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