Company: GRPS
Filing Date: 2025-07-17
Form Type: 10-K
Source: 0001683168-25-005173
Chunk: 426

Company: Trans American Aquaculture, Inc
Filing Date: 2025-07-17
Form: 10-K
Item: Item 6
Chunk 426
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 2023. We currently do not have sufficient cash to fund our operations for the
next 12 months and we will require working capital to complete development and production, testing and marketing of our products and to
pay for ongoing operating expenses. We anticipate adding management positions for corporate development and the corresponding operations
of the Company, but this will not occur prior to obtaining additional capital. Currently, competitively priced loans from banks or other
lending sources for lines of credit or similar short-term borrowings are not available to us. We have been able to raise working capital
to fund operations through the issuances of convertible preferred stock to GHS, factoring our receivables, and borrowing funds from employees
of the Company. As of December 31, 2024, our current liabilities exceeded our current assets by $3,351,602 as compared to 2023 when current
liabilities exceeded current assts by $3,478,423, a decrease of $126,821.

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 Company is also a party to an SBA Loan through
a bank in the original amount of $150,000 bearing interest at 3.75% per annum, due in 2050, yielding a monthly payment amount of $719.

Liquidity is also affected by notes to our shareholders.
At December 31, 2024, shareholders have loaned the Company approximately $1,646,636 which notes accrue interest at ranging from 12.0%
to 18% per annum and were due July 1, 2024. No additional extensions have been completed as of yet, and the note are in default, however,
to date, no one has called them due.

 16 

Cash Flows from Operating Activities

During the year ended December 31, 2024, net cash
used in operating activities was $2,996,776, an increase usage of $1,888,864 resulting largely