GlobalWise Investments Announces Results for Fiscal Year 2013

COLUMBUS, OH--(Marketwired - Mar 31, 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 year ended December 31, 2013.

The Company's total revenues for the twelve months ended December 31, 2013 were $1,554,185 as compared to $2,734,950 for the same period in 2012, a decrease of $1,180,765, or 43%, primarily attributable to decreases in revenues from consulting services and software licenses with and without professional services. 

Overall gross margins were 62% and 64% for the twelve months ended December 31, 2013 and 2012, respectively, a decrease of 2%.

Total operating expenses were $2,940,030 for the twelve months ended December 31, 2013 as compared to $3,424,507 for the twelve months ended December 31, 2012, representing a decrease of 14% or $484,477. The decrease in operating expenses is primarily due to a reduction in sales and marketing expense.

GlobalWise reported a net operating loss of $2,139,704 and $1,985,493 for the twelve months ended December 31, 2013 and 2012, respectively, representing an increase in net loss of $154,211 or 8%.

Matthew Chretien, President and CEO of GlobalWise stated, "In 2013, Intellinetics made significant efforts into refining and re-designing every detail of our channel partner strategy from a technology, process, tools, business model and market positioning perspective. This process consumed significant time and resources across the board but was crucial to improving revenue-generating effectiveness. MarketCommand™ was designed using feedback and analysis from our customers and channel partners. MarketCommand™ is a go-to-market approach that will become the de-facto standard for solution delivery into the SMB market, whose buyers place a premium on simplicity, minimizing disruption, and affordability when considering new business solutions. MarketCommand™ for our software platform, IntelliCloud™, was launched in Q1 of 2014. It allows our partners to bundle IntelliCloud™ as an embedded part of the hardware or services they already provide. We are initially focused on recruiting dealers in the print/imaging channel and will expand to the adjacent and much larger IT value-added reseller channel as a next step. 

The first two MarketCommand™ partners from the imaging channel were active by the end of Q1 of 2014. Combined, these carefully selected market leaders have 170 sales people serving over 40,000 active customers -- large enough for a rigorous 'stress test' of the program to ensure every aspect of the model works well. While feedback has been positive and new orders have been received under MarketCommand™, moving from premise-based one-time sales to the new low-cost, cloud-based entry point for recurring sales is a difficult transition from a revenue perspective. We certainly experienced that revenue contraction in 2013. However, as the number of active subscribers continues to grow, recurring revenue increases. As we certify other software providers to participate in MarketCommand™, we can benefit from additional revenue share from solutions such as device monitoring, power management and remote network management which can leverage the same infrastructure as IntelliCloud™ for activation. 

Moving forward, our focus is on recruiting strong, highly qualified resellers under MarketCommand™, which will increase the number of people, solutions, and services that use IntelliCloud™. The stronger our reseller base, the more IntelliCloud™ customers activate with increasing recurring revenue generation as storage consumption grows. We already have several new companies lined up to partner with us under MarketCommand™ in Q2 of 2014 and the focus on expanding distribution is our number one priority. The link below shows a video example of the MarketCommand™ with IntelliCloud™ in action. Its power is in the simplicity of messaging and delivery."

http://services.in2communications.com/download/dms/

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
Consolidated Balance Sheets
ASSETS
			December 31,				December 31,
			2013				2012
Current assets:
	Cash		$	260,560			$	46,236
	Accounts receivable, net			144,071				332,413
	Prepaid expenses and other current assets			39,242				40,026
		Total current assets		443,873				418,675
Property and equipment, net				53,226				58,129
Other assets				28,925				37,239
		Total assets	$	526,024			$	514,043
LIABILITIES AND STOCKHOLDERS' DEFICIT
Current liabilities:
	Accounts payable and accrued expenses		$	502,646			$	1,143,265
	Deferred revenues			482,428				571,268
	Derivative Liability			-				15,470
	Notes payable - current			711,266				563,009
	Convertible note payable, net of discount			-				107,518
	Notes payable - related party - current			-				95,000
		Total current liabilities		1,696,340				2,495,530
Long-term liabilities:
	Deferred compensation			215,012				309,740
	Notes payable - net of current portion			1,114,394				1,509,265
	Notes payable - related party			222,915				369,415
	Deferred interest expense			83,942				41,440
	Other long-term liabilities - related parties			34,614				72,033
		Total long-term liabilities		1,670,877				2,301,893
		Total liabilities		3,367,217				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 December 31, 2013 and December 31, 2012, respectively			54,363				36,492
	Additional paid-in capital			4,912,814				1,348,794
	Accumulated deficit			(7,808,370	)			(5,668,666	)
		Total stockholders' deficit		(2,841,193	)			(4,283,380	)
		Total liabilities and stockholders' deficit	$	526,024			$	514,043

GLOBALWISE INVESTMENTS, INC. and SUBSIDIARY
Consolidated Statements of Operations
			For the Year Ended December 31,
			2013				2012
Revenues:
	Sale of software licenses without professional services		$	67,507			$	188,894
	Sale of software licenses with professional services			196,485				929,741
	Software as a service			138,607				108,102
	Software maintenance services			856,755				790,007
	Consulting services			294,831				718,206
		Total revenues		1,554,185				2,734,950
Cost of revenues:
	Sale of software licenses without professional services			25,170				45,477
	Sale of software licenses with professional services			283,374				469,252
	Software as a service			27,592				28,232
	Software maintenance services			124,430				119,727
	Consulting services			124,663				318,831
		Total cost of revenues		585,229				981,519
Gross profit				968,956				1,753,431
Operating expenses:
	General and administrative			2,087,169				2,196,068
	Sales and marketing			826,396				1,200,019
	Depreciation			26,465				28,420
		Total operating expenses		2,940,030				3,424,507
Loss from operations				(1,971,074	)			(1,671,076	)
Other income (expense)
	Derivative gain (loss)			15,470				(15,470	)
	Interest expense, net			(184,100	)			(298,947	)
		Total other income (expense)		(168,630	)			(314,417	)
Net loss			$	(2,139,704	)		$	(1,985,493	)
Basic and diluted net loss per share:			$	(0.05	)		$	(0.06	)
Weighted average number of common shares outstanding - basic and diluted				45,289,553				32,866,979