Company: GRPS
Filing Date: 2025-10-15
Form Type: 10-Q
Source: 0001683168-25-007573
Chunk: 46

Company: Trans American Aquaculture, Inc
Filing Date: 2025-10-15
Form: 10-Q
Item: Part I, Item 2
Chunk 46
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5. In light
of the material weakness in internal control over financial reporting, we completed substantive procedures, including validating the
completeness and accuracy of the underlying data used for accounting prior to filing this Form 10-Q.

These additional procedures have allowed us to
conclude that, notwithstanding the material weakness in our internal control over financial reporting, the consolidated financial statements
included in this Form 10-Q fairly present, in all material respects, our financial position, results of operations and cash flows for
the periods presented in conformity with accounting principles generally accepted in the United States of America.

Changes in Internal Control Over Financial Reporting

There has been no change in the Company’s
internal control over financial reporting, as defined in Rules 13a-15(f) of the Exchange Act, during our quarter ended June 30, 2025,
that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

 23 

PART II—OTHER INFORMATION

Item 1. Legal Proceedings.

On December 13, 2024,
due to a note holder recording a deed in lieu foreclosure, on December 2nd, 2024, TAA filed for Chapter 11 bankruptcy protection under
the United States Bankruptcy Code, in the United States Bankruptcy Court for the Southern District of Texas (Case # 24-10217). TAA voluntarily
filed for Chapter 11 Bankruptcy to protect the assets of the company (shrimp broodstock and key property, plant, and equipment)
due to threats being made by the former farm note holder (Kings Aqua Farm LLC) in which TAA operated on. On December 2, 2024, Kings Aqua
Farm LLC filed a Deed in Lieu (“DIL”) of Foreclosure due to non-payment by Trans American Aquaculture. The land was conveyed
back to Kings Aqua Farm because of the DIL filing. Over the next two weeks, various threats were made by Kings Aqua Farm on the assets
of TAA, which are paramount to the survival and future of the company. To protect those key assets and any future business, TAA elected
to file a voluntary Chapter 11 Bankruptcy.

The bankruptcy plan
is currently being finalized between TAA management, its board of directors, and legal counsel. The plan confirmation hearing is scheduled
for August 18, 2025, at which time, we will present the re-organization plan for the company.