Company: GRPS
Filing Date: 2025-07-17
Form Type: 10-Q
Source: 0001683168-25-005208
Chunk: 24

Company: Trans American Aquaculture, Inc
Filing Date: 2025-07-17
Form: 10-Q
Item: Part I, Item 1
Chunk 24
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 2024. We currently do not have sufficient cash to fund our operations for the next 12
months and we will require working capital to complete development and production, testing and marketing of our products and to pay for
ongoing operating expenses. We anticipate adding management positions for corporate development and the corresponding operations of the
Company, but this will not occur prior to obtaining additional capital. Currently, competitively priced loans from banks or other lending
sources for lines of credit or similar short-term borrowings are not available to us. We have been able to raise working capital to fund
operations through the issuances of convertible preferred stock to GHS, factoring our receivables, and borrowing funds from employees
of the Company. As of March 31, 2025, our current liabilities exceeded our current assets by $3,435,668 as compared to March 31, 2024,
when current liabilities exceeded current assets by $3,750,007, an decrease of $314,339.

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 March 31, 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 March 31, 2024. The Company extended this due date to July 1, 2024, and plans to extend it again to December
31, 2025. Current discussion 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.

Cash Flows from Operating Activities

During the three-months ended March 31, 2025,
net cash used in