The formula you found with ISO included is wrong.
The correct formula is any one of the following equivalent formulas:
$$\begin{align}
\text{Guide Number} &= \text{Distance}\times \text{Aperture} \\
\text{Distance} &= \frac{\text{Guide Number}}{\text{Aperture}} \\
\text{Aperture} &= \frac{\text{Guide Number}}{\text{Distance}}
\end{align}$$
As you would know, Guide Number is given for ISO 100 always. We will deal with other ISOs a little later.
As a photographer, my first worry would be how far my flash light will be able to fire. If my flash has a rated GN of 40 metres, for ease of calculation we can know that at 10 metres I would need an aperture of f/4. GN/Distance = Aperture. If my subject is at 5 metres, I can shoot at an aperture of f/8 (40/5 = 8).
I will make a slight digression so that Inverse Square Law is understood well. Without understanding this, talking about ISO will go over your head. I am a radar operator and I am forced to deal with Inverse Square Law. My radar can pick an aircraft up to 100 km by radiating energy of 100 kW power. If I want this aircraft to be picked up by my radar at 200 km, I have to feed the radar with 400 kW power. (Four times power to get twice the range). This is physics and we have to accept it. If I provide the radar with double the power (i.e., 200 kW), the aircraft will be picked up until 140 km only (1.4 times the distance with doubling the power).
With ISOs too, its just like boosting the power of a radar. At ISO 100 our GN is 40 metres, at ISO 200 our GN will be (40 x 1.4 = 56 metres), at ISO 400 the GN will be 80 metres, at ISO 800 the GN Will be (80 x 1.4 =112 metres) and so on and so forth.
We know about the aperture numbers. They progress like these f/1, f/1.4, f/2, f/2.8, f/4, f/5.6, f/8, f/11, f/16, f/22, f/32. It's interesting to note that every alternate number is doubling.
To understand more about Guide Number, Aperture values and other confusing terms in photography, you can check this blog of mine. http://photographypoints.blogspot.in/