| SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE
2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis
of Presentation 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 three months ended June 30, 2021, are not necessarily indicative of the operating
results that may be expected for the year ending March 31, 2022. These unaudited condensed consolidated financial statements should be
read in conjunction with the March 31, 2021 consolidated financial statements and notes thereto included in our Annual Report on Form
10-K for the year ended March 31, 2021. INVESTVIEW,
INC. NOTES
TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS AS
OF JUNE 30, 2021 (Unaudited) Principles
of Consolidation The
consolidated financial statements include the accounts of Investview, Inc., and our wholly owned subsidiaries: iGenius, LLC, Kuvera France
S.A.S., Apex Tek, LLC, SAFETek, LLC, S.A.F.E. Management, LLC, United Games, LLC, United League, LLC, Investment Tools & Training,
LLC, iGenius Global 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.
are conducted in France and its functional currency is the Euro. The
financial statements of Kuvera France S.A.S. are prepared using their functional currency and have been translated into U.S. dollars
(“USD”). Assets and liabilities are translated into USD at the applicable exchange rates at period-end. Stockholders’
equity is translated using historical exchange rates. Revenue and expenses are translated at the average exchange rates for the period.
Any translation adjustments are included as foreign currency translation adjustments in accumulated other comprehensive income in our
stockholders’ equity (deficit). The
following rates were used to translate the accounts of Kuvera France S.A.S. into USD at the following balance sheet dates. SCHEDULE OF EXCHANGE RATES
June
30, March
31,
Euro to USD 1.18560 1.17260 The
following rates were used to translate the accounts of Kuvera France S.A.S. into USD for the following operating periods.
Three
Months Ended June 30,
2021 2020
Euro to USD 1.20488 1.10160 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. SCHEDULE OF RECONCILIATION OF CASH, CASH EQUIVALENTS, AND RESTRICTED CASH
June
30, March
31, 2021
Cash and cash equivalents $ 13,622,302 $ 5,389,654
Restricted cash, current 819,338 498,020
Restricted cash, long
term 1,211,954 774,153
Total cash, cash equivalents,
and restricted cash shown on the statement of cash flows $ 15,653,594 $ 6,661,827 INVESTVIEW,
INC. NOTES
TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS AS
OF JUNE 30, 2021 (Unaudited) 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. 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: SCHEDULE OF FIXED ASSETS
Estimated
Useful Life June
30, March
31, 2021
Furniture, fixtures, and equipment 10 $ 52,678 $ 12,792
Computer equipment 3 10,386 22,528
Leasehold improvements Remaining Lease Term 19,172 -
Data processing equipment 3 8,310,739 8,310,739
8,392,975 8,346,059
Accumulated depreciation (3,164,651 ) (2,485,269 )
Net book value $ 5,228,324 $ 5,860,790 Total
depreciation expense for the three months ended June 30, 2021 and 2020, was $ 694,044 377,582 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 June 30, 2021 and March 31, 2021 were $ 6,939,775 ($ 5,826,252
current and $ 1,113,523
restricted long term) and $ 4,774,478
($ 4,679,256
current and $ 95,222
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 ($ 8,371,562
and $ 1,342,546
for the three months ended June 30, 2021 and
2020, 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 three months ended June 30, 2021 and 2020 we
recorded realized gains (losses) on our cryptocurrency transactions of $( 1,282,970 )
and $ 91,486 ,
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,
therefore we had no 0 43,169 INVESTVIEW,
INC. NOTES
TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS AS
OF JUNE 30, 2021 (Unaudited) 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 three months ended June 30, 2021 and 2020 no 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 June 30, 2021 and March 31, 2021, approximates the fair value due to their short-term nature
or interest rates that approximate prevailing market rates. Items
recorded or measured at fair value on a recurring basis in the accompanying consolidated financial statements consisted of the following
items as of June 30, 2021: SCHEDULE OF FAIR VALUE ASSETS AND LIABILITIES MEASURED ON RECURRING BASIS
Level 1 Level 2 Level 3 Total
Total Assets $ - $ - $ - $ -
Derivative liability $ - $ - $ 187,783 $ 187,783
Total Liabilities $ - $ - $ 187,783 $ 187,783 INVESTVIEW,
INC. NOTES
TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS AS
OF JUNE 30, 2021 (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 March 31, 2021:
Level
1 Level
2 Level
3 Total
Total Assets $ - $ - $ - $ -
Derivative
liability $ - $ - $ 307,067 $ 307,067
Total Liabilities $ - $ - $ 307,067 $ 307,067 Revenue
Recognition Subscription
Revenue The
majority 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 10-day 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 product. 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 June 30, 2021 and March 31, 2021 and 2020 our deferred
revenues were $ 2,235,980 1,561,188 Mining
Revenue Through
our wholly owned subsidiary, SAFETek, LLC, we leased equipment under a sales-type lease through June of 2020. 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 mining, we are issued fees from processors and/or block rewards that are newly created cryptocurrency units granted
to us. Our mining activities constitute our ongoing major and central 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 third-party suppliers. The various
packages include different amounts of coin with differing rates of returns and terms and, in some cases, include a product protection
option that allows the purchaser to protect their initial purchase price. The protection allows the purchaser to obtain 50% of their
purchase price at five years or 100% of their purchase price at ten years. Both the coin and the protection option are delivered by third-party
suppliers. 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 June 30, 2021 and March 31, 2021 our customer advances related to cryptocurrency revenue were $ 430,097 2,067,313 Fee
Revenue We
generate 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. INVESTVIEW,
INC. NOTES
TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS AS
OF JUNE 30, 2021 (Unaudited) Revenue
generated for the three months ended June 30, 2021 is as follows: SCHEDULE OF REVENUE GENERATED
Subscription
Cryptocurrency
Revenue Mining
Revenue Fee
Revenue Total
Gross billings/receipts $ 11,532,061 $ 15,875,577 $ 8,371,562 $ - $ 35,779,200
Refunds, incentives, credits, and chargebacks (682,364 ) - - - (682,364 )
Amounts paid to supplier - (9,470,271 ) - - (9,470,271 )
Net revenue $ 10,849,697 $ 6,405,306 $ 8,371,562 $ - $ 25,626,565 For
the three months ended June 30, 2021 foreign and domestic revenues were approximately $ 11.8
million and $ 13.8
million, respectively. Revenue
generated for the three months ended June 30, 2020 is as follows:
Subscription
Cryptocurrency
Revenue Mining
Revenue Fee
Revenue Total
Gross billings/receipts $ 4,559,960 $ - $ 1,342,546 $ 4,013 $ 5,906,519
Refunds, incentives, credits, and chargebacks (316,703 ) - - - (316,703 )
Amounts paid to supplier - - - - -
Net revenue $ 4,243,257 $ - $ 1,342,546 $ 4,013 $ 5,589,816 For
the three months ended June 30, 2020 foreign and domestic revenues were approximately $ 4.0 1.6 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 loss per share has been calculated based upon the weighted average number of common
shares outstanding. Diluted earnings (loss) per share reflect 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. Potentially
dilutive securities excluded from the computation of diluted net loss per share are as follows: SCHEDULE OF ANTIDILUTIVE SECURITIES EXCLUDED FROM COMPUTATION OF EARNINGS PER SHARE
June
30, June
30,
Options to purchase common stock - -
Warrants to purchase common stock - -
Notes convertible
into common stock - 180,609,479
Totals - 180,609,479 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. INVESTVIEW,
INC. NOTES
TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS AS
OF JUNE 30, 2021 (Unaudited) 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 |
