No Respite For Terra Tech Corp (OTCMKTS:TRTC)?

On Friday’s trading session, the share price of Terra Tech Corp (OTCMKTS:TRTC) declined 0.25% to close the day at $0.196. The stock performance had remained subdued from past one week. The problem started for the company after it posted its annual report for FY2014. The decline came at a healthy volume of 1.11 million.

The number game

As per the last annual financial number, Terra Tech posted cash of $846,000. It recorded current liabilities amounting to $6.4 million while the annual revenue stood at $7million. The annual net loss came at whopping $22 million. The financial numbers are dismal and obviously not what investors were looking for. However, there was no platform for higher expectations as there were no significant achievements reported by the company in last year.

The financials

Terra Tech recorded cash balance of $3.47 million in last September. However, the cash balance dissipated in December 2014. The company used a large part of balance to meet the heavy expenses connected with the development activities. Apart from it, there were additional expenses associated with the product launch of IVXX brand. The company needs to deal with additional costs due to the ongoing measures to set numerous dispensaries and support growing and cultivation facilities in Nevada.

The liquidity

As per the annual numbers, Terra Tech Corp (OTCMKTS:TRTC) has depressing cash position. The company needs liquidity to support its operations in the near future. It already opted for two cash injections in this year itself. Terra Tech finalized an equity line partnership with Magna Equities at end of December. The details of agreement were disclosed in January. Back in February 2015, it issued a series of ‘Note’ that included heavy discount terms posing enormous dilution risk. The conversion price stands at a 25% discount from Terra Tech’s lowest VWAP that is measured twenty days before conversion date.

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