SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Accounting 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. 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. INVESTVIEW, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 2021 AND MARCH 31, 2021 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. 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). Subsequent to June 2021, 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 the accounts of Kuvera France S.A.S. and our Euro bank account into USD at the following balance sheet dates. SCHEDULE OF EXCHANGE RATES December 31, 2021 March 31, 2021 Euro to USD 1.1371 1.17260 The following rates were used to translate the accounts of Kuvera France S.A.S. and the activity from our Euro bank account into USD for the following operating periods: Nine Months ended December 31, 2021 Year ended March 31, 2021 Euro to USD 1.1757 1.16719 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 19,336,350 5,140,796 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 December 31, 2021 and March 31, 2021, we had no cash equivalents. 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 December 31, 2021 March 31, 2021 Cash and cash equivalents $ 30,995,283 $ 5,389,654 Restricted cash, current 819,338 498,020 Restricted cash, long term 802,285 774,153 Total cash, cash equivalents, and restricted cash shown on the statement of cash flows $ 32,616,906 $ 6,661,827 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. INVESTVIEW, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 2021 AND MARCH 31, 2021 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 0 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. As of December 31, 2021 and March 31, 2021 fixed assets were made up of the following: SCHEDULE OF FIXED ASSETS Estimated Useful Life (years) December 31, 2021 March 31, 2021 Furniture, fixtures, and equipment 10 $ 82,942 $ 12,792 Computer equipment 3 15,241 22,528 Leasehold improvements Remaining Lease Term 40,528 - Data processing equipment 3 10,638,619 8,310,739 Construction in progress N/A 391,583 - 11,168,913 8,346,059 Accumulated depreciation (4,486,036 ) (2,485,269 ) Net book value $ 6,682,877 $ 5,860,790 Total depreciation expense for the nine months ended December 31, 2021 and the year ended March 31, 2021, was $ 2,271,224 2,256,643 2,899 15,826 12,927 Long-Lived Assets – Cryptocurrencies, 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. INVESTVIEW, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 2021 AND MARCH 31, 2021 We hold cryptocurrency-denominated assets and include them in our consolidated balance sheet as other assets. The value of our cryptocurrencies as of December 31, 2021 and March 31, 2021 were $ 2,141,093 2,018,324 122,769 4,774,478 4,679,256 95,222 23,056,457 16,201,008 1,291,082 954,667 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. Amortization expense for the year ended March 31, 2021 was $ 158,444 On March 22, 2021, we entered into Securities Purchase Agreement to acquire the operating assets and intellectual property rights of MPower Trading Systems LLC, a company controlled and partially owned by David B. Rothrock and James R. Bell, two of our board members (see NOTE 12). 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 Impairment of Long-Lived Assets We have adopted ASC Subtopic 360-10, Property, Plant and Equipment. ASC 360-10 requires that long-lived assets and certain identifiable intangibles held and used by us 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 December 31, 2021 we impaired computer equipment with a cost basis of $ 14,661 392,500 266,928 140,233 During the year ended March 31, 2021 we impaired computer equipment with a cost basis of $ 1,609 84,940 991,000 476,466 601,083 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). INVESTVIEW, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 2021 AND MARCH 31, 2021 Our financial instruments consist of cash, accounts receivable, and accounts payable. We have determined that the book value of our outstanding financial instruments as of March 31, 2020 and March 31, 2019, approximates the fair value due to their short-term nature. 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: SCHEDULE OF FAIR VALUE ASSETS AND LIABILITIES MEASURED ON RECURRING BASIS Level 1 Level 2 Level 3 Total Total Assets $ - $ - $ - $ - Derivative liability $ - $ - $ 69,371 $ 69,371 Total Liabilities $ - $ - $ 69,371 $ 69,371 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 Sale and Leaseback Through our wholly owned subsidiary, APEXTek, LLC, we sold high powered data processing equipment (“APEX”) to our customers and they leased the equipment back to SAFETek, LLC, another of our wholly owned subsidiaries, on terms sufficient for the customers to recover their investment and an agreed upon return on their investment. Included in the now discontinued Apex sale and leaseback program was a total protection plus (“TPP”) program administered and managed by a third-party provider, an affiliate of a global insurance brokerage firm. According to marketing and legal documents provided by the third-party provider, the TPP program would function as a supplemental financial guaranty by providing the Apex program customers with protection for the purchase price of such equipment, which could be redeemed by the customer by exercising an option for a cash payout to be paid by the third-party provider after a certain period of time, either 5 or 10 years. We accounted for these transactions under ASC 842-40 where the leaseback has been deemed a sales-type lease due to the lease term generally covering the entire economic life of the equipment and our likelihood to purchase the asset at the end of the lease term. In accordance with ASC 842-40 we recorded the data processing equipment as a fixed asset on our balance sheet and we accounted for the amounts received for the equipment as a financial liability, in other liabilities on our balance sheet. Further, we recognized interest on the financial liability over the term of the lease to ensure the financial liability equates to the total amounts to be paid over the life of the lease. On June 30, 2020, we temporarily discontinued the APEX program to assess the delays, audit the transaction and determine our ability to meet the lease commitments. The assessment took place in July and August and indicated we would not be able to meet the APEX lease obligations and would be in default to the lease holders. In September 2020, our board of directors voted to approve a buyback program wherein all APEX purchasers were offered a 48-month promissory note to provide for an agreed-upon return of their purchase price in exchange for cancellation of the lease and our purchase of all rights and obligations under the lease . As a result of the buyback program, we were able to enter into notes with third parties totaling $ 19,089,500 (see NOTE 6) and notes with related parties of $ 237,720 (see NOTE 5) in exchange for $ 474,155 worth of customer advances on the APEX leases and $ 22,889,331 of the net APEX lease liability (see table below). The exchange resulted in a gain on settlement of debt of $ 117,805 with related parties, recorded as contributed capital (see NOTE 9) and a gain on settlement of debt of $ 3,858,462 with third parties, recorded on our income statement for the year ended March 31, 2021. INVESTVIEW, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 2021 AND MARCH 31, 2021 During the year ended March 31, 2021 we had the following activity related to our sale and leaseback transactions: SUMMARY OF ACTIVITY RELATED TO SALE AND LEASEBACK TRANSACTIONS Total Financial Liability Contra-Liability Net Financial Liability Current [1] Long Term Balance as of March 31, 2020 $ 53,828,000 $ (38,535,336 ) $ 15,292,664 $ 11,407,200 $ 3,885,464 Proceeds from sales of APEX 5,001,623 - 5,001,623 Interest recorded on financial liability 8,348,378 (8,348,378 ) - Payments made for leased equipment (2,145,900 ) - (2,145,900 ) Interest expense - 4,740,944 4,740,944 Lease buyback and cancellation (65,032,101 ) 42,142,770 (22,889,331 ) Balance as of March 31, 2021 $ - $ - $ - $ - $ - [1] Represented lease payments that were to be made in the subsequent 12 months. 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 December 31, 2021 and March 31, 2021 our deferred revenues were $ 3,288,443 and $ 1,561,188 , respectively. 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 December 31, 2021 and March 31, 2021 our customer advances related to cryptocurrency revenue were $ 75,702 2,067,313 INVESTVIEW, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 2021 AND MARCH 31, 2021 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. Revenue generated for the nine months ended December 31, 2021, was as follows: SCHEDULE OF REVENUE GENERATED Subscription Cryptocurrency Revenue Mining Revenue Mining Equipment Repair Revenue Total Gross billings/receipts $ 43,658,422 $ 20,199,388 $ 23,056,457 $ 7,460 $ 86,921,727 Refunds, incentives, credits, and chargebacks (2,739,969 ) - - - (2,739,969 ) Amounts paid to supplier - (11,950,078 ) - - (11,950,078 ) Net revenue $ 40,918,453 $ 8,249,310 $ 23,056,457 $ 7,460 $ 72,231,680 Foreign revenues for the nine months ended December 31, 2021 were approximately $ 41.3 million while domestic revenue for the nine months ended December 31, 2021 was approximately $ 30.9 million. Revenue generated for the year ended March 31, 2021, was as follows: Subscription Cryptocurrency Revenue Mining Revenue Fee Revenue Total Gross billings/receipts $ 22,612,850 $ 1,877,186 $ 16,201,008 $ 12,707 $ 40,703,751 Refunds, incentives, credits, and chargebacks (1,319,266 ) - - - (1,319,266 ) Amounts paid to supplier - (1,112,324 ) - - (1,112,324 ) Net revenue $ 21,293,584 $ 764,862 $ 16,201,008 $ 12,707 $ 38,272,161 Foreign revenues for the year ended March 31, 2021 were approximately $ 20.3 18.0 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 9 months ended December 31, 2021 and the year ended March 31, 2021, totaled $ 46,662 891,198 Cost of Sales and Service Included in our costs of sales and services is amounts paid to our trading and market experts that provide financial education content and tools to our subscription customers and hosting fees that we pay to vendors to set up our mining equipment at third-party sites in order to generate mining revenue. Costs of sales and services for the 9 months ended December 31, 2021 and the year ended March 31, 2021, totaled $ 6,107,358 7,591,019 Income Taxes We have adopted ASC Subtopic 740-10, 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 using enacted tax rates in effect for the year in which the differences are expected to reverse. Temporary differences between taxable income reported for financial reporting purposes and income tax purposes consist primarily of derivative liability and stock compensation accounting versus basis differences. INVESTVIEW, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 2021 AND MARCH 31, 2021 Net Income (Loss) per Share We follow ASC Subtopic 260-10, Earnings per Share, 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 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. As of December 31, 2021 basic and diluted income per share were the same, as all securities had an antidilutive effect, therefore 851,048,640 463,210 604,069,975 246,545,455 As of March 31, 2021 basic and diluted income per share were the same, as all securities had an antidilutive effect, therefore 549,705,748 766,585 548,939,163 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 INVESTVIEW, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 2021 AND MARCH 31, 2021 |