GlobalWise Investments, Inc.

www.GlobalWiseInvestments.com

Matthew Chretien, President & CEO

614-388-8909

Contact@GlobalWiseInvestments.com

 

 

 

Exhibit 99.1

GlobalWise Investments Announces Results for Fiscal Year 2013

 

COLUMBUS, OH – (Marketwire – March 31, 2014) – 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 fiscal year ended December 31, 2013.

 

The Company's total revenues for the twelve months ended December 31, 2013 were $1,554,185 as compared to $2,734,950 for the same period in 2012, a decrease of $1,180,765, or 43%, primarily attributable to decreases in revenues from consulting services and software licenses with and without professional services.

 

Overall gross margins were 62% and 64% for the twelve months ended December 31, 2013 and 2012, respectively, a decrease of 2%.

 

Total operating expenses were $2,940,030 for the twelve months ended December 31, 2013 as compared to $3,424,507 for the twelve months ended December 31, 2012, representing a decrease of 14% or $484,477. The decrease in operating expenses is primarily due to a reduction in sales and marketing expense.

 

GlobalWise reported a net operating loss of $2,139,704 and $1,985,493 for the twelve months ended December 31, 2013 and 2012, respectively, representing an increase in net loss of $154,211 or 8%.

 

Matthew Chretien, President and CEO of GlobalWise stated, “In 2013, Intellinetics made significant efforts into refining and re-designing every detail of our channel partner strategy from a technology, process, tools, business model and market positioning perspective. This process consumed significant time and resources across the board but was crucial to improving revenue-generating effectiveness. MarketCommandTM was designed using feedback and analysis from our customers and channel partners. MarketCommandTM is a go-to-market approach that will become the de-facto standard for solution delivery into the SMB market, whose buyers place a premium on simplicity, minimizing disruption, and affordability when considering new business solutions. MarketCommandTM for our software platform, IntelliCloudTM, was launched in Q1 of 2014. It allows our partners to bundle IntelliCloudTM as an embedded part of the hardware or services they already provide. We are initially focused on recruiting dealers in the print/imaging channel and will expand to the adjacent and much larger IT value-added reseller channel as a next step.

 

The first two MarketCommandTM partners from the imaging channel were active by the end of Q1 of 2014. Combined, these carefully selected market leaders have 170 sales people serving over 40,000 active customers – large enough for a rigorous stress test of the program to ensure every aspect of the model works well. While feedback has been positive and new orders have been received under MarketCommandTM, moving from premise-based one-time sales to the new low-cost, cloud-based entry point for recurring sales is a difficult transition from a revenue perspective. We certainly experienced that revenue contraction in 2013. However, as the number of active subscribers continues to grow, recurring revenue increases. As we certify other software providers to participate in MarketCommandTM, we can benefit from additional revenue share from solutions such as device monitoring, power management and remote network management which can leverage the same infrastructure as IntelliCloudTM for activation.

 

Moving forward, our focus is on recruiting strong, highly qualified resellers under MarketCommandTM, which will increase the number of people, solutions, and services that use IntelliCloudTM. The stronger our reseller base, the more IntelliCloudTM customers activate with increasing recurring revenue generation as storage consumption grows. We already have several new companies lined up to partner with us under MarketCommandTM in Q2 of 2014 and the focus on expanding distribution is our number one priority. The link below shows a video example of the MarketCommandTM with IntelliCloudTM in action. Its power is in the simplicity of messaging and delivery.”

 

 
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http://services.in2communications.com/download/dms/

 

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

Consolidated Balance Sheets 

 

ASSETS

 

   December 31,   December 31, 
   2013   2012 
         
Current assets:          
Cash  $260,560   $46,236 
Accounts receivable, net   144,071    332,413 
Prepaid expenses and other current assets   39,242    40,026 
           
Total current assets   443,873    418,675 
           
Property and equipment, net   53,226    58,129 
Other assets   28,925    37,239 
           
Total assets  $526,024   $514,043 
           
LIABILITIES AND STOCKHOLDERS' DEFICIT          
           
Current liabilities:          
Accounts payable and accrued expenses  $502,646   $1,143,265 
Deferred revenues   482,428    571,268 
Derivative Liability   -    15,470 
Notes payable - current   711,266    563,009 
Convertible note payable, net of discount   -    107,518 
Notes payable - related party - current   -    95,000 
Total current liabilities   1,696,340    2,495,530 
           
Long-term liabilities:          
Deferred compensation   215,012    309,740 
Notes payable - net of current portion   1,114,394    1,509,265 
Notes payable - related party   222,915    369,415 
Deferred interest expense   83,942    41,440 
Other long-term liabilities - related parties   34,614    72,033 
           
Total long-term liabilities   1,670,877    2,301,893 
           
Total liabilities   3,367,217    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 December 31, 2013 and December 31, 2012, respectively   54,363    36,492 
Additional paid-in capital   4,912,814    1,348,794 
Accumulated deficit   (7,808,370)   (5,668,666)
Total stockholders' deficit   (2,841,193)   (4,283,380)
Total liabilities and stockholders' deficit  $526,024   $514,043 

 

 
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GLOBALWISE INVESTMENTS, INC. and SUBSIDIARY
Consolidated Statements of Operations
 
         
   For the Year Ended December 31, 
   2013   2012 
         
Revenues:          
Sale of software licenses without professional services  $67,507   $188,894 
Sale of software licenses with professional services   196,485    929,741 
Software as a service   138,607    108,102 
Software maintenance services   856,755    790,007 
Consulting services   294,831    718,206 
           
Total revenues   1,554,185    2,734,950 
           
Cost of revenues:          
Sale of software licenses without professional services   25,170    45,477 
Sale of software licenses with professional services   283,374    469,252 
Software as a service   27,592    28,232 
Software maintenance services   124,430    119,727 
Consulting services   124,663    318,831 
           
Total cost of revenues   585,229    981,519 
           
Gross profit   968,956    1,753,431 
           
Operating expenses:          
General and administrative   2,087,169    2,196,068 
Sales and marketing   826,396    1,200,019 
Depreciation   26,465    28,420 
           
Total operating expenses   2,940,030    3,424,507 
           
Loss from operations   (1,971,074)   (1,671,076)
           
Other income (expense)          
Derivative gain (loss)   15,470    (15,470)
Interest expense, net   (184,100)   (298,947)
           
Total other income (expense)   (168,630)   (314,417)
           
Net loss  $(2,139,704)  $(1,985,493)
           
Basic and diluted net loss per share:  $(0.05)  $(0.06)
           
Weighted average number of common shares          
outstanding - basic and diluted   45,289,553    32,866,979