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 September 30, 2003 [ ] 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 _______________________ ______________________________________ (State of incorporation) (I.R.S. Employer Identification Number) 2157 S. Lincoln Street, Salt Lake City, Utah 84106 ________________________________________________________________ (Address of principal executive offices) (Zip Code) Issuer's telephone number (801) 323-2395 __________________ 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 October 27, 2003 the registrant had 802,000 common shares outstanding. Transitional small business disclosure format: Yes [ ] No [X] TABLE OF CONTENTS PART I: FINANCIAL INFORMATION Item 1: Financial Statements............................................3 Item 2: Plan of Operations..............................................8 Item 3: Controls and Procedures ........................................9 PART II: OTHER INFORMATION Item 6: Exhibits and Reports on Form 8-K ...............................9 Signatures...............................................................9 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 nine month periods ended September 30, 2003 and 2002 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 nine month period ended September 30, 2003, are not necessarily indicative of results to be expected for any subsequent period. 2 Globalwise Investments, Inc. Financial Statements September 30, 2003 3 Globalwise Investments, Inc. (A Development Stage Company) Balance Sheets ASSETS Sept. 30 December 31 2003 2002 -------------- ------------- (Unaudited) CURRENT ASSETS $ - $ - -------------- ------------- TOTAL ASSETS $ - $ - ============== ============= LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES Accounts Payable - Related parties $ 26,345 $ 26,345 -------------- ------------- Total Liabilities 26,345 26,345 -------------- ------------- 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 (54,689) (54,689) -------------- ------------- Total Stockholders' Equity (deficit) (26,345) (26,345) -------------- ------------- TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ - $ - ============== ============= 4 Globalwise Investments, Inc. (A Development Stage Company) Statement of Operations (Unaudited)
From inception on For the three For the three For the nine For the nine October 3, months ended months ended months ended months ended 1997 to Sept. 30, Sept. 30, Sept. 30, Sept. 30, Sept. 30, 2003 2002 2003 2002 2003 -------------- -------------- -------------- -------------- --------------- REVENUES $ - $ - $ - $ - $ - -------------- -------------- -------------- -------------- --------------- EXPENSES General & Administrative - - - - 54,689 -------------- -------------- -------------- -------------- --------------- TOTAL EXPENSES - - - - 54,689 -------------- -------------- -------------- -------------- --------------- NET INCOME (LOSS) $ - $ - $ - $ - $ (54,689) ============== ============== ============== ============== =============== NET LOSS PER SHARE $ - $ - $ - $ - $ (0.08) ============== ============== ============== ============== =============== WEIGHTED AVERAGE SHARES OUTSTANDING 802,000 802,000 802,000 802,000 692,048 ============== ============== ============== ============== =============== 5
Globalwise Investments, Inc. (A Development Stage Company) Statement of Cash Flows (Unaudited) From Inception on For the nine months ended October 3, Sept. 30, 1997 through --------------------------- Sept 30, 2003 2002 2003 ------------- ------------- ------------- Cash Flows from Operating Activities Net Loss $ - $ - $ (54,689) Less Non-cash Items: Capital contributions - expenses - - 6,550 Increase in inventory - - (21,744) Stock issued for services - - - Increase in Accounts Payable - - 26,944 ------------- ------------- ------------- Net Cash Provided (Used) by Operating Activities - - (42,939) ------------- ------------- ------------- Cash Flows from Investing Activities Purchase of equipment - - (20,530) Loss of cash in spin-off - - (1,531) ------------- ------------- ------------- Net Cash Provided (Used) by Investing Activities - - (22,061) ------------- ------------- ------------- Cash Flows from Financing Activities Proceeds from stock issuance - - 65,000 ------------- ------------- ------------- Net Cash Provided (Used) by Financing Activities - - 65,000 ------------- ------------- ------------- Increase (Decrease) in Cash - - - Cash and Cash Equivalents at Beginning of Period - - - ------------- ------------- ------------- Cash and Cash Equivalents at End of Period $ - $ - $ - ============= ============= ============= Supplemental Cash Flow Information: Stock issued for services $ - $ - $ - Cash Paid For: Interest $ - $ - $ - Income Taxes $ - $ - $ - 6
Globalwise Investments, Inc. (A Development Stage Company) Notes to the Financial Statements September 30, 2003 GENERAL Globalwise Investments, Inc. (the Company) has elected to omit substantially all footnotes to the financial statements for the nine months ended September 30, 2003, 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, 2002. 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. 7 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 report 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, failure by management to successfully develop business relationships, competition within the merger and acquisitions market, and our lack of operations ITEM 2. PLAN OF OPERATIONS We are a development stage company with no assets and we have experienced losses since our inception. As a result, we are dependent on financing to continue our operations. For the nine month period ended September 30, 2003, we had no cash on hand and total current liabilities of $26,345. These liabilities are related to our reporting obligations under the Exchange Act. We accrued $26,345 of expenses related to the professional services required to prepare our reports and the costs of filing the reports with the SEC. We may repay these accounts payable with cash, if available, or we may convert them into common stock. Also, if we acquire a business opportunity we may incur additional reporting expenses related to proxy or information statements we must provide to our stockholders which disclose the company to be acquired's business operations, management and financial condition. We have no commitments for capital expenditures for the next twelve months. We believe that our current cash needs for at least the next twelve months can be met by loans from our directors, officers and shareholders, based on understandings we have with these persons. However, these understandings are not formal agreements and therefore these persons are not obligated to provide funds. We may repay any loans, costs of services and advancements with cash, if available, or we may convert them into common stock. 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 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 limited capital available for investigation and management's limited experience in business analysis we may not discover or adequately evaluate adverse facts about a 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. 8 ITEM 3: CONTROLS AND PROCEDURES Our President, who acts in the capacity of principal executive officer and principal financial officer, has reevaluated the effectiveness of our disclosure controls and procedures as of the end of the period covered by this report and determined that there continued to be no significant deficiencies in these procedures. Also, there were no changes made or corrective actions to be taken related to our internal control over financial reporting. PART II - OTHER INFORMATION ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K Part II Exhibits 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.) 31.1 Principal Executive Officer Certification 31.2 Principal Financial Officer Certification 32.1 Section 1350 Certification 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. Date: October 29, 2003 Globalwise Investments, Inc. /s/ Donald R. Mayer By: ______________________________________ Donald R. Mayer President, Principal Executive and Financial Officer and Director 9