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GlobalWise Investments Announces Results for First Quarter 2014

Companies mentioned in this article: GlobalWise Investments, Inc.

COLUMBUS, OH -- (Marketwired) -- 05/15/14 -- 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
                                       =================  =================



Contact:

GlobalWise Investments, Inc.
www.GlobalWiseInvestments.com
Matthew Chretien
President & CEO
614-388-8909
Contact@GlobalWiseInvestments.com