Major News! Big Name on Board Issac Blech

Dont know how many of you caught this, but this is a major step when someone of Blech's caliber steps forward...Blech is a self made billionaire with tons of connections. I challenge you to google his name....


Entry into a Material Definitive Agreement


Item 1.01 Entry Into a Material Definitive Agreement

On January 19, 2011, Socialwise, Inc., a Colorado corporation ("we," "us," "our," or the "Company"), entered into a Subscription Agreement, Registration Rights Agreement and Common Stock Purchase Warrant (collectively, the "Financing Agreements") with a trust (LIBERTY CHARITABLE REMAINDER TRUST FBO ISAAC BLECH UAD 01/09/87) whose trustee is an existing Company shareholder, pursuant to which we issued 5,000,000 shares of our Common Stock, and five year warrants to purchase an additional 3,750,000 shares of our Common Stock at an exercise price of $0.40 per share, in exchange for gross proceeds totaling $2,000,000.

This financing transaction resulted in estimated final net proceeds to us of $1,785,000, after deducting fees and expenses. Maxim Group LLC acted as the Placement Agent in connection with the offering and will receive cash proceeds totaling $200,000 and will receive five-year warrants to purchase 750,000 shares of Common Stock at an exercise price of $0.60 per share as compensation. Equity Source Partners (and its designees) was also granted a five-year warrant to purchase 250,000 shares of our common stock with an exercise price of $0.60 per share.

The following summarizes the terms of the Financing Agreements with the investor:

Securities Sold. The investor received one share of our Common Stock and a warrant to purchase three shares of our Common Stock for every four shares of Common Stock purchased.

Additional Covenants. The Company has agreed to certain covenants in connection with the Subscription Agreement including:

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Listing of securities sold on any trading market that the Company applies to have its securities traded on;

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Reservation of shares adequate to satisfy all warrants outstanding which were sold;

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Replacement of securities lost by the investor upon adequate evidence of such loss;

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Right of participation in any future issuances of securities by the Company through January 19, 2011; and

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Obligation to indemnify the investor under specified circumstances.

Registration Rights. The Company has entered into a Registration Rights Agreement with the investor pursuant to which, subject to the Company's receipt of waivers from the investors who are party to the registration rights agreement with the Company dated November 16, 2010 (the "Previous Agreement"), the Company is required to file a registration statement for the re-sale of the Common Stock and Common Stock underlying the Warrants, or include the Common Stock and Common Stock underlying the Warrants within the registration statement to be filed pursuant to the Previous Agreement, within 90 days after January 19, 2011, and to use its commercially reasonable efforts to cause the registration statement to be declared effective as promptly as possible after filing.

Warrants. The warrants issued in connection with sale of Common Stock are five year warrants to purchase shares of our Common Stock at a price of $0.40 per share.

The summary of the financing transaction described above, and the summary of the terms of the securities and agreements related to such financing transaction, are qualified in their entirety by reference to the following documents which are filed as exhibits to this current report:

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Subscription Agreement;

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Common Stock Purchase Warrant; and

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Registration Rights Agreement.



Item 3.02 Unregistered Sales of Equity Securities

The information provided in response to Item 1.01 of this report is incorporated by reference into this Item 3.02. The investor in that financing met the accredited investor definition of Rule 501 of the Securities Act of 1933, as amended (the "Securities Act"). The sale of Common Stock and warrants in the offering were made in private placements under Section 4(2) of the Securities Act and/or Rule 506 of Regulation D under the Securities Act. The offering was not conducted in connection with a public offering, and no public solicitation or advertisement was made or relied upon by the investor in connection with the offering.

The total number of outstanding shares of outstanding Common Stock as of the date of this report is 67,352,170.

Offerpal Media Rolls Out New Direct Payment Options Worldwide, Hires Industry Veteran Alex Brutin

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FREMONT, Calif., April 8 /PRNewswire/ -- Offerpal Media (http://www.offerpalmedia.com), the leader in virtual currency payment alternatives, announced today that it recently integrated several new direct payment options into its platform in order to help social developers and online game publishers accept payments from users who do not have or are unwilling to use credit cards. The new payment options include pre-paid debit cards, phone cards, e-payment systems, parent-approved payments and more, from such partners as Zeus Research and STi Prepaid, paysafecard, MyCard, Rixty, BillMyParents, ClickandBuy and others—covering nearly 200 countries in all.

The company also announced it recently hired payment industry veteran Alex Brutin as its Vice President of Business Development. Mr. Brutin is responsible for forging new relationships with other direct payment providers and monetization partners as well as new strategic initiatives. Having previously worked as the Head of Channel Partnerships at Google Checkout and in Merchant Services Business Development at PayPal, Mr. Brutin most recently was the VP of Business Development at FreeCause, a free, fully-customizable toolbar that helps organizations reach and engage their supporters in fundamentally new ways. He has his MBA from the Walter A. Haas School of Business at UC Berkeley.

"Our vision is to help developers monetize larger portions of their user bases, whether through alternative payment options like offers, videos and surveys, or cash payment methods such as credit cards and all their substitutes," said George Garrick, Chairman and CEO of Offerpal Media. "There's a lot of innovation in the online payment space at the moment, with all sorts of new payment products that enable developers to monetize distinct sets of users based on geography, demographics and behavior types. We're proud to bring on board someone like Alex to help us identify the most appropriate partners to work with and build up profitable relationships."

The following direct payment options have been added to Offerpal's alternative payment platform in recent months:

* STi Prepaid phone cards: Using Zeus Research's patent-pending conversion system, gamers can purchase virtual currency by typing in pin numbers found on the back of pre-paid phone cards from STi Prepaid, a long-established name recognized throughout the U.S. STi sells in excess of 200 million cards each year through more than 225,000 national retail outlets.
* paysafecard: The leading online payment method in Europe, paysafecard allows users to purchase prepaid vouchers and authorize payments online by simply entering a 16-digit PIN code. Paysafecard is available at 280,000 outlets in more than 24 European countries.
* MyCard: MyCard offers several types of stored value cards such as scratch cards, thermosensitive paper and more, available in retail outlets, convenient stores and websites all throughout Asia. Furthermore, it also provides diverse micropayment methods for purchase online. MyCard was founded in 1983 and is based in Taiwan.
* Rixty: Rixty is an alternative payment platform that makes it easy for youth and adults without credit cards to convert their cash into online credits at more than 10,000 Coinstar kiosks and 10,000 convenience stores via the Rixty prepaid card. Rixty recently announced it had expanded its system to safely enable kids under the age of 13 to purchase online.
* BillMyParents: BillMyParents is a youth payment system that lets teens and tweens shop online without a credit card and gives parents the ability to easily track and control their teen's spending – while ensuring that credit card numbers and personal information are kept safe and secure. BillMyParents is a product of Socialwise, Inc. (OTCBB:SCLW.ob - News).
* ClickandBuy: ClickandBuy is a leading Internet payment service provider that enables users to conduct one-click transactions in 120 currencies throughout the world and offers 50 national and international modes of payment. Founded in 1999, ClickandBuy is a wholly-owned subsidiary of Deutsche Telekom AG.


Offerpal already works with many other direct payment providers, from PayPal and Visa/MasterCard to Zong, Boku, DaoPay, Amazon Payments, Paymo, Ultimate Game Card, PayByCash, Social Gold and more. The company recently passed its Payment Card Industry (PCI) compliance validation, meaning that it meets the fraud prevention and data security standards established by the PCI and can now process credit card transactions more efficiently. The company expects to roll out several more payment options in coming months.

Professional Skateboarder Ryan Sheckler Teams Up With BillMyParents(R) Online Teen Payment Solutions

SAN DIEGO, April 8 /PRNewswire-FirstCall/ -- BillMyParents®, the online teen payment system of Socialwise, Inc. (OTC Bulletin Board:SCLW.ob - News), is proud to announce that professional skateboarder and 2010 Nickelodeon Kids' Choice Awards Favorite Male Athlete Ryan Sheckler has signed a deal with the Company to promote its online BillMyParents® payment solution. Sheckler will be part of a major marketing initiative the Company plans to launch in late spring which will include a multitude of top action sports athletes and retailers.

The star of MTV's hit reality show "Life of Ryan," Ryan Sheckler is the skateboarding child prodigy who exploded onto the professional scene in 2003, turning pro at the tender age of 13. That year alone saw him astound the world with gold medals in street at the X Games and the Gravity Games. He also took first place overall in the Vans Triple Crown street competition. A native of San Clemente, CA, Ryan has also created The Sheckler Foundation to make a difference in the lives of children, families and communities in need, as well as injured action sports athletes. The first athlete to ever win the Dew Action Sports Tour championship 3 years in a row, Ryan continues to be an innovative and powerhouse skateboarder and international celebrity, with 1.5 million followers on Twitter alone.

"I love what BillMyParents is doing for teens and tweens," says Sheckler. "Teens need their independence, and using the BillMyParents payment systems means they can pick exactly what they want - it's very easy, and is also secure for parents. I have a close relationship with my mom, and I believe it's important for kids and their parents to talk about building good habits."

"I am excited to have Ryan endorsing and promoting the BillMyParents brand as he is a truly talented rising star," commented Jim Collas, President and CEO of BillMyParents®. "Just last week, Ryan won the Nickelodeon Kids' Choice Awards for Best Male Athlete, beating out LeBron James, Kobe Bryant, and Shawn White."

Motocross Champ Travis Pastrana on Board with Socialwise!

BillMyParents®, the online teen payment solutions division of Socialwise, Inc. (OTCBB: SCLW), announced today that professional motocross racer and four-time Rally America champion has signed an endorsement deal with the Company's online BillMyParents® payment solution. Pastrana is the latest high profile addition to the Company's major marketing program launching late spring featuring numerous top action sports athletes and retail partners.

"The BillMyParents programs are ideal for teens in today's fast paced world," says Pastrana. "I hate waiting and go for what I want, and these solutions mean teens can have that too. They can let their parents know what they want with the click of a button, and parents get peace of mind. It couldn't be easier!"

Legendary Travis Pastrana was the World Freestyle Motocross champion at 14 and has 9 X Games gold medals under his belt. Born in Maryland in 1983, he was riding a Honda one-speed by the time he was 4, and the world gaped in amazement in 2006 when he became the first person to land a double-back flip on a motorcycle. Pastrana is also the reigning Rally America Series champion, a title he's won four years in a row. The popular MTV show "Nitro Circus" follows him and fellow daredevils around the world as they push the limits with dirt bikes, skydiving stunts, bobsleds, monster trucks and more. Travis is also a big supporter of Road 2 Recovery, a non-profit charity foundation that helps professional motocross/supercross racers who sustain career-ending injures with financial support.

"We're very excited to have Travis on board with BillMyParents. He is truly an icon in the action sports and racing worlds, and has a tremendous number of devoted fans," comments Jim Collas, President and CEO of Socialwise, Inc. "We knew Travis would be a great endorser of our BillMyParents payment solutions because he really connects with people of all ages and backgrounds."

BillMyParents® provides innovative and simple payment solutions for teens and their parents. When using the Supervised Shopping™ program, teens safely shop online on partner retail sites and click on the BillMyParents® payment button that appears next to each product. Selections are sent right away by email or text to parents, who can easily manage and approve requests. The system ensures security of private financial data, and parents can also choose to deposit allowance-like spending amounts in advance for teens' use.

General Markets looking bleak

I follow a lot of commentary about the "general Markets" because when they are slipping people frown away from higher risk investments...below is an except from a newsletter I subscribe to from one of the most accurate market readers around and the best I have followed over the last 12 years....

"It looks to me that the stock market will be testing long-term support for the major indexes at the 200-day moving averages. For the S&P 500 index this support is at 1043, which most probably will be tested by the end of this month.

What makes this market dangerous is that the Fed must drive commodity prices down as fast as possible before they have chance to rise during the spring and summer months. This is why the money supply is plunging which is helping to cause stock prices to fall. As the technical underpinnings continue to weaken, the risk for a sharp decline in stock prices is all the more real.

Caution: We Are Now About to Enter the Bust Cycle

President Barack Obama said in his State of the Union address that the “worst of the economic storm has passed, but the devastation remains.” What the president didn’t say is that financial storms happen with regularity in a secular bear market, as we’ve seen over the past decade.

Economic growth is not linear; it’s cyclical in nature and there are economic cycles. Recoveries die and new economic storms follow, in boom/bust cycles. This recovery is much different than past recoveries in that the consumer is not really participating.

More than 70% of the gross domestic product (GDP) in previous recoveries has come from consumer spending. But this time it’s different, as we are surely not seeing that happen now.

In the 4Q09 GDP, consumer spending contracted from the previous quarter. In spite of that contraction, GDP rose sharply because the government spent money like a drunken sailor on payday. There was a sharp increase in business inventories, adding significantly to the GDP number, which was the result of businesses anticipating an increase in demand by consumers.

Last, the Fed’s strategy of undercutting the dollar gives a boost to U.S. exports, which also pumps up the GDP. That trick is really a game of smoke and mirrors, because pushing down the dollar does nothing to whet the appetite for goods and services by the consumer.

As long as unemployment hovers around 10%, consumer demand for goods and services will be anemic. Without consumer demand, businesses will cease stockpiling inventory and eventually cut back, causing a hit to GDP.

Keep your eye on a rising dollar. Our GDP is now much stronger than Europe’s GDP. But as the U.S. dollar strengthens, our exports will no longer be attractive to European markets, and that, too, will cause a further hit to GDP. Government spending, which has directly given money to banks so they can support the stock market, is coming to an end. As President Obama wants the banks to pay for their past misdeeds, investment banks are starting to sell stocks into rising markets and trying to further add liquidity to their balance sheets.

All the economic reports I’m reading lead me to one conclusion: we are now about to enter the bust cycle. And that is why I am so focused on risk.

R-I-S-K is not a dirty four-letter word

Risk is defined as the effect of uncertainty on objectives. My objective is to build wealth and to keep it. In order to do that, we need a plan to manage risk so that we can protect ourselves from the coming financial storm and try to profit from it. Risk management can be considered the identification, assessment, and prioritization of risks followed by the coordinated application to minimize, monitor, and control the probability and/or impact of unfortunate events or to maximize the realization of opportunities.

If you are blind to these risks, you can’t manage them, and this is why greed is so damaging – because we ignore risks and the laws of probability, and that’s when you start to really lose money. The first step is to identify risk, and in addition to the risk I see in the stock market, the energy market is also bubbling over with potential pitfalls.

At the end of December, a number of risk factors in my technical models were flashing. They were indicating that the month of January was going to be a tough month for energy. In the early part of January, crude oil prices traded at $84 a barrel. If we have a repeat of surging oil prices this coming spring, it will really destroy our economy. It will act as a weight, just as the housing market dealt a blow to the economy in 2008.

When crude oil prices reached $84 a barrel in January, a chain of events was set in motion. It started with the Fed talking up the dollar, followed by a series of speeches to the markets that interest rates might need to be raised sooner rather than later. This had the effect of driving down commodity prices. In addition, the Fed sent a letter to the banking community stressing interest rate risk management in the event the Fed is forced to raise interest rates in the near future.

In late December, the Fed began aggressively cutting the money supply in order to undercut oil prices. This tells me that corporate earnings for the first quarter of 2010 will not look pretty. As a consequence, the U.S. dollar reversed its decline and is now trending higher. Crude oil prices have also retreated more than $10 a barrel since trading at $84 in the beginning of the year. Gold is down more than $120 an ounce, and the S&P 500 is off close to 6.5% from its 2010 high.

China is keenly aware of the risks of soaring commodity prices and the impact of increases on food. The government has informed Chinese banks that it wants them to restrict lending in the next few months. The iShares MSCI Emerging Markets Index (EEM) fell 11.2% in 13 trading days in January.

I have been sharing with you since last September these risks should crude oil prices begin to decline. If crude oil were allowed to continue to rise, the table would be set for a very possible double-dip recession. That is why the president’s economic team is burning the midnight oil while trying to find a way out of this mess.

As a sector, the financial sector is lagging most sectors and is clearly breaking down and testing its 200-day moving averages. A breach below this long-term support could lead us into the next bust cycle.

Be Prepared: The Technical Indicators Are Deteriorating

At the end of December, a number of technical risks presented themselves. The charts showed that bullish sentiment of investment advisory newsletters had reached extreme bullish levels. As a contrary indicator, this was a clear warning signal that a sharp correction was soon to follow. Whenever the herd is on one side of the market, the predators begin to sell into the bullish enthusiasm.

Over the past few weeks, I have pointed out the MACD (moving averages convergence divergence) indicators were maxed out and beginning to roll over. We see this on both an intermediate-term and a long-term basis. The monthly stochastic is extremely overbought, suggesting market risk is extremely high right now.

In January, these indicators continued to deteriorate, with all the major indexes now trending below their 50-day moving averages. As long as the 50-day moving averages are descending, market risk is increasing as the technical underpinnings of the market break down. This was not a great way to start the year.

We have to accept the situation – that it is the Fed’s and the government’s job to spin the economy in the most favorable light possible and continue to bang the gong and tell us that the economy is on the road to recovery.

It is something we all want, but keep this in the back of your mind: the government is a master at psychology and motivation, and in an economy like this, psychology is a big part of getting people to feel better about things.

Yet, the inescapable fact is, we have seen an enormous loss of wealth over the past decade and especially the past couple of years, and regardless of the spin, this wealth is not replaceable. People have considerably less wealth, and their access to borrowing has been cut off. That is one of the main reasons why big banks are charging 30% for credit cards loans and have ceased lending money. They have a bird’s-eye view of the economy and see that it’s in dire straits regardless of what the GDP numbers are.

For those of you who believe cash is trash, I strongly disagree. I would rather make nothing on money than lose 10% of it in a bad investment. My goal is to minimize, monitor, and control the probability and/or impact of unfortunate events damaging our portfolios. If I do that successfully, at the start of the next boom cycle we will have cash to take advantage of the bargains the market will give us.

From my perspective, shorting the stock market should only be considered in a bear market, and the technical conditions have to warrant such a situation. My technical indicators are telling me that we are not in a bear market just yet. But as soon as my indicators give me the signal, there are several stocks and ETFs that are ripe to be shorted.

Are You Prepared for the Bear Market Ahead?

It’s imperative that you’re prepared for a moderate – or even significant – market pull-back that could begin at any time.

The technical indicators have continued to deteriorate over the first six weeks of 2010…and there is significant risk in the market right now."

News Coming

Been hearing from a few of you lately....Sorry for the delay. Things have been nuts.

There is actually a lot to talk about (all very good) regarding BillMyParents, including the launch of the debit card. Soft launch of the debit card is set to hit prior to end of the year, maybe sooner. We also will be seeing quite a few celebrity endorsments. Not to mention, despite liquidating (due to a court order regarding a divorce) of one of the top shareholders, many others have been buying.

I will try to update in the next week with some more specific news....

BillMyParents Goes Live with gPotato and Artix Entertainment

San Diego, CA – August 16, 2009 – Socialwise, Inc. (OTCBB:SCLW) today announced that its BillMyParents youth payment system has launched with the first two of five previously announced youth gaming partners. BillMyParents is going live with Artix Entertainment’s AdventureQuest Worlds (www.AQ.com), one of several web-based games owned by Artix Entertainment, and Gala-Net’s gPotato online games portal (www.gpotato.com). This marks the first time BillMyParents is available on third party sites. BillMyParents also expects to launch with Habbo, Outspark, and other yet-to-be announced online youth gaming sites in the near future. This launch with two significant youth gaming partners marks the beginning of the company’s multi-phased plan to quickly build a user base across multiple markets and establish BillMyParents as the leading youth payment system.

BillMyParents is now available to millions of gamers who play on Gala-Net’s gPotato online games and Artix Entertainment’s AdventureQuest Worlds. Teens and tweens can use BillMyParents to purchase virtual goods and virtual currency for game play upgrades inside Gala-Net’s gPotato online game portal and Artix Entertainment’s AdventureQuest Worlds’ virtual game worlds. The innovative BillMyParents payment system makes purchasing items an extremely simple process. Once a player has made their selection, BillMyParents sends an email notification to their parent, requesting approval of the purchase and completion of the transaction. The parent then has the option to deny their child’s request or to use a built-in chat function to ask for more information before making a final decision. To complete the transaction, the parent simply enters their payment information. The whole process can be completed within minutes without the teen ever gaining access to sensitive credit card details or other personal information.

“This aggressive drive into the youth gaming market is the beginning of our multi-phase plan to quickly build a user base, which can be leveraged across multiple markets,” commented Jim Collas, CEO of Socialwise. “Launching with Gala-Net and Artix Entertainment is a key step that builds on our long term strategy to become the most convenient and secure payment option for youth oriented online games. This is the first of several integrations planned in the coming weeks with other partners that will expose BillMyParents to a large number of teens and tweens in the online gaming space.”

SCLW-NEWS-Buzz was right!

August 20, 2009 2:50 AM ET

Socialwise, Inc. Adds Action Sports Industry Veteran to Drive BillMyParents into the Multi-Billion Dollar Teen Action Sports Market

Aug 19, 2009 10:50:06 (ET)

SAN DIEGO, Aug 19, 2009 (BUSINESS WIRE) -- Socialwise, Inc. (SCLW, Trade ) today announced the appointment of Mark Miller, former Senior Vice President of DC Shoes and action sports industry veteran to the company's Board of Advisors. In this role, he will use his extensive network of online merchants, Actions Sports athletes, and industry connections to position BillMyParents as a leading youth payment system. He will be in charge of securing partnerships with leading online action sports brands and retailers as well as building our user base of young consumers and their parents.

"We are excited about being able to leverage Mark's extensive experience and connections in the action sports world," noted Jim Collas, CEO of Socialwise. "His ties to top merchants and athletes will be invaluable to our effort to fuel our momentum in this area."

"During my years selling youth oriented products online, a persistent impediment to faster growth was young people's lack of a viable payment method for purchases," commented Mark Miller. "I was instantly impressed by the potential of BillMyParents to overcome this constraint and actually increase parents' ability to monitor and control young people's purchases online."

Mark Miller has over twenty-five years experience working in Action Sports and youth culture businesses. As a senior executive, Mark focused on developing and executing go-to-market strategies for consumer goods companies. Most recently, he served as the Senior Vice President and General Manager of DC Shoes, a subsidiary of Quiksilver Inc., where he managed the Americas' division including strategic partnerships with both retail and online distribution channels. Prior to that, Miller founded and operated a consulting firm under his own name that managed global marketing campaigns and strategic partnerships for a portfolio of clients focused in the youth market and the Action Sports industry. Mark has also held executive roles with K2 Inc., and Yoshida Recreation Products LLC.

Markets Rally... SCLW next?

We are seeing a strong rally continue on the general markets signaling this might not be a false Bull Run or a dead cat bounce, but an actual sustainable bull market. Jury is still out if this will hold, but indicators are that it will. Summers generally signal sell offs, yet we continue to see gains meaning people and institutions see many opportunities that are deemed to good to pass on.
What this means for the penny stocks is that people are ready to take risks again. SCLW has held its ground despite some opportunities for decline. With confidence back, its not going to take much to get people to chase the stock again. Look for some good news we know is coming to start this next push....
Let me know if you have any questions.

SCLW Press Release. Gala-net

Gala-Net Joins Socialwise’s Roster Of Online Gaming Partners –
BillMyParents To Be Available To 20 Million Registered Gamers

Unique Payment System to Enable Teen and Tween Players to Purchase Premium Memberships and gPotato Virtual Currency without the Need for a Credit Card

San Diego, CA – July 20, 2009 – Socialwise, Inc. (OTCBB: SCLW) and Gala-Net, Inc. today announced that the BillMyParents payment system will be offered as a payment option on the gPotato gaming portal. By adding gPotato’s six online game titles and nearly five million registered users to existing BillMyParents online gaming partners, Socialwise will soon have the ability to provide payment services to more than 20 million registered gamers.

Through the gPotato partnership, teens and tweens will be able to use BillMyParents to purchase accessories and virtual currency for game play upgrades within gPotato’s virtual world. Once a player has made his selections, BillMyParents sends a notification to a parent or other adult guardian via email or mobile text. Parents can approve or deny each request individually or as a group, and communicate directly with the child through the BillMyParents chat option. To complete the transaction, the parent simply enters his or her credit card information. The entire BillMyParents process can be completed within minutes, and prevents the child from gaining access to sensitive credit card information or other personal details.

"As we integrate new partners over the next few months, we will gain exposure to a rapidly growing number of gamers currently totaling roughly 20 million registered users," noted Jim Collas, CEO of Socialwise, "and we believe online gaming represents a significant opportunity to expose BillMyParents to our target teen and tween demographics."

About BillMyParents
BillMyParents is the innovative new youth payment system that lets teens and tweens shop online without a credit card, while giving parents the ability to easily track and control their teen’s spending. With a simple email request and approval system, BillMyParents provides the independence young people crave and the control over spending that parents want - while ensuring that credit card numbers and personal information are kept safe and secure. BillMyParents is currently available as a payment system in select online retail environments, in addition to social network, virtual world and online gaming Web sites. Partners in the gaming world include Artix Entertainment, Habbo, and Outspark. BillMyParents is a division of Socialwise, Inc. For more information: www.billmyparents.com.

About Gala-Net
Founded in 2004, Gala-Net, Inc. together with its European subsidiary, Gala Networks Europe, Gala-Net is a leader in the thriving free-to-play online games in the western market. Headquartered in Sunnyvale, Calif., Gala-Net's diverse service portfolio includes Flyff, Rappelz, Tales Runner, Luna, Aika, and Allods. Through the games portal (http://www.gpotato.com) gamers can play any of Gala-Net's games for free, as well as buy in-game currency and virtual items for any of its games.

About Socialwise, Inc.
Socialwise™, Inc. (OTCBB:SCLW) is headquartered in San Diego, CA. For more information: www.socialwise.com.

Certain statements contained in this press release are "forward-looking statements" within the meaning of federal securities laws, including, without limitation, anything relating or referring to future financial results and planned business activities. Such statements are inherently subject to risks and uncertainties, which include, without limitation, those in Company reports filed with the SEC. The Company can give no assurance that such expectations will prove correct. Future events and actual results could differ materially from those statements.

Notes from Conference Call

Great call with Jim Collas. Im sure many of you learned quite a bit. There was some updates as well.

Heres a breakdown of what was discussed today at the conference call today.

-Currently a market for untapped online teen market is a $40 Billion Market
-Acute market developing for Teens that many companies are currently pushing for.
-BMP (Bill My Parents) is not only extremely simple and safe to use, but it gives parents full control.
- Website is mostly focus on parents "Its not a problem for parents, but a solution"
- Jim believes in high quality consumer experience. www.BillmyParents.com is up to those standards.

Whats in it for the partners of BMP?
- Easy to implement
- No shopping cart integration
- Extreme increase in teen traffic

Building momentum for product, to become dominant teen payment system.

Launched May 09 to much acclaim

- Have already signed major partners. Working With Artix, Zynga Habbo and Outspark that each have millions of users, to get the BMP product up on their sites
- In discussions with all the major online sites such as Facebook and Myspace for teen payment systems.
- Online retailers will follow.
- substantive revenues by Dec 2009
-Currently engaged with over 15 major potential partners.
-BMP is using Facebook and Myspace to go viral
-Most popular application (in users) generally will have over 25 Million users, BMP will be using top application developers to integrate the BMP platform to lock in users. BMP will be using many application developers, not just one or two to increase traffic.

BMP Debit Card
- Can be requested by parents
- Parents monitors transactions
- Can be used anywhere
- Every time the kid uses it parents get an email
- parents can instantly freeze or unfreeze the account (No one else offers this)
- only need 35k users to be cash flow positive (just with debit card)

Projected milestones:
Next 90 Days:
Announce new youth gaming sites
- 3 or 4 new exciting partners
- Announce launches
-Launch Debit card program
- Announce user base

Beyond 90 days to 6 months.
- generate substantial revenue
- sign up marquee partners


Plan is to become the dominant youth payment system. Can do this on a very small budget due to the enormous amount of interest from major companies.

Company could become an acquisition target, because so many companies are looking for payment systems.

Also plan to transition into a major (stock)market in the next 12-18 months.

This wraps up the breakdown, hope this helps. If you have anything to add let me know.

After a slow month, some more great News

A slow and uneventful month as we hold the line at the .65-.75 support level. Not A whole lot going on with the stock. However I did want to update everyone while I had the chance on some recent developments on the company.

Recently Jim Collas stopped by at a small private function; without shareholders to impress, that I was attending. Speaking and listening to him only confirmed my suspicion that the company is in the perfect position despite what we see in the stock price. Jim remains extremely optimistic despite the lull in the stock because he knows what is happening behind the scenes with regards to the company.
Im sure many of you understand that on the small caps (penny stocks), share price has little to do with how the company is performing. In most cases a run up in share price can make one think that the company is doing well, when the company hasnt done anything (in some cases the only thing they have done is fraudulent). What we saw last summer with SCLW was true in the regard that the company hadnt launched its product, yet the stock went from .70 to $2.75+. They hadnt done anything. It was running on anticipation OF Anticipation! Others run on a "PUMP AND DUMP". (If your not familiar with this term, please click on it.) Just to reiterate if SCLW was a pump and dump....we would be sitting under .05 right now....

However this also can be true in the opposite sense, as we have this summer where the company is hitting major accomplishments, yet the stock hasnt caught up. This has to do with many factors, one of the main ones being investors unwillingness to take as many chances in this environment. (The media/Wall Street is telling us how great the stocks are doing, knowing that most of the fundamentals havent changed for the better. Its a false rally. Possibly a "Dead cat bounce" type move.) This would be true of Hedge funds as well. They would rather make another "hot play" than sit on a stock that hasnt started a run yet.

Talking with Jim I got a feeling that something major is just on the horizon. One of the main underwriters was also at the gathering , whom I know, was saying the same thing about the share price, that positive things are happening. I think as the company begins to perform , we are going to see the strong buying come on in force that has been waiting for the right moment. This will spur the run as regular investors clamor in to avoid "missing out". Of Course the short sellers will also show betting on a drop, but that is to be expected....its still a "market". Think of it as Poker game. Big buying doesnt want to show its hand to early and risk loosing ground (on the stock price). As far as time line that I can gather... it still remains end of the year. But I had one individual tell me "it could happen at any time".
Jim is careful not to "cross the line" in information he disseminates however from the buzz I hear outside the company is that big retailers are lining up VERY excited about what BMP offers.
It is my understanding is that the only "hold up" when it comes to major retailers like Amazon signing, is that they want to know the bugs are worked out before going "all in" with time and money. This will open the door to smaller retailers testing the waters (so to speak) as the first full service line comes on. This is happening now with the likes of Artix (not really a small company). I think we will encounter a snow ball effect when this starts to roll. Once one major name comes on, you will see many others lining up. Keep in mind, the company is finally making money (small amount, but now producing revenue).

Every company that has seen how BMP works has been excited. No one has thought it was a waste or wouldnt work! Sure there has been a few negative blogs, but if you read the complaints (especially from parents) they have little idea on how this works and will work for them. They still think it just "allows kids to bombard parents with request".... this could happen if they raise spoiled kids and dont use the resources and parameters put in place, but couldnt be farther from the truth. Once parents understand how to use it, it becomes a tool they can use....even if it is only to let junior pick a gift out for his father on his fathers birthday using a limited budget. I could not tell you how many people I heard 5-6 years ago saying they would "NEVER allow their kids to have a cell phone"...yet due to convenience of calling home or a parent checking in with their teenager, they have changed their mind and now love it. I guarantee this will happen with BMP for the small amount of doubters (who raise the biggest stink.) I have yet to hear a parent, investor, or friend doubt that this is a GREAT product when they fully understand how it works. Not one.

Hope everyone had a great 4th...as things pick up, so will my blog posts. Again let me know if you have any questions.

SCLW- A new support Level being established

Although I usually avoid the technical side of stocks, there is a validity of how they show trends. Nearly any stock that makes a large rise in a short time will experience a pull back and re establish a ground floor (or support level). Lately selling off has far outweighed buying as profit takers take money off the table.

After a 400% run in 4 weeks, you expect a pull back. Right now the support is sitting right in the lower .60's which is where we have been sitting. Sure, its better than the old support of .30, but im sure all of you would agree it would have been better to be sitting around .85 support that it held for a little while. With no real resistance at the time till nearly $1.20, I think many were hoping we could gain support just under $1 and hold.

What I think everyone is holding their breath for is the inevitable run once the street (or regular investors) get wind of the company and start to come in. Majority of the support remains within a group.

It wont take much outside buying to send this flying, but I dont think any of us will see it coming. It could be from just one article or press release that causes it. But it MUST be maintained with momentum, or you can have another drop.

The refreshing part is that the company has never "pumped" the stock. This company has refused to push for false runs. No mass emails, no IR firms sending out mailers and faxes. While this generates liquidity, it also will cause the stock to drop massively afterwords. When you have a legit company, you dont need to resort to this. The right way is to continue to get the company out there in the publics eye for its products not its stock potencial.

Right now we have some resistance below a $1 but not much. It wont take much to get us back over a $1.

Hopefully we end the week up, not another down week.

More Online and published Talk

Quite a lot is being said about Bill My Parents. Just by googling "Bill My Parents" you will come up with thousands of hits now. Good and bad people are talking....but they are talking.

Here was another print/ Online article regarding BMP that the writer weighs both sides of what his paper has been hearing. From the Joplin Globe:

Published May 27, 2009 06:47 pm - A new Web site is aimed at capturing some of the $40 billion that American teens and tweens annually spend on purchases that they research online but purchase offline because they don’t have credit cards to complete the online transaction.

Mat Anderson: You can just "Bill My Parents"

In case your teen hasn’t already brought it to your attention, a new Web site called BillMyParents.com has just launched.

It is aimed at capturing some of the $40 billion that American teens and tweens annually spend on purchases that they research online but purchase offline because they don’t have credit cards to complete the online transaction.

BillMyParents.com — the mere name of this site makes some parents uneasy — allows your teen to browse Amazon.com (and soon several other sites), and when he encounters an item he can’t live without, he can click the “BillMyParents” icon and enter a begging message that will likely include phrases such as “Please, please, please,” “I really need this because …” and “If you buy this for me I will …”

From there an e-mail will be sent directly to you allowing you to review the item(s) that your teen desires, leaving you to choose to either deny the request or complete the transaction by entering your credit-card information.

Like any new technological innovation, especially one that concerns young people and money, this new site has received both high praise and sharp criticism. Supporters of this site point out that it is a great tool for parents, as it allows them the final say on what their teen spends money on, and it also provides more security than letting teens borrow a parent’s credit card for purchases. Additionally, because the site utilizes Amazon.com, teens can be encouraged toward thriftiness by shopping around for the lowest price on an item. In many cases, teens may even opt to buy a used item rather than a new one.

However, there are drawbacks to the use of this site. While allowing teens and tweens to shop online in this way does streamline the process of buying things for your kids, the purely digital nature of it diminishes the ability for parents to use each of their child’s requests to sit down and talk about responsible shopping, spending and saving.

Additionally, this system does nothing to show young people how the real world works. I think there is a lot to be said for a young person saving her money to buy something she wants and then going through the actual process of handing over cash in exchange for the item. With the BillMyParents system, young people are excluded from the actual transaction and getting what they desire is reduced to a few mouse clicks and a pleading e-mail to Mom or Dad.

This absence of classic financial transactions in the lives of our youth is also a major contributor to rampant teen credit-card debt in our country. Many young people — and adults — don’t understand the consequences of their decisions and merely think of how easy it is to swipe a plastic card or enter some numbers on a Web site to get what they want. Unfortunately, it is this same culture of living beyond our means, not properly weighing our wants and needs and pushing the responsibility of footing the bill to someone else that has led to our nation’s current financial predicament.

Nonetheless, I’m not saying that BillMyParents.com is going to lead to the financial ruin of the next generation. I believe that this site will become extremely successful and is a useful way to simplify online shopping for some families.

But when new technology like this is being used by young people, it is important for parents to consider what messages it is sending to their kids and what teachable opportunities may be missed by transforming nagging trips to the mall to an inbox of purchase requests.

Here they come CNBC.com article

Hitting Up Mom & Dad For Cash Is Just A Click Away

Published: Tuesday, 19 May 2009 | 4:03 PM ET

By: Christina Cheddar Berk
News Editor

As if kids needed another way to hit up their parents for cash, a San Diego company is launching a new payment service called "BillMyParents" to make it easier for kids to shop online.

Source: billmyparents.com

Socialwise [SCLW 0.93 -0.08 (-7.92%) ] CEO James Collas expects the service to appeal to kids as young as 10 years old, straight through to twentysomethings who are still tied to their parents' purse strings.

The system works through buttons next to items posted on online shopping sites. When selected, they allow kids to email or text a note to their parents about what they would like to buy. Parents then review the request and can approve or reject it. The system's designed to let parents keep their credit card information to themselves.

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According to Harris Interactive, kids spend about $132 billion each year, and about $40 billion of that spending is researched online, but purchased at stores. Why? Teens often don't have access to a credit card to buy the products online themselves.

If successful, BillMyParents could shift a bigger chunk of that cash to e-commerce sites.

Still, the launch does face a few hurdles. First, it comes at a time when teen spending is being crimped by recession-pinched parents and a weak market for teen jobs. The effects of the softer spending have been especially apparent at teen apparel retailers such as Abercrombie & Fitch [ANF 26.55 0.48 (+1.84%) ] .

Also, the company has yet to sign up any retail partners, but it is operating a shopping site powered by Amazon.com [AMZN 77.87 1.92 (+2.53%) ] through that merchant's associate program. The BillMyParents site essentially opens the door to the entire inventory on Amazon and gives potential retail partners a feel for how the program works.

The company does have a foothold in the world of online social networking and gaming. SocialWise has struck a deal with Artix Entertainment, Habbo, Outspark and RockYou!, among others. The partnership would make it easier for kids who visit those sites purchase virtual goods as part of the online game or social network experience.

As for Socialwise, the company's business model works a lot like Paypal. It gets a commission of anywhere from 3 to 5 percent of the purchase price for each transaction. However, parents also pay a 50-cent fee for every transaction they approve.

"What we're really pitching is the safety and security of the site as a service for the parents," says Collas, who was the former chief technology officer of Gateway.

"This is going to give parents a controlled way to scrutinize their children's spending," Collas says.

But will it pass the Mom test? Granted there is an advantage in finding a way to avoid passing Junior the plastic.

Oh, and what about "BillMyHusband" or "BillMyWife"? Collas has registered many other "BillMy" domains but he doesn't have any plans to veer from the youth demographic at this time. However, the company may expand into offering a debit card that can automatically be loaded with a weekly allowance.

SCLW- Penny Stocks - Reuters Blog

May 18th, 2009

“Don’t look at me, I’m just a kid — bill my parents!”

Posted by: Alexandria Sage

Tags: Shop Talk, Amazon.com, artix, billmyparents, google checkout, payments, paypal, teens, video games

Ah, youth. How free and easy it all seems. Especially after the launch of a new payments system, BillMyParents.

The system geared to teens and tweens — who ideally have good relationships with their hopefully indulgent parents — allows parents to approve purchases coveted by their kids and foot the bill.

The idea of the youth payment system is to capture some of the $40 billion spent by kids who end up shopping at traditional retailers only because without a credit card, they have no way to pay for stuff online, says the company’s chief executive, Jim Collas. Collas is the former chief technology officer for PC maker Gateway.

Whereas consumers have a host of options in online payments systems, including eBay’s PayPal, Google Checkout and Checkout with Amazon, Collas says his system is the most convenient for parents and teens.

Parents pay 50 cents per total transaction after they approve and pay for their kids’ shopping lists that are automatically sent to them via email or text, and merchants pay a percentage to BillMyParents.

Currently, BillMyParents is powered by Amazon.com with Amazon’s shopping cart integrated into the website. Kids can access the entire inventory of the global online retailer.

BillMyParents, which is owned by Socialwise Inc, plans to have up to a dozen more retailers participating within nine months and the ultimate goal is for the BillMyParents payment button to be integrated into the online retailers’ websites.

Besides the retail angle, Collas sees a huge opportunity in the gaming world, which allows kids to buy virtual goods online — a market estimated at over $1 billion — as they play their favorite video games.