Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Sep. 30, 2018 | Nov. 14, 2018 | |
Document and Entity Information: | ||
Entity Registrant Name | Investview, Inc. | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2018 | |
Trading Symbol | INVU | |
Amendment Flag | false | |
Entity Central Index Key | 862,651 | |
Current Fiscal Year End Date | --03-31 | |
Entity Common Stock, Shares Outstanding | 2,213,661,318 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Emerging Growth Company | false | |
Entity Small Business | true | |
Entity Current Reporting Status | Yes | |
Document Fiscal Year Focus | 2,019 | |
Document Fiscal Period Focus | Q2 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) | Sep. 30, 2018 | Mar. 31, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 829,809 | $ 1,490,686 |
Prepaid assets | 14,971 | 3,555 |
Receivables | 719,575 | 472,557 |
Short term advances | 10,000 | 10,000 |
Short term advances - related party | 500 | 36,510 |
Other current assets | 10,573 | 480,370 |
Total current assets | 1,585,428 | 2,493,678 |
Fixed assets, net | 15,840 | 18,860 |
Other assets: | ||
Intangible assets, net | 3,037,387 | 0 |
Long term license agreement, net | 2,058,214 | 2,133,620 |
Deposits | 4,500 | 4,500 |
Total other assets | 5,100,101 | 2,138,120 |
Total assets | 6,701,369 | 4,650,658 |
Current liabilities: | ||
Accounts payable and accrued liabilities | 5,062,579 | 5,352,073 |
Customer advance | 265,000 | 0 |
Deferred revenue | 1,244,891 | 863,740 |
Related party payables | 699,380 | 1,880 |
Debt | 727,392 | 195,245 |
Total current liabilities | 7,999,242 | 6,412,938 |
Total liabilities | 7,999,242 | 6,412,938 |
Commitments and contingencies | ||
STOCKHOLDERS' EQUITY (DEFICIT): | ||
Preferred stock, par value: $0.001; 10,000,000 shares authorized, none issued and outstanding as of September 30, 2018 and March 31, 2018 | 0 | 0 |
Common stock, par value $0.001; 10,000,000,000 shares authorized; 2,213,661,318 and 2,169,661,318 shares issued and outstanding as of September 30, 2018 and March 31, 2018, respectively | 2,213,661 | 2,169,661 |
Additional paid in capital | 17,112,945 | 16,137,945 |
Accumulated other comprehensive income | 1,258 | (2,483) |
Accumulated deficit | (20,611,269) | (20,085,947) |
Total stockholders' equity (deficit) | (1,283,405) | (1,780,824) |
Noncontrolling interest | (14,468) | 18,544 |
Total stockholders' equity (deficit) | (1,297,873) | (1,762,280) |
Total liabilities and stockholders' equity (deficit) | $ 6,701,369 | $ 4,650,658 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Sep. 30, 2018 | Sep. 30, 2017 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 10,000,000,000 | 10,000,000,000 |
Common stock, shares issued | 2,213,661,318 | 2,169,661,318 |
Common stock, shares outstanding | 2,213,661,318 | 2,169,661,318 |
CONSOLIDATED STATEMENT OF OPERA
CONSOLIDATED STATEMENT OF OPERATIONS - USD ($) | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Revenue: | ||||
Subscription revenue, net of refunds, incentives, credits, and chargebacks | $ 7,719,857 | $ 3,615,305 | $ 13,831,246 | $ 6,593,107 |
Cryptocurrency mining service revenue, net of amounts paid to supplier | 377,891 | 0 | 1,778,323 | 0 |
Total revenue, net | 8,097,748 | 3,615,305 | 15,609,569 | 6,593,107 |
Operating costs and expenses: | ||||
Cost of sales and service | 201,445 | 123,010 | 430,997 | 317,296 |
Commissions | 6,047,907 | 2,958,173 | 12,229,266 | 5,438,565 |
Selling and marketing | 309,442 | 119,218 | 525,406 | 268,596 |
Salary and related | 1,123,682 | 419,347 | 2,016,202 | 856,493 |
Professional fees | 512,515 | 425,197 | 1,070,596 | 825,026 |
General and administrative | 1,040,522 | 494,383 | 1,980,306 | 832,388 |
Total operating costs and expenses | 9,235,513 | 4,539,328 | 18,252,773 | 8,538,364 |
Net loss from operations | (1,137,765) | (924,023) | (2,643,204) | (1,945,257) |
Other income (expense): | ||||
Gain (loss) on debt extinguishment | 0 | 81,035 | (19,387) | 2,767,422 |
Loss on spin-off of operations | 0 | 0 | 0 | (1,118,609) |
Gain on bargain purchase | 2,005,282 | 0 | 2,005,282 | 0 |
Realized gain (loss) on cryptocurrency | (6,278) | 0 | 17,454 | 0 |
Unrealized gain (loss) on cryptocurrency | (4,244) | 0 | 95,926 | 0 |
Interest expense - related parties | (5,000) | 0 | (5,000) | (3,000) |
Interest expense | (4,147) | (81,136) | (4,147) | (91,903) |
Other income (expense) | 77 | 676 | (1,843) | (1,702) |
Total other income (expense) | 1,985,690 | (161,495) | 2,127,059 | (3,982,636) |
Income (loss) before income taxes | 847,925 | (1,085,518) | (516,145) | (5,927,893) |
Income tax expense | (31,146) | (6,879) | (42,189) | (13,340) |
Net Income (Loss) | 816,779 | (1,092,397) | (558,334) | (5,941,233) |
Less: net loss attributable to the noncontrolling interest | (16,788) | 0 | (33,012) | 0 |
Net income (loss) attributable to Investview stockholders | $ 833,567 | $ (1,092,397) | $ (525,322) | $ (5,941,233) |
Income (loss) per common share, basic and diluted | $ 0 | $ 0 | $ 0 | $ 0 |
Weighted average number of common shares outstanding, basic and diluted | 2,169,661,318 | 1,822,478,129 | 2,189,508,313 | 1,581,200,506 |
Other comprehensive income, net of tax: | ||||
Foreign currency translation adjustments | $ 123 | $ 0 | $ 3,741 | $ 0 |
Total other comprehensive income | 123 | 0 | 3,741 | 0 |
Comprehensive income (loss) | 816,902 | (1,092,397) | (554,593) | (5,941,233) |
Less: comprehensive income attributable to the noncontrolling interest | (123) | 0 | (3,741) | 0 |
Comprehensive income (loss) attributable to Investview shareholders | $ 816,779 | $ (1,092,397) | $ (558,334) | $ (5,941,233) |
CONSOLIDATED STATEMENT OF CASH
CONSOLIDATED STATEMENT OF CASH FLOWS - USD ($) | 6 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net loss | $ (558,334) | $ (5,941,233) |
Adjustments to reconcile net loss to net cash (used in) provided by operating activities: | ||
Depreciation | 3,020 | 1,107 |
Amortization of long-term license agreement | 75,406 | 0 |
Amortization of intangible assets | 112,613 | 0 |
Stock issued for services and license agreement | 3,333 | 47,591 |
Loss on spin-off of operations | 0 | 1,118,609 |
Gain on bargain purchase | (2,005,282) | 0 |
(Gain) loss on debt extinguishment | (19,387) | 2,767,422 |
Realized loss on cryptocurrency | (17,454) | 0 |
Unrealized loss on cryptocurrency | (95,926) | 0 |
Changes in operating assets and liabilities: | ||
Receivables | 114,327 | 325,936 |
Prepaid assets | (4,749) | 0 |
Short term advances from related parties | 36,010 | 0 |
Other current assets | 583,177 | 1,500 |
Accounts payable and accrued liabilities | (675,065) | (112,847) |
Customer advance | 265,000 | 0 |
Deferred revenue | 383,417 | 122,399 |
Accrued interest | 4,147 | 76,602 |
Accrued interest - related parties | 5,000 | 3,000 |
Net cash used in operating activities | (1,790,747) | (1,589,914) |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Cash received in reverse acquisition | 3,740 | 3,550 |
Net cash provided by (used in) investing activities | 3,740 | 3,550 |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Proceeds from related parties | 894,000 | 368,253 |
Repayments for related party payables | (201,500) | (392,500) |
Proceeds from debt | 670,000 | 1,675,000 |
Repayments for debt | (142,000) | (556,085) |
Payments for share repurchase | (91,000) | 0 |
Proceeds from the sale of stock | 0 | 492,000 |
Net cash provided by financing activities | 1,129,500 | 1,586,668 |
Effect of exchange rate translation on cash | (3,370) | 0 |
Net increase (decrease) in cash and cash equivalents | (660,877) | 304 |
Cash and cash equivalents-beginning of period | 1,490,686 | 1,616 |
Cash and cash equivalents-end of period | 829,809 | 1,920 |
Cash paid during the period for: | ||
Interest | 0 | 78,000 |
Income taxes | 42,189 | 13,340 |
Non cash investing and financing activities: | ||
Common stock issued for reverse acquisition | 1,100,000 | 662,048 |
Common stock issued in settlement of debt | 0 | 2,322,606 |
Common stock issued for prepaid services and long term license agreement | $ 6,667 | $ 2,215,909 |
1. Organization and Nature of B
1. Organization and Nature of Business | 6 Months Ended |
Sep. 30, 2018 | |
Disclosure Text Block [Abstract] | |
Organization and Nature of Business | Organization Investview, Inc. was incorporated on January 30, 1946, under the laws of the state of Utah as the Uintah Mountain Copper Mining Company. In January 2005 the Company changed domicile to Nevada, and changed its name to Voxpath Holding, Inc. In September of 2006 the Company merged The Retirement Solution Inc. through a Share Purchase Agreement into Voxpath Holdings, Inc. and then changed its name to TheRetirementSolution.Com, Inc. In October 2008 the Company changed its name to Global Investor Services, Inc., before changing its name to Investview, Inc., on March 27, 2012. On March 31, 2017, we entered into a Contribution Agreement with the members of Wealth Generators, LLC, a limited liability company (“Wealth Generators”), pursuant to which the Wealth Generators members agreed to contribute 100% of the outstanding securities of Wealth Generators in exchange for an aggregate of 1,358,670,942 shares of our common stock. The closing of the Contribution Agreement was effective April 1, 2017, and Wealth Generators became our wholly owned subsidiary and the former members of Wealth Generators became our stockholders and control the majority of our outstanding common stock. On June 6, 2017, we entered into an Acquisition Agreement with Market Trend Strategies, LLC, a company whose members are also former members of our management. Under the Acquisition Agreement, we spun-off our operations that existed prior to the merger with Wealth Generators and sold the intangible assets used in those pre-merger operations in exchange for Market Trend Strategies’ assumption of $419,139 in pre-merger liabilities. On February 28, 2018, we filed a name change for Wealth Generators, LLC to Kuvera, LLC (“Kuvera”) and on May 7, 2018 we established WealthGen Global, LLC as a Utah limited liability company and a wholly owned subsidiary of Investview, Inc. On July 20, 2018, Investview, Inc. entered into a Purchase Agreement with United Games Marketing LLC, a Utah limited liability company, to purchase its wholly owned subsidiaries United Games, LLC and United League, LLC for 50,000,000 Shares of Investview’s common stock (see Note 9). Nature of Business Through our wholly owned subsidiary, Kuvera, we provide research, education, and investment tools designed to assist the self-directed investor in successfully navigating the financial markets. These services include research, trade alerts, and live trading rooms that include instruction in equities, options, FOREX, ETFs, binary options, crowdfunding and cryptocurrency mining services and sector education. In addition to trading tools and research, we also offer full education and software applications to assist the individual in debt reduction, increased savings, budgeting, and proper tax management. Each product subscription includes a core set of trading tools/research along with the personal finance management suite to provide an individual with complete access to the information necessary to cultivate and manage his or her financial situation. Different packages are available through a monthly subscription that can be cancelled at any time at the discretion of the customer. A unique component of the product marketing plan is the distribution method whereby all subscriptions are sold via current participating customers who choose to distribute and sell the services by participating in the bonus plan. The bonus plan participation is purely optional but enables individuals to create an additional income stream to further support their personal financial goals and objectives. |
2. Summary of Significant Accou
2. Summary of Significant Accounting Policies | 6 Months Ended |
Sep. 30, 2018 | |
Disclosure Text Block [Abstract] | |
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 and six months ended September 30, 2018, are not necessarily indicative of the operating results that may be expected for the year ending March 31, 2019. These unaudited condensed consolidated financial statements should be read in conjunction with the March 31, 2018 consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended March 31, 2018. Principles of Consolidation The consolidated financial statements include the accounts of Investview, Inc., and our wholly owned subsidiaries, Kuvera, LLC, Investment Tools & Training, LLC, Razor Data Corp., S.A.F.E. Management, LLC, WealthGen Global, LLC, United Games, LLC, and United League, LLC. We have determined that one affiliated entity, Kuvera LATAM S.A.S., which we conduct business with, is a variable interest entity and we are the primary beneficiary of the entity’s activities. As a result, we have consolidated the accounts of this variable interest entity into the accompanying consolidated financial statements. Further, because the Company does not have any ownership interest in this variable interest entity, the Company has allocated the contributed capital in the variable interest entity as a component of noncontrolling interest. 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 unaudited condensed consolidated 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 LATAM S.A.S. into our consolidated financial statements. The operations of Kuvera LATAM S.A.S. are conducted in Colombia and its functional currency is the Colombian Peso. The financial statements of Kuvera LATAM S.A.S. are prepared using the Colombian Peso 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 LATAM S.A.S. into USD at the following balance sheet dates. September 30, 2018 March 31, 2018 Colombian Peso to USD 0.00034 0.00036 The following rates were used to translate the accounts of Kuvera LATAM S.A.S. into USD for the following operating periods. Six Months Ended September 30, 2018 2017 Colombian Peso to USD 0.00034 n/a Cryptocurrencies We hold cryptocurrency-denominated assets (“cryptocurrencies”) and include them in our consolidated balance sheet as other current assets. We record cryptocurrencies at fair market value and recognize the change in the fair value of our cryptocurrencies as an unrealized gain or loss in the consolidated statement of operations. As of September 30, 2018 and March 31, 2018 the fair value of our cryptocurrencies was $10,573 and $480,370, respectively. During the six months ended September 30, 2018 we recorded $17,454 and $95,926 as a total realized and unrealized gain (loss) on cryptocurrency. We recorded no gain or loss on cryptocurrencies during the six months ended September 30, 2017. During the three months ended September 30, 2018 we recorded $(6,278) and $(4,244) as a total realized and unrealized gain (loss) on cryptocurrency. We recorded no gain or loss on cryptocurrencies during the three months ended September 30, 2017. Long-Lived Assets – Intangible Assets & License Agreement We account for our intangible assets and long-term license agreement in accordance with 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. Further, ASC Subtopic 350-30 requires an intangible asset to be amortized over its useful life and for the useful life 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. In June of 2017 we issued 80,000,000 shares of common stock with a value of $2,256,000 for a 15-year license agreement. Annual amortization over the 15-year life is expected to be $150,400 per year. Amortization recognized for the six months ended September 30, 2018 and 2017 was $75,406 and $47,591, respectively, and the long-term license agreement was recorded at a net value of $2,058,214 and $2,133,620 as of September 30, 2018 and March 31, 2018, respectively. In June of 2018 we purchased United Games, LLC and United League, LLC and recorded the transaction as a business combination (see Note 9). Intangible assets acquired in the business combination were recorded at fair value on the date of acquisition and are being amortized on a straight-line method over their estimated useful lives. Estimated Useful Life (years) Value FireFan mobile application 4 $ 804,000 Back office software 10 1,074,000 Tradename/trademark - FireFan 5 472,000 Tradename/trademark - United Games 0.45 4,000 Customer contracts/relationships 5 796,000 3,150,000 Accumulated amortization as of September 30, 2018 (112,613 ) Net book value, September 30, 2108 $ 3,037,387 Amortization expense is expected to be as follows: Remainder of 2019 $ 282,478 Fiscal year ending March 31, 2020 562,000 Fiscal year ending March 31, 2021 562,000 Fiscal year ending March 31, 2022 562,000 Fiscal year ending March 31, 2023 422,126 Fiscal year ending March 31, 2020 and beyond 646,783 $ 3,037,387 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. The Company evaluates 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 six months ended September 30, 2018 and 2017 no impairment was recognized. Fair Value of Financial Instruments Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, based on our principal or, in the absence of a principal, most advantageous market for the specific asset or liability. U.S. generally accepted accounting principles provide for a three-level hierarchy of inputs to valuation techniques used to measure fair value, defined as follows: Level 1: Inputs that are quoted prices (unadjusted) for identical assets or liabilities in active markets that the entity can access. Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the asset or liability, including: ● quoted prices for similar assets or liabilities in active markets; ● quoted prices for identical or similar assets or liabilities in markets that are not active; ● inputs other than quoted prices that are observable for the asset or liability; and ● inputs that are derived principally from or corroborated by observable market data by correlation or other means. Level 3: Inputs that are unobservable and reflect management’s own assumptions about the inputs market participants would use in pricing the asset or liability based on the best information available in the circumstances (e.g., internally derived assumptions surrounding the timing and amount of expected cash flows). Our financial instruments consist of cash, accounts receivable, accounts payable, and debt. We have determined that the book value of our outstanding financial instruments as of September 30, 2018 and March 31, 2018, 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 September 30, 2018: Level 1 Level 2 Level 3 Total Cryptocurrencies $ 10,573 $ - $ - $ 10,573 Total Assets $ 10,573 $ - $ - $ 10,573 Total Liabilities $ - $ - $ - $ - Items recorded or measured at fair value on a recurring basis in the accompanying consolidated financial statements consisted of the following items as of March 31, 2018: Level 1 Level 2 Level 3 Total Cryptocurrencies $ 480,370 $ - $ - $ 480,370 Total Assets $ 480,370 $ - $ - $ 480,370 Total Liabilities $ - $ - $ - $ - Revenue Recognition Effective April 1, 2018 we adopted the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Subtopic 606-10, Revenue from Contracts with Customers (“ASC 606-10”). The adoption of ASC 606-10 had no impact on prior year or previously disclosed amounts. In accordance with ASC 606-10, 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. The majority of our revenue is generated by subscription sales and payment is received at the time of purchase. 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 subscription customers, during which a full refund can be requested if a customer does not like 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. We generate revenue from the sale of cryptocurrency mining services to our customers through an arrangement with a third-party supplier. Our performance obligation is to arrange for the third-party to provide mining services to our customers and payment is received at the time of purchase, therefore revenue is recognized upon receipt of payment. We recognize revenue in the amount of the fee to which we are entitled to as an agent, or the amount of consideration that we retain after paying the third-party the consideration received in exchange for the services the third-party is to provide. Revenue generated for the six months ended September 30, 2018 and 2017, is as follows: September 30, 2018 September 30, 2017 Subscription Revenue Cryptocurrency Mining Revenue Total Subscription Revenue Cryptocurrency Mining Revenue Total Gross billings $ 14,677,640 $ 5,649,601 $ 20,327,241 $ 7,017,677 $ - $ 7,0170,677 Refunds, incentives, credits, and chargebacks (846,394 ) - (846,394 ) (424,570 ) - (424,570 ) Amounts paid to supplier - (3,871,278 ) (3,871,278 ) - - - Net revenue $ 13,831,246 $ 1,778,323 $ 15,609,569 $ 6,593,107 $ - $ 6,593,107 Revenue generated for the three months ended September 30, 2018 and 2017, is as follows: September 30, 2018 September 30, 2017 Subscription Revenue Cryptocurrency Mining Revenue Total Subscription Revenue Cryptocurrency Mining Revenue Total Gross billings $ 8,166,854 $ 1,480,131 $ 9,646,985 $ 3,827,590 $ - $ 3,827,590 Refunds, incentives, credits, and chargebacks (446,997 ) - (446,997 ) (212,285 ) - (212,285 ) Amounts paid to supplier - (1,102,240 ) (1,102,240 ) - - - 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. Convertible debt, stock options, and warrants have been excluded as common stock equivalents in the diluted loss per share because their effect is anti-dilutive on the computation. Potentially dilutive securities excluded from the computation of basic and diluted net loss per share are as follows: September 30, 2018 September 30, 2017 Options to purchase common stock 35,000 35,000 Warrants to purchase common stock 6,052,497 6,534,810 Totals 6,087,497 6,569,810 |
3. Recent Accounting Pronouncem
3. Recent Accounting Pronouncements | 6 Months Ended |
Sep. 30, 2018 | |
Disclosure Text Block [Abstract] | |
Recent Accounting Pronouncements | There are no recently issued accounting pronouncements that the Company has not yet adopted that they believe are applicable or would have a material impact on the financial statements of the Company. |
4. Going Concern and Liquidity
4. Going Concern and Liquidity | 6 Months Ended |
Sep. 30, 2018 | |
Disclosure Text Block [Abstract] | |
Going Concern and Liquidity | Our financial statements are prepared using generally accepted accounting principles applicable to a going concern that contemplates the realization of assets and liquidation of liabilities in the normal course of business. We have incurred significant recurring losses, which have resulted in an accumulated deficit of $20,611,269 as of September 30, 2018, along with a net loss of $558,334 and net cash used in operations of $1,790,747 for the six months ended September 30, 2018. Additionally, as of September 30, 2018, we had cash of $829,809 and a working capital deficit of $6,413,814. These factors raise substantial doubt about our ability to continue as a going concern. Historically we have relied on increasing revenues and new debt financing to pay for operational expenses and debt as it came due. During the six months ended September 30, 2018, we raised $670,000 in cash proceeds from new debt arrangements and raised $894,000 in cash proceeds from related parties. Going forward we plan to reduce obligations with cash flow provided by operations and pursue additional debt and equity financing; however, we cannot assure that funds will be available on terms acceptable to us, or if available, will be sufficient to enable us to fully complete our development activities or sustain operations. Nevertheless, the shortage of working capital adversely affects our ability to develop or participate in activities that promote our business, because a substantial portion of cash flow goes to reduce debt rather than to advance operating activities. To address this, we have implemented a series of adjustments to our affiliate/distributor bonus plan. These adjustments are designed to bring the maximum payout percentage in line with company objectives. During prior periods, the bonus plan had exceeded maximum payouts and consistently paid out near the maximum percentage. We believe the adjustments initiated will reduce the payout over time with payout percentages closer to 60%. Accordingly, the accompanying financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America, which contemplate our continuation as a going concern and the realization of assets and satisfaction of liabilities in the normal course of business. The carrying amounts of assets and liabilities presented in the financial statements do not necessarily purport to represent realizable or settlement values. The financial statements do not include any adjustment that might result from the outcome of this uncertainty. |
5. Related Party Transactions
5. Related Party Transactions | 6 Months Ended |
Sep. 30, 2018 | |
Disclosure Text Block [Abstract] | |
Related Party Transactions | Our related-party payables consisted of the following: September 30, 2018 March 31, 2018 Short-term advances [1] $ 594,380 $ 1,880 Short-term Promissory Note entered into on 8/17/18, in default [2] 105,000 - $ 694,380 $ 1,880 _______________ [1] We periodically receive advances for operating funds from our current majority shareholders and other related parties, including entities that are owned, controlled, or influenced by our owners or management. These advances are due on demand, generally have no interest or fees associated with them, and are unsecured. During the six months ending September 30, 2018, we received $794,000 in cash proceeds from advances and repaid related parties $201,500. [2] A member of the senior management team advanced funds of $100,000 on August 17, 2018, under a short-term promissory note due to be repaid on August 31, 2018. The note has a fixed interest payment of $5,000 which was recorded as interest expense in the statement of operations. |
6. Debt
6. Debt | 6 Months Ended |
Sep. 30, 2018 | |
Disclosure Text Block [Abstract] | |
Debt | Our debt consisted of the following: September 30, 2018 March 31, 2018 Revenue share agreement entered into on 6/28/16 [1] $ 53,245 $ 195,245 Promissory note entered into on 9/19/18 [2] 104,000 - Secured merchant agreement for future receivables entered into on 9/28/18 [3] 570,147 - $ 727,392 $ 195,245 _______________ [1] During April 2016, we entered into a Royalty Agreement, which was replaced with a Revenue Share Agreement dated June 28, 2016, which was amended in October of 2016. Cash receipts were received of $100,000, $150,000, and $250,000 on April 19, May 11, and June 29, 2016, respectively. In accordance with the terms of the final amended agreement, we are required to make payments of $25,000 per month or a 3% royalty for the previous month’s sales, whichever is greater, beginning February 15, 2017, until the lender has been repaid $600,000. During the six months ended September 30, 2018, we repaid $142,000. [2] In September 2018 we entered into a promissory note for $100,000 with a maturity date of October 1, 2018. The promissory note has a fixed interest amount of $4,000 which was recorded as interest expense in the statement of operations. [3] During September 2018 we entered into a Secured Merchant Agreement for future receivables with an entity that provides quick access to working capital. On September 28, 2018, we received proceeds from this arrangement of $570,000. In accordance with the terms of the agreement, we are required to repay $839,400 by making ACH payments in the amount of 10% of our daily cash receipts. Accordingly, we recorded $269,400 as a debt discount at the inception of the agreement, which was the difference between the funds received and the amount that was to be repaid. We amortized $147 into interest expense during the six months ended September 30, 2018. |
7. Stockholders' Equity (Defici
7. Stockholders' Equity (Deficit) | 6 Months Ended |
Sep. 30, 2018 | |
Disclosure Text Block [Abstract] | |
Stockholders' Equity | Preferred Stock We are authorized to issue up to 10,000,000 shares of preferred stock with a par value of $0.001 and our Board of Directors has the authority to issue one or more classes of preferred stock with rights senior to those of common stock and to determine the rights, privileges and inference of that preferred stock, which has not yet been done. As of September 30 and March 31, 2018 we had no preferred stock issued or outstanding. Common Stock During the six months ended September 30, 2018, we had issued 50,000,000 shares of common stock for the acquisition of United Games, LLC and United League, LLC (see Note 9). We also issued 1,000,000 shares of common stock, valued at $10,000 based on the market date on the day of issuance, to an employee for compensation, which is subject to forfeiture if the employee is not in good standing 6 months after the date of issuance. Of the $10,000 value we recognized $3,333 as an expense during the six months ending September 30, 2018 and $6,667 was recorded as a prepaid asset. Also during the 6 months ended September 30, 2018 we repurchased 7,000,000 shares of common stock for $91,000. As of September 30 and March 31, 2018, the Company had 2,213,661,318 and 2,169,661,318 shares of common stock issued and outstanding, respectively. Employee Stock Options The nonqualified plan adopted in 2007 authorized 65,000 shares, of which 47,500 had been granted as of March 31, 2018. The qualified plan adopted in October of 2008 authorizes 125,000 shares and was approved by a majority of our shareholders on September 16, 2009. As of March 31, 2018, 42,500 shares had been granted under the 2008 plan. Effective April 1, 2018 we cancelled both the 2007 and 2008 plans, as well as any shares that were allocated under the plans and were not yet issued. The following table summarizes the changes in employee stock options outstanding and the related prices for the shares of our common stock issued to employees under two employee stock option plans: Weighted Weighted Average Average Remaining Aggregate Number of Exercise Contractual Intrinsic Shares Price Life (years) Value Options outstanding at March 31, 2017 35,000 $ 10.00 2.51 $ - Granted - $ - Exercised - $ - Canceled / expired - $ - Options outstanding at March 31, 2018 35,000 $ 10.00 1.51 $ - Granted - $ - Exercised - $ - Canceled / expired - $ - Options outstanding at September 30, 2018 35,000 $ 10.00 1.01 $ - Options exercisable at September 30, 2018 35,000 $ 10.00 1.01 $ - Stock-based compensation expense in connection with options granted to employees for the three and six months ended September 30, 2018 and 2017, was $0. Warrants The following table summarizes the warrants outstanding and the related prices for the shares of our common stock as of September 30, 2018: Warrants Outstanding Warrants Exercisable Weighted Average Weighted Weighted Remaining Average Average Exercise Number Contractual Exercise Number Exercise Price Outstanding Life (Years) Price Exercisable Price $1.50 6,052,497 0.75 $1.50 6,052,497 1.50$ Transactions involving our warrant issuance are summarized as follows: Weighted Number of Average Shares Exercise Price Warrants outstanding at March 31, 2017 6,534,810 $ 1.48 Granted / restated - $ - Canceled - $ - Expired (365,313 ) $ 1.18 Warrants outstanding at March 31, 2018 6,169,497 $ 1.50 Granted - $ - Canceled - $ - Expired (117,000 ) $ 1.35 Warrants outstanding at September 30, 2018 6,052,497 $ 1.50 |
8. Commitments and Contingencie
8. Commitments and Contingencies | 6 Months Ended |
Sep. 30, 2018 | |
Disclosure Text Block [Abstract] | |
Commitments and Contingencies | In the ordinary course of business, we may be or have been involved in legal proceedings from time to time. Below is a description of all legal proceedings we were involved in as of September 30, 2018. ● On November 1, 2017, we filed a lawsuit in the Fourth Judicial District Court for Utah County, State of Utah, Wealth Generators, LLC, v. Evan Cabral, Daniel Lopez, John Legarreta, Johnathan Lopez, Julian Kuschner, Nick Gomez, Luke Shulla, Nestor Velazquez, Christopher Terry, Isis De La Torre, Alex Morton, Ivan Briongos, Brandon Boyd, and International Markets Live Ltd. d/b/a iMarketslive, Civil No. 170401615, alleging corporate espionage and misappropriation of corporate information. The lawsuit alleges that International Markets Live Ltd., dba iMarketslive, conspired with a number of individuals affiliated with Wealth Generators to steal our confidential information, intellectual property, and trade secrets. We are seeking injunctive relief to protect our business and damages of not less than $300,000. ● In February 2018, we received a subpoena from the United States Commodity Futures Trading Commission (“CFTC”). We complied with the terms of the subpoena, negotiated a resolution of this matter with the CFTC staff, and a final order was issued on September 14, 2018. Under the order, we are not admitting or denying any of the allegations, will pay a fine of $150,000, and have agreed not to act as an unregistered Commodities Trading Advisor in the future. As of September 30, 2018 we have paid $15,000 to CFTC and the remaining unpaid balance has been included in Accounts Payable and Accrued Liabilities on our consolidated balance sheet. ● Jim Westphal filed a wage claim against Kuvera, LLC (at the time named Wealth Generators, LLC), in the United States District Court for the District of Utah, Central Division (Case No. 2:18-cv-00080) in the amount of $6,500 plus liquidated damages. Plaintiff is claiming unpaid overtime wages. Wealth Generators contends that Mr. Westphal was an independent contractor, hired on a limited basis to perform software services, and is accordingly not entitled to overtime payments under the Fair Labor Standards Act. Moreover, Plaintiff never provided the promised software pursuant to the parties’ agreement. We filed a counterclaim on July 12, 2018, seeking damages of approximately $20,000 and demanding a jury trial. |
9. Acquisition
9. Acquisition | 6 Months Ended |
Sep. 30, 2018 | |
Acquisition | |
Acquisition | On July 20, 2018, we entered into a Purchase Agreement with United Games Marketing LLC, a Utah limited liability company, to purchase its wholly owned subsidiaries United Games, LLC and United League, LLC for 50,000,000 shares of our common stock. United Games, LLC and United League, LLC The transaction was accounted for as a business combination using the acquisition method of accounting in accordance with the FASB (ASC Topic 805). The following table summarizes the purchase accounting for the fair value of the assets acquired and liabilities assumed at the date of the acquisition and the gain on bargain purchase which resulted from the fair value of the intangible assets acquired exceeding the fair value of our common stock given as consideration. Cash $ 3,740 Receivables 361,345 Intangible assets (see Note 2) 3,150,000 Total assets acquired 3,515,085 Accounts payable and accrued liabilities 409,803 Total liabilities assumed 409,803 Net assets acquired 3,105,282 Consideration 1,100,000 Gain on bargain purchase $ 2,005,282 United Games, LLC and United League, LLC recorded combined revenue of $397,661 and a combined net loss of $187,556 since the July 20, 2018 acquisition date, which were included in our consolidated statement of operations for the six months ended September 30, 2018. The table below represents the pro forma revenue and net income (loss) for the six months ended September 30, 2018 and 2017, assuming the acquisition had occurred on April 1, 2017, pursuant to ASC Subtopic 805-10-50. This pro forma information does not purport to represent what the actual results of our operations would have been had the acquisition occurred on this date nor does it purport to predict the results of operations for future periods: Three months ended September 30, Six months ended September 30, 2018 2017 2018 2017 Revenues $ 7,922,613 $ 5,082,325 $ 14,769,395 $ 10,086,101 Net income (loss) $ 858,711 $ (1,457,172 ) $ (868,974 ) $ (6,451,091 ) Loss per common share $ 0.00 $ (0.00 ) $ (0.00 ) $ (0.00 ) |
2. Summary of Significant Acc_2
2. Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Sep. 30, 2018 | |
Policy Text Block [Abstract] | |
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 and six months ended September 30, 2018, are not necessarily indicative of the operating results that may be expected for the year ending March 31, 2019. These unaudited condensed consolidated financial statements should be read in conjunction with the March 31, 2018 consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended March 31, 2018. |
Principles of Consolidation | The consolidated financial statements include the accounts of Investview, Inc., and our wholly owned subsidiaries, Kuvera, LLC, Investment Tools & Training, LLC, Razor Data Corp., S.A.F.E. Management, LLC, WealthGen Global, LLC, United Games, LLC, and United League, LLC. We have determined that one affiliated entity, Kuvera LATAM S.A.S., which we conduct business with, is a variable interest entity and we are the primary beneficiary of the entity’s activities. As a result, we have consolidated the accounts of this variable interest entity into the accompanying consolidated financial statements. Further, because the Company does not have any ownership interest in this variable interest entity, the Company has allocated the contributed capital in the variable interest entity as a component of noncontrolling interest. 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 unaudited condensed consolidated 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 LATAM S.A.S. into our consolidated financial statements. The operations of Kuvera LATAM S.A.S. are conducted in Colombia and its functional currency is the Colombian Peso. The financial statements of Kuvera LATAM S.A.S. are prepared using the Colombian Peso 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 LATAM S.A.S. into USD at the following balance sheet dates. September 30, 2018 March 31, 2018 Colombian Peso to USD 0.00034 0.00036 The following rates were used to translate the accounts of Kuvera LATAM S.A.S. into USD for the following operating periods. Six Months Ended September 30, 2018 2017 Colombian Peso to USD 0.00034 n/a |
Cryptocurrencies | We hold cryptocurrency-denominated assets (“cryptocurrencies”) and include them in our consolidated balance sheet as other current assets. We record cryptocurrencies at fair market value and recognize the change in the fair value of our cryptocurrencies as an unrealized gain or loss in the consolidated statement of operations. As of September 30, 2018 and March 31, 2018 the fair value of our cryptocurrencies was $10,573 and $480,370, respectively. During the six months ended September 30, 2018 we recorded $17,454 and $95,926 as a total realized and unrealized gain (loss) on cryptocurrency. We recorded no gain or loss on cryptocurrencies during the six months ended September 30, 2017. During the three months ended September 30, 2018 we recorded $(6,278) and $(4,244) as a total realized and unrealized gain (loss) on cryptocurrency. We recorded no gain or loss on cryptocurrencies during the three months ended September 30, 2017. |
Long-Lived Assets - License Agreement | We account for our intangible assets and long-term license agreement in accordance with 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. Further, ASC Subtopic 350-30 requires an intangible asset to be amortized over its useful life and for the useful life 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. In June of 2017 we issued 80,000,000 shares of common stock with a value of $2,256,000 for a 15-year license agreement. Annual amortization over the 15-year life is expected to be $150,400 per year. Amortization recognized for the six months ended September 30, 2018 and 2017 was $75,406 and $47,591, respectively, and the long-term license agreement was recorded at a net value of $2,058,214 and $2,133,620 as of September 30, 2018 and March 31, 2018, respectively. In June of 2018 we purchased United Games, LLC and United League, LLC and recorded the transaction as a business combination (see Note 9). Intangible assets acquired in the business combination were recorded at fair value on the date of acquisition and are being amortized on a straight-line method over their estimated useful lives. Estimated Useful Life (years) Value FireFan mobile application 4 $ 804,000 Back office software 10 1,074,000 Tradename/trademark - FireFan 5 472,000 Tradename/trademark - United Games 0.45 4,000 Customer contracts/relationships 5 796,000 3,150,000 Accumulated amortization as of September 30, 2018 (112,613 ) Net book value, September 30, 2108 $ 3,037,387 Amortization expense is expected to be as follows: Remainder of 2019 $ 282,478 Fiscal year ending March 31, 2020 562,000 Fiscal year ending March 31, 2021 562,000 Fiscal year ending March 31, 2022 562,000 Fiscal year ending March 31, 2023 422,126 Fiscal year ending March 31, 2020 and beyond 646,783 $ 3,037,387 |
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. The Company evaluates 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 six months ended September 30, 2018 and 2017 no impairment was recognized. |
Fair Value of Financial Instruments | Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, based on our principal or, in the absence of a principal, most advantageous market for the specific asset or liability. U.S. generally accepted accounting principles provide for a three-level hierarchy of inputs to valuation techniques used to measure fair value, defined as follows: Level 1: Inputs that are quoted prices (unadjusted) for identical assets or liabilities in active markets that the entity can access. Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the asset or liability, including: ● quoted prices for similar assets or liabilities in active markets; ● quoted prices for identical or similar assets or liabilities in markets that are not active; ● inputs other than quoted prices that are observable for the asset or liability; and ● inputs that are derived principally from or corroborated by observable market data by correlation or other means. Level 3: Inputs that are unobservable and reflect management’s own assumptions about the inputs market participants would use in pricing the asset or liability based on the best information available in the circumstances (e.g., internally derived assumptions surrounding the timing and amount of expected cash flows). Our financial instruments consist of cash, accounts receivable, accounts payable, and debt. We have determined that the book value of our outstanding financial instruments as of September 30, 2018 and March 31, 2018, 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 September 30, 2018: Level 1 Level 2 Level 3 Total Cryptocurrencies $ 10,573 $ - $ - $ 10,573 Total Assets $ 10,573 $ - $ - $ 10,573 Total Liabilities $ - $ - $ - $ - Items recorded or measured at fair value on a recurring basis in the accompanying consolidated financial statements consisted of the following items as of March 31, 2018: Level 1 Level 2 Level 3 Total Cryptocurrencies $ 480,370 $ - $ - $ 480,370 Total Assets $ 480,370 $ - $ - $ 480,370 Total Liabilities $ - $ - $ - $ - |
Revenue Recognition | Effective April 1, 2018 we adopted the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Subtopic 606-10, Revenue from Contracts with Customers (“ASC 606-10”). The adoption of ASC 606-10 had no impact on prior year or previously disclosed amounts. In accordance with ASC 606-10, 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. The majority of our revenue is generated by subscription sales and payment is received at the time of purchase. 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 subscription customers, during which a full refund can be requested if a customer does not like 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. We generate revenue from the sale of cryptocurrency mining services to our customers through an arrangement with a third-party supplier. Our performance obligation is to arrange for the third-party to provide mining services to our customers and payment is received at the time of purchase, therefore revenue is recognized upon receipt of payment. We recognize revenue in the amount of the fee to which we are entitled to as an agent, or the amount of consideration that we retain after paying the third-party the consideration received in exchange for the services the third-party is to provide. Revenue generated for the six months ended September 30, 2018 and 2017, is as follows: September 30, 2018 September 30, 2017 Subscription Revenue Cryptocurrency Mining Revenue Total Subscription Revenue Cryptocurrency Mining Revenue Total Gross billings $ 14,677,640 $ 5,649,601 $ 20,327,241 $ 7,017,677 $ - $ 7,0170,677 Refunds, incentives, credits, and chargebacks (846,394 ) - (846,394 ) (424,570 ) - (424,570 ) Amounts paid to supplier - (3,871,278 ) (3,871,278 ) - - - Net revenue $ 13,831,246 $ 1,778,323 $ 15,609,569 $ 6,593,107 $ - $ 6,593,107 Revenue generated for the three months ended September 30, 2018 and 2017, is as follows: September 30, 2018 September 30, 2017 Subscription Revenue Cryptocurrency Mining Revenue Total Subscription Revenue Cryptocurrency Mining Revenue Total Gross billings $ 8,166,854 $ 1,480,131 $ 9,646,985 $ 3,827,590 $ - $ 3,827,590 Refunds, incentives, credits, and chargebacks (446,997 ) - (446,997 ) (212,285 ) - (212,285 ) Amounts paid to supplier - (1,102,240 ) (1,102,240 ) - - - Net revenue $ 7,719,857 $ 377,891 $ 8,097,748 $ 3,615,305 $ - $ 3,615,305 |
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. Convertible debt, stock options, and warrants have been excluded as common stock equivalents in the diluted loss per share because their effect is anti-dilutive on the computation. Potentially dilutive securities excluded from the computation of basic and diluted net loss per share are as follows: September 30, 2018 September 30, 2017 Options to purchase common stock 35,000 35,000 Warrants to purchase common stock 6,052,497 6,534,810 Totals 6,087,497 6,569,810 |
2. Summary of Significant Acc_3
2. Summary of Significant Accounting Policies (Tables) | 6 Months Ended |
Sep. 30, 2018 | |
Summary Of Significant Accounting Policies | |
Schedule of Exchange Rates | September 30, 2018 March 31, 2018 Colombian Peso to USD 0.00034 0.00036 Six Months Ended September 30, 2018 2017 Colombian Peso to USD 0.00034 n/a |
Schedule of Long-Lived Assets | Estimated Useful Life (years) Value FireFan mobile application 4 $ 804,000 Back office software 10 1,074,000 Tradename/trademark - FireFan 5 472,000 Tradename/trademark - United Games 0.45 4,000 Customer contracts/relationships 5 796,000 3,150,000 Accumulated amortization as of September 30, 2018 (112,613 ) Net book value, September 30, 2108 $ 3,037,387 |
Schedule of Amortization Expense | Remainder of 2019 $ 282,478 Fiscal year ending March 31, 2020 562,000 Fiscal year ending March 31, 2021 562,000 Fiscal year ending March 31, 2022 562,000 Fiscal year ending March 31, 2023 422,126 Fiscal year ending March 31, 2020 and beyond 646,783 $ 3,037,387 |
Schedule Of Fair Value Assets And Liabilities Measured On Recurring Basis | Level 1 Level 2 Level 3 Total Cryptocurrencies $ 10,573 $ - $ - $ 10,573 Total Assets $ 10,573 $ - $ - $ 10,573 Total Liabilities $ - $ - $ - $ - Level 1 Level 2 Level 3 Total Cryptocurrencies $ 480,370 $ - $ - $ 480,370 Total Assets $ 480,370 $ - $ - $ 480,370 Total Liabilities $ - $ - $ - $ - |
Schedule of Revenue Generated | September 30, 2018 September 30, 2017 Subscription Revenue Cryptocurrency Mining Revenue Total Subscription Revenue Cryptocurrency Mining Revenue Total Gross billings $ 14,677,640 $ 5,649,601 $ 20,327,241 $ 7,017,677 $ - $ 7,0170,677 Refunds, incentives, credits, and chargebacks (846,394 ) - (846,394 ) (424,570 ) - (424,570 ) Amounts paid to supplier - (3,871,278 ) (3,871,278 ) - - - Net revenue $ 13,831,246 $ 1,778,323 $ 15,609,569 $ 6,593,107 $ - $ 6,593,107 September 30, 2018 September 30, 2017 Subscription Revenue Cryptocurrency Mining Revenue Total Subscription Revenue Cryptocurrency Mining Revenue Total Gross billings $ 8,166,854 $ 1,480,131 $ 9,646,985 $ 3,827,590 $ - $ 3,827,590 Refunds, incentives, credits, and chargebacks (446,997 ) - (446,997 ) (212,285 ) - (212,285 ) Amounts paid to supplier - (1,102,240 ) (1,102,240 ) - - - Net revenue $ 7,719,857 $ 377,891 $ 8,097,748 $ 3,615,305 $ - $ 3,615,305 |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | September 30, 2018 September 30, 2017 Options to purchase common stock 35,000 35,000 Warrants to purchase common stock 6,052,497 6,534,810 Totals 6,087,497 6,569,810 |
5. Related Party Transactions (
5. Related Party Transactions (Tables) | 6 Months Ended |
Sep. 30, 2018 | |
Related Party Transactions [Abstract] | |
Related Party Payables | September 30, 2018 March 31, 2018 Short-term advances [1] $ 594,380 $ 1,880 Short-term Promissory Note entered into on 8/17/18, in default [2] 105,000 - $ 694,380 $ 1,880 |
6. Debt (Tables)
6. Debt (Tables) | 6 Months Ended |
Sep. 30, 2018 | |
Debt Tables Abstract | |
Schedule of Debt | September 30, 2018 March 31, 2018 Revenue share agreement entered into on 6/28/16 [1] $ 53,245 $ 195,245 Promissory note entered into on 9/19/18 [2] 104,000 - Secured merchant agreement for future receivables entered into on 9/28/18 [3] 570,147 - $ 727,392 $ 195,245 |
7. Stockholders' Equity (Tables
7. Stockholders' Equity (Tables) | 6 Months Ended |
Sep. 30, 2018 | |
Table Text Block Supplement [Abstract] | |
Schedule of Changes in Options Outstanding | Weighted Weighted Average Average Remaining Aggregate Number of Exercise Contractual Intrinsic Shares Price Life (years) Value Options outstanding at March 31, 2017 35,000 $ 10.00 2.51 $ - Granted - $ - Exercised - $ - Canceled / expired - $ - Options outstanding at March 31, 2018 35,000 $ 10.00 1.51 $ - Granted - $ - Exercised - $ - Canceled / expired - $ - Options outstanding at September 30, 2018 35,000 $ 10.00 1.01 $ - Options exercisable at September 30, 2018 35,000 $ 10.00 1.01 $ - |
Warrants Outstanding | Warrants Outstanding Warrants Exercisable Weighted Average Weighted Weighted Remaining Average Average Exercise Number Contractual Exercise Number Exercise Price Outstanding Life (Years) Price Exercisable Price $1.50 6,052,497 0.75 $1.50 6,052,497 1.50$ |
Warrant Rollforward | Weighted Number of Average Shares Exercise Price Warrants outstanding at March 31, 2017 6,534,810 $ 1.48 Granted / restated - $ - Canceled - $ - Expired (365,313 ) $ 1.18 Warrants outstanding at March 31, 2018 6,169,497 $ 1.50 Granted - $ - Canceled - $ - Expired (117,000 ) $ 1.35 Warrants outstanding at September 30, 2018 6,052,497 $ 1.50 |
9. Acquisition (Tables)
9. Acquisition (Tables) | 6 Months Ended |
Sep. 30, 2018 | |
Acquisition Tables Abstract | |
Schedule of Acquisition | Cash $ 3,740 Receivables 361,345 Intangible assets (see Note 2) 3,150,000 Total assets acquired 3,515,085 Accounts payable and accrued liabilities 409,803 Total liabilities assumed 409,803 Net assets acquired 3,105,282 Consideration 1,100,000 Gain on bargain purchase $ 2,005,282 Three months ended September 30, Six months ended September 30, 2018 2017 2018 2017 Revenues $ 7,922,613 $ 5,082,325 $ 14,769,395 $ 10,086,101 Net income (loss) $ 858,711 $ (1,457,172 ) $ (868,974 ) $ (6,451,091 ) Loss per common share $ 0.00 $ (0.00 ) $ (0.00 ) $ (0.00 ) |
1. Organization and Nature of_2
1. Organization and Nature of Business (Details Narrative) | 6 Months Ended |
Sep. 30, 2018 | |
Text Block [Abstract] | |
Entity Incorporation, Date of Incorporation | Jan. 30, 1946 |
Entity Incorporation, State Country Name | Nevada |
2. Summary of Significant Acc_4
2. Summary of Significant Accounting Policies (Details) - $ / $ | 6 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Mar. 31, 2018 | |
Text Block [Abstract] | |||
Exchange Rate at Balance Sheet Dates | 0.00034 | 0.00036 | |
Exchange Rate for Operating Periods | 0.00034 | 0.00036 |
2. Summary of Significant Acc_5
2. Summary of Significant Accounting Policies (Details 1) | 6 Months Ended |
Sep. 30, 2018USD ($) | |
Long-lived intangible assets | $ 3,150,000 |
Accumulated amortization | (112,613) |
Net book value | $ 3,037,387 |
FireFan mobile application | |
Estimated Useful Life | 4 years |
Long-lived intangible assets | $ 804,000 |
Back office software | |
Estimated Useful Life | 10 years |
Long-lived intangible assets | $ 1,074,000 |
Tradename/trademark - FireFan | |
Estimated Useful Life | 5 years |
Long-lived intangible assets | $ 472,000 |
Tradename/trademark - United Games | |
Estimated Useful Life | 5 months 12 days |
Long-lived intangible assets | $ 4,000 |
Customer contracts/relationships | |
Estimated Useful Life | 5 years |
Long-lived intangible assets | $ 796,000 |
2. Summary of Significant Acc_6
2. Summary of Significant Accounting Policies (Details 2) | Sep. 30, 2018USD ($) |
Summary Of Significant Accounting Policies Details 2Abstract | |
Remainder of 2019 | $ 282,478 |
Fiscal year ending March 31, 2020 | 562,000 |
Fiscal year ending March 31, 2021 | 562,000 |
Fiscal year ending March 31, 2022 | 562,000 |
Fiscal year ending March 31, 2023 | 422,126 |
Fiscal year ending March 31, 2020 and beyond | 646,783 |
Total | $ 3,037,387 |
2. Summary of Significant Acc_7
2. Summary of Significant Accounting Policies (Details 3) - USD ($) | Sep. 30, 2018 | Mar. 31, 2018 |
Cryptocurrencies | $ 10,573 | $ 480,370 |
Total Assets | 10,573 | 480,370 |
Total Liabilities | 0 | 0 |
Level 1 | ||
Cryptocurrencies | 10,573 | 480,370 |
Total Assets | 10,573 | 480,370 |
Total Liabilities | 0 | 0 |
Level 2 | ||
Cryptocurrencies | 0 | 0 |
Total Assets | 0 | 0 |
Total Liabilities | 0 | 0 |
Level 3 | ||
Cryptocurrencies | 0 | 0 |
Total Assets | 0 | 0 |
Total Liabilities | $ 0 | $ 0 |
2. Summary of Significant Acc_8
2. Summary of Significant Accounting Policies (Details 4) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Gross Billings | $ 9,646,985 | $ 3,827,590 | $ 20,327,241 | $ 70,170,677 |
Refunds, Incentives, Credits, and Chargebacks | (446,997) | (212,285) | (846,394) | (424,570) |
Amounts Paid to Supplier | (1,102,240) | 0 | (3,871,278) | 0 |
Net Revenue | 8,097,748 | 3,615,305 | 15,609,569 | 6,593,107 |
Subscription Revenue | ||||
Gross Billings | 8,166,854 | 3,827,590 | 14,677,640 | 7,017,677 |
Refunds, Incentives, Credits, and Chargebacks | (446,997) | (212,285) | (846,394) | (424,570) |
Amounts Paid to Supplier | 0 | 0 | 0 | 0 |
Net Revenue | 7,719,857 | 3,615,305 | 13,831,246 | 6,593,107 |
Cryptocurrency Mining Revenue | ||||
Gross Billings | 1,480,131 | 0 | 5,649,601 | 0 |
Refunds, Incentives, Credits, and Chargebacks | 0 | 0 | 0 | 0 |
Amounts Paid to Supplier | (1,102,240) | 0 | (3,871,278) | 0 |
Net Revenue | $ 377,891 | $ 0 | $ 1,778,323 | $ 0 |
2. Summary of Significant Acc_9
2. Summary of Significant Accounting Policies (Details 5) - shares | 6 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 6,087,497 | 6,569,810 |
Options to purchase common stock | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 35,000 | 35,000 |
Warrants to purchase common stock | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 6,052,497 | 6,534,810 |
2. Summary of Significant Ac_10
2. Summary of Significant Accounting Policies (Details Narrative) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Text Block [Abstract] | ||||
Total Realized Loss on Cryptocurrency | $ (6,278) | $ 0 | $ 17,454 | $ 0 |
Unrealized Gain (Loss) on Cryptocurrency | $ (4,244) | $ 0 | 95,926 | 0 |
Amortization | $ 112,613 | $ 0 |
4. Going Concern and Liquidity
4. Going Concern and Liquidity (Details Narrative) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Mar. 31, 2018 | |
Text Block [Abstract] | |||||
Cash | $ 829,809 | $ 829,809 | |||
Accumulated Deficit | 20,611,269 | 20,611,269 | $ 20,085,947 | ||
Net Loss | 816,779 | $ (1,092,397) | (558,334) | $ (5,941,233) | |
Net Cash Used in Operating Activities | (1,790,747) | (1,589,914) | |||
Working Capital Deficit | $ (6,413,814) | (6,413,814) | |||
Proceeds From Related Parties | 894,000 | 368,253 | |||
Proceeds From Debt | 670,000 | 1,675,000 | |||
Proceeds From the Sale of Stock | $ 0 | $ 492,000 |
5. Related Party Transactions_2
5. Related Party Transactions (Details) - USD ($) | Sep. 30, 2018 | Mar. 31, 2018 |
Related Party Transactions Details Abstract | ||
Short-term advances | $ 594,380 | $ 1,880 |
Short-term Promissory Note entered into on 8/17/18, in default | 105,000 | 0 |
Related-party payables | $ 699,380 | $ 1,880 |
6. Debt (Details)
6. Debt (Details) - USD ($) | Sep. 30, 2018 | Mar. 31, 2018 |
Debt Details Abstract | ||
Revenue share agreement entered into on 6/28/16 [1] | $ 53,245 | $ 195,245 |
Promissory note entered into on 9/19/18 [2] | 104,000 | 0 |
Secured merchant agreement for future receivables entered into on 9/28/18 [3] | 570,147 | 0 |
Debt | $ 727,392 | $ 195,245 |
7. Stockholders' Equity (Detail
7. Stockholders' Equity (Details) - USD ($) | 6 Months Ended | 12 Months Ended |
Sep. 30, 2018 | Mar. 31, 2018 | |
Text Block [Abstract] | ||
Number of options outstanding, beginning | 35,000 | 35,000 |
Number of options granted | 0 | 0 |
Number of options exercised | 0 | 0 |
Number of options cancelled/expired | 0 | 0 |
Number of options outstanding, ending | 35,000 | 35,000 |
Number of options exercisable | 35,000 | |
Weighted average exercise price outstanding, beginning | $ 10 | $ 10 |
Weighted average exercise price granted | 0 | 0 |
Weighted average exercise price exercised | 0 | 0 |
Weighted average exercise price cancelled/expired | 0 | 0 |
Weighted average exercise price outstanding, ending | 10 | $ 10 |
Weighted average exercise price exercisable | $ 10 | |
Weighted average remaining contractual life, beginning | 1 year 4 days | 2 years 6 months 4 days |
Weighted average remaining contractual life, ending | 1 year 4 days | 1 year 6 months 4 days |
Weighted average remaining contractual life, exercisable | 1 year 4 days | |
Aggregate intrinsic value outstanding, beginning | $ 0 | $ 0 |
Aggregate intrinsic value outstanding, ending | 0 | $ 0 |
Aggregate intrinsic value outstanding, exercisable | $ 0 |
7. Stockholders' Equity (Deta_2
7. Stockholders' Equity (Details 1) - Warrant 1 | 6 Months Ended |
Sep. 30, 2018$ / sharesshares | |
Exercise Price | $ 1.50 |
Number Outstanding | shares | 6,502,497 |
Weighted Average Remaining Contractual Life | 9 months |
Weighted Average Exercise Price, Exercisable | $ 1.50 |
Number Exercisable | shares | 6,502,497 |
Weighted Average Exercise Price | $ 1.50 |
7. Stockholders' Equity (Deta_3
7. Stockholders' Equity (Details 2) - $ / shares | 6 Months Ended | 12 Months Ended |
Sep. 30, 2018 | Mar. 31, 2018 | |
Text Block [Abstract] | ||
Number of warrants outstanding, beginning | 6,169,497 | 6,534,810 |
Number of warrants granted/restated | 0 | 0 |
Number of warrants canceled | 0 | 0 |
Number of warrants expired | (117,000) | (365,313) |
Number of warrants outstanding, ending | 6,052,497 | 6,169,497 |
Weighted average exercise price outstanding, beginning | $ 1.50 | $ 1.48 |
Weighted average exercise price granted | 0 | 0 |
Weighted average exercise price canceled | 0 | 0 |
Weighted average exercise price expired | 1.35 | (1.18) |
Weighted average exercise price outstanding, ending | $ 1.50 | $ 1.50 |
7. Stockholders' Equity (Deta_4
7. Stockholders' Equity (Details Narrative) - $ / shares | Sep. 30, 2018 | Sep. 30, 2017 |
Text Block [Abstract] | ||
Preferred stock, par value | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 10,000,000,000 | 10,000,000,000 |
Common stock, shares issued | 2,213,661,318 | 2,169,661,318 |
Common stock, shares outstanding | 2,213,661,318 | 2,169,661,318 |
9. Acquisition (Details)
9. Acquisition (Details) | 6 Months Ended |
Sep. 30, 2018USD ($) | |
Acquisition Details Abstract | |
Cash | $ 3,740 |
Receivables | 361,345 |
Intangible assets (see Note 2) | 3,150,000 |
Total assets acquired | 3,515,085 |
Accounts payable and accrued liabilities | 409,803 |
Total liabilities assumed | 409,803 |
Net assets acquired | 3,105,282 |
Consideration | 1,100,000 |
Gain on bargain purchase | $ 2,005,282 |
9. Acquisition (Details 1)
9. Acquisition (Details 1) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Acquisition Details 1Abstract | ||||
Revenues | $ 7,922,613 | $ 5,082,325 | $ 14,769,395 | $ 10,086,101 |
Net income (loss) | $ 858,711 | $ (1,457,172) | $ (868,974) | $ (6,451,091) |
Loss per common share | $ 0 | $ 0 | $ 0 | $ 0 |