Terra Tech Corp (OTCMKTS:TRTC) shares were down 8.90% on Wednesday but recovered 1.27% in after-hours trading to $0.454. Share prices have been trading in a 52-week range of $0.09 to $0.75. The company has 349.98 million shares outstanding.
In its latest earning report, Terra Tech Corp showed revenues generated for the quarter ended September 30, 2016 were approximately $7.0 million, compared to $2.0 million in the same period in 2015. This represents a 244% increase from the same period a year ago, spurred by sales from the acquisition of the Blüm dispensary in Oakland, California, sales of IVXX cannabis products and Edible Garden sales of its produce, herbs and floral products.
Gross margin for the third quarter of 2016 was approximately $1.3 million or 19% of sales while selling, general and administrative expenses amounted to approximately $6.0 million or 86% of sales, compared with approximately $2.1 million or 104% of sales for the third quarter of 2015. This was caused by an increase in salaries due to new hires associated with the Blum dispensaries, as well as an increase in consultants’ fees in connection with the Nevada business and an increase in amortization expense due to intangible assets acquired in the Black Oak Gallery acquisition.
Terra Tech Corp saw an operating loss of approximately $4.7 million compared to an operating loss of approximately $1.7 million in the same period last year. With that, the net loss for Q3 was approximately $5.9 million or $0.01 per share compared with a loss of approximately $2.0 million or $0.01 per share in the same period last year.
“We are encouraged to see our strategy to expand Terra Tech’s retail presence in core target markets drive top line growth, with revenues reaching $7.0 million in the third quarter of 2016, representing a 244% increase compared to the prior year period. Third quarter results were supported by revenues from the Blüm Oakland Dispensary, in California, and the Western Las Vegas Blüm Dispensary, in Nevada, both of which opened in Spring of 2016. During the third quarter, we also opened the South Decatur Boulevard Blüm Dispensary, which is located east of the Las Vegas Strip in Nevada. Furthermore, with the passing of yesterday’s ballots to legalize recreational cannabis in Nevada and California, we are well-positioned to accelerate our growth as the market opportunity rapidly expands,” remarked terra tech corp ceo derek peterson.
He added that, in addition to establishing a retail presence in Nevada and California, Terra Tech Corp is also focused on improving brand recognition of their proprietary IVXX line of premium medical cannabis products, which the company believes to be one of the most trusted medical marijuana brands.
“The Company’s Edible Garden segment, which produces local and sustainably grown hydroponic foods, also reported a strong performance, with revenues up 34% year over year for the third quarter. Our distribution channels now include Wegmans Supermarket and our sales team expects this segment to continue to provide steady cash flow to support growth in the business in the near future,” peterson added.
Terra Tech Corp is a cannabis-focused agriculture company that is operating through two segments: Hydroponic Produce and Cannabis Products. Through its subsidiary GrowOp Technology Ltd, the company is engaged in the design, marketing and sale of hydroponic equipment. It is also a retail seller of locally grown hydroponic produce, herbs, and floral products through its subsidiary, Edible Garden Corp.
The company also intends to operate medical marijuana cultivation, production and dispensary facilities in Nevada through its subsidiaries, MediFarm, MediFarm I, and MediFarm II. Through its subsidiary, IVXX, Terra Tech Corp produces and sells a line of cannabis flowers and cigarettes, among others.