Terra Tech Corp (OTCMKTS:TRTC) Drops Over 15% After Quarterly
As mid-August rolled over, a lot of companies had to submit their usual second quarter reports. Terra Tech Corp (OTCMKTS:TRTC) was also among those, filing its 10-Q last Wednesday. Contrary to the expectations of many, the stock is so far down 17% from its price when the report went up.
What exactly was in that quarterly that may have disappointed investors? A brief look at the numbers reported is a good place to start looking for clues. Here is how TRTC performed over the three months ended June 2015:
- $2.1 million in cash
- $5.3 million in current liabilities
- $5.0 million in quarterly revenues
- $2.79 million in quarterly net loss
Edible Garden, traditionally, scored a strong second quarter and contributed the majority of the $5.0 million figure. What may be worrying shareholders more is a snippet of information that CFO Michael James dropped in a conference call, discussing quarterly performance. Mr. James stated that the “cannabis division” of TRTC, meaning the supercritical extraction lab and the IVXX brand together, generated $432,000 in revenues for the first SIX months of 2015.
While this number cannot be used to extrapolate a Q2 revenue figure coming from the cannabis division of TRTC, some insights can be gleamed by looking at the company’s Q1 report. Q1 revenue was up by about $200 thousand YoY, and this was “primarily due to revenue generated by IVXX”, from selling cannabis products.
A rough estimate would be that IVXX generated comparable amounts of money in both quarters, without any significant growth in the second quarter despite the continuing company investment in advertising and promoting the brand, as well as the multiple new dispensaries that started selling IVXX in Q2.
TRTC also provided a somewhat general update on goings-on with the company proposed marijuana facilities in Nevada, but there was no significant new information.
