Terra Tech Corp (OTCQX:TRTC) experienced a share-hike earlier this week. Increasing 20% in 24-hours, it was a sign that investors were jumping back on board. Now, with the release of its Q4 results for fiscal 2018, TRTC stock is on the up again. This time by 11%.
Terra Tech: 2018 was Rough
CEO of Terra Tech Derek Peterson mentioned early in the release that the company “faced several headwinds in 2018 that slowed [its] progress and impacted top-line results,” The comment was a precursor of what to expect from the numbers.
The “headwinds” were as follows:
- Terra Tech was rocked by the broader market sell-off that swept across the entire cannabis market in both October and December of 2018.
- It had trouble navigating the legal landscape of recreational cannabis in California. Changing regulations here meant upscaling and relocating its “IVXX cannabis production to a new facility.” This caused a production stall lasting several months.
- The company then found itself in the middle of a nasty lawsuit with a former partner. With allegations against it of “inaccurate bookkeeping practices” and “deceptive financial reports,” Terra Tech found it hard to convince investors otherwise.
All-in-all, Terra Tech stock was hit particularly bad in 2018, losing 91.7% of its value over the course of the year.
Terra Tech Q4 Results
So noting TRTC’s turbulent activity in 2018, those who expected rivetting Q4 results for Terra Tech have not been paying close attention.
Rather expectedly, the company had an overall loss of $4.47 million USD in revenues:
“For the year ended December 31, 2018, the Company generated revenues of approximately $31.33 million, compared to approximately $35.80 million for the year ended December 31, 2017, a decrease of approximately $4.47 million.”
The company has attributed this loss to the high taxes placed on cannabis sales in California.
Further, Terra spent more in 2018 than in previous years on selling and general and administrative expenses.
Interestingly, however, investor equity increased in 2018, amounting to roughly $94.9 million, representing “an increase of approximately $18.1 million compared to approximately $76.8 million as of December 31, 2017.”
Despite the negative aspects of Terra Tech’s Q4 results, TRTC is up 11% at the time of writing. It seems investors aren’t phased but are instead excited for the future. 2019 is looking far more promising for Terra Tech, and CEO Peterson explains such:
“We think are going to set the stage for 2019 being one of the most favorable years for the Company […] we are going to see new opportunities that will present themselves to us as we strengthen our market cap strengthen as our asset strength. We think it’s going to put us in a very good position coming towards the end of the year…”
For $1.18 USD, Terra Tech stock may have turned a new leaf and could be one to watch in 2019.
Featured Image: Canva