Envision Solar Announces Full Year 2012 Financial Results; Provides Business Update and Outlook for 2013

Mon Apr 1, 2013 8:00am EDT

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SAN DIEGO,  April 1, 2013  /PRNewswire/ -- Envision Solar International, Inc.
(EVSI: OTCQB) ("Envision Solar," or the "Company"), a manufacturer and designer
of unique, architecturally accretive, renewable energy systems, today announced
results for the three and twelve months ended  December 31, 2012.

CY2012 Highlights:

* Signed MOU with Horizon Energy for 2,300 Solar Tree arrays in  North Carolina
* Sold first two units of its breakthrough EV ARC standalone solar charging
* Signed contract for the first dealership in the Cadillac Solar Tree Program  
* Reduced operating cash outflows by approximately  $808,000 to $1,162,812
* Signed first international sales agreement with Al Habtoor in the  Middle East
* Exhibited at first International trade show in  Abu Dhabi

Desmond Wheatley, Chief Executive Officer of Envision Solar, explained, "We are
making the necessary investments to build a stronger and more competitive
company.  After two years of working with General Motors, we are delighted to
become the exclusive provider of Solar Tree arrays to Cadillac's 952 U.S.
dealerships. This is truly a breakthrough relationship that will provide
significant long term benefits to Envision Solar, Cadillac, each dealership
owner and consumers alike."

Full Year 2012 Financial Results

Net revenues were  $721,835  for the twelve months ended  December 31, 2012 
compared to  $2,303,142  for the same period in the prior year. The Company's
decision to focus on engineering and scalability improvements while developing
strategic relationships with larger customers resulted in elongated sales cycles
in 2012.  

Operating expenses were  $2,368,793  during 2012, down from  $3,571,558  in
2011. The Company incurred lower non-cash stock-based compensation expenses in
2012 while reducing certain targeted marketing expenses and investor relations

Net loss and net loss per share were  $2,481,728  and  $0.04  in 2012 compared
to  $2,547,493  and  $0.05  in 2011, respectively. The weighted average shares
outstanding increased from 47,440,255 to 55,479,675 in 2012.

Envision Solar had  $257,396  of cash and  $1,726,000  in short term borrowings
at  December 31, 2012. Cash used in operating activities was  $1,162,812  for
the year ended  December 31, 2012  compared to  $1,970,831  for the same period
in 2011.  

Subsequent to the end of fiscal 2012, the Company raised approximately  $1.7
million  (net) in a private placement. The Company intends to complete the 
$2.19 million  private placement sometime in early Q2 2013.

Business Update

Over the past seven years, Envision Solar has developed innovative solar
structures based on proprietary technologies and designs. Its three main product
lines - Solar Tree array, Solar Tree Socket, and EV ARC systems - are used in
retail, utility, commercial property, and government campus parking lots and
public spaces, respectively. The Company has been selected by General Motors to
be the exclusive supplier of Solar Tree arrays to Cadillac's 952 dealers in the
U.S. This opportunity provides an excellent entry into a rapidly growing market
as auto manufacturers and dealers make efforts to enhance their sustainability
image as well as capitalize on the growing consumer demand for electric vehicles

The Company is increasingly well positioned to tap the burgeoning opportunity to
sell its Solar Tree arrays and Solar Groves to corporate, university and
government clients. Entities such as General Motors, McDonalds, Dell, Kyocera,
San Diego Gas and Electric (SDG&E), Axion Power, and the U.S. Navy have deployed
Envision Solar's arrays, often with integrated EV charging stations, on their
campuses and in their parking lots. Customizable for each client's needs and
equipped with Envision Solar's proprietary EnvisonTrak tracking technology and
SunCharge "column integrated" EV charging stations, these highly standardized
and engineered solar products provide rapid deployment and superior performance
and flexibility compared to traditional solar installations.     

Envision Solar's latest product, the EV ARC, is a cost-effective,
easy-to-install, standalone solar charging station that requires no foundation,
no trenching, no building permit and no grid connection. One of the main
prerequisites to mass adoption of EVs is having a sufficient number of charging
stations. EV ARC captures and stores up to 22.5 kWh per day of power in each
integrated unit, sufficient to charge one electric vehicle each day. The Company
will initially target municipal, retail and corporate customers who are looking
for rapid, pain-free deployments of EV charging infrastructure without all the
challenges associated with conventional units. With global sales of EVs
forecasted to be in the tens of millions in the next few years, the Company
expects EV ARC to be a significant source of revenues.

Envision Solar's products provide rapid returns on investment (ROI) to customers
by delivering direct and indirect benefits.  For car dealers, the Solar Tree
arrays will elevate the dealers' branding and drive additional sales through a
highly visible structure that can be customized to suit their brand.  The Solar
Tree arrays also serve as charging stations for electric vehicles - which
creates additional traffic and sales opportunities. Each dealer is able to
garner positive media coverage by installing these innovative and beautiful
structures. The combination of tangible and intangible benefits make Envision
Solar's products economically very attractive. Highly engineered and
architecturally accretive Solar Tree structures attract customers, enhance
property values and improve tenant and employee recruitment and retention.

The Company uses a combination of internal and outsourced resources to design,
manufacture and assemble its products. In the past two years, its engineering
and manufacturing teams have developed and refined a highly scalable and
efficient design and assembly process that allows the Company to produce high
quality products which can be rapidly deployed individually or at scale with
minimal disruption to the customer location. This flexible model, which allows
the Company to manufacture and deploy products based on demand, creates
significant operating leverage which should deliver industry leading
profitability at scale.

Progress Report

The Company made significant investments in 2012, including:

1A redesign of its flagship Solar Tree® structure to allow for a significant
reduction in the field labor required for its installation. 2Redesign and
product development aimed at making the Company's products highly scalable and
exportable both domestically and internationally. 3The invention and engineering
of the EV ARC™. 4Ongoing and successful efforts to close business with large
opportunities such as Cadillac.

Management believes these investments position the Company with sustainable,
competitive advantages to support higher sales.

Mr. Wheatley continued, "We want to become an efficient and profitable company
on a sustainable basis.  Our EV ARC technology, which is easier and less costly
to deploy and capable of delivering power night and day, is an example of our
vision to use less disruptive technologies to enter a large, untapped market."  

2013 Outlook

Envision Solar continues to aggressively invest in new products and pursue new
business opportunities. The Company anticipates several upcoming milestones:

1Q1 2013. Installation of the first Cadillac Solar Tree® structure in a
dealership. 2Q2 2013. Initial roll-out of its EV ARC™ standalone solar charging
station to the market. 3April 2013. Participate as Cadillac's sole solar
provider partner at GM's 2013 dealers' convention. 4Q2 2013. Design and
engineering of the 2300 Solar Tree® installation in North Carolina. 5Q2 2013.
Close $2.19 million equity financing platform. 6FY 2013. First international

"We start 2013 in a stronger position than we have been in since I joined the
Company," concluded Mr. Wheatley. "With our financing nearly complete, we are
focused on executing the commercial opportunities we have with GM, Horizon
Energy and others, while developing a pipeline of future customers and partners.
We look forward to updating our shareholders on these exciting developments in
the coming months."  


This notice does not constitute an offer to sell nor a solicitation to buy a
security.  Any offer to sell or a solicitation to buy a security from the
Company is made only to prospective investors with whom the Company or its
registered placement agent has a pre-existing relationship and only by the
complete Confidential Private Placement Memorandum covering the Company's common
stock and warrants in the private placement, including the risk factors
described in the Memorandum.

The securities offered in the Company's private placement have not been
registered under the Act or any state securities laws.  No shares may be resold,
assigned or otherwise transferred unless a registration statement under the Act
is in effect, or the Company has received evidence satisfactory to it that such
transfer does not involve a transaction requiring registration under the Act and
is in compliance with the Act.

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  Sao 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


Lindsay Adams
Envision Solar International, Inc.
Tel:        +1-858-799-4583
Email:    gosolar@envisionsolar.com 
Web:      www.envisionsolar.com

Investor Relations:
MZ North America
Ted Haberfield, President
Tel:        +1-760-755-2716
Email:    thaberfield@mzgroup.us
Web:      www.mzgroup.us

 Envision Solar International, Inc. and Subsidiaries                                                                                                                                                                                
 Consolidated Balance Sheets                                                                                                                                                                                                        
                                                                                                                                                                                         December 31,                              
                                                                                                                                                                                         2012                  2011              
 Current Assets                                                                                                                                                                                                                  
 Cash                                                                                                                                                                                    $    257,396          $        468,776  
 Accounts Receivable, net                                                                                                                                                                329,516               1,444,974         
 Prepaid and other current assets                                                                                                                                                        63,181                43,861            
 Costs and estimated earnings in excess of billings on uncompleted contracts                                                                                                             -                     42,580            
 Inventory                                                                                                                                                                               56,325                -                 
 Total Current Assets                                                                                                                                                                    706,418               2,000,191         
 Property and Equipment, net                                                                                                                                                             91,276                142,136           
 Other Assets                                                                                                                                                                                                                    
 Debt issue costs, net                                                                                                                                                                   5,000                 30,480            
 Deposits                                                                                                                                                                                9,407                 3,157             
 Total Other Assets                                                                                                                                                                      14,407                33,637            
 Total Assets                                                                                                                                                                            $    812,101          $     2,175,964   
 Liabilities and Stockholders' Deficit                                                                                                                                                                                           
 Current Liabilities                                                                                                                                                                                                             
 Accounts Payable                                                                                                                                                                        $    630,036          $     1,513,691   
 Accounts Payable - Related Parties                                                                                                                                                      -                     109,145           
 Accrued Expenses                                                                                                                                                                        236,029               179,774           
 Accrued Rent                                                                                                                                                                            122,421               113,004           
 Sales Tax Payable                                                                                                                                                                       38,864                42,266            
 Deferred Revenue                                                                                                                                                                        80,000                -                 
 Billings in excess of costs and estimated earnings on uncompleted contracts                                                                                                             26,838                102,921           
 Convertible Note Payable -Related Party                                                                                                                                                 122,683               122,683           
 Notes Payable                                                                                                                                                                           97,000                145,017           
 Convertible Notes Payable, net of discount of $456,073 and $674,254 at December 31, 2012 and 2011 respectively                                                                          1,050,253             1,681,689         
 Embedded Conversion Option Liability                                                                                                                                                    456,073               647,977           
 Total Current Liabilities                                                                                                                                                               2,860,197             4,658,167         
 Commitments and Contingencies (Note 10)                                                                                                                                                                                         
 Stockholders' Deficit                                                                                                                                                                                                           
 Common Stock, $0.001 par value, 162,500,000 million shares authorized,58,097,609and  49,405,732  shares issued or issuable and outstanding at December 31, 2012 and 2011, respectively  58,098                49,406            
 Additional Paid-in-Capital                                                                                                                                                              22,715,994            19,808,851        
 Accumulated Deficit                                                                                                                                                                     (24,822,188)          (22,340,460)      
 Total Stockholders' Deficit                                                                                                                                                             (2,048,096)           (2,482,203)       
 Total Liabilities and Stockholders' Deficit                                                                                                                                             $     812,101         $     2,175,964   
 The accompanying notes are an integral part of these Consolidated Financial Statements                                                                                                                                             

 Envision Solar International, Inc. and Subsidiaries                                                                                             
 Consolidated Statements of Operations                                                                                                           
                                                                                                  For the Year Ended December 31,              
                                                                                                  2012                        2011           
 Revenues                                                                                          $ 721,835                   $ 2,303,142    
 Cost of Revenues                                                                                  553,228                     1,742,791      
 Gross Profit                                                                                      168,607                     560,351        
 Operating Expenses (including stock based compensation expense of                                                                            
 $832,225 for the year ended December 31, 2012 and $1,675,141                                                                                 
 for the year ended December 31, 2011)                                                             2,368,793                   3,571,558      
 Loss From Operations                                                                              (2,200,186)                 (3,011,207)    
 Other Income (Expense)                                                                                                                       
 Other Income                                                                                      1,525                       996            
 Gain on Debt Settlement,net                                                                       42,731                      266,073        
 Interest Expense                                                                                  (972,027)                   (754,126)      
                                    Change in fair value of embedded conversion option liability  647,977                     963,931        
 Total Other Income (Expense)                                                                      (279,794)                   476,874        
 Income (Loss) Before Income Tax                                                                   (2,479,980)                 (2,534,333)    
 Income Tax Expense                                                                                1,748                       13,160         
 Net Loss                                                                                          $ (2,481,728)               $ (2,547,493)  
 Net Loss Per Share- Basic and Diluted                                                             $ (0.04)                    $ (0.05)       
 Weighted Average Shares Outstanding- Basic and Diluted                                            55,479,675                  47,440,255     
 The accompanying notes are an integral part of these Consolidated Financial Statements                                                          

 Envision Solar International, Inc. and Subsidiaries                                                                                                                                    
 Consolidated Statements of Cash Flows                                                                                                                                                  
                                                                                                                      For the Year Ended December 31,                                 
                                                                                                                      2012                                 2011                     
 CASH FLOWS FROM OPERATING ACTIVITIES:                                                                                                                                               
 Net Loss                                                                                                              $     (2,481,728)                    $     (2,547,493)        
 Adjustments to Reconcile Net loss to Net Cash Used in Operating Activities:                                                                                                         
                                         Depreciation                                                                 60,428                               65,026                   
                                         Bad debt expense (recovery)                                                  (14,488)                             14,488                   
                                         Warrants issued as debt issuance fees                                        12,274                               -                        
                                         Common Stock issued for Services                                             6,993                                271,458                  
                                         Amortization of prepaid expenses paid in common stock                        46,226                               97,967                   
                                         Gain on debt Settlement, net                                                 (8,731)                              (223,771)                
                                         Gain on settlement of debt for common stock                                  (34,000)                             (42,302)                 
                                         Compensation expense related to grant of stock options                       766,732                              1,305,716                
                                         Change in fair value of embedded conversion option liability                 (647,977)                            (963,931)                
                                         Amortization of debt discount                                                674,254                              517,284                  
                                         Amortization of debt issue costs                                             30,480                               9,520                    
 Changes in assets and liabilities:                                                                                                                                                  
 (Increase) decrease in:                                                                                                                                                             
                                         Accounts Receivable                                                          1,129,946                            (1,413,497)              
                                         Prepaid Expenses and other current assets                                    1,954                                7,585                    
                                         Costs in excess of billings on uncompleted contracts                         -                                    7,472                    
                                         Costs and estimated earnings in excess of billings on uncompleted contracts  42,580                               (42,580)                 
                                         Inventory                                                                    (56,325)                             -                        
                                         Deposits                                                                     (6,250)                              393                      
 Increase (decrease) in:                                                                                                                                                             
                                         Accounts Payable                                                             (839,460)                            651,612                  
                                         Accounts Payable - related party                                             (109,145)                            -                        
                                         Accrued Expenses                                                             253,493                              223,416                  
                                         Accrued Rent                                                                 9,417                                9,417                    
                                         Sales Tax Payable                                                            (3,402)                              5,438                    
                                         Deferred Revenue                                                             80,000                               -                        
                                         Billings in excess of costs on uncompleted contracts                         -                                    (21,169)                 
                                         Billings in excess of costs and estimated earnings on uncompleted contracts  (76,083)                             97,120                   
 NET CASH USED IN OPERATING ACTIVITIES                                                                                 (1,162,812)                          (1,970,831)              
 CASH FLOWS FROM INVESTING ACTIVITIES:                                                                                                                                               
                                         Purchase of Equipment                                                        (9,568)                              (12,959)                 
 NET CASH USED IN INVESTING ACTIVITIES                                                                                 (9,568)                              (12,959)                 
 CASH FLOWS FROM FINANCING ACTIVITIES:                                                                                                                                               
                                         Proceeds from Issuance of notes payable                                      -                                    1,000,000                
                                         Repayments on convertible notes payable                                      -                                    (34,246)                 
                                         Proceeds from Sale of Common Stock                                           1,050,000                            1,717,251                
                                         Payments of offering costs related to sale of common stock                   (84,000)                             (254,513)                
                                         Payments of Debt Issue Costs                                                 (5,000)                              (40,000)                 
 NET CASH PROVIDED BY FINANCING ACTIVITIES                                                                             961,000                              2,388,492                
 NET INCREASE  IN CASH                                                                                                 (211,380)                            404,702                  
 CASH AT BEGINNING OF YEAR                                                                                             468,776                              64,074                   
 CASH AT END OF YEAR                                                                                                   $         257,396                    $         468,776        
 Supplemental Disclosure of Cash Flow Information:                                                                                                                                   
                                         Cash paid for interest                                                       $          12,268                    $           15,693       
                                         Cash paid for income tax                                                     $            1,748                   $           13,160       
 Supplemental Disclosure of Non-Cash Investing and Financing Activities:                                                                                                             
                                         Prepaid common stock issued for services                                     $          67,500                    $         270,000        
                                         Conversion of accounts payable to convertible notes payable                  $          20,000                    $           16,140       
                                         Common stock issued for debt settlement                                      $                    -               $         195,000        
                                         Common stock issued in conversion of note payable and accrued interest       $          48,500                    $           33,000       
                                         Common stock issued in conversion of convertible note payable                $     1,047,836                      $           16,140       
                                         Prepaid warrants for common stock issued for services                        $                    -               $         119,361        
                                         Warrants for common stock issued in debt settlement                          $                    -               $         209,006        
                                         Capitalization of accrued interest to notes payable                          $            2,004                   $                     -  
                                         Capitalization of accrued interest to convertible notes payable              $        130,383                     $         140,054        
                                         Embedded conversion option liability recorded as debt discount               $        456,073                     $         647,977        
                                         Convertible note payable issued in exchange of note payable                  $                    -               $           58,318       
 The accompanying notes are an integral part of these Consolidated Financial Statements                                                                                                 

SOURCE  Envision Solar International, Inc.

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