Irvine, Aug. 13, 2014 (GLOBE NEWSWIRE) -- Terra Tech Corp (TRTC) is pleased to announce the filing of its financial results for the quarter ending June 30, 2014. Total revenues generated from sales for the second quarter totaled $3,711,801, an increase of $3,046,436 or 458% from the quarter ended June 30, 2013, which totaled $665,365. The primary reason was due the revenue generated from Edible Garden.
The net result for the quarter ended June 30, 2014 was a loss of $0.03 per share compared to a loss of $0.01 for the quarter ended June 30, 2013. The company finished the quarter with a strong cash position of over $2.6 million and total assets of $8.8 million. The company exceeded their revenue guidance of $3.5 Million for the second quarter and reaffirms their full year 2014 revenue guidance of $7 Million. The full 10-Q filing is available on the SEC's website at http://edgar.sec.gov/
"Our primary concentration in 2014 has been building revenue and ramping production, which is expensive. Now that we have a strong revenue base we are beginning to balance that goal into the end of year and throughout 2015 with increasing margins, reducing costs and focusing on working towards profitability," explains Derek Peterson, CEO Terra Tech Corp. "We made some significant progress with both Edible Garden and our cannabis initiatives during the first half of the year. We've added several new key retailers and distribution points for our line of living produce and have made great headway throughout Nevada in securing a permit to operate a Medical Marijuana Enterprise. Our objective for the remainder of the year is to continue to grab market share for Edible Garden, develop opportunities in the cannabis field and to seek out symbiotic mergers and acquisitions."
Terra Tech has recently extended a term sheet to acquire Naturally Beautiful Plants LLC. In April 2013 Terra Tech discovered some change of ownership covenants that existed within NB Plants credit facilities that required the company to refinance. The cost associated with refinancing proved too significant for the company and shareholders to absorb at that time. Management made the decision to defer the acquisition until those fees were more manageable; currently it is our understanding that those fees no longer exist. The company is looking to close the deal no later than December 31, 2014.
"Closing this transaction has been a goal since we originally announced it. There is a synergistic benefit to owning NB Plants from an operational standpoint not to mention they have been both cash flow and net income positive, which aligns with our priority of moving the company towards profitability," explains Ken VandeVrede, COO of Terra Tech
- The Clark County Board of Commissioners voted to approve a special use permit for MediFarm's vertically integrated and co-located medical marijuana cultivation and production establishments.
- Terra Tech entered into an exclusive distribution agreement with Vaporin Inc. to supply proprietary vaporizer products to our cannabis dispensary relationships throughout California, Colorado, Washington and Oregon. As part of the agreement Terra Tech is receiving 1.5 Million shares of restricted Vaporin Common stock, preferential pricing and exclusive rights to the four states. In addition the Medifarm team began work with Vaporin to design a line of cutting edge, high end Vape Pens.
- Walmart, Stew Leonards and 10 others were added to the list of retailers distributing the Edible Garden™ brand. In total the company added approximately 200 retail locations during the quarter bringing the total to roughly 1000 retailers.
- Edible Garden™ launched Snip-Its™, a small living herb plant offered as an alternative to imported cut herbs. The product is now being shipped to several retailers.
- Edible Garden launched a new consumer website www.ediblegarden.com.
- Edible Garden launched their Greenhouse Abilities Training Program. In partnership with Abilities of Northwest Jersey, this new program is focused on providing individuals with mental or physical disabilities the opportunity to gain experience and self-confidence working in the greenhouse industry.
Edible Garden is continuing to expand their retail footprint and in active discussions with retailers throughout the country. The company is focused on developing a footprint in the Southeast market as well as broader expansion in the Midwest. Currently the new 5-acre hydroponic facility is at 75% capacity and the company is in the process of installing automated Dutch hydroponic tables in 2 acres. The company made the investment to shift the produce cultivation taking place in NB Plants facility over to EG's facility which should help reduce costs and align with the company's objective of increasing profitability. These systems should increase productivity while reducing labor. The company is currently testing additional products including various lettuce mixes, vegetables and other produce to expand the brand within their current retail footprint.
The company, with the intent that they will operate Medical Marijuana Establishments (MME) in Nevada, has formed 3 new subsidiaries. MediFarm, a Nevada limited liability company, was formed on March 19, 2014. MediFarm I, a Nevada limited liability company, was formed on July 18, 2014. MediFarm II, a Nevada limited liability company, was formed on July 30, 2014. Prior to opening their planned MME, they must obtain certain certificates and permitting. Currently, only MediFarm has commenced this process.
Since the close of the quarter, the company announced that MediFarm has successfully submitted its applications for both a special use permit and compliance permit to the City of Las Vegas, Nevada. MediFarm's special use permit application was submitted to the City's Planning Department on July 17th. On July 23rd, MediFarm submitted its application and business plan to the City's Business Licensing Department to obtain a Medical Marijuana Dispensary Compliance Permit. Both MediFarm I and MediFarm II were formed to pursue MME in Washoe County. The necessity for multiple entities is due to differences in strategic partners as well as advisory board members.
"Our team submitted competitive applications in both Clark County and the City of Las Vegas", said Salwa Ibrahim, President of MediFarm. "We are currently assembling our applications for Northern Nevada, as well as preparing our applications for the State which we intend on submitting by the August 18th deadline."
On June 16, 2014, Florida Governor Rick Scott signed into law Senate Bill 1030, which permits five dispensing organizations in the state of Florida to cultivate, process and dispense non-smokable, low-THC cannabis. The Florida Department of Health is currently engaged in the administrative rule making process, and is required under the law to authorize the establishment of five dispensing organizations no later than January 1, 2015.
The company recently signed a LOI with Florida Tuxedo Plants, Inc., one of the qualified nurseries listed by the state. The LOI affords the companies 90 days to negotiate terms and enter a definitive agreement.
"Florida is an important market and our hope is that responsible regulations are put in place allowing for a sustainable medical program to develop. The company recently retained two Florida-based consultants to assist the company with its strategy and efforts to pursue opportunities in this new market," explains Derek Peterson, CEO of Terra Tech.
NRTI & Lab:
Terra Tech has been working with Inergetics, Inc. to develop a line of natural cannabidiol (CBD)-based nutritional supplements. NRTI has been working diligently in developing an advisory team and focusing on testing for bioavailability. Concurrently Terra Tech has been working on finishing their extraction lab located in Oakland, Ca. On August 25th, Eden Labs is set to install and configure the supercritical C02 extractor, and combined fractionation vessel, which allows the company to isolate individual cannabinoids from plant based materials. They will then be able to individually test and re-formulate these compounds to study and potentially treat various ailments. This allows Terra Tech to have full control over the extraction process and to supply NRTI and others with the specified compounds they need to formulate their supplements. Terra Tech expects the lab to be fully functional by September 1st 2014.
In June the company announced they had recently become aware of potentially libelous statements made through multiple online sources. The company has identified the individuals and entities involved. The company subsequently retained Carl F. Schoeppl of the law firm Schoeppl & Burke P.A. to investigate the matter and to recommend appropriate legal options for the company. Mr. Schoeppl, is a former senior federal prosecutor with the United Sates Securities and Exchange Commission (SEC) Division of Enforcement. The company intends to protect their shareholders to the fullest extent permitted by law.
On July 31, 2014, the Company entered into a letter agreement with Dominion Capital LLC, amending the Securities Purchase Agreement dated February 5, 2014, by and between the Company and Dominion. Pursuant to the terms and conditions of the Letter Agreement, the funding obligations of Dominion under the Purchase Agreement were accelerated. On July 31, 2014, Dominion funded, in a single tranche, $2,750,000, to the Company. The $2,750,000 was the balance of $6,550,000 due to the Company under the Purchase Agreement. On August 8, 2014 the company filed with the Securities and Exchange Commission a Form S-1 for the resale of securities underlying this financing. The acceleration of this note increases the company's cash reserves to approximately $5 Million.
"The company has built a stable cash reserve to manage continued operations, invest in strategic opportunities and finance potential acquisitions. While raising capital adds to the share count it is necessary to execute on our business plan. Management is focused on engaging in accretive opportunities with the capital we raise in an effort to return shareholder value," explains Mike James, CFO Terra Tech.
The company will continue to update shareholders throughout the remainder of the year. Additional updates regarding the company's efforts in Nevada and Florida as well as other markets will be forthcoming.
About Terra Tech
Terra Tech Corp. (TRTC) through its wholly-owned subsidiary GrowOp Technology, specializes in controlled environment agricultural technologies. The company integrates best-of-breed hydroponic equipment with proprietary software and hardware to provide sustainable solutions for indoor agriculture enterprises and home practitioners. Our complete product line is available at specialty retailers throughout the United States, and via our website. Through its 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, A&P, Kroger and others throughout Massachusetts, New Hampshire, New Jersey, New York, Delaware, Maryland, Connecticut, Pennsylvania, Maine, Indiana, and Ohio.
For more information about Terra Tech Corp visit: http://www.terratechcorp.com
Visit us on Facebook @ http://www.facebook.com/terratechcorp
Follow us on Twitter @terratechcorp
For more information about Edible Garden visit: http://www.ediblegarden.com
Visit Edible Garden on Facebook @ https://www.facebook.com/ediblefarms
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.
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Source:Terra Tech Corp.