EXHIBIT 99.1

 

Terra Tech Corp Reports Financial Results for the Second Quarter of 2018

 

IRVINE, CA – August 9, 2018 –

Terra Tech Corp. (OTCQX: TRTC) (“Terra Tech” or the “Company”), a vertically integrated cannabis-focused agriculture company, today announced its second quarter financial results for the period ended June 30, 2018.

 

“During the second quarter of fiscal 2018 we focused on both growing topline revenues, which reached $8.7 million for the quarter, and investing in building out infrastructure to support our longer term growth strategy,” commented Derek Peterson, Chief Executive Officer of Terra Tech. “In Nevada, we maintain a significant, focused presence which covers both retail and cultivation. On the retail side, our dispensaries reported higher revenues as the adult use market continued to gain momentum. Subsequent to the quarter end, we also commenced cultivation activities at our Sparks, Nevada facility, of which we own 50% in conjunction with NuLeaf, to scale the supply of our wholesale IVXXÒ premium products.

 

“In California, we made strides expanding our presence in Santa Ana by securing retail permits for new dispensaries on East Dyer Road and Carnegie Avenue. With plans to apply for cultivation, distribution, and manufacturing permits, we believe these locations have the potential to be significant revenue generators for us. We are also in the process of relocating our Oakland extraction facility to the new facility in San Leandro. While this has impacted IVXX sales in the short term, we are confident this will allow us to increase our production and achieve greater distribution throughout California upon completion of the facility build out, which is expected to occur by the end of the year. By investing in infrastructure, we aim to establish a strong platform to ensure growth in shareholder value,” concluded Mr. Peterson.

 

Financial Update

 

 

· Total revenues generated for the quarter ended June 30, 2018 were approximately $8.7 million, an increase of 11% from $7.8 million in the same period in 2017. This growth was due to revenue generated by the Company’s dispensaries in Nevada, and sales from its Blüm, Santa Ana dispensary in California, which was acquired in September 2017.

 

 

 

 

· Gross margin for the quarter ended June 30, 2018 amounted to approximately 25.3%, compared to approximately 19.2% for the quarter ended June 30, 2017, primarily attributable to the cannabis segment, where the Company generated higher revenues to cover its fixed overhead costs.

 

 

 

 

· Selling, general and administrative expenses for the quarter ended June 30, 2018 amounted to approximately $8.0 million, compared to approximately $6.0 million for the quarter ended June 30, 2017.

 

 

 

 

· The net loss attributable to Terra Tech for the quarter ended June 30, 2018 was approximately $(11.4 million) or ($0.17) per share compared to a loss of approximately $(0.5 million) or ($0.01) per share for the quarter ended June 30, 2017.

 

 

 

 

· The Company had $5.2 million in cash as of June 30, 2018, compared with $5.4 million as of December 31, 2017.

 

 

 

 

· Stockholders’ equity for the quarter ended June 30, 2018 amounted to approximately $91.0 million, an increase of approximately $14.2 million compared to approximately $76.8 million as of December 31, 2017.

 

 

 

 

· The Company had no short-term debt as of June 30, 2018. Long term debt was $12.8 million as of June 30, 2018, compared with $6.6 million as of December 31, 2017.

 

 
1
 
 
 
 

Business Update

 

California:

 

 

· Oakland: The Company’s Blüm, Oakland dispensary continued to focus on the adult use market, however sales were negatively impacted by higher California state excise tax rates. To prepare for a ramp in demand as a result of the legalization of adult-use cannabis, Terra Tech continued constructing a 13,000 square foot cultivation facility in Hegenberger, Oakland which has the capacity to produce up to one metric ton, or 2,000 pounds, of cannabis per year. The facility is expected to be fully operational in the third quarter of 2018.

 

 

 

 

· San Leandro: The Company continued construction of a Blüm dispensary and extraction facility, both of which are expected to open in the second half of 2018.

 

 

 

 

· Santa Ana: In July, the Company received regulatory approval from the City of Santa Ana to acquire the cannabis retail permit associated with the dispensary for no additional consideration. Additionally, the Company was granted two permits by the City of Santa Ana to operate retail dispensaries on East Dyer Road and Carnegie Avenue in Santa Ana, California. Terra Tech plans to apply for cultivation, manufacturing and distribution permits at both locations.

 

 

 

 

 

Also in July, the Company secured a 25% ownership in The Healing Tree Collective, Inc., a California based permitted dispensary.

 

Nevada:

 

 

· The Company’s four Blüm dispensaries in Nevada continued to ramp sales to the adult-use market.

 

 

 

 

· Following approval from the State of Nevada, the Company commenced cannabis cultivation at its new Sparks facility in July, which was built out in the first quarter of 2018 in conjunction with NuLeaf Sparks.

 

 

 

 

· The Company received final State of Nevada approvals to begin production at its 15,000 square foot cannabis extraction facility in Reno, NV, in July, which was also constructed in conjunction with NuLeaf.

 

 

 

 

· In July, the Company agreed to sell 100% of the assets of its cannabis dispensary located at 1921 Western Avenue in Las Vegas, to Exhale Brands Nevada, for a total consideration of $6,250,000. This did not impact the Company’s results for the quarter ended June 30, 2018. The transaction is expected to close upon receipt of all state and local jurisdictional approvals.
 

Conference Call

 

The company will also host a conference call today, Thursday, August 9, 2018 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 TRTC@kcsa.com 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 TRTC@kcsa.com with TRTC in the subject line.

 

 
2
 
 

 

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
For more information about Blüm Oakland visit: http://blumoak.com/ 
Visit us on Facebook @ http://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 @ http://www.facebook.com/ediblefarms?fref=ts 
Visit IVXX on Facebook @ http://www.facebook.com/ivxxbrand?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.

 

Contact

Philip Carlson

KCSA Strategic Communications

TRTC@kcsa.com

212-896-1238

 

 
3
 
 

 

TERRA TECH CORP. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(UNAUDITED)

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

Six Months Ended

 

 

 

June 30,

 

 

June 30,

 

 

 

2018

 

 

2017

 

 

2018

 

 

2017

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Revenues

 

$ 8,718,177

 

 

$ 7,842,873

 

 

$ 17,333,543

 

 

$ 14,667,329

 

Cost of Goods Sold

 

 

6,509,754

 

 

 

6,336,500

 

 

 

13,477,680

 

 

 

12,801,893

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross Profit

 

 

2,208,423

 

 

 

1,506,373

 

 

 

3,855,863

 

 

 

1,865,436

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Selling, General and Administrative Expenses

 

 

8,002,370

 

 

 

6,029,287

 

 

 

16,424,918

 

 

 

12,415,587

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loss from Operations

 

 

(5,793,947 )

 

 

(4,522,914 )

 

 

(12,569,055 )

 

 

(10,550,151 )

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other Income (Expense):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Amortization of Debt Discount

 

 

(417,363 )

 

 

(515,654 )

 

 

(885,680 )

 

 

(1,126,270 )

Loss on Extinguishment of Debt

 

 

(3,127,477 )

 

 

(1,639,137 )

 

 

(7,858,723 )

 

 

(2,678,595 )

Gain (Loss) on Fair Market Valuation of Derivatives

 

 

(1,653,000 )

 

 

987,200

 

 

 

628,000

 

 

 

2,597,950

 

Interest Expense, Net

 

 

(331,379 )

 

 

(130,510 )

 

 

(591,000 )

 

 

(288,343 )

Loss on Fair Market Valuation of Contingent Consideration

 

 

-

 

 

 

(77,286 )

 

 

-

 

 

 

(4,426,047 )

Gain on Settlement of Contingent Consideration

 

 

-

 

 

 

4,991,571

 

 

 

-

 

 

 

4,991,571

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Other Income (Expense)

 

 

(5,529,219 )

 

 

3,616,184

 

 

 

(8,707,403 )

 

 

(929,734 )

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Loss

 

 

(11,323,166 )

 

 

(906,730 )

 

 

(21,276,458 )

 

 

(11,479,885 )

Net Income (Loss) Attributable to Non-Controlling Interest

 

 

104,837

 

 

 

(452,961 )

 

 

183,465

 

 

 

(914,128 )

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NET LOSS ATTRIBUTABLE TO TERRA TECH CORP.

 

$ (11,428,003 )

 

$ (453,769 )

 

$ (21,459,923 )

 

$ (10,565,757 )

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Loss Per Common Share Attributable to Terra Tech Corp. Common Stockholders – Basic and Diluted

 

$ (0.17 )

 

$ (0.01 )

 

$ (0.32 )

 

$ (0.28 )

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted-Average Number of Common Shares Outstanding – Basic and Diluted

 

 

68,734,997

 

 

 

38,873,092

 

 

 

66,734,450

 

 

 

38,349,946

 

 

 
4
 
 

 

TERRA TECH CORP. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

 

 

 

 

 

 

 

June 30,

 

 

December 31,

 

 

 

2018

 

 

2017

 

 

 

(Unaudited)

 

 

 

 

ASSETS

 

 

 

 

 

 

 

Current Assets:

 

 

 

 

 

 

Cash

 

$ 5,153,608

 

 

$ 5,445,582

 

Accounts Receivable

 

 

1,210,446

 

 

 

959,698

 

Notes Receivable

 

 

6,158,731

 

 

 

5,010,143

 

Inventory

 

 

3,840,773

 

 

 

5,760,019

 

Assets Held for Sale

 

 

904,352

 

 

 

-

 

Prepaid Expenses and Other Current Assets

 

 

1,086,989

 

 

 

1,067,689

 

 

 

 

 

 

 

 

 

 

Total Current Assets

 

 

18,354,899

 

 

 

18,243,131

 

 

 

 

 

 

 

 

 

 

Property, Equipment and Leasehold Improvements, Net

 

 

34,940,408

 

 

 

19,191,616

 

Intangible Assets, Net

 

 

26,696,348

 

 

 

27,773,110

 

Goodwill

 

 

28,921,260

 

 

 

28,921,260

 

Other Assets

 

 

878,098

 

 

 

4,058,682

 

 

 

 

 

 

 

 

 

 

TOTAL ASSETS

 

$ 109,791,013

 

 

$ 98,187,799

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

LIABILITIES:

 

 

 

 

 

 

 

 

Current Liabilities:

 

 

 

 

 

 

 

 

Accounts Payable and Accrued Expenses

 

$ 4,076,973

 

 

$ 5,444,710

 

Derivative Liabilities

 

 

1,891,400

 

 

 

9,331,400

 

 

 

 

 

 

 

 

 

 

Total Current Liabilities

 

 

5,968,373

 

 

 

14,776,110

 

 

 

 

 

 

 

 

 

 

Long-Term Liabilities:

 

 

 

 

 

 

 

 

Long-Term Debt, Net of Discounts

 

 

12,811,403

 

 

 

6,609,398

 

 

 

 

 

 

 

 

 

 

Total Long-Term Liabilities

 

 

12,811,403

 

 

 

6,609,398

 

 

 

 

 

 

 

 

 

 

Total Liabilities

 

 

18,779,776

 

 

 

21,385,508

 

 

 

 

 

 

 

 

 

 

COMMITMENTS AND CONTINGENCIES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

STOCKHOLDERS’ EQUITY:

 

 

 

 

 

 

 

 

Preferred Stock, Convertible Series A, Par Value 0.001:

 

 

-

 

 

 

-

 

100 Shares Authorized as of June 30, 2018 and December 31, 2017; 8 Shares Issued and Outstanding as of June 30, 2018 and December 31, 2017

 

 

 

 

 

 

 

 

Preferred Stock, Convertible Series B, Par Value 0.001:

 

 

-

 

 

 

-

 

49,999,900 Shares Authorized as of June 30, 2018 and December 31, 2017; 0 Shares Issued and Outstanding as of June 30, 2018 and December 31, 2017

 

 

 

 

 

 

 

 

Common Stock, Par Value 0.001:

 

 

70,853

 

 

 

61,819

 

990,000,000 Shares Authorized as of June 30, 2018 and December 31, 2017; 70,852,978 and 61,818,560 Shares Issued and Outstanding as of June 30, 2018 and December 31, 2017, respectively

 

 

 

 

 

 

 

 

Additional Paid-In Capital

 

 

216,839,872

 

 

 

181,357,715

 

Accumulated Deficit

 

 

(127,008,525 )

 

 

(105,548,602 )

 

 

 

 

 

 

 

 

 

Total Terra Tech Corp. Stockholders’ Equity

 

 

89,902,200

 

 

 

75,870,932

 

Non-Controlling Interest

 

 

1,109,037

 

 

 

931,359

 

 

 

 

 

 

 

 

 

 

Total Stockholders’ Equity

 

 

91,011,237

 

 

 

76,802,291

 

 

 

 

 

 

 

 

 

 

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY

 

$ 109,791,013

 

 

$ 98,187,799

 

 

 

 

5

 


The following information was filed by Terra Tech Corp. (TRTC) on Friday, August 10, 2018 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.

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