U.S. Securities and Exchange Commission
Washington, DC 20549
FORM
FOR THE QUARTERLY PERIOD ENDED
For the transition period from__________________ to _______________________.
Commission
File Number
(Exact name of registrant as specified in its charter)
(State or other jurisdiction of incorporation) |
(I.R.S. Employer Identification No.) |
(Address of principal executive offices)
Issuer’s
telephone number:
Securities registered pursuant to Section 12(b) of the Act: None
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
| ☒ | No | ☐ |
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).
| ☒ | No | ☐ |
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
| Large accelerated filer ☐ | Accelerated filer ☐ |
| Smaller
reporting company | |
| Emerging
growth company |
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act).
| Yes | ☐ | ☒ |
Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date. As of November 14, 2022, there were shares of common stock, $0.001 par value, outstanding.
INVESTVIEW, INC.
Form 10-Q for the Nine Months Ended September 30, 2022
Table of Contents
| 2 |
PART I – FINANCIAL INFORMATION
ITEM 1 – FINANCIAL STATEMENTS
INVESTVIEW, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
| September 30 | December 31, | |||||||
| 2022 | 2021 | |||||||
| (unaudited) | ||||||||
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | $ | ||||||
| Restricted cash, current | ||||||||
| Prepaid assets | ||||||||
| Receivables | ||||||||
| Inventory | ||||||||
| Income tax paid in advance | ||||||||
| Other current assets | ||||||||
| Total current assets | ||||||||
| Fixed assets, net | ||||||||
| Other assets: | ||||||||
| Restricted cash, long term | ||||||||
| Other restricted assets, long term | ||||||||
| Operating lease right-of-use asset | ||||||||
| Intangible asset | ||||||||
| Deposits | ||||||||
| Total other assets | ||||||||
| Total assets | $ | $ | ||||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT) | ||||||||
| Current liabilities: | ||||||||
| Accounts payable and accrued liabilities | $ | $ | ||||||
| Payroll liabilities | ||||||||
| Income tax payable | ||||||||
| Customer advance | ||||||||
| Deferred revenue | ||||||||
| Derivative liability | ||||||||
| Dividend liability | ||||||||
| Operating lease liability, current | ||||||||
| Related party payables, net of discounts, current | ||||||||
| Debt, net of discounts, current | ||||||||
| Total current liabilities | ||||||||
| Deferred tax liability, long term | ||||||||
| Operating lease liability, long term | ||||||||
| Related party payables, net of discounts, long term | ||||||||
| Debt, net of discounts, long term | ||||||||
| Total long term liabilities | ||||||||
| Total liabilities | ||||||||
| Commitments and contingencies | ||||||||
| Stockholders’ equity (deficit): | ||||||||
| Preferred stock, par value: $; shares authorized, and issued and outstanding as of September 30, 2022 and December 31, 2021, respectively | ||||||||
| Common stock, par value $; shares authorized; and shares issued and outstanding as of September 30, 2022 and December 31, 2021, respectively | ||||||||
| Additional paid in capital | ||||||||
| Accumulated other comprehensive income (loss) | ( | ) | ( | ) | ||||
| Accumulated deficit | ( | ) | ( | ) | ||||
| Total stockholders’ equity (deficit) | ||||||||
| Total liabilities and stockholders’ equity (deficit) | $ | $ | ||||||
The accompanying notes are an integral part of these condensed consolidated financial statements.
| 3 |
INVESTVIEW, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
AND OTHER COMPREHENSIVE INCOME (LOSS)
(Unaudited)
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
| 2022 | 2021 | 2022 | 2021 | |||||||||||||
| Revenue: | ||||||||||||||||
| Subscription revenue, net of refunds, incentives, credits, and chargebacks | $ | | $ | $ | | $ | ||||||||||
| Mining revenue | ||||||||||||||||
| Cryptocurrency revenue | ||||||||||||||||
| Miner repair revenue | ||||||||||||||||
| Digital wallet revenue | ||||||||||||||||
| Fee revenue | ||||||||||||||||
| Total revenue, net | ||||||||||||||||
| Operating costs and expenses: | ||||||||||||||||
| Cost of sales and service | ||||||||||||||||
| Commissions | ||||||||||||||||
| Selling and marketing | ||||||||||||||||
| Salary and related | ||||||||||||||||
| Professional fees | ||||||||||||||||
| Impairment expense | ||||||||||||||||
| Loss (gain) on disposal of assets | ( | ) | ( | ) | ||||||||||||
| General and administrative | ||||||||||||||||
| Total operating costs and expenses | ||||||||||||||||
| Net income (loss) from operations | ( | ) | ( | ) | ||||||||||||
| Other income (expense): | ||||||||||||||||
| Gain (loss) on debt extinguishment | ||||||||||||||||
| Gain (loss) on fair value of derivative liability | ||||||||||||||||
| Realized gain (loss) on cryptocurrency | ( | ) | ( | ) | ||||||||||||
| Interest expense | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
| Interest expense, related parties | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
| Other income (expense) | ( | ) | ||||||||||||||
| Total other income (expense) | ( | ) | ( | ) | ( | ) | ||||||||||
| Income (loss) before income taxes | ( | ) | ( | ) | ( | ) | ||||||||||
| Income tax expense | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
| Net income (loss) | ( | ) | ( | ) | ( | ) | ||||||||||
| Dividends on Preferred Stock | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
| Net income (loss) applicable to common shareholders | $ | ( | ) | $ | ( | ) | $ | $ | ( | ) | ||||||
| Other comprehensive income (loss), net of tax: | ||||||||||||||||
| Foreign currency translation adjustments | $ | ( | ) | $ | ( | ) | $ | ( | ) | |||||||
| Total other comprehensive income (loss) | ( | ) | ( | ) | ( | ) | ||||||||||
| Comprehensive income (loss) | $ | ( | ) | $ | ( | ) | $ | $ | ( | ) | ||||||
| Basic income (loss) per common share | $ | ( | ) | $ | ( | ) | $ | $ | ( | ) | ||||||
| Diluted income (loss) per common share | $ | ( | ) | $ | ( | ) | $ | $ | ( | ) | ||||||
| Basic weighted average number of common shares outstanding | ||||||||||||||||
| Diluted weighted average number of common shares outstanding | ||||||||||||||||
The accompanying notes are an integral part of these condensed consolidated financial statements.
| 4 |
INVESTVIEW, INC.
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY (DEFICIT)
THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2022 AND 2021
(Unaudited)
| Accumulated | ||||||||||||||||||||||||||||||||
| Additional | Other | |||||||||||||||||||||||||||||||
| Preferred stock | Common stock | Paid in | Comprehensive | Accumulated | ||||||||||||||||||||||||||||
| Shares | Amount | Shares | Amount | Capital | Income (Loss) | Deficit | Total | |||||||||||||||||||||||||
| Balance, December 31, 2020 | $ | $ | $ | $ | ( | ) | $ | ( | ) | $ | ( | ) | ||||||||||||||||||||
| Preferred stock issued for cash | - | |||||||||||||||||||||||||||||||
| Preferred stock issued for cryptocurrency | - | |||||||||||||||||||||||||||||||
| Preferred stock issued for debt | - | |||||||||||||||||||||||||||||||
| Derivative liability recorded for warrants issued with preferred stock | - | - | ( | ) | ( | ) | ||||||||||||||||||||||||||
| Common stock cancelled | - | ( | ) | ( | ) | |||||||||||||||||||||||||||
| Common stock issued for services | - | - | ||||||||||||||||||||||||||||||
| Beneficial conversion feature | - | - | ||||||||||||||||||||||||||||||
| Dividends | - | - | ( | ) | ( | ) | ||||||||||||||||||||||||||
| Foreign currency translation adjustment | - | - | ||||||||||||||||||||||||||||||
| Net income (loss) | - | - | ||||||||||||||||||||||||||||||
| Balance, March 31, 2021 | ( | ) | ( | ) | ( | ) | ||||||||||||||||||||||||||
| Preferred stock issued for cash | - | |||||||||||||||||||||||||||||||
| Preferred stock issued for cryptocurrency | - | |||||||||||||||||||||||||||||||
| Common stock issued for services and compensation | - | |||||||||||||||||||||||||||||||
| Common stock issued for warrant exercise | - | |||||||||||||||||||||||||||||||
| Derivative liability recorded for warrants issued with preferred stock | - | - | ( | ) | ( | ) | ||||||||||||||||||||||||||
| Derivative liability extinguished for warrants exercised | - | - | ||||||||||||||||||||||||||||||
| Dividends | - | - | ( | ) | ( | ) | ||||||||||||||||||||||||||
| Foreign currency translation adjustment | - | - | ( | ) | ( | ) | ||||||||||||||||||||||||||
| Net income (loss) | - | - | ||||||||||||||||||||||||||||||
| Balance, June 30, 2021 | ( | ) | ( | ) | ||||||||||||||||||||||||||||
| Common stock issued for services and compensation | - | - | ||||||||||||||||||||||||||||||
| Common stock issued for warrant exercise | - | |||||||||||||||||||||||||||||||
| Common stock forfeited | - | ( | ) | ( | ) | |||||||||||||||||||||||||||
| Derivative liability extinguished for warrants exercised | - | - | ||||||||||||||||||||||||||||||
| Class B units of subsidiary issued to a related party for asset acquisition | - | - | ||||||||||||||||||||||||||||||
| Contributed capital | - | - | ||||||||||||||||||||||||||||||
| Dividends | - | - | ( | ) | ( | ) | ||||||||||||||||||||||||||
| Foreign currency translation adjustment | - | - | ( | ) | ( | ) | ||||||||||||||||||||||||||
| Net income (loss) | - | - | ( | ) | ( | ) | ||||||||||||||||||||||||||
| Balance, September 30, 2021 | $ | $ | $ | $ | ( | ) | $ | ( | ) | $ | ||||||||||||||||||||||
| Balance, December 31, 2021 | $ | $ | $ | $ | ( | ) | $ | ( | ) | $ | ||||||||||||||||||||||
| Common stock issued for services and other stock based compensation | - | - | ||||||||||||||||||||||||||||||
| Common stock repurchased from related parties | - | ( | ) | ( | ) | ( | ) | ( | ) | |||||||||||||||||||||||
| Common stock cancelled | - | ( | ) | ( | ) | |||||||||||||||||||||||||||
| Dividends | - | - | ( | ) | ( | ) | ||||||||||||||||||||||||||
| Foreign currency translation adjustment | - | - | ||||||||||||||||||||||||||||||
| Net income (loss) | - | - | ||||||||||||||||||||||||||||||
| Balance, March 31, 2022 | ( | ) | ( | ) | ||||||||||||||||||||||||||||
| Common stock issued for services and other stock based compensation | - | - | ||||||||||||||||||||||||||||||
| Common stock cancelled | - | ( | ) | ( | ) | |||||||||||||||||||||||||||
| Contribution of crypto currency from related party | - | - | ||||||||||||||||||||||||||||||
| Dividends | - | - | ( | ) | ( | ) | ||||||||||||||||||||||||||
| Foreign currency translation adjustment | - | - | ( | ) | ( | ) | ||||||||||||||||||||||||||
| Net income (loss) | - | - | - | - | - | - | (99,708 | ) | (99,708 | ) | ||||||||||||||||||||||
| Balance, June 30, 2022 | $ | $ | $ | $ | ( | ) | $ | ( | ) | $ | ||||||||||||||||||||||
| Common stock issued for services and other stock based compensation | - | - | ||||||||||||||||||||||||||||||
| Dividends | - | - | ( | ) | ( | ) | ||||||||||||||||||||||||||
| Net income (loss) | - | - | ( | ) | ( | ) | ||||||||||||||||||||||||||
| Balance, September 30, 2022 | $ | $ | $ | $ | ( | ) | $ | ( | ) | $ |
The accompanying notes are an integral part of these condensed consolidated financial statements.
| 5 |
INVESTVIEW INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
| Nine Months Ended September 30, | ||||||||
| 2022 | 2021 | |||||||
| CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||
| Net income (loss) | $ | $ | ( | ) | ||||
| Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ||||||||
| Depreciation | ||||||||
| Amortization of debt discount | ||||||||
| Amortization of intangible assets | ||||||||
| Stock issued for services and other stock based compensation | ||||||||
| Lease cost, net of repayment | ( | ) | ||||||
| (Gain) loss on asset acquisition | ||||||||
| (Gain) loss on debt extinguishment | ( | ) | ( | ) | ||||
| (Gain) loss on Class B Units of subsidiary issued to a related party for asset acquisition | ||||||||
| (Gain) loss on disposal of fixed assets | ( | ) | ||||||
| (Gain) loss on fair value of derivative liability | ( | ) | ( | ) | ||||
| Realized (gain) loss on cryptocurrency | ( | ) | ||||||
| Impairment expense | ||||||||
| Changes in operating assets and liabilities: | ||||||||
| Receivables | ( | ) | ( | ) | ||||
| Inventory | ( | ) | ||||||
| Prepaid assets | ( | ) | ||||||
| Short-term advances | ||||||||
| Short-term advances from related parties | ||||||||
| Income tax paid in advance | ( | ) | ||||||
| Other current assets | ( | ) | ( | ) | ||||
| Deposits | ( | ) | ||||||
| Accounts payable and accrued liabilities | ||||||||
| Income tax payable | ( | ) | ||||||
| Customer advance | ||||||||
| Deferred revenue | ( | ) | ||||||
| Deferred tax liability | ||||||||
| Accrued interest | ||||||||
| Accrued interest, related parties | ||||||||
| Net cash provided by (used in) operating activities | ||||||||
| CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||
| Cash received for the disposal of fixed assets | ||||||||
| Cash paid for fixed assets | ( | ) | ( | ) | ||||
| Net cash provided by (used in) investing activities | ( | ) | ( | ) | ||||
| CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||
| Proceeds from related party payables | ||||||||
| Repayments for related party payables | ( | ) | ( | ) | ||||
| Repayments for debt | ( | ) | ( | ) | ||||
| Payments for share repurchase | ( | ) | ||||||
| Dividends paid | ( | ) | ( | ) | ||||
| Proceeds from the sale of preferred stock | ||||||||
| Proceeds from the exercise of warrants | ||||||||
| Net cash provided by (used in) financing activities | ( | ) | ||||||
| Effect of exchange rate translation on cash | ( | ) | ( | ) | ||||
| Net increase (decrease) in cash, cash equivalents, and restricted cash | ( | ) | ||||||
| Cash, cash equivalents, and restricted cash - beginning of period | ||||||||
| Cash, cash equivalents, and restricted cash - end of period | $ | $ | ||||||
| SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION: | ||||||||
| Cash paid during the period for: | ||||||||
| Interest | $ | $ | ||||||
| Income taxes | $ | $ | ||||||
| Non-cash investing and financing activities: | ||||||||
| Cancellation of shares | $ | $ | ||||||
| Beneficial conversion feature | $ | $ | ||||||
| Shares forfeited | $ | $ | ||||||
| Derivative liability recorded for warrants issued | $ | $ | ||||||
| Derivative liability extinguished with warrant exercise | $ | $ | ||||||
| Preferred shares issued in exchange for cryptocurrency | $ | $ | ||||||
| Preferred shares issued in exchange for debt | $ | $ | ||||||
| Dividends declared | $ | $ | ||||||
| Dividends paid with cryptocurrency | $ | $ | ||||||
| Debt extinguished in exchange for cryptocurrency | $ | $ | ||||||
| Related party debt extinguished in exchange for cryptocurrency | $ | $ | ||||||
| Fixed asset acquired with cryptocurrency | $ | $ | ||||||
| Initial right of use asset and lease liability | $ | $ | ||||||
| Net assets acquired for noncontrolling interest in subsidiary | $ | $ | ||||||
| Contributed capital | $ | $ | ||||||
| Class B units of subsidiary issued to a related party for asset acquisition | $ | $ | ||||||
| Transfer of fixed assets to inventory | $ | $ | ||||||
| Contribution of crypto currency from related party | $ | $ | ||||||
The accompanying notes are an integral part of these condensed consolidated financial statements.
| 6 |
INVESTVIEW, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
AS OF SEPTEMBER 30, 2022
(Unaudited)
NOTE 1 – ORGANIZATION AND NATURE OF BUSINESS
Organization
Investview,
Inc. was incorporated on
Effective April 1, 2017, we closed on a Contribution Agreement with the members of Wealth Generators, LLC, a limited liability company (“Wealth Generators”), pursuant to which the Wealth Generators members contributed % of the outstanding securities of Wealth Generators in exchange for an aggregate of shares of our common stock. Following this transaction, Wealth Generators became our wholly owned subsidiary, and the former members of Wealth Generators became our stockholders and controlled the majority of our outstanding common stock.
On
June 6, 2017, we entered into an Acquisition Agreement with Market Trend Strategies, LLC, a company whose members are also former members
of our management. Under the Acquisition Agreement, we spun-off our operations that existed prior to the merger with Wealth Generators
and sold the intangible assets used in those pre-merger operations in exchange for Market Trend Strategies’ assumption of $
On February 28, 2018, we filed a name change for Wealth Generators, LLC to Kuvera, LLC (“Kuvera”).
On January 17, 2019, we renamed our non-operating wholly owned subsidiary WealthGen Global, LLC to SAFETek, LLC, a Utah limited liability company.
On January 11, 2021, we filed a name change for Kuvera, LLC to iGenius, LLC (“iGenius”) and on February 2, 2021, we filed a name change for Kuvera (N.I.) Limited to iGenius Global LTD.
On September 20, 2021, the Board of Directors approved a change in our fiscal year from March 31 to December 31.
Nature of Business
We operate a financial technology (FinTech) services company in several different businesses. We deliver multiple products and services through a direct selling network, also known as multi-level marketing, of independent distributors that offer our products and services through a subscription-based revenue model to our distributors, as well as by our distributors to a large base of customers that we refer to as “members”. Through this business, we provide research, education, and investment tools designed to assist the self-directed investor in successfully navigating the financial markets. These services include research and education regarding equities, options, FOREX, ETFs, binary options, and cryptocurrency. In addition to trading research and education, we also offer software applications to assist the individual in debt reduction, increased savings, budgeting, and proper tax management. Each product subscription includes a core set of trading tools and research along with the personal finance management suite to provide an individual with complete access to the information necessary to cultivate and manage his or her financial situation. In addition to our education subscriptions, through a distribution arrangement we have with a third party, we have provided our members with an opportunity to purchase through such third party, a specialty form of adaptive digital currency called “ndau”. Through our direct selling model, we compensate our distributors with commissions under a standard bonus plan that allows for discretionary bonuses based on performance.
We also operate a blockchain technology business that provides leading-edge research, development, and FinTech services involving the management of digital asset technologies with a focus on Bitcoin mining and the new generation of digital assets. As well, in order to, among other things, commercialize on the proprietary trading platform we recently acquired from MPower Trading Systems, LLC (“MPower”), take advantage of the market’s increasing acceptance and expansion of the ownership and use of digital currencies as an investable asset class, subject to applicable regulatory limitations, and to proactively respond to increasing regulatory scrutiny relative to cryptocurrency products, we have adopted a growth plan that contemplates the establishment of a suite of financial service business that would offer, among others, self-directed brokerage services, institutional trade execution services, innovative advisory services (RIA, CTA), and codeless algorithmic trading technologies. It was our expectation to develop these businesses over time, starting with the acquisition of a broker-dealer that could serve as a platform for growth. Towards that end, in March 2021 we entered into an agreement to acquire a brokerage firm from an affiliate of the former Chief Executive Officer of the Company. However, having been unable to secure the requisite FINRA approval by the expiration of that agreement, we terminated the transaction on June 14, 2022, and commenced a search for alternative acquisitions within the brokerage industry. Further, until we are able to start this business, we recently elected to winddown the registration of a dormant investment advisor and commodity trading advisor we own, as we concluded there to be no material benefit to retaining an interest in these regulated businesses until we are able to launch our broader-based financial services model.
| 7 |
INVESTVIEW, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
AS OF SEPTEMBER 30, 2022
(Unaudited)
NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis of Presentation
Our policy is to prepare our financial statements on the accrual basis of accounting in accordance with accounting principles generally accepted in the United States of America. Prior to September 20, 2021, we operated the Company on a March 31 fiscal year end. Effective September 30, 2021, we changed our fiscal year to December 31.
The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with the rules and regulations (Regulation S-X) of the Securities and Exchange Commission (the “SEC”) and with the instructions to Form 10-Q. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. The results of operations for the nine months ended September 30, 2022, are not necessarily indicative of the operating results that may be expected for the filing of our December 31, 2022 Form 10-K. These unaudited condensed consolidated financial statements should be read in conjunction with the audited December 31, 2021 consolidated financial statements and notes thereto included in our Annual Report on Form 10-KT for the nine months ended December 31, 2021.
Principles of Consolidation
The consolidated financial statements include the accounts of Investview, Inc., and our wholly owned subsidiaries: iGenius, LLC (formerly Kuvera, LLC), Kuvera France S.A.S (through its closure date in June of 2021), Apex Tek, LLC (formerly Razor Data, LLC), SAFETek, LLC (formerly WealthGen Global, LLC), S.A.F.E. Management, LLC, United Games, LLC, United League, LLC, Investment Tools & Training, LLC, iGenius Global LTD (formerly Kuvera (N.I.) LTD), Investview Financial Group Holdings, LLC, and Investview MTS, LLC. All intercompany transactions and balances have been eliminated in consolidation.
Financial Statement Reclassification
Certain account balances from prior periods have been reclassified in these consolidated financial statements to conform to current period classifications.
Use of Estimates
The preparation of these financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates.
Foreign Exchange
We have consolidated the accounts of Kuvera France S.A.S. into our consolidated financial statements. The operations of Kuvera France S.A.S. were conducted in France through its closure date in June of 2021 and its functional currency is the Euro. Subsequent to June 2021 we maintained a Euro bank account in France that had minimal transactions. The Euro bank account was closed in April 2022.
Prior to June 2021, the financial statements of Kuvera France S.A.S. were prepared using their functional currency and were translated into U.S. dollars (“USD”). Assets and liabilities were translated into USD at the applicable exchange rates at period-end. Stockholders’ equity was translated using historical exchange rates. Revenue and expenses were translated at the average exchange rates for the period. Any translation adjustments were included as foreign currency translation adjustments in accumulated other comprehensive income in our stockholders’ equity (deficit).
| 8 |
INVESTVIEW, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
AS OF SEPTEMBER 30, 2022
(Unaudited)
Subsequent to June 2021 and prior to the closure of the Euro bank account, we translated all transactions in our Euro bank account into USD and translated the ending bank balance into USD at the applicable exchange rate at period-end.
The following rates were used to translate our Euro bank account into USD at the following balance sheet dates.
| December
31, 2021 | ||||
| Euro to USD | ||||
The following rates were used to translate the accounts of Kuvera France S.A.S. into USD for the following operating periods.
| Nine Months Ended September 30, | ||||||||
| 2022 | 2021 | |||||||
| Euro to USD | ||||||||
Concentration of Credit Risk
Financial
instruments that potentially expose us to concentration of credit risk include cash, accounts receivable, and advances. We place our
cash and temporary cash investments with credit quality institutions. At times, such investments may be in excess of the FDIC insurance
limit of $
Cash Equivalents and Restricted Cash
For
purposes of reporting cash flows, we consider all highly liquid debt instruments purchased with a maturity of three months or less to
be cash equivalents. As of September 30, 2022 and December 31, 2021, we had
The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within the balance sheet that sum to the total of the same such amounts shown in the statement of cash flows.
| September
30, 2022 | December
31, 2021 | |||||||
| Cash and cash equivalents | $ | $ | ||||||
| Restricted cash, current | ||||||||
| Restricted cash, long term | ||||||||
| Total cash, cash equivalents, and restricted cash shown on the statement of cash flows | $ | $ | ||||||
Amount included in restricted cash represent funds required to be held in an escrow account by a contractual agreement and will be used for paying dividends to our Series B Preferred Stockholders.
Receivables
Receivables
are carried at net realizable value, representing the outstanding balance less an allowance for doubtful accounts based on a review of
all outstanding amounts. Management determines the allowance for doubtful accounts by regularly evaluating individual receivables and
receivables are written off when deemed uncollectible. Recoveries of receivables previously written off are recorded when received. We
had an allowance for doubtful accounts of $
| 9 |
INVESTVIEW, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
AS OF SEPTEMBER 30, 2022
(Unaudited)
Fixed Assets
Fixed assets are stated at cost and depreciated using the straight-line method over their estimated useful lives. When retired or otherwise disposed, the carrying value and accumulated depreciation of the fixed asset is removed from its respective accounts and the net difference less any amount realized from disposition is reflected in earnings. Expenditures for maintenance and repairs which do not extend the useful lives of the related assets are expensed as incurred.
Fixed assets were made up of the following at each balance sheet date:
| Estimated
Useful Life (years) | September
30, 2022 | December
31, 2021 | ||||||||
| Furniture, fixtures, and equipment | $ | $ | ||||||||
| Computer equipment | ||||||||||
| Leasehold improvements | ||||||||||
| Data processing equipment | ||||||||||
| Construction in progress | N/A | |||||||||
| Mining repair tools and equipment | ||||||||||
| Accumulated depreciation | ( | ) | ( | ) | ||||||
| Net book value | $ | $ | ||||||||
Total
depreciation expense for the nine months ended September 30, 2022 and 2021, was $
Long-Lived Assets – Intangible Assets & License Agreement
We account for our cryptocurrencies, intangible assets and long-term license agreement in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Subtopic 350-30, General Intangibles Other Than Goodwill, and ASC Subtopic 360-10-05, Accounting for the Impairment or Disposal of Long-Lived Assets. ASC Subtopic 350-30 requires assets to be measured based on the fair value of the consideration given or the fair value of the assets (or net assets) acquired, whichever is more clearly evident and, thus, more reliably measurable. Our cryptocurrencies are deemed to have an indefinite useful life; therefore, amounts are not amortized, but rather are assessed for impairment as further discussed in our impairment policy. Under ASC Subtopic 350-30 any intangible asset with a useful life is required to be amortized over that life and the useful life is to be evaluated every reporting period to determine whether events or circumstances warrant a revision to the remaining period of amortization. If the estimate of useful life is changed the remaining carrying amount of the intangible asset is amortized prospectively over the revised remaining useful life. Costs of internally developing, maintaining, or restoring intangible assets are recognized as an expense when incurred.
We
hold cryptocurrency-denominated assets and include them in our consolidated balance sheet as other assets. The value of our cryptocurrencies
as of September 30, 2022 and December 31, 2021 were $
In June of 2018 we purchased United Games, LLC and United League, LLC and recorded the transaction as a business combination. Intangible assets acquired in the business combination were recorded at fair value on the date of acquisition and were being amortized on a straight-line method over their estimated useful lives. The intangible assets were impaired during the year ended March 31, 2021, due to a lack of recoverability.
| 10 |
INVESTVIEW, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
AS OF SEPTEMBER 30, 2022
(Unaudited)
On
March 22, 2021, we entered into a Securities Purchase Agreement to acquire the operating assets and intellectual property rights of
MPower, a company controlled and partially owned by David B. Rothrock and James R. Bell, two of our board
members (see NOTE 12). On September 3, 2021, we closed on the Securities Purchase Agreement and acquired the operating assets and
intellectual property rights of MPower. As a result, we obtained Prodigio, a proprietary software-based trading
platform with applications within the brokerage industry, which was valued at $
Impairment of Long-Lived Assets
We have adopted ASC Subtopic 360-10, Property, Plant and Equipment (“ASC 360-10”). ASC 360-10 requires that long-lived assets and certain identifiable intangibles held and used by the Company be reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable or when the historical cost carrying value of an asset may no longer be appropriate. Events relating to recoverability may include significant unfavorable changes in business conditions, recurring losses, or a forecasted inability to achieve break-even operating results over an extended period.
We evaluate the recoverability of long-lived assets based upon future net cash flows expected to result from the asset, including eventual disposition. Should impairment in value be indicated, the carrying value of intangible assets will be adjusted and an impairment loss is recorded equal to the difference between the asset’s carrying value and fair value or disposable value.
During
the nine months ended September 30, 2022 we impaired our fixed assets with a cost basis of $
During
the nine months ended September 30, 2021 we impaired our intangible assets with a cost basis of $
Fair Value of Financial Instruments
Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, based on our principal or, in the absence of a principal, most advantageous market for the specific asset or liability.
U.S. generally accepted accounting principles provide for a three-level hierarchy of inputs to valuation techniques used to measure fair value, defined as follows:
| Level 1: | Inputs that are quoted prices (unadjusted) for identical assets or liabilities in active markets that the entity can access. |
| Level 2: | Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the asset or liability, including: |
| - | quoted prices for similar assets or liabilities in active markets; | |
| - | quoted prices for identical or similar assets or liabilities in markets that are not active; | |
| - | inputs other than quoted prices that are observable for the asset or liability; and | |
| - | inputs that are derived principally from or corroborated by observable market data by correlation or other means. |
| Level 3: | Inputs that are unobservable and reflect management’s own assumptions about the inputs market participants would use in pricing the asset or liability based on the best information available in the circumstances (e.g., internally derived assumptions surrounding the timing and amount of expected cash flows). |
Our financial instruments consist of cash, accounts receivable, accounts payable, and debt. We have determined that the book value of our outstanding financial instruments as of September 30, 2022 and December 31, 2021, approximates the fair value due to their short-term nature or interest rates that approximate prevailing market rates.
| 11 |
INVESTVIEW, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
AS OF SEPTEMBER 30, 2022
(Unaudited)
Items recorded or measured at fair value on a recurring basis in the accompanying consolidated financial statements consisted of the following items as of September 30, 2022:
| Level 1 | Level 2 | Level 3 | Total | |||||||||||||
| Total Assets | $ | $ | $ | $ | ||||||||||||
| Derivative liability | $ | $ | $ | $ | ||||||||||||
| Total Liabilities | $ | $ | $ | $ | ||||||||||||
Items recorded or measured at fair value on a recurring basis in the accompanying consolidated financial statements consisted of the following items as of December 31, 2021:
| Level 1 | Level 2 | Level 3 | Total | |||||||||||||
| Total Assets | $ | $ | $ | $ | ||||||||||||
| Derivative liability | $ | $ | $ | $ | ||||||||||||
| Total Liabilities | $ | $ | $ | $ | ||||||||||||
Revenue Recognition
Subscription Revenue
Most
of our revenue is generated by subscription sales and payment is received at the time of purchase. We recognize subscription revenue
in accordance with ASC 606-10 where revenue is measured based on a consideration specified in a contract with a customer and recognized
when we satisfy the performance obligation specified in each contract. Our performance obligation is to provide services over a fixed
subscription period; therefore, we recognize revenue ratably over the subscription period and deferred revenue is recorded for the portion
of the subscription period subsequent to each reporting date. Additionally, we offer a designated trial period to first time subscription
customers, during which a full refund can be requested if a customer does not wish to continue with the subscription. Revenues are deferred
during the trial period as collection is not probable until that time has passed. Revenues are presented net of refunds, sales incentives,
credits, and known and estimated credit card chargebacks. As of September 30, 2022 and December 31, 2021 our deferred revenues were $
Mining Revenue
Through our wholly owned subsidiary, SAFETek, LLC, we leased equipment under a sale-leaseback arrangement. However, in June of 2020, we cancelled all leases and purchased all of the rights and obligations under these leases, which included obtaining ownership of all equipment. We use the equipment on blockchain networks to validate and add blocks of transactions to blockchain ledgers (commonly referred to as “mining”). As compensation for our mining activities, we are issued fees from processors and/or block rewards that are newly created cryptocurrency units granted to us. Our mining activities constitute the principal operations of SAFETek, LLC. Because we do not have contracts, nor do we have customers associated with our mining revenue, we recognize revenue when fees and/or rewards are settled, or ultimately granted to us as a result of our mining activities.
Cryptocurrency Revenue
We
generate revenue from the sale of cryptocurrency packages to our customers through an arrangement with a third-party supplier with
whom our Chairman is affiliated (see Note 5-Related Party Transactions). The various packages include different amounts of coin with
differing rates of returns and terms and, in some cases prior to January 2022, included a product protection option that allows the
purchaser to protect their initial purchase price.
| 12 |
INVESTVIEW, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
AS OF SEPTEMBER 30, 2022
(Unaudited)
We
recognize cryptocurrency revenue in accordance with ASC 606-10 where revenue is measured based on a consideration specified in a contract
with a customer and recognized when we satisfy the performance obligation specified in each contract. Our performance obligation is to
arrange for the third-parties to provide coin and protection (if applicable) to our customers and payment is received from our customers
at the time of order placement. All customers are given two weeks to request a refund, therefore we record a customer advance on our
balance sheet upon receipt of payment. After the two weeks have passed from order placement, we request our third-party supplier to
deliver coin and protection (if applicable), at which time we recognize revenue and the amounts due to our supplier on our books. As
of September 30, 2022 and December 31, 2021 our customer advances related to cryptocurrency revenue were $
Fee Revenue
We generate minimal fee revenue from our customers through SAFE Management, our subsidiary licensed as a Registered Investment Advisor and Commodities Trading Advisor. We recognize fee revenue in accordance with ASC 606-10 where revenue is measured based on a consideration specified in a contract with a customer and recognized when we satisfy the performance obligation specified in each contract. Our performance obligation is to deliver fully managed trading services to individuals who do not meet the requirements of Qualified Investors and who lack the time to trade for themselves. We recognize fee revenue as our performance obligation is met and we receive payment for such advisory fees in the month following recognition. However, since these businesses were largely dormant, during 2022, we elected to winddown and withdraw the SAFE Management state and NFA registrations, as we concluded there to be no material benefit to retaining an interest in these regulated businesses until we are able to launch our broader-based financial services model.
Miner Repair Revenue
Through our wholly owned subsidiary, SAFETek, LLC, we repair broken mining equipment for sale to third-party customers. We recognize miner repair revenue in accordance with ASC 606-10 where revenue is measured based on a consideration specified in a contract with a customer and recognized when we satisfy the performance obligation specified in each contract. Our performance obligation is to deliver the promised goods to our customers.
Digital Wallet Revenue
We generate revenue from the sale of digital wallets to our customers through an arrangement with a third-party supplier. We offer three tiers of wallets which include different features. The digital wallets are delivered by a third-party supplier.
We recognize digital wallet revenue in accordance with ASC 606-10 where revenue is measured based on a consideration specified in a contract with a customer and recognized when we satisfy the performance obligation specified in each contract. Our performance obligation is to arrange for the third-parties to provide the wallet to our customers and payment is received from our customers at the time of order placement.
Revenue generated for the nine months ended September 30, 2022, is as follows:
| Subscription Revenue | Cryptocurrency Revenue | Mining Revenue | Miner Repair Revenue | Digital Wallet Revenue | Total | |||||||||||||||||||
| Gross billings/receipts | $ | $ | $ | $ | $ | $ | ||||||||||||||||||
| Refunds, incentives, credits, and chargebacks | ( | ) | ( | ) | ||||||||||||||||||||
| Amounts paid to providers | ( | ) | ( | ) | ( | ) | ||||||||||||||||||
| Net revenue | $ | $ | $ | $ | $ | $ | ||||||||||||||||||
For
the nine months ended September 30, 2022, foreign and domestic revenues were approximately $
Revenue generated for the nine months ended September 30, 2021, is as follows:
| Subscription Revenue | Cryptocurrency Revenue | Mining Revenue | Fee Revenue | Total | ||||||||||||||||
| Gross billings/receipts | $ | $ | $ | $ | $ | |||||||||||||||
| Refunds, incentives, credits, and chargebacks | ( | ) | ( | ) | ||||||||||||||||
| Amounts paid to providers | ( | ) | ( | ) | ||||||||||||||||
| Net revenue | $ | $ | $ | $ | $ | |||||||||||||||
| 13 |
INVESTVIEW, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
AS OF SEPTEMBER 30, 2022
(Unaudited)
For
the nine months ended September 30, 2021 foreign and domestic revenues were approximately $
Revenue generated for the three months ended September 30, 2022, is as follows:
| Subscription Revenue | Cryptocurrency Revenue | Mining Revenue | Miner Repair Revenue | Digital Wallet Revenue | Total | |||||||||||||||||||
| Gross billings/receipts | $ | $ | $ | $ | $ | $ | ||||||||||||||||||
| Refunds, incentives, credits, and chargebacks | ( | ) | ( | ) | ||||||||||||||||||||
| Amounts paid to providers | ( | ) | ( | ) | ||||||||||||||||||||
| Net revenue | $ | $ | $ | $ | $ | $ | ||||||||||||||||||
For
the three months ended September 30, 2022, foreign and domestic revenues were approximately $
Revenue generated for the three months ended September 30, 2021, is as follows:
| Subscription Revenue | Cryptocurrency Revenue | Mining Revenue | Fee Revenue | Total | ||||||||||||||||
| Gross billings/receipts | $ | $ | $ | $ | $ | |||||||||||||||
| Refunds, incentives, credits, and chargebacks | ( | ) | ( | ) | ||||||||||||||||
| Amounts paid to providers | ( | ) | ( | ) | ||||||||||||||||
| Net revenue | $ | $ | $ | $ | $ | |||||||||||||||
For
the three months ended September 30, 2021 foreign and domestic revenues were approximately $
Advertising, Selling, and Marketing Costs
We
expense advertising, selling, and marketing costs as incurred. Advertising, selling, and marketing costs include costs of promoting our
product worldwide, including promotional events. Advertising, selling, and marketing expenses for the nine months ended September 30,
2022 and 2021, totaled $
Cost of Sales and Service
Included
in our costs of sales and services are amounts paid to our trading and market experts that provide financial education content and tools
to our subscription customers, hosting fees that we pay to vendors to set up our mining equipment at third-party sites in order to generate
mining revenue, and the costs associated with our miner repair revenue. Costs of sales and services for the nine months ended September
30, 2022 and 2021, totaled $
Inventory
Inventory consists of raw materials and work in process to be sold as part of our miner repair revenue. Inventory is valued at the lower of cost or net realizable value using the first-in, first-out (FIFO) method and is inclusive of any shipping and tax costs.
Inventory was made up of the following at each balance sheet date:
| September
30, 2022 | December
31, 2021 | |||||||
| Raw materials | $ | $ | ||||||
| Work in process | ||||||||
| Finished goods | ||||||||
| Total inventory | $ | $ | ||||||
| 14 |
INVESTVIEW, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
AS OF SEPTEMBER 30, 2022
(Unaudited)
Income Taxes
Income taxes are recorded in accordance with ASC Topic 740, Income Taxes, which requires the recognition of deferred tax liabilities and assets for the expected future tax consequences of events that have been included in the financial statement or tax returns. Under this method, deferred tax liabilities and assets are determined based on the difference between financial statements and tax basis of assets and liabilities, including operating losses and credit carryforwards, using enacted tax rates in effect for the year in which the differences are expected to reverse.
Management judgment is required in determining our provision for income taxes, our deferred tax assets and liabilities, and any valuation allowance recorded against our deferred tax assets. Deferred tax assets are reduced by a valuation allowance if, based on the consideration of all available evidence, it is more likely than not that some or all of the deferred tax assets will not be realized. Changes in assumptions in future periods may require we adjust our valuation allowance, which could materially impact our financial position and results of operations. The company recognizes the benefit of an uncertain tax position that it has taken or expects to take on its income tax return, if such a position is more likely than not to be sustained.
We follow ASC subtopic 260-10, Earnings per Share (“ASC 260-10”), which specifies the computation, presentation, and disclosure requirements of earnings per share information. Basic income (loss) per share has been calculated based upon the weighted average number of common shares outstanding. Diluted income (loss) per share reflects the potential dilution that could occur if stock options or other contracts to issue common stock were exercised or converted during the period. Dilutive securities having an anti-dilutive effect on diluted earnings per share are excluded from the calculation.
| Three months ended | Three months ended | Nine months ended | ||||||||||
| September 30, 2022 | September 30, 2021 | September 30, 2021 | ||||||||||
| Warrants to purchase common stock | ||||||||||||
| Notes convertible into common stock | ||||||||||||
| Class B Redeemable Units of Investview Financial Group Holdings, LLC | ||||||||||||
| Totals | ||||||||||||
| September 30, 2022 | ||||
| Net income | $ | |||
| Less: preferred dividends | ( | ) | ||
| Add: interest expense on convertible debt | ||||
| Net income available to common shareholders (numerator) | $ | |||
| Basic weighted average number of common shares outstanding | ||||
| Dilutive impact of convertible notes | ||||
| Dilutive impact of non-voting membership interest | ||||
| Diluted weighted average number of common shares outstanding (denominator) | ||||
| Diluted income per common share | $ | |||
| 15 |
INVESTVIEW, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
AS OF SEPTEMBER 30, 2022
(Unaudited)
Lease Obligation
We determine if an arrangement is a lease at inception. Operating leases are included in the operating lease right-of-use asset account, the operating lease liability, current account, and the operating lease liability, long term account in our balance sheet. Right-of-use assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease.
Operating lease right-of-use assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. For leases in which the rate implicit in the lease is not readily determinable, we use our incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. We have elected to not apply the recognition requirements of ASC 842 to short-term leases (leases with terms of twelve months or less). Lease terms include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. Lease expense for operating lease arrangements is recognized on a straight-line basis over the lease term. We have elected the practical expedient and will not separate non-lease components from lease components and will instead account for each separate lease component and non-lease component associated with the lease components as a single lease component.
NOTE 3 – RECENT ACCOUNTING PRONOUNCEMENTS
We have noted no recently issued accounting pronouncements that we have not yet adopted that we believe are applicable or would have a material impact on our financial statements.
NOTE 4 – LIQUIDITY
Our financial statements are prepared using generally accepted accounting principles applicable to a going concern that contemplates the realization of assets and liquidation of liabilities in the normal course of business.
During
the nine months ended September 30, 2022 we reported $
NOTE 5 – RELATED-PARTY TRANSACTIONS
Our related-party payables consisted of the following:
| September
30, 2022 | December
31, 2021 | |||||||
| Convertible
Promissory Note entered into on 4/27/20, net of debt discount of $ | $ | $ | ||||||
| Convertible
Promissory Note entered into on 5/27/20, net of debt discount of $ | ||||||||
| Convertible
Promissory Note entered into on 11/9/20, net of debt discount of $ | ||||||||
| Promissory note entered into on 12/15/20 [4] | ||||||||
| Convertible Promissory Note entered into on 3/30/21 [5] | ||||||||
| Working Capital Promissory Note entered into on 3/22/21 [6] | ||||||||
| Total related-party debt | ||||||||
| Less: Current portion | ( | ) | ( | ) | ||||
| Related-party debt, long term | $ | $ | ||||||
| [1] |
| 16 |
INVESTVIEW, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
AS OF SEPTEMBER 30, 2022
(Unaudited)
| [2] |
| [3] |
| [4] |
| [5] |
| [6] |
We expensed interest related to our related-party payables, as follows:
| Three Months Ended September 30, 2022 | Nine Months Ended September 30, 2022 | |||||||
| Wealth Engineering (Mario Romano and Annette Raynor) [1] | $ | $ | ||||||
| DBR Capital (David Rothrock) [2] | ||||||||
| Joseph Cammarata (former executive officer) [3] | ||||||||
| SSA Technologies LLC (Joseph Cammarata, former executive officer) [4] | ||||||||
| $ | $ | |||||||
| [1] | |
| [2] | |
| [3] | |
| [4] |
Description of other Related Party Arrangements
During the nine months ended September 30, 2022, we entered into
a Separation and Release Agreement (the “Separation Agreements”) with Mario Romano and Annette Raynor, two of the Company’s
founders and former members of management and the Board of Directors, and Wealth Engineering, LLC, an affiliate of Mr. Romano and Ms.
Raynor. Under the Separation Agreements, Mr. Romano and Ms. Raynor resigned their positions as officers and directors of the Company
effective immediately upon execution of the Separation Agreements as they each transitioned to the roles of strategic advisors to the
Company. In conjunction with the Separation Agreements Mr. Romano and Ms. Raynor forfeited shares each, which were returned
to the Company and cancelled, and we repurchased a total of shares from Mr. Romano and Ms. Raynor in exchange for cash of
$
| 17 |
INVESTVIEW, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
AS OF SEPTEMBER 30, 2022
(Unaudited)
During the nine months ended September 30, 2022, we recorded shares as forfeited as a result of 1) our Chief Financial Officer returning shares to the Company prior to their vesting date and 2) our senior management team and board of directors unanimously agreeing to surrender and terminate an aggregate of outstanding unvested restricted shares and ungranted shares in exchange for the issuance of options to purchase shares (see NOTE 9).
DBR
Capital LLC, an affiliate of our Chairman (“DBR Capital”), has been an investor in Oneiro NA, Inc.
(“Oneiro”) since 2016, and currently serves as a worldwide marketing and distribution agent for Oneiro. Oneiro has been our third-party supplier of ndau coins. In connection with its affiliation with
Oneiro, DBR Capital is entitled to certain performance fees from Oneiro for worldwide sales of ndau introduced by DBR
Capital, including purchases by Investview or any affiliates of Investview.
During
the nine months ended September 30, 2022, DBR Capital elected to contribute ndau coins to us. These coins were valued as of
the day of receipt at $
The
loans referenced in footnotes 1-3 above, were advanced under a Securities Purchase Agreement we entered into on April 27, 2020, with
DBR Capital. Under the Securities Purchase Agreement (which was subsequently amended and restated), DBR Capital agreed to advance up
to $
NOTE 6 – DEBT
Our debt consisted of the following:
| September
30, 2022 | December
31, 2021 | |||||||
| Loan with the U.S. Small Business Administration dated 4/19/20 [1] | $ | $ | ||||||
| Long term notes for APEX lease buyback [2] | ||||||||
| Total debt | ||||||||
| Less: Current portion | ( | ) | ( | ) | ||||
| Debt, long term portion | $ | $ | ||||||
| [1] |
| [2] |
| 18 |
INVESTVIEW, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
AS OF SEPTEMBER 30, 2022
(Unaudited)
NOTE 7 – DERIVATIVE LIABILITY
During the nine months ended September 30, 2022, we had the following activity in our derivative liability account relating to our warrants:
| Derivative liability at December 31, 2021 | $ | |||
| Derivative liability recorded on new instruments | ||||
| Derivative liability reduced by warrant exercise (see NOTE 7) | ||||
| (Gain) loss on fair value | ( | ) | ||
| Derivative liability at September 30, 2022 | $ |
We use the binomial option pricing model to estimate fair value for those instruments at inception, at warrant exercise, and at each reporting date. During the nine months ended September 30, 2022, the assumptions used in our binomial option pricing model were in the following range:
| Risk free interest rate | % | |||
| Expected life in years | ||||
| Expected volatility | % |
NOTE 8 – OPERATING LEASE
In August 2019 we entered an operating lease for office space in Eatontown, New Jersey (the “Eatontown Lease”), in September 2019 we entered an operating lease for office space in Kaysville, Utah (the “Kaysville Lease”), in May 2021 we entered an operating lease for office space in Conroe, Texas (the “Conroe Lease”), in July 2021 we entered an operating lease for office space in Wyckoff, New Jersey (the “Wyckoff Lease”), and in September 2021 we acquired an operating lease for office space in Haverford, Pennsylvania (the “Haverford Lease”) in connection with the MPower acquisition (See NOTE 12).
At
commencement of the Eatontown Lease, right-of-use assets obtained in exchange for new operating lease liabilities amounted to $
At
commencement of the Kaysville Lease, right-of-use assets obtained in exchange for new operating lease liabilities amounted to $
At
commencement of the Conroe Lease, right-of-use assets obtained in exchange for new operating lease liabilities amounted to $
At
commencement of the Wyckoff Lease, right-of-use assets obtained in exchange for new operating lease liabilities amounted to $
At
date of acquisition of the Haverford lease, right-of-use assets and lease liabilities obtained amounted to $
Operating
lease expense was $
Future minimum lease payments under non-cancellable leases as of September 30, 2022 were as follows:
| Remainder of 2022 | $ | |||
| 2023 | ||||
| Total | ||||
| Less: Interest | ( | ) | ||
| Present value of lease liability | ||||
| Operating lease liability, current [1] | ( | ) | ||
| Operating lease liability, long term | $ |
| [1] |
| 19 |
INVESTVIEW, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
AS OF SEPTEMBER 30, 2022
(Unaudited)
NOTE 9 – STOCKHOLDERS’ EQUITY (DEFICIT)
Preferred Stock
We are authorized to issue up to shares of preferred stock with a par value of $ and our board of directors has the authority to issue one or more classes of preferred stock with rights senior to those of common stock and to determine the rights, privileges, and preferences of that preferred stock.
Our
Board of Directors approved the designation of
During
the year ended March 31, 2021, we commenced a security offering to sell a total of units at $ per unit (“Unit Offering”),
such that each unit consisted of:
During
the nine months ended September 30, 2021, we sold units for a total of $
As of September 30, 2022 and December 31, 2021, we had shares of preferred stock issued and outstanding.
Preferred Stock Dividends
During
the nine months ended September 30, 2022, we recorded $
Common Stock
During
the nine months ended September 30, 2022, we cancelled shares that had been issued but were forfeited by choice or as a result
of certain forfeiture conditions (see NOTE 5). As a result, we decreased common stock by $, and increased additional paid in capital
by the same. As of the date of this filing, shares of common stock forfeited during the nine-month period ended December 31,
2021 had not yet been physically cancelled due to administrative delays. All forfeited shares have been deemed cancelled as of June 30,
2022. Also, during the nine months ended September 30, 2022, we repurchased shares from members of our then Board of Directors
in exchange for cash of $
During
the nine months ended September 30, 2021, we cancelled shares that had been issued but were subject to certain forfeiture
conditions. As a result of the forfeiture, we decreased common stock by $
As of September 30, 2022 and December 31, 2021, we had and shares of common stock issued and outstanding, respectively.
| 20 |
INVESTVIEW, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
AS OF SEPTEMBER 30, 2022
(Unaudited)
Options
During
the nine months ended September 30, 2022, we undertook to restructure unvested incentive equity awards previously granted to our senior
leadership team. The Company’s senior management team and board of directors unanimously agreed to surrender and terminate an aggregate
of outstanding unvested restricted shares and ungranted shares in exchange for the issuance of options to purchase
shares, vesting in equal amounts over a -year period, at an exercise price of $
Warrants
Transactions involving our warrants are summarized as follows:
| Weighted | ||||||||
| Number of | Average | |||||||
| Shares | Exercise Price | |||||||
| Warrants outstanding at December 31, 2021 | $ | |||||||
| Granted | $ | |||||||
| Canceled/Expired | $ | |||||||
| Exercised | $ | |||||||
| Warrants outstanding at September 30, 2022 | $ | |||||||
Details of our warrants outstanding as of September 30, 2022, is as follows:
| Exercise Price | Warrants Outstanding | Warrants Exercisable | Weighted
Average Contractual Life (Years) | |||||||||||
| $ | ||||||||||||||
Class B Units of Investview Financial Group Holdings, LLC
As
of September 30, 2022, and December 31, 2021, there were
NOTE 10 – COMMITMENTS AND CONTINGENCIES
In the ordinary course of business, we may be, or have been, involved in legal proceedings. During the nine months ended September 30, 2022, we were not involved in any material legal proceedings, however, during November 2021 we received a subpoena from the United States Securities and Exchange Commission (“SEC”) for the production of documents. We have reason to believe that the focus of the SEC’s inquiry involves whether certain federal securities laws were violated in connection with, among other things, the offer and sale of cryptocurrency products and the operation of our subscription-based multi-level marketing business now known as iGenius. In the subpoena, the SEC advised that the investigation does not mean that the SEC has concluded that we or anyone else has violated federal securities laws and or any other law. We believe that we have complied at all times with the federal securities laws. However, we are aware of the evolving SEC commentary and rulemaking process relative to the characterization of cryptocurrency products under federal securities laws that is sweeping through a large number of businesses that operate within the cryptocurrency sector. We intend to cooperate fully with the SEC’s investigation and will continue to work with outside counsel to review the matter.
| 21 |
INVESTVIEW, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
AS OF SEPTEMBER 30, 2022
(Unaudited)
We
generate revenue from the sale of cryptocurrency packages to our customers through an arrangement with a third-party supplier,
certain of which, until January 2022, included a product protection option provided by a third-party provider.
We
issued a promissory note to our former Chief Executive Officer, Joseph Cammarata, which, following certain modifications, on or about
March 30, 2021, was restated in the principal amount of $
On
March 22, 2021, we entered into Securities Purchase Agreements to purchase
NOTE 11 – INCOME TAXES
For the periods ended September 30, 2022, and September 30, 2021, the Company used a discrete effective tax rate method for recording income taxes, as compared to an estimated full year annual effective tax rate method, as an estimate of the annual effective tax rate cannot be made.
Provision
for income taxes for the three and nine months ended September 30, 2022, was $
NOTE 12 – ACQUISITION & NONCONTROLLING INTEREST IN SUBSIDIARY
On
March 22, 2021, we entered into a Securities Purchase Agreement to purchase the operating assets and intellectual property rights of
MPower, a company controlled and partially owned by David B. Rothrock and James R. Bell, two of our board members,
in exchange for nonvoting Class B Units of Investview Financial Group Holdings, LLC (“Units”). This acquisition
closed on September 3, 2021, and we acquired an office lease, furniture and fixtures, and Prodigio, a proprietary software-based trading
platform with applications in the brokerage industry. The Units can be exchanged at any time, within
The
Company determined that as of the date of the acquisition, the fair value of the Prodigio Trading Platform software was $
| Purchase price (fair value of Units) | $ | |||
| Intangible asset (Prodigio software) | ||||
| Loss on asset acquisition | $ |
NOTE 13 – SUBSEQUENT EVENTS
In accordance with ASC Topic 855, Subsequent Events, we have evaluated subsequent events through the date of this filing and have determined that there are no subsequent events that require disclosure.
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ITEM 2 – MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Forward-Looking Statements
The following discussion should be read in conjunction with our consolidated financial statements and notes to our financial statements included elsewhere in this report. This discussion contains forward-looking statements that involve risks and uncertainties. When the words “believe,” “expect,” “plan,” “project,” “estimate,” and similar expressions are used, they identify forward-looking statements. These forward-looking statements are based on management’s current beliefs and assumptions and information currently available to management, and involve known and unknown risks, uncertainties, and other factors that may cause the actual results, performance, or achievements to be materially different from any future results, performance, or achievements expressed or implied by these forward-looking statements. Information concerning factors that could cause our actual results to differ materially from these forward-looking statements can be found in our periodic reports filed with the Securities and Exchange Commission (“SEC”). The forward-looking statements included in this report are made only as of the date of this report. We disclaim any obligation to update any forward-looking statements whether as a result of new information, future events, or otherwise.
Business Overview
We operate a financial technology (FinTech) services company in several different businesses. We deliver multiple products and services through a direct selling network, also known as multi-level marketing, of independent distributors that offer our products and services through a subscription-based revenue model to our distributors, as well as by our distributors to a large base of customers that we refer to as “members”. Through this business, we provide research, education, and investment tools designed to assist the self-directed investor in successfully navigating the financial markets. These services include research and education regarding equities, options, FOREX, ETFs, binary options, and cryptocurrency. In addition to research and education, we also offer full education and software applications to assist the individual in debt reduction, increased savings, budgeting, and proper tax management. Each product subscription includes a core set of trading tools and research along with the personal finance management suite to provide an individual with complete access to the information necessary to cultivate and manage his or her financial situation. In addition to our education subscriptions, through a distribution arrangement we have with a third party, we have provided our members with an opportunity to purchase through such third party, a specialty form of adaptive digital currency called “ndau”. Through our direct selling model, we compensate our distributors with commissions under a standard bonus plan that allows for discretionary bonuses based on performance.
We also operate a blockchain technology business that provides leading-edge research, development, and FinTech services involving the management of digital asset technologies with a focus on Bitcoin mining and the new generation of digital assets. As well, in order to, among other things, commercialize on the proprietary trading platform we recently acquired from MPower Trading Systems, LLC (“MPower”), take advantage of the market’s increasing acceptance and expansion of the ownership and use of digital currencies as an investable asset class, subject to applicable regulatory limitations, and to proactively respond to increasing regulatory scrutiny relative to cryptocurrency products, we have adopted a growth plan that contemplates the establishment of a suite of financial service businesses that would offer, among others, self-directed brokerage services, institutional trade execution services, innovative advisory services (RIA, CTA), and codeless algorithmic trading technologies. It was our expectation to develop these businesses over time, starting with the acquisition of a broker-dealer that could serve as a platform for growth. Towards that end, in March 2021 we entered into an agreement to acquire a brokerage firm from an affiliate of the former Chief Executive Officer of the Company. However, having been unable to secure the requisite FINRA approval by the expiration of that agreement, we terminated the transaction on June 14, 2022, and commenced a search for alternative acquisitions within the brokerage industry. Further, until we are able to start this business, we recently elected to winddown the registration of a dormant investment advisor and commodity trading advisor we own as we concluded there to be no material benefit to retaining an interest in these regulated businesses until we are able to launch our broader-based financial services model.
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Results of Operations
Three Months Ended September 30, 2022 Compared to Three Months Ended September 30, 2021
Revenues
| Three Months Ended September 30, | Increase | |||||||||||
| 2022 | 2021 | (Decrease) | ||||||||||
| (unaudited) | (unaudited) | |||||||||||
| Subscription revenue, net of refunds, incentives, credits, and chargebacks | $ | 11,823,581 | $ | 14,034,214 | $ | (2,210,633 | ) | |||||
| Mining revenue | 2,777,634 | 8,338,759 | (5,561,125 | ) | ||||||||
| Cryptocurrency revenue | 351,433 | 998,127 | (646,694 | ) | ||||||||
| Miner repair revenue | 43,511 | - | 43,511 | |||||||||
| Digital wallet revenue | - | - | - | |||||||||
| Total revenue, net | $ | 14,996,159 | $ | 23,371,100 | $ | (8,374,941 | ) | |||||
Revenue, net, decreased $8,374,941, or 36%, from $23,371,100 for the three months ended September 30, 2021, to $14,996,159 for the three months ended September 30, 2022. The decrease can be explained by $2.2 million, $5.6 million and $647 thousand decreases in our subscription revenue, mining revenue, and cryptocurrency revenue, respectively, offset by a $44 thousand increase in our miner repair revenue. The $2.2 million (16%) decrease in subscription revenue was due to negative market sentiment in the cryptocurrency markets resulting in decreased membership; the $5.6 million (67%) decrease in mining revenue was a result of the decrease in the value of Bitcoin and an increase in the Bitcoin mining difficulty levels, as well as, older and less efficient Bitcoin mining equipment taken offline for analysis and repairs during the period; and the $647 thousand decrease in cryptocurrency revenue was due to an overall decrease in the number of sales of NDAU packages.
Operating Costs and Expenses
| Three Months Ended September 30, | Increase | |||||||||||
| 2022 | 2021 | (Decrease) | ||||||||||
| (unaudited) | (unaudited) | |||||||||||
| Cost of sales and service | $ | 2,144,733 | $ | 2,101,490 | $ | 43,243 | ||||||
| Commissions | 6,551,195 | 9,934,991 | (3,383,796 | ) | ||||||||
| Selling and marketing | 17,874 | 26,484 | (8,610 | ) | ||||||||
| Salary and related | 2,359,225 | 1,153,402 | 1,205,823 | |||||||||
| Professional fees | 601,367 | 132,778 | 468,589 | |||||||||
| Impairment expense | 625 | 140,233 | (139,608 | ) | ||||||||
| Loss (gain) on disposal of assets | (118,041 | ) | - | (118,041 | ) | |||||||
| General and administrative | 2,916,167 | 54,097,580 | (51,181,413 | ) | ||||||||
| Total operating costs and expenses | $ | 14,473,145 | $ | 67,586,958 | $ | (53,113,813 | ) | |||||
Operating costs decreased $53,113,813, or 79%, from $67,586,958 for the three months ended September 30, 2021, to $14,473,145 for the three months ended September 30, 2022. $51,619,440 of that decrease was attributable to a non-recurring and non-cash charge arising in the three months ended September 30, 2021, from the manner in which the acquisition of the Prodigio Smart Trading Platform, as well as the other operating assets and intellectual property rights of MPower, was accounted for on our financial statements. After removing the charge relating to the September 3, 2021 transaction with MPower, the remaining decrease of $1,494,373 can be explained by a decrease in commissions of $3.4 million, which was a result of decreases in our subscription and cryptocurrency revenue, offset by an increase in salary and related costs of $1.2 million due to the recognition of stock based compensation during the period, an increase in professional fees of $469 thousand due to increased legal and consulting expenses, and an increase in general and administrative costs of $438 thousand which was mainly driven by increased depreciation, as we continue to purchase and deploy additional mining equipment over time.
Other Income and Expenses
| Three Months Ended September 30, | ||||||||||||
| 2022 | 2021 | Change | ||||||||||
| (unaudited) | (unaudited) | |||||||||||
| Gain (loss) on debt extinguishment | $ | - | $ | 21,349 | $ | (21,349 | ) | |||||
| Gain (loss) on fair value of derivative liability | 2,319 | 47,017 | (44,698 | ) | ||||||||
| Realized gain (loss) on cryptocurrency | (318,000 | ) | 1,651,024 | (1,969,024 | ) | |||||||
| Interest expense | (4,726 | ) | (6,000 | ) | 1,274 | |||||||
| Interest expense, related parties | (310,595 | ) | (763,791 | ) | 453,196 | |||||||
| Other income (expense) | 49,872 | 22,168 | 27,704 | |||||||||
| Total other income (expense) | $ | (581,130 | ) | $ | 971,767 | $ | (1,552,897 | ) | ||||
We recorded other expense of $581,130 for the three months ended September 30, 2022, which was a difference of $1,552,897, or 160%, from the prior period other income of $971,767. The change is due to a realized loss recorded on cryptocurrency in the current period of $318 thousand compared to a realized gain of $1.7 million in the prior period, offset by a decrease in related party interest expense recorded in the current period versus the prior period ($311 thousand for the three months ended September 30, 2022 compared to $764 thousand for the three months ended September 30, 2021).
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Nine Months Ended September 30, 2022 Compared to Nine Months Ended September 30, 2021
Revenues
| Nine Months Ended September 30, | Increase | |||||||||||
| 2022 | 2021 | (Decrease) | ||||||||||
| (unaudited) | (unaudited) | |||||||||||
| Subscription revenue, net of refunds, incentives, credits, and chargebacks | $ | 36,658,790 | $ | 32,833,628 | $ | 3,825,162 | ||||||
| Mining revenue | 9,412,751 | 25,047,680 | (15,634,929 | ) | ||||||||
| Cryptocurrency revenue | 1,308,809 | 8,168,295 | (6,859,486 | ) | ||||||||
| Miner repair revenue | 123,621 | - | 123,621 | |||||||||
| Digital wallet revenue | 5,868 | - | 5,868 | |||||||||
| Fee revenue | - | 2,032 | (2,032 | ) | ||||||||
| Total revenue, net | $ | 47,509,839 | $ | 66,051,635 | $ | (18,541,796 | ) | |||||
Revenue, net, decreased $18,541,796, or 28%, from $66,051,635 for the nine months ended September 30, 2021, to $47,509,839 for the nine months ended September 30, 2022. The decrease can be explained by $15.6 million and $6.9 million decreases in our mining revenue and cryptocurrency revenue, respectively, offset by a $3.8 million increase in our net subscription revenue. The $3.8 million (12%) increase in subscription revenue was due to significant product enhancements and expansion into new markets globally, partially offset by negative market sentiment, mainly in the cryptocurrency markets; the $15.6 million (62%) decrease in mining revenue was a result of the decrease in the value of Bitcoin and an increase in the Bitcoin mining difficulty levels, as well as, older and less efficient Bitcoin mining equipment taken offline for analysis and repairs during the period; and the $6.9 million decrease in cryptocurrency revenue was due to an overall decrease in the number of sales of NDAU packages.
Operating Costs and Expenses
| Nine Months Ended September 30, | Increase | |||||||||||
| 2022 | 2021 | (Decrease) | ||||||||||
| (unaudited) | (unaudited) | |||||||||||
| Cost of sales and service | $ | 5,873,214 | $ | 7,186,149 | $ | (1,312,935 | ) | |||||
| Commissions | 20,380,676 | 23,802,291 | (3,421,615 | ) | ||||||||
| Selling and marketing | 53,139 | 93,984 | (40,845 | ) | ||||||||
| Salary and related | 5,215,833 | 3,715,868 | 1,499,965 | |||||||||
| Professional fees | 2,350,687 | 1,445,143 | 905,544 | |||||||||
| Impairment expense | 7,008 | 674,671 | (667,663 | ) | ||||||||
| Loss (gain) on disposal of assets | (389,550 | ) | - | (389,550 | ) | |||||||
| General and administrative | 7,611,867 | 57,961,461 | (50,349,594 | ) | ||||||||
| Total operating costs and expenses | $ | 41,102,874 | $ | 94,879,567 | $ | (53,776,693 | ) | |||||
Operating costs decreased $53,776,693, or 57%, from $94,879,567 for the nine months ended September 30, 2021, to $41,102,874 for the nine months ended September 30, 2022. $51,619,440 of that decrease was attributable to a non-recurring and non-cash charge arising in the nine months ended September 30, 2021, from the manner in which the acquisition of the Prodigio Smart Trading Platform, as well as the other operating assets and intellectual property rights of MPower, was accounted for on our financial statements. After removing the charge relating to the September 3, 2021 transaction with MPower, the remaining decrease of $2,157,253 can be explained by a decrease in our cost of sales and services of $1.3 million due to the relocation of our miners and a related decrease in our mining costs that included hosting, electrical and power costs, a decrease in commissions of $3.4 million mainly due to lower cryptocurrency sales, and a decrease in impairment expense of $668 thousand where in the prior period we wrote-off a significant amount of intangible assets as a result of recoverability issues, with only a $7 thousand write-off of fixed assets occurring in the current period. These decreases were offset by an increase in salary and related costs of $1.5 million as a result of stock-based compensation recognized during the period and by an increase in professional fees of $906 thousand due to higher legal and consulting fees, and an increase in general and administrative costs of $1.3 million which was mainly driven by depreciation, as we purchased and deployed additional mining equipment during the current period.
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Other Income and Expenses
| Nine Months Ended September 30, | ||||||||||||
| 2022 | 2021 | Change | ||||||||||
| (unaudited) | (unaudited) | |||||||||||
| Gain (loss) on debt extinguishment | $ | 455 | $ | 433,152 | $ | (432,697 | ) | |||||
| Gain (loss) on fair value of derivative liability | 40,155 | 98,928 | (58,733 | ) | ||||||||
| Realized gain (loss) on cryptocurrency | (1,338,597 | ) | 892,266 | (2,230,863 | ) | |||||||
| Interest expense | (14,024 | ) | (17,803 | ) | 3,779 | |||||||
| Interest expense, related parties | (2,339,729 | ) | (1,897,557 | ) | (442,172 | ) | ||||||
| Other income (expense) | 107,725 | (64,734 | ) | 172,459 | ) | |||||||
| Total other income (expense) | $ | (3,544,015 | ) | $ | (555,748 | ) | $ | (2,988,267 | ) | |||
We recorded other expense of $3,544,015 for the nine months ended September 30, 2022, which was a difference of $2,988,267, or 538%, from the prior period other expense of $555,748. The change is due to a minimal gain on debt extinguishment recorded in the current period compared to a gain of $433 thousand recorded in the prior period, a realized loss recorded on cryptocurrency in the current period of $1.3 million compared to a realized gain of $892 thousand in the prior period, and more related party interest expense recorded in current period versus the prior period ($2.3 million for the nine months ended September 30, 2022 compared to $1.9 million for the nine months ended September 30, 2021). Amounts recorded in related party interest expense included the amortization of debt discounts, which was being recognized over the term of the debt, however, during the nine months ended September 30, 2022 we repaid two of our related party notes early, which resulted in the recognition of $1.2 million of the amortization of the related debt discount amounts into interest.
Liquidity and Capital Resources
During the nine months ended September 30, 2022, we recorded net income of $1,858,642 and generated $7,334,474 in cash through our operating activities. We used this cash, as well as other cash on hand, to fund operations, fund the purchase of $15,265,360 worth of fixed assets, to repay $2,718,142 worth of related party payable, and to repurchase shares for $1,724,008. As a result, our cash, cash equivalents, and restricted cash decreased by $12,528,341 to $20,088,565 as compared to $32,616,906 at the beginning of the fiscal year. As of September 30, 2022, our current assets exceeded our current liabilities to result in working capital of $14,565,190. We believe we will have sufficient resources, including cash flow from operations and access to capital markets, to meet debt service obligations in a timely manner and be able to meet our short-term business objectives.
Critical Accounting Policies
Basis of Presentation
Our policy is to prepare our financial statements on the accrual basis of accounting in accordance with accounting principles generally accepted in the United States of America. Prior to September 30, 2021 we operated the Company on a March 31 fiscal year end. Effective September 30, 2021 we changed our fiscal year to December 31.
The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with the rules and regulations (Regulation S-X) of the Securities and Exchange Commission (the “SEC”) and with the instructions to Form 10-Q. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. The results of operations for the nine months ended September 30, 2022, are not necessarily indicative of the operating results that may be expected for the filing of our December 31, 2022 Form 10-K. These unaudited condensed consolidated financial statements should be read in conjunction with the December 31, 2021 consolidated financial statements and notes thereto included in our Annual Report on Form 10-KT for the nine months ended December 31, 2021.
Principles of Consolidation
The consolidated financial statements include the accounts of Investview, Inc., and our wholly owned subsidiaries: iGenius, LLC (formerly Kuvera, LLC), Kuvera France S.A.S (through its closure date in June of 2021), Apex Tek, LLC (formerly Razor Data, LLC), SAFETek, LLC (formerly WealthGen Global, LLC), S.A.F.E. Management, LLC, United Games, LLC, United League, LLC, Investment Tools & Training, LLC, iGenius Global LTD (formerly Kuvera (N.I.) LTD), Investview Financial Group Holdings, LLC, and Investview MTS, LLC. All intercompany transactions and balances have been eliminated in consolidation.
| 26 |
Use of Estimates
The preparation of these financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates.
Revenue Recognition
Subscription Revenue
Most of our revenue is generated by subscription sales and payment is received at the time of purchase. We recognize subscription revenue in accordance with ASC 606-10 where revenue is measured based on a consideration specified in a contract with a customer and recognized when we satisfy the performance obligation specified in each contract. Our performance obligation is to provide services over a fixed subscription period; therefore, we recognize revenue ratably over the subscription period and deferred revenue is recorded for the portion of the subscription period subsequent to each reporting date. Additionally, we offer a designated trial period to first time subscription customers, during which a full refund can be requested if a customer does not wish to continue with the subscription. Revenues are deferred during the trial period as collection is not probable until that time has passed. Revenues are presented net of refunds, sales incentives, credits, and known and estimated credit card chargebacks. As of September 30, 2022 and December 31, 2021 our deferred revenues were $2,046,443 and $3,288,443, respectively.
Mining Revenue
Through our wholly owned subsidiary, SAFETek, LLC, we leased equipment under a sale-leaseback arrangement. However, in June of 2020, we cancelled all leases and purchased all of the rights and obligations under the leases, which included obtaining ownership of all equipment. We use the equipment on blockchain networks to validate and add blocks of transactions to blockchain ledgers (commonly referred to as “mining”). As compensation for our mining activities, we are issued fees from processors and/or block rewards that are newly created cryptocurrency units granted to us. Our mining activities constitute the principal operations of SAFETek, LLC. Because we do not have contracts, nor do we have customers associated with our mining revenue, we recognize revenue when fees and/or rewards are settled, or ultimately granted to us as a result of our mining activities.
Cryptocurrency Revenue
We generate revenue from the sale of cryptocurrency packages to our customers through an arrangement with a third-party supplier with whom our Chairman is affiliated (see Note 5-Related Party Transactions). The various packages include different amounts of coin with differing rates of returns and terms and, in some cases prior to January 2022, included a product protection option that allows the purchaser to protect their initial purchase price. In January 2022, we suspended any further offering of the product protection option after the third-party provider of that protection package was unable to comply with our standard vendor compliance protocols, citing certain offshore confidentiality entitlements. That suspension will remain in place until we are able to further validate the continued integrity of the product protection and the vendor’s ability to honor its commitments to our members.
We recognize cryptocurrency revenue in accordance with ASC 606-10 where revenue is measured based on a consideration specified in a contract with a customer and recognized when we satisfy the performance obligation specified in each contract. Our performance obligation is to arrange for the third-parties to provide coin and protection (if applicable) to our customers and payment is received from our customers at the time of order placement. All customers are given two weeks to request a refund, therefore we record a customer advance on our balance sheet upon receipt of payment. After the two weeks have passed from order placement, we request our third-party suppliers to deliver coin and protection (if applicable), at which time we recognize revenue and the amounts due to our suppliers on our books. As of September 30, 2022 and December 31, 2021 our customer advances related to cryptocurrency revenue were $142,070 and $75,702, respectively.
Fee Revenue
We generate minimal fee revenue from our customers through SAFE Management, our subsidiary licensed as a Registered Investment Advisor and Commodities Trading Advisor. We recognize fee revenue in accordance with ASC 606-10 where revenue is measured based on a consideration specified in a contract with a customer and recognized when we satisfy the performance obligation specified in each contract. Our performance obligation is to deliver fully managed trading services to individuals who do not meet the requirements of Qualified Investors and who lack the time to trade for themselves. We recognize fee revenue as our performance obligation is met and we receive payment for such advisory fees in the month following recognition. However, since these businesses were largely dormant, during 2022, we elected to winddown and withdraw the SAFE Management state and NFA registrations, as we concluded there to be no material benefit to retaining an interest in these regulated businesses until we are able to launch our broader-based financial services model.
Miner Repair Revenue
Through our wholly owned subsidiary, SAFETek, LLC, we repair broken mining equipment for sale to third-party customers. We recognize miner repair revenue in accordance with ASC 606-10 where revenue is measured based on a consideration specified in a contract with a customer and recognized when we satisfy the performance obligation specified in each contract. Our performance obligation is to deliver the promised goods to our customers.
| 27 |
Digital Wallet Revenue
We generate revenue from the sale of digital wallets to our customers through an arrangement with a third-party supplier. We offer three tiers of wallets which include different features. The digital wallets are delivered by a third-party supplier.
We recognize digital wallet revenue in accordance with ASC 606-10 where revenue is measured based on a consideration specified in a contract with a customer and recognized when we satisfy the performance obligation specified in each contract. Our performance obligation is to arrange for the third-parties to provide the wallet to our customers and payment is received from our customers at the time of order placement.
Revenue generated for the nine months ended September 30, 2022, is as follows:
| Subscription Revenue | Cryptocurrency Revenue | Mining Revenue | Miner Repair Revenue | Digital Wallet Revenue | Total | |||||||||||||||||||
| Gross billings/receipts | $ | 39,087,141 | $ | 2,548,316 | $ | 9,412,751 | $ | 123,621 | $ | 7,157 | $ | 51,178,986 | ||||||||||||
| Refunds, incentives, credits, and chargebacks | (2,428,351 | ) | - | - | - | - | (2,428,351 | ) | ||||||||||||||||
| Amounts paid to providers | - | (1,239,507 | ) | - | - | (1,289 | ) | (1,240,796 | ) | |||||||||||||||
| Net revenue | $ | 36,658,790 | $ | 1,308,809 | $ | 9,412,751 | $ | 123,621 | $ | 5,868 | $ | 47,509,839 | ||||||||||||
For the nine months ended September 30, 2022 foreign and domestic revenues were approximately $32.2 million and $15.3 million, respectively.
Revenue generated for the nine months ended September 30, 2021, is as follows:
| Subscription Revenue | Cryptocurrency Revenue | Mining Revenue | Fee Revenue | Total | ||||||||||||||||
| Gross billings/receipts | $ | 34,843,588 | $ | 20,082,329 | $ | 25,047,680 | $ | 2,032 | $ | 79,975,629 | ||||||||||
| Refunds, incentives, credits, and chargebacks | (2,009,960 | ) | - | - | - | (2,009,960 | ) | |||||||||||||
| Amounts paid to providers | - | (11,914,034 | ) | - | - | (11,914,034 | ) | |||||||||||||
| Net revenue | $ | 32,833,628 | $ | 8,168,295 | $ | 25,047,680 | $ | 2,032 | $ | 66,051,635 | ||||||||||
For the nine months ended September 30, 2021 foreign and domestic revenues were approximately $33.1 million and $33.0 million, respectively.
Revenue generated for the three months ended September 30, 2022, is as follows:
| Subscription Revenue | Cryptocurrency Revenue | Mining Revenue | Miner Repair Revenue | Digital Wallet Revenue | Total | |||||||||||||||||||
| Gross billings/receipts | $ | 12,638,375 | $ | 673,933 | $ | 2,777,634 | $ | 43,511 | $ | - | $ | 16,133,454 | ||||||||||||
| Refunds, incentives, credits, and chargebacks | (814,794 | ) | - | - | - | - | (814,794 | ) | ||||||||||||||||
| Amounts paid to providers | - | (322,500 | ) | - | - | - | (322,500 | ) | ||||||||||||||||
| Net revenue | $ | 11,823,581 | $ | 351,433 | $ | 2,777,634 | $ | 43,511 | $ | - | $ | 14,996,159 | ||||||||||||
For the three months ended September 30, 2022 foreign and domestic revenues were approximately $10.3 million and $4.7 million, respectively.
Revenue generated for the three months ended September 30, 2021, is as follows:
| Subscription
Revenue | Cryptocurrency Revenue | Mining Revenue | Fee
Revenue | Total | ||||||||||||||||
| Gross billings/receipts | $ | 14,904,004 | $ | 2,329,566 | $ | 8,338,759 | $ | - | $ | 25,572,329 | ||||||||||
| Refunds, incentives, credits, and chargebacks | (869,790 | ) | - | - | - | (869,790 | ) | |||||||||||||
| Amounts paid to providers | - | (1,331,439 | ) | - | - | (1,331,439 | ) | |||||||||||||
| Net revenue | $ | 14,034,214 | $ | 998,127 | $ | 8,338,759 | $ | - | $ | 23,371,100 | ||||||||||
For the three months ended September 30, 2021 foreign and domestic revenues were approximately $13.6 million and $9.8 million, respectively.
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Recently Issued Accounting Pronouncements
We have noted no recently issued accounting pronouncements that we have not yet adopted that we believe are applicable or would have a material impact on our financial statements.
Off-Balance Sheet Arrangements
We do not have any off-balance sheet arrangements that are reasonably likely to have a current or future effect on our financial condition, revenues, and results of operations, liquidity, or capital expenditures.
ITEM 3 – QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
We are a smaller reporting company as defined by Rule 12b-2 of the Securities Exchange Act of 1934 and, as such, are not required to provide the information under this item.
ITEM 4 – CONTROLS AND PROCEDURES
Evaluation of Disclosure Controls and Procedures
Our management, with the participation of our Chief Executive Officer and Chief Financial Officer, evaluated the effectiveness of our disclosure controls and procedures (as defined in Rule 13a-15 under the Securities Exchange Act of 1934 (the “Exchange Act”) as of the end of the period covered by this Quarterly Report on Form 10-Q. In designing and evaluating the disclosure controls and procedures, management recognizes that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives. In addition, the design of disclosure controls and procedures must reflect the fact that there are resource constraints and that management is required to apply its judgment in evaluating the benefits of possible controls and procedures relative to their costs.
Our disclosure controls and procedures are designed to provide reasonable, not absolute, assurance that the objectives of our disclosure control system are met. Because of inherent limitations in all control systems, no evaluation of controls can provide absolute assurance that all control issues, if any, within a company have been detected. Our Chief Executive Officer and Chief Financial Officer have concluded, based on their evaluation as of the end of the period covered by this report, that our disclosure controls and procedures were effective.
Changes in Internal Controls
There were no changes in our internal controls over financial reporting during the fiscal quarter ended September 30, 2022, that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.
PART II – OTHER INFORMATION
ITEM 1 – LEGAL PROCEEDINGS
From time to time, the Company and our operating subsidiaries are involved in claims, proceedings and litigation, and subject to certain material risk factors, including those matters set forth in Item 3 of our Annual Report on Form 10-KT for the nine months ended December 31, 2021, as well as in any other reports filed by us with the Securities and Exchange Commission.
| 29 |
ITEM 1.A – RISK FACTORS
There have been no material changes in the risk factors disclosed by us under Part I, Item 1A. Risk Factors contained in the Annual Report on Form 10-KT for the nine months ended December 31, 2021, as updated within our Quarterly Report on Form 10-Q for the quarter ended March 31, 2022, and Quarterly Report on Form 10-Q for the quarter ended June 30, 2022.
ITEM 2 – UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS
None.
ITEM 3 – DEFAULTS UPON SENIOR SECURITIES
None.
ITEM 4 – MINE SAFETY DISCLOSURES
Not applicable.
ITEM 5 – OTHER INFORMATION
None.
| 30 |
ITEM 6 – EXHIBITS
The following exhibits are filed as a part of this report:
| Exhibit Number* |
Title of Document | Location | ||
| Item 31 | Rule 13a-14(a)/15d-14(a) Certifications | |||
| 31.01 | Certification of Principal Executive Officer Pursuant to Rule 13a-14 | This filing. | ||
| 31.02 | Certification of Principal Financial Officer Pursuant to Rule 13a-14 | This filing. | ||
| Item 32 | Section 1350 Certifications | |||
| 32.01 | Certification of Chief Executive Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 | This filing. | ||
| 32.02 | Certification of Chief Financial Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 | This filing. | ||
| Item 101*** | Interactive Data File | |||
| 101.INS | Inline XBRL Instance Document | This filing. | ||
| 101.SCH | Inline XBRL Taxonomy Extension Schema | This filing. | ||
| 101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase | This filing. | ||
| 101.DEF | Inline XBRL Taxonomy Extension Definition Linkbase | This filing. | ||
| 101.LAB | Inline XBRL Taxonomy Extension Label Linkbase | This filing. | ||
| 101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase | This filing. | ||
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) | This filing. |
| * | All exhibits are numbered with the number preceding the decimal indicating the applicable SEC reference number in Item 601 and the number following the decimal indicating the sequence of the particular document. Omitted numbers in the sequence refer to documents previously filed as an exhibit. |
| *** | Users of this data are advised that, pursuant to Rule 406T of Regulation S-T, these interactive data files are deemed not filed or part of a registration statement or Annual Report for purposes of Sections 11 or 12 of the Securities Act of 1933 or Section 18 of the Exchange Act of 1934 and otherwise are not subject to liability. |
| 31 |
SIGNATURE PAGE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| INVESTVIEW, INC. | ||
| Dated: November 14, 2022 | By: | /s/ Victor M. Oviedo |
| Victor M. Oviedo | ||
| Chief Executive Officer | ||
| (Principal Executive Officer) | ||
| Dated: November 14, 2022 | By: | /s/ Ralph R. Valvano |
| Ralph R. Valvano | ||
| Chief Financial Officer | ||
| (Principal Financial Officer and Accounting Officer) | ||
| 32 |
Exhibit 31.01
CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER
PURSUANT TO SECTION 302 OF THE
SARBANES-OXLEY ACT OF 2002
I, Victor M. Oviedo, certify that:
1. I have reviewed this Quarterly Report on Form 10-Q for the quarter ended September 30, 2022 of Investview, Inc.;
2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
c) evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures as of the end of the period covered by this report based on such evaluation;
d) disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting;
5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent function):
a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
| Dated: November 14, 2022 | |
| /s/ Victor M. Oviedo | |
| Victor M. Oviedo | |
| Chief Executive Officer (Principal Executive Officer) |
Exhibit 31.02
CERTIFICATION OF PRINCIPAL FINANCIAL AND ACCOUNTING OFFICER
PURSUANT TO SECTION 302 OF THE
SARBANES-OXLEY ACT OF 2002
I, Ralph R. Valvano, certify that:
1. I have reviewed this Quarterly Report on Form 10-Q for the quarter ended September 30, 2022 of Investview, Inc.;
2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
c) evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures as of the end of the period covered by this report based on such evaluation;
d) disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting;
5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent function):
a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
| Dated: November 14, 2022 | |
| /s/ Ralph R. Valvano | |
| Ralph R. Valvano | |
| Chief Financial Officer (Principal Financial and Accounting Officer) | |
Exhibit 32.01
CERTIFICATION PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002
In connection with the Quarterly Report on Form 10-Q of Investview, Inc. (the “Company”) for the Quarter ended September 30, 2022, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Victor M. Oviedo, the Chief Executive Officer, of the Company, do hereby certify pursuant to 18 U.S.C. §1350, as adopted pursuant to §906 of the Sarbanes-Oxley Act of 2002, to the best of my knowledge and belief that:
(1) the Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and
(2) the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
Dated: November 14, 2022
| /s/ Victor M. Oviedo | |
| Victor M. Oviedo | |
| Chief Executive Officer (Principal Executive Officer) |
Exhibit 32.02
CERTIFICATION PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002
In connection with the Quarterly Report on Form 10-Q of Investview, Inc. (the “Company”) for the Quarter ended September 30, 2022, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Ralph R. Valvano, the Chief Financial Officer, of the Company, do hereby certify pursuant to 18 U.S.C. §1350, as adopted pursuant to §906 of the Sarbanes-Oxley Act of 2002, to the best of my knowledge and belief that:
(1) the Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and
(2) the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
Dated: November 14, 2022
| /s/ Ralph R. Valvano | |
| Ralph R. Valvano | |
| Chief Financial Officer (Principal Financial and Accounting Officer) | |
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares |
Sep. 30, 2022 |
Dec. 31, 2021 |
|---|---|---|
| Statement of Financial Position [Abstract] | ||
| Preferred stock, par value | $ 0.001 | $ 0.001 |
| Preferred stock, shares authorized | 50,000,000 | 50,000,000 |
| Preferred stock, shares issued | 252,192 | 252,192 |
| Preferred stock, shares outstanding | 252,192 | 252,192 |
| Common stock, par value | $ 0.001 | $ 0.001 |
| Common stock, shares authorized | 10,000,000,000 | 10,000,000,000 |
| Common stock, shares issued | 2,641,275,489 | 2,904,210,762 |
| Common stock, shares outstanding | 2,641,275,489 | 2,904,210,762 |
Condensed Consolidated Statements of Operations and Other Comprehensive Income (Loss) (Unaudited) - USD ($) |
3 Months Ended | 9 Months Ended | ||
|---|---|---|---|---|
Sep. 30, 2022 |
Sep. 30, 2021 |
Sep. 30, 2022 |
Sep. 30, 2021 |
|
| Revenue: | ||||
| Total revenue, net | $ 14,996,159 | $ 23,371,100 | $ 47,509,839 | $ 66,051,635 |
| Operating costs and expenses: | ||||
| Cost of sales and service | 2,144,733 | 2,101,490 | 5,873,214 | 7,186,149 |
| Commissions | 6,551,195 | 9,934,991 | 20,380,676 | 23,802,291 |
| Selling and marketing | 17,874 | 26,484 | 53,139 | 93,984 |
| Salary and related | 2,359,225 | 1,153,402 | 5,215,833 | 3,715,868 |
| Professional fees | 601,367 | 132,778 | 2,350,687 | 1,445,143 |
| Impairment expense | 625 | 140,233 | 7,008 | 674,671 |
| Loss (gain) on disposal of assets | (118,041) | (389,550) | ||
| General and administrative | 2,916,167 | 54,097,580 | 7,611,867 | 57,961,461 |
| Total operating costs and expenses | 14,473,145 | 67,586,958 | 41,102,874 | 94,879,567 |
| Net income (loss) from operations | 523,014 | (44,215,858) | 6,406,965 | (28,827,932) |
| Other income (expense): | ||||
| Gain (loss) on debt extinguishment | 21,349 | 455 | 433,152 | |
| Gain (loss) on fair value of derivative liability | 2,319 | 47,017 | 40,155 | 98,928 |
| Realized gain (loss) on cryptocurrency | (318,000) | 1,651,024 | (1,338,597) | 892,266 |
| Interest expense | (4,726) | (6,000) | (14,024) | (17,803) |
| Interest expense, related parties | (310,595) | (763,791) | (2,339,729) | (1,897,557) |
| Other income (expense) | 49,872 | 22,168 | 107,725 | (64,734) |
| Total other income (expense) | (581,130) | 971,767 | (3,544,015) | (555,748) |
| Income (loss) before income taxes | (58,116) | (43,244,091) | 2,862,950 | (29,383,680) |
| Income tax expense | (362,563) | (758) | (1,004,308) | (146,950) |
| Net income (loss) | (420,679) | (43,244,849) | 1,858,642 | (29,530,630) |
| Dividends on Preferred Stock | (204,835) | (204,835) | (614,505) | (534,176) |
| Net income (loss) applicable to common shareholders | (625,514) | (43,449,684) | 1,244,137 | (30,064,806) |
| Other comprehensive income (loss), net of tax: | ||||
| Foreign currency translation adjustments | (874) | (218) | (1,409) | |
| Total other comprehensive income (loss) | (874) | (218) | (1,409) | |
| Comprehensive income (loss) | $ (420,679) | $ (43,245,723) | $ 1,858,424 | $ (29,532,039) |
| Basic income (loss) per common share | $ (0.00) | $ (0.01) | $ 0.00 | $ (0.01) |
| Diluted income (loss) per common share | $ (0.00) | $ (0.01) | $ 0.00 | $ (0.01) |
| Basic weighted average number of common shares outstanding | 2,641,275,489 | 2,992,958,712 | 2,690,146,350 | 3,071,829,624 |
| Diluted weighted average number of common shares outstanding | 2,641,275,489 | 2,992,958,712 | 3,726,574,921 | 3,071,829,624 |
| Subscription Revenue [Member] | ||||
| Revenue: | ||||
| Total revenue, net | $ 11,823,581 | $ 14,034,214 | $ 36,658,790 | $ 32,833,628 |
| Mining Revenue [Member] | ||||
| Revenue: | ||||
| Total revenue, net | 2,777,634 | 8,338,759 | 9,412,751 | 25,047,680 |
| Cryptocurrency Revenue [Member] | ||||
| Revenue: | ||||
| Total revenue, net | 351,433 | 998,127 | 1,308,809 | 8,168,295 |
| Miner Repair Revenue [Member] | ||||
| Revenue: | ||||
| Total revenue, net | 43,511 | 123,621 | ||
| Digital Wallet Revenue [Member] | ||||
| Revenue: | ||||
| Total revenue, net | 5,868 | |||
| Fee Revenue [Member] | ||||
| Revenue: | ||||
| Total revenue, net | $ 2,032 | |||
Condensed Consolidated Statements of Stockholders' Equity (Deficit) (Unaudited) - USD ($) |
Preferred Stock [Member] |
Common Stock [Member] |
Additional Paid-in Capital [Member] |
AOCI Attributable to Parent [Member] |
Retained Earnings [Member] |
Total |
|---|---|---|---|---|---|---|
| Beginning balance, value at Dec. 31, 2020 | $ 56 | $ 3,237,481 | $ 34,615,895 | $ (19,330) | $ (50,855,326) | $ (13,021,224) |
| Begining balance, shares at Dec. 31, 2020 | 55,554 | 3,237,481,329 | ||||
| Preferred stock issued for cash | $ 48 | 1,198,777 | 1,198,825 | |||
| Preferred stock issued for cash, shares | 47,953 | |||||
| Preferred stock issued for cryptocurrency | 9,800 | 9,800 | ||||
| Preferred stock issued for cryptocurrency, shares | 392 | |||||
| Preferred stock issued for debt | $ 49 | 1,235,401 | 1,235,450 | |||
| Preferred stock issued for debt, shares | 49,418 | |||||
| Derivative liability recorded for warrants issued with preferred stock | (80,940) | (80,940) | ||||
| Common stock cancelled | $ (255,000) | 255,000 | ||||
| Common stock cancelled, shares | (255,000,000) | |||||
| Common stock issued for services and compensation | 592,978 | 592,978 | ||||
| Beneficial conversion feature | 1,550,000 | 1,550,000 | ||||
| Dividends | (124,506) | (124,506) | ||||
| Foreign currency translation adjustment | 273 | 273 | ||||
| Net income (loss) | 4,941,561 | 4,941,561 | ||||
| Ending balance, value at Mar. 31, 2021 | $ 153 | $ 2,982,481 | 39,376,911 | (19,057) | (46,038,271) | (3,697,783) |
| Ending balance, shares at Mar. 31, 2021 | 153,317 | 2,982,481,329 | ||||
| Beginning balance, value at Dec. 31, 2020 | $ 56 | $ 3,237,481 | 34,615,895 | (19,330) | (50,855,326) | (13,021,224) |
| Begining balance, shares at Dec. 31, 2020 | 55,554 | 3,237,481,329 | ||||
| Net income (loss) | $ (29,530,630) | |||||
| Common stock issued for services and compensation, shares | 11,500,000 | |||||
| Common stock forfeited, shares | 6,666,666 | 255,000,000 | ||||
| Class B units of subsidiary issued to a related party for asset acquisition | $ 58,859,440 | |||||
| Ending balance, value at Sep. 30, 2021 | $ 252 | $ 2,987,397 | 102,689,743 | (20,739) | (80,920,132) | 24,736,521 |
| Ending balance, shares at Sep. 30, 2021 | 252,192 | 2,987,397,303 | ||||
| Beginning balance, value at Mar. 31, 2021 | $ 153 | $ 2,982,481 | 39,376,911 | (19,057) | (46,038,271) | (3,697,783) |
| Begining balance, shares at Mar. 31, 2021 | 153,317 | 2,982,481,329 | ||||
| Preferred stock issued for cash | $ 98 | 2,441,627 | 2,441,725 | |||
| Preferred stock issued for cash, shares | 97,669 | |||||
| Preferred stock issued for cryptocurrency | $ 1 | 30,149 | 30,150 | |||
| Preferred stock issued for cryptocurrency, shares | 1,206 | |||||
| Derivative liability recorded for warrants issued with preferred stock | (127,520) | (127,520) | ||||
| Common stock issued for services and compensation | 11,500 | 977,891 | 989,391 | |||
| Dividends | (204,835) | (204,835) | ||||
| Foreign currency translation adjustment | (808) | (808) | ||||
| Net income (loss) | 8,772,658 | 8,772,658 | ||||
| Common stock issued for services and compensation, shares | 11,500,000 | |||||
| Common stock issued for warrant exercise | $ 64 | 6,370 | 6,434 | |||
| Common stock issued for warrant exercise, shares | 64,340 | |||||
| Derivative liability extinguished for warrants exercised | 10,156 | 10,156 | ||||
| Ending balance, value at Jun. 30, 2021 | $ 252 | $ 2,994,045 | 42,715,584 | (19,865) | (37,470,448) | 8,219,568 |
| Ending balance, shares at Jun. 30, 2021 | 252,192 | 2,994,045,669 | ||||
| Beginning balance, value at Mar. 31, 2021 | $ 153 | $ 2,982,481 | 39,376,911 | (19,057) | (46,038,271) | (3,697,783) |
| Begining balance, shares at Mar. 31, 2021 | 153,317 | 2,982,481,329 | ||||
| Common stock forfeited, shares | 33,333,333 | |||||
| Ending balance, value at Dec. 31, 2021 | $ 252 | $ 2,904,211 | 101,883,573 | (23,000) | (75,825,195) | 28,939,841 |
| Ending balance, shares at Dec. 31, 2021 | 252,192 | 2,904,210,762 | ||||
| Beginning balance, value at Jun. 30, 2021 | $ 252 | $ 2,994,045 | 42,715,584 | (19,865) | (37,470,448) | 8,219,568 |
| Begining balance, shares at Jun. 30, 2021 | 252,192 | 2,994,045,669 | ||||
| Common stock issued for services and compensation | 360,962 | 360,962 | ||||
| Dividends | (204,835) | (204,835) | ||||
| Foreign currency translation adjustment | (874) | (874) | ||||
| Net income (loss) | (43,244,849) | (43,244,849) | ||||
| Common stock issued for warrant exercise | $ 19 | 1,811 | 1,830 | |||
| Common stock issued for warrant exercise, shares | 18,300 | |||||
| Derivative liability extinguished for warrants exercised | 2,129 | 2,129 | ||||
| Common stock forfeited | $ (6,667) | 6,667 | ||||
| Common stock forfeited, shares | (6,666,666) | |||||
| Class B units of subsidiary issued to a related party for asset acquisition | 58,859,440 | 58,859,440 | ||||
| Contributed capital | 743,150 | 743,150 | ||||
| Ending balance, value at Sep. 30, 2021 | $ 252 | $ 2,987,397 | 102,689,743 | (20,739) | (80,920,132) | 24,736,521 |
| Ending balance, shares at Sep. 30, 2021 | 252,192 | 2,987,397,303 | ||||
| Beginning balance, value at Dec. 31, 2021 | $ 252 | $ 2,904,211 | 101,883,573 | (23,000) | (75,825,195) | 28,939,841 |
| Begining balance, shares at Dec. 31, 2021 | 252,192 | 2,904,210,762 | ||||
| Common stock cancelled | $ (150,000) | 150,000 | ||||
| Common stock cancelled, shares | (150,000,000) | |||||
| Common stock issued for services and compensation | 255,163 | 255,163 | ||||
| Dividends | (204,835) | (204,835) | ||||
| Foreign currency translation adjustment | 380 | 380 | ||||
| Net income (loss) | 2,379,029 | 2,379,029 | ||||
| Common stock repurchased from related parties | $ (43,102) | (1,680,906) | (1,724,008) | |||
| Common stock repurchased from related parties, shares | (43,101,939) | |||||
| Ending balance, value at Mar. 31, 2022 | $ 252 | $ 2,711,109 | 100,607,830 | (22,620) | (73,651,001) | 29,645,570 |
| Ending balance, shares at Mar. 31, 2022 | 252,192 | 2,711,108,823 | ||||
| Beginning balance, value at Dec. 31, 2021 | $ 252 | $ 2,904,211 | 101,883,573 | (23,000) | (75,825,195) | 28,939,841 |
| Begining balance, shares at Dec. 31, 2021 | 252,192 | 2,904,210,762 | ||||
| Common stock issued for services and compensation | $ 219,834 | |||||
| Net income (loss) | 1,858,642 | |||||
| Common stock forfeited, shares | 219,833,334 | |||||
| Ending balance, value at Sep. 30, 2022 | $ 252 | $ 2,641,275 | 103,380,124 | (23,218) | (74,581,058) | 31,417,375 |
| Ending balance, shares at Sep. 30, 2022 | 252,192 | 2,641,275,489 | ||||
| Beginning balance, value at Mar. 31, 2022 | $ 252 | $ 2,711,109 | 100,607,830 | (22,620) | (73,651,001) | 29,645,570 |
| Begining balance, shares at Mar. 31, 2022 | 252,192 | 2,711,108,823 | ||||
| Common stock cancelled | $ (69,834) | 69,834 | ||||
| Common stock cancelled, shares | (69,833,334) | |||||
| Common stock issued for services and compensation | 242,024 | 242,024 | ||||
| Dividends | (204,835) | (204,835) | ||||
| Foreign currency translation adjustment | (598) | (598) | ||||
| Contribution of crypto currency from related party | 1,185,821 | 1,185,821 | ||||
| Ending balance, value at Jun. 30, 2022 | $ 252 | $ 2,641,275 | 102,105,509 | (23,218) | (73,955,544) | 30,768,274 |
| Ending balance, shares at Jun. 30, 2022 | 252,192 | 2,641,275,489 | ||||
| Common stock issued for services and compensation | 1,274,615 | 1,274,615 | ||||
| Dividends | (204,835) | (204,835) | ||||
| Net income (loss) | (420,679) | (420,679) | ||||
| Ending balance, value at Sep. 30, 2022 | $ 252 | $ 2,641,275 | $ 103,380,124 | $ (23,218) | $ (74,581,058) | $ 31,417,375 |
| Ending balance, shares at Sep. 30, 2022 | 252,192 | 2,641,275,489 |
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) |
9 Months Ended | |
|---|---|---|
Sep. 30, 2022 |
Sep. 30, 2021 |
|
| CASH FLOWS FROM OPERATING ACTIVITIES: | ||
| Net income (loss) | $ 1,858,642 | $ (29,530,630) |
| Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ||
| Depreciation | 4,251,122 | 2,111,333 |
| Amortization of debt discount | 1,643,726 | 1,165,663 |
| Amortization of intangible assets | 27,989 | |
| Stock issued for services and other stock based compensation | 1,771,802 | 1,943,331 |
| Lease cost, net of repayment | (23,419) | 8,742 |
| (Gain) loss on asset acquisition | 27,439 | |
| (Gain) loss on debt extinguishment | (455) | (433,152) |
| (Gain) loss on Class B Units of subsidiary issued to a related party for asset acquisition | 51,619,440 | |
| (Gain) loss on disposal of fixed assets | (389,550) | |
| (Gain) loss on fair value of derivative liability | (40,155) | (98,928) |
| Realized (gain) loss on cryptocurrency | 1,338,597 | (892,266) |
| Impairment expense | 7,008 | 674,671 |
| Changes in operating assets and liabilities: | ||
| Receivables | (68,826) | (2,616,986) |
| Inventory | (371,796) | |
| Prepaid assets | (164,124) | 598,126 |
| Short-term advances | 145,000 | |
| Short-term advances from related parties | 500 | |
| Income tax paid in advance | (611,584) | |
| Other current assets | (2,907,972) | (9,494,056) |
| Deposits | (465,110) | |
| Accounts payable and accrued liabilities | 1,320,583 | 1,727,602 |
| Income tax payable | (807,827) | |
| Customer advance | 66,368 | 870,168 |
| Deferred revenue | (1,242,000) | 1,850,394 |
| Deferred tax liability | 994,308 | |
| Accrued interest | 14,024 | 17,803 |
| Accrued interest, related parties | 696,002 | 731,893 |
| Net cash provided by (used in) operating activities | 7,334,474 | 19,988,966 |
| CASH FLOWS FROM INVESTING ACTIVITIES: | ||
| Cash received for the disposal of fixed assets | 1,044,492 | |
| Cash paid for fixed assets | (15,265,360) | (1,471,487) |
| Net cash provided by (used in) investing activities | (14,220,868) | (1,471,487) |
| CASH FLOWS FROM FINANCING ACTIVITIES: | ||
| Proceeds from related party payables | 1,000,000 | |
| Repayments for related party payables | (2,718,142) | (1,107,819) |
| Repayments for debt | (729,016) | (919,703) |
| Payments for share repurchase | (1,724,008) | |
| Dividends paid | (470,563) | (258,215) |
| Proceeds from the sale of preferred stock | 3,640,550 | |
| Proceeds from the exercise of warrants | 8,264 | |
| Net cash provided by (used in) financing activities | (5,641,729) | 2,363,077 |
| Effect of exchange rate translation on cash | (218) | (1,409) |
| Net increase (decrease) in cash, cash equivalents, and restricted cash | (12,528,341) | 20,879,147 |
| Cash, cash equivalents, and restricted cash - beginning of period | 32,616,906 | 1,554,449 |
| Cash, cash equivalents, and restricted cash - end of period | 20,088,565 | 22,433,596 |
| Cash paid during the period for: | ||
| Interest | 828,142 | 673,818 |
| Income taxes | 1,429,411 | 146,950 |
| Non-cash investing and financing activities: | ||
| Cancellation of shares | 219,834 | 255,000 |
| Beneficial conversion feature | 1,550,000 | |
| Shares forfeited | 6,667 | |
| Derivative liability recorded for warrants issued | 208,460 | |
| Derivative liability extinguished with warrant exercise | 12,285 | |
| Preferred shares issued in exchange for cryptocurrency | 39,950 | |
| Preferred shares issued in exchange for debt | 1,235,450 | |
| Dividends declared | 614,505 | 534,176 |
| Dividends paid with cryptocurrency | 129,817 | 124,738 |
| Debt extinguished in exchange for cryptocurrency | 1,487,797 | 3,019,609 |
| Related party debt extinguished in exchange for cryptocurrency | 113,000 | |
| Fixed asset acquired with cryptocurrency | 259,916 | 1,289,789 |
| Initial right of use asset and lease liability | 196,608 | |
| Net assets acquired for noncontrolling interest in subsidiary | 125,522 | |
| Contributed capital | 743,150 | |
| Class B units of subsidiary issued to a related party for asset acquisition | 7,240,000 | |
| Transfer of fixed assets to inventory | 567,522 | |
| Contribution of crypto currency from related party | $ 1,185,821 | |
ORGANIZATION AND NATURE OF BUSINESS |
9 Months Ended |
|---|---|
Sep. 30, 2022 | |
| Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
| ORGANIZATION AND NATURE OF BUSINESS | NOTE 1 – ORGANIZATION AND NATURE OF BUSINESS
Organization
Investview, Inc. was incorporated on January 30, 1946, under the laws of the state of Utah as the Uintah Mountain Copper Mining Company. In January 2005, we changed domicile to Nevada and changed our name to Voxpath Holding, Inc. In September of 2006, we merged with The Retirement Solution Inc. and then changed our name to TheRetirementSolution.Com, Inc. Subsequently, in October 2008 we changed our name to Global Investor Services, Inc., before changing our name to Investview, Inc., on March 27, 2012.
Effective April 1, 2017, we closed on a Contribution Agreement with the members of Wealth Generators, LLC, a limited liability company (“Wealth Generators”), pursuant to which the Wealth Generators members contributed % of the outstanding securities of Wealth Generators in exchange for an aggregate of shares of our common stock. Following this transaction, Wealth Generators became our wholly owned subsidiary, and the former members of Wealth Generators became our stockholders and controlled the majority of our outstanding common stock.
On June 6, 2017, we entered into an Acquisition Agreement with Market Trend Strategies, LLC, a company whose members are also former members of our management. Under the Acquisition Agreement, we spun-off our operations that existed prior to the merger with Wealth Generators and sold the intangible assets used in those pre-merger operations in exchange for Market Trend Strategies’ assumption of $419,139 in pre-merger liabilities.
On February 28, 2018, we filed a name change for Wealth Generators, LLC to Kuvera, LLC (“Kuvera”).
On January 17, 2019, we renamed our non-operating wholly owned subsidiary WealthGen Global, LLC to SAFETek, LLC, a Utah limited liability company.
On January 11, 2021, we filed a name change for Kuvera, LLC to iGenius, LLC (“iGenius”) and on February 2, 2021, we filed a name change for Kuvera (N.I.) Limited to iGenius Global LTD.
On September 20, 2021, the Board of Directors approved a change in our fiscal year from March 31 to December 31.
Nature of Business
We operate a financial technology (FinTech) services company in several different businesses. We deliver multiple products and services through a direct selling network, also known as multi-level marketing, of independent distributors that offer our products and services through a subscription-based revenue model to our distributors, as well as by our distributors to a large base of customers that we refer to as “members”. Through this business, we provide research, education, and investment tools designed to assist the self-directed investor in successfully navigating the financial markets. These services include research and education regarding equities, options, FOREX, ETFs, binary options, and cryptocurrency. In addition to trading research and education, we also offer software applications to assist the individual in debt reduction, increased savings, budgeting, and proper tax management. Each product subscription includes a core set of trading tools and research along with the personal finance management suite to provide an individual with complete access to the information necessary to cultivate and manage his or her financial situation. In addition to our education subscriptions, through a distribution arrangement we have with a third party, we have provided our members with an opportunity to purchase through such third party, a specialty form of adaptive digital currency called “ndau”. Through our direct selling model, we compensate our distributors with commissions under a standard bonus plan that allows for discretionary bonuses based on performance.
We also operate a blockchain technology business that provides leading-edge research, development, and FinTech services involving the management of digital asset technologies with a focus on Bitcoin mining and the new generation of digital assets. As well, in order to, among other things, commercialize on the proprietary trading platform we recently acquired from MPower Trading Systems, LLC (“MPower”), take advantage of the market’s increasing acceptance and expansion of the ownership and use of digital currencies as an investable asset class, subject to applicable regulatory limitations, and to proactively respond to increasing regulatory scrutiny relative to cryptocurrency products, we have adopted a growth plan that contemplates the establishment of a suite of financial service business that would offer, among others, self-directed brokerage services, institutional trade execution services, innovative advisory services (RIA, CTA), and codeless algorithmic trading technologies. It was our expectation to develop these businesses over time, starting with the acquisition of a broker-dealer that could serve as a platform for growth. Towards that end, in March 2021 we entered into an agreement to acquire a brokerage firm from an affiliate of the former Chief Executive Officer of the Company. However, having been unable to secure the requisite FINRA approval by the expiration of that agreement, we terminated the transaction on June 14, 2022, and commenced a search for alternative acquisitions within the brokerage industry. Further, until we are able to start this business, we recently elected to winddown the registration of a dormant investment advisor and commodity trading advisor we own, as we concluded there to be no material benefit to retaining an interest in these regulated businesses until we are able to launch our broader-based financial services model.
INVESTVIEW, INC. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS AS OF SEPTEMBER 30, 2022 (Unaudited)
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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES |
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| Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis of Presentation
Our policy is to prepare our financial statements on the accrual basis of accounting in accordance with accounting principles generally accepted in the United States of America. Prior to September 20, 2021, we operated the Company on a March 31 fiscal year end. Effective September 30, 2021, we changed our fiscal year to December 31.
The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with the rules and regulations (Regulation S-X) of the Securities and Exchange Commission (the “SEC”) and with the instructions to Form 10-Q. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. The results of operations for the nine months ended September 30, 2022, are not necessarily indicative of the operating results that may be expected for the filing of our December 31, 2022 Form 10-K. These unaudited condensed consolidated financial statements should be read in conjunction with the audited December 31, 2021 consolidated financial statements and notes thereto included in our Annual Report on Form 10-KT for the nine months ended December 31, 2021.
Principles of Consolidation
The consolidated financial statements include the accounts of Investview, Inc., and our wholly owned subsidiaries: iGenius, LLC (formerly Kuvera, LLC), Kuvera France S.A.S (through its closure date in June of 2021), Apex Tek, LLC (formerly Razor Data, LLC), SAFETek, LLC (formerly WealthGen Global, LLC), S.A.F.E. Management, LLC, United Games, LLC, United League, LLC, Investment Tools & Training, LLC, iGenius Global LTD (formerly Kuvera (N.I.) LTD), Investview Financial Group Holdings, LLC, and Investview MTS, LLC. All intercompany transactions and balances have been eliminated in consolidation.
Financial Statement Reclassification
Certain account balances from prior periods have been reclassified in these consolidated financial statements to conform to current period classifications.
Use of Estimates
The preparation of these financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates.
Foreign Exchange
We have consolidated the accounts of Kuvera France S.A.S. into our consolidated financial statements. The operations of Kuvera France S.A.S. were conducted in France through its closure date in June of 2021 and its functional currency is the Euro. Subsequent to June 2021 we maintained a Euro bank account in France that had minimal transactions. The Euro bank account was closed in April 2022.
Prior to June 2021, the financial statements of Kuvera France S.A.S. were prepared using their functional currency and were translated into U.S. dollars (“USD”). Assets and liabilities were translated into USD at the applicable exchange rates at period-end. Stockholders’ equity was translated using historical exchange rates. Revenue and expenses were translated at the average exchange rates for the period. Any translation adjustments were included as foreign currency translation adjustments in accumulated other comprehensive income in our stockholders’ equity (deficit).
INVESTVIEW, INC. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS AS OF SEPTEMBER 30, 2022 (Unaudited)
Subsequent to June 2021 and prior to the closure of the Euro bank account, we translated all transactions in our Euro bank account into USD and translated the ending bank balance into USD at the applicable exchange rate at period-end.
The following rates were used to translate our Euro bank account into USD at the following balance sheet dates.
The following rates were used to translate the accounts of Kuvera France S.A.S. into USD for the following operating periods.
Concentration of Credit Risk
Financial instruments that potentially expose us to concentration of credit risk include cash, accounts receivable, and advances. We place our cash and temporary cash investments with credit quality institutions. At times, such investments may be in excess of the FDIC insurance limit of $250,000. As of September 30, 2022 and December 31, 2021, cash balances that exceeded FDIC limits were $17,850,503 and $19,336,350, respectively. We have not experienced significant losses relating to these concentrations in the past.
Cash Equivalents and Restricted Cash
For purposes of reporting cash flows, we consider all highly liquid debt instruments purchased with a maturity of three months or less to be cash equivalents. As of September 30, 2022 and December 31, 2021, we had no highly liquid debt instruments.
The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within the balance sheet that sum to the total of the same such amounts shown in the statement of cash flows.
Amount included in restricted cash represent funds required to be held in an escrow account by a contractual agreement and will be used for paying dividends to our Series B Preferred Stockholders.
Receivables
Receivables are carried at net realizable value, representing the outstanding balance less an allowance for doubtful accounts based on a review of all outstanding amounts. Management determines the allowance for doubtful accounts by regularly evaluating individual receivables and receivables are written off when deemed uncollectible. Recoveries of receivables previously written off are recorded when received. We had an allowance for doubtful accounts of $719,342 as of September 30, 2022 and December 31, 2021, respectively.
INVESTVIEW, INC. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS AS OF SEPTEMBER 30, 2022 (Unaudited)
Fixed Assets
Fixed assets are stated at cost and depreciated using the straight-line method over their estimated useful lives. When retired or otherwise disposed, the carrying value and accumulated depreciation of the fixed asset is removed from its respective accounts and the net difference less any amount realized from disposition is reflected in earnings. Expenditures for maintenance and repairs which do not extend the useful lives of the related assets are expensed as incurred.
Fixed assets were made up of the following at each balance sheet date:
Total depreciation expense for the nine months ended September 30, 2022 and 2021, was $4,251,122 and $2,111,333, respectively. During the nine months ended September 30, 2022 we sold assets with a total net book value of $654,942 for cash of $1,044,492, therefore recognized a gain on disposal of assets of $389,550. During the nine months ended September 30, 2022 we disposed assets with a total net book value of $7,008, therefore recognized impairment expense of $7,008.
Long-Lived Assets – Intangible Assets & License Agreement
We account for our cryptocurrencies, intangible assets and long-term license agreement in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Subtopic 350-30, General Intangibles Other Than Goodwill, and ASC Subtopic 360-10-05, Accounting for the Impairment or Disposal of Long-Lived Assets. ASC Subtopic 350-30 requires assets to be measured based on the fair value of the consideration given or the fair value of the assets (or net assets) acquired, whichever is more clearly evident and, thus, more reliably measurable. Our cryptocurrencies are deemed to have an indefinite useful life; therefore, amounts are not amortized, but rather are assessed for impairment as further discussed in our impairment policy. Under ASC Subtopic 350-30 any intangible asset with a useful life is required to be amortized over that life and the useful life is to be evaluated every reporting period to determine whether events or circumstances warrant a revision to the remaining period of amortization. If the estimate of useful life is changed the remaining carrying amount of the intangible asset is amortized prospectively over the revised remaining useful life. Costs of internally developing, maintaining, or restoring intangible assets are recognized as an expense when incurred.
We hold cryptocurrency-denominated assets and include them in our consolidated balance sheet as other assets. The value of our cryptocurrencies as of September 30, 2022 and December 31, 2021 were $3,018,759 ($2,872,589 current and $146,170 restricted long term) and $2,141,093 ($2,018,324 current and $122,769 restricted long term), respectively. Cryptocurrencies purchased or received for payment from customers are recorded in accordance with ASC 350-30 and cryptocurrencies awarded to the Company through its mining activities ($9,412,751 and $25,047,680 for the nine months ended September 30, 2022 and 2021, respectively) are accounted for in connection with the Company’s revenue recognition policy. The use of cryptocurrencies is accounted for in accordance with the first in first out method of accounting. For the nine months ended September 30, 2022 and 2021 we recorded realized gains (losses) on our cryptocurrency transactions of $(1,338,597) and $892,266, respectively.
In June of 2018 we purchased United Games, LLC and United League, LLC and recorded the transaction as a business combination. Intangible assets acquired in the business combination were recorded at fair value on the date of acquisition and were being amortized on a straight-line method over their estimated useful lives. The intangible assets were impaired during the year ended March 31, 2021, due to a lack of recoverability.
INVESTVIEW, INC. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS AS OF SEPTEMBER 30, 2022 (Unaudited)
On March 22, 2021, we entered into a Securities Purchase Agreement to acquire the operating assets and intellectual property rights of MPower, a company controlled and partially owned by David B. Rothrock and James R. Bell, two of our board members (see NOTE 12). On September 3, 2021, we closed on the Securities Purchase Agreement and acquired the operating assets and intellectual property rights of MPower. As a result, we obtained Prodigio, a proprietary software-based trading platform with applications within the brokerage industry, which was valued at $7,240,000 and recorded on our balance sheet as an intangible asset. The intangible asset will have a definite life, however, as of the date of this filing the software has not yet been placed in service, therefore a useful life had not yet been determined and no amortization was recorded during the nine months ended September 30, 2022.
Impairment of Long-Lived Assets
We have adopted ASC Subtopic 360-10, Property, Plant and Equipment (“ASC 360-10”). ASC 360-10 requires that long-lived assets and certain identifiable intangibles held and used by the Company be reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable or when the historical cost carrying value of an asset may no longer be appropriate. Events relating to recoverability may include significant unfavorable changes in business conditions, recurring losses, or a forecasted inability to achieve break-even operating results over an extended period.
We evaluate the recoverability of long-lived assets based upon future net cash flows expected to result from the asset, including eventual disposition. Should impairment in value be indicated, the carrying value of intangible assets will be adjusted and an impairment loss is recorded equal to the difference between the asset’s carrying value and fair value or disposable value.
During the nine months ended September 30, 2022 we impaired our fixed assets with a cost basis of $15,772 due to the lack of use. We had recorded accumulated depreciation and accumulated amortization of $8,764 for the impaired assets through the date of impairment, therefore we recorded impairment expense of $7,008 during the nine months ended September 30, 2022.
During the nine months ended September 30, 2021 we impaired our intangible assets with a cost basis of $991,000 due to the lack of recoverability. In addition, we impaired computer equipment with a cost basis of $14,661 and we impaired data processing equipment with a cost basis of $392,500 due to disposals. We had recorded accumulated depreciation and accumulated amortization of $723,490 for the impaired assets through the date of impairment, therefore we recorded impairment expense of $674,671 during the nine months ended September 30, 2021.
Fair Value of Financial Instruments
Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, based on our principal or, in the absence of a principal, most advantageous market for the specific asset or liability.
U.S. generally accepted accounting principles provide for a three-level hierarchy of inputs to valuation techniques used to measure fair value, defined as follows:
Our financial instruments consist of cash, accounts receivable, accounts payable, and debt. We have determined that the book value of our outstanding financial instruments as of September 30, 2022 and December 31, 2021, approximates the fair value due to their short-term nature or interest rates that approximate prevailing market rates.
INVESTVIEW, INC. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS AS OF SEPTEMBER 30, 2022 (Unaudited)
Items recorded or measured at fair value on a recurring basis in the accompanying consolidated financial statements consisted of the following items as of September 30, 2022:
Items recorded or measured at fair value on a recurring basis in the accompanying consolidated financial statements consisted of the following items as of December 31, 2021:
Revenue Recognition
Subscription Revenue
Most of our revenue is generated by subscription sales and payment is received at the time of purchase. We recognize subscription revenue in accordance with ASC 606-10 where revenue is measured based on a consideration specified in a contract with a customer and recognized when we satisfy the performance obligation specified in each contract. Our performance obligation is to provide services over a fixed subscription period; therefore, we recognize revenue ratably over the subscription period and deferred revenue is recorded for the portion of the subscription period subsequent to each reporting date. Additionally, we offer a designated trial period to first time subscription customers, during which a full refund can be requested if a customer does not wish to continue with the subscription. Revenues are deferred during the trial period as collection is not probable until that time has passed. Revenues are presented net of refunds, sales incentives, credits, and known and estimated credit card chargebacks. As of September 30, 2022 and December 31, 2021 our deferred revenues were $2,046,443 and $3,288,443, respectively.
Mining Revenue
Through our wholly owned subsidiary, SAFETek, LLC, we leased equipment under a sale-leaseback arrangement. However, in June of 2020, we cancelled all leases and purchased all of the rights and obligations under these leases, which included obtaining ownership of all equipment. We use the equipment on blockchain networks to validate and add blocks of transactions to blockchain ledgers (commonly referred to as “mining”). As compensation for our mining activities, we are issued fees from processors and/or block rewards that are newly created cryptocurrency units granted to us. Our mining activities constitute the principal operations of SAFETek, LLC. Because we do not have contracts, nor do we have customers associated with our mining revenue, we recognize revenue when fees and/or rewards are settled, or ultimately granted to us as a result of our mining activities.
Cryptocurrency Revenue
We generate revenue from the sale of cryptocurrency packages to our customers through an arrangement with a third-party supplier with whom our Chairman is affiliated (see Note 5-Related Party Transactions). The various packages include different amounts of coin with differing rates of returns and terms and, in some cases prior to January 2022, included a product protection option that allows the purchaser to protect their initial purchase price. Both the coin and the protection options are delivered by third-party suppliers. In January 2022, we suspended any further offering of the product protection option after the third-party provider of that protection package was unable to comply with our standard vendor compliance protocols, citing certain offshore confidentiality entitlements. That suspension will remain in place until we are able to further validate the continued integrity of the product protection and the vendor’s ability to honor its commitments to our members.
INVESTVIEW, INC. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS AS OF SEPTEMBER 30, 2022 (Unaudited)
We recognize cryptocurrency revenue in accordance with ASC 606-10 where revenue is measured based on a consideration specified in a contract with a customer and recognized when we satisfy the performance obligation specified in each contract. Our performance obligation is to arrange for the third-parties to provide coin and protection (if applicable) to our customers and payment is received from our customers at the time of order placement. All customers are given two weeks to request a refund, therefore we record a customer advance on our balance sheet upon receipt of payment. After the two weeks have passed from order placement, we request our third-party supplier to deliver coin and protection (if applicable), at which time we recognize revenue and the amounts due to our supplier on our books. As of September 30, 2022 and December 31, 2021 our customer advances related to cryptocurrency revenue were $142,070 and $75,702, respectively.
Fee Revenue
We generate minimal fee revenue from our customers through SAFE Management, our subsidiary licensed as a Registered Investment Advisor and Commodities Trading Advisor. We recognize fee revenue in accordance with ASC 606-10 where revenue is measured based on a consideration specified in a contract with a customer and recognized when we satisfy the performance obligation specified in each contract. Our performance obligation is to deliver fully managed trading services to individuals who do not meet the requirements of Qualified Investors and who lack the time to trade for themselves. We recognize fee revenue as our performance obligation is met and we receive payment for such advisory fees in the month following recognition. However, since these businesses were largely dormant, during 2022, we elected to winddown and withdraw the SAFE Management state and NFA registrations, as we concluded there to be no material benefit to retaining an interest in these regulated businesses until we are able to launch our broader-based financial services model.
Miner Repair Revenue
Through our wholly owned subsidiary, SAFETek, LLC, we repair broken mining equipment for sale to third-party customers. We recognize miner repair revenue in accordance with ASC 606-10 where revenue is measured based on a consideration specified in a contract with a customer and recognized when we satisfy the performance obligation specified in each contract. Our performance obligation is to deliver the promised goods to our customers.
Digital Wallet Revenue
We generate revenue from the sale of digital wallets to our customers through an arrangement with a third-party supplier. We offer three tiers of wallets which include different features. The digital wallets are delivered by a third-party supplier.
We recognize digital wallet revenue in accordance with ASC 606-10 where revenue is measured based on a consideration specified in a contract with a customer and recognized when we satisfy the performance obligation specified in each contract. Our performance obligation is to arrange for the third-parties to provide the wallet to our customers and payment is received from our customers at the time of order placement.
Revenue generated for the nine months ended September 30, 2022, is as follows:
For the nine months ended September 30, 2022, foreign and domestic revenues were approximately $32.2 million and $15.3 million, respectively.
Revenue generated for the nine months ended September 30, 2021, is as follows:
INVESTVIEW, INC. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS AS OF SEPTEMBER 30, 2022 (Unaudited)
For the nine months ended September 30, 2021 foreign and domestic revenues were approximately $33.1 million and $33.0 million, respectively.
Revenue generated for the three months ended September 30, 2022, is as follows:
For the three months ended September 30, 2022, foreign and domestic revenues were approximately $10.3 million and $4.7 million, respectively.
Revenue generated for the three months ended September 30, 2021, is as follows:
For the three months ended September 30, 2021 foreign and domestic revenues were approximately $13.6 million and $9.8 million, respectively.
Advertising, Selling, and Marketing Costs
We expense advertising, selling, and marketing costs as incurred. Advertising, selling, and marketing costs include costs of promoting our product worldwide, including promotional events. Advertising, selling, and marketing expenses for the nine months ended September 30, 2022 and 2021, totaled $53,139 and $93,984, respectively.
Cost of Sales and Service
Included in our costs of sales and services are amounts paid to our trading and market experts that provide financial education content and tools to our subscription customers, hosting fees that we pay to vendors to set up our mining equipment at third-party sites in order to generate mining revenue, and the costs associated with our miner repair revenue. Costs of sales and services for the nine months ended September 30, 2022 and 2021, totaled $5,873,214 and $7,186,149, respectively.
Inventory
Inventory consists of raw materials and work in process to be sold as part of our miner repair revenue. Inventory is valued at the lower of cost or net realizable value using the first-in, first-out (FIFO) method and is inclusive of any shipping and tax costs.
Inventory was made up of the following at each balance sheet date:
INVESTVIEW, INC. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS AS OF SEPTEMBER 30, 2022 (Unaudited)
Income Taxes
Income taxes are recorded in accordance with ASC Topic 740, Income Taxes, which requires the recognition of deferred tax liabilities and assets for the expected future tax consequences of events that have been included in the financial statement or tax returns. Under this method, deferred tax liabilities and assets are determined based on the difference between financial statements and tax basis of assets and liabilities, including operating losses and credit carryforwards, using enacted tax rates in effect for the year in which the differences are expected to reverse.
Management judgment is required in determining our provision for income taxes, our deferred tax assets and liabilities, and any valuation allowance recorded against our deferred tax assets. Deferred tax assets are reduced by a valuation allowance if, based on the consideration of all available evidence, it is more likely than not that some or all of the deferred tax assets will not be realized. Changes in assumptions in future periods may require we adjust our valuation allowance, which could materially impact our financial position and results of operations. The company recognizes the benefit of an uncertain tax position that it has taken or expects to take on its income tax return, if such a position is more likely than not to be sustained.
We follow ASC subtopic 260-10, Earnings per Share (“ASC 260-10”), which specifies the computation, presentation, and disclosure requirements of earnings per share information. Basic income (loss) per share has been calculated based upon the weighted average number of common shares outstanding. Diluted income (loss) per share reflects the potential dilution that could occur if stock options or other contracts to issue common stock were exercised or converted during the period. Dilutive securities having an anti-dilutive effect on diluted earnings per share are excluded from the calculation.
INVESTVIEW, INC. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS AS OF SEPTEMBER 30, 2022 (Unaudited)
Lease Obligation
We determine if an arrangement is a lease at inception. Operating leases are included in the operating lease right-of-use asset account, the operating lease liability, current account, and the operating lease liability, long term account in our balance sheet. Right-of-use assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease.
Operating lease right-of-use assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. For leases in which the rate implicit in the lease is not readily determinable, we use our incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. We have elected to not apply the recognition requirements of ASC 842 to short-term leases (leases with terms of twelve months or less). Lease terms include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. Lease expense for operating lease arrangements is recognized on a straight-line basis over the lease term. We have elected the practical expedient and will not separate non-lease components from lease components and will instead account for each separate lease component and non-lease component associated with the lease components as a single lease component.
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RECENT ACCOUNTING PRONOUNCEMENTS |
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| Accounting Changes and Error Corrections [Abstract] | |
| RECENT ACCOUNTING PRONOUNCEMENTS | NOTE 3 – RECENT ACCOUNTING PRONOUNCEMENTS
We have noted no recently issued accounting pronouncements that we have not yet adopted that we believe are applicable or would have a material impact on our financial statements.
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LIQUIDITY |
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| Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
| LIQUIDITY | NOTE 4 – LIQUIDITY
Our financial statements are prepared using generally accepted accounting principles applicable to a going concern that contemplates the realization of assets and liquidation of liabilities in the normal course of business.
During the nine months ended September 30, 2022 we reported $7,334,474 in cash provided by operating activities, $6,406,965 of income from operations, and net income of $1,858,642. As of September 30, 2022 we have cash and cash equivalents of $19,081,445 and a working capital balance of $14,565,190. As of September 30, 2022 our unrestricted cryptocurrency balance was reported at a cost basis of $2,872,589. Management does not believe there are any liquidity issues as of September 30, 2022.
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RELATED-PARTY TRANSACTIONS |
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| RELATED-PARTY TRANSACTIONS | NOTE 5 – RELATED-PARTY TRANSACTIONS
Our related-party payables consisted of the following:
INVESTVIEW, INC. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS AS OF SEPTEMBER 30, 2022 (Unaudited)
We expensed interest related to our related-party payables, as follows:
Description of other Related Party Arrangements
During the nine months ended September 30, 2022, we entered into a Separation and Release Agreement (the “Separation Agreements”) with Mario Romano and Annette Raynor, two of the Company’s founders and former members of management and the Board of Directors, and Wealth Engineering, LLC, an affiliate of Mr. Romano and Ms. Raynor. Under the Separation Agreements, Mr. Romano and Ms. Raynor resigned their positions as officers and directors of the Company effective immediately upon execution of the Separation Agreements as they each transitioned to the roles of strategic advisors to the Company. In conjunction with the Separation Agreements Mr. Romano and Ms. Raynor forfeited shares each, which were returned to the Company and cancelled, and we repurchased a total of shares from Mr. Romano and Ms. Raynor in exchange for cash of $1,724,008, which was paid to federal and state taxing authorities on behalf of Wealth Engineering, LLC as payment for the estimated federal and state taxes that Wealth Engineering, LLC may be subject to in connection with the vesting of Company restricted shares that vested on July 22, 2021 (see NOTE 9).
INVESTVIEW, INC. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS AS OF SEPTEMBER 30, 2022 (Unaudited)
During the nine months ended September 30, 2022, we recorded shares as forfeited as a result of 1) our Chief Financial Officer returning shares to the Company prior to their vesting date and 2) our senior management team and board of directors unanimously agreeing to surrender and terminate an aggregate of outstanding unvested restricted shares and ungranted shares in exchange for the issuance of options to purchase shares (see NOTE 9).
DBR Capital LLC, an affiliate of our Chairman (“DBR Capital”), has been an investor in Oneiro NA, Inc. (“Oneiro”) since 2016, and currently serves as a worldwide marketing and distribution agent for Oneiro. Oneiro has been our third-party supplier of ndau coins. In connection with its affiliation with Oneiro, DBR Capital is entitled to certain performance fees from Oneiro for worldwide sales of ndau introduced by DBR Capital, including purchases by Investview or any affiliates of Investview. The performance fee is determined as a commission on sales, with a floating range between 5% to 10% of sales, on aggregate sales ranging from $1 million to over $40 million. The performance fee is to be paid in ndau coins. During the most recent year ended December 31, 2021, DBR Capital earned a performance fee in connection with sales by Oneiro to Investview of approximately ndau coins.
During the nine months ended September 30, 2022, DBR Capital elected to contribute ndau coins to us. These coins were valued as of the day of receipt at $1,185,821 and are recorded as an addition to Additional Paid in Capital. The contribution of these coins to the Company by DBR Capital was in recognition of the recent reorganization of the executive management team and Board of Directors of Investview, and to avoid the appearance of any potential conflicts of interest associated with the marketing and distribution arrangement DBR Capital has with Oneiro. DBR Capital further renounced and assigned to the Company for its discretionary use, its rights in and to any further performance fees related to ndau sales by Oneiro to the Company for so long as Mr. Rothrock remains either an executive officer or director of the Company.
The loans referenced in footnotes 1-3 above, were advanced under a Securities Purchase Agreement we entered into on April 27, 2020, with DBR Capital. Under the Securities Purchase Agreement (which was subsequently amended and restated), DBR Capital agreed to advance up to $11 million to us in a series of up to five closings through December 31, 2022, of which the amounts advanced covered in footnotes 1-3 above constituted the first three closings. On August 12, 2022, we and DBR Capital, entered into a Fourth Amendment to the now Amended and Restated Securities Purchase Agreement that extends the deadlines for the fourth and fifth closings under that Agreement from December 31, 2022, to December 31, 2024. The fourth and fifth closings remain at the sole discretion of DBR Capital and we cannot provide any assurance that they will occur when contemplated or ever.
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DEBT |
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| DEBT | NOTE 6 – DEBT
Our debt consisted of the following:
INVESTVIEW, INC. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS AS OF SEPTEMBER 30, 2022 (Unaudited)
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DERIVATIVE LIABILITY |
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| DERIVATIVE LIABILITY | NOTE 7 – DERIVATIVE LIABILITY
During the nine months ended September 30, 2022, we had the following activity in our derivative liability account relating to our warrants:
We use the binomial option pricing model to estimate fair value for those instruments at inception, at warrant exercise, and at each reporting date. During the nine months ended September 30, 2022, the assumptions used in our binomial option pricing model were in the following range:
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OPERATING LEASE |
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| OPERATING LEASE | NOTE 8 – OPERATING LEASE
In August 2019 we entered an operating lease for office space in Eatontown, New Jersey (the “Eatontown Lease”), in September 2019 we entered an operating lease for office space in Kaysville, Utah (the “Kaysville Lease”), in May 2021 we entered an operating lease for office space in Conroe, Texas (the “Conroe Lease”), in July 2021 we entered an operating lease for office space in Wyckoff, New Jersey (the “Wyckoff Lease”), and in September 2021 we acquired an operating lease for office space in Haverford, Pennsylvania (the “Haverford Lease”) in connection with the MPower acquisition (See NOTE 12).
At commencement of the Eatontown Lease, right-of-use assets obtained in exchange for new operating lease liabilities amounted to $110,097. We have the option to extend the three-year lease term of the Eatontown Lease for a period of one year. In addition, we are obligated to pay twelve monthly installments to cover an annual utility charge of $1.75 per rentable square foot for electric usage within the demised premises. As the lessor has the right to digitally meter and charge us accordingly, these payments were deemed variable and will be expensed as incurred. During the nine months ended September 30, 2022 the variable lease costs amounted to $1,940.
At commencement of the Kaysville Lease, right-of-use assets obtained in exchange for new operating lease liabilities amounted to $21,147. On September 30, 2020, the Kaysville Lease expired and as of October 1, 2020, the Company began leasing the property located in Kaysville on a month-to-month basis.
At commencement of the Conroe Lease, right-of-use assets obtained in exchange for new operating lease liabilities amounted to $174,574. We have the option to extend the 24-month term of the Conroe Lease for three additional terms of 24 months.
At commencement of the Wyckoff Lease, right-of-use assets obtained in exchange for new operating lease liabilities amounted to $22,034. The term of the Wyckoff Lease is 24.5 months.
At date of acquisition of the Haverford lease, right-of-use assets and lease liabilities obtained amounted to $125,522 and $152,961, respectively. The term of the Haverford lease expires on December 31, 2022.
Operating lease expense was $180,927 for the nine months ended September 30, 2022. Operating cash flows used for the operating leases during the nine months ended September 30, 2022 was $204,345. As of September 30, 2022, the weighted average remaining lease term was 0.62 years and the weighted average discount rate was 12%.
Future minimum lease payments under non-cancellable leases as of September 30, 2022 were as follows:
INVESTVIEW, INC. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS AS OF SEPTEMBER 30, 2022 (Unaudited)
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STOCKHOLDERS’ EQUITY (DEFICIT) |
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| STOCKHOLDERS’ EQUITY (DEFICIT) | NOTE 9 – STOCKHOLDERS’ EQUITY (DEFICIT)
Preferred Stock
We are authorized to issue up to shares of preferred stock with a par value of $ and our board of directors has the authority to issue one or more classes of preferred stock with rights senior to those of common stock and to determine the rights, privileges, and preferences of that preferred stock.
Our Board of Directors approved the designation of 2,000,000 of the Company’s shares of preferred stock as Series B Cumulative Redeemable Perpetual Preferred Stock (“Series B Preferred Stock”), each with a stated value of $ per share. Our Series B Preferred Stockholders are entitled to votes per share and are entitled to receive cumulative dividends at the annual rate of 13% per annum of the stated value, equal to $ per annum per share. The Series B Preferred Stock is redeemable at our option or upon certain change of control events.
During the year ended March 31, 2021, we commenced a security offering to sell a total of units at $ per unit (“Unit Offering”), such that each unit consisted of: (i) one share of our newly authorized Series B Preferred Stock and (ii) five warrants each exercisable to purchase one share of common stock at an exercise price of $0.10 per warrant share. Each Warrant offered is immediately exercisable on the date of issuance, will expire 5 years from the date of issuance, and its value has been classified as a fair value liability due to the terms of the instrument (see NOTE 7).
During the nine months ended September 30, 2021, we sold units for a total of $4,915,950: units for cash proceeds of $3,640,550, units for bitcoin proceeds of $39,950, and units for debt of $1,235,450. In conjunction with the sale of the units we issued shares of Series B Preferred Stock and granted warrants during the period.
As of September 30, 2022 and December 31, 2021, we had shares of preferred stock issued and outstanding.
Preferred Stock Dividends
During the nine months ended September 30, 2022, we recorded $614,505 for the cumulative cash dividends due to the shareholders of our Series B Preferred Stock. We made payments of $470,563 in cash and issued $129,817 worth of cryptocurrency to reduce the amounts owed. As a result, we recorded $233,830 as a dividend liability on our balance sheet as of September 30, 2022.
Common Stock
During the nine months ended September 30, 2022, we cancelled shares that had been issued but were forfeited by choice or as a result of certain forfeiture conditions (see NOTE 5). As a result, we decreased common stock by $, and increased additional paid in capital by the same. As of the date of this filing, shares of common stock forfeited during the nine-month period ended December 31, 2021 had not yet been physically cancelled due to administrative delays. All forfeited shares have been deemed cancelled as of June 30, 2022. Also, during the nine months ended September 30, 2022, we repurchased shares from members of our then Board of Directors in exchange for cash of $1,724,008 to pay for tax withholdings (see NOTE 5).
During the nine months ended September 30, 2021, we cancelled shares that had been issued but were subject to certain forfeiture conditions. As a result of the forfeiture, we decreased common stock by $255,000 and increased additional paid in capital by the same. Also, during the nine months ended September 30, 2021, we issued shares of common stock for services and compensation and recognized a total of $ in stock-based compensation based on grant date fair values and vesting terms of the awards granted in the current and prior periods. We also issued 82,640 shares of common stock as a result of warrants exercised, resulting in proceeds of $8,264, and we recorded shares as forfeited as a result of our CAO returning the shares to the Company prior to their vesting date.
As of September 30, 2022 and December 31, 2021, we had and shares of common stock issued and outstanding, respectively.
INVESTVIEW, INC. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS AS OF SEPTEMBER 30, 2022 (Unaudited)
Options
During the nine months ended September 30, 2022, we undertook to restructure unvested incentive equity awards previously granted to our senior leadership team. The Company’s senior management team and board of directors unanimously agreed to surrender and terminate an aggregate of outstanding unvested restricted shares and ungranted shares in exchange for the issuance of options to purchase shares, vesting in equal amounts over a -year period, at an exercise price of $0.05 per share. The third-party valuation firm we engaged to value these options utilized the Black Scholes Model to value these options and the expense related to these options is being recognized over their vesting terms. Total stock compensation expense related to the options for the nine months ended September 30, 2022, was $1,384,210.
Warrants
Transactions involving our warrants are summarized as follows:
Details of our warrants outstanding as of September 30, 2022, is as follows:
Class B Units of Investview Financial Group Holdings, LLC
As of September 30, 2022, and December 31, 2021, there were 565,000,000 Units of Class B Investview Financial Group Holdings, LLC issued and outstanding. These units were issued as consideration for the purchase of operating assets and intellectual property rights of MPower, a company controlled and partially owned by David B. Rothrock and James R. Bell, two of our board members (see NOTE 12). The Class B Redeemable Units have no voting rights but can be exchanged at any time, within 5 years from the date of issuance, for 565,000,000 shares of our common stock on a one-for-one basis and are subject to significant restrictions upon resale through 2025 under the terms of a lock up agreement entered into as part of the purchase agreement. In order to properly account for the purchase transaction on the Company’s financial statements, we were required by applicable financial reporting standards to value the Class B Units issued to MPower in the transaction as of the closing date of the MPower sale transaction (September 3, 2021). For these accounting purposes, we concluded that the “fair value” of the consideration for financial accounting purposes, at the if-converted market value of the underlying common shares was $58.9 million, based on the closing market price of $ on the closing date of September 3, 2021, as discounted from $86.6 million by 32% (or $27.7 million) to reflect the significant lock up period. The “fair value” valuation of the Class B Units, however, was completed relying on a certain set of methodologies that are accepted for accounting purposes, and is not necessarily indicative of the “fair market value” that may be implied relative to such Units in a commercial transaction not governed by financial reporting standards. In particular, the methodology used to value the Class B Units at their “fair value” did not take into account any blockage discounts that may otherwise apply after the expiration of the lock-up period in 2025; while other valuation methodologies, not bound by financial reporting codifications, would possibly determine that the blockage discount associated with the resale of million shares after the expiration of the lock-up period, into a marketplace that has limited market liquidity, could possibly have a material downward influence on the valuation.
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COMMITMENTS AND CONTINGENCIES |
9 Months Ended |
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Sep. 30, 2022 | |
| Commitments and Contingencies Disclosure [Abstract] | |
| COMMITMENTS AND CONTINGENCIES | NOTE 10 – COMMITMENTS AND CONTINGENCIES
In the ordinary course of business, we may be, or have been, involved in legal proceedings. During the nine months ended September 30, 2022, we were not involved in any material legal proceedings, however, during November 2021 we received a subpoena from the United States Securities and Exchange Commission (“SEC”) for the production of documents. We have reason to believe that the focus of the SEC’s inquiry involves whether certain federal securities laws were violated in connection with, among other things, the offer and sale of cryptocurrency products and the operation of our subscription-based multi-level marketing business now known as iGenius. In the subpoena, the SEC advised that the investigation does not mean that the SEC has concluded that we or anyone else has violated federal securities laws and or any other law. We believe that we have complied at all times with the federal securities laws. However, we are aware of the evolving SEC commentary and rulemaking process relative to the characterization of cryptocurrency products under federal securities laws that is sweeping through a large number of businesses that operate within the cryptocurrency sector. We intend to cooperate fully with the SEC’s investigation and will continue to work with outside counsel to review the matter.
INVESTVIEW, INC. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS AS OF SEPTEMBER 30, 2022 (Unaudited)
We generate revenue from the sale of cryptocurrency packages to our customers through an arrangement with a third-party supplier, certain of which, until January 2022, included a product protection option provided by a third-party provider. According to marketing and legal documents provided by such third-party provider, the product protection would allow the purchaser to protect its initial purchase price by obtaining 50% of its purchase price at five years or 100% of its purchase price at ten years. In January 2022, we suspended any further offering of the product protection option in the cryptocurrency packages after the third-party provider was unable to comply with our standard vendor compliance protocols, citing certain offshore confidentiality entitlements. That suspension will remain in place until we are able to further validate the continued integrity of the product protection and the vendor’s ability to honor its commitments to our members.
We issued a promissory note to our former Chief Executive Officer, Joseph Cammarata, which, following certain modifications, on or about March 30, 2021, was restated in the principal amount of $1,550,000 (the “Cammarata Note”). Although not originally convertible, as per the March 30, 2021, amendment, the Cammarata Note became convertible at $0.02 per share, Thereafter, effective September 21, 2021, and following another modification, the conversion price under the Cammarata Note was reduced to $0.008 per share. During February 2022, we provided 30 days’ notice of our intent to retire and repay the Cammarata Note in cash. Having not timely received a properly executed conversion notice within the proscribed period, and citing certain breaches of Mr. Cammarata’s fiduciary duty to us, as well as damages incurred by us arising from Mr. Cammarata’s ongoing legal proceedings, on or about March 31, 2022, we tendered to Mr. Cammarata cash payment in full for the Cammarata Note. As of the date of this Report, Mr. Cammarata has not accepted our tender of the cash payment, and instead has asserted his entitlement to exercise his right to convert the Cammarata Note into our common shares. Although we believe that our cash tender was appropriate under the terms of the Cammarata Note and our claims for damages by Mr. Cammarata have marit, if Mr. Cammarata elects to challenge our cash tender in a court proceeding, and if we are unable to sustain our legal position on the matter, Mr. Cammarata could receive up to approximately 203 million shares of our common stock upon conversion of the Cammarata Note.
On March 22, 2021, we entered into Securities Purchase Agreements to purchase 100% of the operating assets of SSA Technologies LLC, an entity that owns and operates a FINRA-registered broker-dealer. SSA is controlled and partially owned by Joseph Cammarata, our former Chief Executive Officer. Commencing upon execution of the agreements and through the closing of the transactions, we agreed to provide certain transition service arrangements to SSA. In connection with the transactions, we entered into a Working Capital Promissory Note with SSA under which SSA was to have advanced to us up to $1,500,000 before the end of 2021; however, SSA has only provided advances of $1,200,000 to date. The note bears interest at the rate of 0.11% per annum therefore we recognized $990 worth of interest expense on the loan during the nine months ended September 30, 2022. The note was due and payable by January 31, 2022; however, has not yet been repaid as we consider our legal options in light of SSA’s failure to complete its funding obligations. The note was to have been secured by the pledge of 12,000,000 shares of our common stock; however, it remains unsecured as the pledge of shares was not implemented at the closing of the loan.
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INCOME TAXES |
9 Months Ended |
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Sep. 30, 2022 | |
| Income Tax Disclosure [Abstract] | |
| INCOME TAXES | NOTE 11 – INCOME TAXES
For the periods ended September 30, 2022, and September 30, 2021, the Company used a discrete effective tax rate method for recording income taxes, as compared to an estimated full year annual effective tax rate method, as an estimate of the annual effective tax rate cannot be made.
Provision for income taxes for the three and nine months ended September 30, 2022, was $362,563 and $1,004,308, respectively, resulting in an effective tax rate of (623.9%) and 35.1%, respectively. Provision for income taxes for the three and nine months ended September 30, 2021, was $758 and $146,950, respectively, resulting in an effective tax rate of (0.002%) and (0.50%), respectively. The provision for income taxes was primarily impacted by pretax book income, permanent differences, and by the change in valuation allowance on deferred tax assets.
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ACQUISITION & NONCONTROLLING INTEREST IN SUBSIDIARY |
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| Business Combination and Asset Acquisition [Abstract] | ||||||||||||||||
| ACQUISITION & NONCONTROLLING INTEREST IN SUBSIDIARY | NOTE 12 – ACQUISITION & NONCONTROLLING INTEREST IN SUBSIDIARY
On March 22, 2021, we entered into a Securities Purchase Agreement to purchase the operating assets and intellectual property rights of MPower, a company controlled and partially owned by David B. Rothrock and James R. Bell, two of our board members, in exchange for nonvoting Class B Units of Investview Financial Group Holdings, LLC (“Units”). This acquisition closed on September 3, 2021, and we acquired an office lease, furniture and fixtures, and Prodigio, a proprietary software-based trading platform with applications in the brokerage industry. The Units can be exchanged at any time, within 5 years from the date of issuance, for shares of our common stock on a one-for-one basis and are subject to a 44 month lock up period. The “fair value” of the consideration, as determined for our accounting purposes, at the if-converted market value of the common shares was $58.9 million based on the closing market price of $ on the closing date of September 3, 2021, as discounted from $86.6 million by 32% (or $27.7 million) to reflect the significant lock up period.
The Company determined that as of the date of the acquisition, the fair value of the Prodigio Trading Platform software was $7.2 million. The difference between the value of the software asset and the consideration issued was driven by an increase in the valuation of the Class B Units between the execution of the original Securities Purchase Agreement in March 2021 which set the number of units to be issued as consideration and the closing of the transaction in September 2021, as well as the software’s lack of revenue generation and a readily available path to monetization through synergies with a broker-dealer partner. Accordingly, the Company recorded a non-cash loss on acquisition of $51.6 million as illustrated below.
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SUBSEQUENT EVENTS |
9 Months Ended |
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Sep. 30, 2022 | |
| Subsequent Events [Abstract] | |
| SUBSEQUENT EVENTS | NOTE 13 – SUBSEQUENT EVENTS
In accordance with ASC Topic 855, Subsequent Events, we have evaluated subsequent events through the date of this filing and have determined that there are no subsequent events that require disclosure. |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) |
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| Basis of Presentation | Basis of Presentation
Our policy is to prepare our financial statements on the accrual basis of accounting in accordance with accounting principles generally accepted in the United States of America. Prior to September 20, 2021, we operated the Company on a March 31 fiscal year end. Effective September 30, 2021, we changed our fiscal year to December 31.
The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with the rules and regulations (Regulation S-X) of the Securities and Exchange Commission (the “SEC”) and with the instructions to Form 10-Q. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. The results of operations for the nine months ended September 30, 2022, are not necessarily indicative of the operating results that may be expected for the filing of our December 31, 2022 Form 10-K. These unaudited condensed consolidated financial statements should be read in conjunction with the audited December 31, 2021 consolidated financial statements and notes thereto included in our Annual Report on Form 10-KT for the nine months ended December 31, 2021.
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| Principles of Consolidation | Principles of Consolidation
The consolidated financial statements include the accounts of Investview, Inc., and our wholly owned subsidiaries: iGenius, LLC (formerly Kuvera, LLC), Kuvera France S.A.S (through its closure date in June of 2021), Apex Tek, LLC (formerly Razor Data, LLC), SAFETek, LLC (formerly WealthGen Global, LLC), S.A.F.E. Management, LLC, United Games, LLC, United League, LLC, Investment Tools & Training, LLC, iGenius Global LTD (formerly Kuvera (N.I.) LTD), Investview Financial Group Holdings, LLC, and Investview MTS, LLC. All intercompany transactions and balances have been eliminated in consolidation.
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| Financial Statement Reclassification | Financial Statement Reclassification
Certain account balances from prior periods have been reclassified in these consolidated financial statements to conform to current period classifications.
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| Use of Estimates | Use of Estimates
The preparation of these financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates.
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| Foreign Exchange | Foreign Exchange
We have consolidated the accounts of Kuvera France S.A.S. into our consolidated financial statements. The operations of Kuvera France S.A.S. were conducted in France through its closure date in June of 2021 and its functional currency is the Euro. Subsequent to June 2021 we maintained a Euro bank account in France that had minimal transactions. The Euro bank account was closed in April 2022.
Prior to June 2021, the financial statements of Kuvera France S.A.S. were prepared using their functional currency and were translated into U.S. dollars (“USD”). Assets and liabilities were translated into USD at the applicable exchange rates at period-end. Stockholders’ equity was translated using historical exchange rates. Revenue and expenses were translated at the average exchange rates for the period. Any translation adjustments were included as foreign currency translation adjustments in accumulated other comprehensive income in our stockholders’ equity (deficit).
INVESTVIEW, INC. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS AS OF SEPTEMBER 30, 2022 (Unaudited)
Subsequent to June 2021 and prior to the closure of the Euro bank account, we translated all transactions in our Euro bank account into USD and translated the ending bank balance into USD at the applicable exchange rate at period-end.
The following rates were used to translate our Euro bank account into USD at the following balance sheet dates.
The following rates were used to translate the accounts of Kuvera France S.A.S. into USD for the following operating periods.
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| Concentration of Credit Risk | Concentration of Credit Risk
Financial instruments that potentially expose us to concentration of credit risk include cash, accounts receivable, and advances. We place our cash and temporary cash investments with credit quality institutions. At times, such investments may be in excess of the FDIC insurance limit of $250,000. As of September 30, 2022 and December 31, 2021, cash balances that exceeded FDIC limits were $17,850,503 and $19,336,350, respectively. We have not experienced significant losses relating to these concentrations in the past.
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| Cash Equivalents and Restricted Cash | Cash Equivalents and Restricted Cash
For purposes of reporting cash flows, we consider all highly liquid debt instruments purchased with a maturity of three months or less to be cash equivalents. As of September 30, 2022 and December 31, 2021, we had no highly liquid debt instruments.
The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within the balance sheet that sum to the total of the same such amounts shown in the statement of cash flows.
Amount included in restricted cash represent funds required to be held in an escrow account by a contractual agreement and will be used for paying dividends to our Series B Preferred Stockholders.
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| Receivables | Receivables
Receivables are carried at net realizable value, representing the outstanding balance less an allowance for doubtful accounts based on a review of all outstanding amounts. Management determines the allowance for doubtful accounts by regularly evaluating individual receivables and receivables are written off when deemed uncollectible. Recoveries of receivables previously written off are recorded when received. We had an allowance for doubtful accounts of $719,342 as of September 30, 2022 and December 31, 2021, respectively.
INVESTVIEW, INC. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS AS OF SEPTEMBER 30, 2022 (Unaudited)
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| Fixed Assets | Fixed Assets
Fixed assets are stated at cost and depreciated using the straight-line method over their estimated useful lives. When retired or otherwise disposed, the carrying value and accumulated depreciation of the fixed asset is removed from its respective accounts and the net difference less any amount realized from disposition is reflected in earnings. Expenditures for maintenance and repairs which do not extend the useful lives of the related assets are expensed as incurred.
Fixed assets were made up of the following at each balance sheet date:
Total depreciation expense for the nine months ended September 30, 2022 and 2021, was $4,251,122 and $2,111,333, respectively. During the nine months ended September 30, 2022 we sold assets with a total net book value of $654,942 for cash of $1,044,492, therefore recognized a gain on disposal of assets of $389,550. During the nine months ended September 30, 2022 we disposed assets with a total net book value of $7,008, therefore recognized impairment expense of $7,008.
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| Long-Lived Assets – Intangible Assets & License Agreement | Long-Lived Assets – Intangible Assets & License Agreement
We account for our cryptocurrencies, intangible assets and long-term license agreement in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Subtopic 350-30, General Intangibles Other Than Goodwill, and ASC Subtopic 360-10-05, Accounting for the Impairment or Disposal of Long-Lived Assets. ASC Subtopic 350-30 requires assets to be measured based on the fair value of the consideration given or the fair value of the assets (or net assets) acquired, whichever is more clearly evident and, thus, more reliably measurable. Our cryptocurrencies are deemed to have an indefinite useful life; therefore, amounts are not amortized, but rather are assessed for impairment as further discussed in our impairment policy. Under ASC Subtopic 350-30 any intangible asset with a useful life is required to be amortized over that life and the useful life is to be evaluated every reporting period to determine whether events or circumstances warrant a revision to the remaining period of amortization. If the estimate of useful life is changed the remaining carrying amount of the intangible asset is amortized prospectively over the revised remaining useful life. Costs of internally developing, maintaining, or restoring intangible assets are recognized as an expense when incurred.
We hold cryptocurrency-denominated assets and include them in our consolidated balance sheet as other assets. The value of our cryptocurrencies as of September 30, 2022 and December 31, 2021 were $3,018,759 ($2,872,589 current and $146,170 restricted long term) and $2,141,093 ($2,018,324 current and $122,769 restricted long term), respectively. Cryptocurrencies purchased or received for payment from customers are recorded in accordance with ASC 350-30 and cryptocurrencies awarded to the Company through its mining activities ($9,412,751 and $25,047,680 for the nine months ended September 30, 2022 and 2021, respectively) are accounted for in connection with the Company’s revenue recognition policy. The use of cryptocurrencies is accounted for in accordance with the first in first out method of accounting. For the nine months ended September 30, 2022 and 2021 we recorded realized gains (losses) on our cryptocurrency transactions of $(1,338,597) and $892,266, respectively.
In June of 2018 we purchased United Games, LLC and United League, LLC and recorded the transaction as a business combination. Intangible assets acquired in the business combination were recorded at fair value on the date of acquisition and were being amortized on a straight-line method over their estimated useful lives. The intangible assets were impaired during the year ended March 31, 2021, due to a lack of recoverability.
INVESTVIEW, INC. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS AS OF SEPTEMBER 30, 2022 (Unaudited)
On March 22, 2021, we entered into a Securities Purchase Agreement to acquire the operating assets and intellectual property rights of MPower, a company controlled and partially owned by David B. Rothrock and James R. Bell, two of our board members (see NOTE 12). On September 3, 2021, we closed on the Securities Purchase Agreement and acquired the operating assets and intellectual property rights of MPower. As a result, we obtained Prodigio, a proprietary software-based trading platform with applications within the brokerage industry, which was valued at $7,240,000 and recorded on our balance sheet as an intangible asset. The intangible asset will have a definite life, however, as of the date of this filing the software has not yet been placed in service, therefore a useful life had not yet been determined and no amortization was recorded during the nine months ended September 30, 2022.
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| Impairment of Long-Lived Assets | Impairment of Long-Lived Assets
We have adopted ASC Subtopic 360-10, Property, Plant and Equipment (“ASC 360-10”). ASC 360-10 requires that long-lived assets and certain identifiable intangibles held and used by the Company be reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable or when the historical cost carrying value of an asset may no longer be appropriate. Events relating to recoverability may include significant unfavorable changes in business conditions, recurring losses, or a forecasted inability to achieve break-even operating results over an extended period.
We evaluate the recoverability of long-lived assets based upon future net cash flows expected to result from the asset, including eventual disposition. Should impairment in value be indicated, the carrying value of intangible assets will be adjusted and an impairment loss is recorded equal to the difference between the asset’s carrying value and fair value or disposable value.
During the nine months ended September 30, 2022 we impaired our fixed assets with a cost basis of $15,772 due to the lack of use. We had recorded accumulated depreciation and accumulated amortization of $8,764 for the impaired assets through the date of impairment, therefore we recorded impairment expense of $7,008 during the nine months ended September 30, 2022.
During the nine months ended September 30, 2021 we impaired our intangible assets with a cost basis of $991,000 due to the lack of recoverability. In addition, we impaired computer equipment with a cost basis of $14,661 and we impaired data processing equipment with a cost basis of $392,500 due to disposals. We had recorded accumulated depreciation and accumulated amortization of $723,490 for the impaired assets through the date of impairment, therefore we recorded impairment expense of $674,671 during the nine months ended September 30, 2021.
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| Fair Value of Financial Instruments | Fair Value of Financial Instruments
Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, based on our principal or, in the absence of a principal, most advantageous market for the specific asset or liability.
U.S. generally accepted accounting principles provide for a three-level hierarchy of inputs to valuation techniques used to measure fair value, defined as follows:
Our financial instruments consist of cash, accounts receivable, accounts payable, and debt. We have determined that the book value of our outstanding financial instruments as of September 30, 2022 and December 31, 2021, approximates the fair value due to their short-term nature or interest rates that approximate prevailing market rates.
INVESTVIEW, INC. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS AS OF SEPTEMBER 30, 2022 (Unaudited)
Items recorded or measured at fair value on a recurring basis in the accompanying consolidated financial statements consisted of the following items as of September 30, 2022:
Items recorded or measured at fair value on a recurring basis in the accompanying consolidated financial statements consisted of the following items as of December 31, 2021:
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| Revenue Recognition | Revenue Recognition
Subscription Revenue
Most of our revenue is generated by subscription sales and payment is received at the time of purchase. We recognize subscription revenue in accordance with ASC 606-10 where revenue is measured based on a consideration specified in a contract with a customer and recognized when we satisfy the performance obligation specified in each contract. Our performance obligation is to provide services over a fixed subscription period; therefore, we recognize revenue ratably over the subscription period and deferred revenue is recorded for the portion of the subscription period subsequent to each reporting date. Additionally, we offer a designated trial period to first time subscription customers, during which a full refund can be requested if a customer does not wish to continue with the subscription. Revenues are deferred during the trial period as collection is not probable until that time has passed. Revenues are presented net of refunds, sales incentives, credits, and known and estimated credit card chargebacks. As of September 30, 2022 and December 31, 2021 our deferred revenues were $2,046,443 and $3,288,443, respectively.
Mining Revenue
Through our wholly owned subsidiary, SAFETek, LLC, we leased equipment under a sale-leaseback arrangement. However, in June of 2020, we cancelled all leases and purchased all of the rights and obligations under these leases, which included obtaining ownership of all equipment. We use the equipment on blockchain networks to validate and add blocks of transactions to blockchain ledgers (commonly referred to as “mining”). As compensation for our mining activities, we are issued fees from processors and/or block rewards that are newly created cryptocurrency units granted to us. Our mining activities constitute the principal operations of SAFETek, LLC. Because we do not have contracts, nor do we have customers associated with our mining revenue, we recognize revenue when fees and/or rewards are settled, or ultimately granted to us as a result of our mining activities.
Cryptocurrency Revenue
We generate revenue from the sale of cryptocurrency packages to our customers through an arrangement with a third-party supplier with whom our Chairman is affiliated (see Note 5-Related Party Transactions). The various packages include different amounts of coin with differing rates of returns and terms and, in some cases prior to January 2022, included a product protection option that allows the purchaser to protect their initial purchase price. Both the coin and the protection options are delivered by third-party suppliers. In January 2022, we suspended any further offering of the product protection option after the third-party provider of that protection package was unable to comply with our standard vendor compliance protocols, citing certain offshore confidentiality entitlements. That suspension will remain in place until we are able to further validate the continued integrity of the product protection and the vendor’s ability to honor its commitments to our members.
INVESTVIEW, INC. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS AS OF SEPTEMBER 30, 2022 (Unaudited)
We recognize cryptocurrency revenue in accordance with ASC 606-10 where revenue is measured based on a consideration specified in a contract with a customer and recognized when we satisfy the performance obligation specified in each contract. Our performance obligation is to arrange for the third-parties to provide coin and protection (if applicable) to our customers and payment is received from our customers at the time of order placement. All customers are given two weeks to request a refund, therefore we record a customer advance on our balance sheet upon receipt of payment. After the two weeks have passed from order placement, we request our third-party supplier to deliver coin and protection (if applicable), at which time we recognize revenue and the amounts due to our supplier on our books. As of September 30, 2022 and December 31, 2021 our customer advances related to cryptocurrency revenue were $142,070 and $75,702, respectively.
Fee Revenue
We generate minimal fee revenue from our customers through SAFE Management, our subsidiary licensed as a Registered Investment Advisor and Commodities Trading Advisor. We recognize fee revenue in accordance with ASC 606-10 where revenue is measured based on a consideration specified in a contract with a customer and recognized when we satisfy the performance obligation specified in each contract. Our performance obligation is to deliver fully managed trading services to individuals who do not meet the requirements of Qualified Investors and who lack the time to trade for themselves. We recognize fee revenue as our performance obligation is met and we receive payment for such advisory fees in the month following recognition. However, since these businesses were largely dormant, during 2022, we elected to winddown and withdraw the SAFE Management state and NFA registrations, as we concluded there to be no material benefit to retaining an interest in these regulated businesses until we are able to launch our broader-based financial services model.
Miner Repair Revenue
Through our wholly owned subsidiary, SAFETek, LLC, we repair broken mining equipment for sale to third-party customers. We recognize miner repair revenue in accordance with ASC 606-10 where revenue is measured based on a consideration specified in a contract with a customer and recognized when we satisfy the performance obligation specified in each contract. Our performance obligation is to deliver the promised goods to our customers.
Digital Wallet Revenue
We generate revenue from the sale of digital wallets to our customers through an arrangement with a third-party supplier. We offer three tiers of wallets which include different features. The digital wallets are delivered by a third-party supplier.
We recognize digital wallet revenue in accordance with ASC 606-10 where revenue is measured based on a consideration specified in a contract with a customer and recognized when we satisfy the performance obligation specified in each contract. Our performance obligation is to arrange for the third-parties to provide the wallet to our customers and payment is received from our customers at the time of order placement.
Revenue generated for the nine months ended September 30, 2022, is as follows:
For the nine months ended September 30, 2022, foreign and domestic revenues were approximately $32.2 million and $15.3 million, respectively.
Revenue generated for the nine months ended September 30, 2021, is as follows:
INVESTVIEW, INC. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS AS OF SEPTEMBER 30, 2022 (Unaudited)
For the nine months ended September 30, 2021 foreign and domestic revenues were approximately $33.1 million and $33.0 million, respectively.
Revenue generated for the three months ended September 30, 2022, is as follows:
For the three months ended September 30, 2022, foreign and domestic revenues were approximately $10.3 million and $4.7 million, respectively.
Revenue generated for the three months ended September 30, 2021, is as follows:
For the three months ended September 30, 2021 foreign and domestic revenues were approximately $13.6 million and $9.8 million, respectively.
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| Advertising, Selling, and Marketing Costs | Advertising, Selling, and Marketing Costs
We expense advertising, selling, and marketing costs as incurred. Advertising, selling, and marketing costs include costs of promoting our product worldwide, including promotional events. Advertising, selling, and marketing expenses for the nine months ended September 30, 2022 and 2021, totaled $53,139 and $93,984, respectively.
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| Cost of Sales and Service | Cost of Sales and Service
Included in our costs of sales and services are amounts paid to our trading and market experts that provide financial education content and tools to our subscription customers, hosting fees that we pay to vendors to set up our mining equipment at third-party sites in order to generate mining revenue, and the costs associated with our miner repair revenue. Costs of sales and services for the nine months ended September 30, 2022 and 2021, totaled $5,873,214 and $7,186,149, respectively.
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| Inventory | Inventory
Inventory consists of raw materials and work in process to be sold as part of our miner repair revenue. Inventory is valued at the lower of cost or net realizable value using the first-in, first-out (FIFO) method and is inclusive of any shipping and tax costs.
Inventory was made up of the following at each balance sheet date:
INVESTVIEW, INC. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS AS OF SEPTEMBER 30, 2022 (Unaudited)
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| Income Taxes | Income Taxes
Income taxes are recorded in accordance with ASC Topic 740, Income Taxes, which requires the recognition of deferred tax liabilities and assets for the expected future tax consequences of events that have been included in the financial statement or tax returns. Under this method, deferred tax liabilities and assets are determined based on the difference between financial statements and tax basis of assets and liabilities, including operating losses and credit carryforwards, using enacted tax rates in effect for the year in which the differences are expected to reverse.
Management judgment is required in determining our provision for income taxes, our deferred tax assets and liabilities, and any valuation allowance recorded against our deferred tax assets. Deferred tax assets are reduced by a valuation allowance if, based on the consideration of all available evidence, it is more likely than not that some or all of the deferred tax assets will not be realized. Changes in assumptions in future periods may require we adjust our valuation allowance, which could materially impact our financial position and results of operations. The company recognizes the benefit of an uncertain tax position that it has taken or expects to take on its income tax return, if such a position is more likely than not to be sustained.
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| Net Income (Loss) per Share |
We follow ASC subtopic 260-10, Earnings per Share (“ASC 260-10”), which specifies the computation, presentation, and disclosure requirements of earnings per share information. Basic income (loss) per share has been calculated based upon the weighted average number of common shares outstanding. Diluted income (loss) per share reflects the potential dilution that could occur if stock options or other contracts to issue common stock were exercised or converted during the period. Dilutive securities having an anti-dilutive effect on diluted earnings per share are excluded from the calculation.
INVESTVIEW, INC. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS AS OF SEPTEMBER 30, 2022 (Unaudited)
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| Lease Obligation | Lease Obligation
We determine if an arrangement is a lease at inception. Operating leases are included in the operating lease right-of-use asset account, the operating lease liability, current account, and the operating lease liability, long term account in our balance sheet. Right-of-use assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease.
Operating lease right-of-use assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. For leases in which the rate implicit in the lease is not readily determinable, we use our incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. We have elected to not apply the recognition requirements of ASC 842 to short-term leases (leases with terms of twelve months or less). Lease terms include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. Lease expense for operating lease arrangements is recognized on a straight-line basis over the lease term. We have elected the practical expedient and will not separate non-lease components from lease components and will instead account for each separate lease component and non-lease component associated with the lease components as a single lease component. |
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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) |
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| Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| SCHEDULE OF EXCHANGE RATES | The following rates were used to translate our Euro bank account into USD at the following balance sheet dates.
The following rates were used to translate the accounts of Kuvera France S.A.S. into USD for the following operating periods.
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| SCHEDULE OF RECONCILIATION OF CASH, CASH EQUIVALENTS, AND RESTRICTED CASH | The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within the balance sheet that sum to the total of the same such amounts shown in the statement of cash flows.
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| SCHEDULE OF FIXED ASSETS | Fixed assets were made up of the following at each balance sheet date:
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| SCHEDULE OF FAIR VALUE ASSETS AND LIABILITIES MEASURED ON RECURRING BASIS | Items recorded or measured at fair value on a recurring basis in the accompanying consolidated financial statements consisted of the following items as of September 30, 2022:
Items recorded or measured at fair value on a recurring basis in the accompanying consolidated financial statements consisted of the following items as of December 31, 2021:
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| SCHEDULE OF REVENUE GENERATED | Revenue generated for the nine months ended September 30, 2022, is as follows:
For the nine months ended September 30, 2022, foreign and domestic revenues were approximately $32.2 million and $15.3 million, respectively.
Revenue generated for the nine months ended September 30, 2021, is as follows:
INVESTVIEW, INC. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS AS OF SEPTEMBER 30, 2022 (Unaudited)
For the nine months ended September 30, 2021 foreign and domestic revenues were approximately $33.1 million and $33.0 million, respectively.
Revenue generated for the three months ended September 30, 2022, is as follows:
For the three months ended September 30, 2022, foreign and domestic revenues were approximately $10.3 million and $4.7 million, respectively.
Revenue generated for the three months ended September 30, 2021, is as follows:
|
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| SCHEDULE OF INVENTORY | Inventory was made up of the following at each balance sheet date:
|
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| SCHEDULE OF ANTIDILUTIVE SECURITIES EXCLUDED FROM COMPUTATION OF EARNINGS PER SHARE |
|
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| SCHEDULE OF EARNINGS PER SHARE BASIC AND DILUTED |
|
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RELATED-PARTY TRANSACTIONS (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Related Party Transactions [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| SCHEDULE OF RELATED PARTY PAYABLES | Our related-party payables consisted of the following:
INVESTVIEW, INC. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS AS OF SEPTEMBER 30, 2022 (Unaudited)
|
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| SCHEDULE OF INTEREST EXPENSES RELATED PARTY | We expensed interest related to our related-party payables, as follows:
|
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DEBT (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| SCHEDULE OF DEBT | Our debt consisted of the following:
|
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DERIVATIVE LIABILITY (Tables) |
9 Months Ended | |||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2022 | ||||||||||||||||||||||||||
| Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||||||||||||||||||||||||
| SCHEDULE OF DERIVATIVE LIABILITY | During the nine months ended September 30, 2022, we had the following activity in our derivative liability account relating to our warrants:
|
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| SCHEDULE OF ASSUMPTIONS USED IN BINOMINAL OPTION PRICING MODE |
|
OPERATING LEASE (Tables) |
9 Months Ended | |||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2022 | ||||||||||||||||||||||||||||||||||||||
| Operating Lease | ||||||||||||||||||||||||||||||||||||||
| SCHEDULE OF FUTURE MINIMUM LEASE PAYMENTS UNDER NON-CANCELLABLE LEASES | Future minimum lease payments under non-cancellable leases as of September 30, 2022 were as follows:
|
STOCKHOLDERS’ EQUITY (DEFICIT) (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| SUMMARY OF WARRANTS ISSUED | Transactions involving our warrants are summarized as follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| SUMMARY OF WARRANTS OUTSTANDING | Details of our warrants outstanding as of September 30, 2022, is as follows:
|
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ACQUISITION & NONCONTROLLING INTEREST IN SUBSIDIARY (Tables) |
9 Months Ended | |||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2022 | ||||||||||||||||
| Business Combination and Asset Acquisition [Abstract] | ||||||||||||||||
| SCHEDULE OF ASSETS ACQUISITION |
|
ORGANIZATION AND NATURE OF BUSINESS (Details Narrative) - USD ($) |
9 Months Ended | ||
|---|---|---|---|
Jun. 06, 2017 |
Apr. 01, 2017 |
Sep. 30, 2022 |
|
| Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||
| Entity incorporation, date of incorporation | Jan. 30, 1946 | ||
| Contribution Agreement [Member] | Wealth Generators LLC [Member] | |||
| Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||
| Percentage on contributed shares | 100.00% | ||
| Number of shares exchanged for common stock | 1,358,670,942 | ||
| Acquisition Agreement [Member] | Market Trend Strategies LLC [Member] | |||
| Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||
| Value pre-merger liabilities | $ 419,139 |
SCHEDULE OF EXCHANGE RATES (Details) - Euro To U S D [Member] |
9 Months Ended | ||
|---|---|---|---|
Sep. 30, 2022 |
Sep. 30, 2021 |
Dec. 31, 2021 |
|
| Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||
| Euro to USD | 1.1371 | ||
| Euro to USD | 1.1118 | 1.1963 | |
SCHEDULE OF RECONCILIATION OF CASH, CASH EQUIVALENTS, AND RESTRICTED CASH (Details) - USD ($) |
Sep. 30, 2022 |
Dec. 31, 2021 |
Sep. 30, 2021 |
Dec. 31, 2020 |
|---|---|---|---|---|
| Accounting Policies [Abstract] | ||||
| Cash and cash equivalents | $ 19,081,445 | $ 30,995,283 | ||
| Restricted cash, current | 819,338 | 819,338 | ||
| Restricted cash, long term | 187,782 | 802,285 | ||
| Total cash, cash equivalents, and restricted cash shown on the statement of cash flows | $ 20,088,565 | $ 32,616,906 | $ 22,433,596 | $ 1,554,449 |
SCHEDULE OF FIXED ASSETS (Details) - USD ($) |
9 Months Ended | |
|---|---|---|
Sep. 30, 2022 |
Dec. 31, 2021 |
|
| Property, Plant and Equipment [Line Items] | ||
| Property, plant and equipment, gross | $ 23,802,981 | $ 11,168,913 |
| Accumulated depreciation | (7,075,422) | (4,486,036) |
| Net book value | $ 16,727,559 | 6,682,877 |
| Furniture and Fixtures [Member] | ||
| Property, Plant and Equipment [Line Items] | ||
| Estimated useful life of fixed assets | 10 years | |
| Property, plant and equipment, gross | $ 76,717 | 82,942 |
| Computer Equipment [Member] | ||
| Property, Plant and Equipment [Line Items] | ||
| Estimated useful life of fixed assets | 3 years | |
| Property, plant and equipment, gross | $ 13,560 | 15,241 |
| Leasehold Improvements [Member] | ||
| Property, Plant and Equipment [Line Items] | ||
| Property, plant and equipment, gross | $ 40,528 | 40,528 |
| Estimated useful life of fixed assets | Remaining Lease Term | |
| Data Processing Equipment [Member] | ||
| Property, Plant and Equipment [Line Items] | ||
| Estimated useful life of fixed assets | 3 years | |
| Property, plant and equipment, gross | $ 23,658,549 | 10,638,619 |
| Construction in Progress [Member] | ||
| Property, Plant and Equipment [Line Items] | ||
| Property, plant and equipment, gross | 391,583 | |
| Mining Repair Tools and Equipment [Member] | ||
| Property, Plant and Equipment [Line Items] | ||
| Estimated useful life of fixed assets | 1 year | |
| Property, plant and equipment, gross | $ 13,627 |
SCHEDULE OF FAIR VALUE ASSETS AND LIABILITIES MEASURED ON RECURRING BASIS (Details) - USD ($) |
Sep. 30, 2022 |
Dec. 31, 2021 |
|---|---|---|
| Defined Benefit Plan Disclosure [Line Items] | ||
| Total Assets | ||
| Derivative liability | 29,216 | 69,371 |
| Total Liabilities | 29,216 | 69,371 |
| Fair Value, Inputs, Level 1 [Member] | ||
| Defined Benefit Plan Disclosure [Line Items] | ||
| Total Assets | ||
| Derivative liability | ||
| Total Liabilities | ||
| Fair Value, Inputs, Level 2 [Member] | ||
| Defined Benefit Plan Disclosure [Line Items] | ||
| Total Assets | ||
| Derivative liability | ||
| Total Liabilities | ||
| Fair Value, Inputs, Level 3 [Member] | ||
| Defined Benefit Plan Disclosure [Line Items] | ||
| Total Assets | ||
| Derivative liability | 29,216 | 69,371 |
| Total Liabilities | $ 29,216 | $ 69,371 |
SCHEDULE OF REVENUE GENERATED (Details) - USD ($) |
3 Months Ended | 9 Months Ended | ||
|---|---|---|---|---|
Sep. 30, 2022 |
Sep. 30, 2021 |
Sep. 30, 2022 |
Sep. 30, 2021 |
|
| Product Information [Line Items] | ||||
| Gross billings/receipts | $ 16,133,453 | $ 25,572,329 | $ 51,178,986 | $ 79,975,629 |
| Refunds, incentives, credits, and chargebacks | (814,794) | (869,790) | (2,428,351) | (2,009,960) |
| Amounts paid to providers | (322,500) | (1,331,439) | (1,240,796) | (11,914,034) |
| Net revenue | 14,996,159 | 23,371,100 | 47,509,839 | 66,051,635 |
| Subscription Revenue [Member] | ||||
| Product Information [Line Items] | ||||
| Gross billings/receipts | 12,638,375 | 14,904,004 | 39,087,141 | 34,843,588 |
| Refunds, incentives, credits, and chargebacks | (814,794) | (869,790) | (2,428,351) | (2,009,960) |
| Amounts paid to providers | ||||
| Net revenue | 11,823,581 | 14,034,214 | 36,658,790 | 32,833,628 |
| Cryptocurrency Revenue [Member] | ||||
| Product Information [Line Items] | ||||
| Gross billings/receipts | 673,933 | 2,329,566 | 2,548,316 | 20,082,329 |
| Refunds, incentives, credits, and chargebacks | ||||
| Amounts paid to providers | (322,500) | (1,331,439) | (1,239,507) | (11,914,034) |
| Net revenue | 351,433 | 998,127 | 1,308,809 | 8,168,295 |
| Mining Revenue [Member] | ||||
| Product Information [Line Items] | ||||
| Gross billings/receipts | 2,777,634 | 8,338,759 | 9,412,751 | 25,047,680 |
| Refunds, incentives, credits, and chargebacks | ||||
| Amounts paid to providers | ||||
| Net revenue | 2,777,634 | 8,338,759 | 9,412,751 | 25,047,680 |
| Miner Repair Revenue [Member] | ||||
| Product Information [Line Items] | ||||
| Gross billings/receipts | 43,511 | 123,621 | ||
| Refunds, incentives, credits, and chargebacks | ||||
| Amounts paid to providers | ||||
| Net revenue | 43,511 | 123,621 | ||
| Digital Wallet Revenue [Member] | ||||
| Product Information [Line Items] | ||||
| Gross billings/receipts | 7,157 | |||
| Refunds, incentives, credits, and chargebacks | ||||
| Amounts paid to providers | (1,289) | |||
| Net revenue | 5,868 | |||
| Fee Revenue [Member] | ||||
| Product Information [Line Items] | ||||
| Gross billings/receipts | 2,032 | |||
| Refunds, incentives, credits, and chargebacks | ||||
| Amounts paid to providers | ||||
| Net revenue | $ 2,032 | |||
SCHEDULE OF INVENTORY (Details) - USD ($) |
Sep. 30, 2022 |
Dec. 31, 2021 |
|---|---|---|
| Accounting Policies [Abstract] | ||
| Raw materials | $ 448,056 | |
| Work in process | 83,222 | |
| Finished goods | 408,040 | |
| Total inventory | $ 939,318 |
SCHEDULE OF ANTIDILUTIVE SECURITIES EXCLUDED FROM COMPUTATION OF EARNINGS PER SHARE (Details) - shares |
3 Months Ended | 9 Months Ended | |
|---|---|---|---|
Sep. 30, 2022 |
Sep. 30, 2021 |
Sep. 30, 2021 |
|
| Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
| Antidilutive securities | 1,036,428,571 | 749,558,408 | 601,929,592 |
| Warrant [Member] | |||
| Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
| Antidilutive securities | 439,266 | 177,567 | |
| Notes Convertible Into Comon Stock [Member] | |||
| Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
| Antidilutive securities | 471,428,571 | 577,162,620 | 543,803,307 |
| Class B Redeemable Units of Investview Financial Group Holdings, LLC [Member] | |||
| Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
| Antidilutive securities | 565,000,000 | 171,956,522 | 57,948,718 |
SCHEDULE OF EARNINGS PER SHARE BASIC AND DILUTED (Details) - USD ($) |
3 Months Ended | 9 Months Ended | |||||
|---|---|---|---|---|---|---|---|
Sep. 30, 2022 |
Mar. 31, 2022 |
Sep. 30, 2021 |
Jun. 30, 2021 |
Mar. 31, 2021 |
Sep. 30, 2022 |
Sep. 30, 2021 |
|
| Accounting Policies [Abstract] | |||||||
| Net income | $ (420,679) | $ 2,379,029 | $ (43,244,849) | $ 8,772,658 | $ 4,941,561 | $ 1,858,642 | $ (29,530,630) |
| Less: preferred dividends | $ (204,835) | $ (204,835) | (614,505) | $ (534,176) | |||
| Add: interest expense on convertible debt | 469,884 | ||||||
| Net income available to common shareholders (numerator) | $ 1,714,021 | ||||||
| Basic weighted average number of common shares outstanding | 2,641,275,489 | 2,992,958,712 | 2,690,146,350 | 3,071,829,624 | |||
| Dilutive impact of convertible notes | 471,428,571 | ||||||
| Dilutive impact of non-voting membership interest | 565,000,000 | ||||||
| Diluted weighted average number of common shares outstanding (denominator) | 2,641,275,489 | 2,992,958,712 | 3,726,574,921 | 3,071,829,624 | |||
| Diluted income per common share | $ (0.00) | $ (0.01) | $ 0.00 | $ (0.01) | |||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($) |
3 Months Ended | 9 Months Ended | ||||
|---|---|---|---|---|---|---|
Sep. 30, 2022 |
Sep. 30, 2021 |
Sep. 30, 2022 |
Sep. 30, 2021 |
Dec. 31, 2021 |
Sep. 03, 2021 |
|
| Product Information [Line Items] | ||||||
| Cash, FDIC insured amount | $ 250,000 | $ 250,000 | ||||
| Cash balances exceeded FDIC limits | 17,850,503 | 17,850,503 | $ 19,336,350 | |||
| Cash equivalents | 0 | 0 | 0 | |||
| Allowance for doubtful accounts | 719,342 | 719,342 | 719,342 | |||
| Depreciation expense | 4,251,122 | $ 2,111,333 | ||||
| Net book value of assets sold | 654,942 | 654,942 | ||||
| Cash received from the disposal of fixed assets | 1,044,492 | |||||
| Gain on disposal of assets | 118,041 | 389,550 | ||||
| Net book value of disposed assets | 7,008 | 7,008 | ||||
| Assets impairment expense | 7,008 | |||||
| Value of cryptocurrencies | 3,018,759 | 3,018,759 | 2,141,093 | |||
| Other current assets | 2,872,589 | 2,872,589 | 2,018,324 | |||
| Other restricted assets, long term | 146,170 | 146,170 | 122,769 | |||
| Revenues | 14,996,159 | 23,371,100 | 47,509,839 | 66,051,635 | ||
| Realized gain loss on cryptocurrency | 318,000 | (1,651,024) | 1,338,597 | (892,266) | ||
| Realized gain loss on cryptocurrency | (318,000) | 1,651,024 | (1,338,597) | 892,266 | ||
| Impairment of long lived assets | 15,772 | 991,000 | ||||
| Accumulated depreciation of long-lived assets | 8,764 | 723,490 | ||||
| Impairment expense | 625 | 140,233 | 7,008 | 674,671 | ||
| Deferred revenue | 2,046,443 | 2,046,443 | 3,288,443 | |||
| Customer advance | 142,070 | 142,070 | $ 75,702 | |||
| Advertising, selling, and marketing expenses | 53,139 | 93,984 | ||||
| Cost of sales and service | 2,144,733 | 2,101,490 | $ 5,873,214 | 7,186,149 | ||
| Cryptocurrency Revenue [Member] | ||||||
| Product Information [Line Items] | ||||||
| Revenue description | Both the coin and the protection options are delivered by third-party suppliers. In January 2022, we suspended any further offering of the product protection option after the third-party provider of that protection package was unable to comply with our standard vendor compliance protocols, citing certain offshore confidentiality entitlements. That suspension will remain in place until we are able to further validate the continued integrity of the product protection and the vendor’s ability to honor its commitments to our members. | |||||
| Computer Equipment [Member] | ||||||
| Product Information [Line Items] | ||||||
| Impairment of long lived assets | 14,661 | |||||
| Equipment [Member] | ||||||
| Product Information [Line Items] | ||||||
| Impairment of long lived assets | 392,500 | |||||
| Securities Purchase Agreement [Member] | M Power Trading Systems LLC [Member] | ||||||
| Product Information [Line Items] | ||||||
| Intangible asset | $ 7,240,000 | |||||
| Mining Revenue [Member] | ||||||
| Product Information [Line Items] | ||||||
| Revenues | 2,777,634 | 8,338,759 | $ 9,412,751 | 25,047,680 | ||
| Foreign Revenue [Member] | ||||||
| Product Information [Line Items] | ||||||
| Revenues | 10,300,000 | 13,600,000 | 32,200,000 | 33,100,000 | ||
| Domestic Revenue [Member] | ||||||
| Product Information [Line Items] | ||||||
| Revenues | $ 4,700,000 | $ 9,800,000 | $ 15,300,000 | $ 33,000,000.0 | ||
LIQUIDITY (Details Narrative) - USD ($) |
3 Months Ended | 9 Months Ended | ||||||
|---|---|---|---|---|---|---|---|---|
Sep. 30, 2022 |
Mar. 31, 2022 |
Sep. 30, 2021 |
Jun. 30, 2021 |
Mar. 31, 2021 |
Sep. 30, 2022 |
Sep. 30, 2021 |
Dec. 31, 2021 |
|
| Cash provided by operating activities | $ 7,334,474 | $ 19,988,966 | ||||||
| Income from operations | 6,406,965 | |||||||
| Net income (loss) | $ (420,679) | $ 2,379,029 | $ (43,244,849) | $ 8,772,658 | $ 4,941,561 | 1,858,642 | $ (29,530,630) | |
| Cash and cash equivalents | 19,081,445 | 19,081,445 | $ 30,995,283 | |||||
| Working capital | 14,565,190 | 14,565,190 | ||||||
| Other current assets | 2,872,589 | 2,872,589 | $ 2,018,324 | |||||
| Unrestricted Cryptocurrency [Member] | ||||||||
| Other current assets | $ 2,872,589 | $ 2,872,589 | ||||||
SCHEDULE OF RELATED PARTY PAYABLES (Details) - USD ($) |
Sep. 30, 2022 |
Dec. 31, 2021 |
||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Related Party Transactions [Abstract] | ||||||||||||||
| Convertible Promissory Note entered into on 4/27/20, net of debt discount of $984,967 as of September 30, 2022 | [1] | $ 315,033 | $ 239,521 | |||||||||||
| Convertible Promissory Note entered into on 5/27/20, net of debt discount of $534,560 as of September 30, 2022 | [2] | 165,240 | 124,149 | |||||||||||
| Convertible Promissory Note entered into on 11/9/20, net of debt discount of $1,040,828 as of September 30, 2022 | [3] | 259,172 | 198,187 | |||||||||||
| Promissory note entered into on 12/15/20 | [4] | 80,322 | ||||||||||||
| Convertible Promissory Note entered into on 3/30/21 | [5] | 476,670 | ||||||||||||
| Working Capital Promissory Note entered into on 3/22/21 | [6] | 1,201,597 | 1,200,607 | |||||||||||
| Total related-party debt | 1,941,042 | 2,319,456 | ||||||||||||
| Less: Current portion | (1,201,597) | (1,832,642) | ||||||||||||
| Related-party debt, long term | $ 739,445 | $ 486,814 | ||||||||||||
| ||||||||||||||
SCHEDULE OF RELATED PARTY PAYABLES (Details) (Parenthetical) - USD ($) |
1 Months Ended | 3 Months Ended | 6 Months Ended | 9 Months Ended | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 22, 2021 |
Dec. 15, 2020 |
Nov. 09, 2020 |
May 27, 2020 |
Apr. 27, 2020 |
Mar. 30, 2021 |
Sep. 30, 2022 |
Sep. 30, 2021 |
Sep. 22, 2021 |
Sep. 21, 2021 |
Sep. 30, 2022 |
Sep. 30, 2021 |
Dec. 31, 2021 |
|
| Related Party Transaction [Line Items] | |||||||||||||
| Proceeds from related parties | $ 1,000,000 | ||||||||||||
| Amortization of debt discount | 1,643,726 | 1,165,663 | |||||||||||
| Notes Payable | $ 9,199,870 | 9,199,870 | $ 11,402,659 | ||||||||||
| Repayments of Related Party Debt | 2,718,142 | 1,107,819 | |||||||||||
| Repayments of remaining debt | 729,016 | 919,703 | |||||||||||
| Gain due to extinguishment | $ 21,349 | 455 | $ 433,152 | ||||||||||
| Board Of Directors [Member] | Wealth Engineering [Member] | |||||||||||||
| Related Party Transaction [Line Items] | |||||||||||||
| Debt instrument discount | $ 446,000 | 259,678 | 259,678 | ||||||||||
| Proceeds from related parties | 154,000 | ||||||||||||
| Notes Payable | 600,000 | ||||||||||||
| Repayments of remaining debt | 340,000 | ||||||||||||
| Board Of Directors [Member] | Wealth Engineering [Member] | Thirty Months [Member] | |||||||||||||
| Related Party Transaction [Line Items] | |||||||||||||
| Repayments of Related Party Debt | $ 20,000 | ||||||||||||
| Debt term | 30 months | ||||||||||||
| Mr Cammarata [Member] | |||||||||||||
| Related Party Transaction [Line Items] | |||||||||||||
| Accrued liabilities | 1,600,000 | 1,600,000 | |||||||||||
| Convertible Promissory Note [Member] | |||||||||||||
| Related Party Transaction [Line Items] | |||||||||||||
| Debt instrument discount | 984,967 | 984,967 | |||||||||||
| Convertible Promissory Note [Member] | Chairman [Member] | DBR Capital LLC [Member] | |||||||||||||
| Related Party Transaction [Line Items] | |||||||||||||
| Proceeds from related parties | $ 1,300,000 | ||||||||||||
| Debt instrument interest percentage | 20.00% | ||||||||||||
| Debt instrument due date | Apr. 27, 2030 | ||||||||||||
| Debt conversion price per share | $ 0.007 | $ 0.01257 | |||||||||||
| Beneficial conversion feature | $ 1,300,000 | ||||||||||||
| Amortization of debt discount | 97,180 | ||||||||||||
| Interest expense | 195,012 | ||||||||||||
| Convertible Promissory Note Two [Member] | |||||||||||||
| Related Party Transaction [Line Items] | |||||||||||||
| Debt instrument discount | 534,560 | 534,560 | |||||||||||
| Convertible Promissory Note Two [Member] | DBR Capital LLC [Member] | |||||||||||||
| Related Party Transaction [Line Items] | |||||||||||||
| Debt conversion price per share | $ 0.007 | ||||||||||||
| Beneficial conversion feature | $ 1,300,000 | ||||||||||||
| Amortization of debt discount | 102,691 | ||||||||||||
| Debt instrument interest percentage | 25.00% | ||||||||||||
| Facility fee percentage | 13.50% | ||||||||||||
| Convertible Promissory Note Three [Member] | |||||||||||||
| Related Party Transaction [Line Items] | |||||||||||||
| Debt instrument discount | 1,040,828 | 1,040,828 | |||||||||||
| Convertible Promissory Note One [Member] | |||||||||||||
| Related Party Transaction [Line Items] | |||||||||||||
| Interest expense | 375,372 | ||||||||||||
| Convertible Promissory Note One [Member] | DBR Capital LLC [Member] | |||||||||||||
| Related Party Transaction [Line Items] | |||||||||||||
| Proceeds from related parties | $ 1,300,000 | $ 700,000 | |||||||||||
| Debt instrument interest percentage | 38.50% | 20.00% | |||||||||||
| Debt instrument due date | Apr. 27, 2030 | ||||||||||||
| Debt conversion price per share | $ 0.007 | $ 0.01257 | |||||||||||
| Beneficial conversion feature | $ 700,000 | ||||||||||||
| Amortization of debt discount | 52,761 | ||||||||||||
| Interest expense | 105,003 | ||||||||||||
| Convertible Promissory Note Four [Member] | |||||||||||||
| Related Party Transaction [Line Items] | |||||||||||||
| Debt instrument interest percentage | 0.11% | ||||||||||||
| Beneficial conversion feature | $ 12,000,000 | ||||||||||||
| Interest expense | 990 | ||||||||||||
| Debt instrument, principal amount | 1,200,000 | ||||||||||||
| Convertible Promissory Note Four [Member] | Maximum [Member] | |||||||||||||
| Related Party Transaction [Line Items] | |||||||||||||
| Debt instrument, principal amount | $ 1,500,000 | ||||||||||||
| Convertible Promissory Note Four [Member] | Board Of Directors [Member] | |||||||||||||
| Related Party Transaction [Line Items] | |||||||||||||
| Debt instrument discount | $ 1,550,000 | $ 1,550,000 | 1,550,000 | ||||||||||
| Debt instrument interest percentage | 500.00% | ||||||||||||
| Debt conversion price per share | $ 0.02 | $ 0.008 | |||||||||||
| Beneficial conversion feature | $ 1,550,000 | ||||||||||||
| Amortization of debt discount | 1,131,417 | ||||||||||||
| Notes Payable | 1,000,000 | ||||||||||||
| Interest Payable | 200,000 | ||||||||||||
| Short term advance | 350,000 | ||||||||||||
| Debt instrument, principal amount | $ 1,550,000 | ||||||||||||
| Initial debt discount | $ 738,904 | ||||||||||||
| Remaining debt discount | $ 806,849 | ||||||||||||
| Gain due to extinguishment | $ 743,151 | ||||||||||||
| Interest expense, debt | $ 19,626 | ||||||||||||
| Convertible Promissory Note Four [Member] | Working Capital Promissory [Member] | |||||||||||||
| Related Party Transaction [Line Items] | |||||||||||||
| Acquire percentage | 100.00% | ||||||||||||
SCHEDULE OF INTEREST EXPENSES RELATED PARTY (Details) - USD ($) |
3 Months Ended | 9 Months Ended | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2022 |
Sep. 30, 2021 |
Sep. 30, 2022 |
Sep. 30, 2021 |
|||||||||
| Related Party Transaction [Line Items] | ||||||||||||
| Interest expenses related parties | $ 310,595 | $ 763,791 | $ 2,339,729 | $ 1,897,557 | ||||||||
| Wealth Engineering [Member] | ||||||||||||
| Related Party Transaction [Line Items] | ||||||||||||
| Interest expenses related parties | [1] | 259,678 | ||||||||||
| DBR Capital [Member] | ||||||||||||
| Related Party Transaction [Line Items] | ||||||||||||
| Interest expenses related parties | [2] | 310,265 | 928,019 | |||||||||
| Joseph Cammarata [Member] | ||||||||||||
| Related Party Transaction [Line Items] | ||||||||||||
| Interest expenses related parties | [3] | 1,151,042 | ||||||||||
| SSA Technologies LLC [Member] | ||||||||||||
| Related Party Transaction [Line Items] | ||||||||||||
| Interest expenses related parties | [4] | $ 330 | $ 990 | |||||||||
| ||||||||||||
SCHEDULE OF INTEREST EXPENSES RELATED PARTY (Details)(Parenthetical) - USD ($) |
3 Months Ended | 9 Months Ended | |
|---|---|---|---|
Sep. 30, 2022 |
Sep. 30, 2022 |
Sep. 30, 2021 |
|
| Related Party Transaction [Line Items] | |||
| Amortization of debt discount | $ 1,643,726 | $ 1,165,663 | |
| Accrued interest | 14,024 | $ 17,803 | |
| DBR Capital [Member] | |||
| Related Party Transaction [Line Items] | |||
| Amortization of debt discount | $ 85,136 | 252,632 | |
| Accrued interest | 225,129 | 675,387 | |
| Interest expense | 225,129 | 750,430 | |
| Joseph Cammarata [Member] | |||
| Related Party Transaction [Line Items] | |||
| Amortization of debt discount | 0 | 1,131,417 | |
| Accrued interest | 0 | 19,626 | |
| Interest expense | $ 0 | $ 77,712 | |
RELATED-PARTY TRANSACTIONS (Details Narrative) - USD ($) |
3 Months Ended | 9 Months Ended | 12 Months Ended | ||
|---|---|---|---|---|---|
Apr. 27, 2020 |
Sep. 30, 2021 |
Sep. 30, 2022 |
Sep. 30, 2021 |
Dec. 31, 2021 |
|
| Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||
| Number of shares forfeited | 255,000,000 | ||||
| Number of shares forfeited | |||||
| Number of ungrated shares | 218,500,000 | ||||
| Number of options to purchase shares | 360,416,665 | ||||
| Performance fee decription | The performance fee is determined as a commission on sales, with a floating range between 5% to 10% of sales, on aggregate sales ranging from $1 million to over $40 million. The performance fee is to be paid in ndau coins. During the most recent year ended December 31, 2021, DBR Capital earned a performance fee in connection with sales by Oneiro to Investview of approximately 77,000 ndau coins. | ||||
| Additional paid in capital | $ 103,380,124 | $ 101,883,573 | |||
| Related party transaction amounts of advance | $ 11,000,000 | ||||
| Board of Directors Chairman [Member] | |||||
| Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||
| Stock lending arrangements during period shares | 77,000 | 77,000 | |||
| Additional paid in capital | $ 1,185,821 | ||||
| Separation Agreements [Member] | Mario Romano and Annette Raynor [Member] | |||||
| Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||
| Number of shares forfeited | 75,000,000 | ||||
| Number of stock repurchased | 43,101,939 | ||||
| Exchange for cash | $ 1,724,008 | ||||
| Share based compensation vesting, shares | 63,333,333 | ||||
| Separation Agreements [Member] | Chief Financial Officer [Member] | |||||
| Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||
| Number of shares forfeited | $ 69,833,334 | ||||
| Separation Agreements [Member] | Chief Executive Officer [Member] | |||||
| Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||
| Share based compensation vesting, shares | 1,300,000 | ||||
| Separation Agreements [Member] | Board of Directors Chairman [Member] | |||||
| Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||
| Number of unvested shares | 68,533,334 | ||||
| Number of ungrated shares | 218,500,000 | ||||
| Number of options to purchase shares | 360,416,665 | ||||
SCHEDULE OF DEBT (Details) - USD ($) |
Sep. 30, 2022 |
Dec. 31, 2021 |
||||
|---|---|---|---|---|---|---|
| Short-Term Debt [Line Items] | ||||||
| Total debt | $ 9,199,870 | $ 11,402,659 | ||||
| Current portion | (2,909,513) | (2,947,013) | ||||
| Debt, long term portion | 6,290,357 | 8,455,646 | ||||
| Loan With The US Small Business Administartion [Member] | ||||||
| Short-Term Debt [Line Items] | ||||||
| Total debt | [1] | 545,822 | 531,798 | |||
| Long Term Notes For APEX Lease Buyback [Member] | ||||||
| Short-Term Debt [Line Items] | ||||||
| Total debt | [2] | $ 8,654,048 | $ 10,870,861 | |||
| ||||||
SCHEDULE OF DEBT (Details) (Parenthetical) - USD ($) |
1 Months Ended | 9 Months Ended | ||
|---|---|---|---|---|
Apr. 30, 2020 |
Sep. 30, 2022 |
Sep. 30, 2021 |
Mar. 31, 2021 |
|
| Repayments of debt | $ 729,016 | $ 919,703 | ||
| U.S. Small Business Administration [Member] | ||||
| Proceeds from loans | $ 500,000 | |||
| Debt Instrument, Interest Rate, Stated Percentage | 3.75% | |||
| Debt instrument, periodic payment | $ 2,437 | 14,024 | ||
| APEX Tex LLC [Member] | ||||
| Debt Instrument, Interest Rate, Stated Percentage | 75.00% | |||
| Notes payable, related parties | $ 19,089,500 | |||
| Payment percentage | 25.00% | |||
| Repayments of debt | 729,016 | |||
| Issuances of cryptocurrency value | $ 1,487,797 | |||
SCHEDULE OF DERIVATIVE LIABILITY (Details) - USD ($) |
3 Months Ended | 9 Months Ended | ||
|---|---|---|---|---|
Sep. 30, 2022 |
Sep. 30, 2021 |
Sep. 30, 2022 |
Sep. 30, 2021 |
|
| Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||
| Derivative liability | $ 69,371 | |||
| Derivative liability recorded on new instruments | ||||
| Derivative liability reduced by warrant exercise | ||||
| (Gain) loss on fair value | $ (2,319) | $ (47,017) | (40,155) | $ (98,928) |
| Derivative liability | $ 29,216 | $ 29,216 | ||
SCHEDULE OF ASSUMPTIONS USED IN BINOMINAL OPTION PRICING MODE (Details) - Warrant [Member] |
9 Months Ended |
|---|---|
Sep. 30, 2022 | |
| Measurement Input, Risk Free Interest Rate [Member] | Minimum [Member] | |
| Derivative [Line Items] | |
| Fair value measurements valuation techniques, percent | 0.0299 |
| Measurement Input, Risk Free Interest Rate [Member] | Maximum [Member] | |
| Derivative [Line Items] | |
| Fair value measurements valuation techniques, percent | 0.0299 |
| Measurement Input, Expected Term [Member] | Minimum [Member] | |
| Derivative [Line Items] | |
| Fair value measurements valuation techniques, term | 2 years 10 months 2 days |
| Measurement Input, Expected Term [Member] | Maximum [Member] | |
| Derivative [Line Items] | |
| Fair value measurements valuation techniques, term | 3 years 9 months |
| Measurement Input, Option Volatility [Member] | Minimum [Member] | |
| Derivative [Line Items] | |
| Fair value measurements valuation techniques, percent | 1.50 |
| Measurement Input, Option Volatility [Member] | Maximum [Member] | |
| Derivative [Line Items] | |
| Fair value measurements valuation techniques, percent | 1.83 |
SCHEDULE OF FUTURE MINIMUM LEASE PAYMENTS UNDER NON-CANCELLABLE LEASES (Details) - USD ($) |
Sep. 30, 2022 |
Dec. 31, 2021 |
|||
|---|---|---|---|---|---|
| Operating Lease | |||||
| Remainder of 2022 | $ 58,875 | ||||
| 2023 | 57,045 | ||||
| Total | 115,920 | ||||
| Less: Interest | (3,645) | ||||
| Present value of lease liability | 112,275 | ||||
| Operating lease liability, current | (112,275) | [1] | $ (255,894) | ||
| Operating lease liability, long term | $ 43,460 | ||||
| |||||
OPERATING LEASE (Details Narrative) - USD ($) |
9 Months Ended | |
|---|---|---|
Sep. 30, 2022 |
Dec. 31, 2021 |
|
| Lessee, Lease, Description [Line Items] | ||
| Operating lease liability | $ 112,275 | |
| Operating lease right of use asset | $ 101,186 | $ 264,846 |
| Lease term | 7 months 13 days | |
| Operating lease expense | $ 180,927 | |
| Operating lease cost | $ 204,345 | |
| Weighted average discount rate | 12.00% | |
| Eatontown New Jersey [Member] | ||
| Lessee, Lease, Description [Line Items] | ||
| Operating lease liability | $ 110,097 | |
| Lease operating lease option | We have the option to extend the three-year lease term of the Eatontown Lease for a period | |
| Annual utility charge | $ 1.75 | |
| Variable lease cost | $ 1,940 | |
| Kaysville Lease [Member] | ||
| Lessee, Lease, Description [Line Items] | ||
| Operating lease right of use asset | 21,147 | |
| Conroe Lease [Member] | ||
| Lessee, Lease, Description [Line Items] | ||
| Operating lease liability | $ 174,574 | |
| Operating lease, term of contract | 24 months | |
| Wyckoff Lease [Member] | ||
| Lessee, Lease, Description [Line Items] | ||
| Operating lease liability | $ 22,034 | |
| Lease term | 24 months 15 days | |
| Haverford Lease [Member] | ||
| Lessee, Lease, Description [Line Items] | ||
| Operating lease liability | $ 152,961 | |
| Operating lease right of use asset | $ 125,522 | |
| Lease expiration date | Dec. 31, 2022 |
SUMMARY OF WARRANTS ISSUED (Details) |
9 Months Ended |
|---|---|
|
Sep. 30, 2022
$ / shares
shares
| |
| Equity [Abstract] | |
| Number of Warrants Outstanding, Beginning | shares | 1,178,320 |
| Weighted Average Exercise Price Outstanding, Beginning | $ / shares | $ 0.10 |
| Number of Warrants Granted | shares | |
| Weighted Average Exercise Price Granted | $ / shares | |
| Number of Warrants Canceled/Expired | shares | |
| Weighted Average Exercise Price Canceled | $ / shares | |
| Number of Warrants Exercised | shares | |
| Weighted Average Exercise Price Exercised | $ / shares | |
| Number of Warrants Outstanding, Ending | shares | 1,178,320 |
| Weighted Average Exercise Price Outstanding, Ending | $ / shares | $ 0.10 |
SUMMARY OF WARRANTS OUTSTANDING (Details) |
Sep. 30, 2022
$ / shares
shares
|
|---|---|
| Equity [Abstract] | |
| Exercise Price | $ / shares | $ 0.10 |
| Warrants Outstanding | 1,178,320 |
| Warrants Exercisable | 1,178,320 |
| Weighted Average Contractual Life (Years) | 3 years 4 months 24 days |
STOCKHOLDERS’ EQUITY (DEFICIT) (Details Narrative) - USD ($) |
3 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 03, 2021 |
Mar. 22, 2021 |
Sep. 30, 2022 |
Jun. 30, 2022 |
Mar. 31, 2022 |
Sep. 30, 2021 |
Jun. 30, 2021 |
Mar. 31, 2021 |
Sep. 30, 2022 |
Dec. 31, 2021 |
Sep. 30, 2021 |
Mar. 31, 2021 |
|
| Class of Stock [Line Items] | ||||||||||||
| Preferred stock, shares authorized | 50,000,000 | 50,000,000 | 50,000,000 | |||||||||
| Preferred stock, par value | $ 0.001 | $ 0.001 | $ 0.001 | |||||||||
| Number of units sold | 196,638 | |||||||||||
| Warrant term | 3 years 4 months 24 days | 3 years 4 months 24 days | ||||||||||
| Proceeds on sale of stock | $ 4,915,950 | |||||||||||
| Preferred stock, shares issued | 252,192 | 252,192 | 252,192 | |||||||||
| Preferred stock, shares outstanding | 252,192 | 252,192 | 252,192 | |||||||||
| Dividend liability | $ 233,830 | $ 233,830 | $ 219,705 | |||||||||
| Forfeited shares | 255,000,000 | |||||||||||
| Value of common stock shares cancelled | $ 1,274,615 | $ 242,024 | $ 255,163 | $ 360,962 | $ 989,391 | $ 592,978 | ||||||
| Derivative liability extinguished with warrant exercise | $ 255,000 | $ 12,285 | ||||||||||
| Stock issued for services and compensation and recognized | 11,500,000 | |||||||||||
| Share Based Compensation Grant Date Fair Value | $ 989,391 | |||||||||||
| Proceeds from warrant exercised | $ 8,264 | |||||||||||
| Common stock, shares outstanding | 2,641,275,489 | 2,641,275,489 | 2,904,210,762 | |||||||||
| Common stock, shares outstanding | 2,641,275,489 | 2,641,275,489 | 2,904,210,762 | |||||||||
| Number of unvested restricted shares | 68,533,334 | 68,533,334 | ||||||||||
| Number of stock options shares ungranted | 218,500,000 | 218,500,000 | ||||||||||
| Number of options to purchase shares of common stock | 360,416,665 | |||||||||||
| Option term | 5 years | |||||||||||
| Exercise price increase | $ 0.05 | |||||||||||
| stock compensation expense | $ 1,384,210 | |||||||||||
| Common stock, voting rights | The Class B Redeemable Units have no voting rights but can be exchanged at any time, within 5 years from the date of issuance, for 565,000,000 shares of our common stock on a one-for-one basis and are subject to significant restrictions upon resale through 2025 under the terms of a lock up agreement entered into as part of the purchase agreement. | |||||||||||
| Fair value discounted percentage | 32.00% | |||||||||||
| Business acquisition, transaction costs discount value | $ 27,700,000 | |||||||||||
| Investview Financial Group HoldingLLC [Member] | ||||||||||||
| Class of Stock [Line Items] | ||||||||||||
| Converted market value | $ 58,900,000 | |||||||||||
| Closing market price per share | $ 0.1532 | |||||||||||
| Transaction cost | $ 86,600,000 | |||||||||||
| Fair value discounted percentage | 32.00% | |||||||||||
| Number of exchange shares issuable | 565,000,000 | |||||||||||
| Warrant [Member] | ||||||||||||
| Class of Stock [Line Items] | ||||||||||||
| Number of units sold | 983,190 | |||||||||||
| Common Stock [Member] | ||||||||||||
| Class of Stock [Line Items] | ||||||||||||
| Forfeited shares | (6,666,666) | 219,833,334 | 33,333,333 | 6,666,666 | ||||||||
| Value of common stock shares cancelled | $ 11,500 | $ 219,834 | ||||||||||
| Number of common stock shares repurchased | 43,101,939 | |||||||||||
| Value of common stock shares repurchased | $ 1,724,008 | |||||||||||
| Stock issued for services and compensation and recognized | 11,500,000 | |||||||||||
| Number of warrants exercised | 82,640 | |||||||||||
| Proceeds from warrant exercised | $ 8,264 | |||||||||||
| Unit Offering [Member] | ||||||||||||
| Class of Stock [Line Items] | ||||||||||||
| Number of units sold | 2,000,000 | |||||||||||
| Sale of stock, price per share | $ 25 | $ 25 | ||||||||||
| Description of offering | (i) one share of our newly authorized Series B Preferred Stock and (ii) five warrants each exercisable to purchase one share of common stock at an exercise price of $0.10 per warrant share. Each Warrant offered is immediately exercisable on the date of issuance, will expire 5 years from the date of issuance, and its value has been classified as a fair value liability due to the terms of the instrument (see NOTE 7) | |||||||||||
| Warrant term | 5 years | 5 years | ||||||||||
| Cash Proceeds [Member] | ||||||||||||
| Class of Stock [Line Items] | ||||||||||||
| Number of units sold | 145,622 | |||||||||||
| Proceeds on sale of stock | $ 3,640,550 | |||||||||||
| Bitcoin Proceeds [Member] | ||||||||||||
| Class of Stock [Line Items] | ||||||||||||
| Number of units sold | 1,598 | |||||||||||
| Proceeds on sale of stock | $ 39,950 | |||||||||||
| Debt Proceeds [Member] | ||||||||||||
| Class of Stock [Line Items] | ||||||||||||
| Number of units sold | 49,418 | |||||||||||
| Proceeds on sale of stock | $ 1,235,450 | |||||||||||
| Series B Preferred Stock [Member] | ||||||||||||
| Class of Stock [Line Items] | ||||||||||||
| Preferred stock, par value | $ 3.25 | $ 3.25 | ||||||||||
| Conversion of stock, shares converted | 500 | |||||||||||
| Series B Preferred Stock [Member] | Board Of Directors [Member] | ||||||||||||
| Class of Stock [Line Items] | ||||||||||||
| Preferred stock, par value | $ 25 | $ 25 | ||||||||||
| Preferred stock designated | 2,000,000 | 2,000,000 | ||||||||||
| Series B Preferred Stock [Member] | ||||||||||||
| Class of Stock [Line Items] | ||||||||||||
| Number of units sold | 196,638 | |||||||||||
| Dividends, Cash | $ 614,505 | |||||||||||
| Payments to preferred stock dividend | 470,563 | |||||||||||
| Cryptocurrency [Member] | ||||||||||||
| Class of Stock [Line Items] | ||||||||||||
| Proceeds on sale of stock | $ 129,817 | |||||||||||
| Class B Units [Member] | David B Rothrock And James R Bell [Member] | Investview Financial Group HoldingLLC [Member] | ||||||||||||
| Class of Stock [Line Items] | ||||||||||||
| Common unit, outstanding | 565,000,000 | |||||||||||
| Number of exchange shares issuable | 565,000,000 | |||||||||||
COMMITMENTS AND CONTINGENCIES (Details Narrative) - USD ($) |
9 Months Ended | |||
|---|---|---|---|---|
Mar. 22, 2021 |
Sep. 30, 2022 |
Sep. 21, 2021 |
Mar. 30, 2021 |
|
| Loss Contingencies [Line Items] | ||||
| Purchase commitment, description | According to marketing and legal documents provided by such third-party provider, the product protection would allow the purchaser to protect its initial purchase price by obtaining 50% of its purchase price at five years or 100% of its purchase price at ten years. | |||
| Convertible Promissory Note Four [Member] | ||||
| Loss Contingencies [Line Items] | ||||
| Debt instrument, principal amount | $ 1,200,000 | |||
| Debt instrument interest percentage | 0.11% | |||
| Interest expense | $ 990 | |||
| Beneficial conversion feature | $ 12,000,000 | |||
| Convertible Promissory Note Four [Member] | Maximum [Member] | ||||
| Loss Contingencies [Line Items] | ||||
| Debt instrument, principal amount | $ 1,500,000 | |||
| Joseph Cammarata [Member] | ||||
| Loss Contingencies [Line Items] | ||||
| Debt instrument, principal amount | $ 1,550,000 | |||
| Debt conversion price per share | $ 0.008 | $ 0.02 | ||
| Common stock, terms of conversion | As of the date of this Report, Mr. Cammarata has not accepted our tender of the cash payment, and instead has asserted his entitlement to exercise his right to convert the Cammarata Note into our common shares. Although we believe that our cash tender was appropriate under the terms of the Cammarata Note and our claims for damages by Mr. Cammarata have marit, if Mr. Cammarata elects to challenge our cash tender in a court proceeding, and if we are unable to sustain our legal position on the matter, Mr. Cammarata could receive up to approximately 203 million shares of our common stock upon conversion of the Cammarata Note. | |||
| Working Capital Promissory [Member] | Convertible Promissory Note Four [Member] | ||||
| Loss Contingencies [Line Items] | ||||
| Acquire percentage | 100.00% |
INCOME TAXES (Details Narrative) - USD ($) |
3 Months Ended | 9 Months Ended | ||
|---|---|---|---|---|
Sep. 30, 2022 |
Sep. 30, 2021 |
Sep. 30, 2022 |
Sep. 30, 2021 |
|
| Income Tax Disclosure [Abstract] | ||||
| Provision for income taxes | $ 362,563 | $ 758 | $ 1,004,308 | $ 146,950 |
| Effective income tax rate | 623.90% | 0.002% | 35.10% | 0.50% |
SCHEDULE OF ASSETS ACQUISITION (Details) - USD ($) |
3 Months Ended | 9 Months Ended | |
|---|---|---|---|
Sep. 30, 2021 |
Sep. 30, 2022 |
Sep. 30, 2021 |
|
| Business Combination and Asset Acquisition [Abstract] | |||
| Purchase price (fair value of Units) | $ 58,859,440 | $ 58,859,440 | |
| Intangible asset (Prodigio software) | 7,240,000 | ||
| Loss on asset acquisition | $ 51,619,440 | ||
ACQUISITION & NONCONTROLLING INTEREST IN SUBSIDIARY (Details Narrative) - USD ($) $ / shares in Units, $ in Millions |
Sep. 03, 2021 |
Mar. 22, 2021 |
|---|---|---|
| Business Acquisition [Line Items] | ||
| Fair value discounted percentage | 32.00% | |
| Business acquisition, transaction costs discount value | $ 27.7 | |
| Investview Financial Group HoldingLLC [Member] | ||
| Business Acquisition [Line Items] | ||
| Number of exchange shares issuable | 565,000,000 | |
| Converted market value | $ 58.9 | |
| Closing market price per share | $ 0.1532 | |
| Transaction cost | $ 86.6 | |
| Fair value discounted percentage | 32.00% | |
| Investview Financial Group HoldingLLC [Member] | David B Rothrock And James R Bell [Member] | Class B Units [Member] | ||
| Business Acquisition [Line Items] | ||
| Number of exchange shares issuable | 565,000,000 | |
| Units exchange term | 5 years | |
| Prodigio Trading Platform [Member] | ||
| Business Acquisition [Line Items] | ||
| Converted market value | $ 7.2 | |
| Prodigio Trading Platform [Member] | Securities Agreement [Member] | ||
| Business Acquisition [Line Items] | ||
| Converted market value | $ 51.6 |