EX-99.2 3 v470118_ex99-2.htm EXHIBIT 99.2

 

Exhibit 99.2

 

Unaudited Pro Forma Condensed Consolidated Financial Information

 

The following unaudited pro forma condensed consolidated financial information presents the historical balance sheet of Wealth Generators, LLC (“WG”) as of March 31, 2017 giving pro forma effect to the reverse merger that was effective after the close of business on March 31, 2017 of WG with Investview, Inc. (“INVU”). The statement of operations has been presented as if the reverse merger had occurred on April 1, 2016.

 

The historical financial information has been derived from the audited financial statements of Wealth Generators and the unaudited and unreviewed financial statements of INVU. The financial information has been adjusted to give pro forma effect to events that are directly attributable to the reverse merger, are factually supportable and, in the case of the pro forma statements of operations, have a recurring impact. The pro forma adjustments are preliminary, is for informational purposes only, and the unaudited pro forma combined financial information is not necessarily indicative of the financial position or results of operations that may have actually occurred had the reverse merger taken place on the dates noted, or the future financial position or operating results of the combined company. The pro forma adjustments are based upon available information and assumptions that we believe are reasonable.

 

The transaction was accounted for as a reverse acquisition using the acquisition method of accounting in accordance with the FASB (ASC 805). WG is the acquirer solely for financial accounting purposes. For purposes of the pro forma financial information contained herein, WG’s purchase price to acquire INVU was estimated based on an estimated value per share of INVU of $0.0044. The allocation of the purchase price is preliminary and is dependent upon certain procedures that have not been finalized. The actual amounts recorded as of the completion of the transaction may differ materially from the information presented in the unaudited pro forma condensed combined financial statements. The unaudited pro forma condensed consolidated financial statements constitute forward-looking information and are subject to certain risks and uncertainties that could cause actual results to differ materially from those anticipated. 

 

 

 

  

INVESTVIEW, INC.

PRO FORMA CONSOLIDATED BALANCE SHEET

AS OF MARCH 31, 2017

(Unaudited)

 

   Wealth       Pro Forma   Pro Forma 
   Generators, LLC   Investview, Inc.   Adjustments   Consolidated 
                 
ASSETS                    
Current assets:                    
Cash and cash equivalents  $1,616   $3,550   $-   $5,165 
Receivables   444,610    150,000     (162,430)    [1]  432,179 
Short term advances   10,000    -    -    10,000 
 Total current assets   456,225    153,550    (162,430)   447,344 
                     
Fixed assets, net   10,235    -    -    10,235 
                     
Other assets:                    
Deposits   6,000    -    -    6,000 
Goodwill              1,101,298  [3]    
    -    -     (1,101,298)[4]  - 
 Total other assets   6,000    -    -    6,000 
                     
Total assets  $472,461   $153,550   $(162,430)  $463,580 
                     
LIABILITIES AND STOCKHOLDERS' DEFICIT                    
Current liabilities:                    
Accounts payable and accrued liabilities  $1,370,972   $410,487   $  (162,430)[1] $1,373,472 
               (91,500 )[2]    
               (154,057)[4]    
Deferred revenue   433,298    -    -    433,298 
Related party payables   805,895    127,199     (127,199 )[4]  805,895 
Settlement payable   -    344,392     (344,392 )[2]  - 
Debt   2,093,745    73,011     (46,696)[2]  2,102,476 
               (17,583)[4]    
Current liabilities of discontinued operations   -    120,300     (120,300)[4]  - 
Derivative liabiilty, short term portion   -    38,157     (38,157) [2]  -
 Total current liabilities   4,703,909    1,113,546    (1,102,315)   4,715,140 
                     
 Long term liabilities   -    -    -    - 
                     
Total liabilities   4,703,909    1,113,546    (1,102,315)   4,715,140 
                     
STOCKHOLDERS' DEFICIT                    
Preferred stock   -    -    -    - 
Common stock   -    125,889     24,576  [2]  1,509,136 
               1,358,671  [3]    
Additional paid in capital   -    97,658,268     83,558  [2]  (1,251,112)
               (98,992,938 )[3]    
Treasury stock   -    (8,589)   -    (8,589)
Members' deficit   (4,231,449)   -    4,231,449 [5]    
Accumulated deficit              412,612  [2]    
               98,735,565 [3]    
              (682,159 )[4]    
    -  (98,735,565)  (4,231,449) [5]  (4,500,996)
 Total stockholders' deficit   (4,231,449)   (959,996)   939,884    (4,251,561)
                     
Total liabilities and stockholders' deficit  $472,461   $153,550   $(162,430)  $463,580 

 

 

 

 

INVESTVIEW, INC.

PRO FORMA CONSOLIDATED STATEMENT OF OPERATIONS

FOR THE YEAR ENDING MARCH 31, 2017

(Unaudited)

 

   Wealth       Pro Forma     Pro Forma 
   Generators, LLC   Investview, Inc.   Adjustments     Consolidated 
                   
Revenue, net  $12,872,947   $145,838   $(145,838) [4]  $12,872,947 
                       
Operating costs and expenses:                      
Cost of sales   862,849    3,000    (3,000) [4]   862,849 
Commissions   9,412,655    -    -      9,412,655 
Selling and marketing   500,032    -    -      500,032 
Salary and related   1,918,199    -    -      1,918,199 
Professional fees   917,308    -    -      917,308 
General and administrative   1,199,564    1,488,240    (1,343,764) [4]   1,344,041 
  Total operating costs and expenses   14,810,607    1,491,240    (1,346,763)     14,955,084 
                       
Net loss from operations   (1,937,660)   (1,345,402)   1,200,925      (2,082,137)
                       
Other income (expense):                      
Interest expense, related parties   (274,057)   -    -      (274,057)
Interest expense   (205,327)   (5,431)   -      (210,758)
Other income (expense)   (6,120)   -    -      (6,120)
Gain (loss) on change in fair value of derivative liabilities   -    97,057    -      97,057 
Gain (loss) on debt extinguishment   -    3,140,000    412,612  [2]   3,552,612 
  Total other income (expense)   (485,504)   3,231,626    412,612      3,158,733 
                       
Loss from operations before taxes   (2,423,164)   1,886,223    1,613,537      1,076,596 
                       
Tax expense   (4,039)   -    -      (4,039)
                       
Net loss  $(2,427,203)  $1,886,223   $1,613,537     $1,072,558 

 

 

 

 

  

[1]This entry eliminates the intercompany account balances

 

[2]In conjunction with the Acquisition, INVU entered into an assignment and assumption agreement wherein they issued 24,914,348 shares of their common stock to Alpha Pro Asset Management Group, LLC ("Alpha Pro"), an entity affiliated with the prior members of management, in exchange for Alpha Pro's assumption of $482,588 worth of liabilities. This entry records the issuance of shares, the extinguishment of debt, and the gain on the transaction. One of the notes assumed by Alpha Pro had a derivative liability recorded on the INVU’s books for $31,157, therefore that liability was also extinguished with the execution of the agreement.

 

[3]INVU issued 1,358,670,942 shares of their common stock to the members of Wealth Generators, LLC in exchange for 100% of the outstanding securities of WG. This entry records the issuance of shares to ensure the capital accounts reflects that of the legal acquirer (INVU), records goodwill for the excess of the purchase price over the assets acquired and liabilities assumed, and eliminates INVU's historical stockholders' deficit.

 

The fair value of the consideration effectively transferred was measured based on the fair value of INVU’s shares that were outstanding immediately before the transaction of 150,465,339. Using the closing market price of INVU’s shares on March 1, 2017 of $0.0044 consideration was valued at $662,047.

 

 

Cash  $3,550 
Receivables   150,000 
Total assets acquired   153,550 
      
Accounts payable and accrued liabilities   439,288 
Due to former management   127,199 
Debt   26,314 
Total liabilities assumed   592,801 
      
Net liabilities assumed   439,251 
      
Consideration   662,047 
      
Goodwill  $1,101,298 

 

[4]On June 6, 2017 INVU entered into an Acquisition Agreement with Market Trend Strategies, LLC ("Market"), a company whose members are also former members of management of INVU. In accordance with the Acquisition Agreement, INVU spun-off the operations of INVU that existed prior to the merger with Wealth Generators, LLC and sold the intangible assets used in the operations   of INVU pre-merger in exchange for Market assuming $419,139 worth of liabilities that had been on the books pre-merger. Because there was goodwill that was recorded in conjunction with the merger, and it therefore related to the INVU operations that were acquired, this spin-off entry effectively reduced the goodwill to zero, reduced the liabilities that had been assumed, removed the expenses related to the spun-off operations of INVU pre-merger, and resulted in a gain on spin-off of operations.

 

[5]This entry reclasses the members deficit of Wealth Generators, LLC to accumulated deficit of the consolidated entity