GlobalWise Investments Reports Financial Results for Third Quarter 2013

COLUMBUS, OH--(Marketwired - Nov 14, 2013) - 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 third quarter ended September 30, 2013.

The Company's total revenues for the quarter ended September 30, 2013 were $381,078 as compared to $711,737 for the three months ended September 30, 2012, a decrease of $330,659, or 46%, primarily attributable to decreases in revenues from software licenses with and without professional services and consulting services. Gross profits were $266,162 for the quarter ended September 30, 2013 as compared to $484,205 for the quarter ended September 30, 2012, representing a decrease of 45%, primarily as a result of the decrease in revenues.

GlobalWise's costs of revenues were $114,916 and $227,532 for the quarters ended September 30, 2013 and September 30, 2012, respectively, representing a decrease of $112,616 or 49%. The decrease in cost of revenues is primarily the result of a decrease in third-party costs in connection with a client document conversion project in 2012. As a result, gross margins were 70% and 68% for the quarters ended September 30, 2013 and September 30, 2012, respectively, an increase of 2%. 

Total operating expenses for the quarter ended September 30, 2013 were $767,533 as compared to $889,776 during the quarter ended September 30, 2012, representing a decrease of $122,243 or 14%.

As a result, GlobalWise reported a net loss of $541,412 for the quarter ended September 30, 2013 compared to a net loss of $492,607 for the quarter ended September 30, 2012, representing an increase of $48,805.

Matthew Chretien, Interim President and CEO of GlobalWise stated, "While our revenue growth has slowed down, public awareness of cloud-based computing, storage and retrieval is helping our marketing efforts to the smaller SMB clients. Our software as a service (SAAS) offering Intelli-Cloud™ is sold through our expanding base of channel partners that creates a low-cost sales delivery mechanism coupled with a high-margin software product. The recent conferences we attended, is helping us broaden our message to a larger group, as well as increase our number of channel partners. Our channel partnerships with companies like MWAi are gaining traction and I was honored to participate in the 2013 Innovation Fair in Japan with the rest of the Technology United members. I am enthusiastic regarding the expected increased performance and commitment from our channel partners, but still expect fluctuations in revenue as we evolve from historically premised-based software solutions sold over a long sales cycle to cloud-based solutions."

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

GLOBALWISE INVESTMENTS, INC. and SUBSIDIARY
Condensed Consolidated Balance Sheets
ASSETS
				Unaudited
				September 30,			December 31,
				2013			2012
Current assets:
	Cash			$	170,975		$	46,236
	Accounts receivable, net				532,965			332,413
	Prepaid expenses and other current assets				56,761			40,026
		Total current assets			760,701			418,675
Property and equipment, net					61,280			58,129
Other assets					31,003			37,239
		Total assets		$	852,984		$	514,043

LIABILITIES AND STOCKHOLDERS' DEFICIT
Current liabilities:
	Accounts payable and accrued expenses			$	462,548			$	1,143,265
	Deferred revenues				648,406				571,268
	Derivative Liability				-				15,470
	Notes payable - current				305,809				563,009
	Convertible note payable, net of discount				-				107,518
	Notes payable - related party - current				230,415				95,000
		Total current liabilities			1,647,178				2,495,530
Long-term liabilities:
	Deferred compensation				215,012				309,740
	Notes payable - net of current portion				1,210,992				1,509,265
	Notes payable - related party				-				369,415
	Deferred interest expense				73,316				41,440
	Other long-term liabilities - related parties				30,091				72,033
		Total long-term liabilities			1,529,411				2,301,893
		Total liabilities			3,176,589				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 September 30, 2013 and December 31, 2012, respectively				54,363				36,492
	Additional paid-in capital				4,912,814				1,348,794
	Accumulated deficit				(7,290,782	)			(5,668,666	)
		Total stockholders' deficit			(2,323,605	)			(4,283,380	)
		Total liabilities and stockholders' deficit		$	852,984			$	514,043

GLOBALWISE INVESTMENTS, INC. and SUBSIDIARY
Condensed Consolidated Statements of Operations
(Unaudited)
				For the Three Months Ended September 30,								For the Nine Months Ended September 30,
				2013				2012				2013				2012
Revenues:
	Sale of software licenses without professional services			$	11,263			$	84,134			$	150,542			$	140,812
	Sale of software licenses with professional services				72,852				307,167				192,585				720,562
	Software as a service				34,919				25,425				104,030				79,062
	Software maintenance services				211,759				201,539				648,765				574,848
	Consulting services				50,285				93,472				221,192				444,066
		Total revenues			381,078				711,737				1,317,114				1,959,350
Cost of revenues:
	Sale of software licenses without professional services				6,609				8,271				19,712				40,103
	Sale of software licenses with professional services				48,810				109,229				280,761				372,084
	Software as a service				6,881				7,478				20,684				21,372
	Software maintenance services				32,172				34,719				92,496				96,003
	Consulting services				20,444				67,836				63,112				292,080
		Total cost of revenues			114,916				227,532				476,765				821,641
Gross profit					266,162				484,205				840,349				1,137,709
Operating expenses:
	General and administrative				566,448				589,403				1,642,065				1,758,602
	Sales and marketing				193,579				293,636				673,601				938,969
	Depreciation				7,506				6,737				19,622				21,174
		Total operating expenses			767,533				889,776				2,335,288				2,718,745
Loss from operations					(501,371	)			(405,571	)			(1,494,939	)			(1,581,036	)
Other income (expense)
	Derivative gain				-				-				15,470				-
	Interest expense, net				(40,041	)			(87,036	)			(142,647	)			(214,695	)
		Total other income (expense)			(40,041	)			(87,036	)			(127,177	)			(214,695	)
Net loss				$	(541,412	)		$	(492,607	)		$	(1,622,116	)		$	(1,795,731	)
Basic and diluted net loss per share:				$	(0.01	)		$	(0.01	)		$	(0.03	)		$	(0.05	)
Weighted average number of common shares outstanding - basic and diluted					47,362,047				33,022,913				47,362,047				32,082,486