Newport Beach, May 15, 2015 (GLOBE NEWSWIRE) -- Terra Tech Corp (TRTC) is pleased to announce the filing of its financial results for the quarter ending March 31, 2015. Total revenues generated for the first quarter totaled $763,353, compared to $560,319 for the quarter ended March 31, 2014, which was an increase of $203,034 or a 36.23% increase in sales revenue over the same period last year. The increase was primarily due to revenue generated by IVXX from the sale of its cannabis products. Our gross profit for the quarter ended March 31, 2015 was $228,715, compared to a gross margin of $2,090 for the quarter ended March 31, 2014, an increase of $226,625 or gross margins of 29.96% compared to a 0.37% gross margin for the three months ending March 31, 2014. The increase in gross margin was primarily due to Dutch style hydroponic technology improvements made at the Edible Garden facility. The net result for the quarter ended March 31, 2015 was a net loss of $2,076,514, or $0.01 per share, compared to a net loss of $4,916,490, or $0.03 per share, for the quarter ended March 31, 2014. Specific results figures for the quarter ended March 31, 2015 include:
- Total revenues generated from the sales of Edible Garden and IVXX for the quarter ended March 31, 2015 totaled $763,353, an increase of 36.23% from the quarter ended March 31, 2014.
- Gross profit for the quarter amounted to $228,715 for a 29.96% gross margin. Gross profit increased $226,625 for the quarter ended March 31, 2015 compared to gross margin of $2,090 for the quarter ended March 31, 2014. The increase in gross profit is a result of better margins from Edible Garden in the quarter ended March 31, 2015.
- After selling, general and administrative expenses of $2,331,285, an operating loss of $2,102,570 was realized for the quarter. Operating losses decreased $99,145 or 4.50% compared to the first quarter of 2014 operating loss of $2,201,715.
- Non-operating expense totaled $44,455 for the quarter ended March 31, 2015, a decrease of $2,669,320 as compared to an expense of $2,714,775 for the quarter ended March 31, 2014. The decrease in non-operating expense of $2,669,320 was due to the increase in amortization of debt discount in the amount of $41,126 off set by a decrease of $990,000 from the loss from derivatives issued with debt greater than debt carrying value. The reversal of a loss from the fair market valuation of derivatives in the prior year to a gain in the current year for a change in the amount of $1,693,025. There was a decrease in interest expense of $27,421 due to less debt outstanding in the quarter.
- The net result for the quarter ended March 31, 2015 was a loss of $2,076,514 or $0.01 per share compared to a loss of $4,916,490 or $0.03 per share for the first quarter of 2014. The net loss for the first quarter of 2015 decreased by $2,839,976 or 57.8% as compared to the first quarter of 2014, primarily due to an increase in sales and a decrease in losses generated from derivatives.
Management will continue to make an effort to lower operating expenses and increase revenue. The company will continue to invest in further expanding operations as well as a comprehensive marketing campaign with the goal of accelerating awareness of the company's product lines. The full 10-Q filing is available on the SEC's website at http://edgar.sec.gov/
"Last year we made a commitment to shareholders to increase our gross margins and we are pleased at the progress we have made in the first quarter of 2015," explains Derek Peterson, CEO of Terra Tech. "During the quarter we were able to introduce our cannabis concentrates which carried with them healthy margins and we have been able to reduce our operating costs at EG which also added to the improvement. Even though IVXX must operate as a not for profit in the State of California, in order to maintain compliance, we are able to use any capital produced from that division to reinvest back into the brand, to continue to develop our infrastructure and to help reduce the company's cash burn. The value adds are less capital we need to raise, resulting in less dilution for shareholders. We are working diligently on the California legislation to a help create a for profit platform. Meanwhile we will continue to aggressively and methodically expand our brand throughout the largest medical cannabis market in the country. In addition our branding strength should carry over into other markets, including Nevada, which is a for profit environment. We believe to have longevity in this market brand development is one of the most important assets of the company. Fortunately we are able to utilize the cash generated from that subsidiary to continue to invest in its growth."
Key developments in the quarter
- IVXX produced and shipped concentrates in the first quarter of 2015.
- IVXX premium cannabis concentrates were distributed to multiple medical marijuana dispensaries throughout the California market.
- Edible Garden expanded their Walmart footprint.
- The company launched a new website IVXX.com to support their new cannabis brand.
- MediFarm began the process of developing their architectural and building plans needed to begin construction.
- MediFarm submitted and has received preliminary approval for business licensing in the City of Las Vegas, City of Reno as well as Washoe County.
- MediFarm worked closely with the State of Nevada's Division of Health and Public Safety to ensure that all owners, directors and employees will receive their required state agent registration cards which are necessary to operate.
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, Food Emporium and others throughout New Jersey, New York, Delaware, Maryland, Connecticut, and Pennsylvania. MediFarm LLC is focused on medical cannabis businesses throughout Nevada. IVXX LLC is a wholly owned subsidiary that produces medical cannabis extracted products sold to regulated medical cannabis dispensaries throughout California.
For more information about Terra Tech Corp visit: www.terratechcorp.com
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For more information about Edible Garden visit: http://www.ediblegarden.com
Visit Edible Garden on Facebook @ https://www.facebook.com/ediblefarms
Visit IVXX on Facebook @ https://www.facebook.com/ivxxbrand
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.