Terra Tech Corp OTCMKTS: TRTC Reports Financial Results for the First Quarter of 2019
Terra Tech Corp OTCMKTS: TRTC operates through multiple subsidiary businesses including: Blm, IVXX Inc., Edible Garden, and MediFarm LLC. Blm’s retail and medical cannabis facilities provide the highest quality medical cannabis to patients who are looking for alternative treatments for their chronic medical conditions as well as premium cannabis to the adult-use market in Nevada and California. Blm offers a broad selection of cannabis products including; flowers, concentrates and edibles through its multiple California and Nevada locations. IVXX, Inc. is a wholly-owned subsidiary of Terra Tech that produces cannabis-extracted products for regulated cannabis dispensaries throughout California and dispensaries in Nevada. The Company’s wholly-owned subsidiary, Edible Garden, cultivates a premier brand of local and sustainably grown hydroponic produce, sold through major grocery stores such as ShopRite, Walmart, Ahold, Aldi, Meijer, Kroger, Stop & Shop and others nationwide. Terra Tech’s MediFarm LLC subsidiaries are focused on medical and adult-use cannabis cultivation and permitting businesses throughout Nevada.
Terra Tech Corp OTCMKTS: TRTC On May 9, 2019 announced its financial results for the period ended March 31, 2019.
Derek Peterson, Chief Executive Officer of Terra Tech, commented, “In the first quarter of 2019 we made meaningful headway both implementing our restructuring strategy and further entrenching ourselves in the California market. All material construction at the Hegenberger cultivation facility in Oakland is complete, and we anticipate it being fully operational upon receipt of licensing approval from the State. This will enable us to ramp production of our IVXX premium wholesale cannabis brand in California.”
“We also opened our newest Blm dispensary in San Leandro, California, a prominent suburb city of San Francisco and Oakland. In the short time since opening, the dispensary has generated consistent medical foot traffic and we expect sales at this location to continue to grow throughout the year, driven by the start of sales to adult users as of May 2019, and increased brand recognition in the area. Moreover, we are working on several growth initiatives that are expected to generate new sources of revenue for the Company, including opening a vertically integrated cannabis complex to host large-scale, cannabis themed events at our East Dyer Road location later this year,” continued Mr. Peterson.
“Terra Tech is engaged in a fundamental restructuring to improve profitability and build value for our shareholders. Following a comprehensive review of the Company’s assets and their respective performance, we are pursuing a strategy to redeploy certain assets in strategic locations where we believe they have the potential to produce greater returns. To advance this strategy, we have entered into an asset purchase agreement with Picksy LLC, a Nevada limited liability company to sell our Desert Inn Road retail dispensary for $10 million. This strategy is expected to build a stronger, more efficient business based around premium quality, recognizable brands. We are pleased with our progress working toward these strategic objectives,” concluded Mr. Peterson.
For the period ending March 31, 2019, the Company generated revenues of approximately $7.4 million, compared to approximately $8.6 million for the first quarter ending March 31, 2018, a decrease of approximately $1.3 million. The decrease was primarily due to the significant level of taxes that the State of California placed on cannabis sales which depressed the overall legal cannabis market.
Gross margin for the period ending March 31, 2019 was approximately 54.4%, compared to approximately 36.2% for the first quarter ending March 31, 2018. The increase in Gross Margin was primarily due to operational improvements across both the cannabis segment and herbs and produce segment.
Selling, general and administrative expenses for the period ending March 31, 2019 were approximately $11.5 million, compared to approximately $10.3 million for the first quarter ending March 31, 2018.
The Company reported a Gain on Interest in Joint Venture of $5.6 million for the period ending March 31, 2019, as a result of its decision to restate its agreements with NuLeaf Sparks Cultivation, LLC and NuLeaf Reno Production, LLC.
The net loss attributable to Terra Tech for the period ending March 31, 2019 was approximately $(5.1 million) or $(0.05) per share compared to a loss of approximately $(12.2 million) or $(0.19) per share for the first quarter endin March 31, 2018.