SOURCE: Envision Solar International, Inc.

August 14, 2013 16:15 ET

Envision Solar Announces Second Quarter 2013 Results

Developing New Products With Lower Capital Requirements and Faster Deployments

SAN DIEGO, CA --(Marketwired - August 14, 2013) - Envision Solar International, Inc. (OTCQB: EVSI) ("Envision Solar," or the "Company"), a manufacturer and designer of unique, architecturally accretive, renewable energy systems, today announced results for the three months ended June 30, 2013.

Desmond Wheatley, Chief Executive Officer of Envision Solar, began, "We have made significant advances in the development of products with higher revenue potential, broader appeal, lower price points and, we believe, lower barriers to adoption. While we have seen an elongation of certain sales cycles associated with some of our larger initiatives, we continue to make progress and still expect to capitalize on those efforts in the coming quarters."

Second Quarter 2013

Net revenues were $2,282 for the three months ended June 30, 2013 compared to $111,793 in the comparable period in the prior year. Envision Solar substantially completed two large projects in the second quarter of 2012. While the Company is making positive progress with Cadillac to introduce its products to Cadillac's U.S. dealer network, the sales cycle has been protracted.

Operating expenses were $504,949 during the second quarter of 2013, down from $599,692 in the second quarter 2012. The Company incurred lower non-cash stock-based compensation expenses in the three months ended June 30, 2013 while marketing and payroll related expenses increased.

Interest expense was $161,638 for the second quarter of 2013, down approximately 21% from $205,156 for the same period in 2012. Reduced amortization of debt discounts associated with previous debt modifications was the primary driver of the lower interest expense.

Net loss and net loss per share were $708,392 and $0.01 in the second quarter of 2013 compared to $235,405 and $0.004 in the same period in 2012, respectively. The weighted average shares outstanding increased from 56,696,863 to 70,894,547 in 2013.

Envision Solar had $1,341,669 of cash on hand at June 30, 2013. Cash used in operating activities was $690,015 for the first six months of 2013 compared to operating cash outflows of $381,708 for the comparable period a year ago. A primary reason for the increased cash usage for the first six months of 2013 was a higher net loss.

Business Updates

Envision Solar continues to work with the corporate teams at Cadillac to increase awareness and deployment of its Solar Tree® structures to Cadillac's 952 U.S. dealerships. Additionally, it is developing new products that should have reduced sales cycles and faster time to recoupment of investments for its prospective clients. They include the following:

  1. EV ARC™ (Electric Vehicle Automous Renewable Charger). This portable product can be deployed in minutes and requires less capital for customers. Envision Solar has purchase contracts in place with the first two customers for EV ARC™ and will deliver the products in the U.S. and for an overseas customer starting this month.
  2. Solar Tree® HVLC (High Volume Low Cost) structure. This product leverages the high quality engineering and fabrication of the standard Solar Tree® structure without many of the aesthetic attributes and details. Solar Tree® HVLC will be significantly less expensive than the standard Solar Tree® structure; it is designed for broader deployments and for instances where low cost energy production is an important consideration for prospective buyers.
  3. Solar Tree® SMP (Sustainable Media Platform). The Company has partnered with Daktronics, the leading manufacturer of digital billboards, to create a Solar Tree® structure with static or digital media capabilities. The Company believes these products will provide rapid ROI for retail and commercial real estate owners located in high traffic areas.

2013 Outlook

Envision Solar continues to develop new and existing relationships. The Company anticipates several upcoming milestones:

  1. Q3 2013. Production of the first of the Company's products for export to an overseas customer
  2. Q3 2013. Deployment of the initial production of EV ARC™s
  3. Q4 2014. Increased adoption of the Cadillac Solar Tree® structure

About Envision Solar International, Inc.

Envision Solar, www.envisionsolar.com, designs, manufactures and deploys unique, proprietary and architecturally accretive renewable energy systems with a Drag & Drop Infrastructure™ product line. The company's flagship products include the patented Solar Tree® array and Solar Tree Socket™ solar shaded parking solutions with EnvisionTrak™, a proprietary and patent pending solar tracking machine, and SunCharge™ Column Integrated Electric Vehicle Charging Stations.

Based in San Diego the company integrates only the highest quality components into its Made in America products ensuring long and trouble free service and timeless beautification of the parking lots they serve. This unique approach to the industry allows the company's commercial and institutional customers to take full advantage of the value creation associated with transforming parking lots into beautiful, shaded, renewable energy generation plants shrouded in the "Green Halo." For more information on Envision Solar, visit www.envisionsolar.com or call (866) 746-0514.

About MZ Group

MZ Group, subsidiary of @titude Global, a multinational company and the world's largest independent global investor relations consulting firm, provides investor relations, corporate communications, market intelligence, corporate governance and technology products and services. Founded in 1999, MZ Group focuses on innovation and personalized services, supported by its exclusive "one-stop-shop" business model. With offices in São Paulo, New York, Chicago, San Diego, Vancouver, Hong Kong, Beijing, Shanghai, Taipei and Mumbai, MZ has approximately 350 professionals who serve over 580 clients in 12 countries. For more information, please visit www.mzgroup.com.

Forward-Looking Statements

This Press Release may contain forward-looking statements regarding future events or our expected future results that are subject to inherent risks and uncertainties. All statements in this Report other than statements of historical facts are forward looking statements. Forward looking statements are generally accompanied by terms or phrases such as "estimate," "project," "predict," "believe," "expect," "anticipate," "target," "plan," "intend," "seek," "goal," "will," "should," "may," or other words and similar expressions that convey the uncertainty of future events or results. Statements contemplating or making assumptions regarding actual or potential sales, market size and demand, prospective business contracts, customer orders, trends or operating results also constitute forward looking statements. Our actual results may differ substantially from those indicated in forward looking statements because our business is subject to significant economic, competitive, regulatory, business and industry risks which are difficult to predict and many of which are beyond our control. Our operating results, financial condition and business performance may be adversely affected by a general decline in the economy, unavailability of capital or financing for our prospective customers to purchase products and services from us, competition, changes in regulations, a decline in the demand for solar energy, a lack of profitability, a decline in our stock price, and other risks. We may not have adequate capital, financing or cash flow to sustain our business or implement our business plans. Current results and trends are not necessarily indicative of future results that we may achieve.

   
   
Envision Solar International, Inc. and Subsidiaries  
Condensed Consolidated Balance Sheets  
   
  June 30,   December 31,  
  2013   2012  
  (Unaudited)      
Assets        
           
Current Assets          
  Cash $1,341,699   $257,396  
  Accounts Receivable, net  -    329,516  
  Prepaid and other current assets  90,293    63,181  
  Inventory, net  68,349    56,325  
Total Current Assets  1,500,341    706,418  
           
Property and Equipment, net  66,872    91,276  
           
Other Assets          
  Debt issue costs, net  2,500    5,000  
  Deposits  9,407    9,407  
Total Other Assets  11,907    14,407  
           
Total Assets $1,579,120   $812,101  
           
           
Liabilities and Stockholders' Deficit        
           
Current Liabilities          
  Accounts Payable $399,338   $630,036  
  Accrued Expenses  466,116    358,450  
  Sales Tax Payable  36,828    38,864  
  Deferred Revenue  80,000    80,000  
  Billings in excess of costs and estimated earnings on uncompleted contracts  -    26,838  
  Convertible Note Payable -Related Party  116,616    122,683  
  Notes Payable  97,000    97,000  
  Convertible Notes Payable, net of discount of $228,037 and $456,073 at June 30, 2013 and December 31, 2012, respectively  1,278,289    1,050,253  
  Embedded Conversion Option Liability  919,734    456,073  
           
Total Current Liabilities  3,393,921    2,860,197  
           
Commitments and Contingencies (Note 6)          
          
Stockholders' Deficit          
Common Stock, $0.001 par value, 162,500,000 million shares authorized, 71,248,942 and 58,098,609 shares issued or issuable and outstanding at June 30, 2013 and December 31, 2012, respectively  71,249    58,098  
Additional Paid-in-Capital  24,690,897    22,715,994  
Accumulated Deficit  (26,576,947 )  (24,822,188 )
           
Total Stockholders' Deficit  (1,814,801 )  (2,048,096 )
           
Total Liabilities and Stockholders' Deficit $1,579,120   $812,101  
           
The accompanying notes are an integral part of these unaudited Condensed Consolidated Financial Statements  
   
   
   
Envision Solar International, Inc. and Subsidiaries  
Condensed Consolidated Statements of Operations  
Unaudited  
   
  For the Three Months 
Ended June 30,
    For the Six Months 
Ended June 30,
 
  2013     2012     2013     2012  
                               
Revenues $ 2,282     $ 111,793     $ 157,810     $ 420,508  
                               
Cost of Revenues   24,874       75,054       220,620       237,798  
                               
  Gross Profit (Loss)   (22,592 )     36,739       (62,810 )     182,710  
                               
Operating Expenses (including stock based compensation expense of $279,887 and $462,509 for the six months ended June 30, 2013 and 2012, respectively)   504,949       599,692       1,017,849       1,176,365  
                               
Loss From Operations   (527,541 )     (562,953 )     (1,080,659 )     (993,655 )
                               
Other Income (Expense)                              
  Other Income   487       737       837       938  
  Gain on Debt Settlement   -       7,426       112,667       28,195  
  Interest Expense   (161,638 )     (205,156 )     (322,343 )     (560,312 )
  Change in fair value of embedded conversion option liability   (18,700 )     524,575       (463,661 )     306,340  
Total Other Income (Expense)   (179,851 )     327,582       (672,500 )     (224,839 )
                               
Income (Loss) Before Income Tax   (707,392 )     (235,371 )     (1,753,159 )     (1,218,494 )
                               
Income Tax Expense   1,600       34       1,600       870  
                               
Net Loss $ (708,992 )   $ (235,405 )   $ (1,754,759 )   $ (1,219,364 )
                               
Net Loss Per Share- Basic and Diluted $ (0.01 )   $ -     $ (0.02 )   $ (0.02 )
                               
Weighted Average Shares Outstanding- Basic and Diluted   70,894,547       56,696,863       67,886,818       53,231,673  
                               
The accompanying notes are an integral part of these unaudited Condensed Consolidated Financial Statements  
   
   
   
Envision Solar International, Inc. and Subsidiaries  
Condensed Consolidated Statements of Cash Flows  
Unaudited  
   
  For the Six Months Ended June 30,  
  2013     2012  
               
CASH FLOWS FROM OPERATING ACTIVITIES:              
Net Loss $ (1,754,759 )   $ (1,219,364 )
Adjustments to Reconcile Net loss to Net Cash Provided by (Used in) Operating Activities:              
  Depreciation   24,404       34,019  
  Warrants issued as debt issuance fees   -       12,274  
  Common stock issued for services   37,500       6,993  
  Amortization of prepaid expenses paid in common stock   72,217       27,401  
  Gain on debt settlement,net   (112,667 )     (28,195 )
  Compensation expense related to grant of stock options   170,170       415,841  
  Change in fair value of embedded conversion option liability   463,661       (306,340 )
  Amortization of debt issue costs   2,500       30,480  
  Amortization of debt discount   228,036       350,265  
Changes in assets and liabilities:              
(Increase) decrease in:              
  Accounts receivable   329,516       1,368,561  
  Prepaid expenses and other current assets   (99,329 )     (30,783 )
  Inventory, net   (12,024 )     -  
  Costs and estimated earnings in excess of billings on uncompleted contracts   -       (31,253 )
  Deposits   -       (6,250 )
Increase (decrease) in:              
  Accounts payable   (118,031 )     (899,700 )
  Accounts payable - related party   -       (109,145 )
  Accrued expenses   107,666       111,847  
  Sales tax payable   (2,036 )     (5,438 )
  Billings in excess of costs and estimated earnings on uncompleted contracts   (26,838 )     (102,921 )
NET CASH USED IN OPERATING ACTIVITIES   (690,015 )     (381,708 )
               
CASH FLOWS FROM INVESTING ACTIVITIES:              
  Purchase of equipment   -       (4,213 )
NET CASH USED IN INVESTING ACTIVITIES   -       (4,213 )
               
CASH FLOWS FROM FINANCING ACTIVITIES:              
  Proceeds from Sale of Common Stock   1,935,200       1,050,000  
  Payments of offering costs related to sale of common stock   (154,816 )     (84,000 )
  Repayments on convertible notes payable   (6,067 )     -  
NET CASH PROVIDED BY FINANCING ACTIVITIES   1,774,317       966,000  
               
NET INCREASE IN CASH   1,084,302       580,079  
               
CASH AT BEGINNING OF PERIOD   257,396       468,776  
               
CASH AT END OF PERIOD $ 1,341,698     $ 1,048,855  
               
Supplemental Disclosure of Cash Flow Information:              
  Cash paid for interest $ -     $ 6,134  
  Cash paid for income tax $ 1,600     $ 1,071  
               
Supplemental Disclosure of Non-Cash Investing and Financing Activities:              
  Convertible debt converted to shares of common stock $ -     $ 1,000,000  
  Convertible accrued interest converted to common stock $ -     $ 47,836  
  Common stock issued for debt settlement $ -     $ 29,000  
  Shares of common stock issued for prepaid services $ 37,500     $ -  
   
The accompanying notes are an integral part of these unaudited Condensed Consolidated Financial Statements  
   
   

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