| 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), , 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). 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
Euro to USD 1.1371 INVESTVIEW,
INC. NOTES
TO CONSOLIDATED FINANCIAL STATEMENTS DECEMBER
31, 2022 AND 2021 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:
Year ended
December 31, 2022 Nine Months ended December 31, 2021
Euro to USD 1.1118 1.1757 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 18,202,860 19,336,350 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, 2022 and 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, 2022 December 31, 2021
Cash and cash equivalents $ 20,467,256 $ 30,995,283
Restricted cash, current 781,537 819,338
Restricted cash, long term 240,105 802,285
Total cash, cash equivalents, and restricted cash shown on the statement of cash flows $ 21,488,898 $ 32,616,906 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 $ 719,342 775,000 1,348,060 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. INVESTVIEW,
INC. NOTES
TO CONSOLIDATED FINANCIAL STATEMENTS DECEMBER
31, 2022 AND 2021 As
of December 31, 2022 and 2021 fixed assets were made up of the following: SCHEDULE
OF FIXED ASSETS
Estimated
Useful
Life December 31, December 31,
(years) 2022 2021
Furniture, fixtures, and equipment 10 $ 76,716 $ 82,942
Computer equipment 3 12,869 15,241
Leasehold improvements Remaining Lease Term 40,528 40,528
Data processing equipment 3 13,200,939 10,638,619
Construction in progress N/A - 391,583
13,331,052 11,168,913
Accumulated depreciation (4,822,778 ) (4,486,036 )
Net book value $ 8,508,274 $ 6,682,877 Total
depreciation expense for the years ended December 31, 2022 and 2021, was $ 6,227,907 2,271,224 826,718 1,093,556 266,838 2,899 15,826 12,927 Long-Lived
Assets – Cryptocurrencies & Intangible Assets We
account for our cryptocurrencies and intangible assets 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 December 31, 2022 and 2021 were $ 2,474,096 2,360,957 113,139 2,141,093 2,018,324 122,769 11,796,215 23,056,457 1,575,164 1,291,082 689,822 0 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. INVESTVIEW,
INC. NOTES
TO CONSOLIDATED FINANCIAL STATEMENTS DECEMBER
31, 2022 AND 2021 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 year ended December 31, 2022 we impaired computer equipment with a cost basis of $ 3,263 11,372 9,431,923 3,419,825 6,026,733 7,240,000 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 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, and accounts payable. We have determined that the book value of our outstanding
financial instruments as of December 31, 2022 and 2021, 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, 2022: SCHEDULE
OF ASSETS AND LIABILITIES MEASURED ON RECURRING BASIS
Level 1 Level 2 Level 3 Total
Total Assets $ - $ - $ - $ -
Derivative liability $ - $ - $ 24,426 $ 24,426
Total Liabilities $ - $ - $ 24,426 $ 24,426 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 $ - $ - $ 69,371 $ 69,371
Total Liabilities $ - $ - $ 69,371 $ 69,371 INVESTVIEW,
INC. NOTES
TO CONSOLIDATED FINANCIAL STATEMENTS DECEMBER
31, 2022 AND 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 December 31, 2022 and 2021 our deferred revenues were $ 2,074,574 3,288,443 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 prior to January 2022, included
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. During the fourth calendar quarter of 2021 we temporarily suspended any further offering of the
protection program in connection with the sale of ndau after the third-party provider was unable to comply with our standard vendor compliance
protocols, citing certain offshore confidentiality entitlements. That suspension has remained in place as we have been unable to further
validate the continued integrity of the protection program 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 December 31, 2022 and 2021 our customer advances related to cryptocurrency revenue were $ 96,609 75,702 Mining
Equipment Repair Revenue Through
our wholly owned subsidiary, SAFETek, LLC, we repair broken mining equipment for sale to third-party customers. We recognize miner equipment
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. INVESTVIEW,
INC. NOTES
TO CONSOLIDATED FINANCIAL STATEMENTS DECEMBER
31, 2022 AND 2021 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. The sale of digital wallets to our customers was discontinued during the year ended December 31, 2022. 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 year ended December 31, 2022, was as follows: SCHEDULE
OF REVENUE GENERATED
Subscription Cryptocurrency Revenue Mining Revenue Mining Equipment Repair Revenue Digital Wallet Revenue Total
Gross billings/receipts $ 51,454,922 $ 3,189,074 $ 11,796,215 $ 173,980 $ 7,156 $ 66,621,347
Refunds, incentives, credits, and chargebacks (3,194,725 ) - - (1,924 ) - (3,196,649 )
Amounts paid to supplier - (1,574,506 ) - - (1,288 ) (1,575,794 )
Net revenue $ 48,260,197 $ 1,614,568 $ 11,796,215 $ 172,056 $ 5,868 $ 61,848,904 Foreign
revenues for the year ended December 31, 2022 was approximately $ 42.3 19.5 Revenue
generated for the nine months ended December 31, 2021, was as follows:
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 30.9 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 year ended December 31, 2022 and
the nine months ended December 31, 2021, totaled $ 58,617 76,662 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 and electricity 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 year ended December 31, 2022 and the nine months ended December
31, 2021, totaled $ 8,249,790 6,107,358 INVESTVIEW,
INC. NOTES
TO CONSOLIDATED FINANCIAL STATEMENTS DECEMBER
31, 2022 AND 2021 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. During the year ended
December 31, 2022, we reclassified $ 621,093 249,480 676,268 no 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. 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, 2022 basic and diluted income per share were the same, as all securities had an antidilutive effect, therefore 1,079,569,011 1,178,320 360,416,665 471,428,571 246,545,455 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 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. |
