SOURCE: GlobalWise Investments, Inc.

GlobalWise Investments, Inc.

May 15, 2014 18:03 ET

GlobalWise Investments Announces Results for First Quarter 2014

COLUMBUS, OH--(Marketwired - May 15, 2014) - GlobalWise Investments, Inc. (OTCQB: 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 MarketCommand™, which we will refer to as IntelliCloud™ going forward, our reseller program for print/imaging and IT solutions providers. In Q1 of 2014, we added five (5) partners who are actively selling IntelliCloud™ based solutions. We also entered into an alliance with Muratec, a hardware OEM, to present the IntelliCloud™ 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 IntelliCloud™ model, which has been challenging from a short-term revenue perspective. However, as the number of active IntelliCloud™ increases, we will generate growing recurring revenue. The video link below captures the simplicity of IntelliCloud™ 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."

IntelliCloud™ Overview Video: 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: www.Intellinetics.com

   
GLOBALWISE INVESTMENTS, INC. and SUBSIDIARY  
Condensed Consolidated Balance Sheets  
   
             
             
ASSETS  
    (Unaudited)        
    March 31,     December 31,  
    2014     2013  
                 
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  
                 
                 
                 
   
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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