GlobalWise Investments, Inc.

www.GlobalWiseInvestments.com

Matthew Chretien, Interim President & CEO

614-388-8909

Contact@GlobalWiseInvestments.com

 

 

 

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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-2-

 

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 

 

 
-3-

 

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