shares of its common stock, approximately $344,000 from the sale of preferred shares and $140,000 proceeds from the issuance of promissory notes, related parties.

The Company’s consolidated financial statements included in this report do not include any adjustments that may be necessary should the Company be unable to continue as a going concern. The Company’s continuation as a going concern is dependent on its ability to obtain additional financing as may be required and ultimately to attain profitability. If the Company raises additional funds through the issuance of equity, the percentage ownership of current stockholders could be reduced, and such securities might have rights, preferences, or privileges senior to the rights, preferences, and privileges of the NaturalShrimp Common Stock. Additional financing may not be available upon acceptable terms, or at all. If adequate funds are not available or are not available on acceptable terms, the Company may not be able to take advantage of prospective business endeavors or opportunities, which could significantly and materially restrict its future plans for developing its business and achieving commercial revenues.

Future Financing

We will require additional funds to implement our growth strategy for our business. In addition, while we have received capital from various private placements that have enabled us to fund our operations, these funds have been largely used to develop our processes, although additional funds are needed for other corporate operational and working capital purposes. Not including funds needed for capital expenditures or to pay down existing debt and trade payables, however, we anticipate that we will need to raise an additional $2.5 million to cover all of our capital and operational expenses over the next 12 months, not including any capital expenditures needed as part of any commercial scale-up of our equipment. These funds may be raised through equity financing, debt financing, or other sources, which may result in further dilution in the equity ownership of the NaturalShrimp Common Stock. There can be no assurance that additional financing will be available to us when needed or, if available, that such financing can be obtained on commercially reasonable terms. If we are not able to obtain the additional necessary financing on a timely basis, or if we are unable to generate significant revenues from operations, we will not be able to meet our other obligations as they become due, and we will be forced to scale down or perhaps even cease our operations.

Effects of Inflation

We do not believe that inflation has had a material impact on our business, revenues or operating results during the periods presented.

Critical Accounting Policies and Estimates

Our significant accounting policies are more fully described in the notes to our financial statements included in this Annual Report on Form 10-K for the fiscal years ended March 31, 2024 and 2023. We believe that the accounting policies below are critical for one to fully understand and evaluate our financial condition and results of operations.

Fair Value Measurement

The fair value measurement guidance clarifies that fair value is an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in the valuation of an asset or liability. It establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy under the fair value measurement guidance are described below:

Level 1 - Unadjusted quoted prices in active markets that are accessible at the measurement date for identical assets or liabilities;

Level 2 - Quoted prices in markets that are not active, or inputs that are observable, either directly or indirectly, for substantially the full term of the asset or liability; or

Level 3 - Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (supported by little or no market activity).

The derivative and warrant liabilities are Level 3 fair value measurements.

~~Basic~~Liquidation ~~and~~Basis ~~Diluted~~of ~~Earnings/Loss per Common Share~~Accounting

~~Basic and diluted earnings or~~In ~~loss per share (“EPS”) amounts in the consolidated financial statements are computed in~~ accordance with ASC ~~260~~205-30, –Liquidation ~~10 “Earnings~~Basis ~~per~~of ~~Share”~~Accounting, ~~which establishes~~ the ~~requirements~~Company ~~for~~will ~~presenting~~prepare ~~EPS.~~its ~~Basic~~financial ~~EPS~~statements isusing ~~based on~~ the ~~weighted average number~~liquidation ofbasis ~~shares~~ of ~~common~~accounting ~~stock~~when ~~outstanding.~~liquidation ~~Diluted EPS~~ is ~~based on the weighted average number of shares of common stock outstanding and dilutive common stock equivalents~~imminent. ~~Basic~~Liquidation ~~EPS~~ is ~~computed~~considered byimminent ~~dividing~~when ~~net~~either ~~income~~of ~~or loss available to common stockholders (numerator) by~~ the ~~weighted average~~following ~~number of shares of common stock outstanding (denominator~~occurs-i) ~~during the period. For the year ended March 31, 2024, the Company had 5,000,000 Series~~ A ~~Convertible~~plan ~~Preferred Stock which would be converted at the holder’s option into approximately 1,116,482,000~~for ~~underlying~~liquidation ~~common~~has ~~shares,~~been ~~1,656~~approved ofby ~~Series E Redeemable Convertible Preferred shares whose approximately 5,678,000 underlying shares are convertible at~~ the ~~investors’~~person ~~option~~or atpersons awith ~~fixed conversion price of $0.35, 750,000 shares of Series F Preferred Stock which would be converted at~~ the ~~holders’~~authority ~~option~~to ~~into~~make ~~approximately~~such ~~267,836,000~~a ~~underlying~~plan ~~common shares~~effective, ~~445~~and ~~of Series G Redeemable Convertible Preferred shares whose approximately 66,750,000 underlying shares are convertible at~~ the ~~investors’~~likelihood ~~option~~is ~~at a conversion price~~remote ~~based~~that oneither ~~the~~execution ~~discounted market price~~ of ~~$0.008 and 18,573,116 warrants outstanding which were not included in~~ the ~~calculation~~plan ofwill ~~diluted EPS~~be asblocked ~~their~~by ~~effect~~other ~~would~~parties beor ~~anti-dilutive. For~~ the ~~year~~entity ~~ended~~will ~~March~~return ~~31,~~from ~~2023,~~liquidation ~~the~~and ~~Company~~ii) ~~had 5,000,000 Series~~ A ~~Convertible~~plan ~~Preferred Stock~~for ~~which would be converted at the holder’s option into approximately 803,124,000 underlying common shares, 1,500 of Series E~~liquidation ~~Redeemable~~is ~~Convertible~~imposed ~~Preferred~~by ~~shares~~other ~~whose approximately 5~~forces,~~143,000~~ ~~underlying shares are convertible at the investors’ option at a fixed conversion price of $0.35~~ and ~~170 shares of Series E Redeemable Convertible Preferred shares whose approximately 3,192,000 underlying shares are convertible at~~ the ~~investors’~~likelihood ~~option~~is atremote ~~conversion~~that ~~price of 90% of~~ the ~~average~~entity ofwill ~~the~~return ~~two~~from lowest market prices over the last 10 days, 750,000 shares of Series F Preferred Stock which would be converted at the holders’ option into approximately 192,750,000 underlying common shares, and 18,573,116 warrants outstanding which were not included in the calculation of diluted EPS as their effect would be anti-dilutiveliquidation.

~~Impairment~~When using the liquidation basis of ~~Long-lived~~accounting, ~~Assets~~the Company will i) recognize other items that is previously had not recognized but it expects to sell in liquidation or use to settle liabilities ii) accrue costs and ~~Long-lived~~income ~~Assets~~that it expects to incur or earn through the end of its liquidation if and when it has a reasonable basis for estimation iii) measure its assets to reflect the estimated amount of cash or other consideration that it expects to collect in settling or disposing of those assets in carrying out its plan for liquidation and iv) measure its liabilities in accordance with the measurement provision of other topics that it would otherwise apply to those liabilities.

The Company will periodically evaluate the carrying value of long-lived assets to be held and used when events and circumstances warrant such a review and at least annually. The carrying value of a long-lived asset is considered impaired when the anticipated undiscounted cash flow from such asset is separately identifiable and is less than its carrying value. In that event, a loss is recognized based on the amount by which the carrying value exceeds the fair value of the long-lived asset. Fair value is determined primarily using the anticipated cash flows discounted at a rate commensurate with the risk involved. Losses on long-lived assets to be disposed of are determined in a similar manner, except that the fair values are reduced for the cost to dispose.

Revenue Recognition

The Company recognizes revenue in accordance with ASC 606, Revenue from Contracts with Customers, and, as such, the Company records revenue when its customers obtain control of the promised goods or services in an amount that reflects the consideration that the Company expects to receive in exchange for those goods or services. The Company will sell primarily to food service distributors, as well as to wholesalers, retail establishments and seafood distributors.

To determine revenue recognition for the arrangements that the Company determines are within the scope of Topic 606, the Company performs the following five steps: (1) identify the contract(s) with a customer by receipt of purchase orders and confirmations sent by the Company, which includes a required line of credit approval process, (2) identify the performance obligations in the contract, which includes shipment of goods to the customer FOB shipping point or destination, (3) determine the transaction price which initiates with the purchase order received from the customer and confirmation sent by the Company and will include discounts and allowances by customer if any, (4) allocate the transaction price to the performance obligations in the contract which is the shipment of the goods to the customer and transaction price determined in step 3 above and (5) recognize revenue when (or as) the Company satisfies a performance obligation, which is when the Company transfers control of the goods to the customers by shipment or delivery of the products.

Recently Issued Accounting Standards

In November 2023, the FASB issued Accounting Standards Update (“ASU”) No. 2023-07, “Segment Reporting (Topic 280) Improvements to Reportable Segment Disclosures” which expands annual and interim disclosure requirements for reportable segments. The amendments require enhanced disclosure for certain segment items and required disclosure on how management uses reported measures to assess segment performance. The amendments do not change how segments are determined, aggregated, or how thresholds are applied to determine reportable segments. The updated standard is effective for annual periods beginning in fiscal 2025 and interim periods beginning in the first quarter of fiscal 2026. Early adoption is permitted. The Company is currently evaluating the effect of adopting this ASU.

In December 2023, the FASB issued ASU No. 2023-09 “Income Taxes (Topic 740): Improvements to Income Tax Disclosures” which requires two primary enhancements of 1) disaggregated information on a reporting entity’s effective tax rate reconciliation, and 2) information on cash income taxes paid. Additionally, specific disclosures related to unrecognized tax benefits and indefinite reinvestment assertions were removed. For public business entities, the new requirements will be effective for annual periods beginning after December 15, 2024. The guidance will be applied on a prospective basis with the option to apply the standard retrospectively. Early adoption is permitted. The Company is currently evaluating the effect of adopting this ASU.

As of March 31, 2024, there were several new accounting pronouncements issued by the FASB. Each of these pronouncements, as applicable, has been or will be adopted by the Company. Management does not believe the adoption of any of these accounting pronouncements has had or will have a material impact on the Company’s consolidated financial statements.

ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Not Applicable.

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ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

The information called for by Item 8 is included following the “Index to Financial Statements” on page F-1 contained in this annual report on Form 10-K.

ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE

None.

ITEM 9A. CONTROLS AND PROCEDURES

Evaluation of Disclosure Controls and Procedures

We maintain disclosure controls and procedures (as that term is defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act that are designed to ensure that information required to be disclosed in our reports under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms, and that such information is accumulated and communicated to our management, including our principal executive officer and principal financial officer, as appropriate, to allow timely decisions regarding required disclosures. In designing disclosure controls and procedures, our management necessarily was required to apply its judgment in evaluating the cost-benefit relationship of possible disclosure controls and procedures. The design of any disclosure controls and procedures also is based in part upon certain assumptions about the likelihood of future events, and there can be no assurance that any design will succeed in achieving its stated goals under all potential future conditions. Any controls and procedures, no matter how well designed and operated, can provide only reasonable, not absolute, assurance of achieving the desired control objectives.

Our management, with the participation of our principal executive officer and principal financial officer, has evaluated the effectiveness of the design and operation of our disclosure controls and procedures as of the end of the period covered by this report. Based upon that evaluation and subject to the foregoing, our principal executive officer and principal financial officer concluded that our disclosure controls and procedures were not effective due to the material weaknesses in internal control over financial reporting described below.

Management’s Annual Report on Internal Control Over Financial Reporting

Our management is responsible for establishing and maintaining adequate internal control over financial reporting (as defined in Rule 13a-15(f) and Rule 15d-15(f) under the Exchange Act). Our internal control over financial reporting is a process designed by, or under the supervision of, our principal executive and principal financial officers and effected by our Board of Directors, management and other personnel, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of our consolidated financial statements for external reporting purposes in accordance with U.S. generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that: (i) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the Company; (ii) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the Company are being made only in accordance with authorizations of management and directors of the Company; and (iii) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the Company’s assets that could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Therefore, even those systems determined to be effective can provide only reasonable assurance with respect to financial statement preparation and presentation. In addition, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions or that the degree of compliance with the policies or procedures may deteriorate.

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Material Weakness in Internal Control over Financial Reporting

Management assessed the effectiveness of the Company’s internal control over financial reporting as of March 31, ~~2024~~2025 based on the criteria for effective internal control over financial reporting established in Internal Control - Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission and SEC guidance on conducting such assessments. Based on this assessment, management has determined that the Company’s internal control over financial reporting as of March 31, ~~2024~~2025 was not effective. Management realized that there were deficiencies in the design or operation of our internal control over financial reporting that adversely affected it and that management considers to be material weaknesses. Such material weaknesses in our internal control over financial reporting have not been remedied.

The ineffectiveness of our internal control over financial reporting was due to the following material weaknesses, which are indicative of many small companies with small number of staff:

●	Inadequate segregation of duties consistent with control objectives;
●	Lack of independent board of directors (as of the balance sheet date) and absence of an audit committee to exercise oversight responsibility related to financial reporting and internal control;
●	Lack of risk assessment procedures on internal controls to detect financial reporting risks in a timely manner; and
●	Lack of documentation on policies and procedures that are critical to the accomplishment of financial reporting objectives.

Management continues to implement measures designed to ensure that control deficiencies contributing to the material weakness are remediated, such that these controls are designed, implemented, and operating effectively.

The remediation actions planned include:

●	Identify gaps in our skills base and the expertise of our staff required to meet the financial reporting requirements of a public company;
●	Establish an independent board of directors and an audit committee (which the company intends to implement at the time of the completion of the Business Combination) to provide oversight for remediation efforts and ongoing guidance regarding accounting, financial reporting, overall risks and the internal control environment;
●	Retain additional accounting personnel with public company financial reporting, technical accounting, SEC compliance, and strategic financial advisory experience to achieve adequate segregation of duties; and
●	Continue to develop formal policies and procedures on accounting and internal control over financial reporting and monitor the effectiveness of operations on existing controls and procedures.

Our management will continue to monitor and evaluate the relevance of our risk-based approach and the effectiveness of our internal controls and procedures over financial reporting on an ongoing basis and is committed to taking further action and implementing additional enhancements or improvements, as necessary and as funds allow.

This annual report does not include an attestation report of our registered public accounting firm regarding internal control over financial reporting. Management’s report was not subject to attestation by our registered public accounting firm pursuant to rules of the SEC that permit us to provide only management’s report in this annual report, which may increase the risk that weaknesses or deficiencies in our internal control over financial reporting go undetected.

Changes in Internal Control over Financial Reporting

There have been no changes in our internal control over financial reporting during the fiscal quarter ended March 31, ~~2024~~2025 that have materially affected, or that are reasonably likely to materially affect, our internal control over financial reporting.

ITEM 9B. OTHER INFORMATION

None.

ITEM 9C. DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS.

Not applicable.

PART III

ITEM 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE

Set forth below are the present directors and executive officers of the Company. Except as set forth below, there are no other persons who have been nominated or chosen to become directors, nor are there any other persons who have been chosen to become executive officers. Other than as set forth below, there are no arrangements or understandings between any of the directors, officers and other persons pursuant to which such person was selected as a director or an officer.

Name	Age	Position	Since
Gerald Easterling	7677	Chief Executive Officer, President and Director	2015
William Delgado	6566	Treasurer, Chief Financial Officer and Director	2014
Tom Untermeyer	6566	Chief Operating Officer, Chief Technology Officer and Director	2019
William Steven Walker	7374	General Counsel and Secretary	2022

The Board of Directors is comprised of only one class. All of the directors serve for a term of one year and until their successors are elected at the Company’s annual shareholders meeting and are qualified, subject to removal by the Company’s shareholders. Each executive officer serves, at the pleasure of the Board of Directors, for a term of one year and until his successor is elected at a meeting of the Board of Directors and is qualified.

Our Board of Directors believes that all members of the Board and all executive officers encompass a range of talent, skill, and experience sufficient to provide sound and prudent guidance with respect to our operations and interests. The information below with respect to our directors and executive officers includes each individual’s experience, qualifications, attributes, and skills that led our Board of Directors to the conclusion that he or she should serve as a director and/or executive officer.

Biographies of Executive Officers and Directors

Set forth below are brief accounts of the business experience during at least the past five years of each director and executive officer of the Company.

Gerald Easterling – Chief Executive Officer, President and Director

Mr. Easterling has served as President and a director of the Company since January 2015 and as its Chief Executive Officer since August 2019. He also co-founded and has served as President and a director of NSH since its inception in 2001. Mr. Easterling has over 40 years’ experience in the food business and related industries. From 1995 to 2001, Mr. Easterling was Chief Executive Officer and Chairman of the Board of Excel Vending Companies, headquartered in Austin, Texas, which utilized the Café Quick patented customer automated fast food vending equipment. He was co-founder and served as President and a Director of Cafe Quick Enterprises, Inc., a Dallas-headquartered company that designed, developed, and patented both packaging and the Café Quick automated fast food vending equipment. Café Quick licensed the patented technology manufacturing rights both domestically and internationally, from 1988 to 2008. Mr. Easterling has also served as a member of the board of directors of NSC and NS Global since 2001.

Our Board of Directors believes that Mr. Easterling is qualified to serve as a director because of his business experience, including his experience as a director of companies in industries similar to those as the Company, as described above.

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William J. Delgado – Treasurer, Chief Financial Officer and Director

Mr. Delgado has served as Chief Financial Officer and Treasurer of the Company since July 2015 and as a Director since May 2014. He also served as President of the Company from May 2014 through January 2015. Mr. Delgado has served as a Director of Global Digital Solutions, Inc. (“GDSI”), a publicly traded company that provides cyber arms technology and complementary security and technology solutions, since 2005 and as its Chief Executive Officer and Chairman of the Board since May 2016. He also previously served as GDSI’s President and Chief Executive Officer and Chief Financial Officer from August 2004 to August 2013 and as its Executive Vice President in charge of business development from August 2013 to May 2016. He has also served as the President, Chief Executive Officer, and Chief Financial Officer of Eco-Growth Strategies, Inc., a nutraceutical company developing a range of CBD-based products, since May 2007.

Mr. Delgado began his career with Pacific Telephone in the Outside Plant Construction. He later transferred to their network engineering group and concluded his career at Pacific Bell as the Chief Budget Analyst for the Northern California region. Prior to that, in 1991 Mr. Delgado founded and served as President of All Star Telecom, specializing in Open Settlement Protocol construction and engineering and systems cabling. All Star Telecom was sold to International FiberCom, which provided a wide variety of services and equipment to the telecommunications, cable television and other related industries, in 1999 and Mr. Delgado served as Executive Vice President of International FiberCom until 2002. Thereafter, Mr. Delgado served as President and Chief Executive Officer of Pacific Comtel in San Diego, California, a provider of structured cabling design, installation, and maintenance for companies, governments, and educational institutions, that was acquired by GDSI in 2004. Mr. Delgado holds a BS with honors in Applied Economics from the University of San Francisco and Graduate studies in Telecommunications Management at Southern Methodist University.

Our Board of Directors believes that Mr. Delgado is qualified to serve on our board because of his business experience, including his experience in management and as a director of public companies including GDSI and International FiberCom, as described above.

Thomas Untermeyer – Chief Operating Officer, Chief Technology Officer and Director

Mr. Untermeyer co-founded NSH and invented the initial technology behind its computer-controlled shrimp-raising system acquired by the Company in 2015 and that forms the core of its business. He has served as a director of the Company since September 2020, as its Chief Operating Officer since September 2019, its Chief Technology Officer since January 2015, and as its Secretary from September 2020 through February 2021. Prior to the Company’s acquisition of NSH in 2015 he had been an engineering consultant to NSH since 2001. From 1981 to 2017 Mr. Untermeyer served as a Senior Program Manager with Southwest Research Institute, an independent and nonprofit applied research and development organization in San Antonio, Texas. His business experience includes systems engineering, program development, and technical management. Mr. Untermeyer has spent his entire career in the process of defining, designing, and developing electronic products and systems for both commercial and government clients. This has included small design programs to large multi-million dollar programs involving large multidisciplinary teams composed of software, electrical, and mechanical engineers. Mr. Untermeyer holds a Bachelor of Science in Electrical Engineering from St. Mary’s University.

Our Board of Directors believes that Mr. Untermeyer is qualified to serve on the board because of his technical expertise and historical knowledge of our business.

William Steven Walker – General Counsel and Secretary

Mr. Walker was licensed in the State of Texas in November 1976 and has been engaged in the private practice of law since March 1983. Since 1983, Mr. Walker has been a solo practitioner specializing in corporate law, oil and gas transactions and litigation. Mr. Walker has served as the Company’s General Counsel since July 2022 and Secretary since February 2021. He served as the original General Counsel of NSH from 2001 to 2015 and on its board of directors from 2001 to 2015. Mr. Walker brings a wide range of experience to the Company and also has historical knowledge of the Company’s history. Mr. Walker is a graduate of the University of Texas and received his law degree from Saint Mary University School of Law.

Family Relationships

There are no family relationships between or among any of our directors and executive officers.

Involvement in Certain Legal Proceedings

No director, executive officer, significant employee or control person of the Company has been involved in any legal proceeding listed in Item 401(f) of Regulation S-K in the past 10 years.

Meetings of the Board; Committees

Our Board of Directors held one formal meeting in the fiscal year ended March 31, 2024. Otherwise, all proceedings of the Board of Directors were conducted by resolutions consented to in writing by the directors and filed with the minutes of the proceedings of the directors. Such resolutions consented to in writing by the directors entitled to vote on that resolution at a meeting of the directors are, according to the Nevada Revised Statutes and the bylaws of our Company, as valid and effective as if they had been passed at a meeting of the directors duly called and held. We do not presently have a policy regarding director attendance at meetings.

We do not currently have a standing audit, nominating or compensation committee of the Board of Directors, or any committee performing similar functions. Our Board of Directors performs the functions of audit, nominating and compensation committees.

Audit Committee

Our Board of Directors has not established a separate audit committee within the meaning of Section 3(a)(58)(A) of the Exchange Act. Instead, the entire Board of Directors acts as the audit committee within the meaning of Section 3(a)(58)(B) of the Exchange Act and will continue to do so until such time as a separate audit committee has been established.

Audit Committee Financial Expert

We currently have not designated anyone as an “audit committee financial expert,” as defined in Item 407(d)(5) of Regulation S-K, as we have not yet created an audit committee of the Board of Directors.

Nominations to the Board of Directors

Our directors play a critical role in guiding our strategic direction and oversee the management of the Company. Board candidates are considered based upon various criteria, such as their broad-based business and professional skills and experiences, a global business and social perspective, concern for the long-term interests of the stockholders, diversity, and personal integrity and judgment.

In addition, directors must have time available to devote to Board activities and to enhance their knowledge in the growing business. Accordingly, we seek to attract and retain highly qualified directors who have sufficient time to attend to their substantial duties and responsibilities to the Company.

In carrying out its responsibilities, the Board will consider candidates suggested by stockholders. If a stockholder wishes to formally place a candidate’s name in nomination, however, he or she must do so in accordance with the provisions of the Company’s Bylaws. Suggestions for candidates to be evaluated by the proposed directors must be sent to the Board of Directors, c/o NaturalShrimp Incorporated, 13601 Preston Road, Suite E1092, Dallas, Texas 75240.

Director Nominations

As of March 31, ~~2024~~2025, we did not effect any material changes to the procedures by which our shareholders may recommend nominees to our Board of Directors.

Board Leadership Structure and Role on Risk Oversight

Gerald Easterling currently serves as our Principal Executive Officer and President and CEO. We have determined that our leadership structure was appropriate for the Company due to our small size and limited operations and resources. The Board of Directors will continue to evaluate the Company’s leadership structure and modify as appropriate based on the size, resources and operations of the Company. It is anticipated that the Board of Directors will establish procedures to determine an appropriate role for the Board of Directors in our risk oversight function.

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Compensation Committee Interlocks and Insider Participation

No interlocking relationship exists between our board of directors and the board of directors or compensation committee of any other company, nor has any interlocking relationship existed in the past.

Code of Ethics

We have adopted a written code of ethics that applies to our chief executive officer and chief financial officer. A copy of such code of ethics is available upon written request to the Company.

ITEM 11. EXECUTIVE COMPENSATION

General Philosophy

Our Board of Directors is responsible for establishing and administering the Company’s executive and director compensation.

The following summary compensation table indicates the cash and non-cash compensation earned from the Company during the fiscal years ended March 31, ~~2024~~2025 and ~~2023~~March 31, 2024 by our current principal executive officer and each of the other two highest paid executives whose total compensation exceeded $100,000 during those years.

Summary Compensation Table

Name and Principal Position	Year	Salary		Bonus		Stock Awards		All Other Compen- sation		Total
Gerald Easterling,	~~2024~~2025	$	180,000	$	-	$	-	$	14,385	$	194,385
Chairman of the Board, President and CEO (1)	~~2023~~2024	$	180,000		-		-	$	14,385	$	194,385
William Delgado,	~~2024~~2025	$	160,000	$	-	$	-	$	9,132	$	169,132
CFO (2)	~~2023~~2024	$	160,000	$	-	$	-	$	-9,132	$	~~160~~169,~~000~~132
Tom Untermeyer,	~~2024~~2025	$	160,000	$	-	$	-	$	8,910	$	168,910
COO, CTO (3)	~~2023~~2024	$	160,000	$	-	$		$	8,910	$	168,910

(1) Mr. Easterling is entitled to receive medical insurance reimbursement, of which $0 ~~and $5,590~~ was paid during the fiscal years ended March 31, ~~2024~~2025 and ~~2023~~March 31, 2024, respectively, and $1116,~~180~~770 was accrued at March 31, ~~2024~~2025. Mr. Easterling is also entitled to an automobile allowance of $500 per month, of which $0 ~~and $4,000~~ was paid during the fiscal year ended March 31, ~~2024~~2025 and ~~2023~~2024 and $814,000 was accrued for as of March 31, ~~2024~~2025. As of March 31, ~~2024~~2025, Mr. Easterling was owed $~~232~~412,500 for accrued and unpaid wages. The accrued amount represents his entire salary for fiscal ~~year~~years ~~2024~~2025 and ~~a portion of his salary for fiscal year 2023~~2024.

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(2)

As of March 31, ~~2024~~2025, Mr. Delgado was owed $~~206~~266,667 for accrued and unpaid wages. The accrued amount represents his entire salary for fiscal ~~year~~years ~~2024~~2025 and ~~a portion of his salary for fiscal year 2023~~2024. Mr. Delagado is also eligible to receive healthcare reimbursement, of which $~~9,132~~0 was paid during our fiscal year ended March 31, ~~2024~~2025.

(3)

As of March 31, ~~2024~~2025 and ~~2023~~March 31, 2024, Mr. Untermeyer was owed $~~270~~430,667 ~~and $110,667, respectively,~~ for accrued and unpaid salary. The accrued amount represents his entire salary for fiscal ~~year~~years ~~2024~~2025 and ~~a portion of his salary for fiscal year 2023~~2024. Mr. Untermeyer is entitled to receive medical insurance reimbursement, of which $0 was paid during the fiscal ~~year~~years ending March 31, ~~2024~~2025 and ~~$3,714 was accrued and unpaid~~2024. Mr. Untermeyer is also entitled to an automobile allowance of $500 per month, of which $0 was paid during the fiscal ~~year~~years ~~ended~~2025 ~~March~~and ~~31,~~ 2024 and $814,000 was accrued and unpaid.

Employment Agreements

Gerald Easterling

As of April 1, 2015, the Company entered into an employment agreement with Gerald Easterling as the Company’s President, as amended pursuant to an amendment thereto dated as of May 21, 2021. The agreement as amended provides for an annual base salary of $180,000 and that Mr. Easterling may also receive one or more bonuses at such times and in such amounts as determined in the sole discretion of the Company’s Board of Directors. Mr. Easterling is also entitled to certain benefits including health insurance, reimbursement of cell phone costs, and a monthly $500 car allowance.

Mr. Easterling’s employment agreement terminates automatically upon his death. In addition, the Company may terminate the agreement because of Mr. Easterling’s Total Disability or for certain events constituting Cause, in each case as defined in the agreement, or without Cause. Mr. Easterling may terminate his employment agreement for certain events constituting Good Reason, as defined in the agreement, or without Good Reason.

The agreement provides that in the event that Mr. Easterling is terminated without Cause or resigns for Good Reason, he will receive, as severance, his base salary for a period of 60 months following the date of termination. In the event of a Change of Control (as defined in the agreement) of the Company, Mr. Easterling may elect to terminate the agreement within 30 days thereafter and upon such termination would be entitled to receive a lump sum payment equal to 500% of his annual base salary.

The agreement contains certain restrictive covenants relating to non-competition, non-solicitation of customers and non-solicitation of employees for a period of one year following termination of the agreement, as well as confidentiality provisions.

Tom Untermeyer

As of November 1, 2017, the Company entered into an employment agreement with Tom Untermeyer as its Chief Technology Officer, as amended pursuant to an amendment thereto dated as of May 21, 2021. The agreement as amended provides for an annual base salary of $160,000 and that Mr. Untermeyer may also receive one or more bonuses at such times and in such amounts as determined in the sole discretion of the Company’s Board of Directors.

Mr. Untermeyer’s employment agreement terminates automatically upon his death. In addition, NaturalShrimp may terminate the agreement because of Mr. Untermeyer’s Total Disability or for certain events constituting Cause, in each case as defined in the agreement, or without Cause. Mr. Untermeyer may terminate his employment agreement for certain events constituting Good Reason, as defined in the agreement, or without Good Reason.

The agreement provides that in the event that Mr. Untermeyer is terminated without Cause he will receive, as severance, his base salary for a period of six months following the date of termination. The agreement also provides, however, that in the event of a Change of Control (as defined in the agreement) of the Company, Mr. Untermeyer may elect to terminate the agreement within 30 days thereafter and upon such termination would be entitled to receive a lump sum payment equal to 50% of his annual base salary.

The agreement contains certain restrictive covenants relating to non-competition, non-solicitation of customers and non-solicitation of employees for a period of two years following termination of the agreement, as well as confidentiality provisions.

5121

William Delgado

As of May 1, 2021, the Company entered into an employment agreement with William Delgado as its Chief Financial Officer. The agreement provides for an annual base salary of $160,000 and that Mr. Delgado may also receive one or more bonuses at such times and in such amounts as determined in the sole discretion of our Board of Directors.

Mr. Delgado’s employment agreement terminates automatically upon his death. In addition, the Company may terminate the agreement because of Mr. Delgado’s Total Disability or for certain events constituting Cause, in each case as defined in the agreement, or without Cause. Mr. Delgado may terminate his employment agreement for certain events constituting Good Reason, as defined in the agreement, or without Good Reason.

The agreement provides that in the event that Mr. Delgado is terminated without Cause or resigns for Good Reason he will receive, as severance, his base salary for a period of 60 months following the date of termination. In the event of a Change of Control (as defined in the agreement) of the Company, Mr. Delgado may elect to terminate the agreement within 30 days thereafter and upon such termination would be entitled to receive a lump sum payment equal to 50% of his annual base salary.

Potential Payments Upon Termination or Change-in-Control

SEC regulations state that we must disclose information regarding agreements, plans or arrangements that provide for payments or benefits to our executive officers in connection with any termination of employment or change in control of the Company. Such payments are set forth above in the section entitled “Employment Agreements.”

Except as described above, none of our executive officers or directors received, nor do we have any arrangements to pay out, any bonus, stock awards, option awards, non-equity incentive plan compensation, or non-qualified deferred compensation.

Compensation of Directors

We do not compensate our directors for their service on the Board of Directors. However, we intend to review and consider future proposals regarding board compensation. All travel and lodging expenses associated with corporate matters are reimbursed by us, if and when incurred.

Stock Option Plans - Outstanding Equity Awards at Fiscal Year End

None of NaturalShrimp’s executive officers held any unexercised options to purchase stock of NaturalShrimp, unvested shares of NaturalShrimp common or preferred stock, or outstanding equity incentive plan awards at March 31, ~~2024~~2025.

Compensation Committee

The Company does not have a separate Compensation Committee. Instead, the Company’s Board of Directors reviews and approves executive compensation policies and practices, reviews salaries and bonuses for other officers, administers the Company’s stock option plans and other benefit plans, if any, and considers other matters.

Risk Management Considerations

We believe that our compensation policies and practices for our employees, including our executive officers, do not create risks that are reasonably likely to have a material adverse effect on the Company.

5222

ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS

The following tables set forth certain information regarding our shares of common stock and our voting shares beneficially owned as of ~~July~~November 112, ~~2024~~2025 and is based on (i) 1,~~209~~277,~~334~~546,~~067~~746 shares of common stock issued and outstanding, (ii) 5,000,000 shares of Series A Preferred Stock issued and outstanding all owned by Gerald Easterling (which equals 300 million votes and is convertible into the number of shares of common stock equal to the difference between our authorized and issued shares of common stock (~~224~~122,~~172~~453,~~188~~254 shares), and (iii) 750,000 shares of Series F Preferred Stock issued and outstanding (which equals 750 million votes and is not currently convertible into shares of common stock) for (A) each stockholder known to be the beneficial owner of 5% or more of our outstanding shares of common stock and voting shares, (B) each named executive officer and director, and (C) all executive officers and directors as a group. A person is considered to beneficially own any shares (1) over which such person, directly or indirectly, exercises sole or shared voting or investment power, or (2) of which such person has the right to acquire beneficial ownership at any time within 60 days through an exercise of stock options or warrants. Unless otherwise indicated, voting and investment power relating to the shares shown in the tables for our directors and executive officers is exercised solely by the beneficial owner or shared by the owner and the owner’s spouse or children.

For purposes of these tables, a person or group of persons is deemed to have “beneficial ownership” of any shares of common stock that such person has the right to acquire within 60 days of ~~June 05~~ October 8, ~~2024~~2025. For purposes of computing the percentage of outstanding shares of our common stock held by each person or group of persons, any shares that such person or persons has the right to acquire within 60 days of ~~June~~October 058, ~~2024~~ 2025 is deemed to be outstanding but is not deemed to be outstanding for the purpose of computing the percentage ownership of any other person. The inclusion herein of any shares listed as beneficially owned does not constitute an admission of beneficial ownership. Except as otherwise indicated, the address of each of the shareholders listed below is: ~~13601~~P.O. ~~Preston~~Box ~~Road~~1256, ~~Suite E1092,~~ Dallas, Texas ~~75240~~75225.

Beneficial Owner	Common Stock Shares Beneficially Owned			% of Common Stock Shares Beneficially Owned			Voting Shares Beneficially Owned			% of Voting Shares Beneficially Owned (7)
Gerald Easterling		~~227~~125,~~629~~910,~~095~~161	(1)		198.367	% (3)		553,456,907	(4)		2823.7873	%
William Delgado		5,715,719	(2)		*			255,715,719	(5)		1310.3096	%
Tom Untermeyer		5,140,666	(2)		*			255,140,666	(6)		1310.2794	%
Directors and Executive Officers as a Group (three persons)
Total		46136,~~317~~766,~~330~~546			58.157	%		1,064,313,292			5545.3463	%

* Less than 1%

(1)	Consists of (a) 3,456,907 shares of common stock and (b) 122,453,254 shares of common stock into which the 5 million shares of Series A Preferred Stock is convertible.	~~Consists of (a) 3,456,907 shares of common stock and (b) 224,172,188 shares of common stock into which the 5 million shares of Series A Preferred Stock is convertible.~~
(2)	Consists solely of shares of common stock owned. Of the 5,715,719 shares owned, all but 500,000 are held by Dragon Acquisitions LLC, of which Mr. Delgado is the managing member.	~~Consists solely of shares of common stock owned. Of the 5,715,719 shares owned, all but 500,000 are held by Dragon Acquisitions LLC, of which Mr. Delgado is the managing member.~~
(3)	Solely with regard to Mr. Easterling, the percentage is based on the 1,277,546,746 shares of common stock outstanding plus the 122,453,254 shares of common stock into which the 5 million shares of Series A Preferred Stock is convertible.	Solely with regard to Mr. Easterling, the percentage is based on the 1,175,827,812 shares of common stock outstanding plus the 227,629,095 shares of common stock into which the 5 million shares of Series A Preferred Stock is convertible.
(4)	Consists of (a) 3,456,907 shares of common stock, (b) 300 million votes to which the 5 million shares of Series A Preferred Stock held by Mr. Easterling is entitled (60 votes per share), and (c) 250 million votes to which the 250,000 shares of Series F Preferred Stock held by Mr. Easterling is entitled (1,000 votes per share).	Consists of (a) 3,456,907 shares of common stock, (b) 300 million votes to which the 5 million shares of Series A Preferred Stock held by Mr. Easterling is entitled (60 votes per share), and (c) 250 million votes to which the 250,000 shares of Series F Preferred Stock held by Mr. Easterling is entitled (1,000 votes per share).
(5)	Consists of (a) 5,715,719 shares of common stock and (b) 250 million votes to which the 250,000 shares of Series F Preferred Stock held by Mr. Delgado is entitled (1,000 votes per share).	~~Consists of (a) 5,715,719 shares of common stock and (b) 250 million votes to which the 250,000 shares of Series F Preferred Stock held by Mr. Delgado is entitled (1,000 votes per share).~~
(6)	Consists of (a) 5,140,666 shares of common stock and (b) 250 million votes to which the 250,000 shares of Series F Preferred Stock held by Mr. Untermeyer is entitled (1,000 votes per share).
(7)	Each percentage in this column is based on (a) 1,277,546,746 shares of common stock outstanding, (b) 300 million votes to which the 5 million shares of Series A Preferred Stock outstanding is entitled (60 votes per share), (c) 5,143,000 votes to which the 1,571 shares of Series E Preferred Stock outstanding is entitled, and (c) 750 million votes to which the 750,000 shares of Series F Preferred Stock outstanding is entitled (1,000 votes per share).

(6)		Consists of (a) 5,140,666 shares of common stock and (b) 250 million votes to which the 250,000 shares of Series F Preferred Stock held by Mr. Untermeyer is entitled (1,000 votes per share).
(7)		Each percentage in this column is based on (a) 1,175,827,812 shares of common stock outstanding, (b) 300 million votes to which the 5 million shares of Series A Preferred Stock outstanding is entitled (60 votes per share), (c) 5,143,000 votes to which the 1,500 shares of Series E Preferred Stock outstanding is entitled, and (c) 750 million votes to which the 750,000 shares of Series F Preferred Stock outstanding is entitled (1,000 votes per share).

Securities Authorized for Issuance Under Equity Compensation Plans

None.

Non-Cumulative Voting

The holders of our shares of common stock do not have cumulative voting rights, which means that the holders of more than 50% of such outstanding shares, voting for the election of Directors, can elect all of the Directors to be elected, if they so choose. In such event, the holders of the remaining shares will not be able to elect any of our Directors.

ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE

Transactions with Related Persons

During the year ended March 31, ~~2024~~2025, the Company received $~~140~~40,000 in proceeds from the issuance of ~~three~~a promissory ~~notes~~note with a family members of of related parties. The notes bear interest at 10% and have maturity dates one year from the issuance date.

During the year ended March 31, ~~2023~~2024, the Company ~~issued~~received ~~a loan agreement for~~ $~~300~~140,000, ~~with~~in ~~employee~~proceeds ~~and~~from ~~family~~the ~~member~~issuance ~~related parties, which is to be considered priority debt~~ of ~~the~~three ~~Company.~~promissory Asnotes ofwith ~~this~~family ~~filing, five~~ members of ~~the~~ related parties. ~~have~~The ~~entered into promissory~~ notes ~~under~~bear ~~the~~interest ~~loan~~at ~~agreement~~10% ~~for~~and ~~$50,000~~have ~~each,~~maturity ~~for~~dates aone ~~total~~year offrom ~~cash~~the ~~received~~issuance ~~of $250,000~~date. The promissory notes ~~bear interest at 10% per annum~~were ~~and are due~~ in ~~one~~default ~~year~~as ~~from~~of the ~~issuance~~ date of the ~~notes~~filing.

5423

NaturalShrimp Holdings, Inc.

As discussed under “Item 1. Business,” on January 30, 2015, the Company acquired substantially all of the assets of NSH, which consisted primarily of all of the issued and outstanding shares of capital stock of its subsidiaries NSC and NS Global and certain real property located outside of San Antonio, Texas, in exchange for its issuance of 75,520,240 shares of NaturalShrimp Common Stock to NSC. As a result of the transaction, NSH acquired 88.62% of the issued and outstanding shares of the Company’s common stock, NSC and NS Global became wholly-owned subsidiaries of the Company, and the Company changed its principal business to a global shrimp farming company. It changed its name to “NaturalShrimp Incorporated” in 2015.

There were no material relationships between the Company and NSH or between the Company’s or NSH’s respective affiliates, directors, or officers or associates thereof, other than in respect of the asset acquisition and the related asset purchase agreement.

On January 1, 2016 the Company entered into a notes payable agreement with ~~NSH~~NaturalShrimp Holdings, Inc.(“NSH”), a shareholder. The note payable has no set monthly payment or maturity date with a stated interest rate of 2%. ~~The~~During the year ended March 31, 2022, the Company paid off $655,750 of the note payable. ~~during~~The ~~the~~outstanding ~~year~~balance ~~ended~~was approximately $79,000 and $77,000 as of March 31, ~~2022~~2025 and March 31, ~~and~~2024, ~~paid off~~respectively. ~~the~~As ~~remainder~~March of31, ~~the~~2025 ~~note~~and ~~during~~March ~~the~~31, ~~quarter~~2024, ~~ended~~accrued ~~June~~interest 30payable was approximately $93,000 ~~2022~~and $74,000, respectively.

Director Independence

Our board of directors consists of Gerald Easterling, William Delgado and Tom Untermeyer. ~~Our common stock is quoted on the OTCQB tier of the OTC Markets Group quotation system, which does not have any director independence requirements.~~ We evaluate independence by the standards for director independence established by applicable laws, rules, and listing standards including, without limitation, the standards for ~~independent~~ independent directors established by NYSE, Nasdaq, and the SEC.

Subject to some exceptions, these standards generally provide that a director will not be independent if: (i) the director is, or in the past three years has been, an employee of ours; (ii) a member of the director’s immediate family is, or in the past three years has been, an executive officer of ours; (iii) the director or a member of the director’s immediate family has received more than $120,000 per year in direct compensation from us other than for service as a director (or for a family member, as a non-executive employee); (iv) the director or a member of the director’s immediate family is, or in the past three years has been, employed in a professional capacity by our independent public accountants, or has worked for such firm in any capacity on our audit; (v) the director or a member of the director’s immediate family is, or in the past three years has been, employed as an executive officer of a company where one of our executive officers serves on the compensation committee; or (vi) the director or a member of the director’s immediate family is an executive officer of a company that makes payments to, or receives payments from, us in an amount which, in any twelve-month period during the past three years, exceeds the greater of $1,000,000 or two percent of that other company’s consolidated gross revenues. Based on these standards, we have determined that Messrs. Easterling, Untermeyer and Delgado are not independent directors.

5524

ITEM 14. PRINCIPAL ACCOUNTANT FEES AND SERVICES

Audit and Accounting Fees

The following tables set forth the fees billed to us for professional services rendered by Turner, Stone & Company for the years ended March 3130, ~~2024~~2025 and ~~2023~~March 31, 2024:

Services	~~2024~~2025		~~2023~~2024
Audit fees	$	8566,~~600~~000	$	85,~~700~~600
Audit related fees		~~12,600~~-		1812,~~888~~600
Tax fees		-		~~28,250~~-
All other fees		~~31,935~~-		-31,935
Total fees	$	~~130~~66,~~135~~000	$	~~132~~130,~~838~~135

Audit Fees

The audit fees were paid for the audit services of our annual and quarterly reports and issuing consents for our registration statements.

Audit Related Fees

The audit related fees were paid for the services of issuing consents for our registration statements filed during 2024.

Tax Fees

The taxes fees were paid for tax services provided during the years ended March 30, 2025 and March 31, ~~2023~~2024.

All Other Fees

All other fees were for services provided related to the merger with Yotta Acquisition Corp during 2024.

Pre-Approval Policies and Procedures

Our board of directors preapproves all services provided by our independent registered public accounting firm. All of the above services and fees were reviewed and approved by the board of directors before the respective services were rendered.

5625

PART IV

ITEM 15. EXHIBITS AND FINANCIAL STATEMENT SCHEDULES

EXHIBIT INDEX

Exhibit		Incorporated by Reference
Number	Exhibit Description	Form	Exhibit	Filing Date
3.1	Articles of Incorporation of NaturalShrimp Incorporated, as amended	10-K	3.1	6/29/2022
3.2	Bylaws of NaturalShrimp Incorporated	S-1	3.2	6/11/2009
3.3	Certificate of Designation of Series A Preferred Stock	8-K	3.1	8/22/2018
3.4	Certificate of Designation of Series B Preferred Stock	10-Q	3.1	11/14/2019
3.5	Certificate of Designation of Series D Preferred Stock	8-K	3.1	12/22/2020
3.6	Certificate of Designation of Series E Preferred Stock	8-K	3.1	4/15/2021
3.7	Certificate of Designation of Series F Preferred Stock	8-K	3.1	3/1/2022
3.8*	Certificate of Designation of Series G Preferred Stock
3.8	Certificate of Designation of Series G Preferred Stock	10-K	3.8	7/17/2024
4.1	Specimen Common Stock Certificate	S-1	4.1	6/11/2009
4.2	Description of Securities	10-K	4.2	6/29/2022
4.3	Warrant to Purchase Shares of Common Stock issued January 23, 2017 to Vista Capital Investments, LLC	10-K	10.21	6/29/2017
21.1*	Subsidiaries of the Registrant.	10-K	21.1	6/27/2023
4.4	Restructuring Agreement dated as of November 4, 2022, by and between Streeterville Capital, LLC, and NaturalShrimp Incorporated	10-K	4.4	6/27/2023
31.1*	Rule 13a-14(a) / 15d-14(a) Certification of Chief Executive Officer.
4.5	Amended and Restated Secured Promissory Note, effective date August 17, 2022	10-K	4.5	6/27/2023
31.2*	Rule 13a-14(a) / 15d-14(a) Certification of Chief Financial Officer.
4.6	Restructuring Agreement dated as of November 5, 2022, by and between GHS Investments, LLC, and NaturalShrimp Incorporated	10-K	4.6	6/27/2023
32.1**	Section 1350 Certification of Chief Executive Officer.
4.7	Form of Warrant dated April 14, 2021, issued to Investor	8-K	4.1	4/15/2021
32.2**	Section 1350 Certification of Chief Financial Officer.
4.5	Form of Pre-Funded Common Stock Purchase Warrant, dated June 28, 2021	8-K	4.1	7/2/2021
101.INS*	Inline XBRL Instance Document
4.9	Form of Warrant, dated as of November 22, 2021, by and between the Company and the Purchaser	8-K	4.1	11/24/2021
101.SCH*	Inline XBRL Taxonomy Extension Schema Document
4.10	Amended and Restated Secured Promissory Note, effective date December 15, 2021	10-K	4.10	6/27/2023
101.CAL*	Inline XBRL Taxonomy Extension Calculation Linkbase Document
4.11	Restructuring Agreement dated as of November 7, 2022, by and between Joseph A. Alagna Jr. and NaturalShrimp Incorporated (warrant to purchase 66,857 shares of common stock)	10-K	4.11	6/27/2023
101.DEF*	Inline XBRL Taxonomy Extension Definition Linkbase Document
4.12	Restructuring Agreement dated as of November 7, 2022, by and between Joseph A. Alagna Jr. and NaturalShrimp Incorporated (warrant to purchase 600,000 shares of common stock)	10-K	4.12	6/27/2023
101.LAB*	Inline XBRL Taxonomy Extension Label Linkbase Document
4.13	Restructuring Agreement dated as of November 7, 2022, by and between Stephan A. Stein and NaturalShrimp Incorporated (warrant to purchase 40,114 shares of common stock)	10-K	4.13	6/27/2023
101.PRE*	Inline XBRL Taxonomy Extension Presentation Linkbase Document
4.14	Restructuring Agreement dated as of November 7, 2022, by and between Stephan A. Stein and NaturalShrimp Incorporated (warrant to purchase 360,000 shares of common stock)	10-K	4.14	6/27/2023
104	Cover Page Interactive Data File (embedded within the Inline XBRL document
4.15	Restructuring Agreement dated as of November 7, 2022, by and between Anthony Sica and NaturalShrimp Incorporated (warrant to purchase 240,000 shares of common stock)	10-K	4.15	6/27/2023
4.16	Restructuring Agreement dated as of November 7, 2022, by and between Anthony Sica and NaturalShrimp Incorporated (warrant to purchase 26,743 shares of common stock)	10-K	4.16	6/27/2023
4.17	Restructuring Agreement dated as of November 7, 2022, by and between Brandon Ross and NaturalShrimp Incorporated (warrant to purchase 167,143 shares of common stock)	10-K	4.17	6/27/2023
4.18	Restructuring Agreement dated as of November 7, 2022, by and between Brandon Ross and NaturalShrimp Incorporated (warrant to purchase 1,600,000 shares of common stock)	10-K	4.18	6/27/2023
4.19	Restructuring Agreement dated as of November 7, 2022, by and between Michael Hodges and NaturalShrimp Incorporated (warrant to purchase 33,429 shares of common stock)	10-K	4.19	6/27/2023
4.20	Restructuring Agreement dated as of November 7, 2022, by and between Michael Hodges and NaturalShrimp Incorporated (warrant to purchase 200,000 shares of common stock)	10-K	4.20	6/27/2023
10.1+	Employment Agreement dated as of April 1, 2015 with Gerald Easterling	8-K	10.3	5/7/2015
10.1.1*+	Amendment to Employment Agreement with Gerald Easterling dated as of May 21, 2021
10.2	Form of Securities Purchase Agreement, dated as of April 14, 2021, by and between the Company and the Purchaser	8-K	10.1	4/15/2021
10.3	Form of Exchange Agreement, dated as of April 14, 2021 by and between the Company and a holder of the Series D Preferred Stock	8-K	10.2	4/15/2021
10.4	Securities Purchase Agreement by and between NaturalShrimp Incorporated and F&T Water Solutions, LLC, dated May 19, 2021	8-K	10.1	6/1/2021
10.5#	Patents Purchase Agreement by and between NaturalShrimp Incorporated and F&T Water Solutions, LLC, dated May 19, 2021	8-K	10.2	6/1/2021
10.6	Form of Leak-Out Agreement by and between NaturalShrimp Incorporated and F&T Water Solutions, LLC, dated May 19, 2021.	8-K	10.3	6/1/2021
10.7	Form of Securities Purchase Agreement, dated June 28, 2021, by and between the Company and the Purchaser	8-K	10.2	7/2/2021
10.8	Form of Securities Purchase Agreement, dated as of November 22, 2021, by and between the Company and the Purchaser	8-K	10.1	11/24/2021
10.9	Form of Registration Rights Agreement, dated as of November 22, 2021, by and between the Company and the Purchaser	8-K	10.2	11/24/2021
10.10	Form of Waiver	8-K	10.3	11/24/2021
10.11	Securities Purchase Agreement, dated December 15, 2021, by and between NaturalShrimp Incorporated and Streeterville Capital LLC	8-K	10.1	12/21/2021
10.12	Security Agreement, dated December 15, 2021, by and between NaturalShrimp Incorporated and Streeterville Capital LLC	8-K	10.2	12/21/2021

10.13#	Purchase Agreement, dated as of November 4, 2022, by and between the Company and GHS Investments LLC	10-Q	10.1	2/16/2023
10.14	Securities Purchase Agreement, dated August 17, 2022, by and between NaturalShrimp Incorporated and Streeterville Capital LLC	8-K	10.1	8/24/2022
10.15	Escrow Agreement, dated August 17, 2022, by and between NaturalShrimp Incorporated, Streeterville Capital LLC, and Hansen Black Anderson Ashcraft PLLC	8-K	10.2	8/24/2022
10.16	Security Agreement, dated August 17, 2022, by and between NaturalShrimp Incorporated and Streeterville Capital LLC	8-K	10.3	8/24/2022
10.17#	Purchase Agreement, dated as of November 4, 2022, by and between the Company and GHS Investments LLC	8-K	10.1	11/8/2022
10.18	Equity Financing Agreement dated April 28, 2023 by and between NaturalShrimp Incorporated and GHS Investments, LLC	8-K	10.1	5/10/2023
10.19	Registration Rights Agreement dated April 28, 2023 by and between NaturalShrimp Incorporated and GHS Investments, LLC	8-K	10.2	5/10/2023
10.20#	Purchase Agreement, dated as of May 9, 2023, by and between NaturalShrimp Incorporated and GHS Investments LLC	8-K	10.3	5/10/2023
10.21	Licensing Agreement dated May 24, 2023 by and between Niterra Co., Ltd. and NaturalShrimp Incorporated	8-K	10.1	6/8/2023
10.22	Securities Purchase Agreement, dated December 14, 2023, by and between NaturalShrimp Incorporated and GHS Investments, LLC	8-K	10.1	1/9/2024
10.23	Consulting Agreement with Redhawk Investment Group, LLC	8-K	10.1	2/29/2024
10.24+	Employment Agreement dated as of November 1, 2017 with Tom Untermeyer	10-K	10.18	6/27/2023
10.25+	Amendment to Employment Agreement with Tom Untermeyer dated as of May 21, 2021	10-K	10.19	6/27/2023
10.26+	Employment Agreement dated as of May 1, 2021 with William Delgado	10-K	10.20	6/27/2023
21.1*	Subsidiaries of the Registrant.	10-K	21.1	6/27/2023
31.1*	Rule 13a-14(a) / 15d-14(a) Certification of Chief Executive Officer.
31.2*	Rule 13a-14(a) / 15d-14(a) Certification of Chief Financial Officer.
32.1**	Section 1350 Certification of Chief Executive Officer.
32.2**	Section 1350 Certification of Chief Financial Officer.
101.INS*	Inline XBRL Instance Document
101.SCH*	Inline XBRL Taxonomy Extension Schema Document
101.CAL*	Inline XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF*	Inline XBRL Taxonomy Extension Definition Linkbase Document
101.LAB*	Inline XBRL Taxonomy Extension Label Linkbase Document
101.PRE*	Inline XBRL Taxonomy Extension Presentation Linkbase Document
104	Cover Page Interactive Data File (embedded within the Inline XBRL document

* Filed herewith.

** Furnished herewith.

+ Management compensatory plan or contract.

# Certain schedules and exhibits have been omitted pursuant to Item 601(a)(5) of Regulation S-K. The Company will furnish supplementally copies of omitted schedules and exhibits to the Securities and Exchange Commission or its staff upon its request.

ITEM 16. FORM 10-K SUMMARY

Not applicable.

5826

SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

NATURALSHRIMP INCORPORATED

By:	/s/ Gerald Easterling
Gerald Easterling
Chief Executive Officer (Principal Executive Officer)
Date:	~~July~~November 175, ~~2024~~2025

By:	/s/ William Delgado
William Delgado
Chief Financial Officer and Treasurer (Principal Financial Officer and Principal Accounting Officer)
Date:	~~July~~November 175, ~~2024~~2025

Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

Signatures	Title(s)	Date
/s/ Gerald Easterling	Chief Executive Officer and Chairman of the Board	Date: ~~July~~November 175, ~~2024~~2025
Gerald Easterling	of Directors (Principal Executive Officer)
/s/ William Delgado	Chief Financial Officer, Treasurer and Director	Date: ~~July~~November 175, ~~2024~~2025
William Delgado	(Principal Financial Officer and Principal Accounting Officer)
/s/ Tom Untermeyer	Chief Operating Officer, Chief Technology Officer and Director	Date: ~~July~~November 175, ~~2024~~2025
Tom Untermeyer

5927

ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

NATURALSHRIMP INCORPORATED

CONSOLIDATED FINANCIAL STATEMENTS AS OF MARCH 31, ~~2024~~2025, ~~and~~MARCH ~~2023~~30, 2025 AND MARCH 31, 2024

TABLE OF CONTENTS

	Page
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM (PCAOB FIRM ID 76)	F-1
CONSOLIDATED FINANCIAL STATEMENTS:
Consolidated Balance Sheets	F-3
Consolidated Statement of Net Liabilities in Liquidation	F-2
Consolidated Statements of Operations	F-4
Consolidated Balance Sheet	F-3
Consolidated Statements of Changes in Stockholders’ Deficit	F-5
Consolidated Statement of Operations	F-4
Consolidated Statements of Cash Flows	F-6
Consolidated Statement of Changes in Stockholders’ Deficit	F-5
Consolidated Statement of Cash Flows	F-6
Notes to Consolidated Financial Statements	F-7

6028

Your Vision Our Focus

Report of Independent Registered Public Accounting Firm

~~Board~~To ofthe ~~Directors~~Board ~~and~~of ~~Shareholders~~Directors

~~NaturalShrimp~~and Stockholders of NaturalShrimp Incorporated

Opinion on the Consolidated Financial Statements

We have audited the accompanying consolidated balance sheets of NaturalShrimp Incorporated. and subsidiary (collectively, the “Company”) as of March 31, ~~2024 and 2023~~2025, ~~and~~ the related ~~statements~~ of consolidated statements of operations, ~~changes in~~ stockholders’ equity (deficit), and cash flows for ~~each of~~ the ~~two years~~ inyear ~~the~~then ~~period~~ ended ~~March 31~~, ~~2024,~~ and the related notes (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the consolidated financial position of ~~NaturalShrimp~~the ~~Incorporated~~Company as of March 31, ~~2024 and 2023~~2025, and the results of its operations and its cash flows for ~~each of~~ the ~~two~~year ~~years~~then ~~in the period~~ ended ~~March 31~~, ~~2024,~~ in conformity with accounting principles generally accepted in the United States ~~of America~~.

Going Concern and Liquidation Basis of Accounting

The accompanying consolidated financial statements as of March 30, 2025 have been prepared ~~assuming~~in ~~that~~conformity with accounting principles generally accepted in the ~~entity~~United States of America (“GAAP”), assuming the Company will continue as a going concern., which Ascontemplates ~~discussed~~the inrealization ~~Note 1~~of toassets and satisfaction of liabilities in the ~~financial~~normal ~~statements~~course of business. As such, the ~~entity~~ Company has ~~suffered~~presented ~~recurring~~going ~~losses~~concern ~~from~~financial ~~operations~~statements ~~and~~as ~~has~~of aMarch ~~net~~30, ~~capital~~2025 ~~deficiency~~and ~~that~~for ~~raise~~the ~~substantial doubt~~period ~~about~~from ~~its~~April ~~ability~~1, to2024 ~~continue~~through asMarch a30, ~~going concern~~2025. ~~Management’s~~Furthermore, ~~plans~~ in ~~regard~~accordance towith ~~these~~ASC ~~matters~~205-30, ~~are~~Liquidation ~~also~~Basis ~~described~~of inAccounting, ~~Note~~the 1.Company ~~The~~has presented its financial statements do(using ~~not~~a ~~include~~convenience ~~any~~date) ~~adjustments~~as ~~that~~of ~~might~~March ~~result~~31, ~~from~~2025 under the ~~outcome~~liquidation ofbasis ~~this uncertainty~~of accounting.

Basis for Opinion

These consolidated financial statements are the responsibility of the ~~entity~~Company’s management. Our responsibility is to express an opinion on ~~these~~the Company’s consolidated financial statements based on our ~~audits~~audit. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (“PCAOB”) and are required to be independent with respect to ~~NaturalShrimp~~the ~~Incorporated~~ Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our ~~audits~~audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. ~~NaturalShrimp Incorporated~~The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our ~~audits~~ audit, we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the ~~entity~~Company’s internal control over financial reporting. Accordingly, we express no such opinion.

Our ~~audits~~audit included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence ~~regarding~~ regarding the amounts and disclosures in the consolidated financial statements. Our ~~audits~~audit also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. We believe that our ~~audits provide~~audit provides a reasonable basis for our opinion.

Turner, Stone & Company, L.L.P.
Accountants and Consultants
12700 Park Central Drive, Suite 1400
Dallas, Texas 75251
Telephone: 972-239-1660 ⁄ Facsimile: 972-239-1665
Toll Free: 877-853-4195
Web site: turnerstone.com	INTERNATIONAL ASSOCIATION OF ACCOUNTANTS AND AUDITORS

F-1

Critical Audit Matters

The critical audit ~~matters~~matter communicated below ~~are~~is ~~matters~~a matter arising from the current period audit of the consolidated financial statements that were communicated or required to be communicated to the audit committee and that: (1) relate to accounts or disclosures that are material to the consolidated financial statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit ~~matters~~ matter below, providing separate opinions on the critical audit ~~matters~~matter or on the accounts or disclosures to which ~~they~~it ~~relate~~relates.

~~Description~~ ● Going Concern – As discussed in Note 3 to the consolidated financial statements, due to the Company’s significant amount of ~~Matter~~debt that was in default as of September 30, 2024, Ampleo Turnaround and Restructuring, LLC (“the receiver”) was placed as the receiver over the Company’s assets. Further, the receiver filed a motion to sell substantially all of the Company’s assets to Streeterville and Bucktown Capital for an approximate credit bid of $35.7 million and $100,000 in cash. The motion to sell the assets was approved by the court on March 30, 2025 and title to the assets was transferred to Streeterville on May 14, 2025. The Company believes that it continued to function as a going concern until the date that the motion to sell its assets was approved by the court on March 30, 2025 at which point liquidation became imminent. As such, the Company has presented going concern financial statements as of March 30, 2025 and for the period from April 1, 2024 through March 30, 2025. Furthermore, in accordance with ASC 205-30, Liquidation Basis of Accounting, the Company has presented its financial statements (using a convenience date) as of March 31, 2025 under the liquidation basis of accounting. As such, the financial statements included in the filing also include a Statement of Net Liabilities in liquidation as of March 31, 2025. As there was only a one-day period between the time liquidation became imminent and the end of the reporting period, a Statement of Changes in Net Assets (liabilities) in liquidation has not been presented

~~Impairment~~/s/BCRG ofGroup ~~Intangible~~(PCAOB ~~Assets~~ID ~~and Fixed Assets:~~7158)

~~The~~We ~~impairment~~have ~~evaluation~~served of the Company’s intangible assets and fixed assets is an assessment that begins with the Company’s monitoring of indicators of impairment on an individual asset basis, which the Company believes is the lowest level for which there are identifiable cash flows. The Company reviews intangible assets and fixed assets for impairment indicators on an annual basis or whenever events or changes in circumstances indicate the carrying amount of the assets may not be fully recoverable. The Company performed a quantitative impairment assessment as ~~of March 31, 2024, for all intangible assets and fixed assets. When performing a quantitative impairment assessment,~~ the Company ~~estimates cash flows at the asset level from continuing use through the remainder of the asset~~’s estimated useful life. If the estimated cash flows are not sufficient to recover an intangible assets and fixed assets’ carrying value, the Company recognizes an impairment to reduce the carrying value to the estimated fair value. The Company applies significant judgment in estimating the cash flows of its intangible assets and fixed assets based on expected revenues, industry, and business growth, and expected residual cash flows. We identified the impairment of life intangible assets and fixed assets as a critical audit matter because of the significant judgment required by management to determine estimated expected revenues, growth, and cash flows. This required a high degree of auditor ~~judgment~~since ~~and an increased extent of effort when performing audit procedures to evaluate the reasonableness of management’s judgements and estimates~~2025.

~~How~~Irvine, ~~the Critical Audit Matter Was Addressed in the Audit~~CA

~~Our audit~~November ~~procedures related to management’s model which included projected revenues based on forecasted growth rates and cash flow analysis included the following~~4, ~~among others:~~2025

F- We evaluated management’s ability to forecast future cash flows by evaluating management’s forecast of estimated future cash flows assumptions. - We involved specialists to assist in our evaluation of the Company’s methodology and significant assumptions and inputs used in estimating the recoverable amount including, but not limited to, the forecasted performance driven by expected industry receptivity, prices and expected capex and operating costs. - We reviewed the completeness and accuracy of the underlying data used in management’s forecast. - We assessed the underlying source information where available and mathematical accuracy of the calculations.1

~~/s/~~NATURALSHRIMP ~~Turner,~~INCORPORATED ~~Stone~~AND ~~& Company, L.L.P.~~SUBSIDIARIES

WeCONSOLIDATED ~~have~~STATEMENT ~~served~~OF asNET ~~NaturalShrimp~~LIABILITIES ~~Incorporated’s~~IN ~~auditor since 2015.~~LIQUIDATION

Dallas, Texas

	As of
	March 31, 2025
Cash		101,969
Current assets		193,865
Fixed assets and intangibles		35,800,000
Other assets		86,330
Accounts payable and accrued expenses		(6,809,772	)
Notes payable and lines of credit		(37,200,851	)
Othe liabilities		(962,553	)
Net liabilities in liquidation		(8,791,012	)

~~July~~The ~~17,~~accompanying ~~2024~~notes are an integral part of these consolidated financial statements.

F-2

NATURALSHRIMP INCORPORATED AND SUBSIDIARIES

CONSOLIDATED BALANCE ~~SHEETS~~SHEET

	March 31, 2024			March 31, 2023
	As of
ASSETS
	March 30, 2025
Current assets
ASSETS
Cash	$	115,525		$	216,465
Current assets
Accounts receivable		27,450			17,325
Cash	$	101,969
Inventory		68,510			25,725
Accounts receivable		1,415
Prepaid expenses		169,650			286,593
Inventory		31,001
Deferred offering costs		-			1,336,263
Prepaid expenses		161,449
Total current assets		~~381~~295,~~135~~834			~~1,882,371~~
Fixed assets, net		1311,~~301~~418,~~245~~724			~~15,043,715~~
Other assets
Construction-in-process		-			25,130
Patents, net		5,488,500
Patents, net		5,878,500			6,268,500
License Agreement, net		6,982,376
License Agreement, net		8,062,376			9,142,376
Right of Use asset		65,830
Right of Use asset		73,449			204,243
Deposits		20,500
Deposits		20,633			20,633
Total other assets		12,557,206
Total other assets		14,034,958			15,660,882
Total assets	$	24,271,764
Total assets	$	27,717,338		$	32,586,968
LIABILITIES, MEZZANINE AND STOCKHOLDERS’ DEFICIT
LIABILITIES, MEZZANINE AND STOCKHOLDERS’ DEFICIT
Current liabilities
Current liabilities
Accounts payable	$	2,861,065
Accounts payable	$	3,495,689		$	3,510,206
Accrued interest		133,050
Accrued interest		107,435			923,387
Accrued interest - related parties		296,589
Accrued interest - related parties		254,593			219,542
Accrued interest		296,589
Accrued interest		254,593			219,542
Other accrued expenses		1,745,237
Other accrued expenses		1,743,799			1,314,961
Accrued expenses - related parties		1,773,831
Accrued expenses - related parties		1,116,107			400,306
Short-term Note and Lines of credit		2,681,013
Short-term note and lines of credit		19,817			19,817
Notes payable		460,622
Notes payable		553,322			671,100
Restructured Senior note payable		30,091,495
Restructured Senior note payable		27,120,000			-
Restructured August note payable		3,047,309
Restructured August note payable		2,640,000			2,400,000
Notes payable - related parties		920,412
Notes payable - related parties		880,412			740,412
Notes payable		920,412
Notes payable		880,412			740,412
Dividends payable		933,993
Dividends payable		544,800			579,248
Warrant liability		-
Warrant liability		24,000			355,000
Lease Liability, current		28,560
Lease liability, current		28,560			87,804
Total current liabilities		44,973,176
Total current liabilities		38,528,534			11,221,783
Lease Liability, non-current		19,342
Restructured Senior note payable		-			21,290,000
Total liabilities		44,992,518
Note payable, less current maturities		-			23,604
Commitments and contingencies (Note 11)		-
Lease liability, non-current		43,325			125,189
Series E Redeemable Convertible Preferred stock, $0.0001 par value, 10,000 shares authorized, 1,571 and 1,656 shares issued and outstanding at March 30, 2025 and March 31, 2024, respectively		1,886,225
Total liabilities		38,571,859			32,660,576
Series F Redeemable Convertible Preferred stock, $0.0001 par value, 750,000 shares authorized, 750,000 shares issued and outstanding at March 30, 2025 and March 31, 2024, respectively		43,612,000
Commitments and contingencies (Note 13)		-			-
Series G Redeemable Convertible Preferred stock, $0.0001 par value, 10,000 shares authorized, 745 and 445 shares issued and outstanding at March 30, 2025 and March 31, 2024, respectively		861,792
Series E Redeemable Convertible Preferred stock, $0.0001 par value, 10,000 shares authorized, 1,656 and 1,670 shares issued and outstanding at March 31, 2024 and March 31, 2023, respectively		1,977,900			2,003,557
Temporary equity, value		861,792
Series F Redeemable Convertible Preferred stock, $0.0001 par value, 750,000 shares authorized, 750,000 shares issued and outstanding at March 31, 2024 and March 31, 2023, respectively		43,612,000			43,612,000
Stockholders’ deficit
Series G Redeemable Convertible Preferred stock, $0.0001 par value, 10,000 shares authorized, 145 and 0 shares issued and outstanding at March 31, 2024 and March 31, 2023, respectively		432,000			-
Series A Convertible Preferred stock, $0.0001 par value, 5,000,000 shares authorized, 5,000,000 shares issued and outstanding at March 30, 2025 and March 31, 2024, respectively		500
Temporary equity, value		432,000			-
Common stock, $0.0001 par value, 1,400,000,000 shares authorized, 1,277,546,746 and 1,116,482,063 shares issued and outstanding at March 30, 2025 and March 31, 2024, respectively		127,818
Stockholders’ deficit
Additional paid in capital		127,504,311
Series A Convertible Preferred stock, $0.0001 par value, 5,000,000 shares authorized, 5,000,000 shares issued and outstanding at March 31, 2024 and March 31, 2023, respectively		500			500
Stock to be issued		390,024
Common stock, $0.0001 par value, 1,400,000,000 shares authorized, 1,116,482,063 and 803,123,748 shares issued and outstanding at March 31, 2024 and March 31, 2023, respectively		111,712			80,377
Subscription receivable		(56,250	)
Additional paid in capital		126,468,749			121,156,733
Accumulated deficit		(195,047,174	)
Stock to be issued		390,024			662,767
Total stockholders’ deficit		(67,080,771	)
Subscription receivable		(56,250	)		(56,250	)
Total liabilities, mezzanine and stockholders’ deficit	$	24,271,764
Accumulated deficit		(183,791,156	)		(167,533,292	)
Total stockholders’ deficit		(56,876,421	)		(45,689,165	)
Total liabilities, mezzanine and stockholders’ deficit	$	27,717,338		$	32,586,968

The accompanying notes are an integral part of these consolidated financial statements.

F-3

NATURALSHRIMP INCORPORATED AND SUBSIDIARIES

CONSOLIDATED ~~STATEMENTS~~STATEMENT OF OPERATIONS

	For Years Ended
	March 30, 2025
	March 31, 2024			March 31, 2023
	Period Ended
Sales	$	446,301		$	238,685
	March 30, 2025
Cost of sales		125,695			200,853
Sales	$	202,817
Net revenue		320,606			37,832
Cost of sales		138,890
Operating expenses:
Net revenue		63,927
General and administrative		6,879,879			5,923,695
Operating expenses:
Research and development		-			190,855
General and administrative		3,406,189
Facility operations		~~772~~383,~~196~~829			~~1,936,296~~
Depreciation		1,~~737~~725,~~825~~480			~~1,795,427~~
Amortization		1,470,000			~~1,470,000~~
Total operating expenses		106,~~859~~985,~~900~~498			~~11,316,273~~
Net loss from operations		(106,~~539~~921,~~294~~571	)		~~(11,278,441~~	)
Other income (expense):
Interest expense		(73363,~~924~~688	)		~~(2,273,353~~	)
Interest expense - related parties		(3541,~~051~~996	)		~~(16,022~~	)
Interest expense		(3541,~~051~~996	)		~~(16,022~~	)
Amortization of debt discount		~~(56,868~~-	)		~~(5,019,883~~	)
Change in fair value of derivative liability		-			811,000
Change in fair value of warrant liability		24,000
Change in fair value of warrant liability		331,000			3,568,000
Change in fair value of restructured notes payable		(3,463,804	)
Change in fair value of restructured notes payable		(5,162,366	)		(2,842,132	)
Extension fee		-
Loss due to fire		-			(869,379	)
Gain on termination of lease		-
Gain on extinguishment of debt		-			2,383,088
Gain on sale of machinery and equipment		39,330
Extension fee		(190,000	)		(575,100	)
Total other income (expense), net		(3,806,158	)
Gain on settlement of accrued expenses		-			124,202
Income (loss) before income taxes		(10,727,729	)
Gain on termination of lease		32,375			-
Provision for income taxes		-
Gain on sale of machinery and equipment		91,717			-
Net loss		(10,727,729	)
Total other expense, net		(5,063,117	)		(4,709,579	)
Less net loss attributable to non-controlling interest		-
Loss before income taxes		(15,602,411	)		(15,988,020	)
Net loss attributable to NaturalShrimp Inc.		(10,727,729	)
Provision for income taxes		-			-
Accretion on Preferred shares		(180,884	)
Net loss		(15,602,411	)		(15,988,020	)
Dividends		(300,388	)
Amortization of beneficial conversion feature on Preferred shares		-			(212,048	)
Net loss available for common stockholders	$	(11,209,001	)
Accretion on Preferred shares		(65,900	)		(755,333	)
Loss per share (Basic and Diluted)	$	(0.01	)
Dividends		(589,553	)		(541,868	)
WEIGHTED AVERAGE SHARES OUTSTANDING (Basic and Diluted)		1,236,795,030
Net loss available for common stockholders	$	(16,257,864	)	$	(17,497,269	)
Loss per share (Basic and Diluted)	$	(0.02	)	$	(0.02	)
WEIGHTED AVERAGE SHARES OUTSTANDING (Basic and Diluted)		872,850,853			748,525,497

The accompanying notes are an integral part of these consolidated financial statements.

F-4

NATURALSHRIMP INCORPORATED AND SUBSIDIARIES

CONSOLIDATED ~~STATEMENTS~~ STATEMENT OF CHANGES IN STOCKHOLDERS’ DEFICIT

	Shares		Amount		Shares		Amount		Capital		issued			receivable			deficit			deficit
	Series A Preferred stock				Common stock				Additional paid in		Stock to be			Subscription			Accumulated			Total stockholders’
	Shares		Amount		Shares		Amount		Capital		issued			receivable			deficit			deficit
Balance March 31, 2022		5,000,000	$	500		674,364,124	$	67,500	$	96,701,607	$	20,132,650		$	-		$	150,036,023		$	(33,133,765	)
Net loss		-		-		-		-		-		-			-			(15,988,020	)		(15,988,020	)
Balance March 31, 2023		5,000,000	$	500		803,123,748	$	80,377	$	121,156,733	$	662,767		$	(56,250	)	$	(167,533,292	)		(45,689,165	)
Balance		5,000,000	$	500		803,123,748	$	80,377	$	121,156,733	$	662,767		$	(56,250	)	$	(167,533,292	)		(45,689,165	)
Issuance of common shares under financing agreement		-				217,655,635		21,765		3,146,943		-			-			-			3,168,708
Shares issued upon exchange of Partitioned Note		-				30,000,000		3,000		457,000		-			-			-			460,000
Conversion of Series E Preferred stock to common stock		-				23,989,570		2,399		825,601		-			-			(350,825	)		477,175
Accretion of Series E Preferred stock		-				-		-		-		-			-			(27,900	)		(27,900	)
Accretion on Series G Preferred stock		-				-		-		-		-			-			(38,000	)		(38,000	)
Dividends payable on Preferred stock		-				-		-		-		-			-			(238,728	)		(238,728	)
Common stock issued to consultants		-				40,100,000		4,010		600,690		-			-			-			604,700
Common stock issued to employees		-				750,000		75		9,125		-			-			-			9,200
Common stock issued for legal settlement to NSH shareholders		-				863,110		86		272,657		(272,743	)		-			-			-
Net loss		-		-		-		-		-		-			-			(15,602,411	)		(15,602,411	)
Balance March 31, 2024		5,000,000	$	500		1,116,482,063	$	111,712	$	126,468,749	$	390,024		$	(56,250	)	$	(183,791,156	)		(56,876,421	)
Balance		5,000,000	$	500		1,116,482,063	$	111,712	$	126,468,749	$	390,024		$	(56,250	)	$	(183,791,156	)		(56,876,421	)
Issuance of common shares under financing agreement						141,064,683		14,106		847,562		-			-			-			861,668
Shares issued upon exchange of Partitioned Note						20,000,000		2,000		188,000		-			-			-			190,000
Accretion of Series E Preferred Shares						-		-		-		-			-			(58,300	)		(58,300	)
Accretion on Series G Preferred shares						-		-		-		-			-			(171,584	)		(171,584	)
Dividends payable on Preferred Shares						-		-		-		-			-			(298,405	)		(298,405	)
Net loss				-				-		-		-			-			(10,727,729	)		(10,727,729	)
Balance March 30, 2025		5,000,000	$	500		1,277,546,746	$	127,818	$	127,504,311	$	390,024		$	(56,250	)	$	(195,047,174	)		(67,080,771	)
Balance		5,000,000	$	500		1,277,546,746	$	127,818	$	127,504,311	$	390,024		$	(56,250	)	$	(195,047,174	)		(67,080,771	)

The accompanying notes are an integral part of these consolidated financial statements.

F-5

NATURALSHRIMP INCORPORATED AND SUBSIDIARIES

CONSOLIDATED ~~STATEMENTS~~STATEMENT OF CASH FLOWS

	For Years Ended
	March 30, 2025
	March 31, 2024			March 31, 2023
	Period Ended
CASH FLOWS FROM OPERATING ACTIVITIES
	March 30, 2025
Net loss	$	(15,602,411	)	$	(15,988,020	)
CASH FLOWS FROM OPERATING ACTIVITIES
Adjustments to reconcile net loss to net cash used in operating activities
Net loss	$	(10,727,729	)
Depreciation expense		1,737,825			1,795,427
Adjustments to reconcile net loss to net cash used in operating activities
Amortization expense		1,470,000			1,470,000
Depreciation expense		1,725,480
Amortization of debt discount		56,868			5,019,883
Amortization expense		1,470,000
Change in fair value of derivative liability		-			(811,000	)
Amortization of debt discount		-
Change in fair value of warrant liability		(~~331~~24,000	)		~~(3,568,000~~	)
Change in fair value of restructured notes payable		53,~~162~~463,~~366~~804			~~2,842,132~~
Extension fee		~~125,000~~-			~~575,100~~
Financing costs		~~136~~7,~~750~~300			-
Gain on extinguishment of debt		-			(2,383,088	)
Gain on sale of machinery and equipment		39,330
Gain on sale of machinery and equipment		(91,717	)		-
Shares issued for services		-
Shares issued for services		613,900			99,124
Amortization of operating lease right-of-use assets		68,690
Amortization of operating lease right-of-use assets		38,865			78,510
Gain on termination of lease		-
Gain on termination of lease		(32,375	)		-
Issuance of Series G Preferred Stock for services		-
Issuance of Series G Preferred Stock for services		200,000
Changes in operating assets and liabilities:
Loss due to fire		-			869,379
Accounts receivable		26,035
Changes in operating assets and liabilities:
Inventory		37,509
Accounts receivable		(10,125	)		(2,940	)
Prepaid expenses and other current assets		8,199
Inventory		(42,785	)		43,445
Deferred offering costs		-
Prepaid expenses		116,943			1,224,953
Accounts payable		(603,879	)
Deferred offering costs		1,336,263			(1,336,263	)
Other accrued expenses		1,438
Accounts payable		(14,074	)		712,169
Accrued expenses - related parties		657,724
Other accrued expenses		428,838			1,107,543
Accrued interest		-
Accrued expenses - related parties		715,801			200,306
Accrued interest - related parties		41,996
Accrued interest		91,682			2,249,932
Operating lease liabilities		(85,054	)
Accrued interest - related parties		35,051			16,022
Cash used in operating activities		(3,893,157	)
Operating lease liabilities		(16,804	)		(73,260	)
CASH FLOWS FROM INVESTING ACTIVITIES
Cash used in operating activities		(3,875,139	)		(5,858,646	)
Cash paid for fixed assets		-
CASH FLOWS FROM INVESTING ACTIVITIES
Cash received for sale of machinery and equipment		117,712
Cash paid for fixed assets		(42,510	)		(2,548,447	)
Cash used in investing activities		117,712
Cash received for sale of machinery and equipment		164,000			700,000
CASH FLOWS FROM FINANCING ACTIVITIES
Cash provided by (used in) investing activities		121,490			(1,848,447	)
Proceeds from short-term promissory note and lines of credit		2,661,196
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from sale of stock		760,693
Payments of notes payable		-			(96,000	)
Proceeds from promissory note, related parties		40,000
Payments on notes payable, related party		-			(5,000	)
Proceeds from sale of Series E Preferred Shares		-
Repayment of short-term promissory note and lines of credit		-			(227	)
Proceeds from sale of Series G Preferred Shares		300,000
Proceeds from sale of stock		3,168,708			3,075,745
Cash provided by financing activities		3,761,889
Proceeds from promissory note		-			1,465,000
NET CHANGE IN CASH		(13,556	)
Proceeds from promissory note, related parties		140,000			250,000
CASH AT BEGINNING OF PERIOD		115,525
Proceeds from convertible debentures, receipt from escrow		-			1,500,000
CASH AT END OF PERIOD	$	101,969
Escrow account in relation to the proceeds from promissory notes		-			-
INTEREST PAID	$	616
Proceeds from sale of Series E Preferred Shares		150,000			-
Supplemental Disclosure of Non-Cash Investing and Financing Activities:
Proceeds from sale of Series G Preferred Shares		194,000			-
Construction in process transferred to fixed assets	$	-
Cash provided by financing activities		3,652,708			6,189,518
Shares issued upon conversion of Preferred stock	$	-
NET CHANGE IN CASH		(100,941	)		(1,517,575	)
Shares issued upon exchange of Partitioned Note	$	90,000
CASH AT BEGINNING OF YEAR		216,465			1,734,040
Dividends on Series E Preferred stock	$	-
CASH AT END OF YEAR	$	115,524		$	216,465
Dividends in kind issued	$	300,388
INTEREST PAID	$	17,758		$	7,472
Shares issued/to be issued, for legal settlement	$	-
Supplemental Disclosure of Non-Cash Investing and Financing Activities:
Construction in process transferred to fixed assets	$	25,130		$	1,061,971
Shares issued upon conversion of Preferred stock	$	477,175			1,668,000
Shares issued upon exchange of Partitioned Note	$	460,000
Dividends on Series E Preferred stock	$	238,728		$	-
Dividends in kind issued	$	516,000		$	-
Shares issued/to be issued, for legal settlement	$	272,743		$	-

The accompanying notes are an integral part of these consolidated financial statements.

F-6

NATURALSHRIMP INCORPORATED AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

FOR THE FISCAL YEARS ENDED MARCH 31, 2024 AND 2023

NOTE 1 – NATURE OF THE ORGANIZATION AND BUSINESS

Nature of the Business

NaturalShrimp Incorporated (“NaturalShrimp” or the “Company”), a Nevada corporation, is a biotechnology company and has developed a proprietary technology that allows it to grow Pacific White shrimp (Litopenaeus vannamei, formerly Penaeus vannamei) in an ecologically controlled, high-density, low-cost environment, and in fully contained and independent production facilities. The Company’s system uses technology which allows it to produce a naturally-grown shrimp “crop” weekly and accomplishes this without the use of antibiotics or toxic chemicals. The Company has developed several proprietary technology assets, including a knowledge base that allows it to produce commercial quantities of shrimp in a closed system with a computer monitoring system that automates, monitors and maintains proper levels of oxygen, salinity and temperature for optimal shrimp production. ~~The Company’s production facilities are located in La Coste, Texas and Webster City, Iowa.~~

The Company has three wholly-owned subsidiaries including NaturalShrimp USA Corporation, (“NSC”) and NaturalShrimp Global, Inc. (“NS Global”) and Natural Aquatic Systems, Inc. (“NAS”), and owns 51% of NaturalShrimp/Hydrenesis LLC, a Texas limited liability company.

~~Going~~Receivership ~~Concern~~and Liquidation

~~The~~On ~~accompanying~~September ~~consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”)~~4, ~~assuming the Company will continue as a going concern~~2024, ~~which~~Streeterville ~~contemplates the realization of assets and satisfaction of liabilities in the normal course of business. For the year ended March 31~~Capital, ~~2024~~LLC, ~~the Company had~~ a ~~net loss~~Utah ~~available~~limited ~~for~~liability ~~common stockholders of approximately $16~~company,~~258,000.~~ Asand ofBucktown ~~March 31~~Capital, ~~2024~~LLC, ~~the~~a ~~Company~~Utah ~~had~~limited ~~an accumulated deficit of~~liability ~~approximately~~company ~~$183~~(collectively,~~791,000~~ ~~and a working capital deficit of approximately $38~~“Lenders”),~~147,000.~~ ~~These~~filed ~~factors raise substantial doubt about the Company’s ability to continue as~~ a ~~going~~Verified ~~concern,~~Emergency ~~within~~Motion ~~one~~for ~~year~~Appointment ~~from the issuance date~~ of ~~this~~Receiver ~~filing. The Company’s ability to continue as a going concern is dependent on its ability to raise~~ (the ~~required additional capital or debt financing to meet short and~~“Motion”) ~~long-term~~under ~~operating~~Civil ~~requirements~~Case No. ~~During the year ended March 31~~240907138, ~~2024,~~in the ~~Company~~District ~~received~~Court ~~net cash proceeds~~ of ~~approximately~~Salt ~~$3,169,000 from~~Lake ~~the sale of common shares~~County, ~~$344~~Utah,~~000~~ ~~from~~against ~~the~~NaturalShrimp, ~~sale~~Inc. ~~of preferred shares~~ (~~See Note 8~~“NaturalShrimp”)~~, and $140,000 proceeds from the issuance of promissory notes, related parties~~.

~~Management believes that private placements of equity capital will be needed to fund the Company’s long-term operating requirements.~~ The ~~Company~~ ~~may~~Motion ~~also~~alleges, ~~encounter~~among ~~business~~other ~~endeavors~~things, that ~~require~~NaturalShrimp ~~significant~~has ~~cash~~defaulted ~~commitments~~under ~~or unanticipated problems or expenses that could result in a requirement for additional cash. If~~ the ~~Company~~terms ~~raises additional funds through the issuance~~ of ~~equity, the percentage ownership of~~ its ~~current~~loan ~~shareholders~~agreements ~~could~~with bethe ~~reduced, and such securities might have rights, preferences or privileges senior to its common stock~~Lenders. ~~Additional~~ ~~financing~~The ~~may not be available upon acceptable terms, or at all. If adequate funds are not available or are not available~~Motion onsought ~~acceptable terms,~~ the ~~Company~~appointment ~~may~~of ~~not~~a beReceiver ~~able~~ to immediately take ~~advantage~~control of ~~prospective~~NaturalShrimp’s ~~business~~assets ~~endeavors or opportunities, which could significantly and materially restrict its operations. The Company continues~~ to ~~pursue~~preserve ~~external financing alternatives to improve its working capital position. If~~ the ~~Company is unable to obtain the necessary capital, the Company may be unable to develop its facilities and enter into production~~same.

On November 20, 2024, the Lenders and NaturalShrimp filed a Verified Amended and Stipulated Emergency Motion for Immediate Appointment of a Receiver in the Receivership Case.

F-7

NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of Presentation

The consolidated financial statements have been prepared in accordance with United States generally accepted accounting principles (“US GAAP”). The Company has presented going concern financial statements as of March 30, 2025 and for the period from April 1, 2024 through March 30, 2025. The comparative period has not been presented as the Company does not believe it would be required based on the guidance outlined in ASC 205-30, Liquidation Basis of Accounting. As of March 31, 2025, which is the (convenience) date that the Company’s liquidation became imminent, the Company has presented its financial statements under the liquidation basis of accounting. As such, the Company has presented a consolidated statement of net liabilities in liquidation as of March 31, 2025. As there was only a single day between the time that liquidation became imminent and the end of the reporting period, no consolidated statement of changes in net liabilities in liquidation has been presented.

Consolidation

The consolidated financial statements include the accounts of NaturalShrimp Incorporated and its wholly-owned subsidiaries, NaturalShrimp USA Corporation, NaturalShrimp Global and NAS, and the 51% ownership of NaturalShrimp/Hydrenesis LLC. All significant intercompany accounts and transactions have been eliminated in consolidation.

Use of Estimates

Preparing financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Liquidation Basis of Accounting

In accordance with ASC 205-30, Liquidation Basis of Accounting, the Company will prepare its financial statements using the liquidation basis of accounting when liquidation is imminent. Liquidation is considered imminent when either of the following occurs-i) A plan for liquidation has been approved by the person or persons with the authority to make such a plan effective, and the likelihood is remote that either execution of the plan will be blocked by other parties or the entity will return from liquidation and ii) A plan for liquidation is imposed by other forces, and the likelihood is remote that the entity will return from liquidation.

When using the liquidation basis of accounting, the Company will i) recognize other items that it previously had not recognized but it expects to sell in liquidation or use to settle liabilities ii) accrue costs and income that it expects to incur or earn through the end of its liquidation if and when it has a reasonable basis for estimation iii) measure its assets to reflect the estimated amount of cash or other consideration that it expects to collect in settling or disposing of those assets in carrying out its plan for liquidation and iv) measure its liabilities in accordance with the measurement provision of other topics that it would otherwise apply to those liabilities.

Basic and Diluted Earnings/Loss per Common Share

Basic and diluted earnings or loss per share (“EPS”) amounts in the consolidated financial statements are computed in accordance with Accounting Standards Codification (“ASC”) 260 – 10 “Earnings per Share”, which establishes the requirements for presenting EPS. Basic EPS is based on the weighted average number of shares of common stock outstanding. Diluted EPS is based on the weighted average number of shares of common stock outstanding and dilutive common stock equivalents. Basic EPS is computed by dividing net income or loss available to common stockholders (numerator) by the weighted average number of shares of common stock outstanding (denominator) during the period. AsDiluted ofEPS ~~March~~is ~~31,~~not ~~2024, the~~presented ~~Company~~in ~~had~~periods ~~5,000,000~~where ~~Series A Convertible Preferred Stock which would be converted at~~ the ~~holder’s~~Company ~~option~~recognizes into approximately 1,116,482,000 underlying common shares, 1,656 of Series E Redeemable Convertible Preferred shares whose approximately 5,678,000 underlying shares are convertible at the investors’ option at a ~~fixed~~net ~~conversion~~loss price of $0.35, 750,000 shares of Series F Preferred Stock which would be converted at the holders’ option into approximately 267,836,000 underlying common shares, 445 of Series G Redeemable Convertible Preferred shares whose approximately 66,750,000 underlying shares are convertible at the investors’ option at a conversion price based on the discounted market price of $0.008 and 18,573,116 warrants outstanding which were not included in the calculation of diluted EPS as ~~their~~it ~~effect~~ would be considered anti-dilutive. ~~As of March 31~~Further, ~~2023,~~preferred ~~the~~dividends Company had 5,000,000 Series A Convertible Preferred Stock which would be converted at the holder’s option into approximately 803,124,000 underlying common shares, 1,500 of Series E Redeemable Convertible Preferred shares whose approximately 5,143,000 underlying shares are ~~convertible~~subtracted atfrom ~~the~~net ~~investors’~~income ~~option~~(loss) atin ~~a fixed conversion price of $0.35 and 170 shares of Series E Redeemable Convertible Preferred shares whose approximately 3,192,000 underlying shares are convertible at~~ the ~~investors’~~period ~~option~~in atarriving ~~conversion price of 90% of the average of the two lowest market prices over the last 10 days, 750,000 shares of Series F Preferred Stock which would be converted~~ at ~~the~~net ~~holders’~~income ~~option~~(loss) ~~into approximately~~available ~~192,750,000~~to ~~underlying~~ common ~~shares, and 18,573,116 warrants outstanding which were not included in the calculation of diluted EPS as their effect would be anti-dilutive~~stockholders.

Fair Value Measurements

ASC Topic 820, “Fair Value Measurement”, requires that certain financial instruments be recognized at their fair values at our balance sheet dates. However, other financial instruments, such as debt obligations, are not required to be recognized at their fair values, but GAAP provides an option to elect fair value accounting for these instruments. GAAP requires the disclosure of the fair values of all financial instruments, regardless of whether they are recognized at their fair values or carrying amounts in our balance sheets. For financial instruments recognized at fair value, GAAP requires the disclosure of their fair values by type of instrument, along with other information, including changes in the fair values of certain financial instruments recognized in income or other comprehensive income. For financial instruments not recognized at fair value, the disclosure of their fair values is provided below under Financial Instruments.

Nonfinancial assets, such as property, plant and equipment, and nonfinancial liabilities are recognized at their carrying amounts in the Company’s balance sheets. GAAP does not permit nonfinancial assets and liabilities to be remeasured at their fair values. However, GAAP requires the remeasurement of such assets and liabilities to their fair values upon the occurrence of certain events, such as the impairment of property, plant and equipment. In addition, if such an event occurs, GAAP requires the disclosure of the fair value of the asset or liability along with other information, including the gain or loss recognized in income in the period the remeasurement occurred.

F-8

The Company did not have any Level 1 or Level 2 assets and liabilities as of March 3130, ~~2024~~2025 and March 31, ~~2023~~2024.

The ~~derivative and~~ warrant liabilities, and ~~fair value option on~~ Restructured notes are considered Level 3 fair value measurements.

The following is a summary of activity of Level 3 liabilities during the ~~years~~periods ended March 3130, ~~2024~~2025 and ~~2023~~March 31, 2024:

Warrant liability

	March 31, 2024			March 31, 2023
	March 30, 2025
Warrant liability balance at beginning of year	$	~~355~~24,000		$	~~3,923,000~~
Change in fair value		(~~331~~24,000	)		~~(3,568,000~~	)
Balance at end of year	$	~~24,000~~-		$	~~355,000~~

AtDuring the period ended March 3130, ~~2024~~2025, the ~~fair~~Company’s ~~value~~shares ofceased ~~the~~being ~~warrant~~quoted ~~liability~~on ~~was~~the ~~estimated~~Over ~~using~~the aCounter ~~Black~~(“OTC”) ~~Sholes~~market ~~option pricing model with the following~~and ~~weighted-average~~technically ~~inputs:~~had ~~the~~a ~~price~~fair ofvalue ~~the Company’s common stock~~ of $0.~~011; a~~ ~~risk-free~~As ~~interest rate ranging from 4.40% to 4.59%~~such, ~~and~~ ~~expected volatility of~~ the ~~Company’s~~warrants ~~common~~were ~~stock~~written ~~ranging~~down ~~from 124.8%~~ to ~~133~~$0.~~8% and the remaining terms of each warrant issuance.~~

At March 31, 2023, the fair value of the warrant liability was estimated using a Black Sholes option pricing model with the following weighted-average inputs: the price of the Company’s common stock of $0.05; a risk-free interest rate of 3.81% and expected volatility of the Company’s common stock ranging from 113.6% to 121.0% and the remaining terms of each warrant issuance.

Restructured August and Senior Notes Payable

	March 31, 2024			March 31, 2023
	March 30, 2025
Restructured notes payable fair value at beginning of year	$	2329,~~690~~760,000		$	-
Fair value of Promissory Notes upon Restructuring Agreement		-			~~20,847,867~~
Reclass of accrued interest		~~907,634~~-			-
Change in fair value		5,162,366			2,842,133
Note partition		(85,000	)
Restructured Notes Payable fair value at end of year	$	29,760,000		$	23,690,000
Change in fair value		3,463,804
Restructured Notes Payable fair value at end of year	$	33,138,804

F-9

On November 4, 2022, when the Company entered into a Restructuring Agreement for an Amended and Restated Secured Promissory Note for two of their outstanding debentures ~~(Note 6 and Note 7)~~, which were accounted for as debt extinguishment, the Company elected to recognize the new debt under ASC 825 fair value option. The fair value ~~for both periods~~ is based on the maturity dates, the interest of 12%, the 15% exit fee, the 2% appreciation fee in for an estimated period, and a 45% ~~and 40%~~ present value factor, ~~respectively~~ as of March 3130, ~~2024~~ ~~and March 31, 2023~~2025. In accordance with ASC 825, the Company chose to present the component for the accrued interest in the same line item on the accompanying consolidated balance sheet with the fair value option, and as of April 1, 2023, reclassed the accrued interest to not be presented as a separate line item. The notes were extinguished subsequent to the balance sheet date as part of the liquidation process.

Financial Instruments

The Company’s financial instruments include cash and cash equivalents, receivables, payables, and debt and are accounted for under the provisions of ASC Topic 825, “Financial Instruments”. The carrying amount of these financial instruments, with the exception of ~~discounted~~the restructured debt, as reflected in the consolidated balance sheets approximates fair value.

Cash and Cash Equivalents

For the purpose of the consolidated statements of cash flows, the Company considers all highly liquid instruments purchased with a maturity of three months or less to be cash equivalents. There were no cash equivalents as of March 31, ~~2024 and March 31, 2023~~2025.

Concentration of Credit Risk

The Company maintains cash balances at two financial institutions. Accounts at this institution are insured by the Federal Deposit Insurance Corporation (“FDIC”) up to $250,000. As of March 31, ~~2024 and 2023~~2025, the Company’s cash balance did not exceed FDIC coverage. The Company has not experienced any losses in such accounts and periodically evaluates the credit worthiness of the financial ~~institutions~~ institutions and has determined the credit exposure to be negligible.

Fixed Assets

Equipment is carried at historical value or cost and is depreciated using the straight-line method over the estimated useful lives of the related assets. Estimated useful lives are as follows:

SCHEDULE OF ESTIMATED USEFUL LIVES

Buildings			39 years
Machinery and Equipment			7 – 10 years
Vehicles			10 years
Furniture and Fixtures			3 – 10 years

Maintenance and repairs are charged to expense as incurred. At the time of retirement or other disposition of equipment, the cost and accumulated depreciation will be removed from the accounts and the resulting gain or loss, if any, will be reflected in operations.

Income Taxes

Deferred income tax assets and liabilities are computed for differences between the financial statement and tax basis of assets and liabilities that will result in taxable or deductible amounts in the future based on enacted tax laws and rates applicable to the periods in which the differences are expected to affect taxable income. Valuation allowances are established when necessary to reduce deferred tax assets to the amount expected to be realized. Income tax expense is the tax payable or refundable for the period plus or minus the change during the period in deferred tax assets and liabilities.

In addition, the Company’s management performs an evaluation of all uncertain income tax positions taken or expected to be taken in the course of preparing the Company’s income tax returns to determine whether the income tax positions meet a “more likely than not” standard of being sustained under examination by the applicable taxing authorities. This evaluation is required to be performed for all open tax years, as defined by the various statutes of limitations, for federal and state purposes.

F-10

Stock-Based Compensation

The Company accounts for stock-based compensation to employees and non-employees in accordance with ASC 718. “Stock-based Compensation to Employees” is measured at the grant date, based on the fair value of the award, and is recognized as expense over the requisite employee service period. The Company estimates the fair value of stock-based payments using the Black-Scholes option-pricing model for common stock options and warrants and the closing price of the Company’s common stock for common share issuances. Once the stock is issued the appropriate expense account is charged.

Intangible Assets

The Company has intangible assets, which were acquired in a patent acquisition, and license rights agreements. The Company’s patents represent definite lived intangible assets and will be amortized over the twenty-~~year~~year20 duration of the patent, unless at some point the useful life is determined to be less than the protected life of the patent. The Company’s license rights will be amortized on a straight-line basis over the expected term of the agreements of ten years.

~~The~~On May 19, 2021, the Company ~~periodically~~entered ~~evaluates~~into a Patents Purchase Agreement (the ~~remaining~~“Patents ~~useful~~Agreement”) ~~lives~~with ofF&T ~~its~~Water ~~finite-lived~~Solutions, LLC ~~intangible~~(“F&T”). ~~assets~~The toCompany ~~determine~~and ~~whether~~F&T ~~events~~had previously jointly developed and ~~circumstances warrant~~patented a ~~revision~~water totreatment technology used or useful in growing aquatic species in re-circulating and enclosed environments (the ~~remaining~~“Patent”) ~~period~~with ofeach ~~amortization~~party owning a fifty percent (50%) interest. AsUpon the closing of the Patents Agreement, the Company purchased F&T’s interest in the Patent, F&T’s 100% interest in a second patent associated with the first Patent issued to F&T in March 312018, ~~2024~~and all other intellectual property rights owned by F&T for a purchase price of $2,000,000 in cash and ~~2023~~issue 9,900,990 shares of the Company’s ~~believes~~common stock ~~the~~with ~~carrying~~a market value of ~~the~~ ~~intangible~~$0.505 ~~assets~~per ~~are~~share ~~still~~for ~~recoverable~~a total fair value of $5,000,000, ~~and~~for ~~there~~a istotal noacquisition ~~impairment~~price toof be$7,000,000. ~~recognized~~Amortization expense was $390,000 for the period ended March 30, 2025.

Patent Agreement

On May 19, 2021, the Company entered into a Patents Purchase Agreement (the “Patents Agreement”) with F&T Water Solutions, LLC (“F&T”). The Company and F&T had previously jointly developed and patented a water treatment technology used or useful in growing aquatic species in re-circulating and enclosed environments (the “Patent”) with each party owning a fifty percent (50%) interest. Upon the closing of the Patents Agreement, the Company purchased F&T’s interest in the Patent, F&T’s 100% interest in a second patent associated with the first Patent issued to F&T in March 2018, and all other intellectual property rights owned by F&T for a purchase price of $2,000,000 in cash and issue 9,900,990 shares of the Company’s common stock with a market value of $0.505 per share for a total fair value of $5,000,000, for a total acquisition price of $7,000,000. Amortization over the next five years is expected to be $390,000 per year, for a total of $1,950,000. Amortization expense was $390,000 and $390,000 for the years ended March 31, 2024 and 2023.

License Agreements

On August 25, 2021, the Company, through its 100% owned subsidiary NAS, entered into an Equipment Rights Agreements with Hydrenesis-Delta Systems, LLC (“Hydrenesis-Delta”) and a Technology Rights Agreement (“Rights”), in a sub-license agreement with Hydrenesis Aquaculture LLC (“Hydrenesis-Aqua”). Both Rights agreements are for a 10-year term, which shall automatically renew for ten-year successive terms. The agreements accord the exclusive rights to purchase or distribute the technology, or buy or rent the equipment, which is the primary business and revenue stream generated from indoor aquaculture farming of any species in the territory, which will be named the NSI Technologies and Equipment (“NSI Technologies”).

The terms of the Agreements set forth that NAS will pay Hydrenesis 12.5% royalty fees. The royalties are calculated per all customer or sub-license revenue generated by NAS, NSI or any affiliate, from the sale or rental of either the Technologies or Hydrenesis Equipment, based on gross revenue less returns, rebates and sales taxes. There are sales milestones for exclusivity, whereby if NAS fails to achieve a sales milestone starting in Year 3, the exclusivity rights in both of the Rights agreements shall revert to non-exclusive rights. To maintain the exclusivity for the subsequent year, the Company may pay the amount of the royalty fees that would have been due if the Sales Milestones had been met in the current year.

The Sales Milestones are:

SCHEDULE OF SALES MILESTONE

Year 3	$	250,000 Royalty
Year 4	$	375,000 Royalty
Year 4	$	375,000 Royalty
Year 5	$	625,000 Royalty
Year 5	$	625,000 Royalty
Year 6	$	875,000 Royalty
Year 6	$	875,000 Royalty
All subsequent years	$	1,000,000 Royalty
All subsequent years	$	1,000,000 Royalty

For the ~~years~~period ended March 3130, ~~2024 and 2023~~2025, the amortization of the Rights was $1,080,000 ~~and $1,080,000, respectively~~. ~~The amortization is approximately $1,080,000 per year, and approximately $5,400,000 over the next five years.~~

Impairment of Long-lived Assets

Commitments and Contingencies

Certain conditions may exist as of the date the consolidated financial statements are issued, which may result in a loss to the Company but which will only be resolved when one or more future events occur or fail to occur. The Company’s management and its legal counsel assess such contingent liabilities, and such assessment inherently involves an exercise of judgment. In assessing loss contingencies related to legal proceedings that are pending against the Company or unasserted claims that may result in such proceedings, the Company’s legal counsel evaluates the perceived merits of any legal proceedings or unasserted claims as well as the perceived merits of the amount of relief sought or expected to be sought therein.

If the assessment of a contingency indicates that it is probable that a material loss has been incurred and the amount of the liability can be estimated, then the estimated liability would be accrued in the Company’s consolidated financial statements. If the assessment indicates that a potentially material loss contingency is not probable, but is reasonably possible, or is probable but cannot be estimated, then the nature of the contingent liability, together with an estimate of the range of possible loss if determinable and material, would be disclosed.

Loss contingencies considered remote are generally not disclosed unless they involve guarantees, in which case the nature of the guarantee would be disclosed.

Revenue Recognition

The Company recognizes revenue in accordance with ASC 606, Revenue from Contracts with Customers, as such, the Company records revenue when its customers obtain control of the promised goods or services in an amount that reflects the consideration which the Company expects to receive in exchange for those goods or services. The Company will sell primarily to food service distributors, as well as to wholesalers, retail establishments and seafood distributors.

F-11

To determine revenue recognition for the arrangements that the Company determines are within the scope of Topic 606, the Company performs the following five steps: (1) identify the contract(s) with a customer by receipt of purchase orders and confirmations sent by the Company which includes a required line of credit approval process, (2) identify the performance obligations in the contract which includes shipment of goods to the customer FOB shipping point or destination, (3) determine the transaction price which initiates with the purchase order received from the customer and confirmation sent by the Company and will include discounts and allowances by customer if any, (4) allocate the transaction price to the performance obligations in the contract which is the shipment of the goods to the customer and transaction price determined in step 3 above and (5) recognize revenue when (or as) the entity satisfies a performance obligation which is when the Company transfers control of the goods to the customers by shipment or delivery of the products.

In the future, if the Company has customers with long-term contracts for multiple shipments of live shrimp, the Company will elect the right-to-invoice practical expedient and any variable consideration estimate will be excluded from the transaction price and the revenue will be recognized directly when the goods are delivered.

SCHEDULE OF REVENUE RECOGNITION

	March 31, 2024		March 31, 2023
	March 30, 2025
	Years ended
	Period ended
	March 31, 2024		March 31, 2023
	March 30, 2025
Shrimp sales	$	~~146~~202,~~301~~817	$	~~238,685~~
Technology and equipment services		~~300,000~~-		—
Total revenues	$	~~446~~202,~~301~~817	$	~~238,685~~

On May 21, 2023, the Company entered into a six-month agreement with a company for the use of the NSI Technologies. Per the agreement, the customer is to pay a total of $300,000 comprised of an initial payment equal to $150,000 at execution of the contract and then $25,000 per month for the combined total of the Service Fee. As of March 31, 2024, the Company has received the total $300,000, comprised of the initial payment and $100,000 related to the monthly service fees which began September 1, 2023.

Recently Issued Accounting Standards

InAs ~~November~~the ~~2023,~~Company ~~the~~is ~~FASB~~currently ~~issued~~reporting ~~Accounting~~under ~~Standards~~the ~~Update~~liquidation ~~(“ASU”)~~basis ~~No.~~of ~~2023-07~~accounting, ~~“Segment~~it ~~Reporting~~does (Topic 280) Improvements to Reportable Segment Disclosures” which expands annual and interim disclosure requirements for reportable segments. The amendments require enhanced disclosure for certain segment items and required disclosure on how management uses reported measures to assess segment performance. The amendments do not ~~change~~believe ~~how~~that ~~segments~~there are ~~determined,~~any ~~aggregated,~~recently ~~or how thresholds are applied~~issued toaccounting ~~determine~~standards ~~reportable~~that ~~segments.~~would ~~The~~be ~~updated~~material ~~standard~~to isits ~~effective~~financial ~~for annual periods beginning in fiscal 2025 and interim periods beginning in the first quarter of fiscal 2026~~statements. ~~Early adoption is permitted. The Company is currently evaluating the effect of adopting this ASU.~~

In August 2020, the FASB issued ASU 2020-06, “Debt - Debt with Conversion and Other Options (Subtopic 470- 20) and Derivatives and Hedging - Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity” (“ASU 2020-06”), which simplifies the accounting for certain financial instruments with characteristics of liabilities and equity. This ASU (1) simplifies the accounting for convertible debt instruments and convertible preferred stock by removing the existing guidance in ASC 470-20, Debt: Debt with Conversion and Other Options, that requires entities to account for beneficial conversion features and cash conversion features in equity, separately from the host convertible debt or preferred stock; (2) revises the scope exception from derivative accounting in ASC 815-40 for freestanding financial instruments and embedded features that are both indexed to the issuer’s own stock and classified in stockholders’ equity, by removing certain criteria required for equity classification; and (3) revises the guidance in ASC 260, Earnings Per Share, to require entities to calculate diluted earnings per share (EPS) for convertible instruments by using the if-converted method. In addition, entities must presume share settlement for purposes of calculating diluted EPS when an instrument may be settled in cash or shares. For SEC filers, excluding smaller reporting companies, ASU 2020-06 is effective for fiscal years beginning after December 15, 2021 including interim periods within those fiscal years. Early adoption is permitted, but no earlier than fiscal years beginning after December 15, 2020. For all other entities, ASU 2020-06 is effective for fiscal years beginning after December 15, 2023, including interim periods within those fiscal years. Entities should adopt the guidance as of the beginning of the fiscal year of adoption and cannot adopt the guidance in an interim reporting period. The Company does not expect that ASU 2020-06 will have a material impact on its consolidated financial statements and related disclosures.

F-12

~~Management’s~~NOTE ~~Evaluation~~3 of– ~~Subsequent~~LIQUIDATION ~~Events~~BASIS OF ACCOUNTING

~~Management~~During September of 2024, Ampleo Turnaround and Restructuring, LLC was placed as the receiver over the Company’s ~~evaluates~~assets ~~events~~due ~~that~~to ~~have~~its significant ~~occurred~~outstanding ~~after~~debt. Subsequently, during February of 2025, the ~~balance~~receiver ~~sheet~~filed ~~date~~a motion to sell all of the Company’s assets to Streeterville and Bucktown Capital for an approximate credit bid of $35.7 million and $100,000 in cash. The motion was approved by the court (overseeing the motion) on March 3130, ~~2024~~2025 with title to the assets being transferred to the creditor on May 14, ~~through~~2025. The Company believes that it continued to function as a going concern until the date the motion to sell its assets was approved by the court at which time its liquidation became imminent. As such, in accordance with ASC 205-30, the ~~consolidated~~Company has presented going concern financial statements ~~were~~as ~~issued.~~of ~~Based~~March ~~upon~~30, 2025 and for the ~~review~~period from April 1, ~~other~~2024 through ~~than~~March ~~described~~30, 2025. Comparative periods have not been provided as the Company does not believe they would be required under ASC 205-30. Furthermore, in ~~Note~~accordance 14with –the ~~Subsequent~~ASC ~~Events~~subtopic, the Company ~~did~~has ~~not~~also ~~identify~~presented a consolidated statement of net liabilities in ~~any~~liquidation ~~recognized~~using ora ~~non-recognized~~convenience ~~subsequent~~date ~~events~~of ~~that~~March ~~would~~31, ~~have~~2025. ~~required~~The ~~adjustment~~statement orof ~~disclosure~~net liabilities in liquidation has been prepared using the liquidation basis of accounting. As there was only one day from the time that our liquidation became imminent and the end of the reporting period, no consolidated ~~financial~~statement ~~statements~~of changes in net liabilities in liquidation has been presented.

~~NOTE~~As 3part –of ~~FIXED~~the ~~ASSETS~~liquidation, the Company sold its revenue generating fixed assets and intangible assets on May 14, 2025 to two of its creditors (Streeterville and Buckstown) in exchange for the extinguishment of i) the restructured August and Senior notes ($33.1 million) and Buckstown line of credit ($2.7 million). As of the date of this filing, the Company had limited assets available and was therefore uncertain as to the manner by which it expects to settle our remaining outstanding liabilities. Furthermore, we are also uncertain about the expected date by which we expect to complete the liquidation.

Our consolidated statement of net liabilities in liquidation as of March 31, 2025 reflects the following:

	●	No additional items were recognized, such as trademarks, that the Company might either sell in liquidation or use to settle its liabilities
	●	Liabilities have been recognized in accordance with the recognition provisions of other topics that otherwise would apply to those liabilities
	●	The intangible assets and fixed assets have been recognized based on a settlement amount equal to the credit bid of approximately $35,800,000.
	●	No additional costs or income expected to be incurred or earned through the end of our liquidation have been accrued as the Company does not believe the amounts to be material

NOTE 4 – FIXED ASSETS

A summary of the fixed assets is as follows:

SCHEDULE OF FIXED ASSETS

	March 31, 2024			March 31, 2023
	March 30, 2025
Land	$	~~324~~187,~~293~~609		$	~~324,293~~
Buildings		6,624,549			~~5,495,150~~
Machinery and equipment		11,210,985			~~12,293,112~~
Autos and trucks		~~208~~188,~~771~~415			~~307,227~~
Fixed assets,gross		18,368,598			18,419,782
Fixed assets, gross		18,211,558
Accumulated depreciation		(56,~~067~~792,~~353~~833	)		~~(3,376,067~~	)
Fixed assets, net	$	1311,~~301~~418,~~245~~724		$	~~15,043,715~~

The consolidated statements of operations reflect depreciation expense of approximately $1,~~738~~725,000 ~~and~~for the $1period ended March 30,~~795~~ 2025. Subsequent to year end,~~000~~ ~~for~~primarily ~~the~~all ~~years~~of ~~ended~~the ~~March 31~~land, ~~2024~~buildings and ~~2023,~~machinery ~~respectively~~and equipment were transferred to a lender as part of the liquidation process.

On July 3, 2022, a building containing the Company’s water treatment and purification system in La Coste, Texas (the “Water Treatment Plant”) was completely destroyed in a fire. The Water Treatment Plant is a separate building consisting of approximately 8,000 square feet located apart from the production building, which was not damaged. Due to the damage caused by the fire, the Company has written off approximately $1,763,000 of the fixed assets and $325,000 of the accumulated depreciation.

F-13

NOTE 45 – SHORT-TERM NOTE AND LINES OF CREDIT

The Company ~~also~~ has a working capital line of credit with Capital One Bank for $50,000. The line of credit bears an interest rate of prime plus 25.9 basis points, which totaled 34.4% ~~and 33.9%~~ as of March 31, ~~2024 and 2023, respectively~~2025. The line of credit is unsecured. The balance of the line of credit was $9,580 at ~~both~~ March 31, ~~2024 and March 31, 2023~~2025.

The Company also has a working capital line of credit with Chase Bank for $25,000. The line of credit bears an interest rate of prime plus 10 basis points, which totaled 18.5% ~~and 18.0%~~ as of March 31, ~~2024 and 2023, respectively~~2025. The line of credit is secured by assets of the Company’s subsidiaries. The balance of the line of credit is $10,237 as of March 31, ~~2024 and March 31, 2023~~2025.

~~NOTE~~During 5August –of ~~PROMISSORY~~2024, ~~NOTE~~the Company entered into a line of credit with Bucktown Capital, LLC. The line of credit bears interest at 12%. The balance of the line of credit was $2,661,196 as of March 31, 2025. Subsequent to the balance sheet date the outstanding balance was extinguished as part of the liquidation process.

NOTE 6 – PROMISSORY NOTE

January 2023 Note

On January 20, 2023, the Company entered into a secured promissory note (“January 2023 Note”) with an investor (the “Investor”). The January 2023 Note is in the aggregate principal amount of $631,968. The Note has an interest rate of 10% per annum, with a maturity date nine months from the issuance date of the Note. The Note carried an original issue discount totaling $56,868, whereby the purchase price is $575,100. All payments made by the Company under the terms in the note, including upon repayment of this Note at maturity, shall be subject to an exit fee of 15% of the portion of the Outstanding Balance being paid ~~(the “Exit Fee”)~~. The cash was not transferred to the Company’s bank account, but instead to the merger entity, Yotta Acquisition Corporation (Note 11), for a contribution to a required extension fee for the business combination. On November 17, 2023, the Company received an extension of the maturity date to June 30, 2024, for a $5,000 extension fee. The maturity date was further extended to August 15, 2024.

On April 3, 2024, the Company and the Investor entered into an Exchange Agreement on the January 2023 Note. In the Exchange Agreement the remaining January 2023 Note was partitioned into a $92,700 new promissory note, leaving the original January 2023 Note with an adjusted balance of $221,018. The partitioned note was exchanged for 10,000,000 shares of the Company’s common stock. The shares of common stock issued had a fair value of $100,000 based on the market price of the shares of $0.010 on the execution date, resulting in an excess of $7,300 to be recognized as a financing expense. The note is in default as of the date of this filing.

April 2023 Promissory Note

On April 21, 2023, the Company entered into a $60,000 promissory note with Yotta Investment LLC (“Yotta Investment”), with no interest to accrue on the principal balance. The promissory note iswas to be settled on the date of closing of the business combination contemplated by the Merger Agreement with Yotta Acquisition Corporation, (“Merger Agreement”). Upon the ~~occurrence of an event of default, including the~~ termination of the Merger Agreement, the unpaid principal balance of ~~this~~the note, and all other sums payable with regard to this note, ~~shall~~became ~~automatically and immediately become~~ due and payable~~, in all cases without any action on the part of~~. ~~the~~The ~~Company.~~promissory Asnote ~~discussed in Note 13, the Merger Agreement~~ was ~~terminated,~~still ~~and~~outstanding ~~management~~as ~~believes~~of the ~~promissory~~date ~~note~~of ~~will be settled in~~ the ~~Breakup Fee~~filing.

May 2023 Promissory Note

On May 17, 2023, the Company entered into an additional $60,000 promissory note with Yotta Investment, with no interest to accrue on the principal balance. The promissory note iswas to be settled on the date of closing of the business combination contemplated by the Merger Agreement with Yotta Acquisition Corporation. Upon the ~~occurrence of an event of default, including the~~ termination of the Merger Agreement, the unpaid principal balance of ~~this~~the note, and all other sums payable with regard to this note, ~~shall~~became ~~automatically and immediately become~~ due and payable,. inThe ~~all~~promissory ~~cases~~note ~~without~~was ~~any~~still ~~action~~outstanding onas ~~the part~~ of the ~~Company. As discussed in Note 13, the Merger Agreement was terminated,~~date ~~and~~of ~~management believes~~ the ~~promissory note will be settled in the Breakup Fee~~filing.

Ms. Williams Promissory Note

On July 15, 2020, the Company issued a promissory note to Ms. Williams in the amount of $383,604 to settle the amounts that had been recognized per the separation agreement with the late Mr. Bill Williams dated August 15, 2019, for his portion of the related party notes and related accrued interest discussed above, and accrued compensation and allowances. The note bears interest at one percent per annum and calls for monthly payments of $8,000 until the balance is paid in full. During the year ended March 31, ~~2024~~2025, the Company did not make ~~the~~ any monthly payments. The balance as of ~~both~~ March 31, ~~2024~~2025 ~~and March 31, 2023~~ was $119,604~~, with the full balance as of March 31, 2024 and $96,000 for the year end March 31, 2023, classified in current liabilities, on the consolidated balance sheets~~.

F-14

NOTE 67 – RESTRUCTURED ~~AUGUST~~ NOTE ~~PAYABLE~~PAYABLES

~~The Company entered into a securities purchase agreement (the “SPA”) with an investor (the “Investor”) on~~ August ~~17, 2022. Pursuant to the SPA, the Investor purchased a secured promissory note (the “~~Note”) in the aggregate principal amount totaling approximately $5,433,333. The Note has an interest rate of 12% per annum, with a maturity date nine months from the issuance date of the Note. The Note carried an original issue discount totaling $433,333 and a transaction expense amount of $10,000, both of which are included in the principal balance of the Note. On the closing date the Company received $1,100,000, with $3,900,000 put into escrow to be held until certain terms were to be met, which included $3,400,000 upon the completion of a successful uplist to NYSE or NASDAQ. The SPA includes a Security Agreement, whereby the note is secured by the collateral set forth in the agreement, covering all of the assets of the Company. All payments made by the Company under the terms in the note, including upon repayment of this Note at maturity, shall be subject to an exit fee of 15% of the portion of the outstanding balance being paid (the “Exit Fee”). As the Exit Fee is to be included in every settlement of the Note, an additional 15% of the principal balance, which totals $816,500, was recognized along with the principal balance, and offset by a contra account in a manner similar to a debt discount.Payable

The Company entered into a securities purchase agreement (the “SPA”) with an investor (the “Investor”) on August 17, 2022. Pursuant to the SPA, the Investor purchased a secured promissory note (the “Note”) in the aggregate principal amount totaling approximately $5,433,333. The Note has an interest rate of 12% per annum, with a maturity date nine months from the issuance date of the Note. The Note carried an original issue discount totaling $433,333 and a transaction expense amount of $10,000, both of which are included in the principal balance of the Note. On the closing date the Company received $1,100,000, with $3,900,000 put into escrow to be held until certain terms were to be met, which included $3,400,000 upon the completion of a successful uplist to NYSE or NASDAQ. The SPA includes a Security Agreement, whereby the note is secured by the collateral set forth in the agreement, covering all of the assets of the Company. All payments made by the Company under the terms in the note, including upon repayment of this Note at maturity, were subject to an exit fee of 15% of the portion of the outstanding balance being paid (the “Exit Fee”). As the Exit Fee is to be included in every settlement of the Note, an additional 15% of the principal balance, which totals $816,500, was recognized along with the principal balance, and offset by a contra account in a manner similar to a debt discount.

As soon as reasonably possible, the Company will cause the common stock to be listed for trading on either of (a) NYSE, or (b) NASDAQ (in either event, an “Uplist”). In the event the Company has not effectuated the Uplist by November 15, 2022, the then-current outstanding balance will be increased by 10%. Following the Uplist, while the Note is still outstanding, ten days after the Company may have a sale of any of its shares of common stock or preferred stock, there shall be a Mandatory Prepayment equal to the greater of $3,000,000 or thirty-three percent of the gross proceeds of the equity sale.

In conjunction with the Merger Agreement, entered into on October 24, 2022, with Yotta Acquisition Corporation (Note 13), on November 4, 2022, the Company entered into a Restructuring Agreement for an Amended and Restated Secured Promissory Note (the “August Note”), through which the August Note was amended and restated in its entirety. The Restructured August Note decreased the principal to $1,748,667, less an OID of $138,667, and the amount in escrow was returned to the investor, The Restructuring Agreement included key modifications, in which i) the Uplist terms were removed, ii) in the event that the closing of the Merger does not occur on or before December 31, 2022, the then-current Outstanding Balance will be increased by 2% and shall increase by 2% every 30 days thereafter until the closing or termination of the Merger Agreement, and iii) the outstanding balance of the Convertible Note may be increased by 5% to 15% upon the occurrence of an event of default or failure to obtain the Lender’s consent or notify the Lender for certain major equity related transactions (“Trigger Events”). The Merger had not yet closed, and therefore the 2% of the outstanding balance was increased as of June 30, 2023, in the amount of approximately $272,000. On July 20, 2023, the Company sent Yotta notice of the Company’s termination of the Merger Agreement. (See Note 13) On November 20, 2023, the maturity date was extended to June 30, 2024. The maturity date was further extended to August 15, 2024.

The Restructured August Note was analyzed under ASC 470-50 as to if the change in terms qualified as a modification or an extinguishment of the note . The changes in terms were considered an extinguishment as the present value of the cash flows under the terms of the ~~new~~ new debt instrument was evaluated to be a substantial change, as over 10% difference from the present value of the remaining cash flows under the terms of the original instrument. As such, with the removal of the original note and its debt discount and accrued interest as compared to the restructured note with a fair value of approximately $1,933,000, there was a loss in extinguishment of approximately $157,000. As a result of the extinguishment and at the Company’s election of the fair value option under ASC 825, the August Note ~~will be~~was accounted for at fair value until ~~they are settled~~settlement. In accordance with ASC 815- 15-25-1(b) a hybrid instrument that is measured at fair value under ASC 825 fair value option each period with changes in fair value reported in earnings as they occur should not be ~~evaluated~~ evaluated for embedded derivatives. Therefore, the provisions in the August Note were not evaluated as to if they fell under the guidance of embedded derivatives and were required to be bifurcated. The August Note was revalued as of March 31, ~~2024~~2025 and March 30, 2025 at approximately $23,~~640~~047,~~000~~309, with a change in fair value of approximately $~~240~~407,~~000~~309 in the current year recognized in the accompanying Consolidated Statement of Operations. ~~The~~ ~~August~~Subsequent ~~Note~~to ~~was revalued as of March 31, 2023 at approximately $2,400,000, with a change in fair value of approximately $467,000. As of March 31, 2024,~~ the ~~accrued~~balance ~~interest~~sheet ~~from~~date the outstanding ~~restructuring~~balance ~~date,~~was ~~which~~extinguished isas ~~included~~part inof the ~~fair~~liquidation ~~value is approximately $415,000~~process.

F-15

~~NOTE~~Senior 7Note ~~– RESTRUCTURED SENIOR NOTE PAYABLE~~Payable

December 15, 2021 Debenture

The Company entered into a securities purchase agreement (the “SPA”) with an investor (the “Investor”) on December 15, 2021. Pursuant to the SPA, the Investor purchased a secured promissory note (the “Note”) in the aggregate principal amount totaling approximately $16,320,000 (the “Principal Amount”). The Note has an interest rate of 12% per annum, with a maturity date 24 months from the issuance date of the Note (the “Maturity Date”).

Beginning on the date that is 6 months from the issuance date of the Note, the Investor had the right to redeem up to $1,000,000 of the outstanding balance per month. Payments could have been made by the Company, at the Company’s option, (a) in cash, or (b) by paying the redemption amount in the form of shares of the Company’s common stock, par value $0.0001 per share (the “Common Stock”), per the following formula: the number of redemption shares equals the portion of the applicable redemption amount divided by the Redemption Repayment Price. The “Redemption Repayment Price” equaled 90% multiplied by the average of the two lowest volume weighted average price per share of the Common Stock during the ten (10) trading days immediately preceding the date that the Investor delivers notice electing to redeem a portion of the Note. The redemption amount shall include an Exit Fee, consisting of a premium of 15% of the portion of the outstanding balance being paid. As the Exit Fee is to be included in every settlement of the Note, an additional 15% of the principal balance, which totals $2,448,000, was recognized along with the principal balance, and offset by a contra account in a manner similar to a debt discount. In addition to the Investor’s right of redemption, the Company has the option to prepay the Notes at any time prior to the Maturity Date by paying a premium of 15% plus the principal, interest, and fees owed as of the prepayment date.

On November 4, 2022, the Company entered into a Restructuring Agreement for an Amended and Restated Secured Promissory Note (the “Senior Note”) with the December 2021 Investor through which the December 2021 Note was amended and restated in its entirety. These amendments were made in conjunction with the Merger Agreement, entered into on October 24, 2022, with Yotta Acquisition Corporation (Note 13), The main modification of the terms of the Senior Note was that the conversion feature was eliminated. Second, a Mandatory Payment was added whereby within 3 trading days of the closing upon the Merger an amount equal to the lesser of (A) one-third of the amount retained in the Trust Account at the Effective Time or (B) $10,000,000, in order to repay a portion of the outstanding balance of the Senior Note; after which the remaining balance of the Senior Note is to be repaid in equal monthly installments over a 12-month period beginning on a date after the Merger Agreement closing date (“Closing Date”) or the termination of such agreement. All payments made shall be subject to an Exit Fee of 15% of the portion of the outstanding balance being paid. Additionally, if the Closing Date is after December 31, 2022, the outstanding balance of all indebtedness owed by the Company to December 2021 Investor will be increased automatically by 2% and will automatically increase by 2% every 30 days thereafter until the Closing, a termination, or substantially similar terms as approved by the Board of Directors of the Company. Additional key modifications include i) uplist terms in which the Company was to cause the common stock to be listed for trading on either of (a) NYSE, or (b) NASDAQ, were removed, ii) Maturity date was modified from December 15, 2023 to 12 months from the Closing or termination of the Merger Agreement, provided not to be later than September 30, 2024, and iii) the outstanding balance of the Senior Note may be increased by 5% to 15% upon the occurrence of an event of default or failure to obtain the Lender’s consent or notify the Lender for certain major equity related transactions (“Trigger Events”). As of June 30, 2023, the Merger has not yet closed, and therefore the 2% of the outstanding balance was increased as of June 30, 2023, in the amount of approximately $2,675,000. On July 20, 2023, the Company sent Yotta notice of the Company’s termination of the Merger Agreement (See Note 13). Based on the termination in July of 2023, the equal monthly payments were to begin on September 20, 2023. On July 3, 2024, the Investor issued a waiver to the Company on the equal monthly payments, which are not currently required to be paid, through August 15, 2024.

The Note also contains certain negative covenants and Events of Default, which in addition to common events of default, include the Company fails to maintain the share reserve, the occurrence of a Fundamental Transaction without the Lenders written consent, the Company effectuates a reverse split of its common stock without 20 trading days written notice to Lender, fails to observe or perform or breaches any covenant, and, the Company or any of its subsidiaries, breaches any covenant or other term or condition contained in any Other Agreements in any material. Upon an Event of a Default, at its option and sole discretion, the Investor may consider the Note immediately due and payable. Upon such an Event of Default, the interest rate increases to 18% per annum and the outstanding balance of the Note increases from 5% to 15%, depending upon the specific Event of Default. ~~As of March 31, 2024, the Company is in full compliance with the covenants and Events of Default.~~

F-16

The Restructured Senior Note was analyzed under ASC 470-50 as to if the change in terms qualified as a modification or an extinguishment of the note. The changes in terms were considered an extinguishment as the conversion feature has been eliminated and therefore the modified Senior Note is determined to be fundamentally different from the original convertible note. As such, with the removal of the original note and its debt discount and accrued interest as compared to the restructured note with a fair value of approximately $18,914,000, there was a gain in extinguishment of approximately $2,540,000. As of the restructuring date the derivative had a fair value of $12,290,000, based on assumptions used in a bi-nomial option pricing model, which resulted in a change in fair value of $17,738,000 as of the restructuring date, from its previous fair value of $30,028,000. The key valuation assumptions used consist, in part, of the price of the Company’s common stock of $0.16 at issuance date; a risk-free interest rate of 3.73% and expected volatility of the Company’s common stock, of 117.77%, and the strike price of $0.1017.

As a result of the extinguishment and at the Company’s election of the fair value option under ASC 825, the Company will account ~~for~~ for the Restructured Senior Note at fair value every period end until it is settled. In accordance with ASC 815- 15-25-1(b) a hybrid ~~instrument~~ instrument that is measured at fair value under ASC 825 fair value option each period with changes in fair value reported in earnings as they occur should not be evaluated for embedded derivatives. Therefore, the Company did not evaluate the provisions in the Restructured Senior Note as to whether they fell under the guidance of embedded derivatives and were required to be bifurcated. The Restructured Senior Note was revalued as of March 31, ~~2024~~2025 atand ~~approximately $27,120,000, with a change in fair value of approximately $5,830,000 recognized in the Company’s accompanying Consolidated Statement of Operations. The Senior Note was revalued as of~~ March 3130, ~~2023,~~2025 at approximately $2130,~~290~~091,000, with a change in fair value of approximately $2,~~376~~971,000 recognized in the Company’s accompanying ~~condensed~~Consolidated ~~consolidated~~ Statement of Operations. AsSubsequent ofto ~~March 31, 2024,~~ the ~~accrued~~balance ~~interest~~sheet ~~from~~date the ~~restructuring~~outstanding balance ~~date,~~was ~~which~~extinguished isas ~~included~~part inof the ~~fair~~liquidation ~~value is approximately $5,688,000~~process.

NOTE 8 – STOCKHOLDERS’ EQUITY

Preferred Stock

As of March 31, ~~2024 and March 31~~2025, ~~2023,~~ the Company had 200,000,000 shares of preferred stock authorized with a par value of $0.0001, respectively. Of this amount, 5,000,000 shares of Series A Preferred Stock are authorized and outstanding, 5,000 shares Series B Preferred Stock are authorized and no shares outstanding; 5,000 shares Series D Preferred Stock are authorized with none outstanding; 10,000 shares Series E Preferred Stock are authorized with 1,~~656~~571 and 1,670 outstanding, respectively; 750,000 shares Series F Redeemable Convertible Preferred stock are authorized with 750,000 shares outstanding, and 10,000 shares of Series G preferred stock are authorized with ~~445~~745 outstanding, respectively.

F-17

Series E Preferred Stock

On April 14, 2021, the Board authorized the issuance of 10,000 shares of the Company’s Series E Preferred Stock and has filed a Certificate of Designation (“COD”) of Preferences of the Series E Convertible Preferred Stock with the State of Nevada. The shares of Series E Preferred Stock have a stated value of $1,200 per share and are convertible into shares of common stock at the election of the holder of the Series E Preferred Stock at any time at a price of $0.35 per share, subject to adjustment (the “Conversion Price”). The Series E Preferred Stock is convertible into that number of shares of common stock determined by dividing the Series E Stated Value (plus any and all other amounts which may be owing in connection therewith) by the Conversion Price, subject to certain beneficial ownership limitations. Each holder of Series E Preferred Stock shall be entitled to receive, with respect to each share of Series E Preferred Stock then outstanding and held by such holder, dividends at the rate of twelve percent (12%) per annum, payable quarterly. Each share of Series E Preferred Stock shall be redeemed by the Company on the date that is no later than one calendar year from the date of its issuance. The Series E Preferred Stock are also redeemable at the Company’s option, at percentages ranging from 115% to 125% for the first 180 days, based on the passage of time. The holders of Series E Preferred Stock rank senior to the Common Stock and Common Stock Equivalents (as defined in the Series E Designation) with respect to payment of dividends and rights upon liquidation and will vote together with the holders of the Common Stock on an as-converted basis, subject to beneficial ownership limitations, on each matter submitted to a vote of holders of Common Stock (whether at a meeting of shareholders or by written consent). Based upon a subsequent financing, the holder has the option to exchange (in lieu of conversion), all or some of the shares of Series E Preferred Stock then held for any securities or units issued in a subsequent financing on a $1.00 for $1.00 basis. In the event of a Fundamental Transaction, the holder has the option to request that the Company or the successor entity shall purchase the Preferred Stock from the Holder on the date of such request by paying to the Holder cash in an amount equal to the Black Scholes value. Upon any triggering event as set forth in the COD, including a change in control or the Company shall fail to have available a sufficient number of authorized and unreserved shares of common stock to issue to such holder upon a conversion, each holder shall have the right, exercisable at the sole option of such holder, to require the Company to redeem all of the Series E Preferred Stock then held by such holder for a redemption price, in cash, equal to the Triggering Redemption Amount (150% of the Stated Value and all accrued but unpaid dividends and all liquidated damages, late fees and other costs), and increase the dividend rate on all of the outstanding Preferred Stock held by such Holder to 18% per annum thereafter. Upon any liquidation, dissolution or winding-up of the Company, the holders shall be entitled to receive out of the assets of the Company an amount equal to the stated value, plus any accrued and unpaid dividends and any other fees or liquidated damages then due and owing for each share of Preferred Stock, before any distribution or payment shall be made to the holders of any Junior Securities, and if the assets of the Corporation shall be insufficient to pay in full such amounts, then the entire assets to be distributed to the holders shall be ratably distributed among the holders in accordance with the respective amounts that would be payable on such shares if all amounts payable thereon were paid in full.

On November 22, 2021, the Company entered into a securities purchase agreement (“SPA”) for 1,500 shares of the Company’s Series E Preferred Stock, at a price of $1,000 per share and (ii) a warrant to purchase up to 1,500,000 shares of the Company’s common stock, with an exercise price equal to $0.75, which expires in five years, for a purchase price of $1,500,000. The warrant had a fair value of $561,000, estimated using the Black Scholes Model, with the following inputs: the price of the Company’s common stock of $0.38; a risk-free interest rate of 1.33%, the expected volatility of the Company’s common stock of 209.9%; the estimated remaining term, a dividend rate of 0%. The Company also issued 267,429 warrants as placement agent fees, with a fair value of $101,000, estimated with the same assumptions. All of the warrants were classified as a liability, as it is not known if there will be sufficient authorized shares to be issued upon settlement. The Company accreted the carrying value, reflecting the discount of $300,000 between the stated value and purchase price and the fair value of the warrants issued of $662,000, of the Series E Preferred Stock in temporary equity up to the redemption value over the period until its redemption which was fully accreted as of March 31, 2023.

On April 14, 2021, the Company, entered into a share exchange agreement (the “Exchange Agreement”) with a holder of the Series D Preferred Stock, whereby, at the closing of the Offering, the Holder agreed to exchange an aggregate of 3,600 shares of the Company’s Series D Preferred Stock, par value $0.0001 per share into 3,739.63 shares of the Company’s Series E Convertible Preferred stock, par value $0.0001 (the “Series E Preferred Stock”). The exchange was completed on April 15, 2021.

On June 16, 2022, one of the holders of the Series E Convertible Preferred Stock chose to exercise their right, pursuant to the Certificate of Designation relating to the Series E Convertible Preferred Stock, to receive the rights extended to the convertible noteholder, of 90% multiplied by the average of the two lowest volume weighted average price per share of the Common Stock during the ten (10) trading days immediately preceding the date of conversion. As the exercise of the conversion price adjustment was similar to a down round, and the Company has not yet adopted ASU 2020-06, the accounting treatment of ASU 2017-11 was applied, whereby the adjustment was treated as a contingent beneficial conversion feature recognized as of the triggering date. As of June 16, 2022, this holder held 940 shares of the Series E preferred stock. The Company analyzed the conversion feature under ASC 470-20, “Debt with conversion and other options”, and based on the market price of the common stock of the Company as compared to the conversion price, determined there was a $99,000 beneficial conversion feature to recognize, which was fully amortized as there is no remaining redemption date to their Series E Preferred Stock. The additional rights of the convertible note which were applied include the 10% increase in the outstanding balance if an uplist to a national exchange was not consummated by the Company by March 1, 2022, for an increase of 130 Series E Preferred shares with a stated value of $156,000, as well as an exit fee of 15% to be recognized upon conversions of the Series E Preferred shares into shares of common stock. As of March 31, 2023, 170 shares of Series E Preferred Stock were outstanding to this holder.

F-18

During the year ended March 31, 2023, 1,300 shares of Series E Preferred Stock were converted into 14,458,127 shares of common stock. As of March 3130, ~~2023~~2025 there were 1,~~670~~571 shares of Series E Preferred Stock remaining outstanding.

On November 5, 2022, the Company entered a restructuring agreement with the Series E Preferred Stockholders, whereby the Series E Preferred Stock and the warrants outstanding as of the Closing date shall have their terms adjusted. The outstanding warrants shall be a) cancelled in exchange for a cash payment equal to the fair value of the warrants based on the Black Scholes model, with the exercise price to be adjusted to equal 80% of the average volume weighted average price of the Company common stock during the five trading day period immediately prior to the Closing Date (the “Adjusted Exercise Price”); or (b) as of the Effective Time, canceled and treated as if exercised for that number of shares of the Company’s common stock calculated using the Black Scholes model fair value, the number of Warrant Shares on the Closing Date and the Adjusted Exercise Price, with the shares of the Company’s common stock that would have been due to Holder as a result of such exercise of the Warrant treated as if issued to Holder and then converted into the right to receive (i) the Closing Per Share Merger Consideration (as defined in the Merger Agreement) plus (ii) the Additional Per Share Merger Consideration (as defined in the Merger Agreement), if any, at the time and subject to the contingencies set forth in the Merger Agreement. For the Series E Preferred Stock that shall be outstanding immediately prior to the Effective Time, they shall be canceled and treated as if converted into that number of shares of the Company’s common stock equal to (i) the stated value of $1,200 per share plus any unpaid dividends, multiplied by 1.25, divided by (ii) 80% of the average volume weighted average price of the Company’s common stock during the five trading day period immediately prior to the Closing Date. The shares of the Company’s common stock that would have been due to the holder as a result of the conversion of such shares of Series E Convertible Preferred Stock shall be treated as issued to holder and converted, as of the Effective Time, into the right to receive (y) the Closing Per Share Merger Consideration plus (z) the Additional Per Share Merger Consideration, if any, at the time and subject to the contingencies set forth in the Merger Agreement. Due to the termination of the Merger Agreement (Note 13) this restructuring agreement is no longer effective.

On July 24, 2023, the Company entered into a Securities Purchase Agreement for the additional sale of 156 shares of Series E Preferred Stock at a price of $1,000 per share of Preferred Stock, for a total of $156,000. The Series E Preferred Stock will earn a dividend of 12% per annum, for as long as the relevant Preferred Stock has not been redeemed or converted. Dividends are to be paid quarterly, and at the Company’s discretion, in cash or Preferred Stock calculated at the purchase price.

For the ~~year~~period ended March 3130, ~~2024~~2025, the accretion for the Series E Preferred Stock was $2758,~~900~~300.

On May 1, 2023, one of the holders converted 600 Series E Preferred Stock into 23,989,570 shares of common stock. The conversion represented their remaining Series E Preferred Stock outstanding as of that date, including the 10% increase, accrued dividends in kind of $516,000 and the 15% Exit Fee of $108,000.

Series G Preferred Stock

On December 1, 2023, the Board authorized the issuance of 10,000 preferred shares to be designated as Series G Preferred Stock (“Series G Preferred Stock”). The Series G Preferred Stock has a par value of $0.0001, a stated value of $1,200 and bear dividends at the rate of 8% per annum, payable quarterly, to be paid in cash or in-kind, at the discretion of the Company. The Series G Preferred Stock will vote together with the common stock on an as-converted basis subject to the beneficial ownership limitations. The Series G Preferred Stock is required to be redeemed by the Company no later than one calendar year from the date of its issuance. The Series G Preferred Stock is also redeemable at the option of the Company at any time after the original issued date, upon 3 business days’ notice, at a premium rate which is (a) 1.15 if all of the Series G Preferred Stock is redeemed within 90 calendar days from the issuance date thereof; (b) 1.2 if all of the Series G Preferred Stock is redeemed after 90 calendar days and within 120 calendar days from the issuance date thereof; (c) 1.25 if all of the Series G PS is redeemed after 120 calendar days and within 180 calendar days from the issuance date thereof. The Company shall be permitted to redeem the Series G Preferred Stock at any time in cash upon 3 business days prior notice to the Holder or the Holder may convert the Series G Preferred Stock within 3 business days period prior to redemption. The Holder shall have the right to either redeem for cash or convert the Series G Preferred Stock into common stock within 3 business days following the consummation of a qualified offering. The conversion price is based on the discounted market price which is the lower of: (i) A fixed price equaling the closing bid price for the common stock on the trading day preceding the execution of the SPA ; or (ii) 100% of the lowest volume weighted average price (“VWAP)” for the common stock during 10 trading days preceding the conversion request, subject to adjustment.

F-19

As the redemption feature is mandatorily redeemable within one year of the issuance date, with a substantive conversion option, the Series G Preferred Stock would not fall under liability classification but is to be classified as mezzanine equity.

Series G Preferred Equity Offering

On December 14, 2023, the Company entered into a Securities Purchase Agreement for the sale of 110 shares of Series G Preferred Stock at a price of $1,000 per share of preferred stock, for a total of $110,000. The Purchaser also received an “Equity Incentive”, which was an additional 35 Series G Preferred Stock issued to the Purchaser at the initial closing and deemed to be earned at the time of its issuance. Following the initial closing, the Company and Purchaser shall mutually agree from time to time for the Company to sell and the Purchaser to purchase up to 400 shares of Series G Preferred Stock at a price of $1,000 per share in separate closings . The Series G Preferred Stock will earn a dividend of 8% per annum, for as long as the relevant Preferred Stock has not been redeemed or converted. Dividends are to be paid quarterly, and at the Company’s discretion, in cash or Preferred Stock calculated at the purchase price. On December 19, 2023, the Company received an initial tranche of $110,000 under the SPA, less $13,000 for legal and commission fees. The $77,000 discount ~~will~~was be accreted up to the redemption price over the one-year period until redemption.

On January 24, 2024, the Company received a tranche of $100,000 under the SPA for 100 Series G Preferred Stock with a stated value of $120,000, less $3,000 for legal and commission fees. The $23,000 discount ~~will~~was be accreted up to the redemption price over the one-year period ~~until~~ until redemption.

On February 23, 2024, the Company entered into a consulting agreement in which it was required to issue the consultant a retainer fee to be either $180,000 in cash or $200,000 in shares of the Company’s preferred stock. The Company issued 200 of their Series G, with a stated value of $240,000. The $40,000 discount ~~will~~was be accreted up to the redemption price over the one-year period until redemption.

~~During~~On April 23, 2024, the ~~year~~Company ~~ending~~received ~~March~~a ~~31,~~tranche ~~2024~~of $100,000 under the ~~accretion~~SPA for ~~the~~100 Series G Preferred Stock ~~was~~with a stated value of $38120,000. The $20,000 discount will be accreted up to the redemption price over the one-year period until redemption.

On June 12, 2024, the Company received a tranche of $100,000 under the SPA for 100 Series G Preferred Stock with a stated value of $120,000. The $20,000 discount will be accreted up to the redemption price over the one-year period until redemption.

On July 10, 2024, the Company received a tranche of $100,000 under the SPA for 100 Series G Preferred Stock with a stated value of $120,000. The $20,000 discount will be accreted up to the redemption price over the one-year period until redemption.

During the years ending March 30, 2025, the accretion for the Series G Preferred Stock was approximately $172,000.

Common Stock

On September 28, 2023, the Company increased their authorized common shares to 1,400,000,000.

GHS 2022 Purchase Agreement

On November 4, 2022, the Company entered into a purchase agreement (the “GHS Purchase Agreement”) with GHS Investments LLC (“GHS”), an accredited investor, pursuant to which, the Company may require GHS to purchase a maximum of up to 64,000,000 shares of the Company’s common stock (“GHS Purchase Shares”) based on a total aggregate purchase price of up to $5,000,000 over a one-year term that ends on November 4, 2023. Notwithstanding the foregoing dollar limitations, the Company and GHS may, from time to time, mutually agree in writing to waive the aforementioned limitations for a relevant Purchase Notice, which waiver, shall not exceed the 4.99% beneficial ownership limitation contained in the GHS 2022 Purchase Agreement. The Company is to control the timing and amount of any sales of GHS Purchase Shares to GHS. The Company intends to use the net proceeds from this offering for working capital and general corporate purposes.

The “Purchase Price” means, with respect to a purchase made pursuant to the GHS Purchase Agreement, 90% of the lowest VWAP during the 10 consecutive business days immediately preceding, but not including, the applicable purchase date. The Company shall deliver a number of GHS Purchase Shares equal to 112.5% of the aggregate purchase amount for such GHS Purchase divided by the Purchase Price per share for such GHS Purchase.

F-20

If there are any default events, as set forth in the GHS Purchase Agreement, has occurred and is continuing, the Company shall not deliver to GHS any Purchase Notice.

Further, pursuant to the terms of the GHS Purchase Agreement, from November 4, 2022 until the date that is the later of (i) the closing of the transactions whereby Yotta Merger Sub, Inc. will merge with and into the Company, with the Company as the surviving company (the “Merger”); and (ii) the 12 month anniversary of the first delivery of GHS Purchase Shares, upon any issuance by the Company or any of its subsidiaries of Common Stock or Common Stock equivalents for cash consideration, indebtedness or a combination of units thereof (a “Subsequent Financing”), GHS shall have the right to participate in any financing, up to an amount of the Subsequent Financing equal to 100% of the Subsequent Financing (the “Participation Maximum”) on the same terms, conditions and price provided for in the Subsequent Financing. Following the Merger, the Participation Maximum shall be 50% of the Subsequent Financing.

In the year ended March 31, 2024, the Company sold 11,981,706 shares of common stock at a net amount of approximately $376,000, at a share price of $0.03, of the GHS Purchase Agreement.

In the year ended March 31, 2023, the Company sold 52,018,294 shares of common stock at a net amount of approximately $3,076,000, at share prices ranging from $0.04 to $0.10.

$10,000,000 Common Stock Equity Financing

With the effectiveness of the Registration Statement, the Company now has the discretion to deliver puts to GHS and GHS will be obligated to purchase shares of the Company’s common stock, par value $0.0001 per share (the “Common Stock”) based on the investment amount specified in each put notice. The maximum amount that the Company shall be entitled to put to GHS in each put notice shall not exceed two hundred percent (200%) of the average daily trading dollar volume of the Company’s Common Stock during the ten (10) trading days preceding the put, so long as such amount does not equal less than ten thousand dollars ($10,000) or greater than one million dollars ($1,000,000). Pursuant to the Equity Financing Agreement, GHS and its affiliates will not be permitted to purchase and the Company may not put shares of the Company’s Common Stock to GHS that would result in GHS’s beneficial ownership equaling more than 4.99% of the Company’s outstanding Common Stock. The price of each put share shall be equal to eighty percent (80%) of the Market Price (as defined in the Equity Financing Agreement). Following an up-list to the NASDAQ or equivalent national exchange, the price of each put share shall be equal to ninety percent (90%) of the Market Price, subject to a floor price of $1.00 per share. Puts may be delivered by the Company to GHS until the earlier of twenty-four (24) months after the effectiveness of the Registration Statement or the date on which GHS has purchased an aggregate of $10,000,000 worth of Common Stock under the terms of the Equity Financing Agreement.

InDuring the ~~three~~year ~~months~~ ended ~~September~~March 30, ~~2023~~2025, the Company sold 31141,~~808~~064,~~246~~683 shares of common stock at a ~~net~~gross amount of approximately $~~566~~861,~~000~~668, at share prices ~~price~~ of $0.02003 ~~related~~through $0.008, in relation to the Equity Financing Agreement.

F-21

GHS 2023 Purchase Agreement

On May 9, 2023, the Company entered into a purchase agreement (the “GHS 2023 Purchase Agreement”) with GHS pursuant which the Company may require GHS to purchase a maximum of up to 45,923,929 shares of the Company’s common stock (“GHS 2023 Purchase Shares”) based on a total aggregate purchase price of up to $6,000,000 over a one-year term that ends on May 9, 2024. The Company intends to use the net proceeds from this offering for working capital and general corporate purposes.

The GHS 2023 Purchase Agreement provides that, upon the terms and subject to the conditions and limitations set forth in the agreement, the Company has the right from time to time during the term of the agreement, in its sole discretion, to deliver to GHS a purchase notice (a “Purchase Notice”) directing GHS to purchase (each, a “GHS Purchase”) a specified number of GHS 2023 Purchase Shares. A GHS Purchase will be made in a minimum amount of $10,000 and up to a maximum of $1,500,000 and provided that, the purchase amount for any purchase will not exceed 200% of the average of the daily trading dollar volume of the Company’s common stock during the 10 business days preceding the purchase date. Notwithstanding the foregoing dollar limitations, the Company and GHS may, from time to time, mutually agree (in writing) to waive the aforementioned limitations for a relevant Purchase Notice, which waiver, for the avoidance of doubt, shall not exceed the 4.99% beneficial ownership limitation contained in the GHS Purchase Agreement. The “Purchase Price” means, with respect to a purchase made pursuant to the GHS Purchase Agreement, 90% of the lowest VWAP (as defined in the GHS 2023 Purchase Agreement) during the Valuation Period (the ten (10) consecutive business days immediately preceding, but not including, the applicable purchase date). The Company shall deliver a number of GHS 2023 Purchase Shares equal to 112.5% of the aggregate purchase amount for such GHS Purchase divided by the Purchase Price per share for such GHS Purchase, against payment by GHS to the Company of the purchase amount with respect to such Purchase (less documented deposit and clearing fees, if any), as full payment for such GHS Purchase Shares via wire transfer of immediately available funds.

If there are any default events, as set forth in the GHS Purchase Agreement, has occurred and is continuing, the Company shall not deliver to GHS any Purchase Notice.

Common Shares Issued to Consultants

On December 4, 2023, 40,000,000 shares of common stock were issued to a consultant under an Independent Consulting Agreement. The shares are a non-refundable retainer on behalf of their consulting services for one year of services. The shares had a fair value of $600,000, based on the market price of $0.015 on the grant date, recognized as consulting services in the nine months ended December 31, 2023.

On June 19, 2023, 100,000 shares of common stock were issued to a consultant. The shares had a fair value of $4,700, based on the market price of $0.047 on the grant date.

On August 1, 2022, the Company issued 250,000 shares of common stock to a consultant per the terms of an agreement from June 2021, to be issued upon the approval of a patent.

F-22

Common Stock Issued in Relation to Business Agreement

As of June 22, 2022, 250,000 common shares were issued in relation to a trial distribution agreement entered into with a consultant who was to introduce the Company to customers. Additionally, the consultant was also to assist the Company in the set-up of ancillary materials used or useful in the delivery of live shrimp, including installation of necessary equipment and facilities, logistical support, training of staff and packaging necessary for shipment of live shrimp. After the result of the trial period, the parties could have, but decided not to, negotiate and execute a long-term distribution agreement. The shares will be paid for by the Company withholding sufficient profits from the sale of the live shrimp to the customers introduced by the consultant.

Common Shares Issued to Employees

In February and March 2024, the Company issued 700,000 shares of common stock to four employees for a bonus compensation, with a total fair value of $8,100, based on the market price of $0.010 to $0.012 on the grant dates.

On October 10, 2023, a new employee was issued 50,000 shares of common stock as a signing bonus with a total fair value of $1,100, based on the market price of $0.02250 on the grant date.

NOTE 9 – OPTIONS AND WARRANTS

The Company has not granted any options since inception.

NoAll ~~warrants~~of ~~were~~the warrants issued inhave ~~the~~been ~~year~~recognized ~~ended~~as ~~March~~a 31liability, ~~2024~~based ~~and~~on ~~2023,~~the ~~nor~~fact ~~were~~it ~~any~~is ~~warrants~~not ~~exercised~~known ~~nor~~if ~~expired.~~there ~~The~~will ~~outstanding~~be ~~warrants~~sufficient authorized ~~have~~shares anto ~~average~~be ~~strike~~issued ~~price~~upon settlement. However, the 18,573,116 warrants outstanding as of ~~$0.47~~March 31, ~~with~~2025 ~~remaining~~had ~~terms~~a ~~from~~fair 3value ~~years~~of $0 due to the ~~3.72~~underlying ~~years~~shares limited value.

All of the warrants issued have been recognized as a liability, based on the fact it is not known if there will be sufficient authorized shares to be issued upon settlement.

The 18,573,116 warrants outstanding as of March 31, 2024, were revalued as of year-end for a fair value of $24,000, with a decrease in the fair value of $331,000 recognized on the Consolidated Statement of Operations. The fair value was estimated using Black Scholes Model, with the following inputs: the price of the Company’s common stock of $0.011; a risk-free interest rate of 4.40%, to 4.59%, the expected volatility of the Company’s common stock of 124.8% to 133.8%; the estimated remaining term, a dividend rate of 0%.

The 18,573,116 warrants outstanding as of March 31, 2023, were revalued as of year-end for a fair value of $355,000, with a decrease in the fair value of $3,568,000 recognized on the Statement of Operations. The fair value was estimated using Black Scholes Model, with the following inputs: the price of the Company’s common stock of $0.05; a risk-free interest rate of 3.81%, the expected volatility of the Company’s common stock of 121.0%; the estimated remaining term, a dividend rate of 0%.

NOTE 10 – RELATED PARTY TRANSACTIONS

Promissory Note

On July 10 through July 17, 2023, the Company received $140,000 in proceeds from the issuance of three promissory notes with family member related parties. The notes bear interest at 10% and have maturity dates one year from the issuance date. All of the notes were in default as of the date of the filing.

F-23

On August 10, 2022, the Company issued a loan agreement for $300,000, with employee and family member related parties, which is to be considered priority debt of the Company. As of this filing, five of the related parties have entered into promissory notes under the loan agreement for $50,000 each, for a total of cash received of $250,000. The notes bear interest at 10% per annum and are due in one year from the issuance date of the notes. The loans were in default as of the date of this filing.

For the year ended March 3130, ~~2024~~2025, the interest expense for the related party promissory notes was approximately $2842,000. ~~As of March 31,~~ ~~2024 and March 31, 2023, the accrued interest related to the related party promissory notes was approximately $50,000 and $22,000, respectively.~~

Bonus Compensation – Related Party

On May 11, 2021, the Company ~~paid~~awarded the Chief Financial Officer (“CFO”) a bonus of $300,000. On August 10, 2021, the Board of of Directors ratified the bonus payment to the CFO and awarded the President and the CTO compensation bonuses of $300,000 each. ~~The~~As ~~bonuses~~of toboth ~~the~~March ~~President and CTO are to be distributed within the next twelve months from the award date~~30, ~~and are included in accrued expenses~~2025, ~~related~~ ~~parties~~there aswas ~~of December 31, 2021. During the year ended March 31, 2022,~~ $200,000 ~~was paid each to the President and CTO~~outstanding, ~~with a~~which ~~total~~were ofpresented ~~$200,000 remaining~~ in accrued expenses, related parties~~, as of March 31, 2024 and 2023~~.

NaturalShrimp Holdings, Inc.

On January 1, 2016 the Company entered into a notes payable agreement with NaturalShrimp Holdings, Inc.(“NSH”), a shareholder. The note payable has no set monthly payment or maturity date with a stated interest rate of 2%. ~~During the year ended March 31, 2022,~~ ~~the Company paid off $655,750 of the note payable.~~ The outstanding balance is approximately $7779,000 as of ~~both~~ March 3130, ~~2024 and March 31, 2023~~2025. ~~As of both March 31, 2024 and March 31, 2023, accrued interest payable was approximately $74,000.~~

Shareholder Notes

The Company has entered into several working capital notes payable to multiple shareholders of NSH and Bill Williams, a former officer and director, and a shareholder of the Company, for a total of $486,500. The notes are unsecured and bear interest at 8%. These notes had stock issued in lieu of interest and have no set monthly payment or maturity date. The balance of these notes was $356,404 as of March ~~31,~~ ~~2024 and 2023~~30, ~~respectively~~2025, and is classified as a current liability on the consolidated balance sheets. ~~As of March 31, 2024 and March 31, 2023, accrued interest payable was approximately $146,000.~~

Shareholders

Beginning in 2010, the Company started entering into several working capital notes payable with various shareholders of NSH for a total of $290,000 and bearing interest at 8%. The balance of these notes as of March 3130, ~~2024~~2025 ~~and March 31, 2023~~ was $54,647 and is classified as a current liability on the consolidated balance sheets.

NOTE 11 –INCOME TAXES

The Company accounts for income taxes under ASC 740-10, which provides for an asset and liability approach of accounting for income taxes. Under this approach, deferred tax assets and liabilities are recognized based on anticipated future tax consequences, using currently enacted tax laws, attributed to temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts calculated for income tax purposes.

The components of income tax expense for the ~~years~~year ended March 3130, ~~2024~~2025 ~~and~~consisted ~~2023 consist~~ of the following:

SCHEDULE OF INCOME TAX EXPENSE

	2024			2023
	2025
Federal statutory rate		21.0	%		~~21.0~~	%
State taxes, net of federal benefit		-			-
Permanent differences		~~0.9~~-	%		~~4.6~~	%
Valuation allowance		(21.90	)%		~~(25.6~~	)%
Effective rate		0.0	%		~~0.0~~	%

F-24

Significant components of the Company’s deferred tax assets as of March 3130, ~~2024~~2025 ~~and~~is ~~2023 are~~ summarized below.

SCHEDULE OF DEFERRED TAX ASSET

	2024			2023
	2025
Deferred tax assets:
Net operating loss carryforwards	$	1719,~~600~~852,~~000~~823		$	~~8,900,000~~
Other		1,206,000			~~(279,000~~	)
Total deferred tax asset		1821,~~806~~058,~~000~~823			~~8,621,000~~
Valuation allowance		(1821,~~806~~058,~~000~~823	)		~~(8,621,000~~	)
Total	$	-		$	-

As of March 31, ~~2024~~2025, the Company had approximately $8394,~~800~~527,~~000~~729 of federal net operating loss carry forwards. The carry forwards beginning in tax years 2018 are allowed to be carried forward indefinitely and are to be limited to 80% of the taxable income. Future utilization of the net operating loss carry forwards is subject to certain limitations under Section 382 of the Internal Revenue Code. The Company believes that the issuance of its common stock in exchange for Multiplayer Online Dragon, Inc. on January 30, 2015 resulted in an “ownership change” under the rules and regulations of Section 382. Accordingly, the Company’s ability to utilize their net operating losses generated prior to this date is limited to approximately $282,000 annually.

To the extent that the tax deduction is included in a net operating loss carry forward and is in excess of amounts recognized for book purposes, no benefit will be recognized until the loss carry forward is recognized. Upon utilization and realization of the carry forward, the corresponding change in the deferred asset and valuation allowance will be recorded as additional paid-in capital.

The Company provides for a valuation allowance when it is more likely than not that it will not realize a portion of the deferred tax assets. The Company has established a valuation allowance against the net deferred tax asset due to the uncertainty that enough taxable income will be generated in those taxing jurisdictions to utilize the assets. Therefore, the Company has not reflected any benefit of such deferred tax assets in the accompanying financial statements. The Company’s net deferred tax asset and valuation allowance increased by $~~10,185,000 and $~~2,~~949~~252,~~000~~ 823 in the ~~years~~year ended March 31, ~~2024 and 2023, respectively~~2025.

The Company reviewed all income tax positions taken or that they expect to be taken for all open years and determined that the income tax positions are appropriately stated and supported for all open years. The Company is subject to U.S. federal income tax examinations by tax authorities for tax years after 2017 due to unexpired net operating loss carryforwards originating in and subsequent to that year. The Company may be subject to income tax examinations for the various taxing authorities which vary by jurisdiction.

NOTE 12 – LEASE

On May 26, 2021, the Company entered into a sublease for a new office space in Texas, on two floors. The lease commenced on August 1, 2021 for a monthly rent of $7,000, and will terminate on October 31, 2025, for one of the spaces, and commence in the second half of 2022 for monthly rent of $1,727, and terminate on October 31, 2025, for the second space. On June 2, 2021, the Company paid a deposit of $52,362 which shall be applied to the last six months of the sublease term, and $17,454 security deposit, which is included in Prepaid expenses on the accompanying consolidated balance sheet. The Company assessed its new office lease as an operating lease.

At inception, on August 1, 2021, the ROU and lease liability was calculated as approximately $316,000, based on the net present value of the future lease payments over the term of the lease. When available, the Company uses the rate implicit in the lease discount payments as the incremental borrowing rate to calculate the net present value; however, the rate implicit in the lease is not readily determinable for their corporate office lease. In this case, the Company estimated its incremental borrowing rate of 5.75% as the interest rate it could have incurred to borrow an amount equal to the lease payments in a similar economic environment on a collateralized basis over a term similar to the lease term . The Company estimated its rate based on observable risk-free interest rate and credit spreads for commercial debt of a similar duration as to what rate would have been effective for the Company.

F-25

On December 31, 2023, the Company moved to a new office space in Texas, and the sublease in effect was terminated. At the termination of the original lease, the existing ROU of approximately $153,000 and lease liability of approximately $175,000 was removed, with a gain of approximately $22,000 recognized in the year ended March 31, 2023, in the accompanying Consolidated Statement of Operations.

On December 20, 2023, the Company entered into a sublease for a new office space in Texas, with a commencement date of January 1, 2024, which will terminate on March 31, 2027. The monthly rates are $2,063 for April 1, 2024 through March 31, 2025, $2,192 for the second year of April 1, 2025 through March 31, 2026 and $2,320 for the final year. On December 19, 2023, the Company paid a $2,063 security deposit, which is included in Prepaid expenses on the accompanying consolidated balance sheet. The Company assessed its new office lease as an operating lease.

At inception, as of January 1, 2024, the ROU and lease liability was calculated as approximately $61,000, based on the net present value of the future lease payments over the term of the lease. When available, the Company uses the rate implicit in the lease discount payments as the incremental borrowing rate to calculate the net present value; however, the rate implicit in the lease is not readily determinable for their corporate office lease. In this case, the Company estimated its incremental borrowing rate of 14.5% as the interest rate it could have incurred to borrow an amount equal to the lease payments in a similar economic environment on a collateralized basis over a term similar to the lease term. The Company estimated its rate based on observable risk-free interest rate and credit spreads for commercial debt of a similar duration as to what rate would have been effective for the Company.

On September 8, 2021, the Company entered into an equipment lease agreement for VOIP phone equipment. The lease term is for sixty months, with a monthly lease payment of approximately $300. The Company assessed the equipment lease as an operating lease. The Company determined the Right of Use asset and Lease liability values at inception as approximately $17,000 calculated at the present value of all future lease payments for the lease term, using an incremental borrowing rate of 5.75%.

~~The~~All ~~following~~of isthe alease ~~schedule~~agreements ofwere ~~maturities~~terminated ofsubsequent ~~lease~~to ~~liabilities~~the asbalance ofsheet ~~March 31, 2024:~~date.

SCHEDULE OF MATURITIES OF LEASE LIABILITIES

2025	$	28,496
2026		30,043
2027		31,590
Total future minimum lease payments		90,129
Less: imputed interest		18,244
Total	$	71,885

NOTE 13 – COMMITMENTS AND CONTINGENCIES

Executive Employment Agreements –Gerald Easterling

On April 1, 2015, the Company entered into an employment agreement with Gerald Easterling at the time as the Company’s President, effective as of April 1, 2015 (the “Employment Agreement”).

The Employment Agreement is terminable at will and each provide for a base annual salary of $96,000. On May 4, 2021, the Company’s Board of Directors approved a salary for Mr. Easterling of $180,000 per annum. In addition, the Employment Agreement provides that the employee is entitled, at the sole and absolute discretion of the Company’s Board of Directors, to receive performance bonuses. Mr. Easterling will also be entitled to certain benefits including health insurance and monthly allowances for cell phone and automobile expenses.

F-26

The Employment Agreement provides that in the event the employee is terminated without cause or resigns for good reason (as defined in their Employment Agreement), the employee will receive, as severance the employee’s base salary for a period of 60 months following the date of termination. In the event of a change of control of the Company, the employee may elect to terminate the Employment Agreement within 30 days thereafter and upon such termination would receive a lump sum payment equal to 500% of the employee’s base salary.

The Employment Agreement contains certain restrictive covenants relating to non-competition, non-solicitation of customers and non-solicitation of employees for a period of one year following termination of the employee’s Employment Agreement.

Gary Shover

A shareholder of NaturalShrimp Holdings, Inc. (“NSH”), Gary Shover, filed suit against the Company on August 11, 2020 in the Northern District of Texas, Dallas Division, alleging breach of contract for the Company’s failure to exchange common shares of the Company for shares Mr. Shover owns in NSH. On November 15, 2021, a hearing was held before the US District Court for the Northern District of Texas, Dallas Division at which time Mr. Shover and the Company presented arguments as to why the Court should approve a joint motion for settlement. After considering the argument of counsel and taking questions from those NSH Shareholders who were present through video conferencing link, the Court approved the motion of the parties to allow Mr. Shover and all like and similarly situated NSH Shareholders to exchange each share of NSH held by a NSH Shareholder for a share of the Company. A final Order was signed on December 6, 2021 and the case was closed by an Order of the Court of the same date. The Company is to issue approximately 93 million shares in settlement, which as of December 6, 2021 was recognized as stock payable on the Company’s balance sheet, and its fair value of $29,388,000, based on the market value of the Company’s common shares of $0.316 on the date the case was closed, has been recognized in the Company’s statement of operations as legal settlement. As of March 31, 2022, 28,494,706 of the shares presented in Stock Payable have been issued, with the fair value of $9,415,950 reclassified out of Stock Payable. In the year ended March 31, 2023, an additional 61,558,203 of shares of common stock with a fair value of $19,445,284 were issued out of the Stock Payable. In the year ended March 31, 2024, an additional 863,110 of shares of common stock with a fair value of $272,743 were issued out of the Stock Payable.

Merger Agreement

On October 24, 2022, the Company entered into a Merger Agreement (as it may be amended, supplemented, or otherwise modified from time to time, the “Merger Agreement”), by and among the Company, Yotta Acquisition Corporation, a Delaware corporation (“Yotta”), and Yotta Merger Sub, Inc., a Nevada corporation and a wholly owned subsidiary of Yotta (“Merger Sub”). The Merger Agreement and the transactions contemplated thereby (the “Transactions”) were approved by the board of directors of each of the Company, Yotta, and Merger Sub.

The Merger Agreement provided, among other things, that Merger Sub will merge with and into the Company, with the Company as the surviving company (the “Surviving Company”) in the merger and, after giving effect to such merger, the Company shall be a wholly-owned subsidiary of Yotta (the “Merger”). In addition, Yotta would be renamed “NaturalShrimp, Incorporated” or such other name as shall be designated by the Company. Other capitalized terms used, but not defined, herein have the respective meanings given to such terms in the Merger Agreement.

On July 20, 2023, the Company sent Yotta notice of the Company’s termination of the Merger Agreement pursuant to Section 10.2(b) thereof based on breaches by Yotta of certain representations in the Merger Agreement that would render impossible the satisfaction of certain conditions to the Company’s obligations to consummate the transactions contemplated by the Merger Agreement. In particular, Yotta will not be able to comply with the provision of its Amended and Restated Certificate of Incorporation that prohibits Yotta from consummating an initial business combination unless it has net tangible assets of at least $5,000,001 upon consummation of such initial business combination. This conflicts with Yotta’s representation in the Merger Agreement that its consummation of the transactions contemplated by the Merger Agreement will not conflict with its organizational documents. The Company also cited delays in the SEC registration process that are attributable to Yotta, which breached its covenant pursuant to the Merger Agreement to use its reasonable best efforts to take all actions reasonably necessary or advisable to consummate the transactions contemplated by Merger Agreement as promptly as reasonably practicable. Per the Merger Agreement, if one of the parties validly terminates the Merger Agreement there will be a Breakup Fee of $3,000,000 to be paid to them by the other party. The Breakup Fee is not intended to be a penalty, but instead is liquidated damages to compensate the party which requests the termination, to not have any further liability with respect to the Merger Agreement. As of this filing date, Yotta has not responded to the Company’s notice of termination and the Company has not sought payment of the Breakup Fee beyond the July 20^th notice.

F-2726

As a result of the termination of the Merger Agreement the related Deferred offering costs in current assets of $1,394,366 was expensed in professional fees in the year ended March 31, 2024.

The Merger Agreement had provided for aggregate consideration to be issued to securityholders of the Company of 17,500,000 shares (the “Closing Merger Consideration Shares”) of Yotta’s common stock, par value $0.0001 per share (“Yotta Shares”), to be issued at the effective time of the Merger (the “Effective Time”), plus an additional (i) 5,000,000 Yotta Shares if the Surviving Corporation has at least $15,000,000 in revenue during the fiscal year ended March 31, 2024 and (ii) 5,000,000 Yotta Shares if the Surviving Corporation has at least $30,000,000 in revenue during the fiscal year ended March 31, 2025 (collectively, the “Contingent Merger Consideration Shares”).

In accordance with the terms and subject to the conditions of the Merger Agreement, at the Effective Time each share of Common Stock outstanding or deemed outstanding pursuant to the provisions discussed immediately below as of immediately prior to the Effective Time will be converted into the right to receive its allocable portion of the Closing Merger Consideration Shares and the Contingent Merger Consideration Shares (to the extent the required revenue thresholds are met).

Pursuant to the terms of the Merger Agreement and agreements that, pursuant to the Merger Agreement, the Company would have entered into with holders of such convertible securities, such convertible securities would have been canceled prior to the closing of the Merger in exchange (except for the Series A Convertible Preferred Stock of the Company, par value $0.0001 per share (the “Series A Preferred”) for a cash payment or Yotta Shares as follows: (i) at the option of the holder thereof, each outstanding warrant to purchase shares of Common Stock would have been e canceled in exchange for a cash payment based on the value thereof or treated as exercised for shares of Common Stock, in each case based on an adjusted exercise price and as otherwise set forth in the Merger Agreement and/or the individual agreements, and if treated as exercised, converted into the right to receive such deemed shares of Common Stock’s allocable portion of the Closing Merger Consideration Shares and the Contingent Merger Consideration Shares; (ii) each outstanding share of Series F Convertible Preferred Stock of the Company, par value $0.0001 per share, would have been canceled and treated as if converted into shares of Common Stock at an adjusted conversion rate as set forth in the Merger Agreement and/or such individual agreements, and converted into the right to receive such deemed shares of Common Stock’s allocable portion of the Closing Merger Consideration Shares and the Contingent Merger Consideration Shares; and (iii) each outstanding share of Series E Convertible Preferred Stock of the Company, par value $0.0001 per share (the “Series E Preferred”), would have been canceled and treated as if converted into shares of Common Stock at an adjusted conversion rate as set forth in the Merger Agreement and/or such individual agreements, and converted into the right to receive such deemed shares of Common Stock’s allocable portion of the Closing Merger Consideration Shares and the Contingent Merger Consideration Shares. In addition, each holder of Series E Preferred would have been entitled to receive at the Effective Time an additional number of Closing Merger Consideration Shares as are necessary to ensure that the per-share value of the Yotta Shares that such stockholder is entitled to receive is not less than the per-share value (based on the effective purchase price) of the aggregate Yotta Shares then held by any Yotta stockholder after taking into account any newly-issued Yotta Shares that such Yotta stockholder acquires directly from Yotta prior to the closing of the Merger (the “Closing”) (which will reduce the number of Closing Merger Consideration Shares that will be issued to the Company’s other securities holders). The Series A Preferred would have been e cancelled and retired without any conversion thereof and for no consideration.

The Business Combination was expected to be accounted for as a reverse merger and recapitalization of NaturalShrimp into Yotta in accordance with GAAP because NaturalShrimp has been determined to be the accounting acquirer under ASC 805 under the no-redemption and full redemption scenarios. Under this method of accounting, Yotta will be treated as the “acquired” company for financial reporting purposes. Accordingly, the combined assets, liabilities and results of operations of NaturalShrimp will become the historical financial statements of NaturalShrimp Incorporated, and Yotta’s assets, liabilities and results of operations will be consolidated with NaturalShrimp beginning on the acquisition date. For accounting purposes, the financial statements of NaturalShrimp Incorporated will represent a continuation of the financial statements of NaturalShrimp with the transaction being treated as the equivalent of NaturalShrimp issuing stock for the net assets of Yotta, accompanied by a recapitalization. The net assets of Yotta will be stated at historical cost, with no goodwill or other intangible assets recorded. Operations prior to the Business Combination will be presented as those of NaturalShrimp in future reports of NaturalShrimp Incorporated.

NOTE 14 – SUBSEQUENT EVENTS

~~Subsequent~~Liquidation to the year ended March 31, 2024, the Company sold 72,852,004 shares of common stock at a net amount of approximately $528,000, at share prices of $0.007 through $0.008, in relation to the Equity Financing Agreement.Activities

OnDuring ~~April~~September 3,of 2024, ~~the~~Ampleo ~~Company~~Turnaround and ~~the~~Restructuring, ~~Investor~~LLC ~~entered~~was ~~into~~placed anas ~~Exchange~~the ~~Agreement~~receiver onover the ~~January~~Company’s ~~2023 Note~~assets. InFurther, ~~the~~during February ~~Exchange~~of ~~Agreement~~2025, the ~~remaining~~ ~~January~~receiver ~~2023~~filed ~~Note~~a ~~was~~motion ~~partitioned~~to ~~into~~sell aall ~~$92,700~~of ~~new~~the ~~promissory~~Company’s ~~note,~~assets ~~leaving~~to ~~the~~Streeterville ~~original~~and ~~January~~Bucktown ~~2023~~Capital ~~Note~~for ~~with~~ an ~~adjusted~~ ~~balance~~approximate credit bid of $~~221~~35.7 million and $100,~~018~~000 in cash. The ~~partitioned~~motion ~~note~~ was ~~exchanged~~approved ~~for~~on 10March 30,~~000,000~~ ~~shares~~2025 ofwith title to the ~~Company’s~~assets ~~common~~being transferred ~~stock~~on May 14, 2025. ~~The~~In ~~shares~~exchange offor ~~common stock~~the ~~issued~~transfer ~~had~~of athe ~~fair~~assets ~~value~~to ofcertain ~~$100~~creditors,~~000~~ ~~based~~which onincluded the ~~market~~Company’s ~~price~~fixed assets ofand certain intangible assets, the ~~shares~~restructured ofdebt ($033.~~010~~1 onmillion ~~the~~as ~~execution~~of ~~date~~March 31, ~~resulting~~2025) inand anBuckstown ~~excess~~ line of credit ($2.7~~,300~~ tomillion as beof ~~recognized~~March as31, a2025) ~~financing~~was ~~expense~~extinguished.

On April 23, 2024, the Company received a tranche of $100,000 under the SPA for 100 Series G Preferred Stock with a stated value of $120,000. The $20,000 discount will be accreted up to the redemption price over the oneF-~~year period until redemption.~~27

On July 3, 2024, the Company and the Investor entered into an Exchange Agreement on the Senior Note. In the Exchange Agreement the remaining Senior Note was partitioned into a $90,000 new promissory note, leaving the original Senior Note outstanding balance to be reduced by $90,000. The partitioned note was exchanged for 10,000,000 shares of the Company’s common stock. The shares of common stock issued had a fair value of $90,000 based on the market price of the shares of $0.009 on the execution date

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Filing Compare · NaturalShrimp Inc