GlobalWise Investments, a technology company focused on the design, implementation, and management of cloud-based Enterprise Content Management (ECM) systems via wholly owned subsidiary Intellinetics, Inc., reported its financial results for the first quarter ended March 31, 2013.
Total revenues for the quarter were $354,871, a decrease of 2 percent compared to $360,328 for the comparable quarter of 2012. The company attributes the year-over-year decrease primarily to the delay in closing several major agreements generated by its expanded sales channel partners, as well as lower revenue from consulting projects.
Gross profits were $175,387 for Q1 2013, an increase of 211 percent compared to $56,381 for the comparable year ago period.
Gross margins were 49 percent and 16 percent for the three months ended March 31, 2013, and 2012, respectively, an increase of 33 percent.
GlobalWise reported a net loss of $671,797 for Q1 2013, narrowed by 42 percent compared to a net loss of $1.1 million for the same three months of 2012. The lower loss reflects the absence of $305,000 in costs associated with the Share Exchange and reverse merger which were incurred during 2012.
As of March 31, 2013, GlobalWise had $1.3 million in cash compared to $140,510 at the end of Q1 2012. The increase in cash is a result of the company’s financing activities during the first quarter, which raised net proceeds of $2.7 million. Cash from non-financing activities was $850,870 as a result of the conversion of equity during the period. GlobalWise initiated a debt reduction initiative in September 2012, which has reduced the company’s debt by 49 percent through March 31, 2013.
“In the first quarter of 2013 we reached a significant milestone in completing our first major financing,” William J. “BJ” Santiago, CEO of GlobalWise, stated in the press release. “We believe this financing helps us to, among other things, expand our global channel sales distribution model and expedite our strategies of servicing the small-to-medium (SMB) business sectors world-wide and generate greater revenue in the coming quarters in fiscal 2013.”
For more information, visit www.GlobalWiseInvestments.com
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