Company: GRPS
Filing Date: 2025-07-17
Form Type: 10-Q
Source: 0001683168-25-005208
Chunk: 19

Company: Trans American Aquaculture, Inc
Filing Date: 2025-07-17
Form: 10-Q
Item: Part I, Item 1
Chunk 19
---
 any adjustments that might be necessary if the
business plan cannot be implemented or if additional capital cannot be raised, either of which could result in the Company not being able
to continue as a going concern.

The Company is in the process of raising additional
capital to support the completion of the developmental stage activities and ramp up ongoing full shrimp harvest cycles and establish its
customer base. Therefore, the Company’s activities are subject to significant risks and uncertainties, including failing to secure additional
funding to operationalize the Company’s current technology.

 15 

Item 2. Management’s Discussion and Analysis of Financial
Condition and Results of Operations

This Management’s
Discussion and Analysis of Financial Condition and Results of Operations contain certain forward-looking statements. Historical results
may not indicate future performance. Our forward-looking statements reflect our current views about future events; are based on assumptions
and are subject to known and unknown risks and uncertainties that could cause actual results to differ materially from those contemplated
by these statements. We undertake no obligation to publicly update or revise any forward-looking statements, including any changes that
might result from any facts, events, or circumstances after the date hereof that may bear upon forward-looking statements. Furthermore,
we cannot guarantee future results, events, levels of activity, performance, or achievements.

Critical Accounting Policies

The following discussions are based upon our financial
statements and accompanying notes, which have been prepared in accordance with GAAP Financial Measures of the United States.

The preparation of these financial statements
requires management to make estimates, judgments and assumptions that affect the reported amounts of assets, liabilities, revenues and
expenses, and related disclosures of contingencies. We continually evaluate the accounting policies and estimates used to prepare the
financial statements. We base our estimates on historical experiences and assumptions believed to be reasonable under current facts and
circumstances. Actual amounts and results could differ from these estimates made by management.

Accounting for Our Shrimp Inventory

Our inventory of shrimp is divided into shrimp
held for sale and broodstock shrimp. Broodstock are shrimp that are used for breeding purposes; selected for their genetic, disease-free
and size attributes they can be more valuable than shrimp held for sale. We collect broodstock from the biomass just before the harvest
and segregate them from the shrimp that will be harvested and sold. Broodstock, because of their higher value, may be sold to other shrimp
farmers in the United States and overseas. We also keep a number of broodstock for our own restocking