| 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. 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 March 31, 2024, are not necessarily indicative of the operating
results that may be expected for our year ending December 31, 2024, as will be included in the filing
of our Annual Report on Form 10-K for the year ending December 31, 2024. These unaudited condensed consolidated financial statements
should be read in conjunction with the December 31, 2023 consolidated financial statements and notes thereto included in our Annual Report
on Form 10-K for the year ended December 31, 2023. Principles
of Consolidation The
consolidated financial statements include the accounts of Investview, Inc., and our wholly owned subsidiaries: iGenius, LLC, SAFETek,
LLC, Investview Financial Group Holdings, LLC, Opencash Finance, Inc., Opencash Securities, LLC, Investview MTS, LLC, and MyLife Wellness
Company. 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. 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 6,834,803 3,778,085 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 March 31, 2024 and December 31, 2023, we had no highly liquid debt instruments. INVESTVIEW,
INC. NOTES
TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS AS
OF MARCH 31, 2024 (Unaudited) 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
March 31, 2024 December 31, 2023
Cash and cash equivalents $ 24,432,226 $ 20,912,276
Restricted cash, current 150,022 230,354
Total cash, cash equivalents, and restricted cash shown on the statement of cash flows $ 24,582,248 $ 21,142,630 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 and funds required to be held in an account as collateral for business charges
on our Company credit card. 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 $ 0 722,324 1,872,773 500,000 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 March 31, 2024 December 31, 2023
Furniture, fixtures, and equipment 10 $ 717 $ 717
Computer equipment 3 14,211 11,308
Data processing equipment 3 14,084,670 14,084,670
14,099,598 14,096,695
Accumulated depreciation (8,738,302 ) (7,559,872 )
Net book value $ 5,361,296 $ 6,536,823 Total
depreciation expense for the three months ended March 31, 2024 and 2023, was $ 1,178,430 971,526 all
of which was recorded in our general and administrative expenses on our statement of operation Long-Lived
Assets – Intangible Assets & License Agreement 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. INVESTVIEW,
INC. NOTES
TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS AS
OF MARCH 31, 2024 (Unaudited) We
hold cryptocurrency-denominated assets and include them in our consolidated balance sheet as other assets. The value of our cryptocurrencies
as of March, 31 2024 and December 31, 2023 were $ 232,834 585,632 2,642,599 2,070,819 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 three months
ended March 31, 2024 and March 31, 2023, 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). INVESTVIEW,
INC. NOTES
TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS AS
OF MARCH 31, 2024 (Unaudited) Our
financial instruments consist of cash, accounts receivable and accounts payable, and debt. We have determined that the book value of
our outstanding financial instruments as of March 31, 2024 and December 31, 2023, 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 March 31, 2024: SCHEDULE
OF ASSETS AND LIABILITIES MEASURED ON RECURRING BASIS
Level 1 Level 2 Level 3 Total
Total Assets $ - $ - $ - $ -
Derivative liability $ - $ - $ 5,658 $ 5,658
Total Liabilities $ - $ - $ 5,658 $ 5,658 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, 2023:
Level 1 Level 2 Level 3 Total
Total Assets $ - $ - $ - $ -
Derivative liability $ - $ - $ 5,732 $ 5,732
Total Liabilities $ - $ - $ 5,732 $ 5,732 Revenue
Recognition Subscription
Revenue Most
of our revenue is generated by membership and 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 March 31, 2024 and December 31, 2023, our deferred
revenues were $ 2,707,418 2,703,398 Mining
Revenue We
generate revenue from mining bitcoin. The Company has entered into a digital asset mining pool by executing a contract, as amended from
time to time, with the mining pool operator to provide computing power to the mining pool. The contract is terminable at any time by
either party without penalty and the Company’s enforceable right to compensation only begins when the Company provides computing
power to the mining pool operator. In exchange for providing computing power, we are entitled to a Full-Pay-Per-Share payout of Bitcoin
based on a contractual formula, which primarily calculates the hash rate provided by us to the mining pool as a percentage of total network
hash rate, and other inputs. We are entitled to consideration even if a block is not successfully placed by the mining pool operator. INVESTVIEW,
INC. NOTES
TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS AS
OF MARCH 31, 2024 (Unaudited) Providing
computing power to solve complex cryptographic algorithms in support of the Bitcoin blockchain (in a process known as “solving
a block”) is an output of the Company’s ordinary activities. The provision of providing such computing power is the only
performance obligation in the Company’s contract with the mining pool operator. The transaction consideration the Company receives
is net of digital asset transaction fees kept by the mining pool operator and is noncash, in the form of Bitcoin, which the Company measures
at fair value on the date Bitcoin is received. This value is not materially different than the fair value at the moment we meet the performance
obligation, which can be recalculated based on the contractual formula. The consideration is variable. The amount of consideration recognized
is constrained to the amount of consideration received, which is when it is probable a significant reversal will not occur. There is
no significant financing component or risk of a significant revenue reversal in these transactions due to the performance obligations
and settlement of the transactions being on a daily basis. Cryptocurrency
Revenue During 2023, we
generated revenue from the sale of cryptocurrency packages to our customers through an arrangement with a third-party supplier. The various
packages included different amounts of coin with differing rates of returns and terms. The coin is delivered by a third-party supplier.
The sale of cryptocurrency packages was discontinued during the year ended December 31, 2023. During 2023, we recognized
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 was to
arrange for the third-parties to provide coin and protection (if applicable) to our customers and payment was received from our
customers at the time of order placement. All customers were given two weeks to request a refund, therefore we would 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. During the quarter ended March 31, 2024, we generated no revenue from the sale of cryptocurrency packages. Mining
Equipment Repair Revenue Through
our wholly owned subsidiary, SAFETek, LLC, prior to June 30, 2023, we repaired broken mining equipment for sale to third-party
customers. Our mining equipment repair business was discontinued during the quarter ended June 30, 2023. Prior to June 30, 2023, 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. Revenue
generated for the three months ended March, 31 2024, was as follows: SCHEDULE
OF REVENUE GENERATED
Subscription Mining Revenue Total
Gross billings/receipts $ 13,851,294 $ 2,642,599 $ 16,493,893
Refunds, incentives, credits, and chargebacks (821,976 ) - (821,976 )
Amounts paid to providers
Net revenue $ 13,029,318 $ 2,642,599 $ 15,671,917 For
the three months ended March 31, 2024, foreign and domestic revenues were approximately $ 11.8 3.9 INVESTVIEW,
INC. NOTES
TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS AS
OF MARCH 31, 2024 (Unaudited) Revenue
generated for the three months ended March 31, 2023, was as follows:
Subscription Cryptocurrency Mining Miner Repair Total
Gross billings/receipts $ 12,152,522 $ 559,300 $ 2,070,819 $ 23,378 $ 14,806,019
Refunds, incentives, credits, and chargebacks (960,411 ) - - - (960,411 )
Amounts paid to providers - (279,000 ) - - (279,000 )
Net revenue $ 11,192,111 $ 280,300 $ 2,070,819 $ 23,378 $ 13,566,608 For
the three months ended March 31, 2023 foreign and domestic revenues were approximately $ 9.7 3.9 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 three months ended March 31, 2024
and 2023, totaled $ 11,795 252,434 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 and hosting and electricity fees that we pay to a third-party
vendor in order to generate mining revenue. Costs of sales and services for the three months ended March, 31 2024 and 2023, totaled $ 2,142,334 1,877,928 Inventory 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. Due to the discontinuance of our miner repair business during the quarter ended June 30, 2023, all inventory was sold as purchased.
During the three months ended March 31, 2023 we sold $ 50,000 30,000 20,000 0 0 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. 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 us to 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. 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. INVESTVIEW,
INC. NOTES
TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS AS
OF MARCH 31, 2024 (Unaudited) The
following table illustrates the computation of diluted earnings per share for the three months ended March 31, 2024 and 2023. SCHEDULE OF DILUTED EARNINGS PER SHARE
March 31, 2024 March 31, 2023
Net income $ 1,669,940 407,894
Less: preferred dividends (204,835 ) (204,835 )
Add: interest expense on convertible debt 225,129 225,129
Net income available to common shareholders (numerator) $ 1,690,234 428,188
Basic weighted average number of common shares outstanding 2,053,046,229 2,636,275,719
Dilutive impact of convertible notes 471,428,571 471,428,571
Dilutive impact of non-voting membership interest 565,000,000 565,000,000
Diluted weighted average number of common shares outstanding (denominator) 3,089,474,800 3,672,704,290
Diluted income per common share $ 0.00 0.00 The
following table presents potentially dilutive securities that were not included in the computation of diluted net income per share as
their inclusion would be anti-dilutive. SCHEDULE OF POTENTIALLY DILUTIVE SECURITIES
March 31, 2024 March 31, 2023
Options to purchase common stock 191,666,665 95,833,332
Warrants to purchase common stock 1,178,090 1,178,248 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 CONDENSED CONSOLIDATED FINANCIAL STATEMENTS AS
OF MARCH 31, 2024 (Unaudited) |
