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Q3 2019 revenues increased 90% to $1.8 million, versus the same period in 2018
Q3 2019 Gross Profit of $341,000 increased by 672% over the same period in 2018
SAN DIEGO, Nov. 14, 2019 (GLOBE NEWSWIRE) -- Envision Solar International, Inc., (Nasdaq CM: EVSI, EVSIW) (“Envision Solar,” or the “Company”), the leading producer of unique and sustainable infrastructure products for electric vehicle charging, energy security and outdoor media, today announced financial results for its fiscal third quarter and the nine months ended September 30, 2019.
Third Quarter 2019 Business Highlights and Recent Developments
“We had a strong third quarter across all aspects of our business as we successfully drove sales through both new customer acquisition and follow-on orders with many prestigious clients. We expanded our reach into new market segments and sent a strong value proposition during the California grid outages. Our EV ARC™ chargers remained powered during the power outages caused by risk of wildfires across the state,” said Desmond Wheatley, Envision Solar's CEO. “We continue to see strong demand from a wide array of industry verticals including government, municipal, fleet, education, and real estate, among others and we are thrilled to have achieved the first installation of EV ARC™ 2020 DC Fast-Charging stations at the Camp Roberts Rest Area on U.S. California Highway 101. These are the first solar-powered EV charging stations installed for the public on a U.S. highway in California rest areas controlled by the California Department of Transportation.
“I am also pleased to report we recently engaged a funding consultant in Washington, DC to help identify federal funding opportunities that could benefit our customers and hence our business. The EV ARC’s ability to continue to charge vital EVs and provide emergency power during grid failures, such as those recently experienced in California, qualifies it under a number of grants through the Department of Homeland Security, Department of Transportation, and Department of Energy. As we continue to expand our market reach, and thereby, our customer and market share, we remain at the forefront of the rapidly deployed EV charging infrastructure industry in product capabilities, production capacity and deliverability, through our advanced infrastructure and highly trained team.
“Indeed, these are exciting days for Envision, and we are dedicated to the proliferation of our products to serve the ever-growing need for reliable, sustainable energy that enables our clients, and theirs to drive on sunshine. Our backlog and pipeline scheduled for shipment in 2019 and 2020 continues to be robust. I am as confident as ever in our ability to continue improving our sales and marketing approach and pipeline conversion process. We continue to see an increasing market need for our products and look forward to pursuing deeper execution on our expansive business model,” concluded Mr. Wheatley.
Fiscal Third Quarter 2019 Financial Summary
Revenues. For the three months ended September 30, 2019, our revenues were $1,785,724, compared to $938,218 for the three months ended September 30, 2018, a 90% increase. Revenues in the three months ended September 30, 2019 included the installation of two EV ARC™ HP 2020 DC Fast-Charging stations at the Camp Roberts Rest Area on U.S. California Highway 101. The fast-charging feature will allow for a fast charge for travelers on a remote section of the highway. EV ARC™ units were also delivered to North Carolina, Nevada and California during the quarter. For the nine months ended September 30, 2019, revenues were $4,615,669 compared to $4,658,685 for the same period in 2018, a 1% decrease caused in part by our later than anticipated closing of the public offering, causing delays in the development of new products and delivery of existing products. However, increased investment in trade shows in the third quarter of 2019 has helped to stimulate awareness and interest in our products and interest from existing customers has grown for repeat orders.
Net loss for the quarter ended September 30, 2019 was $610,363, or $0.12 per basic and diluted share, compared to a net loss of $606,556, or $0.21 per basic and diluted share for the quarter ended September 30, 2018. We benefited from higher revenues and higher gross profit percentage due to the new EV ARCTM 2020 DC Fast-Charging stations. However, operating expenses increased primarily due to non-cash compensation expense for the vesting of director restricted shares, severance and recruiting cost related to the Chief Financial Officer position, R&D expenses related to the development of our Solar Tree® and EV ARC™ 2020 product, investor relations and public relations costs and sales commissions. Interest expense decreased in the quarter due to the payoff of debt in the prior quarter. Net loss for the nine months ended September 30, 2019 was $2,543,868, or $0.60 per basic and diluted share, compared to a net loss of $2,392,434, or $0.83 per basic and diluted share for the same period in the prior year. The increase in operating expenses, primarily for the reasons mentioned above, was partially offset by an increase in gross profit and lower interest expense year to date.
Liquidity and Capital Resources
Cash increased from $244,024 at December 31, 2018 to $5,292,229 at September 30, 2019. The cash balance at September 30, 2019 reflects the public offering and over-allotment exercise resulting in gross proceeds of $13.2 million, some of which were used to pay off almost all of the Company’s debt, including the convertible line of credit, convertible notes payable and notes payable, offering costs, and to pay down certain accounts payable and accrued interest. In the quarter ended September 30, 2019, cash decreased by $624,989 primarily due to the net loss, and the reduction of deferred revenue of $765,609 for pre-payments received from a customer in 2018 that shipped in the quarter ended September 30, 2019. We used $3,444,282 of operating cash in the nine months ended September 30, 2019, which includes a number of non-standard uses of cash including $211,618 to pay down accrued interest, $515,329 to pay down accounts payable for terms that were extended prior to the public offering, $765,609 for pre-payments received in 2018 for a shipment in September 2019, and $126,500 of cash for the change of CFOs. Without these non-standard items, year to date cash usage would be $1,825,226 or $202,803 per month.
About Envision Solar International, Inc.
Envision Solar, www.envisionsolar.com, produces and sells its unique and patented, sustainable infrastructure products for electric vehicle charging, energy security and outdoor media including the EV ARC™ and the Solar Tree® with EnvisionTrak™ patented solar tracking, SunCharge™ solar Electric Vehicle Charging, ARC™ technology energy storage, and EnvisionMedia™ solar advertising displays.
Based in San Diego, the company produces Made in America products. Envision Solar is listed on the Nasdaq CM under the symbols EVSI and EVSIW. For more information visit www.envisionsolar.com or call (858) 799-4583. Follow us on social media to keep up with the latest news: Facebook, Twitter, Instagram, and YouTube.
This Envision Solar International, Inc. Press Release may contain forward-looking statements. All statements in this Press Release 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. These statements are made based upon current expectations that are subject to known and unknown risks and uncertainties. Envision Solar does not undertake to update forward-looking statements in this press release to reflect actual results, changes in assumptions or changes in other factors affecting such forward-looking information. Assumptions and other information that could cause results to differ from those set forth in the forward-looking information can be found in Envision Solar’s filings with the Securities and Exchange Commission, including its most recent periodic reports.
Director of Public Relations
|Envision Solar International, Inc.|
|Condensed Balance Sheets|
|September 30,||December 31,|
|Accounts receivable, net||1,070||1,291|
|Prepaid and other current assets||205||256|
|Total Current Assets||8,263||2,922|
|Property, Plant and Equipment, net||530||133|
|Deferred equity offering costs||-||195|
|Total Other Assets||228||432|
|LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)|
|Sales tax payable||133||-|
|Convertible note payable - related party, net||213||-|
|Convertible line of credit||-||960|
|Convertible notes payable, net||-||1,104|
|Note payable, net||-||788|
|Auto loan - current portion||11||11|
|Total Current Liabilities||1,981||5,681|
|Convertible note payable - related party, net||-||178|
|Convertible notes payable - long term||-||100|
|Long term portion of auto loan||1||9|
|Total Long Term Liabilities||1||287|
|Total Stockholders' Equity (Deficit)||7,039||(2,481||)|
|Total Liabilities and Stockholders' Equity (Deficit)||$||9,021||$||3,487|
|Envision Solar International, Inc.|
|Condensed Statements of Operations|
|(000's omitted except share and per share amounts)|
For the Three Months Ended
For the Nine Months Ended
|Cost of revenues||1,445||894||4,267||4,561|
|Loss From operations||(623||)||(475||)||(1,878||)||(1,604||)|
|Other income (expense)|
|Gain on sale of fixed asset||-||16||-||16|
|Total other income (expense)||15||(132||)||(663||)||(788||)|
|Loss before tax expense||(608||)||(607||)||(2,541||)||(2,392||)|
|Net loss per share - basic and diluted||$||(0.12||)||$||(0.21||)||$||(0.60||)||$||(0.83||)|
|Weighted average shares outstanding - basic and diluted||5,114,296||2,897,880||4,220,398||2,887,371|