GlobalWise Investments, Inc.

www.GlobalWiseInvestments.com

Matthew Chretien, President & CEO

614-388-8909

Contact@GlobalWiseInvestments.com

 

 

 

Exhibit 99.1

GlobalWise Investments Announces Results for First Quarter 2014

 

COLUMBUS, OH – (Marketwire – May 15, 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 quarter ended March 31, 2014.

 

The Company's total revenues for the three months ended March 31, 2014 were $299,183 as compared to $354,871 for the same period in 2013, a decrease of $55,688, or 16%, primarily attributable to decreases in revenues from professional services and software maintenance services.

 

Overall gross margins were 79% and 44% for the three months ended March 31, 2014 and 2013, respectively, an increase of 30%.

 

Total operating expenses were $591,573 for the three months ended March 31, 2014 as compared to $801,275 for the three months ended March 31, 2013, representing a decrease of 26% or $209,702. The decrease in operating expenses is primarily due to a reduction in sales and marketing expense.

 

GlobalWise reported a net operating loss of $403,822 and $671,797 for the three months ended March 31, 2014 and 2013, respectively, representing a decrease in net loss of $267,975 or 40%.

 

Matthew Chretien, President and CEO of GlobalWise stated, “In Q1 of 2014, Intellinetics continued to implement MarketCommandTM which, going forward we will refer to as IntelliCloudTM, our reseller program for print/imaging and IT solutions providers. In Q1 of 2014, we on-boarded five (5) partners who are actively selling IntelliCloudTM based orders. We also entered into an alliance with Muratec, a hardware OEM, to present the IntelliCloudTM program to its 600 dealer network.”

 

“Our first quarter results continue to reflect our shift in focus from premise-based, one-time sales to the new low-cost, cloud-based IntelliCloudTM, which has been challenging from a revenue perspective. However, as the number of active IntelliCloudTM increases, it will generate growing recurring revenue. The video link below captures the simplicity of IntelliCloudTM in action. Its power is in the simplicity of messaging and its delivery as a feature of the multi-function devices most businesses already own.”

 

http://www.intellinetics.com/video

 

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

 

   (Unaudited)     
   March 31,   December 31, 
   2014   2013 
         
ASSETS          
           
Current assets:          
Cash  $19,332   $260,560 
Accounts receivable, net   183,586    144,071 
Prepaid expenses and other current assets   53,443    39,242 
Total current assets   256,361    443,873 
           
Property and equipment, net   48,380    53,226 
Other assets   26,846    28,925 
           
Total assets  $331,587   $526,024 
           
LIABILITIES AND STOCKHOLDERS' DEFICIT          
           
Current liabilities:          
Accounts payable and accrued expenses  $579,809   $502,646 
Deferred compensation   215,012    - 
Deferred revenues   477,548    482,428 
Notes payable - current   949,765    711,266 
Accrued interest - related party   38,971      
Notes payable - related party - current   217,915    - 
Total current liabilities   2,479,020    1,696,340 
           
Long-term liabilities:          
Deferred compensation   -    215,012 
Notes payable - net of current portion   1,016,254    1,114,394 
Notes payable - related party - net of current portion   -    222,915 
Deferred interest expense   81,328    83,942 
Other long-term liabilities - related parties   -    34,614 
Total long-term liabilities   1,097,582    1,670,877 
           
Total liabilities   3,576,602    3,367,217 
           
Stockholders' deficit:          
Common stock, $0.001 par value, 50,000,000 shares authorized; 47,362,047 shares issued and outstanding at March 31, 2014 and December 31, 2013   54,363    54,363 
Additional paid-in capital   4,912,814    4,912,814 
Accumulated deficit   (8,212,192)   (7,808,370)
Total stockholders' deficit   (3,245,015)   (2,841,193)
Total liabilities and stockholders' deficit  $331,587   $526,024 

 

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GLOBALWISE INVESTMENTS, INC. and SUBSIDIARY

Condensed Consolidated Statements of Operations

(Unaudited)

 

   For the Three Months Ended March 31, 
   2014   2013 
Revenues:          
Sale of software  $8,000   $8,660 
Software as a service   39,442    34,790 
Software maintenance services   210,522    223,464 
Professional services   29,424    72,772 
Third party services   11,795    15,185 
Total revenues   299,183    354,871 
           
Cost of revenues:          
Sale of software   6,444    121,305 
Software as a service   6,930    6,909 
Software maintenance services   31,747    27,950 
Professional services   9,710    1,318 
Third party services   8,597    22,002 
Total cost of revenues   63,428    179,484 
           
Gross profit   235,755    175,387 
           
Operating expenses:          
General and administrative   468,469    568,148 
Sales and marketing   116,174    227,783 
Depreciation   6,930    5,344 
Total operating expenses   591,573    801,275 
           
Loss from operations   (355,818)   (625,888)
           
Other income (expenses)          
Derivative gain   -    15,470 
Interest expense, net   (48,004)   (61,379)
Total operating expenses   (48,004)   (45,909)
           
Net loss  $(403,822)  $(671,797)
           
Basic and diluted net loss per share  $(0.01)  $(0.02)
           
Weighted average number of common shares outstanding - basic and diluted   47,362,047    39,620,613 

  

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