April 1, 2013 - Envision Solar International, Inc. today announced results for the three and twelve months ended December 31, 2012.
• 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 station
• 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 costs.
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.
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 (EVs).
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.
The Company made significant investments in 2012, including:
1.A redesign of its flagship Solar Tree® structure to allow for a significant reduction in the field labor required for its installation.
2.Redesign and product development aimed at making the Company's products highly scalable and exportable both domestically and internationally.
3.The invention and engineering of the EV ARC™.
4.Ongoing 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."
Envision Solar continues to aggressively invest in new products and pursue new business opportunities. The Company anticipates several upcoming milestones:
1.Q1 2013. Installation of the first Cadillac Solar Tree® structure in a dealership.
2.Q2 2013. Initial roll-out of its EV ARC™ standalone solar charging station to the market.
3.April 2013. Participate as Cadillac's sole solar provider partner at GM's 2013 dealers' convention.
4.Q2 2013. Design and engineering of the 2300 Solar Tree® installation in North Carolina.
5.Q2 2013. Close $2.19 million equity financing platform.
6.FY 2013. First international sales.
"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."