Terra Tech Corp. (OTCMKTS:TRTC) Q1 Report Fails to Impress
On Friday, after the markets had closed, Terra Tech Corp. (OTCMKTS:TRTC) put up its latest due quarterly report. On Monday, when the ticker got a chance to trade on the numbers reported, it seemed as though investors were not particularly pleased with the results. After a short stretch of recovery, TRTC closed 5.4% down yesterday, at $0.175 per share.
The report’s balance sheet is the first thing that attracts attention. Here is the brief rundown of the figures listed in it:
- $274 thousand in cash
- $5.4 million in current liabilities
- $763 thousand in Q1 revenues
- $2.1 million in Q1 net loss
It’s true that historically Q1 is TRTC‘s worst quarter and revenues are up compared against 2014’s $560 thousand. The boost in revenues is attributed to a new revenue stream originating from IVXX-branded cannabis products. The gross margin has improved as well, year-over-year, allegedly due to the new Dutch hydroponic tables used by Edible Garden. However, the company burnt through the better part of the cash it reported as of Dec 31.
The convertible debt TRTC signed over the last few months is no secret and traders who followed the stock knew about it in advance. The most recent deals include one with Magna Equities LLC and one with “certain purchasers”. Both of those deals include the issuing of TRTC shares at a 25% discount from a 20-day VWAP of the company prior to conversion.
TRTC is currently flat in the early session, a fraction of a percent up.
