Trans American Aquaculture, Inc. (Ticker: GRPS) informed investors on July 17, 2026, that its previously issued financial statements for the fiscal year ended December 31, 2024, should no longer be relied upon. The decision follows discussions between company management and its independent auditor, Boladale Lawal & CO, who advised that the statements contained material errors requiring a restatement.
Misclassified Liabilities and Other Errors
The errors, identified during the preparation of the company's year-end audit, primarily involve the misclassification of certain amounts within current-liability classifications. The company also noted that additional adjustments were needed that were not reflected in the original filing. The principal corrections, as of December 31, 2024, affect accrued interest expense, related-party notes payable, the current and long-term portions of notes payable, other accrued expenses, and accumulated depreciation.
The restatement also incorporates the accounting treatment for a December 2, 2024 deed in lieu of foreclosure executed by Kings Aqua Farm, LLC. That transaction required a write-off of the farm property, the extinguishment of the associated note payable, and a broodstock inventory write-down. After analyzing the errors under FASB ASC 250, the company concluded they were material to the previously issued financial statements.
The affected filing is the company's Annual Report on Form 10-K for the fiscal year ended December 31, 2024, originally filed with the SEC on July 17, 2025. The company stated that all related press releases, earnings releases, and investor communications describing that period should also no longer be relied upon. Trans American Aquaculture intends to file an amended Form 10-K/A to restate the consolidated balance sheets, statements of operations, statements of shareholders' equity, and statements of cash flows.
Material Weaknesses in Internal Controls
Alongside the restatement, management concluded that the company's disclosure controls and procedures were not effective as of December 31, 2024. The filing cited material weaknesses in internal control over financial reporting, including the absence of a functioning audit committee, insufficient documentation of internal controls and procedures, and inadequate corporate governance to ensure that accounting for contractual agreements complies with all relevant terms.
The company has begun implementing remediation measures. These include engaging a third-party consulting firm to assist with internal control documentation and strengthening corporate governance and review procedures. The filing was signed by Adam Thomas, the company's Chief Executive Officer, who also serves as its principal financial and accounting officer.
This disclosure adds to a pattern of reporting difficulties for the company. Trans American Aquaculture previously notified the SEC that it was unable to file its quarterly report for the period ended March 31, 2026, on time, citing an incomplete review process with its auditor. The company's annual report for the fiscal year ended December 31, 2025, also remains unfiled.