INTELLINETICS, INC. - FORM 8-K - EX-99.1 - PRESS RELEASE

Attached files

file	filename
8-K - CURRENT REPORT - INTELLINETICS, INC.	v328379_8k.htm

Exhibit 99.1

GlobalWise Investments, Inc.

Columbus, Ohio

www.GlobalWiseInvestments.com

614-388-8909

Contact@GlobalWiseInvestments.com

Mission Investor Relations

Atlanta, Georgia

http://www.MissionIR.com

404-941-8975

Investors@MissionIR.com

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

-- Achieves 15% Revenue Growth and 23% Increase in Gross Profit Over the Year-Ago Third Quarter --

-- Achieves 36% Revenue Growth and 43% Increase in Gross Profit Over the Year-Ago Nine Month Period ended September 30, 2011 --

COLUMBUS, OH, November 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.

-2-

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^TM, 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

-3-

	GLOBALWIDE INVESTMENTS, INC. and SUBSIDIARY
	Condensed Consolidated Statements of Operations
	(unaudited)
	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	)

-4-

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

Attached files

Stock widget

Investing forum

INTELLINETICS, INC. Reports