GlobalWise Investments, Inc.
www.GlobalWiseInvestments.com
Matthew Chretien, Interim President & CEO
614-388-8909
Contact@GlobalWiseInvestments.com
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GlobalWise Investments, Inc. www.GlobalWiseInvestments.com Matthew Chretien, Interim President & CEO 614-388-8909 Contact@GlobalWiseInvestments.com
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Exhibit 99.1
GlobalWise Investments Reports Financial Results for Third Quarter 2013
COLUMBUS, OH – (Marketwire – November 14, 2013) – GlobalWise Investments, Inc. (OTCQB: GWIV) (OTCBB: GWIV) (the “Company”) (www.GlobalWiseInvestments.com) and its wholly owned subsidiary Intellinetics, Inc., a leading-edge technology company focused on the design, implementation and management of cloud-based Enterprise Content Management (“ECM”) systems in both the public and private sectors, announce financial results for the third quarter ended September 30, 2013.
The Company's total revenues for the quarter ended September 30, 2013 were $381,078 as compared to $711,737 for the three months ended September 30, 2012, a decrease of $330,659, or 46%, primarily attributable to decreases in revenues from software licenses with and without professional services and consulting services. Gross profits were $266,162 for the quarter ended September 30, 2013 as compared to $484,205 for the quarter ended September 30, 2012, representing a decrease of 45%, primarily as a result of the decrease in revenues.
GlobalWise's costs of revenues were $114,916 and $227,532 for the quarters ended September 30, 2013 and September 30, 2012, respectively, representing a decrease of $112,616 or 49%. The decrease in cost of revenues is primarily the result of a decrease in third-party costs in connection with a client document conversion project in 2012. As a result, gross margins were 70% and 68% for the quarters ended September 30, 2013 and September 30, 2012, respectively, an increase of 2%.
Total operating expenses for the quarter ended September 30, 2013 were $767,533 as compared to $889,776 during the quarter ended September 30, 2012, representing a decrease of $122,243 or 14%.
As a result, GlobalWise reported a net loss of $541,412 for the quarter ended September 30, 2013 compared to a net loss of $492,607 for the quarter ended September 30, 2012, representing an increase of $48,805.
Matthew Chretien, Interim President and CEO of GlobalWise stated, “While our revenue growth has slowed down, public awareness of cloud-based computing, storage and retrieval is helping our marketing efforts to the smaller SMB clients. Our software as a service (SAAS) offering Intelli-CloudTM is sold through our expanding base of channel partners that creates a low-cost sales delivery mechanism coupled with a high-margin software product. The recent conferences we attended, is helping us broaden our message to a larger group, as well as increase our number of channel partners. Our channel partnerships with companies like MWAi are gaining traction and I was honored to participate in the 2013 Innovation Fair in Japan with the rest of the Technology United members. I am enthusiastic regarding the expected increased performance and commitment from our channel partners, but still expect fluctuations in revenue as we evolve from historically premised-based software solutions sold over a long sales cycle to cloud-based solutions.”
About GlobalWise Investments, Inc.
GlobalWise Investments, Inc., via its wholly owned subsidiary Intellinetics, Inc., is a Columbus, Ohio based Enterprise Content Management (ECM) pioneer with industry-leading software that delivers cloud ECM based solutions on-demand. The Company’s flagship platform, Intellivue™, represents a new industry benchmark and game-changing solution by enabling clients to access and manage the content of every scanned document, file, spreadsheet, email, photo, audio file or video tape — virtually anything that can be digitized — in their enterprise from any PC, laptop, tablet or smartphone from anywhere in the world.
For additional information, please visit the Company’s corporate website: www.GlobalWiseInvestments.com
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GLOBALWISE INVESTMENTS, INC. and SUBSIDIARY
Condensed Consolidated Balance Sheets
| ASSETS | ||||||||
| Unaudited | ||||||||
| September 30, | December 31, | |||||||
| 2013 | 2012 | |||||||
| Current assets: | ||||||||
| Cash | $ | 170,975 | $ | 46,236 | ||||
| Accounts receivable, net | 532,965 | 332,413 | ||||||
| Prepaid expenses and other current assets | 56,761 | 40,026 | ||||||
| Total current assets | 760,701 | 418,675 | ||||||
| Property and equipment, net | 61,280 | 58,129 | ||||||
| Other assets | 31,003 | 37,239 | ||||||
| Total assets | $ | 852,984 | $ | 514,043 | ||||
| LIABILITIES AND STOCKHOLDERS' DEFICIT | ||||||||
| Current liabilities: | ||||||||
| Accounts payable and accrued expenses | $ | 462,548 | $ | 1,143,265 | ||||
| Deferred revenues | 648,406 | 571,268 | ||||||
| Derivative Liability | - | 15,470 | ||||||
| Notes payable - current | 305,809 | 563,009 | ||||||
| Convertible note payable, net of discount | - | 107,518 | ||||||
| Notes payable - related party - current | 230,415 | 95,000 | ||||||
| Total current liabilities | 1,647,178 | 2,495,530 | ||||||
| Long-term liabilities: | ||||||||
| Deferred compensation | 215,012 | 309,740 | ||||||
| Notes payable - net of current portion | 1,210,992 | 1,509,265 | ||||||
| Notes payable - related party | - | 369,415 | ||||||
| Deferred interest expense | 73,316 | 41,440 | ||||||
| Other long-term liabilities - related parties | 30,091 | 72,033 | ||||||
| Total long-term liabilities | 1,529,411 | 2,301,893 | ||||||
| Total liabilities | 3,176,589 | 4,797,423 | ||||||
| Stockholders' deficit: | ||||||||
| Common stock, $0.001 par value, 50,000,000 shares authorized; 47,362,047 and 36,490,345 | ||||||||
| shares issued and outstanding at September 30, 2013 and December 31, 2012, respectively | 54,363 | 36,492 | ||||||
| Additional paid-in capital | 4,912,814 | 1,348,794 | ||||||
| Accumulated deficit | (7,290,782 | ) | (5,668,666 | ) | ||||
| Total stockholders' deficit | (2,323,605 | ) | (4,283,380 | ) | ||||
| Total liabilities and stockholders' deficit | $ | 852,984 | $ | 514,043 | ||||
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GLOBALWISE INVESTMENTS, INC. and SUBSIDIARY
Condensed Consolidated Statements of Operations
(Unaudited)
| For the Three Months Ended September 30, | For the Nine Months Ended September 30, | |||||||||||||||
| 2013 | 2012 | 2013 | 2012 | |||||||||||||
| Revenues: | ||||||||||||||||
| Sale of software licenses without professional services | $ | 11,263 | $ | 84,134 | $ | 150,542 | $ | 140,812 | ||||||||
| Sale of software licenses with professional services | 72,852 | 307,167 | 192,585 | 720,562 | ||||||||||||
| Software as a service | 34,919 | 25,425 | 104,030 | 79,062 | ||||||||||||
| Software maintenance services | 211,759 | 201,539 | 648,765 | 574,848 | ||||||||||||
| Consulting services | 50,285 | 93,472 | 221,192 | 444,066 | ||||||||||||
| Total revenues | 381,078 | 711,737 | 1,317,114 | 1,959,350 | ||||||||||||
| Cost of revenues: | ||||||||||||||||
| Sale of software licenses without professional services | 6,609 | 8,271 | 19,712 | 40,103 | ||||||||||||
| Sale of software licenses with professional services | 48,810 | 109,229 | 280,761 | 372,084 | ||||||||||||
| Software as a service | 6,881 | 7,478 | 20,684 | 21,372 | ||||||||||||
| Software maintenance services | 32,172 | 34,719 | 92,496 | 96,003 | ||||||||||||
| Consulting services | 20,444 | 67,836 | 63,112 | 292,080 | ||||||||||||
| Total cost of revenues | 114,916 | 227,532 | 476,765 | 821,641 | ||||||||||||
| Gross profit | 266,162 | 484,205 | 840,349 | 1,137,709 | ||||||||||||
| Operating expenses: | ||||||||||||||||
| General and administrative | 566,448 | 589,403 | 1,642,065 | 1,758,602 | ||||||||||||
| Sales and marketing | 193,579 | 293,636 | 673,601 | 938,969 | ||||||||||||
| Depreciation | 7,506 | 6,737 | 19,622 | 21,174 | ||||||||||||
| Total operating expenses | 767,533 | 889,776 | 2,335,288 | 2,718,745 | ||||||||||||
| Loss from operations | (501,371 | ) | (405,571 | ) | (1,494,939 | ) | (1,581,036 | ) | ||||||||
| Other income (expense) | ||||||||||||||||
| Derivative gain | - | - | 15,470 | - | ||||||||||||
| Interest expense, net | (40,041 | ) | (87,036 | ) | (142,647 | ) | (214,695 | ) | ||||||||
| Total other income (expense) | (40,041 | ) | (87,036 | ) | (127,177 | ) | (214,695 | ) | ||||||||
| Net loss | $ | (541,412 | ) | $ | (492,607 | ) | $ | (1,622,116 | ) | $ | (1,795,731 | ) | ||||
| Basic and diluted net loss per share: | $ | (0.01 | ) | $ | (0.01 | ) | $ | (0.03 | ) | $ | (0.05 | ) | ||||
| Weighted average number of common shares | ||||||||||||||||
| outstanding - basic and diluted | 47,362,047 | 33,022,913 | 47,362,047 | 32,082,486 | ||||||||||||