2. GOING CONCERN

12 Months Ended

Dec. 31, 2011

2.	GOING CONCERN

As reflected in the accompanying consolidated financial statements for the years ended December 31, 2011 and 2010, the Company had net losses of $2,547,493 (which includes $1,675,141 of stock based compensation expense) and $2,360,851 (which includes $229,564 of stock based compensation expense), respectively and cash used in operations of $1,970,831 and $1,112,794, respectively. Additionally, at December 31, 2011, the Company had a working capital deficit of $2,657,976, stockholders’ deficit of $2,482,203, and accumulated deficit of $22,340,460. These factors raise substantial doubt about the Company’s ability to continue as a going concern.

Envision plans to pursue a capital raise to raise at least an additional $2,200,000 during the next twelve months. Further, the Company has ongoing projects that are expected to generate operating profits and we are seeking additional projects that will provide additional revenues and operating profits. All such actions and funds, if successful, are expected to be sufficient to cover monthly operating expenses as well as meet minimum payments with respect to the Company’s liabilities over the next twelve months in addition to providing additional working capital. From January 1, 2011 through December 31, 2011, the Company raised a net $1,462,738 from an earlier offering that ended in the period ended June 30, 2011 as well as net funding of $960,000 related to a $1,000,000 convertible note funded in September, 2011, offset by other debt repayments.

The consolidated financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts or the amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern.