Terra Tech Corp (OTCMKTS:TRTC) rolled over its losses from its Monday’s session. The company kick started the week on a bad note after posting an extremely disappointing annual report. The impact of the Annual Report could have been devastating for the company, had it not posted a series of updates before. Hence, despite a 20% fall on Monday followed by extended losses yesterday, the overall impact on its shares is less than what it could have been.
Saved from bigger losses
As per the report released, Terra Tech Corp (OTCMKTS:TRTC) said that its cash balance stood at $846,000 with current liabilities amounting to $6.4 million. Also, the company met its revenues guidance by reporting $7 million in annual revenues while it recorded the annual net loss as huge as $22 million. The annual report indicates that the company used up nearly 2.5 million of its cash during September to December 2014. The sudden diminished cash balance is explainable as the company has significantly raised its expenditure towards the development and roll out of its IVXX brand.
Expansion work remains
Still the company has a herculean task ahead as its goals include extensive expansion plans during the current year. The company has given hopes that several new dispensaries, cultivation farms will start operating in Nevada this year. It is assumed that the current cash crunch will be met by the two toxic funding deals, which the company signed over the last few month. Firstly, it entered into an equity deal with Magna Equities. Secondly, it announced convertible notes of principal amounting $3 million.
Over the last few days, Terra Tech Corp (OTCMKTS:TRTC) successfully kept the interest of its investors intact by releasing one or the other update. Most of its press releases relate to the successful launch of IVXX cannabis products in various areas of the U.S. However, the annual report took all the attention lately, sending the stock down by another 4% in yesterday’s trade. A total of 1.41 million shares traded on the day.