COLUMBUS, OH--(Marketwired - May 15, 2014) - GlobalWise Investments, Inc. (
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 Information:
GlobalWise Investments, Inc.
www.GlobalWiseInvestments.com
Matthew Chretien
President & CEO
614-388-8909
Contact@GlobalWiseInvestments.com