NOTE 1 – 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. and in October 2008 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 (see Note
5).
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”).
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.
NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES
Basis of Accounting
The
Company’s policy is to prepare its financial
statements
on
the
accrual
basis
of
accounting in accordance with accounting principles
generally
accepted
in
the United States of America.
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., and SAFE
Management, 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 entities
activities. As a result, we have consolidated the accounts of this
variable interest entity into the accompanying consolidated
financial statements. All intercompany transactions and balances
have been eliminated in consolidation.
Use of Estimates
The
preparation of these financial statements in conformity with
generally accepted accounting principles requires management to
make estimates and assumptions that affect the reported amounts of
assets and liabilities and disclosure of contingent assets and
liabilities at the date of the financial statements and the
reported amounts of revenue and expenses during the reporting
period. Actual results could differ from those
estimates.
Foreign Exchange
We have
consolidated the accounts of Kuvera 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.
|
|
|
Colombian
Peso to USD
|
0.00036
|
n/a
|
The following rates were used to translate the accounts of
Kuvera LATAM S.A.S.
into USD for the
following operating periods.
|
|
|
|
|
Colombian
Peso to USD
|
0.00034
|
n/a
|
Concentration of Credit Risk
Financial
instruments that potentially expose the Company to concentration of
credit risk include cash, accounts receivable, and advances. The
Company places its 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. As of March 31, 2018 and
2017 cash balances that exceeded FDIC limits were $1,095,329 and
$0, respectively, and the Company has not experienced significant
losses relating to these concentrations in the past.
Cash and Cash Equivalents
For purposes of reporting cash flows, the Company considers all
highly liquid debt instruments purchased with a maturity of three
months or less to be cash equivalents. As of March 31, 2018 and
2017 the Company had no cash equivalents.
Receivables
Receivable
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. The Company had no allowance for doubtful accounts as of
March 31, 2018 and 2017.
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 March 31, 2018 and March 31, 2017 the fair value
of our cryptocurrencies was $480,370 and $0, respectively. During
the year ended March 31, 2018 we recorded $(10,939) and $(135,729)
as realized and unrealized gain (loss) on cryptocurrency,
respectively. We recorded no realized or unrealized gain (loss) on
cryptocurrencies during the year ended March 31, 2017.
Fixed Assets
Fixed assets are stated at cost and depreciated using the
straight-line method over their estimated useful lives as
follows:
Furniture, fixtures, and equipment
|
|
10 years
|
Computer equipment
|
|
3 years
|
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 are presented net of accumulated depreciation of
$7,173 and $4,534, as of March 31, 2018 and 2017, respectively.
Total depreciation expense for the years ended March 31, 2018 and
2017 was $2,639 and $2,270, respectively.
Long Term License Agreement
We
account for our long-term license agreement in accordance with
Financial Accounting Standards Board (“FASB”)
Accounting Standards Codification (“ASC”), Subtopic
350-30, General Intangibles Other Than Goodwill (“ASC
350-30”). ASC 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 350-30 requires
an intangible asset to be amortized over its useful life, which we
have determined to be 15 years. Annual amortization is expected to
be $150,400 related to our long-term license
agreement.
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.
Fair Value of Financial Instruments
Fair
value is defined as the price that would be received to sell an
asset or paid to transfer a liability in an orderly transaction
between market participants at the measurement date, based on our
principal or, in the absence of a principal, most advantageous
market for the specific asset or liability.
U.S.
generally accepted accounting principles provide for a three-level
hierarchy of inputs to valuation techniques used to measure fair
value, defined as follows:
Level
1:
Inputs that are
quoted prices (unadjusted) for identical assets or liabilities in
active markets that the entity can access.
Level
2:
Inputs other than
quoted prices included within Level 1 that are observable for the
asset or liability, either directly or indirectly, for
substantially the full term of the asset or liability,
including:
●
quoted prices for
similar assets or liabilities in active markets;
●
quoted prices for
identical or similar assets or liabilities in markets that are not
active;
●
inputs other than
quoted prices that are observable for the asset or liability;
and
●
inputs that are
derived principally from or corroborated by observable market data
by correlation or other means.
Level
3:
Inputs that are
unobservable and reflect management’s own assumptions about
the inputs market participants would use in pricing the asset or
liability based on the best information available in the
circumstances (e.g., internally derived assumptions surrounding the
timing and amount of expected cash flows).
Our
financial instruments consist of cash, accounts receivable, and
accounts payable. We have determined that the book value of our
outstanding financial instruments as of March 31, 2018 and March
31, 2017, 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 March 31, 2018:
|
|
|
|
|
Cryptocurrencies
|
$
480,370
|
$
-
|
$
-
|
$
480,370
|
Total
Assets
|
$
480,370
|
$
-
|
$
-
|
$
480,370
|
|
|
|
|
|
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, 2017:
|
|
|
|
|
Total
Assets
|
$
-
|
$
-
|
$
-
|
$
-
|
|
|
|
|
|
Total
Liabilities
|
$
-
|
$
-
|
$
-
|
$
-
|
Revenue Recognition
We
recognize revenue in accordance with FASB ASC Subtopic 605-10,
Revenue Recognition, which requires that four basic criteria must
be met before revenue can be recognized: (1) persuasive
evidence of an arrangement exists; (2) delivery has occurred
or services have been rendered; (3) the selling price is fixed
and determinable; and (4) collectability is reasonably
assured.
The
majority of our revenue is generated by subscription sales and
payment is received at the time of purchase. We recognize revenue
for subscription sales 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 collectability cannot be
reasonably assured until that time has passed. Revenues are
presented net of sales incentives, credits, known and estimated
refunds, and known and estimated credit card
chargebacks.
We
generate revenue from the sale of cryptocurrency mining services to
our customers through our arrangement with a third-party supplier.
We report net revenue retained at the time of purchase which
represents our fees earned as an agent.
Revenue
generated for the years ended March 31, 2018 and 2017, is as
follows:
|
|
|
|
|
Cryptocurrency
Mining
Revenue
|
|
|
Cryptocurrency
Mining
Revenue
|
|
Gross
billings
|
$
14,758,614
|
$
8,885,798
|
$
23,644,412
|
$
14,578,164
|
$
-
|
$
14,578,164
|
Refunds, incentives, credits, and
chargebacks
|
(859,035
)
|
-
|
(859,035
)
|
(1,705,217
)
|
-
|
(1,705,217
)
|
Amounts paid to
supplier
|
-
|
(4,867,945
)
|
(4,867,945
)
|
-
|
-
|
-
|
Net revenue
|
$
13,899,579
|
$
4,017,853
|
$
17,917,432
|
$
12,872,947
|
$
-
|
$
12,872,947
|
Advertising, Selling, and Marketing Costs
The
Company expenses 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 years ended March 31, 2018 and 2017 totaled
$454,225 and $500,032, respectively.
Income Taxes
The
Company has adopted ASC Subtopic 740-10, Income Taxes, which
requires the recognition of deferred tax liabilities and assets for
the expected future tax consequences of events that have been
included in the financial statement or tax returns. Under this
method, deferred tax liabilities and assets are determined based on
the difference between financial statements and tax basis of assets
and liabilities using enacted tax rates in effect for the year in
which the differences are expected to reverse. Temporary
differences between taxable income reported for financial reporting
purposes and income tax purposes consist primarily of derivative
liability and stock compensation accounting versus basis
differences.
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. 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:
|
|
|
Convertible notes
payable
|
-
|
17,045,455
|
Options to purchase
common stock
|
35,000
|
35,000
|
Warrants to
purchase common stock
|
6,169,497
|
6,534,810
|
Total
|
6,204,497
|
23,615,265
|
NOTE 3 – RECENT ACCOUNTING PRONOUNCEMENTS
In May
2014, the FASB issued Accounting Standards Update
(“ASU”) 2014-09, Revenue from Contracts with Customers
(Topic 606). ASU 2014-09 creates a new topic in the ASC Topic 606
and establishes a new control-based revenue recognition model,
changes the basis for deciding when revenue is recognized over time
or at a point in time, provides new and more detailed guidance on
specific topics, and expands and improves disclosures about
revenue. In addition, ASU 2014-09 adds a new Subtopic to the
Codification, ASC 340-40, Other Assets and Deferred Costs:
Contracts with Customers, to provide guidance on costs related to
obtaining a contract with a customer and costs incurred in
fulfilling a contract with a customer that are not in the scope of
another ASC Topic. The guidance in ASU 2014-09 is effective for
public entities for annual reporting periods beginning after
December 15, 2016, including interim periods therein. Early
application is not permitted. Management is in the process of
assessing the impact of ASU 2014-09 on the Company’s
financial statements.
NOTE 4 – 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 $20,067,403 as of March 31, 2018, along with a net loss
of $14,913,016 and net cash used in operations of $1,045,665 for
the year ended March 31, 2018. Additionally, as of March 31, 2018,
we had a working capital deficit of $3,919,260. 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 year ended March 31, 2018, we raised $498,380 in cash
proceeds from related parties, $1,675,000 in cash proceeds from new
lending arrangements, and $3,121,776 from the sale of common stock.
Additionally, during the year ended March 31, 2018, we exchanged
$2,322,606 worth of debt into shares of common stock. 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 the year ended March 31, 2018 the bonus plan
exceeded maximum payout on three occasions and consistently paid
out near the maximum percentage. We believe the adjustments
initiated will reduce the payout slowly over a three-month period
with payout percentages closer 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.
NOTE 5 – REVERSE ACQUISITION
Effective
April 1, 2017, we entered into a Contribution Agreement with 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. Following the closing, Wealth Generators became
our wholly owned subsidiary and the Wealth Generators members
became our stockholders and control the majority of our outstanding
common stock.
The
transaction was accounted for as a reverse acquisition using the
acquisition method of accounting in accordance with FASB ASC Topic
805. Wealth Generators is the acquirer solely for financial
accounting purposes. The following table summarizes the purchase
accounting for the fair value of the assets acquired and
liabilities assumed at the date of the reverse
acquisition.
Cash
|
$
3,550
|
Receivables
|
150,000
|
Total assets
acquired
|
153,550
|
|
|
Accounts payable
and accrued liabilities
|
456,599
|
Due to former
management
|
127,199
|
Debt
|
26,314
|
Total liabilities
assumed [1]
|
610,112
|
|
|
Net liabilities
assumed
|
456,562
|
|
|
Consideration
[2]
|
662,047
|
|
|
Goodwill
|
$
1,118,609
|
[1]
In conjunction with
the reverse acquisition, we entered into an assignment and
assumption agreement wherein we issued 24,914,348 shares of our
common stock to Alpha Pro Asset Management Group, LLC (“Alpha
Pro”), an entity affiliated with the prior members of
management, in exchange for Alpha Pro’s assumption of
$482,588 in liabilities. Accordingly, the shares issued for debt
were accounted for the moment before the reverse acquisition, and
the $482,588 in liabilities have been excluded from the total
liabilities assumed shown here.
[2]
The fair value of
the consideration effectively transferred was measured based on the
fair value of 150,465,339 shares that were outstanding immediately
before the transaction. Using the closing market price of $0.0044
per share on March 31, 2017, consideration was valued at
$662,047
The
table below represents the pro forma financial statements for the
year ended March 31, 2017, assuming the reverse acquisition had
occurred on April 1, 2016, pursuant to ASC Subtopic 805-10-50.
The historical financial information
has been derived from the audited financial statements of Wealth
Generators as filed on June 30, 2017 in the Company’s Form
8K-A and the audited financial statements of INVU. The financial
information has been adjusted to give pro forma effect to events
that are directly attributable to the reverse merger, are factually
supportable and, in the case of the pro forma statements of
operations, have a recurring impact. The pro forma adjustments are
based upon available information and assumptions that the Company
believes are reasonable.
This
pro forma information does not purport to represent what the actual
results of our operations would have been had the reverse
acquisition occurred on April 1, 2016.
Pro Forma Consolidated Balance Sheet as of March 31,
2017
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
Cash and cash
equivalents
|
$
1,616
|
$
3,550
|
$
-
|
|
$
5,166
|
Receivables
|
444,610
|
150,000
|
(162,430
)
|
[1]
|
432,180
|
Short term
advances
|
10,000
|
-
|
-
|
|
10,000
|
Total current
assets
|
456,226
|
153,550
|
(162,430
)
|
|
447,346
|
|
|
|
|
|
|
Fixed assets,
net
|
10,235
|
-
|
-
|
|
10,235
|
|
|
|
|
|
|
Other
assets:
|
|
|
|
|
|
Deposits
|
6,000
|
-
|
-
|
|
6,000
|
Goodwill
|
-
|
-
|
1,118,609
|
[3]
|
-
|
|
|
|
(1,118,609
)
|
[4]
|
|
Total other
assets
|
6,000
|
-
|
-
|
|
6,000
|
|
|
|
|
|
|
Total
assets
|
$
472,461
|
$
153,550
|
$
(162,430
)
|
|
$
463,581
|
|
|
|
|
|
|
LIABILITIES
AND STOCKHOLDERS' DEFICIT
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
Accounts payable
and accrued liabilities
|
$
1,370,972
|
$
417,025
|
$
(162,430
)
|
[1]
|
$
1,385,010
|
|
|
|
(86,500
)
|
[2]
|
|
|
|
|
(154,057
)
|
[4]
|
|
Deferred
revenue
|
433,298
|
5,807
|
(5,807
)
|
[4]
|
433,298
|
Related party
payable
|
805,895
|
132,199
|
(5,000
)
|
[2]
|
805,895
|
|
|
|
(127,199
)
|
[4]
|
|
Settlement
payable
|
-
|
344,392
|
(344,392
)
|
[2]
|
-
|
Debt
|
2,093,745
|
73,011
|
(46,696
)
|
[2]
|
2,102,476
|
|
|
|
(17,583
)
|
[4]
|
|
Current liabilities
of discontinued operations
|
-
|
120,266
|
(120,266
)
|
[4]
|
-
|
Derivative
liability, short term portion
|
-
|
37,157
|
(37,157
)
|
[2]
|
-
|
Total current
liabilities
|
4,703,909
|
1,129,857
|
(1,107,088
)
|
|
4,726,679
|
|
|
|
|
|
|
Long term
liabilities
|
-
|
-
|
-
|
|
-
|
|
|
|
|
|
|
Total
liabilities
|
4,703,909
|
1,129,857
|
(1,107,088
)
|
|
4,726,679
|
|
|
|
|
|
|
Stockholders’
deficit:
|
|
|
|
|
|
Preferred
stock
|
-
|
-
|
-
|
|
-
|
Common
stock
|
-
|
125,889
|
24,576
|
[2]
|
1,509,136
|
|
|
|
1,358,671
|
[3]
|
|
Additional paid in
capital
|
-
|
97,774,514
|
83,558
|
[2]
|
(1,250,112
)
|
|
|
|
(99,108,184
)
|
[3]
|
|
Treasury
stock
|
-
|
(8,589
)
|
-
|
|
(8,589
)
|
Members’
deficit
|
(4,231,449
)
|
-
|
4,231,449
|
[5]
|
-
|
Accumulated
deficit
|
-
|
(98,868,122
)
|
411,612
|
[2]
|
(4,513,534
)
|
|
|
|
98,868,122
|
[3]
|
|
|
|
|
(693,697
)
|
[4]
|
|
|
|
|
(4,231,449
)
|
[5]
|
|
Total
stockholders’ deficit
|
(4,231,449
)
|
(976,307
)
|
944,657
|
|
4,263,099
|
|
|
|
|
|
|
Total liabilities
and stockholders’ deficit
|
$
472,461
|
$
153,550
|
$
(162,430
)
|
|
$
463,580
|
Pro Forma Consolidated Income Statement for the year ended March
31, 2017
|
|
|
|
|
|
Revenue,
net
|
$
12,872,947
|
$
131,465
|
$
(131,465
)
|
[4]
|
$
12,872,947
|
|
|
|
|
|
|
Operating costs and
expenses:
|
|
|
|
|
|
Cost of
sales
|
862,849
|
3,257
|
(3,257
)
|
[4]
|
862,849
|
Commissions
|
9,412,655
|
-
|
-
|
|
9,412,655
|
Selling and
marketing
|
500,032
|
-
|
-
|
|
500,032
|
Salary and
related
|
1,918,199
|
-
|
-
|
|
1,918,199
|
Professional
fees
|
917,308
|
-
|
-
|
|
917,308
|
General and
administrative
|
1,199,564
|
980,579
|
(779,611
)
|
[4]
|
1,400,532
|
Total operating
costs and expenses
|
14,810,607
|
983,836
|
(782,869
)
|
|
15,011,575
|
|
|
|
|
|
|
Net loss from
operations
|
(1,937,660
)
|
(852,371
)
|
651,404
|
|
(2,138,627
)
|
|
|
|
|
|
|
Other income
(expense):
|
|
|
|
|
|
Interest expense,
related parties
|
(274,057
)
|
-
|
-
|
|
(274,057
)
|
Interest
expense
|
(205,327
)
|
(648,573
)
|
-
|
|
(839,525
)
|
Other income
(expense)
|
(6,120
)
|
-
|
-
|
|
(6,120
)
|
Gain (loss) on
change in fair value of derivative liabilities
|
-
|
84,284
|
-
|
|
84,284
|
Gain (loss) on debt
extinguishment
|
-
|
3,170,326
|
411,612
|
[2]
|
3,581,938
|
Total other income
(expense)
|
(485,504
)
|
2,606,038
|
411,612
|
|
2,532,145
|
|
|
|
|
|
|
Loss from
operations before taxes
|
(2,423,164
)
|
1,753,666
|
1,063,015
|
|
393,518
|
|
|
|
|
|
|
Tax
expense
|
(4,039
)
|
-
|
-
|
|
(4,039
)
|
|
|
|
|
|
|
Net
loss
|
$
(2,427,203
)
|
$
1,753,666
|
$
1,063,015
|
|
$
389,479
|
[1]
Du
ring the year ended March 31, 2017 Wealth
Generators, LLC ("WG") was utilizing the INVU merchant account to
process a number of the WG sales transactions. In exchange for the
use of the account, WG was making payments on an INVU note payable
on INVU's behalf. As of March 31, 2017 INVU was holding $162,430 in
their merchant account that belonged to WG, therefore had a
liability recorded on their books while WG had a corresponding
receivable. This entry eliminates those intercompany balances as if
the entities had been consolidated as of March 31,
2017
.
[2]
In con
junction with the Acquisition, INVU entered into
an assignment and assumption agreement wherein they issued
24,914,348 shares of their common stock to Alpha Pro Asset
Management Group, LLC ("Alpha Pro"), an entity affiliated with the
prior members of management, in exchange for Alpha Pro's assumption
of $482,588 worth of liabilities. This entry records the issuance
of shares, the extinguishment of debt, and the gain on the
transaction. One of the notes assumed by Alpha Pro had a derivative
liability recorded on the INVU’s books for $31,157, therefore
that liability was also extinguished with the execution of the
agreement.
[3]
INVU
issu
ed 1,358,670,942 shares of their
common stock to the members of Wealth Generators, LLC in exchange
for 100% of the outstanding securities of WG. This entry records
the issuance of shares to ensure the capital accounts reflects that
of the legal acquirer (INVU), records goodwill for the excess of
the purchase price over the assets acquired and liabilities assumed
and eliminates INVU's historical stockholders' deficit. The fair
value of the consideration effectively transferred was measured
based on the fair value of INVU’s shares that were
outstanding immediately before the transaction of 150,465,339.
Using the closing market price of INVU’s shares on March 31,
2017 of $0.0044 consideration was valued at
$662,047.
[4]
On
June 6, 2017 INVU entered into an
Acquisition Agreement with Market Trend Strategies, LLC ("Market"),
a company whose members are also former members of management of
INVU. In accordance with the Acquisition Agreement, INVU spun-off
the operations of INVU that existed prior to the merger with Wealth
Generators, LLC and sold the intangible assets used in the
operations of INVU pre-merger in exchange for Market assuming
$419,139 worth of liabilities that had been on the books
pre-merger. Because there was goodwill that was recorded in
conjunction with the merger, and it therefore related to the INVU
operations that were acquired, this spin-off entry effectively
reduced the goodwill to zero, reduced the liabilities that had been
assumed, removed the expenses related to the spun-off operations of
INVU pre-merger, and resulted in a gain on spin-off of
operations
.
[5]
This
entry reclasses the members deficit of Wealth
Generators, LLC to accumulated deficit of the consolidated
entity
.
NOTE 6 – RELATED PARTY TRANSACTIONS
Our
related party payables consisted of the following:
|
|
|
|
|
Short term advances
[1]
|
$
1,880
|
$
100,000
|
Revenue-based
funding agreement entered into on 11/8/15 [2]
|
-
|
180,000
|
Short-term
promissory note entered into on 9/13/16 [3]
|
-
|
150,000
|
Promissory note
entered into on 11/15/16 [4]
|
-
|
895
|
Promissory note
entered into on 3/15/17 [5]
|
-
|
375,000
|
|
$
1,880
|
$
805,895
|
[1]
We periodically receive advances for operating
funds from our current majority shareholders (former members of
Wealth Generators prior to the reverse acquisition) 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 set interest rates associated with them,
and are unsecured. During the year ended March 31, 2018, we
received $498,380 in cash proceeds from advances,
incurred
$64,605 in interest,
and repaid
related parties a total of $661,105
.
[2]
On
November 16, 2015, then a majority member of Wealth Generators
(pre-reverse acquisition) and currently a majority shareholder
advanced funds of $150,000 under a Revenue-based Funding Agreement,
which required that beginning December 30, 2015, we would pay an
amount equal to 2% of our top-line revenue generated from the prior
month to reduce the loan until the lender had received $450,000.
During the year ended March 31, 2018, we agreed to issue 10,000,000
shares of common stock to extinguish $90,000 in debt and to pay
$15,000 per month for six months, for a total of $90,000, under a
Conversion Agreement. We repaid $90,000 in cash during the year
ended March 31, 2018.
[3]
A
member of the senior management team has continuously advanced
funds of $150,000 at various times, beginning on September 14,
2016, under short-term Promissory Notes and their applicable
amendments. All of the notes carry the same terms, have a fixed
interest payment of $7,500, and are generally due in less than four
weeks. Under this arrangement, during the year ended March 31,
2018, we incurred $27,000 of interest and repaid a total of
$177,000.
[4]
We
entered into a Promissory Note for $94,788 with a company owned by
immediate family members of two members of our executive management
team. Funds were advanced to us on November 16 and December 16,
2016, in the amounts of $78,750 and $16,038, respectively. The
Promissory Note had a 12-month term, an annual interest rate of 8%,
and no prepayment penalty. During the year ended March 31, 2017, we
incurred $895 in interest expense on the note and repaid the entire
principal balance of $94,788. During the year ended March 31, 208
we repaid the remaining interest balance of $895.
[5]
A
company that was a majority member of Wealth Generators
(pre-reverse acquisition) and is currently a majority shareholder
entered into a Promissory Note in the amount of $300,000, advancing
funds on March 17, 2017. The note had a fixed interest amount of
$75,000 and matured on September 16, 2017, but was extended
initially through November 16, 2017, and then extended a second
time through December 31, 2017. An additional $12,500 in interest
was incurred for the second extension and total repayments of
$387,500 were made on this arrangement during the year ended March
31, 2018.
NOTE 7 – DEBT
Our
debt consisted of the following:
|
|
|
|
|
Revenue based
funding arrangement entered into on 8/31/15 [1]
|
$
-
|
$
263,641
|
Revenue share
agreement entered into on 6/28/16 [2]
|
195,245
|
525,000
|
Purchase and sale
agreement for future receivables entered into on 9/30/16
[3]
|
-
|
220,652
|
Short-term advance
received on 1/11/17 [4]
|
|
1,000,000
|
Short-term advance
received on 3/16/17 [5]
|
-
|
50,000
|
Promissory note
entered into on 3/31/17 [6]
|
-
|
34,452
|
|
$
195,245
|
$
2,093,745
|
[1]
We
entered into a Revenue-based Funding
Agreement and received proceeds of $50,000 on December 18, 2015,
$25,000 on April 17, 2015, and $25,000 September 1, 2015. The
agreement required that beginning September 30, 2015, we would pay
an amount equal to 2% of our top-line revenue generated from the
prior month to reduce the loan until the lender had received an
amount that was three times the amount advanced. During the year
ended March 31, 2018, we agreed to issue 10,000,000 shares of
common stock to extinguish $263,641 in debt.
[2]
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 year ended March 31, 2018, we repaid
$329,755
.
[3]
We
entered into a Purchase and Sale
Agreement for future receivables with an entity that provides quick
access to working capital. On October 6, 2016, we received proceeds
from this arrangement of $250,000. In accordance with the terms of
the agreement, we are required to repay $345,600 over a 16-month
period by making ACH payments in the amount of $1,052 per business
day. Accordingly, we recorded $95,000 as interest expense at
inception of the agreement, which was the difference between the
funds received and the amount that was to be repaid. During the
year ended March 31, 2018, we repaid $221,092 on the debt and
recorded $440 for eleven monthly maintenance fees of $40 per
month
.
[4]
We
received funds of $1,000,000 on January
11, 2017, and funds of $800,000 on April 10, 2017, as a result of
short-term advances in which the lender was anticipating converting
such funds into shares of common stock upon our acquisition by a
publicly traded company. On June 6, 2017, we formalized a
Conversion Agreement wherein the total of these funds, or
$1,800,000, was exchanged for 180,000,000 shares of our common
stock
.
[5]
We
received funds of $50,000 on March 16,
2017, as a result of a short-term advance. Such advance has no
interest rate or due date, thus was shown as due on demand. During
the year ended March 31, 2018, we entered into a Conversion
Agreement and issued 5,000,000 shares of common stock in exchange
for the $50,000 in debt
.
[6]
We received a
short-term advance of $24,965 on March 3, 2017 and entered into a
Promissory Note with the lender on March 31, 2017, to formalize the
lending arrangements for this advance. Per the Promissory Note,
$50,000 was to be advanced on or before April 3, 2017, therefore,
we received $25,000 in proceeds during the year ended March 31,
2018. The Promissory Note provided for a fixed interest amount of
$19,000 and matured on December 31, 2017. During the year ended
March 31, 2018, we recorded $9,513 as interest expense. On
September 10, 2017, we agreed to issue 5,000,000 shares of common
stock in exchange for the full $68,965 in debt.
In
addition to the above debt transactions that were outstanding as of
March 31, 2018 and 2017, during the year ended March 31, 2018, we
also received proceeds of $50,000 from short-term advances and
$800,000 from short-term notes. During the year ended March 31,
2018, we recorded interest expense of $65,000 for fixed interest
amounts due on the notes, entered into a Conversion Agreement to
issue 5,000,000 shares of stock to extinguish the short-term
advance of $50,000, and made total cash payments of $565,000 to
extinguish the interest and principal amounts due on the notes.
Also during the year ended March 31, 2018, we settled $250,000 of
note principal and $50,000 of interest in exchange for a
distributor position and subscription, therefore, the debt was
written off to revenue.
NOTE 8 – 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 March 31, 2018 and 2017 we had no preferred stock
issued or outstanding.
Common Stock Transactions
During
the year ended March 31, 2018, we issued 267,127,500 shares of
common stock for net proceeds of $2,495,338. We issued 125,000
shares of common stock with a value of $7,500 for a one-year
consulting agreement, 80,000,000 shares of common stock with a
value of $2,256,000 for a 15-year license agreement, and 94,250,333
shares of common stock with a value of $6,719,734 for consulting
and service agreements; of the value of the shares issued for
services and the license agreement $6,846,060 was recorded as
expense, $3,555 was recorded as a prepaid asset, and $2,133,620 was
recorded as a long-term license agreement during the year ended
March 31, 2018. We also issued 239,575,884 shares of our common
stock in settlement of debt, wherein accrued liabilities,
principal, accrued interest, and derivative liabilities were
extinguished in the amounts of $435,892, $2,348,606, $20,696, and
$38,557, respectively, and we recognized a loss on the settlement
of debt in the amount of $3,186,394 in the statement of operations
for the year ended March 31, 2018. In conjunction with the shares
issued for the settlement of debt, a gain of $413,012 related to
the period prior to the reverse acquisition with Wealth Generators
was excluded from the statement of operations. As a result of the
reverse acquisition, we issued 1,358,670,942 shares of common stock
(see Note 5). During the year ended March 31, 2018, we entered into
an equity distribution agreement that provides for cash advances up
to $5,000,000 in exchange for shares of our common stock, to be
fulfilled at our request. Pursuant to that agreement, we issued
4,273,504 shares of common stock as a commitment fee, recorded a
liability of $250,000 for future commitment fees to be paid, and
paid cash of $15,000 for due diligence costs. As a result, common
stock increased $4,274 and additional paid in capital decreased by
$269,274 to offset any proceeds from future equity transactions
resulting from the agreement. During the year ended March 31, 2018
we cancelled 250,000 shares of common stock and 1,300 shares of
treasury stock, resulting in a decrease in common stock of $251, a
decrease in additional paid in capital of $8,338, and a decrease in
treasury stock of $8,589.
In
conjunction with the sale of common stock during the year ended
March 31, 2018 we provided a guarantee to certain individuals such
that we would issue additional shares of our common stock if the
average closing price of our common stock fell below $0.02 per
share on the 20 days preceding the 18-month anniversary of the date
the shares were originally sold. As a result of this guarantee we
have recorded $626,388 in accounts payable and accrued liabilities
on our balance sheet as of March 31, 2018.
During
the year ended March 31, 2017 we issued 10,670,840 shares of common
stock in exchange for $157,500 of cash proceeds. We issued
6,072,200 shares of common stock with a value of $31,775 for legal
and consulting services, of which $18,390 was for current year
services and $173,647 was for services incurred in previous
periods, therefore we recorded a gain on settlement of debt for
$160,262. We issued 21,069,580 and 400,000 shares of stock valued
at $983,735 and $25,800 for compensation and director fees,
respectively, of which $536,575 was for current year services and
$472,960 was for amounts previously accrued. We also issued
72,709,924 shares of common stock in settlement of debt, wherein
principal, accrued interest, and derivative liabilities were
extinguished in the amounts of $1,994,362, $414,160, and $128,490,
respectively, and we recognized a gain on the settlement of debt in
the amount of $2,163,813. We also wrote off $250,000 worth of
Common Stock Subscription Receivable to Additional Paid in Capital
during the year ended March 31, 2017 due to the amounts being
uncollectible.
As of
March 31, 2018 and 2017, we had 2,169,661,318 and 125,889,455
shares of common stock issued and 2,169,661,318 and 125,888,155
shares of common stock outstanding, respectively.
Employee Stock Options
The
nonqualified plan adopted in 2007 authorizes 65,000 shares, of
which 47,500 have 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 have been granted under the
2008 plan.
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:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Options outstanding
at March 31, 2016
|
37,500
|
$
10.20
|
3.33
|
$
-
|
Granted
|
-
|
$
-
|
|
|
Exercised
|
-
|
$
-
|
|
|
Canceled /
expired
|
(2,500
)
|
$
12.00
|
|
|
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
|
$
-
|
Options exercisable
at March 31, 2018
|
35,000
|
$
10.00
|
1.51
|
$
-
|
Stock-based
compensation expense in connection with options granted to
employees for the year ended March 31, 2018 and 2017 was
$0.
Non-Employee Stock Options
The
following table summarizes the changes in options outstanding and
the related prices for the shares of the Company’s common
stock issued to consultants and non-employees of the
Company:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Options outstanding
at March 31, 2016
|
2,500
|
$
84.00
|
0.08
|
$
-
|
Granted
|
-
|
$
-
|
|
|
Exercised
|
-
|
$
-
|
|
|
Canceled /
expired
|
(2,500
)
|
$
84.00
|
|
|
Options outstanding
at March 31, 2017
|
-
|
$
-
|
-
|
$
-
|
Granted
|
-
|
$
-
|
|
|
Exercised
|
-
|
$
-
|
|
|
Canceled /
expired
|
-
|
$
-
|
|
|
Options outstanding
at March 31, 2018
|
-
|
$
-
|
-
|
$
-
|
Options exercisable
at March 31, 2018
|
-
|
$
-
|
-
|
$
-
|
Warrants
The
following table summarizes the warrants outstanding and the related
prices for the shares of the Company’s common stock as of
March 31, 2018:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
0.50
|
30,000
|
0.01
|
$
0.50
|
350,000
|
$
0.50
|
$
1.50
|
6,127,497
|
1.24
|
$
1.50
|
6,127,497
|
$
1.50
|
|
12,000
|
0.30
|
$
2.50
|
12,000
|
$
2.50
|
|
6,169,497
|
1.23
|
$
1.50
|
6,169,497
|
$
1.50
|
Transactions
involving the Company’s warrant issuance are summarized as
follows:
|
|
|
|
|
|
|
|
|
Warrants
outstanding at March 31, 2016
|
6,504,810
|
$
1.48
|
Granted /
restated
|
30,000
|
$
0.50
|
Canceled
|
-
|
$
-
|
Expired
|
-
|
$
-
|
Warrants
outstanding at March 31, 2017
|
6,534,810
|
$
1.48
|
Granted
|
-
|
$
-
|
Canceled
|
-
|
$
-
|
Expired
|
(365,313
)
|
$
(1.18
)
|
Warrants
outstanding at March 31, 2018
|
6,169,497
|
$
1.50
|
NOTE 9 – COMMITMENTS AND CONTINGENCIES
Litigation
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 March 31,
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 and have negotiated a resolution of this matter
with the CFTC staff. Under the proposed resolution, we will not
admit or deny any of the allegations, will pay a fine of $150,000,
and will agree not to act as an unregistered Commodities Trading
Advisor in the future. We cannot provide any assurance that the
resolution we have negotiated with the CFTC staff will be approved
by the CFTC. We await the acceptance of the resolution from the
CFTC.
●
Jim Westphal filed
a wage claim against Wealth Generators, LLC, in the United States
District Court for the District of Utah, Central Division (Case No.
2:18-cv-00080, District Judge Dale A. Kimball and Magistrate Judge
Evelyn J. Furse) 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. The Magistrate Judge
ordered both parties to provide specific disclosures to the other
side and both parties have complied. The Parties were ordered to
meet and confer in a good faith effort to settle the matter on or
before June 12, 2018. The parties were unable to settle the matter
and as of June 19, 2018, we are filing a countersuit to
proceed.
NOTE 10 – INCOME TAXES
Deferred
taxes are provided on a liability method whereby deferred tax
assets are recognized for deductible temporary differences and
operating loss and tax credit carryforwards and deferred tax
liabilities are recognized for taxable temporary differences.
Temporary differences are the differences between the reported
amounts of assets and liabilities and their tax bases. Deferred tax
assets are reduced by a valuation allowance when, in the opinion of
management, it is more likely than not that some portion or all of
the deferred tax assets will not be realized. Deferred tax assets
and liabilities are adjusted for the effects of changes in tax laws
and rates on the date of enactment. The Company used an effective
tax rate of 30% when calculating the deferred tax assets and
liabilities and income tax provision below.
Net
deferred tax assets consist of the following components as of March
31, 2018 and 2017:
|
|
|
|
|
Deferred tax
assets:
|
|
|
NOL
carryover
|
$
1,146,200
|
$
18,372,400
|
Amortization
|
335,600
|
-
|
Contingent
Liability
|
45,000
|
-
|
Related party
accrued payroll
|
-
|
2,200
|
Deferred tax
liabilities
|
|
|
Depreciation
|
(2,900
)
|
-
|
|
|
|
Valuation
allowance
|
(1,523,900
)
|
(18,374,600
)
|
Total long-term
deferred income tax assets
|
$
-
|
$
-
|
The
income tax provision differs from the amount of income tax
determined by applying the U.S. federal income tax rate to pretax
income from continuing operations for the years ended March 31,
2018 and 2017 due to the following:
|
|
|
|
|
Book income
(loss)
|
$
(4,473,900
)
|
$
754,100
|
Stock for
services
|
2,048,200
|
239,800
|
Gain on settlement
– derivative and equity derived
|
955,900
|
(1,006,900
)
|
Amortization
|
313,200
|
-
|
Contingent
liability
|
45,000
|
-
|
Unrealized loss on
cryptocurrency
|
40,700
|
-
|
Meals and
entertainment
|
6,200
|
-
|
Non-cash interest
expense
|
5,700
|
387,400
|
Depreciation
|
(2,800
)
|
-
|
Related party
accruals
|
(1,500
)
|
(220,600
)
|
Stock for
payables
|
-
|
278,000
|
Gain on derivative
liability
|
-
|
(36,200
)
|
Fines and
penalties
|
-
|
3,900
|
NOL
utilization
|
-
|
(399,500
)
|
Valuation
allowance
|
1,063,300
|
-
|
Total long-term
deferred income tax assets
|
$
-
|
$
-
|
At
March 31, 2018, the Company had net operating loss carryforwards of
approximately $3,821,000 that may be offset against future taxable
income for the year 2019 through 2038. However, due to the change
in ownership provisions of the Tax Reform Act of 1986, the NOL
accumulated prior to the April 1, 2017 acquisition can only offset
future income of up to $13,837 per year until expired. Should
additional changes in ownership occur, net operating loss
carryforwards in future years may be further limited.
No tax
benefit from continuing or discontinued operations have been
reported in the March 31, 2018 consolidated financial statements
since the potential tax benefit is offset by a valuation allowance
of the same amount.
The
Company complies with the provisions of FASB ASC 740 in accounting
for its uncertain tax positions. ASC 740 addresses the
determination of whether tax benefits claimed or expected to be
claimed on a tax return should be recorded in the financial
statements. Under ASC 740, the Company may recognize the tax
benefit from an uncertain tax position only if it is more likely
that not that the
tax
position will be sustained on examination by the taxing
authorities, based on the technical merits of the position. The
Company has determined that the Company has no significant
uncertain tax positions requiring recognition under ASC
740.
The
Company recognizes interest accrued related to unrecognized tax
benefits in interest expense and penalties in operating expenses.
The Company had no accruals for interest and tax penalties at March
31, 2018 and 2017.
The
Company does not expect the amount of unrecognized tax benefits to
materially change within the next twelve months.
The
Company is required to file income tax returns in the U.S. Federal
jurisdiction, in New York State, New Jersey, and in Utah. The
Company is no longer subject to income tax examinations by tax
authorities for tax years ending before March 31,
2014.
NOTE 11 – SUBSEQUENT EVENTS
On June
15, 2018 we completed state registration for SAFE Management LLC as
a Registered Investment Advisor and await final approval from the
State of New Jersey Bureau of Securities.
On May
7, 2018 we established WealthGen Global LLC as a Utah limited
liability company and a wholly owned subsidiary of Investview, Inc.
WealthGen Global LLC will operate as a computer hardware and
services re-seller.