GlobalWise (GWIV) Announces Results for Fiscal Year 2012

COLUMBUS, OH — (Marketwired) — 04/02/13 — GlobalWise Investments, Inc. (OTCBB: GWIV) (OTCQB: GWIV) (the “Company” or “GlobalWise”) (www.GlobalWiseInvestments.com), 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, announced financial results for the fiscal year ended December 31, 2012.

The company’s total revenues for the 12 months ended December 31, 2012 were $2,734,950 compared to $1,725,752 for the same period 2011, representing an increase of $1,009,198 or 58%. The increase in total revenues year-over-year is attributable primarily to an increase in new accounts gained through the Company’s expanded sales channel partner network, as well as renewal of existing customer maintenance agreements and additional consulting projects.

Overall gross margin were 64% and 52% for the twelve months ended December 31, 2012 and 2011, respectively, an increase of 12%. The increase in gross margin is primarily a result of increase in revenue.

Total operating expenses were $3,424,507 for the twelve months ended December 31, 2012 as compared to $2,166,432 for the twelve months ended December 31, 2011, representing a 58% increase or an increase of $1,258,075. This increase in operating expenses is primarily due to legal, consulting and professional fees related to the Share Exchange consummated on February 12, 2012, the corresponding costs of operating and reporting as a public company, and the on-boarding of additional sales and marketing personnel.

GlobalWise reported a net operating loss of $1,985,493 and $1,440,062 for the twelve months ended December 31, 2012 and 2011, respectively, representing an increase in net loss of $545,431 or 38%. Gross profits were $1,753,431 and $900,826 for the twelve months ended December 31, 2012 and 2011, respectively, representing an increase of $852,605, or 95%.

Mr. William J. “BJ” Santiago, Chief Executive Officer of GlobalWise, stated, “During the past year, GlobalWise has undergone a dramatic transformation and established a foundation for strong growth in the years ahead. We are pleased with the progress we made during 2012, and we are already seeing the positive impact from our investment of time and resources to develop our sales channel distribution model. We added 11 new quality channel partners, bringing our total network of channel partners to 25, and increased our customer subscriber base to more than 300 from 51. We plan to announce a number of additional industry-leading companies as channel partners in 2013, which will expand our network both domestically and internationally, providing even greater reach for our Intellivue™ platform and significant expansion of our customer base.”

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

Forward Looking Statements

This press release may contain “forward-looking statements.” Expressions of future goals and similar expressions reflecting something other than historical facts 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 TO FOLLOW)

                        GLOBALWISE INVESTMENTS, INC.
                   Condensed Consolidated Balance Sheets
                                 (Audited)

                                   ASSETS

                                                 December 31,  December 31,
                                                 ------------  ------------
                                                     2012          2011
                                                 ------------  ------------

Current assets:
  Cash                                           $     46,236  $    140,271
  Accounts receivable, net                            332,413       335,453
  Prepaid expenses and other current assets            40,026        18,398
                                                 ------------  ------------

    Total current assets                              418,675       494,122

Property and equipment, net                            58,129        32,771
Other assets                                           37,239        46,404
                                                 ------------  ------------

    Total assets                                 $    514,043  $    573,297
                                                 ============  ============

                   LIABILITIES AND STOCKHOLDERS' DEFICIT

Current liabilities:
  Accounts payable and accrued expenses          $  1,143,265  $    389,080
  Deferred revenues                                   571,268       964,043
  Deravative liability                                 15,470             -
  Notes payable - current                             563,009       747,778
  Convertible note payable, net of discount           107,518
  Notes payable - related party - current              95,000             -
                                                 ------------  ------------
    Total current liabilities                       2,495,530     2,100,901

Long-term liabilities:
  Deferred compensation                               309,740       215,011
  Notes payable - net of current portion            1,509,265     1,528,915
  Notes payable - related party - net of current
   portion                                            369,415       262,707
  Deferred interest expense                            41,440        17,063
  Other long-term liabilities - related parties        72,033       157,859
                                                 ------------  ------------

    Total long-term liabilities                     2,301,893     2,181,555
                                                 ------------  ------------

    Total liabilities other than shares             4,797,423     4,282,456
Shares subject to mandatory redemption                              111,235
                                                 ------------  ------------

    Total liabilities                               4,797,423     4,393,691

Commitments and contingencies
Excess of liabilities over assets (deficit)                 -    (3,820,394)
                                                 ------------  ------------
    Total liabilities and excess of liabilities
     over assets (deficit)                          4,797,423       573,297
                                                 ------------  ------------
Stockholders' deficit:

  Common stock, $0.001 par value, 50,000,000
   shares authorized; 36,490,345 shares issued
   and outstanding at December 31, 2012                36,492             -
  Additional paid-in capital (deficit)              1,348,794             -
  Accumulated deficit                              (5,668,666)            -
                                                 ------------  ------------
    Total stockholders' deficit                    (4,283,380)            -
                                                 ------------  ------------
    Total liabilities and excess of liabilities
     over assets (deficit) and stockholders'
     deficit                                     $    514,043  $    573,297
                                                 ============  ============

       See Notes to these condensed consolidated financial statements

                GLOBALWISE INVESTMENTS, INC. and SUBSIDIARY
              Condensed Consolidated Statements of Operations
                                 (Audited)

                                                    For the Twelve Months
                                                            Ended
                                                        December 31,
                                                 --------------------------
                                                     2012          2011
                                                 ------------  ------------

Revenues:
  Sale of software licenses without professional
   services                                      $    188,894       137,068
  Sale of software licenses with professional
   services                                           929,741       542,801
  Software as a service                               108,102       143,428
  Software maintenance services                       790,007       633,302
  Consulting services                                 718,206       269,153
                                                 ------------  ------------

    Total revenues                                  2,734,950     1,725,752
                                                 ------------  ------------

Cost of revenues:
  Sale of software licenses without professional
   services                                            45,477        17,001
  Sale of software licenses with professional
   services                                           469,252       454,330
  Software as a service                                28,232        26,375
  Software maintenance services                       119,727       105,035
  Consulting services                                 318,831       222,185
                                                 ------------  ------------

    Total cost of revenues                            981,519       824,926
                                                 ------------  ------------

Gross profit                                        1,753,431       900,826
                                                 ------------  ------------

Operating expenses:
  General and administrative                        2,196,068     1,388,315
  Sales and marketing                               1,200,019       737,680
  Depreciation                                         28,420        40,437
                                                 ------------  ------------

    Total operating expenses                        3,424,507     2,166,432
                                                 ------------  ------------

Loss from operations                               (1,671,076)   (1,265,606)

Other expenses:
  Derative Loss                                       (15,470)            -
  Interest expense, net                              (298,947)     (174,456)
                                                 ------------  ------------

    Total other expenses                             (314,417)     (174,456)
                                                 ------------  ------------

Net loss                                         $ (1,985,493) $ (1,440,062)
                                                 ============  ============

Weighted average number of common shares
 outstanding - basic                               32,866,979    22,757,100
                                                 ============  ============

Weighted average number of common shares
 outstanding - fully diluted                       32,900,519    22,757,100
                                                 ============  ============

Net loss per share - basic and diluted           $      (0.06) $      (0.06)
                                                 ============  ============

       See Notes to these condensed consolidated financial statements

Contacts:

William “BJ” Santiago
President & Chief Executive Officer
GlobalWise Investments, Inc.
Email Contact
614-921-8170

Michael J. Porter
President
Porter, LeVay & Rose, Inc.
Email Contact
212-564-4700