Terra Tech Corp. (OTCMKTS:TRTC) Pulls Back Once More

Last week a new crop of reports sprouted up, with Terra Tech Corp. (OTCMKTS:TRTC) among the filers. The report was something of a mixed bag but it seems the overall market reaction was negative, with TRTC dropping a cumulative 13% since the filing.

The quarterly report was accompanied by a press release containing the announcement that TRTC‘s revenues for the quarter grew 700% on a year-over-year basis. While this is true, there are a few other details that were left out. Here is the brief summary of the report’s numbers:

• $2.9 million in cash
• $6 million in current liabilities
• $560 thousand in quarterly revenues
• $4.9 million in quarterly net loss

While revenues for the period are way up from a modest $66 thousand in Q1 of last year, they are down from TRTC‘s previous quarters. As a matter of fact, this is the lowest quarterly revenue registered since the revenue-boosting acquisition of Edible Gardens back in April 2013, so the 700% YoY growth announced in the press release, while factually true, also constitutes a shrink in revenues on a QoQ basis.

TRTC‘s gross margin is as thin as ever, at 0.3%. However, net loss has crept close to a somewhat unsettling $5 million for a single quarter, against $6.1 recorded over all of 2013. The company increased its cash position by issuing both convertible notes and selling shares. 6.6 million shares were sold at $0.60 per share to an unnamed party. Two of the notes amounting to $1.6 million in principal convert at a 10% discount of TRTC‘s average price over the 20 days prior to Feb 5, 2014, estimated to be $0.30 per share, approximately.

When is TRTC going to actually start logging pot revenues? A question that will go unanswered for another couple of months, with state licensing results expected some time in July and a Clark County commission deciding on dispensary and grow ops applications in June.