UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-QSB
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 2002
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
Commission File No. 000-31671
GLOBALWISE INVESTMENTS, INC.
(Exact name of Small Business Issuer as specified in its charter)
NEVADA 87-0613716
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(State of incorporation) (I.R.S. Employer Identification Number)
2157 S. Lincoln Street, Salt Lake City, Utah 84106
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(Address of principal executive offices) (Zip Code)
Issuer's telephone number, including area code (801) 323-2395
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525 South 300 East, Suite 201, Salt Lake City, Utah 84111
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(Former address)
Indicate by check mark whether the Issuer (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934
during the preceding 12 months (or for such shorter period that the Issuer was
required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days. [X] Yes [ ] No
As of August 5, 2002, the registrant had 802,000 common shares outstanding.
PART I - FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
The financial information set forth below with respect to our statements
of operations for the three and six month periods ended June 30, 2002 and 2001
is unaudited. This financial information, in the opinion of management,
includes all adjustments consisting of normal recurring entries necessary for
the fair presentation of such data. The results of operations for the six
month period ended June 30, 2002, are not necessarily indicative of results to
be expected for any subsequent period.
Globalwise Investments, Inc.
Financial Statements
June 30, 2002
Globalwise Investments, Inc.
(A Development Stage Company)
Balance Sheets
ASSETS
June 30 December 31
2002 2001
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(Unaudited)
CURRENT ASSETS $ - $ -
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TOTAL ASSETS $ - $ -
============= =============
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts Payable - Related parties $ 21,345 $ 21,345
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Total Liabilities 21,345 21,345
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STOCKHOLDERS' EQUITY
Common Stock, $.001 par value; 50,000,000 shares
authorized; 802,000 shares issued and
outstanding 802 802
Additional paid in Capital 27,542 27,542
Deficit Accumulated During the Development Stage (49,689) (49,689)
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Total Stockholders' Equity (deficit) (21,345) (21,345)
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TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ - $ -
============= =============
Globalwise Investments, Inc.
(Development Stage Company)
Statement of Operations
(Unaudited)
From
inception on
For the For the For the For the October 3,
three months three months six months six months 1997
ended June 30, ended June 30, ended June 30, ended June 30, to June 30,
2002 2001 2002 2001 2002
-------------- -------------- -------------- -------------- -------------
REVENUES $ - $ - $ - $ - $ -
-------------- -------------- -------------- -------------- -------------
EXPENSES
General & Administrative - - - - 49,689
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TOTAL EXPENSES - - - - 49,689
-------------- -------------- -------------- -------------- -------------
NET INCOME (LOSS) $ - $ - $ - $ - $ (49,689)
============== ============== ============== ============== =============
NET LOSS PER SHARE $ - $ - $ - $ - $ (0.06)
============== ============== ============== ============== =============
WEIGHTED AVERAGE SHARES
OUTSTANDING 850,000 850,000 850,000 850,000 663,220
============== ============== ============== ============== =============
Globalwise Investments, Inc.
(A Development Stage Company)
Statement of Cash Flows
(Unaudited)
From
Inception on
For the six months ended October 3, 1997
June 30, Through
2002 2001 June 30, 2002
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Cash Flows from Operating Activities
Net Loss $ - $ - $ (49,689)
Less Non-cash Items:
Capital contributions - expenses - - 6,550
Increase in inventory - - (21,744)
Stock issued for services - - -
Increase in Accounts Payable - - 21,944
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Net Cash Provided (Used) by Operating Activities - - (42,939)
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Cash Flows from Investing Activities
Purchase of equipment - - (20,530)
Loss of cash in spin-off - - (1,531)
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Net Cash Provided (Used) by Investing Activities - - (22,061)
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Cash Flows from Financing Activities
Proceeds from stock issuance - - 65,000
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Net Cash Provided (Used) by Financing Activities - - 65,000
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Increase (Decrease) in Cash - - -
Cash and Cash Equivalents at Beginning of Period - - -
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Cash and Cash Equivalents at End of Period $ - $ - $ -
============= ============= ==============
Supplemental Cash Flow Information:
Stock issued for services $ - $ - $ -
Cash Paid For:
Interest $ - $ - $ -
Income Taxes $ - $ - $ -
Globalwise Investments, Inc.
(A Development Stage Company)
Notes to the Financial Statements
June 30, 2002
GENERAL
Globalwise Investments, Inc. (the Company) has elected to omit substantially
all footnotes to the financial statements for the six months ended June 30,
2002, since there have been no material changes (other than indicated in
other footnotes) to the information previously reported by the Company in
their Annual Report filed on the Form 10-KSB for the twelve months ended
December 31, 2001.
UNAUDITED INFORMATION
The information furnished herein was taken from the books and records of the
Company without audit. However, such information reflects all adjustments
which are, in the opinion of management, necessary to properly reflect the
results of the interim period presented. The information presented is not
necessarily indicative of the results from operations expected for the full
fiscal year.
In this report references to "Globalwise," "we," "us," and "our" refer
to Globalwise Investments, Inc.
Forward Looking Statements
This quarterly report contains certain forward-looking statements and for
this purpose any statements contained in this Form 10-QSB that are not
statements of historical fact may be deemed to be forward-looking statements.
Without limiting the foregoing, words such as "may," "will," "expect,"
"believe," "anticipate," "estimate" or "continue" or comparable terminology
are intended to identify forward-looking statements. These statements by
their nature involve substantial risks and uncertainties, and actual results
may differ materially depending on a variety of factors, many of which are not
within Globalwise's control. These factors include but are not limited to
economic conditions generally and in the market which Globalwise may
participate; competition within Globalwise's chosen market and failure by
Globalwise to successfully develop business relationships.
ITEM 2. PLAN OF OPERATIONS
We are a development stage company with no assets and we have experienced
losses since our inception. We are dependent on financing to continue our
operations. For the six month period ended June 30, 2002, we had no cash on
hand and total current liabilities of $21,345. The $21,345 account payable is
related to accounting and legal fees of approximately $16,345 which were paid
on our behalf by related parties and approximately $5,000 in services rendered
by our management.
We have no commitments for capital expenditures for the next twelve
months. During the next twelve months we believe that our current cash needs
can be met by loans from our directors, officers and shareholders based on
understandings we have with these persons. These understandings are not
written agreements and therefore these persons are not obligated to provide
funds. We may repay these loans, costs of services and advancements with
cash, if available, or we may convert them into common stock. Management
intends that any agreement for a merger or acquisition shall provide that
these debts be paid as part of that transaction.
Our management intends to actively pursue business opportunities during
the next twelve months. Based on current economic and regulatory conditions,
management believes that it is possible, if not probable, for a company like
ours, without many assets or liabilities, to negotiate a merger or acquisition
with a viable private company. The opportunity arises principally because of
the high legal and accounting fees and the length of time associated with the
registration process of "going public." However, should any of these
conditions change, it is very possible that there would be little or no
economic value for anyone taking over control of Globalwise. As of the date
of this filing, we have not identified any assets or business opportunities
for acquisition, nor have we made a formal study of the economic potential of
any business.
Potential investors must recognize that because of our limited capital
available for investigation and management's limited experience in business
analysis we may not discover or adequately evaluate adverse facts about the
business opportunity to be acquired. Also, all risks inherent in new and
inexperienced enterprises are inherent in our business.
It is emphasized that our management may effect transactions having a
potentially adverse impact upon our shareholders pursuant to the authority and
discretion of our management to complete an acquisition without submitting the
acquisition proposal to the stockholders for their consideration.
Should a merger or acquisition prove unsuccessful, it is possible that we may
decide not to pursue further acquisition activities and management may abandon
its activities and our shares would become worthless.
PART II - OTHER INFORMATION
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) Part II Exhibits
Exhibit
Number Description
- ------ ------------
3.1 Articles of Incorporation, as amended (Incorporated by reference to
exhibit 3.1 of Form 10-QSB, filed October 11, 2001)
3.2 Bylaws of Globalwise (Incorporated by reference to exhibit 3.3 of
Form 10-SB, filed October 2, 2000.)
(b) Reports on Form 8-K
None.
SIGNATURES
In accordance with the requirements of the Exchange Act, the registrant
caused this report to be signed on its behalf by the undersigned thereunto
duly authorized.
8/8/02
Date_________________________ Globalwise Investments, Inc.
/s/ Donald R. Mayer
By: ______________________________________
Donald R. Mayer
President, Principal Financial and
Accounting Officer, and Director
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