Trans American Aquaculture Reports Significant Revenue Growth, Net Loss in Latest Quarter

Trans American Aquaculture, Inc. (formerly Gold River Productions, Inc.) reported significant financial developments in its 10-Q filing for the period ending September 30, 2024. The company, which operates a land-based shrimp farming business in South Texas, experienced a notable increase in sales and service revenue, reporting $315,145 for the nine months ended September 30, 2024, compared to $0 for the same period in 2023. This marks a substantial revenue growth attributed to the commencement of operations and sales.

Despite the revenue increase, the company continues to face challenges in profitability. The net loss for the nine months ended September 30, 2024, was $(1,143,656), a slight improvement from a net loss of $(1,322,481) in the same period of the previous year. For the third quarter alone, the net loss was $(575,325), compared to $(768,218) in the same quarter of 2023. The cost of revenues for the nine months increased marginally to $419,851 from $400,000, while the cost of revenues for the third quarter decreased significantly to $196,552 from $400,000, reflecting improved operational efficiency.

The company’s financial position showed a decrease in total assets, which fell from $7,662,422 at the end of 2023 to $7,589,749 by September 30, 2024. Current liabilities increased, with accounts payable rising to $486,946 and accrued interest expense climbing to $1,154,126. The accumulated deficit also widened to $(4,153,796) from $(2,943,231) at the end of 2023, and total stockholders' equity decreased to $(1,587,793).

In terms of strategic developments, the company has been actively managing its debt obligations. As of September 30, 2024, it was in default on a significant farm property note totaling $4,845,024. A Deed in Lieu was signed on October 25, 2024, allowing the lender to forbear from foreclosure until November 30, 2024. The company has also engaged in various financing activities, including issuing convertible promissory notes and entering into a factoring agreement for accounts receivable.

The company’s liquidity remains a concern, with a cash balance of $0 as of September 30, 2024, down from $6,600 at the end of 2023. Current liabilities exceeded current assets by $4,777,659, an increase from $3,554,981 at the end of the previous fiscal year. The company continues to focus on developing its broodstock and ramping up shrimp harvest cycles, while also facing risks related to market conditions and production challenges.