EXHIBIT 99.1

 

Terra Tech Corp. Reports Financial Results for Third Quarter 2020

 

IRVINE, CA – November 6, 2020 – Terra Tech Corp. (OTCQX: TRTC) (“Terra Tech” or the “Company”) today announced its financial results for the quarter ended September 30, 2020.

 

Mike Nahass, Chief Executive Officer of Terra Tech, commented, “Our third quarter results were impacted by the closure of our San Leandro dispensary, which was shut for the first half of July and the Oakland dispensary which was shut for the entire third quarter, following damage due to civil unrest that began in late May. Our cultivation facilities continued to sell wholesale cannabis products throughout the quarter, however the shift in revenue mix toward wholesale products continues to reduce our operating margin. Closing out this year and leading into 2021, our business will continue to focus on building out the key elements of our THC business in the California market. Terra Tech is maximizing near-term revenue streams and prioritizing the construction of our Hegenberger cultivation facility which is expected to reach completion at the end of 2020. We are working to further strengthen our balance sheet, through asset sales across the business, specifically in Nevada, in order to strengthen the Company’s cash position and streamline our resources toward our most lucrative THC projects. We’re working our way through the upheaval of recent months and have a strong vision for the future, which we are excited to pursue. With our Oakland and San Leandro dispensaries both up and running, we expect to see near-term revenue growth, followed by a ramp in 2021 as our Hegenberger cultivation and Dyer Rd retail assets contribute to sales and drive us toward profitability.”

 

Financial Update

 

 

For the quarter ended September 30, 2020, the Company generated revenues from continuing operations of approximately $3.05 million, compared to approximately $5.48 million for the quarter ended September 30, 2019, a decrease of approximately $2.42 million. The decrease was due to the combined impact of COVID-19 and civil unrest. COVID-19 has reduced customer traffic and sales volume, while the civil unrest has resulted in damage and closure of one of our dispensaries for half of the month of July and the other for the entire quarter.

 

 

 

 

Terra Tech’s gross profit from continuing operations for the quarter ended September 30, 2020 was approximately $1.44 million, compared to a gross profit of approximately $3.18 million for the quarter ended September 30, 2019, a decrease of approximately $1.74 million. Gross margin for the quarter ended September 30, 2020 was approximately 47.1%, compared to approximately 58.1% for the quarter ended September 30, 2019. The decrease in gross margin was mainly due to our revenue decrease, but was also impacted by higher cost of sales. The cost of sales were negatively impacted by lower customer traffic which led to suboptimal purchasing volume which in turn pushed up unit cost.

 

 
1

 

 

 

Selling, general and administrative expenses for the three months ended September 30, 2020 were approximately $5.59 million, compared to approximately $9.32 million for the three months ended September 30, 2019, a decrease of $3.73 million.

 

 

 

 

The net loss attributable to Terra Tech for the three months ending September 30, 2020 was $18.16 million, or $0.09 per basic and diluted share, compared to $8.78 million, or $0.08 per basic and diluted share, for the three months ending September 30, 2019.

 

 

 

 

The Company had $2.34 million in cash as of September 30, 2020, compared with $1.23 million as of December 31, 2019.

 

 

 

 

Stockholders’ equity for the period ending September 30, 2020 amounted to approximately $35.16 million compared to approximately $75.33 million as of December 31, 2019.

 

Conference Call

 

The Company will host a conference call on Friday, November 6, 2020 at 4:30pm ET to discuss the financial and operational results.

 

Dial-In Number:                  1-857-232-0157

Access Code:                        422095

 

Mike Nahass, 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. Nahass 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 https://www.smallcapvoice.com/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.

 

About Terra Tech

 

Terra Tech is a holding company with a portfolio of investments focused on cannabis agricultural assets in the THC market and the research, development and commercialization of cannabinoid-based products. Backed by innovative science and best-in-class manufacturing, the company's mission is to deliver top-tier cannabis and cannabinoid-based products with a focus on its core cannabis business.

 

 
2

 

 

Cautionary Language Concerning Forward-Looking Statements

 

Certain statements contained in this communication regarding matters that are not historical facts, are forward-looking statements within the meaning of Section 21E of the Securities and Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995, known as the PSLRA. These include statements regarding management's intentions, plans, beliefs, expectations or forecasts for the future, and, therefore, you are cautioned not to place undue reliance on them. No forward-looking statement can be guaranteed, and actual results may differ materially from those projected. Terra Tech undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future events or otherwise, except to the extent required by law. We use words such as “anticipates,” “believes,” “plans,” “expects,” “projects,” “future,” “intends,” “may,” “will,” “should,” “could,” “estimates,” “predicts,” “potential,” “continue,” “guidance,” and similar expressions to identify these forward-looking statements that are intended to be covered by the safe-harbor provisions of the PSLRA. Such forward-looking statements are based on our expectations and involve risks and uncertainties; consequently, actual results may differ materially from those expressed or implied in the statements due to a number of factors.

 

New factors emerge from time to time and it is not possible for us to predict all such factors, nor can we assess the impact of each such factor on the business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. These risks, as well as other risks associated with the combination, will be more fully discussed in our reports with the SEC. Additional risks and uncertainties are identified and discussed in the “Risk Factors” section of Terra Tech's Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and other documents filed from time to time with the SEC. Forward-looking statements included in this release are based on information available to Terra Tech as of the date of this release. Terra Tech undertakes no obligation to update such forward-looking statements to reflect events or circumstances after the date 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)

(in thousands, except for shares and per-share information)

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

Nine Months Ended

 

 

 

September 30,

 

 

September 30,

 

 

 

2020

 

 

2019

 

 

2020

 

 

2019

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total revenues

 

$ 3,053

 

 

$ 5,477

 

 

$ 9,806

 

 

$ 12,000

 

Cost of goods sold

 

 

1,615

 

 

 

2,295

 

 

 

4,796

 

 

 

4,917

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross profit

 

 

1,438

 

 

 

3,182

 

 

 

5,010

 

 

 

7,083

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Selling, general and administrative expenses

 

 

5,588

 

 

 

9,318

 

 

 

20,409

 

 

 

26,521

 

Impairment of assets

 

 

9,792

 

 

 

171

 

 

 

19,909

 

 

 

681

 

(Gain) / Loss on sale of assets

 

 

-

 

 

 

(893 )

 

 

(35 )

 

 

(893 )

Loss on interest in joint venture

 

 

-

 

 

 

-

 

 

 

-

 

 

 

1,067

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loss from operations

 

 

(13,943 )

 

 

(5,414 )

 

 

(35,273 )

 

 

(20,294 )

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other income (expense):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense, net

 

 

(529 )

 

 

(1,714 )

 

 

(1,885 )

 

 

(8,262 )

Other income/loss

 

 

372

 

 

 

(984 )

 

 

349

 

 

 

13

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total other income (expense)

 

 

(157 )

 

 

(2,698 )

 

 

(1,536 )

 

 

(8,249 )

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (Loss) from continuing operations

 

 

(14,100 )

 

 

(8,112 )

 

 

(36,809 )

 

 

(28,543 )

Income (Loss) from discontinued operations, net of tax

 

 

(4,199 )

 

 

(811 )

 

 

(17,342 )

 

 

(2,135 )

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NET INCOME (LOSS)

 

 

(18,299 )

 

 

(8,923 )

 

 

(54,151 )

 

 

(30,678 )

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Less:  Income (Loss) attributable to non-controlling interest from continuing operations

 

 

(138 )

 

 

(143 )

 

 

(479 )

 

 

(57 )

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NET LOSS ATTRIBUTABLE TO TERRA TECH CORP.

 

$ (18,161 )

 

$ (8,780 )

 

$ (53,672 )

 

$ (30,621 )

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income / ( Loss) from continuing operations per common share attributable to Terra Tech Corp. common stockholders – basic and diluted

 

$ (0.07 )

 

$ (0.07 )

 

$ (0.20 )

 

$ (0.28 )

Net Loss per common share attributable to Terra Tech Corp. common stockholders – basic and diluted

 

$ (0.09 )

 

$ (0.08 )

 

$ (0.29 )

 

$ (0.30 )

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted-average number of common shares outstanding – basic and diluted

 

 

206,828,614

 

 

 

110,797,214

 

 

 

186,295,127

 

 

 

102,907,538

 

 

 
4

 

  

TERRA TECH CORP. AND SUBSIDIARIES

 

CONSOLIDATED BALANCE SHEETS

 

(in thousands, except Shares)

 

 

 

 

 

September 30,

 

 

December 31,

 

 

 

2020

 

 

2019

 

 

 

(Unaudited)

 

 

 

 

ASSETS

 

 

 

 

 

 

 

 

Current Assets:

 

 

 

 

 

 

Cash

 

$ 2,338

 

 

$ 1,226

 

Accounts receivable, net

 

 

351

 

 

 

693

 

Inventory

 

 

4,851

 

 

 

4,334

 

Prepaid expenses and other assets

 

 

457

 

 

 

675

 

Current assets of discontinued operations

 

 

183

 

 

 

2,440

 

 

 

 

 

 

 

 

 

 

Total current assets

 

 

8,180

 

 

 

9,368

 

 

 

 

 

 

 

 

 

 

Property, equipment and leasehold improvements, net

 

 

33,345

 

 

 

35,469

 

Intangible assets, net

 

 

8,028

 

 

 

14,871

 

Goodwill

 

 

6,171

 

 

 

21,471

 

Other assets

 

 

13,327

 

 

 

10,272

 

Investments

 

 

5,330

 

 

 

5,000

 

Assets of discontinued operations

 

 

2,981

 

 

 

22,799

 

 

 

 

 

 

 

 

 

 

TOTAL ASSETS

 

$ 77,362

 

 

$ 119,250

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

LIABILITIES:

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

 

Accounts payable and accrued expenses

 

$ 10,752

 

 

$ 9,525

 

Short-term debt

 

 

12,855

 

 

 

11,021

 

Current liabilities of discontinued operations

 

 

8,219

 

 

 

7,035

 

 

 

 

 

 

 

 

 

 

Total current liabilities

 

 

31,826

 

 

 

27,581

 

 

 

 

 

 

 

 

 

 

Long-term liabilities:

 

 

 

 

 

 

 

 

Long-term debt, net of discounts

 

 

1,877

 

 

 

6,570

 

Long-term lease liabilities

 

 

8,448

 

 

 

8,902

 

Long-term liabilities of discontinued operations

 

 

55

 

 

 

869

 

Total long-term liabilities

 

 

10,380

 

 

 

16,341

 

 

 

 

 

 

 

 

 

 

Total liabilities

 

 

42,206

 

 

 

43,923

 

 

 

 

 

 

 

 

 

 

STOCKHOLDERS’ EQUITY:

 

 

 

 

 

 

 

 

Preferred stock, convertible series A, par value 0.001: 100 shares authorized as of September 30, 2020 and December 31, 2019; 12 shares issued and 8 shares outstanding as of September 30, 2020 and December 31, 2019

 

 

-

 

 

 

-

 

Preferred stock, convertible series B, par value 0.001: 41,000,000 Shares Authorized as of September 30, 2020 and December 31, 2019; 0 Shares Issued and Outstanding as of September 30, 2020 and December 31, 2019

 

 

-

 

 

 

-

 

Common stock, par value 0.001: 990,000,000 Shares authorized as of September 30, 2020 and December 31, 2019; 211,571,970 issued and 209,263,562 outstanding as of September 30, 2020 and 120,313,386 shares issued and 118,004,978 shares outstanding as of  December 31, 2019

 

 

214

 

 

 

120

 

Additional paid-in capital

 

 

274,370

 

 

 

260,516

 

Treasury Stock (2,308,408 shares of common stock, 4 shares of Preferred Stock Convertible Series A)

 

 

(808 )

 

 

(808 )

Accumulated deficit

 

 

(243,358 )

 

 

(189,685 )

 

 

 

 

 

 

 

 

 

Total Terra Tech Corp. stockholders’ equity

 

 

30,418

 

 

 

70,143

 

Non-controlling interest

 

 

4,738

 

 

 

5,184

 

 

 

 

 

 

 

 

 

 

Total stockholders’ equity

 

 

35,156

 

 

 

75,327

 

 

 

 

 

 

 

 

 

 

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY

 

$ 77,362

 

 

$ 119,250

 

 

 
5

 

View differences made from one to another to evaluate Terra Tech Corp.'s financial trajectory

Compare SEC Filings Year-over-Year (YoY) and Quarter-over-Quarter (QoQ)
Sample 10-K Year-over-Year (YoY) Comparison

Compare this 8-K Corporate News to its predecessor by reading our highlights to see what text and tables were  removed  ,   added    and   changed   by Terra Tech Corp..

Continue

Never Miss A New SEC Filing Again


Real-Time SEC Filing Notifications
Screenshot taken from Gmail for a new 10-K Annual Report
Last10K.com Member Feature

Receive an e-mail as soon as a company files an Annual Report, Quarterly Report or has new 8-K corporate news.

Continue

We Highlighted This SEC Filing For You


SEC Filing Sentiment Analysis - Bullish, Bearish, Neutral
Screenshot taken from Wynn's 2018 10-K Annual Report
Last10K.com Member Feature

Read positive and negative remarks made by management in their entirety without having to find them in a 10-K/Q.

Continue

Widen Your SEC Filing Reading Experience


Increased Reading Area for SEC Filings
Screenshot taken from Adobe Inc.'s 10-Q Quarterly Report
Last10K.com Member Feature

Remove data columns and navigations in order to see much more filing content and tables in one view

Continue

Uncover Actionable Information Inside SEC Filings


SEC Filing Disclosures
Screenshot taken from Lumber Liquidators 10-K Annual Report
Last10K.com Member Feature

Read both hidden opportunities and early signs of potential problems without having to find them in a 10-K/Q

Continue

Adobe PDF, Microsoft Word and Excel Downloads


Download Annual and Quarterly Reports as PDF, Word and Excel Documents
Screenshots of actual 10-K and 10-Q SEC Filings in PDF, Word and Excel formats
Last10K.com Member Feature

Export Annual and Quarterly Reports to Adobe PDF, Microsoft Word and Excel for offline viewing, annotations and analysis

Continue

FREE Financial Statements


Download Annual and Quarterly Reports as PDF, Word and Excel Documents
Screenshot of actual balance sheet from company 10-K Annual Report
Last10K.com Member Feature

Get one-click access to balance sheets, income, operations and cash flow statements without having to find them in Annual and Quarterly Reports

Continue for FREE

Intrinsic Value Calculator


Intrinsic Value Calculator
Screenshot of intrinsic value for AT&T (2019)
Last10K.com Member Feature

Our Intrinsic Value calculator estimates what an entire company is worth using up to 10 years of financial ratios to determine if a stock is overvalued or not

Continue

Financial Stability Report


Financial Stability Report
Screenshot of financial stability report for Coco-Cola (2019)
Last10K.com Member Feature

Our Financial Stability reports uses up to 10 years of financial ratios to determine the health of a company's EPS, Dividends, Book Value, Return on Equity, Current Ratio and Debt-to-Equity

Continue

Get a Better Picture of a Company's Performance


Financial Ratios
Available Financial Ratios
Last10K.com Member Feature

See how over 70 Growth, Profitability and Financial Ratios perform over 10 Years

Continue

Log in with your credentials

or    

Forgot your details?

Create Account