Company: GRPS
Filing Date: 2025-07-17
Form Type: 10-K
Source: 0001683168-25-005173
Chunk: 7

Company: Trans American Aquaculture, Inc
Filing Date: 2025-07-17
Form: 10-K
Item: Item 1
Chunk 7
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 source of our nauplii (the first development
stage of shrimp) will be at our hatchery and maturation operation. We believe that it will be important to develop and maintain our own
genetic linage to ensure differentiation and genetic variability to grow stronger, healthier shrimp. Since the post-larvae development
stage is a relatively short on (21 days), it will allow us to quickly develop genetically superior shrimp.

Sales and Distribution

Historically we have sold our products directly to
the companies that are processing the shrimp. They then take this shrimp and sell it to big box retailers. Our plan for this year is no
different and we had multiple offers for our shrimp, ultimately settling on one with the best growth probability. We generate revenue
by selling shrimp. Our plan as we expand our production capacity is to work directly with big box retailers such as supermarkets. To manage
our exposure, we solicit multiple offers for our shrimp. At our current capacity, it is more efficient for us to sell to one buyer; however,
in the future we will look to expand that, as needed.

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 2022.4 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.

_____________________________

4 https://civileats.com/2023/06/20/cheap-imports-leave-us-shrimpers-struggling-to-compete/#:~:text=The%20U.S.%20Food

%20and%20Drug,before%20entering%20the%20U.S.%20market

 5 

Shrimp Life Cycle