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

Company: Trans American Aquaculture, Inc
Filing Date: 2025-10-15
Form: 10-Q
Item: Part I, Item 1
Chunk 25
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. 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 purposes. So, during the year,
our inventory can consist of shrimp held for sale, broodstock held for sale and broodstock used for restocking purposes.

Shrimp farming is a seasonal business. On a calendar
year basis, we typically use the broodstock to breed our larvae shrimp during the first quarter so that by spring the shrimp are held
in large post-larvae tanks for development. Later, in early summer, the shrimp are transferred to ponds where they complete the grow
out process over the next five to nine months. This can vary if we have more than one cycle of shrimp. Grow out may begin in the second
in the second quarter, with a second cycle grow out beginning in early summer. The first harvest cycle can occur in early fall with the
second harvest cycle occurring in November or December. During 2023, we had one cycle and harvest occurred in early November 2023. During
2024, we did not stock, nor did we have a harvest. In 2025, we have not stocked the ponds or had a harvest. At this time, we are only
maintaining the broodstock lines. We plan to refresh the lines in 4Q25, which will depend on investment funds raised.

Our shrimp inventory is valued at lower of cost
or the net realizable value on a first-in, first-out basis.

The inventory at June 30, 2025 consists of live
broodstock animals. Included in this amount are costs and charges directly and indirectly incurred in bringing shrimp inventory to its
existing condition and location as noted in FASB ASC 330-10-30.

At June 30, 2025, the broodstock shrimp for the
2025 harvest had been identified and segregated from consumable shrimp in outdoor ponds to indoor tanks. The table below summarizes inventory
at June 30, 2025 and 2024.

    June 30,  2025  
    June 30,