Company: GRPS
Filing Date: 2025-10-15
Form Type: 10-Q
Source: 0001683168-25-007573
Chunk: 43

Company: Trans American Aquaculture, Inc
Filing Date: 2025-10-15
Form: 10-Q
Item: Part I, Item 2
Chunk 43
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30, 2024, when current liabilities
exceeded current assets by $4,175,913, an increase of $174,793.

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 $731.

Liquidity is also affected by notes to our shareholders.
At June 30, 2025, 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 June 30, 2024. The Company extended this due date to July 1, 2024, and plans to extend it again to December
31, 2025. Current discussions with noteholders are underway and we expect the noteholders to agree to this extension.

In February 2024, the Company
signed an unsecured promissory note with a lender for $111,600, bearing one-time interest at the rate of 13%, and maturing on four dates
beginning on August 30, 2024 and ending on November 30, 2024. The proceeds of this note were issued with an original issue discount of
$18,600, yielding net proceeds of $88,000. Upon full maturity, the Company will have paid a total of $126,108 of principal and interest
on this note.

 21 

Cash Flows from Operating Activities

During the three-months ended June 30, 2025, net
cash used in operating activities was $691,719, due mainly to a net loss of $204,038, an increase in accounts payable of $1,073,204 mostly
of an payroll liabilities, professional services and reclassification of notes payment from related parties, and an increase of $607,881
in accrued interest. By comparison, during the three-months ended June 30, 2024, net cash used in operating activities was $389,780, due
mainly to a net loss of $568,332, payroll liabilities, offset by an increase of $216,203 in accrued interest.

During the six-months ended June 30, 2025, net
cash used in operating activities was $716,809, due mainly to a net loss of $317,745, an increase in accounts payable of $