10-Q: NaturalShrimp Q3 2025 Financial Liquidation Update

NaturalShrimp reports its financial status under liquidation basis following the transfer of substantially all assets to creditors.

Summary

• The company is operating under the liquidation basis of accounting as of December 31, 2025.
• Substantially all fixed and intangible assets were transferred to creditors (Streeterville and Bucktown Capital) on May 14, 2025, to settle approximately $36 million in debt.
• Net liabilities in liquidation totaled $8,913,505 as of December 31, 2025.
• The company has entered into an agreement with Hydrenesis, Inc. in March 2026 to pivot toward aquaculture and water treatment technology commercialization.
• The company reported a net loss of $6,285,201 for the nine months ended December 31, 2024, under the going concern basis.

Sentiment

Score: 2

Explanation: StockSavvy.ai views this as a highly distressed situation where the company has lost its core assets and is attempting a speculative pivot to survive.

Positives

• Successful extinguishment of approximately $36 million in debt through the transfer of assets.
• New strategic direction established via an Intellectual Property Acquisition and Management Transition Agreement with Hydrenesis, Inc.

Negatives

• The company has effectively liquidated its primary revenue-generating assets.
• Reported material weaknesses in internal control over financial reporting, including lack of segregation of duties and absence of an audit committee.
• Significant net liabilities of $8,913,505 remain as of December 31, 2025.
• Limited liquidity with only $12,239 in cash as of December 31, 2025.

Risks

• Uncertainty regarding the ability to settle remaining outstanding liabilities.
• Uncertainty regarding the timeline for completing the liquidation process.
• Material weaknesses in internal controls may lead to inaccurate financial reporting.
• The agreement with Hydrenesis, Inc. had not been fully consummated as of the filing date.

Future Outlook

The company intends to transition operations toward the commercialization of aquaculture and water treatment technologies through a new agreement with Hydrenesis, Inc., involving the issuance of new preferred stock series and restructuring of legacy obligations.

Management Comments

• Management acknowledges that disclosure controls and procedures were not effective as of December 31, 2025, due to material weaknesses.
• The company is currently working on a plan with existing creditors to settle remaining outstanding balances.

Industry Context

StockSavvy.ai notes that this filing represents a total corporate pivot following a failed attempt to scale high-density shrimp production, a sector characterized by high capital intensity and significant operational risk.

Comparison to Industry Standards

• The company's failure to maintain going concern status highlights the extreme difficulty of achieving profitability in land-based recirculating aquaculture systems (RAS) at scale.
• The reliance on credit bids and receivership is a common outcome for distressed micro-cap biotech/agritech firms unable to secure traditional equity financing.

Corporate Governance

Legal Proceedings

• The company states it is not involved in any legal proceedings as of the filing date, noting the Streeterville/Bucktown matter is settled.

Related Party Transactions

• Approximately $3.0 million of the $8.9 million in outstanding liabilities as of December 31, 2025, is owed to related parties.

Stakeholder Impact

• Shareholders face significant dilution and restructuring of legacy securities.
• Creditors have taken ownership of substantially all company assets.
• Employees and operations are subject to the transition toward new technology commercialization.

Next Steps

• Finalize and consummate the agreement with Hydrenesis, Inc.
• File Certificates of Designation for Series P, Series P-2, and Series L Preferred Stock with the Nevada Secretary of State.
• Restructure, amend, or cancel legacy securities and liabilities.

Key Dates

Recommendation

The company has undergone a liquidation of its primary assets and is currently a shell entity attempting a pivot. The high level of debt, material weaknesses in internal controls, and history of financial distress make this an extremely high-risk investment.

Keywords

NaturalShrimp, Liquidation, Aquaculture, Receivership, Debt Restructuring, Biotechnology