Company: GRPS
Filing Date: 2025-10-16
Form Type: 10-Q/A
Source: 0001683168-25-007611
Chunk: 25

Company: Trans American Aquaculture, Inc
Filing Date: 2025-10-16
Form: 10-Q/A
Chunk 25
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, approximately 4,415 animals
of broodstock will be used to populate our next harvest in 2026. The cost of the broodstock was reclassified to broodstock held for restocking
on a pro rata basis of cost per pound of the total biomass of shrimp held for sale. Subsequent costs will be allocated in accordance
with ASC 330-10-30.

Business Overview

Founded in 2017, we are a leading aquaculture
company that provides premium quality, farm-raised pacific white shrimp, 100% free of antibiotics and hormones, to the U.S. domestic
seafood market. We believe we are a leading aquaculture company due to Best Aquaculture Practices (“BAP”) guidelines,1 considering
the rarity of the standards in the U.S. Although we are not currently in full compliance with BAP guidelines, we are working towards
full compliance. At the moment, we adhere to BAP guidelines as part of our operating and production model. Grown at our 1,880-acre farm
located in Rio Hondo, Texas, on the largest scale aquaculture farm in the U.S., our shrimp are meticulously raised to exceed in line
with industry best practices according to BAP guidelines2 using only authentic, sustainable practices. Within our controlled facility,
each harvest is responsibly raised and cultivated onsite with minimal ecological footprint, promising our customers a superior product
developed from the highest standard of care.

We have and will continue to utilize superior
genetic linage broodstock for cultivation of own post larvae in our onsite genetics, maturation and hatchery facilities. These facilities
allow us to continually develop animals with increasing growth rates, lower mortality, and stronger disease resistance. We began formal
production runs in 2018 and to date have produced almost one million lbs. of shrimp for consumption.

Recent trends in the shrimp industry, including
that, according to preliminary 2023 data from the National Marine Fisheries Service, shrimp prices have dropped as much as 44% since
2022.3 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