Company: GRPS
Filing Date: 2025-07-17
Form Type: 10-K
Source: 0001683168-25-005173
Chunk: 423

Company: Trans American Aquaculture, Inc
Filing Date: 2025-07-17
Form: 10-K
Item: Item 6
Chunk 423
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 market.
We believe we are a leading aquaculture company due to Best Aquaculture Practices (“BAP”) guidelines,14
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 guidelines15
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.

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14 https://www.bapcertification.org/Downloadables/pdf/BAP%20-%20BAP%20Farm%20Standard%20-%20Issue%203.1%20-%2007-February-2023.pdf

15 https://www.bapcertification.org/Downloadables/pdf/BAP%20-%20BAP%20Farm%20Standard%20-%20Issue%203.1%20-%2007-February-2023.pdf

 14 

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 2022.16
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 financing capacity and our prospects for commencing and sustaining any
economic commercial production. In addition, increased availability of imported shrimp can affect our