IRVINE, CA / ACCESSWIRE / March 14, 2019 / Terra Tech Corp. (OTCQX: TRTC) ("Terra Tech" or the "Company"), a vertically integrated cannabis-focused agriculture company, today announced its financial results for the year ended December 31, 2018.
"We faced several headwinds in 2018 that slowed our progress and impacted top line results," commented Derek Peterson, Chief Executive Officer of Terra Tech. "These challenges included navigating the changing regulations in the State of California, which affected sales from our retail businesses in the state, Blüm Oakland and Blüm Santa Ana. Our capacity to generate wholesale revenues in California was also impacted by the regulations which required us to relocate and upgrade our IVXX™ cannabis production to a new facility, effectively halting production in some months."
"While these factors created challenges for us in 2018, they also drove us to make investments in cultivation and manufacturing infrastructure that will enable us to scale production and achieve greater IVXX™ distribution in California in 2019. The upgraded facility in Oakland, California is nearly complete and will support a ramp in production starting in Q2 2019. Other initiatives to drive revenue growth in the state include the anticipated launch of a branded delivery system in California, and our plans to establish a pop-up retail experience," continued Mr. Peterson.
"In conjunction with these growth initiatives, we are also implementing strategies to improve fiscal responsibility and improve our bottom line in 2019. This includes streamlining our operations and headcount to mitigate operational burn and completing an assessment of all our assets to explore opportunities to sell certain lower performing assets and redirect resources into accretive opportunities. This strategy will also allow us to avoid accessing the capital markets for funding in the second half of 2019.
"We believe that our strategy of ensuring cost efficient operations, production of high quality cannabis and stronger corporate governance will strengthen our business and drive meaningful and sustainable shareholder value," concluded Mr. Peterson
Financial Update
Business Update
Corporate
California:
Nevada:
Edible Garden
Conference Call
The company will also host a conference call today, Thursday, March 14, 2019 at 4:30 PM Eastern Time.
Dial-In Number: 1-857-232-0157
Access Code: 422095
Derek Peterson, Chairman and CEO of Terra Tech Corp., will be answering shareholder questions at the end of the call. Should you have questions during or prior to the conference call please send an email to [email protected] with ‘TRTC Question' in the subject line. Mr. Peterson will answer as many questions as time will allow.
For those unable to participate in the live conference call, a replay will be available at http://smallcapvoice.com/blog/trtc/. An archived version of the webcast will also be available on the investor relations section of the company's website.
To be added to the Terra Tech email distribution list, please email [email protected] with TRTC in the subject line.
About Terra Tech
Terra Tech Corp. (OTCQX: TRTC) operates through multiple subsidiary businesses including: Blüm, IVXX Inc., Edible Garden, and MediFarm LLC. Blüm'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. Blüm offers a broad selection of cannabis products including; flowers, concentrates and edibles through its Oakland, CA and multiple Nevada locations. IVXX, Inc. is a wholly-owned subsidiary of Terra Tech that produces cannabis-extracted products for regulated medical cannabis dispensaries throughout California and medical and adult-use 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.
For more information about Terra Tech Corp visit: http://www.terratechcorp.com/
For more information about IVXX visit: http://ivxx.com/
For more information about Blüm Nevada visit: http://letsblum.com
Blüm Instagram: @LetsBlum
Visit us on Facebook @ https://www.facebook.com/terratechcorp/timeline
Follow us on Twitter @terratechcorp
For more information about Edible Garden visit: http://www.ediblegarden.com/
Visit Edible Garden on Facebook @ https://www.facebook.com/ediblefarms?fref=ts
Cautionary Language Concerning Forward-Looking Statements
Statements in this press release may be "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as "anticipate," "believe," "estimate," "expect," "intend" and similar expressions, as they relate to the company or its management, identify forward-looking statements. These statements are based on current expectations, estimates and projections about the company's business based, in part, on assumptions made by management. These statements are not guarantees of future performance and involve risks, uncertainties and assumptions that are difficult to predict. Therefore, actual outcomes and results may, and probably will, differ materially from what is expressed or forecasted in such forward-looking statements due to numerous factors, including those described above and those risks discussed from time to time in Terra Tech Corp.'s filings with the Securities and Exchange Commission. In addition, such statements could be affected by risks and uncertainties related to Terra Tech Corp.'s (i) product demand, market and customer acceptance of its equipment and other goods, (ii) ability to obtain financing to expand its operations, (iii) ability to attract qualified sales representatives, (iv) competition, pricing and development difficulties, (v) ability to integrate GrowOp Technology Ltd. into its operations as a reporting issuer with the Securities and Exchange Commission, and (vi) general industry and market conditions and growth rates and general economic conditions. Any forward-looking statements speak only as of the date on which they are made, and the company does not undertake any obligation to update any forward-looking statement to reflect events or circumstances after the date of this release. Information on Terra Tech Corp.'s website does not constitute a part of this release.
Year Ended December 31, | ||||||||
2018 | 2017 | |||||||
Total Revenues | $ | 31,333,618 | $ | 35,800,844 | ||||
Cost of Goods Sold | 18,900,090 | 24,879,428 | ||||||
Gross Profit | 12,433,528 | 10,921,416 | ||||||
Selling, General and Administrative Expenses | 43,304,374 | 30,801,434 | ||||||
Loss from Operations | (30,870,846 | ) | (19,880,018 | ) | ||||
Other Income (Expense): | ||||||||
Impairment of Property | (77,556 | ) | (138,037 | ) | ||||
Impairment of Intangible Assets | - | (757,467 | ) | |||||
Loss on Extinguishment of Debt | - | (7,144,288 | ) | |||||
Gain (Loss) on Fair Market Valuation of Derivatives | - | (3,494,550 | ) | |||||
Interest Expense, Net | (13,092,934 | ) | (2,681,426 | ) | ||||
Share of Loss in Joint Venture | (662,222 | ) | - | |||||
Gain on Sale of Assets | 5,229,680 | - | ||||||
Gain on Settlement of Contingent Consideration | - | 4,991,571 | ||||||
Gain (Loss) on Fair Market Valuation of Contingent Consideration | - | (4,426,047 | ) | |||||
Total Other Income (Expense) | (8,603,032 | ) | (13,650,244 | ) | ||||
Loss Before Provision for Income Taxes | (39,473,878 | ) | (33,530,262 | ) | ||||
Provision for Income Tax Benefit (Expense) | - | 347,455 | ||||||
Net Loss | (39,473,878 | ) | (33,182,807 | ) | ||||
Net Income / (Loss) Attributable to Non-Controlling Interest | 279,609 | (505,204 | ) | |||||
NET LOSS ATTRIBUTABLE TO TERRA TECH CORP. | $ | (39,753,486 | ) | $ | (32,677,603 | ) | ||
Net Loss Per Common Share Attributable to Terra Tech Corp. Common Stockholders - Basic and Diluted | $ | (0.56 | ) | $ | (0.71 | ) | ||
Weighted-Average Number of Common Shares Outstanding - Basic and Diluted | 71,028,851 | 46,072,846 |
TERRA TECH CORP. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
December 31, | December 31, | ||||||||||
2018 | 2017 | ||||||||||
ASSETS | |||||||||||
Current Assets: | |||||||||||
Cash | $ | 7,193,392 | $ | 5,445,582 | |||||||
Trade and Other Receivables, net of allowance for doubtful accounts of $0.33 and $0 million, as of December 31, 2018 and 2017, respectively | 1,246,835 | 959,698 | |||||||||
Notes Receivable | - | 5,010,143 | |||||||||
Inventory | 2,279,737 | 5,760,019 | |||||||||
Assets Held for Sale | 7,501,287 | - | |||||||||
Prepaid Expenses and Other Current Assets | 741,261 | 1,067,689 | |||||||||
Total Current Assets | 18,962,512 | 18,243,131 | |||||||||
Property, Equipment and Leasehold Improvements, Net | 34,139,089 | 19,191,616 | |||||||||
Intangible Assets, Net | 18,465,923 | 27,773,110 | |||||||||
Goodwill | 35,172,508 | 28,921,260 | |||||||||
Other Assets | 897,395 | 4,058,682 | |||||||||
Other Investments | 12,450,700 | - | |||||||||
TOTAL ASSETS | $ | 120,088,127 | $ | 98,187,799 | |||||||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||||||
LIABILITIES: | |||||||||||
Current Liabilities: | |||||||||||
Accrued Payroll | $ | 2,553,186 | $ | 621,898 | |||||||
Accounts Payable and Other Accrued Expenses | 4,348,256 | 4,822,812 | |||||||||
Derivative Liabilities | - | 9,331,400 | |||||||||
Total Current Liabilities | 6,901,442 | 14,776,110 | |||||||||
Long-Term Liabilities: | |||||||||||
Long-Term Debt | 13,812,877 | 6,609,398 | |||||||||
Long-Term Liabilities Held-for-Sale | 4,500,000 | - | |||||||||
Total Long-Term Liabilities | 18,312,877 | 6,609,398 | |||||||||
Total Liabilities | 25,214,319 | 21,385,508 | |||||||||
COMMITMENTS AND CONTINGENCIES | |||||||||||
STOCKHOLDERS' EQUITY: | |||||||||||
Preferred Stock, Convertible Series A, Par Value $0.001: | - | - | |||||||||
100 Shares Authorized as of December 31, 2018 and 2017; 12 and 8 Shares Issued and Outstanding as of December 31, 2018 and 2017, respectively | |||||||||||
Preferred Stock, Convertible Series B, Par Value $0.001: | - | - | |||||||||
49,999,900 Shares Authorized as of December 31, 2018 and 2017; 0 and 0 Shares Issued and Outstanding as of December 31, 2018 and 2017, respectively | |||||||||||
Common Stock, Par Value $0.001: | 81,759 | 61,819 | |||||||||
990,000,000 Shares Authorized as of December 31, 2018 and 2017; 81,759,415 and 61,818,560 Shares Issued and Outstanding as of December 31, 2018 and 2017, respectively (1) | |||||||||||
Additional Paid-In Capital | 236,542,860 | 181,357,715 | |||||||||
Accumulated Deficit | (142,754,287 | ) | (105,548,602 | ) | |||||||
Total Terra Tech Corp. Stockholders' Equity | 93,870,332 | 75,870,932 | |||||||||
Non-Controlling Interest | 1,003,476 | 931,359 | |||||||||
Total Stockholders' Equity | 94,873,808 | 76,802,291 | |||||||||
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ | 120,088,127 | $ | 98,187,799 | |||||||
(1) Adjusted to reflect the 1 for 15 reverse stock split. See Note 15. |
Contact
Philip Carlson
KCSA Strategic Communications
[email protected]
212-896-1238
SOURCE: Terra Tech Corp.