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IRVINE, CA / ACCESSWIRE / 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.”
- 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.
- 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.