Company: GRPS
Filing Date: 2025-10-15
Form Type: 10-Q
Source: 0001683168-25-007573
Chunk: 39

Company: Trans American Aquaculture, Inc
Filing Date: 2025-10-15
Form: 10-Q
Item: Part I, Item 2
Chunk 39
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100% free of antibiotics and hormones, to the U.S. domestic
seafood market. We believe we are a leading aquaculture company due to Best Aquaculture Practices (“BAP”) guidelines,1 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 guidelines2 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.

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
2022.3 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 business by lowering commodity
prices. This could reduce the value of inventories, held both by us and by our customers, and cause many of our customers to reduce their
orders for new products until they can dispose of their higher-cost inventories.

Going Concern Uncertainty

As shown in the accompanying financial statements,
during the three-months ended June 30, 2025, we reported a net loss of $204,038