Company: GRPS
Filing Date: 2025-10-15
Form Type: 10-Q
Source: 0001683168-25-007573
Chunk: 11

Company: Trans American Aquaculture, Inc
Filing Date: 2025-10-15
Form: 10-Q
Item: Part I, Item 1
Chunk 11
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 behalf of third parties.
To determine revenue recognition, the Company performs the following five steps: (1) identify the contract with customer; (2) identify
the performance obligations in contract; (3) determine the transaction price; (4) allocate the transaction price to the performance obligation
in the contract; and (5) recognize revenues when (or as) the entity satisfies a performance obligation.

The Company recognizes revenue as a single performance
obligation when it transfers its products to customers, being when the goods are shipped and transfers to a buyer and when performance
obligation under contracted sales are completed.

Advertising and Promotion

All costs associated with advertising and promoting
the Company’s goods and services are expensed in the year incurred.

Concentrations of Credit Risk

The Company’s financial instruments that
are exposed to credit risk consist primarily of temporary cash investments and accounts receivable.

The Company maintains its cash balances at a
large financial institution. At times such balances may exceed federally insured limits. The Company has not experienced any losses in
an account. The Company believes it is not exposed to any significant credit risk on cash and had no balances in excess of the $250,000 FDIC
limit for the period ended June 30, 2025.

For the quarter ending June 30th, 2025 and 2024,
two and one customer, respectively, accounted for 100% of total revenues earned.

The Company’s sole source of expected future
revenue consists of the sale of a single live product which requires substantial care. Production risks such as weather, disease
and other factors could affect the Company’s ability to realize revenue from its inventory stock.

Subsequent Events

In preparing these consolidated financial statements,
the Company has evaluated events and transactions for potential recognition or disclosure through October 14, 2025, the date the consolidated
financial statements were issued.

 10 

On March 28, 2025, the Company entered into a
Securities Purchase Agreement with GHS (the “March 2025 SPA”) pursuant to which the Company agreed to sell GHS 114 shares
of Series D.

Preferred Stock for $104,000 ($1,000 for
each share of Series D Preferred Stock and ten commitment shares). At the initial closing, GHS purchased 36 shares ($1,000 per
share of Series D Preferred Stock). Additional Closings will be for the purchase of Preferred Shares as follows: (a) two