Revenue from continuing operations increased 39% versus 2018.
Company expands operations to include pharmaceutical manufacturing.
IRVINE, CA / ACCESSWIRE / March 13, 2020 / Terra Tech Corp. (OTCQX:TRTC) (“Terra Tech” or the “Company”) today announced its financial results for the year ended December 31, 2019.
Matt Morgan, Chief Executive Officer of Terra Tech, commented, “In 2019, the cannabis market experienced significant challenges as market volatility impacted operators’ ability to access capital and regulatory constraints continued to restrict growth in the industry. During this time, Terra Tech continued to grow brand recognition of its medical and adult-use cannabis products, while also executing on its transformative strategy of merging with OneQor Pharmaceutical (“OneQor”) which closed in early 2020. Following this transaction, the Company now has a new business model that positions us as an acquirer, owner and manager of a diverse group of businesses operating within the cannabinoid industry. These businesses will be niche market leaders that operate in attractive markets with defensible market positions and clear pathways to profitability. This new structure enables the Company to flexibly and opportunistically divest underperforming assets and reallocate capital toward opportunities in the cannabinoid market. Our 2020 goals are focused around leveraging OneQor’s team of world-class scientists to create proprietary formulations and manufacture cannabinoid products for the pharmaceutical industry, as well as to revitalize the THC-related assets operated by Terra Tech. We plan to fund these initiatives utilizing capital from asset sales. We expect this strategy, together with our plans to streamline our cost structure, to increase the value of the Company.”
Financial Update
* For the year ended December 31, 2019, the Company generated revenues from continuing operations of approximately $28.05 million, compared to approximately $20.16 million for the year ended December 31, 2018, an increase of approximately $7.89 million. The increase was primarily due to ramping up production operations, a $3.32 million impact, and increasing dispensary revenue, which accounted for $3.71 million. The Company also saw a 20% increase in revenue generated by Edible Garden from the sales of its produce and herb products.
* Under GAAP standards, the Company was not permitted to record the top line revenue for the discontinued operations. During the course of the quarter, the Company has been operating the discontinued operations and will continue to operate them until the State of Nevada approves the transfer of the cannabis permits. The actual annual revenue including the discontinued operations was $38.56 million, compared to $31.33 million for the year ended December 31, 2018, an increase of $7.23 million or 23%.
* Terra Tech’s gross profit for the year ended December 31, 2019 was approximately $14.65 million, compared to a gross profit of approximately $7.01 million for the year ended December 31, 2018, an increase of approximately $7.64 million. Gross margin for the year ended December 31, 2019 was approximately 52.23%, compared to approximately 34.77% for the year ended December 31, 2018.
* Selling, general and administrative expenses for the year ended December 31, 2019 were approximately $45.32 million, compared to approximately $37.91 million for the year ended December 31, 2018, an increase of approximately $7.41 million.
* The net loss attributable to Terra Tech for the twelve months ending December 31, 2019 was $46.93 million, or $0.44 per share, compared to a net loss of $39.75 million, or $0.56 per share, for the twelve months ending December 31, 2018.
* The Company had $1.