Revenue for the quarter was $8.6 million, representing a 26% increase when compared to the period in the previous year. The company attributed its growth to the revenue generated from its cannabis dispensaries in California and Nevada, as well as a 40% increase in sales of produce and herbs nationwide through its Edible Garden brand. Compared to the same period last year, the company’s gross margin increased from 5.3% to 19.1%
Expenses for the company increased over the last year, rising from $6.4 million to $8.4 million. Likewise, the company’s long term debt of the last quarter has increased from $6.6 million in Dec. 31, 2017 to $13.2 million as of March 31, 2018. However over the last year the company’s losses have slightly decreased from $10.1 million to $10 million.
In terms of cash on hand, the company has $4.5 million. Additional, the company was able to secure an additional $40 million in funding during the last quarter and will be paid out in $5 million installments over the next two years. Equity for stockholders increased over the last quarter to $85.7 million.
“We were pleased to report revenue growth of 26% compared to the prior year period,” commented Derek Peterson, Chief Executive Officer of Terra Tech. “This was the first quarter in which we generated revenues from sales to California’s adult use cannabis market. We believe these revenues will accelerate as the industry’s supply chain professionalizes and the adult-use market matures.”
So far the markets have responded positively to Terra Tech’s financial results, causing the company’s stock to briefly rise to $3.15 per share before leveling off to $2.92. On May 10, 2018, Peterson held a conference call to answer shareholder questions, a replay of the call can be found here.