GlobalWise Reports Third Quarter 2012 Financial Results and Provides Revised Fiscal 2012 Guidance

COLUMBUS, OH--(Marketwire - Nov 15, 2012) - GlobalWise Investments, Inc. (OTCBB: GWIV) (OTCQB: GWIV) (www.GlobalWiseInvestments.com) and its wholly owned subsidiary Intellinetics, Inc., an enterprise content management ("ECM") software development, sales and marketing company serving both public and private sector clients, today announce financial results for the third quarter and nine months ended September 30, 2012.

Financial Highlights for the Third Quarter ended September 30, 2012:

• Total revenue increased by 15% to $711,737 compared to $617,026 in the year-ago third quarter;
• Gross profit improved to $484,205, a 23% increase over the year-ago third quarter of $395,104;
• Gross profit margin increased to 68% compared to 64% in the year-ago third quarter;
• Operating expenses, excluding non-recurring and non-cash expenses totaling $206,800, increased to $682,976 from $438,821 in the year-ago third quarter; and
• Adjusted EBITDA (as defined below) for the third quarter was ($192,034) compared to ($34,569) in the year-ago third quarter.

Financial Highlights for the Nine Months ended September 30, 2012:

• Total revenue increased 36% to $1,959,350 compared to $1,438,203 in the year-ago nine month period;
• Gross profit improved by 43% to $1,137,709 compared to $794,748 in the year-ago nine month period;
• Gross profit margin increased to 58% compared to 55% in the year-ago nine month period;
• Operating expenses, excluding non-recurring and non-cash expenses totaling $987,800, increased to $1,730,945 compared to $1,228,510 in the year-ago nine month period; and
• Adjusted EBITDA (as defined below) for the nine months ended September 30, 2012, was ($572,062) compared to ($403,481) in the year-ago nine month period.

"Excluding non-recurring and non-cash charges, our operating expenses were materially unchanged in the third quarter 2012 vs. the second quarter 2012 at around $680,000," stated William J. "BJ" Santiago, CEO of GlobalWise. "We expect operating expenses to remain relatively stable at current levels as revenue increases. We're seeing a continued increase in channel partner sales activity and are currently on track to achieve steady revenue growth in the fourth quarter."

Revised Fiscal Year 2012 Guidance:

Based upon the Company's current sales funnel and recent Channel Partner activity, GlobalWise currently expects annual revenue in 2012 to be in the range of $2.8 million to $3.3 million.

Non-GAAP Financial Measure:

In addition to presenting financial results in accordance with generally accepted accounting principles, or GAAP, this earnings release also presents adjusted earnings before interest, taxes, depreciation and amortization, share based payments and expenses that management believes will not recur in future periods, including certain acquisition-related expenses ("Adjusted EBITDA"). Adjusted EBITDA is calculated by deducting operating and other expenses from gross profit and excluding amounts related to interest expense, income tax expense or benefit, depreciation expense, amortization expense, non-cash share-based payments, acquisition-related expenses and any gain or loss on disposal of assets. This non-GAAP financial measure is intended to provide investors with additional insight into our ongoing operating performance. This non-GAAP financial measure should be considered in conjunction with, but not as a substitute for, the financial information presented in accordance with GAAP.

A reconciliation of the Company's GAAP Net (Loss) for the quarters and nine months ended September 30, 2011 and 2012 to its non-GAAP Adjusted EBITDA for the same periods is provided below:

			For the Three Months Ended September 30,								For the Nine Months Ended September 30,
			2012				2011				2012				2011
Net Loss				(492,607	)			(91,749	)			(1,795,731	)			(555,893	)
Depreciation				6,737				9,148				21,174				30,281
Interest Expense, net				87,036				48,032				214,695				122,131
Non-Recurring, Non-Cash Compensation included in SG&A				206,800				-				206,800				-
Non-Recurring Public Transaction Related Expenses included in SG&A				-				-				781,000				-
	Adjusted EBITDA		$	(192,034	)		$	(34,569	)		$	(572,062	)		$	(403,481	)

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

This press release may contain "forward-looking statements." Expressions of future goals and similar expressions reflecting something other than historical fact are intended to identify forward-looking statements, but are not the exclusive means of identifying such statements. These forward-looking statements may include, without limitation, statements about our market opportunity, strategies, competition, expected activities and expenditures as we pursue our business plan. Although we believe that the expectations reflected in any forward-looking statements are reasonable, we cannot predict the effect that market conditions, customer acceptance of products, regulatory issues, competitive factors, or other business circumstances and factors described in our filings with the Securities and Exchange Commission may have on our results. The company undertakes no obligation to revise or update any forward-looking statements in order to reflect events or circumstances that may arise after the date of this press release.

Financial Tables Follow

GLOBALWISE INVESTMENTS, INC. and SUBSIDIARY
Condensed Consolidated Statements of Operations
					For the Three Months Ended September 30,								For the Nine Months Ended September 30,
					2012				2011				2012				2011
Revenues:
	Sale of software licenses without professional services				$	84,134			$	60,844			$	140,812			$	97,644
	Sale of software licenses with professional services					307,167				308,447				720,562				551,211
	Software as a service					25,425				41,575				79,062				110,902
	Software maintenance services					201,539				148,238				574,848				462,480
	Consulting services					93,472				57,922				444,066				215,966
		Total revenues				711,737				617,026				1,959,350				1,438,203
Cost of revenues:
		Sale of software licenses without professional services				8,271				3,810				40,103				13,261
		Sale of software licenses with professional services				109,229				124,894				372,084				354,384
		Software as a service				7,478				7,057				21,372				20,573
		Software maintenance services				34,719				29,757				96,003				81,929
		Consulting services				67,836				56,404				292,080				173,308
			Total cost of revenues			227,532				221,922				821,641				643,455
Gross profit						484,205				395,104				1,137,709				794,748
Operating expenses:
		General and administrative				589,403				229,445				1,758,602				731,079
		Sales and marketing				293,636				200,228				938,969				467,150
		Depreciation				6,737				9,148				21,174				30,281
			Total operating expenses			889,776				438,821				2,718,745				1,228,510
Loss from operations						(405,571	)			(43,717	)			(1,581,036	)			(433,762	)
Other income (expense)
	Interest expense, net					(87,036	)			(48,032	)			(214,695	)			(122,131	)
Net Loss					$	(492,607	)		$	(91,749	)		$	(1,795,731	)		$	(555,893	)
Basic and diluted net loss per share					$	(0.01	)		$	(0.00	)		$	(0.06	)		$	(0.02	)
Weighted average number of common shares outstanding - basic and diluted						33,022,913				22,757,100				32,082,486				22,757,100
Adjusted EBITDA:
Net Loss						(492,607	)			(91,749	)			(1,795,731	)			(555,893	)
Depreciation						6,737				9,148				21,174				30,281
Interest Expense, net						87,036				48,032				214,695				122,131
Non-Recurring, Non-Cash Compensation included in SG&A						206,800				-				206,800				-
Non-Recurring Public Transaction Related Expenses included in SG&A						-				-				781,000				-
	Adjusted EBITDA				$	(192,034	)		$	(34,569	)		$	(572,062	)		$	(403,481	)

GLOBALWISE INVESTMENTS, INC.
Condensed Consolidated Balance Sheets
ASSETS
				(Unaudited)
				September 30,				December 31,
				2012				2011
Current assets:
	Cash			$	21,205			$	140,271
	Accounts receivable, net				281,206				335,453
	Prepaid expenses and other current assets				51,246				18,398
		Total current assets			353,657				494,122
Property and equipment, net					65,375				32,771
Other assets					39,318				46,404
		Total assets		$	458,350			$	573,297
LIABILITIES AND STOCKHOLDERS' DEFICIT
Current liabilities:
	Accounts payable and accrued expenses			$	1,024,984			$	389,080
	Accrued expenses, related parties				30,405				-
	Deferred revenues				586,009				964,043
	Derivative liability				-				-
	Convertible notes payable, net of discount				97,500				-
	Notes payable - current				1,446,310				747,778
	Notes payable - related party - current				370,000				-
		Total current liabilities			3,555,208				2,100,901
Long-term liabilities:
	Deferred compensation				245,357				215,011
	Notes payable - net of current portion				1,304,650				1,528,915
	Notes payable - related party - net of current portion				276,707				262,707
	Deferred interest expense				39,564				17,063
	Other long-term liabilities - related parties				169,964				157,859
		Total long-term liabilities			2,036,242				2,181,555
		Total liabilities other than shares			5,591,450				4,282,456
Shares subject to mandatory redemption					-				111,235
		Total liabilities			5,591,450				4,393,691
Commitments and contingencies
Excess of liabilities over assets (deficit)					-				(3,820,394	)
		Total liabilities and excess of liabilities over assets (deficit)			5,591,450				573,297
Stockholders' deficit:
	Common stock, $0.001 par value, 50,000,000 shares authorized; 33,022,913 shares issued and outstanding at September 30, 2012				33,023				-
	Additional paid-in capital				312,783				-
	Accumulated deficit				(5,478,906	)			-
		Total stockholders' deficit			(5,133,100	)			-
		Total liabilities and excess of liabilities over assets (deficit) and stockholders' deficit		$	458,350			$	573,297