NaturalShrimp Liquidates Assets Amid Debt Defaults, Ceases Operations

TL;DR

**NaturalShrimp is dead in the water, its assets sold off for $35.7 million in debt extinguishment, leaving investors with nothing but a shell.**

AI Summary

NaturalShrimp Inc., an aquaculture technology company, faced significant financial distress, culminating in a receivership and the sale of substantially all its assets. On September 4, 2024, Lenders, Streeterville Capital, LLC and Bucktown Capital, LLC, filed a motion for a receiver due to loan defaults. An order was entered on September 9, 2024, appointing Amplo Turnaround and Restructuring, LLC as receiver. On March 30, 2025, the Utah State Court approved the sale of assets to Streeterville and Bucktown Capital (or their designees NV Purchaser, IA Purchaser, and TX Purchaser) for a credit bid of approximately $35,703,789.87 and $100,000 cash. Title to the assets, including fixed assets, patents, and license agreements, was transferred on May 14, 2025, extinguishing the outstanding debt. As of this date, NaturalShrimp Inc. ceased its current business operations. The company's financial statements reflect a going concern basis until March 30, 2025, and a liquidation basis as of March 31, 2025.

Why It Matters

NaturalShrimp's liquidation underscores the high risks in capital-intensive aquaculture startups, especially those reliant on proprietary technology. For investors, this represents a near-total loss, highlighting the importance of scrutinizing debt structures and operational viability. Employees and customers are directly impacted by the cessation of business, while the broader market sees a cautionary tale about the challenges of scaling innovative but unproven technologies in competitive food production sectors. The failure to service a $35.7 million debt despite patented technology reveals significant operational or market hurdles.

Risk Assessment

Risk Level: high — The company is at a high risk level because it has ceased operations and entered liquidation. The Utah State Court approved the sale of substantially all assets on March 30, 2025, for a credit bid of approximately $35,703,789.87 and $100,000 cash, extinguishing its debt to Streeterville Capital, LLC and Bucktown Capital, LLC. This means the company no longer has a business to operate.

Analyst Insight

Investors should consider this a complete loss for NaturalShrimp Inc. shares, as the company has liquidated its core assets and ceased operations. Focus should shift to understanding the implications for the aquaculture technology sector and the viability of similar high-density, closed-system farming models.

Financial Highlights

debt To Equity

Not Disclosed

revenue

Not Disclosed

operating Margin

Not Disclosed

total Assets

Not Disclosed

total Debt

Not Disclosed

net Income

Not Disclosed

eps

Not Disclosed

gross Margin

Not Disclosed

cash Position

Not Disclosed

revenue Growth

Not Disclosed

Key Numbers

• $35.7M — Credit bid for asset sale (Represents the primary consideration for the sale of substantially all assets, extinguishing debt.)
• $100,000 — Cash component of asset sale (Additional cash paid by purchasers for assets.)
• March 30, 2025 — Date of asset sale approval (Marks the point when liquidation became imminent and the company ceased going concern operations.)
• May 14, 2025 — Date of asset title transfer (The date when ownership of assets officially transferred, and the company ceased current business operations.)
• 1,277,546,746 — Shares outstanding (As of November 3, 2025, indicating significant dilution prior to liquidation.)
• $6,648,639 — Aggregate market value of common equity held by non-affiliates (Computed on November 4, 2024, at $0.0054 per share, showing low market capitalization before liquidation.)

Key Players & Entities

• NaturalShrimp Inc. (company) — registrant and aquaculture technology company
• Streeterville Capital, LLC (company) — lender and asset purchaser
• Bucktown Capital, LLC (company) — lender and asset purchaser
• Amplo Turnaround and Restructuring, LLC (company) — court-appointed receiver
• NV Purchaser (company) — designee for asset purchase
• IA Purchaser (company) — designee for asset purchase
• TX Purchaser (company) — designee for asset purchase
• $35,703,789.87 (dollar_amount) — credit bid for asset sale
• $100,000 (dollar_amount) — cash component of asset sale
• Utah State Court (regulator) — approved asset sale

FAQ

Risk Factors

• Receivership and Asset Sale [high — financial]: The company entered receivership on September 9, 2024, due to loan defaults. Substantially all assets were sold on March 30, 2025, for a credit bid of approximately $35.7 million and $100,000 cash. This event signifies the cessation of current business operations and the transition to a liquidation basis.
• Going Concern Uncertainty [high — financial]: The company's financial statements reflected a going concern basis until March 30, 2025. Following the asset sale approval, the basis shifted to liquidation, indicating a complete loss of operational viability and the inability to meet future obligations.
• Cessation of Business Operations [high — operational]: As of May 14, 2025, when asset title transferred, NaturalShrimp Inc. ceased its current business operations. This means the company no longer has the infrastructure or assets to continue its aquaculture technology business.
• Loan Defaults and Receivership Filing [high — legal]: Lenders Streeterville Capital, LLC and Bucktown Capital, LLC filed a motion for a receiver on September 4, 2024, due to loan defaults. This legal action directly led to the company's operational shutdown and asset liquidation.
• Significant Dilution [medium — financial]: As of November 3, 2025, there were 1,277,546,746 shares outstanding. This large number of shares, coupled with a low market value prior to liquidation ($0.0054 per share on November 4, 2024), suggests significant dilution and a lack of investor confidence.

Industry Context

NaturalShrimp Inc. operated in the aquaculture technology sector, focusing on indoor, controlled-environment shrimp production. This industry aims to provide sustainable and antibiotic-free seafood. However, the company's specific situation highlights the significant financial risks and operational challenges inherent in scaling such technologies, especially when reliant on external financing and facing loan defaults.

Regulatory Implications

The company's receivership and asset sale were driven by financial defaults rather than direct regulatory non-compliance. However, companies in the aquaculture sector must adhere to environmental regulations, food safety standards, and potentially animal welfare guidelines, which could pose future risks if operations were to resume under new ownership.

What Investors Should Do

1. Review asset sale details and liquidation proceeds.
2. Analyze the timing and reasons for loan defaults.
3. Assess the value of intellectual property (patents).
4. Monitor any future activities of the acquiring entities (Streeterville Capital, Bucktown Capital).

Key Dates

• 2024-09-04: Lenders file motion for receiver — Initiated the process leading to the company's receivership and eventual asset sale due to loan defaults.
• 2024-09-09: Receiver appointed — Amplo Turnaround and Restructuring, LLC was appointed as receiver, taking control of the company's assets and operations.
• 2025-03-30: Asset sale approved — Utah State Court approved the sale of substantially all assets to lenders or their designees, marking the end of the company's going concern status.
• 2025-05-14: Asset title transfer — Ownership of assets transferred, officially ceasing NaturalShrimp Inc.'s current business operations and extinguishing outstanding debt.
• 2025-03-31: Financial reporting basis change — Company's financial statements shifted from a going concern basis to a liquidation basis, reflecting its operational cessation.

Glossary

Receivership

A legal process where a court appoints a receiver to take control of a company's assets and operations, typically due to financial distress or default. (NaturalShrimp Inc. entered receivership due to loan defaults, leading to the sale of its assets.)

Credit Bid

A bid made by a creditor in an asset sale where the creditor uses the debt owed to them as payment, rather than providing new cash. (The primary consideration for the sale of NaturalShrimp's assets was a credit bid of approximately $35.7 million by the lenders.)

Going Concern Basis

An accounting assumption that a company will continue to operate for the foreseeable future and be able to meet its financial obligations. (NaturalShrimp's financial statements were prepared on a going concern basis until the asset sale approval, after which it shifted to a liquidation basis.)

Liquidation Basis

An accounting basis used when a company is expected to liquidate its assets and cease operations, focusing on the net realizable value of assets. (NaturalShrimp adopted the liquidation basis as of March 31, 2025, following the approval of its asset sale.)

Proprietary Technology

Technology that is owned and controlled by a company, often protected by patents, providing a competitive advantage. (NaturalShrimp's business was based on proprietary, patented platform technologies for aquaculture.)

Year-Over-Year Comparison

Information regarding comparison to a previous filing is not available in the provided text. The context focuses solely on the final stages of NaturalShrimp Inc.'s operational life, culminating in receivership and asset sale, rather than year-over-year performance metrics.

Key Financial Figures

• $0.0001 — res of common stock with a par value of $0.0001 (Title of class) Indicate by check
• $0.0054 — common equity was last sold (which was $0.0054 per share on November 4, 2024). For pur
• $35,703,789.87 — imited liability company, for a roughly $35,703,789.87 credit bid (based on a secured and admi
• $100,000 — red and administrative claim basis) and $100,000 cash, pursuant to the terms and conditi
• $35.7 million — apital for an approximate credit bid of $35.7 million and $100,000 in cash. The motion to sel
• $10,000,000 — On December 17, 2020, we acquired for $10,000,000 certain assets from VeroBlue Farms USA,
• $3,000,000 — he Patent and the Common Shares totaled $3,000,000 in cash and 13,861,386 shares of Natura
• $7,000,000 — of NaturalShrimp common stock valued at $7,000,000 for a total consideration of $10,000,00
• $2,500,000 — ydrenesis Delta Systems, LLC the sum of $2,500,000 (staged over a period of time, with $1,
• $1,250,000 — 000 (staged over a period of time, with $1,250,000 still due), plus a 12.5% royalty for th
• $1,000,000 — 00, comprised of $2,500,000 at closing, $1,000,000 within 60 days and 6,500,000 shares of
• $2,000,000 — mpany decided to begin an approximately $2,000,000 facility renovation, demolishing the in
• $400,000 — 000 gallons) at a cost of approximately $400,000, allowing complete production flexibili

Filing Documents

• form10-k.htm (10-K) — 1210KB
• ex31-1.htm (EX-31.1) — 19KB
• ex31-2.htm (EX-31.2) — 19KB
• ex32-1.htm (EX-32.1) — 7KB
• ex32-2.htm (EX-32.2) — 7KB
• form10-k_001.jpg (GRAPHIC) — 10KB
• 0001493152-25-020857.txt ( ) — 6662KB
• shmp-20250331.xsd (EX-101.SCH) — 54KB
• shmp-20250331_cal.xml (EX-101.CAL) — 66KB
• shmp-20250331_def.xml (EX-101.DEF) — 245KB
• shmp-20250331_lab.xml (EX-101.LAB) — 489KB
• shmp-20250331_pre.xml (EX-101.PRE) — 372KB
• form10-k_htm.xml (XML) — 707KB

BUSINESS

ITEM 1. BUSINESS 4

RISK FACTORS

ITEM 1A. RISK FACTORS 10

UNRESOLVED STAFF COMMENTS

ITEM 1B. UNRESOLVED STAFF COMMENTS 10

CYBERSECURITY

ITEM 1C. CYBERSECURITY 10

PROPERTIES

ITEM 2. PROPERTIES 11

LEGAL PROCEEDINGS

ITEM 3. LEGAL PROCEEDINGS 11

MINE SAFETY DISCLOSURES

ITEM 4. MINE SAFETY DISCLOSURES 11 PART II

MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES

ITEM 5. MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES 12

[RESERVED]

ITEM 6. [RESERVED] 12

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS 12

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK 14

FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA 15

CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE

ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE 15

CONTROLS AND PROCEDURES

ITEM 9A. CONTROLS AND PROCEDURES 15

OTHER INFORMATION

ITEM 9B. OTHER INFORMATION 16

DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS

ITEM 9C. DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS 16 PART III

DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE

ITEM 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE 17

EXECUTIVE COMPENSATION

ITEM 11. EXECUTIVE COMPENSATION 20

SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS

ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS 23

CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE

ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE 23

PRINCIPAL ACCOUNTANT FEES AND SERVICES

ITEM 14. PRINCIPAL ACCOUNTANT FEES AND SERVICES 25 PART IV

EXHIBITS AND FINANCIAL STATEMENT SCHEDULES

ITEM 15. EXHIBITS AND FINANCIAL STATEMENT SCHEDULES 26

FORM 10-K SUMMARY

ITEM 16. FORM 10-K SUMMARY 26

SIGNATURES

SIGNATURES 27 2 FORWARD-LOOKING 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

Business

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 f

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