Terra Tech Corp. (OTCMKTS:TRTC) Slips After Annual Report
It’s 10-K season on the OTC and companies are busy publishing their reports. Some of the filings pushed companies up, others had an adverse effect on share prices. Terra Tech Corp. (OTCMKTS:TRTC) was among the latter. In the wake of the filing, the company closed Tuesday 8% down on volume comparable to the last month’s average.
The ticker took a hard nose dive immediately following the market open, slipping momentarily to $0.96 but recovered quickly. The report did not contain a lot of earth-shattering insights into the company’s activity but provided updated financial information. Here is the quick rundown of the figures, as of December 31, 2013:
- $26 thousand in cash
- $3.9 million in current liabilities
- $2.1 million in 2013 annual revenues
- $6.1 million in 2013 annual net loss
Revenues have grown significantly on a YoY basis due to the acquisition of Edible Garden but the company’s gross profits have actually shrunk. After deducting costs, TRTC was left with a 4% gross profit margin, or a mere $89 thousand. The filing itself states that at this point, despite the 285% growth of revenues compared to 2012, revenues are not yet sufficient to cover ongoing operating expenses, so there will very likely be more convertible notes down the road. The company’s report once again shows a significant number logged as “loss from derivatives issued with debt greater than debt carrying value”. This accumulated through the issuance of older convertible notes used to secure financing for operations.
The 10-K also lists that company officers and directors received absolutely nothing in terms of annual compensation, be it in the form of cash remuneration or awards. Traders should not feel too bad about this as management and directors together hold 61% of the outstanding common stock of TRTC and as recent Form 4 filings have shown, some of them are comfortable with cashing no small amounts of their stake.