After the close of trading on August 8th, Terra Tech Corp. (OTC:TRTC) announced its second quarter financial results for the period ended June 30th, 2017. Although this release doesn't cover the start of adult-use sales at Terra Tech's Blüm Nevada locations, there are still a couple of highlights from the release that current and potential investors in Terra Tech should pay attention to:
Related: Terra Tech's Nevada Dispensaries to Open for Adult-Use Sales
Total revenues for Q2'17 were $7.8 million, down 24% from the second quarter of last year. This decrease in revenue was attributable to the expiration of Edible Garden's contract with a grower of floral products, partially offset by growth in the company's cannabis segment. Revenues in Terra Tech's cannabis segment increased 57.9% on higher sales at the company's Blüm dispensary in Oakland, California, sales from the Company's four Nevada-based Blüm Dispensaries and sales of IVXX cannabis products.
Terra Tech generated approximately $1.5 million of gross profit in the second quarter of 2017. Gross margin in Q2'17 was approximately 19%, up from approximately 16% in the second quarter of 2016. The improvement in gross margin was attributable to the expiration of the floral product contract at Edible Garden, partially offset by a decline in margins at the company's cannabis segment due to discounts.
In Q2'17, selling, general and administrative expenses increased to $6.0 million from $5.4 million in the second quarter of 2016. The increase was primarily attributable to an increase in salary expenses related to hiring at the company's Blüm locations as well as higher accounting and compliance costs.
Net losses in Q2'17 were approximately $0.5 million, or $0.00 per share, compared to net losses of $4.9 million, or $0.01 per share for the quarter ended June 30, 2016.
As of June 30, 2017, the company had $9.1 million in cash and cash equivalents.
Terra Tech received provisional permits for both its San Leandro, CA dispensary and production facility and its Oakland, CA cultivation facility. The company expects both facilities to be fully operational in the fourth quarter of 2017.
The company also expanded its cannabis cultivation capacity by launching a new 'craft cultivation' model, and by signing a one-year contract with their first craft cultivator, Panther Gap Farms.
Hungry for more? Check out Terra Tech's full 10-Q filling with the SEC embedded below:
Be sure to check out Terra Tech's marijuana stock profile to learn more and view a custom stock chart. Also, if you are happen to be on your way to Burning Man, experience Terra Tech for yourself by making a pit stop at their Blüm location in Reno, NV.
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