As
filed with the Securities and Exchange Commission on March [__], 2020.
Registration
No. 333-236563
UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
Washington,
D.C. 20549
FORM
S-1/A
(Amendment
No. 1)
REGISTRATION
STATEMENT
UNDER
THE
SECURITIES ACT OF 1933
Investview,
Inc.
(Exact
name of registrant as specified in its charter)
Nevada
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7389
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87-0369205
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(State
or other jurisdiction of
incorporation
or organization)
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(Primary
Standard Industrial
Classification
Code Number)
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(I.R.S.
Employer
Identification
Number)
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234
Industrial Way West, Ste. A202, Eatontown, New Jersey 07224
Telephone
732-889-4300
(Address,
including zip code and telephone number, including area code, of registrant’s principal executive offices)
Joseph
Cammarata, Chief Executive Officer
Investview,
Inc.
234
Industrial Way West, Ste. A202, Eatontown, New Jersey 07724
Telephone:
732-889-4300
(Name,
address, including zip code and telephone number, including area code, of agent for service)
Copy
to:
The
Lonergan Law Firm, LLC
Lawrence
R. Lonergan, Esq.
96
Park Street
Montclair,
NJ 07042
Telephone:
973-641-4012
Approximate
date of commencement of proposed sale to the public: As soon as practicable after the effective date of this registration
statement.
If
any of the securities being registered on this Form are to be offered on a delayed or continuous basis pursuant to Rule 415 under
the Securities Act of 1933 check the following box. [ ]
If
this Form is filed to register additional securities for an Offering pursuant to Rule 462(b) under the Securities Act, check the
following box and list the Securities Act registration statement number of the earlier effective registration statement for the
same Offering. [ ]
If
this Form is a post-effective amendment filed pursuant to Rule 462(c) under the Securities Act, check the following box and list
the Securities Act registration statement number of the earlier effective registration statement for the same Offering. [ ]
If
this Form is a post-effective amendment filed pursuant to Rule 462(d) under the Securities Act, check the following box and list
the Securities Act registration statement number of the earlier effective registration statement for the same Offering. [ ]
Indicate
by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting
company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,”
“smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large
accelerated filer [ ]
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Accelerated
filer [ ]
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Non-accelerated
filer [ ]
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Smaller
reporting company [X]
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Emerging
growth company [ ]
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If
an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for
complying with any new or revised financial accounting standards provided pursuant to Section 7(a)(2)(B) of the Securities Act.
[ ]
CALCULATION
OF REGISTRATION FEE
Title
of Each Class of Securities to be Registered
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Amount
to be Registered
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Proposed
Maximum Offering Price per Share
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Proposed
Maximum Aggregate Offering Price
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Amount
of Registration Fee(1)
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Units consisting of shares of Series B Preferred
Stock, par value $0.001 per share, and Warrants to purchase shares of Common Stock, par value $0.001 per share
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2,000,000
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$
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25.00
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$
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50,000,000
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Shares of Series B Preferred Stock,
included as part of the Units
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2,000,000
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Common
Stock Purchase Warrants to purchase common stock, included as part of the Units (2)
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10,000,000
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Shares of Common Stock, par value $0.001 per
share, issuable upon exercise of the Warrants (3)(4)
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10,000,000
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$
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0.10
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$
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1,000,000
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Total
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$
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51,000,000
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$
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6,619.80
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(1)
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Calculated
pursuant to Rule 457(a) based on an estimate of the proposed maximum aggregate Offering price.
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(2)
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In
accordance with Rule 457(i) promulgated under the Securities Act, because the shares of our common stock underlying the Warrants
are registered hereby, no separate registration fee is required with respect to the Warrants registered hereby.
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(3)
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We
are issuing five (5) Common Stock Purchase Warrants (the “Warrants”) each exercisable to purchase one (1) share
of our common stock, par value $0.001 (“Common Stock”) as part of the units offered hereunder (the “Units”).
Each Unit consists of: (i) one (1) share of 13% Series B Preferred Cumulative Redeemable Perpetual Preferred Stock (“Series
B Preferred”); and (ii) five (5) Warrants. The Warrants are exercisable for a period of five (5) years from the date
of issuance to purchase one (1) additional share of Common Stock at a price of $0.10 per share.
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(4)
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No
additional registration fee is payable pursuant to Rule 457(g) promulgated under the Securities Act.
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The
registrant hereby amends this registration statement on such date or dates as may be necessary to delay its effective date until
the registrant shall file a further amendment which specifically states that this registration statement shall thereafter become
effective in accordance with Section 8(a) of the Securities Act of 1933, as amended (the “Securities Act”), or until
the registration statement shall become effective on such date as the Securities and Exchange Commission, acting pursuant to said
Section 8(a), may determine.
Explanatory
Note: The sole purpose of this Amendment No. 1 to the Registration Statement filed on February 21, 2020, is to reflect an
amendment to the termsof the Form of Placement Agreement (filed as Exhibit 10.56.1 hereto), reducing the cash fee payable to Placement
Agents from 10% to 9% of the gross proceeds received from Qualified Investors as a direct result of the selling efforts and introductions
of the respective Placement Agent(s) and providing for the issuance of Placement Agent Warrants equal to 9% of the number of Units
sold to Qualified Investors as a direct result of the selling efforts and introductions of each respective Placement Agent. The
Placement Agent Warrants will entitle each respective Placement Agent to purchase for a period of five (5) years the number of
Units, at the Unit Offering Price of $25.00 per Unit sold to Qualified Investors based upon the selling efforts and introductions
of each respective Placement Agent. Reference is made to Exhibit 10.56.1, the Form of Placement Agent Agreement, as Amended, and
the revised disclosure in the Prospectus under “Plan of Distribution,” “Use of Proceeds,” and elsewhere
in the Prospectus.
PRELIMINARY
PROSPECTUS
Subject
to completion, dated February __, 2020
The
information in this preliminary prospectus is not complete and may be changed. These securities may not be sold until the registration
statement filed with the Securities and Exchange Commission is effective. This preliminary prospectus is not an offer to sell
these securities and we are not soliciting an offer to buy these securities in any jurisdiction where the offer or sale is not
permitted.
INVESTVIEW,
INC.
2,000,000
Units
Each
Unit Consisting of
One
Share of 13% Series B Cumulative Redeemable Perpetual Preferred Stock and
Five
Warrants Each Exercisable to Purchase One Share of Common Stock
Pursuant
to this registration statement, of which this prospectus is a part, we are offering (the “Offering”) a total of 2,000,000
units (each a “Unit” and collectively, the “Units”), each Unit consisting of: (i) one share of our newly
authorized 13% Series B Cumulative Redeemable Perpetual Preferred Stock (the “Series B Preferred”); and (ii) five
(5) warrants (the “Warrants”) each exercisable to purchase one (1) share of common stock, par value $0.001 per share
(“Common Stock” or “Warrant Shares”), at an exercise price of $0.10 (the “Exercise Price”)
per Warrant Share . Each Warrant offered hereby as part of the Units is immediately exercisable on the date of issuance and will
expire on March [_________], 2025 the date that is five (5) years from the date of issuance (the “Warrant Expiration
Date”).
Dividends
on the Series B Preferred, having a stated value of $25 per share (“Stated Value”), which are offered hereby as part
of the Units, are cumulative from the first day of the calendar month in which they are issued, and will be payable on the 15th
day of each calendar month, when, as and if declared by our Board of Directors (“Board”). Dividends will be payable
out of amounts legally available therefor at a rate equal to 13% per annum per $25, the Stated Value per share, or $3.25 per share
of Series B Preferred per year. We will reserve the amount equal to the first three years of dividend payments, or $9.75 per share
of Series B Preferred, from the proceeds from this Offering (the “Dividend Reserve”) in an escrow account (the “Escrow
Account”) maintained by International Financial Enterprise Bank (“IFEB Bank”), with offices in Dallas, TX, also
referred to hereinafter as the “Escrow Agent.”
Commencing
on three years from the dates of issuance, we may redeem, at our option, the shares of Series B Preferred, in whole or in part,
at a cash redemption price equal to: (i) of $25 per share, plus all accrued and unpaid dividends to, but not including, the redemption
date. The Series B Preferred has no stated maturity, will not be subject to any sinking fund or other mandatory redemption, and
will not be convertible into or exchangeable for any of our other securities.
Holders
of the Series B Preferred will have no voting rights, except as set forth below in section “Voting Rights” under subheading
“Description of Offered Securities”.
Prior
to this Offering, there has been no public market for the Units, the Series B Preferred or the Warrants. We anticipate that upon
the SEC declaring the registration statement effective, and FINRA approving the symbols we request for the Units, shares of Series
B Preferred, and the Warrants, that these securities will initially be subject to quotation and trading on the OTC Market including,
possibly, the OTCQB or OTCQX, of which there can be no assurance, under the symbols “INVUU,” “INVUB” and
“INVUW,” respectively. Our Common Stock is currently quoted on the OTCQB market under the symbol “INVU.”
We
may use broker-dealers, referred to as placement agents to use their best efforts to solicit offers to purchase the Units in this
Offering. If any placement agents sell Units, they will be deemed “underwriters” as that term is defined by Section
2(a)(11) of the Securities Exchange Act of 1933 (the “Securities Act”). We will pay any placement agent’s cash
commissions equal to 9% of the gross proceeds from any Units they sell and issued Placement Agent Warrants exercisable
for a period of 5 years to purchase a number of Units sold by participating Placement Agreements equal to 9% of the Units the
respective Placement Agents sell at an exercise price of $25.000 per Placement Agent Warrant. Referenced is made to the Form
of Placement Agent Agreement, as Amended, attached as Exhibit 10.56.1 to the registration statement, of which this
prospectus is a part.
This
Offering may be closed without further notice to you. Other than as described above, we have not arranged to place any funds from
investors in an escrow, trust or similar account.
Investing
in our securities involves a high degree of risk. See “Risk Factors” beginning on page 8 of this prospectus. You should
carefully consider these risk factors, as well as the information contained in this prospectus, before purchasing any of the securities
offered by this prospectus.
NEITHER
THE SECURITIES AND EXCHANGE COMMISSION NOR ANY STATE SECURITIES COMMISSION HAS APPROVED OR DISAPPROVED OF THESE SECURITIES OR
PASSED UPON THE ADEQUACY OR ACCURACY OF THIS PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE.
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Per
Unit
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Total
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Public
Offering price
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$
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25.00
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$
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50,000,000
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Placement
agent fees (1)(2)
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$
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2.25
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$
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4,500,000
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Proceeds,
before expenses, to the Company
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$
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22.75
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$
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45,500,000
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(1)
See “Plan of Distribution” for a description of cash commissions payable to the placement agent equal to
9% of the number of Units sold by each respective Placement Agent. In addition, the Company will issue a number of Placement Agent
Warrants equal to 9% of the number of Units sold by each Placement Agent. We estimate our other expenses to be $100,000.
(2)
Assumes all Units will be sold by Placement Agents.
[______________]
The date of this prospectus is March
[ ], 2020
TABLE
OF CONTENTS
You
should rely only on the information contained in this prospectus. Neither we nor the placement agent have authorized anyone to
provide any information or to make any representations other than those contained in this prospectus we have prepared. We take
no responsibility for, and can provide no assurance as to the reliability of, any other information that others may give you.
This prospectus is an offer to sell only the securities offered hereby, but only under circumstances and in jurisdictions where
it is lawful to do so. The information contained in this prospectus is current only as of its date. You should also read this
prospectus together with the additional information described under “Additional Information.”
Unless
the context otherwise requires, we use the terms “we,” “us,” “the Company” and “our”
to refer to Investview, Inc. and its consolidated subsidiaries.
CAUTIONARY
Note Regarding Forward-Looking Statements
This
prospectus contains statements about the future, sometimes referred to as “forward-looking” statements. Forward-looking
statements are typically identified by the use of the words “believe,” “may,” “could,” “should,”
“expect,” “anticipate,” “estimate,” “project,” “propose,” “plan,”
“intend,” and similar words and expressions. Statements that describe our future strategic goals, plans, objectives,
and predictions are also forward-looking statements. This prospectus contains forward-looking statements relating to future products
or product development; future selling, general and administrative costs and research and development spending; future performance
of our network marketing efforts; our expectations regarding ongoing litigation; international growth; and future financial performance,
results of operations, capital expenditures, and sufficiency of capital resources to fund our operating requirements.
This
forward-looking information involves important risks and uncertainties that could significantly affect anticipated results in
the future, and accordingly, such results may differ from those expressed in any forward-looking statements made herein. These
risks and uncertainties include those relating to:
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noncompliance
by our independent distributors with applicable legal requirements or our policies and procedures;
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potential
adverse effects on our business and stock price due to ineffective internal controls over financial reporting;
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inability
to manage financial reporting and internal control systems and processes;
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inability
to properly motivate and manage our independent distributors;
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inability
to manage existing markets, open new international markets, or expand our operations;
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inability
of new products to gain distributor or market acceptance;
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inability
to execute our product launch process due to increased pressure on our supply chain, information systems, and management;
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disruptions
in our information technology systems;
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inability
to protect against cybersecurity risks and to maintain the integrity of data;
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international
trade or foreign exchange restrictions, increased tariffs, foreign currency exchange fluctuations;
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deterioration
of global economic conditions;
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inability
to raise additional capital if needed;
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inability
to retain independent distributors or to attract new independent distributors on an ongoing basis;
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government
regulations on direct selling activities in our various markets prohibiting or severely restricting our business;
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unfavorable
publicity on our business or products;
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a
finding that our direct selling program is not in compliance with current or newly adopted laws or regulations in various
markets;
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expensive
and time-consuming legal proceedings;
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potential
for investigatory and enforcement action by the Federal Trade Commission;
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failure
to comply with anti-corruption laws;
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inability
to build and integrate our management team;
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loss
of, or inability to attract, key personnel;
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unexpected
tax or other assessments relating to the activity of our independent distributors;
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●
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economic,
political, foreign exchange, and other risks associated with international operations; and
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●
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volatility
of the market price of our common stock.
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These
forward-looking statements are only predictions, are uncertain and involve substantial known and unknown risks, uncertainties
and other factors which may cause our (or our industry’s) actual results, levels of activity or performance to be materially
different from any future results, levels of activity or performance expressed or implied by these forward-looking statements.
The “Risk Factors” section of this prospectus sets forth detailed risks, uncertainties and cautionary statements regarding
our business and these forward-looking statements. Moreover, we operate in a very competitive and rapidly changing regulatory
environment. New risks and uncertainties emerge from time to time, and it is not possible for us to predict all of the risks and
uncertainties that could have an impact on the forward-looking statements contained in this prospectus.
We
cannot guarantee future results, levels of activity or performance. You should not place undue reliance on these forward-looking
statements, which speak only as of the date of this prospectus. These cautionary statements should be considered with any written
or oral forward-looking statements that we may issue in the future. Except as required by applicable law, including the securities
laws of the U.S., we do not intend to update any of the forward-looking statements to conform these statements to reflect actual
results, later events or circumstances or to reflect the occurrence of unanticipated events. Our forward-looking statements do
not reflect the potential impact of any future acquisitions, mergers, dispositions, joint ventures or other investments or strategic
transactions we may engage in.
Prospectus
Summary
This
prospectus summary contains an overview of the information from this prospectus, but may not contain all of the information that
is important to you. This prospectus includes specific terms of the offering of our common stock, information about our business,
and financial data. We encourage you to read this prospectus, including the “Risk Factors” section beginning on page
8, in its entirety before making an investing decision. You should read this prospectus together with additional information described
below under the heading “Where You Can Find Additional Information.” As used in this prospectus, the terms “we,”
“us,” and “our” refer to Investview, Inc., a corporation organized under the laws of the state of Nevada,
including our subsidiaries, and our predecessors, unless the context indicates a different meaning.
Our
Business
Nature
of Business
Investview
owns a number of companies that each operate independently but are accretive to one another. Investview is establishing a portfolio
of wholly owned subsidiaries delivering leading edge technologies, services and research, dedicated primarily to the individual
consumer. Following is a description of each of our companies.
Kuvera,
LLC provides 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 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.
Kuvera
France S.A.S. is our entity in France that will distribute Kuvera products and services throughout the European Union.
S.A.F.E.
Management, LLC is a Registered Investment Adviser and Commodity Trading Adviser that has been established to deliver automated
trading strategies to individuals who find they lack the time to trade for themselves.
United
League, LLC owns a number of proprietary technologies including FIREFAN a social app for sports enthusiasts. Technologies
created to support any of the Investview companies are held under the United League structure.
United
Games, LLC is the distribution network for United League technologies. Since the acquisition of United Games in July of 2018,
we are working to combine the distributors of Kuvera and United Games. This is an on-going process that is not yet complete.
SAFETek,
LLC (formerly WealthGen Global, LLC) is a new addition that we are currently establishing for expansion plans in the high-speed
processing and cloud computing environment.
Apex
Tek, LLC (formerly Razor Data, LLC) is the sales and distribution company for APEX packages and technology. It offers a unique
passive income model for those interested in earning through the purchase and leaseback of high-speed specialized data processing
equipment. This model has drawn considerable institutional interest.
Investment
Tools & Training, LLC currently has no operations or activities
Our
Address
Our
principal executive offices are located at 234 Industrial Way West, Ste. A202, Eatontown, New Jersey 07224, and our telephone
number is 732-889-4300.
Before
you invest in our Units, you should carefully consider all the information in this Prospectus, including matters set forth under
the heading “Risk Factors.”
Our
Filing Status as a “Smaller Reporting Company”
We
are a “smaller reporting company,” meaning that we are not an investment company, an asset-backed issuer, or a majority-owned
subsidiary of a parent company that is not a smaller reporting company and have a public float of less than $75 million and annual
revenues of less than $50 million during the most recently completed fiscal year. As a “smaller reporting company,”
the disclosure we will be required to provide in our SEC filings are less than it would be if we were not considered a “smaller
reporting company.” Specifically, “smaller reporting companies” are able to provide simplified executive compensation
disclosures in their filings; are exempt from the provisions of Section 404(b) of the Sarbanes-Oxley Act of 2002 requiring that
independent registered public accounting firms provide an attestation report on the effectiveness of internal control over financial
reporting; are not required to conduct say-on-pay and frequency votes until annual meetings occurring on or after January 21,
2013; and have certain other decreased disclosure obligations in their SEC filings, including, among other things, being permitted
to provide two years of audited financial statements in annual reports rather than three years. Decreased disclosures in our SEC
filings due to our status as a “smaller reporting company” may make it harder for investors to analyze the Company’s
results of operations and financial prospects.
The
Offering
The
following summary contains basic terms about this Unit Offering including the Series B Preferred and the Warrants and is not intended
to be complete. It may not contain all of the information that is important to you. You should read the more detailed information
contained in this prospectus, including but not limited to, the risk factors beginning on page 8. For a more complete description
of the terms of the Units, see “Description of the Securities Offered.” Reference is also made to the “Certificate
of Designations, Preferences and Rights of 13% Series B Cumulative Redeemable Perpetual Preferred Stock,” filed as Exhibit
10.55 to this Registration Statement (the Series B Certificate of Designation.”
Issuer
|
|
Investview,
Inc.
|
Securities
Offered
|
|
2,000,000
Units, each Unit consisting of: (i) one share of 13% Series B Preferred, having a Stated Value of $25; and (ii) five Warrants
each exercisable to purchase one share of our Common Stock (the “Warrant Shares”) at an exercise price of $0.10
(the “Exercise Price”). The shares of Series B Preferred and the Warrants comprising the Units are immediately
separable upon issuance and will be issued separately upon the closing of this Offering.
|
|
|
|
Shares
of Series B Preferred Offered
|
|
2,000,000
|
|
|
|
Warrants
Offered
|
|
Warrants
to purchase up to 10,000,000 shares of Common Stock (the “Warrant Shares”),
which will be exercisable during the period commencing on the date of their issuance
and ending five years from such date (the “Warrant Expiration Date”) at an
exercise price of $0.10 per Warrant Share (the “Exercise Price”). This Prospectus
also relates to the Offering of the shares of Common Stock issuable upon exercise of
the Warrants, referred to herein as the Warrant Shares. There is no established public
trading market for the Warrants, and we cannot assure you an active trading market will
develop or be sustained, if at all. In addition, the exercise price of the Warrants is
subject to adjustment in the event during the five year exercise period from the original
issuance of the Warrants, if we sell any shares of our Common Stock or securities exchangeable
or exercisable or convertible into our Common Stock, subject to certain exceptions, at
a price per share less than the exercise price of the Warrants then in effect or without
consideration. Reference is made to Exhibit 10.57, Form of Common Stock Purchase Warrant.
|
|
|
|
Series
B Preferred to be Outstanding after this Offering
|
|
2,000,000
shares
|
|
|
|
Offering
Price
|
|
$25
per Unit
|
|
|
|
Dividends
|
|
Holders
of the Series B Preferred will be entitled to receive cumulative cash dividends at a
rate of 13% per annum on the stated value, $25 per share, of the Series B Preferred (equivalent
to $3.25 per annum per share).
Dividends
will be payable monthly in arrears on the 15th day of each month (each, a “Dividend Payment Date”),
provided that if any Dividend Payment Date is not a business day, then the dividend that would otherwise have been payable
on that Dividend Payment Date may be paid on the next succeeding business day without adjustment in the amount of the
dividend. Dividends will be payable to holders of record as they appear on our stock records for the Series B Preferred
at the close of business on the corresponding record date, which shall be the last day of the calendar month, whether
or not a business day, immediately preceding the month in which the applicable Dividend Payment Date falls (each, a “Dividend
Record Date”). As a result, holders of shares of Series B Preferred will not be entitled to receive dividends on
a Dividend Payment Date if such shares were not issued and outstanding on the applicable dividend record date.
Any
dividend payable on the Series B Preferred, including dividends payable for any partial dividend period, will be computed
on the basis of a 360-day year consisting of twelve 30-day months; however, the shares of Series B Preferred offered hereby
will be credited as having accrued dividends since the first day of the calendar month in which they are issued.
|
Dividend
Escrow
|
|
We
will allocate and pay from the proceeds from this Offering an amount equal to the first three years of dividend payments,
or $9.75 per share of Series B Preferred, to IFEB Bank (the “Escrow Agent”). The dividends on the Series B Preferred
paid by the Company from the proceeds of the Offering into the Escrow Account and will be held by the Escrow Agent utilizing
the services of VStock Transfer, LLC, a licensed transfer agent (“VStock”), which monies will be the sole
property, and for the sole benefit, of the investors and will not be deemed for any purposes whatsoever the property of the
Company. For three years after issuance, without further authorization from our Board, the Escrow Agent will pay dividends
through VStock to investors on a monthly basis as set forth above. Although, dividends will accrue separately for each
investor, the Escrow Agent will not pay dividend payments to any investor unless it pays all investors who are listed as Series
B Preferred stockholders on our transfer records as of each Dividend Record Date. See “Description of Offered Securities
- Dividends.”
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No
Maturity, Sinking Fund or Mandatory Redemption
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The
Series B Preferred has no stated maturity and will not be subject to any sinking fund or mandatory redemption. Shares of the
Series B Preferred will remain outstanding indefinitely unless we decide to redeem or otherwise repurchase them as provided
under Optional Redemption and Special Optional Redemption below. We are not required to set aside funds to redeem the Series
B Preferred.
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Optional
Redemption
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The
Series B Preferred is not redeemable by us prior to the three-year anniversary of each
issuance of Series B Preferred. We may, at our option, redeem the Series B Preferred,
in whole or in part, at any time or from time to time, for cash at a redemption price
equal to the Stated Value of $25 per share of Series B Preferred, plus any accumulated
and unpaid dividends to, but not including, the redemption date. See “Description
of the Series B Preferred - Redemption - Optional Redemption” for further details.
If we redeem any Series B Preferred, we will only do so by treating all investors equally.
In order to do that, we will deposit all redemption proceeds in an escrow account, since
we expect the three-year periods to vary. The only exception to escrowing funds will
be if the redemption date is more than three years after issuance of all Series B Preferred
in which case, we will simply pay all investors at the same time.
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Special
Optional Redemption
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Upon
the occurrence of a Change of Control, we may, at our option, redeem the Series B Preferred,
in whole or in part, within 120 days after notice of such Change of Control, for cash
at a redemption price equal to the Stated Value of $25 per share of Series B Preferred,
plus any accumulated and unpaid dividends to, but not including, the redemption date.
A
“Change of Control” is deemed to occur when any person, including any syndicate or group deemed to be a “person”
under Section 13(d)(3) of the Securities Exchange Act of 1934 (the “Exchange Act”) of beneficial ownership,
directly or indirectly, through a purchase, merger or other acquisition transaction or series of purchases, mergers or
other acquisition transactions shall have acquired our stock entitling that person to exercise more than 50% of the total
voting power of all our stock entitled to vote generally in the election of our directors (except that such person will
be deemed to have beneficial ownership of all securities that such person has the right to acquire, whether such right
is currently exercisable or is exercisable only upon the occurrence of a subsequent condition).
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Ranking
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The
Series B Preferred will rank, with respect to rights to the payment of dividends and the distribution of assets upon our liquidation,
dissolution or winding up, senior to all classes or series of our Common Stock or our issued and outstanding Series A Preferred
Stock and to all other equity securities issued by us other than equity securities on a parity with all equity securities
issued by us with terms specifically providing that those equity securities rank on a parity with the Series B Preferred with
respect to rights to the payment of dividends and the distribution of assets upon our liquidation, dissolution or winding
up; junior to all equity securities issued by us with terms specifically providing that those equity securities rank senior
to the Series B Preferred with respect to rights to the payment of dividends and the distribution of assets upon our liquidation,
dissolution or winding up, including any other series of Preferred Stock; and effectively junior to all of our existing and
future indebtedness (including indebtedness convertible into our Common Stock or Preferred Stock) and to the indebtedness
and other liabilities of (as well as any preferred equity interests held by others in) our existing subsidiaries and any future
subsidiaries. See “Description of the Series B Preferred–Ranking” for further information.
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Limited
Voting Rights
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Holders
of Series B Preferred will have no voting rights except for the limited instance where the Series B Preferred may vote. See
the section entitled “Description of the Series B Preferred—Voting Rights,” and the Series B Certificate
of Designation, filed as Exhibit 10.55 to this Registration Statement.
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Use
of Proceeds
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After
escrowing proceeds equal to $9.75 per share of Series B Preferred with the Escrow Agent for the payment of the initial three
years of dividends, we plan to use the net proceeds from this Offering to repay our outstanding debt to repay our loans which
we estimate is $2,190,000 as of the date of this Prospectus. And the balance for working capital, general corporate purposes
and growth initiatives, including potential future acquisitions, although the Company has no present plans, arrangements or
agreements for any such acquisitions. See the disclosure under “Use of Proceeds” below.
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Risk
Factors
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Please
read the disclosure under the section entitled “Risk Factors” beginning on page 8 for a discussion of some of
the factors you should carefully consider before deciding to invest in our Series B Preferred and Warrants.
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Trading
Market
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Our
Common Stock is quoted on the OTCQB under the INVU symbol. We expect the Units, the Series B Preferred, and the Warrants will
be quoted under the symbols “INVUU,” “INVUB” and “INVUW,” respectively, pending assignment
by FINRA of trading symbols, following the date the SEC declares the Registration Statement effective under the Act. We intend
to initially apply to the OTCQB Market (“OTCQB”) to make these securities become subject to quotation although
we may determine to apply for quotation on the OTCQX although there can be no assurance that we will qualify for quotation
of these securities on the OTCQX. See “Description of Offered Securities - Trading Market.”
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Transfer
Agent
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Standard
Registrar and Transfer Co., Inc. will act as the registrar, transfer agent and dividend and redemption price disbursing agent
in respect of the Units, Series B Preferred and Warrants.
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Certain
U.S. Federal Income Tax Considerations
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For
a discussion of the federal income tax consequences of purchasing, owning and disposing
of the Series B Preferred, please see the section entitled “Certain U.S. Federal
Income Tax Considerations.” You should consult your tax advisor with respect
to the U.S. federal income tax consequences of owning the Series B Preferred in light
of your own particular situation and with respect to any tax consequences arising under
the laws of any state, local, foreign or other taxing jurisdiction.
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Book
Entry and Form
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The
Units, the Series B Preferred and the Warrants will be represented by one or more global certificates in definitive, fully
registered form deposited with a custodian for, and registered in the name of, a nominee of The Depository Trust Company (“DTC”).
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Risk
Factors
Investing
in our securities involves a high degree of risk. You should carefully consider and evaluate all of the information contained
in this prospectus before you decide to purchase the Units. The risks and uncertainties described in this prospectus are not the
only ones we may face. Additional risks and uncertainties that we do not presently know about or that we currently believe are
not material may also adversely affect our business, business prospects, results of operations or financial condition. Any of
the risks and uncertainties set forth herein, could materially and adversely affect our business, results of operations and financial
condition. This could cause the market price of the Units, the Series B Preferred and the Warrants to decline, perhaps significantly,
and you may lose part or all of your investment.
Risks
Related to our Financial Condition
Because
this is a best effort Offering, investors who invest initially will be subject to more risk than later investors.
We
are seeking to raise up to $50,000,000 from the sale of the Units. We intend to escrow approximately 39% of the gross proceeds
in order to provide investors a 13% return through dividend payments for three years from the date of issuance to each investor.
The remaining proceeds will be first used to pay our indebtedness which is expected to be approximately $2,050,000 as of the date
of this prospectus and we intend to use the remaining proceeds for working capital, general corporate purposes and growth initiatives,
including potential future acquisitions, although the Company has no present plans, arrangements or agreements for any such acquisitions.
See “Description of Offered Securities – Series B Preferred.” Because this is a best effort Offering, the earlier
investors invest in this Offering, the greater degree of risk they will incur. For example, if the Company raises an immaterial
amount, investors will be subject to more risk than if all or substantially all of the $50,000,000 is raised. This is because
there is no minimum amount of proceeds we must raise. If we do not raise a substantial amount of proceeds, we may not have sufficient
working capital to be able to carry out our business since we are continuing to lose money. In that event, we will be required
to seek other financing which, if available, may be very dilutive and expensive. In that event, your investment will be adversely
affected. In order to qualify for the OTCQB, we will need to generate net proceeds of $1.7 million from the sale of 68,000 Units,
at which time we will have the initial closing, following which we will continue the Offering of Units until all of the units
are sold or we terminate the Offering. There can be no assurance that we will be successful in selling 68,000 Units and our Series
B Preferred becoming subject to quotation of the OTCQB.
Our
Independent Registered Public Accounting Firm has expressed substantial doubt as to our ability to continue as a going concern.
The
audited financial statements have been prepared assuming that we will continue as a going concern and do not include any adjustments
that might result if we cease to continue as a going concern. We believe that to continue as a going concern we will need approximately
$1,00,000 per year simply to cover the administrative, legal and accounting fees. We plan to fund these expenses primarily through
cash flow from operations, if and when we generate positive cash flow, of which there can be no assurance, the sale of restricted
shares of our Common Stock, and the issuance of convertible notes, as well as funds raised from this Offering, if it is successful,
of which there can be no assurance
Based
on our financial statements for the years ended March 31, 2019 and 2018, our independent registered public accounting firm has
expressed substantial doubt as to our ability to continue as a going concern.
Investing
in our securities involves a great deal of risk. Careful consideration should be made of the following factors as well as other
information included in this Prospectus before deciding to purchase the Units subject of this Offering or of our Common Stock
in the open market or otherwise. Our business, financial condition or results of operations could be affected materially and adversely
by any or all the risks set forth under “Risk Factors” and elsewhere in this Prospectus.
We
may need to raise additional capital to fund continuing operations and an inability to raise the necessary capital or to do so
on acceptable terms could threaten the success of our business.
To
date, our operations have been funded entirely from the proceeds from equity and debt financings or loans from our management.
We currently anticipate that our available capital resources will be insufficient to meet our expected working capital and capital
expenditure requirements for the near future. We anticipate that we will require an additional $1.5 million during the next twelve
months to fulfill our business plan. However, such resources may not be sufficient to fund the long-term growth of our business.
If we determine that it is necessary to raise additional funds, we may choose to do so through strategic collaborations, licensing
arrangements through our “White Labeling” strategy, public or private equity or debt financing, a bank line of credit,
or other arrangements.
We
cannot be sure that any additional funding will be available on terms favorable to us or at all. Any additional equity financing
may be dilutive to our shareholders, new equity securities may have rights, preferences or privileges senior to those of existing
holders of our shares of Common stock. Debt or equity financing may subject us to restrictive covenants and significant interest
costs. If we obtain funding through a strategic collaboration or licensing arrangement, we may be required to relinquish our rights
to our product or marketing territories. If we are unable to obtain the financing necessary to support our operations, we may
be required to defer, reduce or eliminate certain planned expenditures or significantly curtail our operations.
We
have a history of net losses; we may never achieve or sustain profitability or positive cash flow from operations.
We
have incurred net losses in each fiscal year since our inception, including net losses of $5,011,036 for the year ended March
31, 2019 and $14,913,016 for the year ended March 31, 2018, and a net loss of $8,587,449 for the nine months ended December 31,
2019. As of December 31, 2019, we had an accumulated deficit of approximately $33,684,432. We expect to continue to incur substantial
expenditures to develop and market our services and could continue to incur losses and negative operating cash flow for the foreseeable
future. We may never achieve profitability or positive cash flow in the future, and even if we do, we may not be able to continue
being profitable.
We
have a limited operating history; it is difficult to evaluate our business and future prospects and increases the risks associated
with investment in our securities.
We
have only limited prior business operations. Because of our limited operating history, investors may not have adequate information
on which they can base an evaluation of our business and prospects. Investors should be aware of the difficulties, delays, and
expenses normally encountered by an enterprise in its early stage, many of which are beyond our control, including unanticipated
research and development expenses, employment costs, and administrative expenses. We cannot assure our investors that our proposed
business plans as described herein will materialize or prove successful, or that we will be able to finalize development of our
products or operate profitably. We may not be successful in addressing these and other challenges we may face in the future, and
our business and future prospects may be materially and adversely affected if we do not manage these and other risks successfully.
Given our limited operating history, we may be unable to effectively implement our business plan which could materially harm our
business or cause us to scale down or cease our operations.
Risks
Related to our Business
We
may not be able to manage our growth effectively, which could slow or prevent our ability to achieve profitability.
The
ability to manage and operate our business as we execute our development and growth strategy will require effective planning.
Significant rapid growth could strain our internal resources and delay or prevent our efforts to achieve profitability. We expect
that our efforts to grow will place a significant strain on our personnel, management systems, infrastructure, and other resources.
Our ability to manage future growth effectively will also require us to successfully attract, train, motivate, retain, and manage
new employees and continue to update and improve our operational, financial, and management controls and procedures. If we do
not manage our growth effectively, slower growth is likely to occur, thereby slowing or negating our ability to achieve and sustain
profitability.
We
may not be able to fully protect our proprietary rights and we may infringe the proprietary rights of others, which could result
in costly litigation.
Our
future success depends on our ability to protect and preserve the proprietary rights related to our products. We cannot assure
that we will be able to prevent third parties from using our intellectual property rights and technology without our authorization.
We also rely on trade secrets, common law trademark rights, and trademark registrations, as well as confidentiality and work for
hire, development, assignment, and license agreements with employees, consultants, third-party developers, licensees, and customers.
Our protective measures for these intangible assets afford only limited protection and may be flawed or inadequate.
Policing
unauthorized use of our technology is difficult and some foreign laws do not provide the same level of protection as U.S. laws.
Litigation may be necessary in the future to enforce our intellectual property rights, to protect our trade secrets or patents
that we may obtain, or to determine the validity and scope of the proprietary rights of others. Such litigation could result in
substantial costs and diversion of resources and have a material adverse effect on our future operating results.
In
recent years, there has been significant litigation in the United States involving patents and other intellectual property rights.
In particular, there has been an increase in the filing of suits alleging infringement of intellectual property rights, which
pressures defendants into entering settlement arrangements quickly to dispose of such suits, regardless of their merits. Other
companies or individuals may allege that we infringe on their intellectual property rights. Litigation, particularly in the area
of intellectual property rights, is costly and the outcome is inherently uncertain. In the event of an adverse result, we could
be liable for substantial damages and we may be forced to discontinue our use of the intellectual property in question or obtain
a license to use those rights or develop non-infringing alternatives.
Our
business could be negatively affected by any adverse economic developments in the securities markets or the economy in general.
We
depend on the interest of individuals in obtaining financial information and securities trading strategies to assist them in making
their own investment decisions. Significant downturns in the securities markets or in general economic and political conditions
may cause individuals to be reluctant to make their own investment decisions and, thus, decrease the demand for our products.
Significant upturns in the securities markets or in general economic and political conditions may cause individuals to be less
proactive in seeking ways to improve the returns on their trading or investment decisions and, thus, decrease the demand for our
products.
We
may encounter risks relating to security or other system disruptions and failures that could reduce the attractiveness of our
sites and that could harm our business.
Although
we have implemented various security mechanisms, our business is vulnerable to computer viruses, physical or electronic break-ins,
and similar disruptions, which could lead to interruptions, delays, or loss of data. For instance, because a portion of our revenue
is based on individuals using credit cards to purchase subscriptions over the Internet and a portion from advertisers that seek
to encourage people to use the Internet to purchase goods or services, our business could be adversely affected by these break-ins
or disruptions.
Additionally,
our operations depend on our ability to protect systems against damage from fire, earthquakes, power loss, telecommunications
failure, and other events beyond our control. Moreover, our website may experience slower response times or other problems for
a variety of reasons, including hardware and communication line capacity restraints, software failures, or significant increases
in traffic when there have been important business or financial news stories. These strains on our systems could cause customer
dissatisfaction and could discourage visitors from becoming paying subscribers. Our websites could experience disruptions or interruptions
in service due to the failure or delay in the transmission or receipt of information from us. These types of occurrences could
cause users to perceive our website and technology solutions as not functioning properly and cause them to use other methods or
services of our competitors. Any disruption resulting from these actions may harm our business and may be very expensive to remedy,
may not be fully covered by our insurance, could damage our reputation, and discourage new and existing users from using our products
and services. Any disruptions could increase costs and make profitability even more difficult to achieve.
We
will need to introduce new products and services and enhance existing products and services to remain competitive.
Our
future success depends in part on our ability to develop and enhance our products and services. In addition, the adoption of new
Internet, networking, or telecommunications technologies or other technological changes could require us to incur substantial
expenditures to enhance or adapt our services or infrastructure. There are significant technical and financial costs and risks
in the development of new or enhanced products and services, including the risk that we might be unable to effectively use new
technologies, adapt our services to emerging industry standards, or develop, introduce, and market enhanced or new products and
services. An inability to develop new products and services, or enhance existing offerings, could have a material adverse effect
on our profitability.
We
rely on external service providers to perform certain key functions.
We
rely on a number of external service providers for certain key technology, processing, service, and support functions. External
content providers provide us with financial information, market news, charts, option and stock quotes, research reports, and other
fundamental data that we offer to clients. These service providers face technological and operational risks of their own. Any
significant failures by them, including improper use or disclosure of our confidential client, employee, or company information,
could cause us to incur losses and could harm our reputation.
We
cannot assure that any external service providers will be able to continue to provide these services in an efficient, cost-effective
manner or that they will be able to adequately expand their services to meet our needs. An interruption in or the cessation of
service by any external service provider as a result of systems failures, capacity constraints, financial constraints or problems,
unanticipated trading market closures, or for any other reason, and our inability to make alternative arrangements in a smooth
and timely manner, if at all, could have a material adverse effect on our business, results of operations, and financial condition.
We
could face liability and other costs relating to storage and use of personal information about its users.
Users
provide us with personal information, including credit card information, which we do not share without the user’s consent.
Despite this policy of obtaining consent, however, if third persons were able to penetrate our network security or otherwise misappropriate
our users’ personal or credit card information, we could be subject to liability, including claims for unauthorized purchases
with credit card information, impersonation or other similar fraud claims, and misuses of personal information, such as for unauthorized
marketing purposes. New privacy legislation may further increase this type of liability. Furthermore, we could incur additional
expenses if additional regulations regarding the use of personal information were introduced or if federal or state agencies were
to investigate our privacy practices.
Our
business could be negatively affected if we are required to defend allegations of unfair competition and unfair false or deceptive
acts or practices in or affecting commerce.
Advertising
and marketing of our products in the United States are also subject to regulation by the Federal Trade Commission (“FTC”)
under the Federal Trade Commission Act, or FTC Act. Among other things, the FTC Act prohibits unfair methods of competition and
unfair false or deceptive acts or practices in or affecting commerce. The FTC Act also makes it illegal to disseminate or cause
to be disseminated any false advertisement. The FTC routinely reviews websites to identify questionable advertising claims and
practices. Competitors sometimes inform the FTC when they believe other competitors are violating the FTC Act and consumers also
notify the FTC of what they believe may be wrongful advertising. The FTC may initiate a nonpublic investigation that focuses on
our advertising claims, which usually involves nonpublic, pre-lawsuit, extensive formal discovery. Such an investigation may be
lengthy and expensive to defend and result in a publicly disclosed consent decree or settlement agreement. If no settlement can
be reached, the FTC may start an administrative proceeding or a federal court lawsuit against us or our principal officers. The
FTC often seeks to recover from the defendants, whether in a consent decree or a proceeding, any or all of the following: (i)
consumer redress in the form of monetary relief or disgorgement of profits; (ii) significant reporting requirements for several
years; and (iii) injunctive relief. In addition, most, if not all, states have statutes prohibiting deceptive and unfair acts
and practices. The requirements under these state statutes are similar to those of the FTC Act.
We
accept and hold cryptocurrencies, which may subject us to exchange risk and additional tax and regulatory requirements.
We
have recently begun accepting cryptocurrencies bitcoin and etherium as a form of payment. Cryptocurrencies are not considered
legal tender or backed by any government and have experienced significant price volatility, technological glitches, and various
law enforcement and regulatory interventions. If we fail to comply with regulations or prohibitions applicable to us, we could
face regulatory or other enforcement actions and potential fines and other consequences. We also hold cryptocurrencies directly,
subjecting us to exchange rate risk as well as the risk that regulatory or other developments and the recent price volatility
may adversely affect the value of the cryptocurrencies we hold. The uncertainties regarding legal and regulatory requirements
relating to cryptocurrencies or transactions using cryptocurrencies, as well as potential accounting and tax issues or other requirements
relating to cryptocurrencies, could have a material adverse effect on our business.
Our
business could be negatively affected if we are required to defend allegations that our direct selling activities are fraudulent
or deceptive schemes, are against public interest, or are the sale of unregistered securities.
Direct
selling activities are regulated by the FTC, as well as various federal, state, and local governmental agencies in the United
States and foreign countries. These laws and regulations are generally intended to prevent fraudulent or deceptive schemes, often
referred to as “pyramid” schemes, which compensate participants primarily for recruiting additional participants without
significant emphasis on product sales. Regulators may take the position that some or all of our products are deemed to be securities,
the sale of which has not been registered. The laws and regulations governing direct selling are modified from time to time, and
like other direct selling companies, we may be subject from time to time to government investigations related to our direct selling
activities. This may require us to make changes to our business model and our compensation plan.
Our
independent distributors could fail to comply with applicable legal requirements or our distributor policies and procedures, which
could result in claims against us that could harm our business.
Our
independent distributors are independent contractors and, accordingly, we are not in a position to directly provide the same oversight,
direction, and motivation as we could if they were our employees. As a result, we cannot assure that our independent distributors
will comply with applicable laws or regulations or our distributor policies and procedures.
Extensive
federal, state, local, and international laws regulate our business, products, and direct selling activities. Because we have
expanded into foreign countries, our policies and procedures for our independent distributors differ slightly in some countries
due to the different legal requirements of each country in which we do business.
Our
proprietary systems may be compromised by hackers.
Our
current products and other products and services that we may develop in the future will be based on proprietary software and customer-specific
data that we protect by routine measures such as password protection, confidentiality and nondisclosure agreements with employees,
and similar measures. Any unauthorized access to our software or data could materially disrupt our business and result in financial
loss and damages to our business reputation.
Our
future success is largely dependent on our current management.
Our
business was built by the vision, dedication, and expertise of our executive officers, who are responsible for our day-to-day
operations and creative development. Our success is dependent upon the continued efforts of these people. If it became necessary
to replace them, it is unlikely new management could be found that would have the same level of knowledge and dedication to our
success. The loss of the services of these professionals, especially in the development of future proprietary software, patents,
or applications, would adversely affect our business.
Risks
Related to this Offering and Ownership of the Units, Series B Preferred and the Warrants.
The
Series B Preferred ranks junior to all of our indebtedness and other liabilities
In
the event of our bankruptcy, liquidation, dissolution or winding-up of our affairs, our assets will be available to pay obligations
on the Series B Preferred only after all of our indebtedness and other liabilities have been paid. The rights of holders of the
Series B Preferred to participate in the distribution of our assets will rank junior to the prior claims of our current and future
creditors, existing preferred stock and Common Stock, and any future series or class of preferred stock we may issue that ranks
senior to the Series B Preferred. Also, the Series B Preferred effectively ranks junior to all our existing and future indebtedness
and to the indebtedness and other liabilities of our existing subsidiaries and any future subsidiaries. Our existing subsidiaries
are, and future subsidiaries would be, separate legal entities and have no legal obligation to pay any amounts to us in respect
of dividends due on the Series B Preferred. If we are forced to liquidate our assets to pay our creditors, we may not have sufficient
assets to pay amounts due on any or all of the Series B Preferred then outstanding. We may in the future incur debt and other
obligations that will rank senior to the Series B Preferred. At December 31, 2019, we had total liabilities of $17,465,617. Nevertheless,
the three years of dividends on the Series B Preferred, which total $9.75 per share of Series B Preferred, that will be paid by
the Company from the proceeds of the Offering into the Escrow Account, will not be the property of the Company but rather will
be for the sole benefit of the investors, payable to the investors on a monthly basis. As a result, these dividends will not,
in the ordinary course, be accessible to third-party creditors of the Company.
Additionally,
any convertible or exchangeable securities that we issue in the future may have rights, preferences and privileges more favorable
than those of the Series B Preferred and may result in dilution to owners of the Series B Preferred. We and, indirectly, our stockholders,
will bear the cost of issuing and servicing such securities. Because our decision to issue debt or equity securities in any future
Offering will depend on market conditions and other factors beyond our control, we cannot predict or estimate the amount, timing
or nature of our future Offerings. The holders of the Series B Preferred will bear the risk of our future Offerings, which may
reduce the market price of the Series B Preferred and will dilute the value of their holdings in us.
We
may not be able to declare and pay dividends on the Series B Preferred if we fail to comply with the conditions imposed by the
applicable Nevada law requirements.
Section
78.288 “Distributions to stockholders” of the Nevada Revised Statute provide that we may only declare and pay cash
dividends on the Series B Preferred if (a) the corporation would not be able to pay its debts as they become due in the usual
course of business; or (b) except as otherwise specifically allowed by the articles of incorporation, the corporation’s
total assets would be less than the sum of its total liabilities plus the amount that would be needed, if the corporation were
to be dissolved at the time of distribution, to satisfy the preferential rights upon dissolution of stockholders whose preferential
rights are superior to those receiving the distribution. There can be no assurance that we will satisfy such requirements in any
given year.
There
is no established market for the Units, the Series B Preferred or the Warrants, a market may never develop.
There
is no established trading market for the Units, the Series B Preferred or the Warrants and we do not know if a market will develop
on the OTCQB or, if it does, how active it will be or whether it will be sustained. Further, if in the future we believe we meet
the quantitative requirements for listing our Common Stock on Nasdaq, we intend to apply to have the Common Stock, the Units,
the Series B Preferred and the Warrants listed. We cannot assure you that we will meet the quantitative listing requirements or
that any application will be approved. The liquidity of the market for the Units, the Series B Preferred, and the Warrants depends
on a number of factors, including prevailing interest rates, our financial condition and operating results, the number of holders
of these securities, the market for similar securities and the interest of securities dealers in making a market in these securities.
The market for the Warrants will be linked to the price and the liquidity of our Common Stock. We cannot predict with certainty
the extent of investor interest in the Units, the Series B Preferred, and the Warrants, or how liquid that market will be. Without
an active trading market, the liquidity of these securities will be limited.
We
may issue additional shares of Series B Preferred and additional series of preferred stock that rank on parity with or senior
to the Series B Preferred as to dividend rights, rights upon liquidation or voting rights.
We
are allowed to issue additional shares of Series B Preferred and additional series of preferred stock that would rank on parity
with or junior to the Series B Preferred as to dividend payments and rights upon our liquidation, dissolution or winding up of
our affairs pursuant to our Certificate of Incorporation, including the Certificate of Designations relating to the Series B Preferred
without any vote of the holders of the Series B Preferred. Upon the affirmative vote of the holders of at least two-thirds of
the outstanding shares of Series B Preferred (voting together as a class with all other series of parity preferred stock we may
issue upon which like voting rights have been conferred and are exercisable), we are allowed to issue additional series of preferred
stock that would rank senior to the Series B Preferred as to dividend payments and rights upon our liquidation, dissolution or
the winding up pursuant to our Certificate of Incorporation and the Certificate of Designations relating to the Series B Preferred.
The issuance of additional shares of Series B Preferred and additional series of preferred stock could have the effect of reducing
the amounts available to the holders of Series B Preferred upon our liquidation or dissolution or the winding up of our affairs.
Also,
although holders of Series B Preferred are entitled to limited voting rights, as described in this prospectus under “Description
of the Series B Preferred - Voting Rights,” with respect to the circumstances under which the holders of Series B Preferred
are entitled to vote, the Series B Preferred votes separately as a class along with all other series of our preferred stock that
we may issue upon which like voting rights have been conferred and are exercisable. As a result, the voting rights of the holders
of Series B Preferred may be significantly diluted, and the holders of such other series of preferred stock that we may issue
may be able to control or significantly influence the outcome of any vote.
Future
issuances and sales of senior or parity preferred stock, or the perception that such issuances and sales could occur, may cause
prevailing market prices for the Series B Preferred and our Common Stock to decline and may adversely affect our ability to raise
additional capital in the financial markets at times and prices favorable to us.
Holders
of the Units may be unable to use the dividends-received deduction and may not be eligible for the preferential tax rates applicable
to “qualified dividend income.”
Dividends
paid to corporate U.S. holders of the Series B Preferred, which is being offered in this Offering as part of the Units, may be
eligible for the dividends-received deduction, and dividends paid to non-corporate U.S. holders of the Series B Preferred may
be subject to tax at the preferential tax rates applicable to “qualified dividend income,” if we have current or accumulated
earnings and profits, as determined for U.S. federal income tax purposes. We do not currently have accumulated earnings and profits.
Additionally, we may not have sufficient current earnings and profits during future fiscal years for the distributions on the
Series B Preferred to qualify as dividends for U.S. federal income tax purposes. If the distributions fail to qualify as dividends,
U.S. holders would be unable to use the dividends-received deduction and may not be eligible for the preferential tax rates applicable
to “qualified dividend income.” If any distributions on the Series B Preferred with respect to any fiscal year are
not eligible for the dividends-received deduction or preferential tax rates applicable to “qualified dividend income”
because of insufficient current or accumulated earnings and profits, the market value of the Units and the Series B Preferred
could decline.
If
we redeem the Series B Preferred, investors will no longer be entitled to dividends.
On
or after three years after the first sale of Series B Preferred in or 2023, we may, at our option, redeem the Series B Preferred,
in whole or in part, at any time or from time-to-time, based upon the payment of the Stated Value of $25 per share of Series B
Preferred plus accrued dividends. Also, upon the occurrence of a Change of Control (as defined below under “Description
of the Series B Preferred – Redemption”), we may, at our option, upon not less than 30 and nor more than 60 days’
written notice, redeem the Series B Preferred, in whole or in part, within 120 days after the date of such written notice. We
may have an incentive to redeem the Series B Preferred voluntarily if market conditions allow us to issue other preferred stock
or debt securities at a rate that is lower than the dividend on the Series B Preferred. If we redeem the Series B Preferred, then
from and after the redemption date, dividends will cease to accrue on the shares of Series B Preferred, that have been redeemed,
such shares of Series B Preferred shall no longer be deemed outstanding and all rights as a holder of those shares will terminate,
except the right to receive the redemption price plus accumulated and unpaid dividends, if any, payable upon redemption.
The
market price of the Units, the Series B Preferred and the Warrants could be substantially affected by various factors.
The
market price of the Units, the Series B Preferred and the Warrants could be subject to wide fluctuations in response to numerous
factors. The price of the Units and the Series B Preferred that will prevail in the market after this Offering may be higher or
lower than the Offering price depending on many factors, some of which are beyond our control and may not be directly related
to our operating performance.
These
factors include, but are not limited to, the following:
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prevailing
interest rates, increases in which may have an adverse effect on the market price of the Series B Preferred;
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trading
prices of similar securities;
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our
history of timely dividend payments;
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the
annual yield from dividends on the Series B Preferred as compared to yields on other financial instruments;
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general
economic and financial market conditions;
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government
action or regulation;
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the
financial condition, performance and prospects of us and our competitors;
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changes
in financial estimates or recommendations by securities analysts with respect to us or our competitors in our industry;
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our
issuance of additional equity or debt securities; and
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actual
or anticipated variations in quarterly operating results of us and our competitors.
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The
Warrants are likely to trade in the same manner as our Common Stock.
As
a result of these and other factors, investors who purchase the Units in this Offering may experience a decrease, which could
be substantial and rapid, in the market price of the Units, the Series B Preferred and the Warrants, including decreases unrelated
to our operating performance or prospects.
If
you purchase the Units, you will have no voting rights except for extremely limited voting rights for the Series B Preferred.
The
voting rights of a holder of Series B Preferred are limited. Our shares of Common Stock are the only classes of our securities
that carry full voting rights.
The
holders of Series B Preferred have no voting rights except with respect to voting on amendments to our Series B Preferred Certificate
of Designation that materially and adversely affect the rights of the holders of Series B Preferred or authorize, increase or
create additional classes or series of our capital stock that are senior to the Series B Preferred. Other than the limited circumstances
described in the Prospectus and except to the extent required by law, holders of Series B Preferred do not have any voting rights.
See “Description of the Series B Preferred—Voting Rights.”
The
Series B Preferred is not convertible into our common stock, investors will not benefit if the price of our common stock increases.
The
Series B Preferred is not convertible into our Common Stock and earns dividends at a fixed rate. Accordingly, an increase in market
price of our Common Stock will not necessarily result in an increase in the market price of our Series B Preferred. The market
value of the Series B Preferred may depend more on dividend and interest rates for other preferred stock, commercial paper and
other investment alternatives and our actual and perceived ability to pay dividends on, and in the event of dissolution satisfy
the liquidation preference with respect to, the Series B Preferred.
Management
will have broad discretion in using the proceeds of this Offering.
We
intend to use the net proceeds of this Offering (after putting the dividends for the initial three years into an escrow account)
to pay our indebtedness and thereafter for working capital and general corporate purposes to support our growth. We have not allocated
any specific portion of the net proceeds to any particular purpose, and our management will have the discretion to allocate the
proceeds as it determines. We will have significant flexibility and broad discretion in applying the net proceeds of this Offering.
Our management might not be able to yield a significant return, if any, on any investment of these net proceeds, and you will
not have the opportunity to influence our decisions on how to use our net proceeds from this Offering.
Risks
Relating to Our Common Stock
We
have a history of operating losses and expect to report future losses that may cause our stock price to decline.
We
have incurred net losses in each fiscal year since our inception, including net losses of $5,011,036 for the year ended March
31, 2019 and $14,913,016 for the year ended March 31, 2018, and a net loss of $8,587,449 for the nine months ended December 31,
2019. As of December 31, 2019, we had an accumulated deficit of approximately $33,684,432. We cannot be certain whether we will
ever be profitable, or if we do, that we will be able to continue to be profitable. Also, any economic weakness or global recession
may limit our ability to market our products. Any of these factors could cause our stock price to decline and result in our stockholders
losing a portion or all of their investments.
We
will need to raise additional capital. If we are unable to raise additional capital, our business may fail.
Because
our revenues are not yet sufficient to cover expenses or fund our growth, we need to secure ongoing funding. If we are unable
to obtain adequate additional financing, we may not be able to successfully market and sell our products, our business operations
will most likely be discontinued, and we will cease to be a going concern. To secure additional financing, we may need to borrow
money or sell more securities. Under these circumstances, we may be unable to secure additional financing on favorable terms or
at all. Selling additional stock, either privately or publicly, would dilute the equity interests of our stockholders. If we borrow
money, we will have to pay interest and may also have to agree to restrictions that limit our operating flexibility. If we are
unable to obtain adequate financing, we may have to curtail business operations, which would have a material negative effect on
operating results and most likely result in a lower stock price.
Our
common stock price has been and may continue to be extremely volatile.
Our
common stock has closed as low as $0.006 per share and as high as $.036 per share during the fiscal year preceding the date of
this prospectus. We believe this volatility may be caused, in part, by variations in our quarterly operating results, delays in
development of our technologies, changes in market valuations of similar companies, and the volume of our stock in the market.
Additionally,
in recent years the stock market in general, and the OTC Markets and technology stocks in particular, have experienced extreme
price and volume fluctuations. In some cases, these fluctuations are unrelated or disproportionate to the operating performance
of the underlying company. These market and industry factors may materially and adversely affect our stock price regardless of
our operating performance. The historical trading of our common stock is not necessarily an indicator of how it will trade in
the future and our trading price as of the date of this prospectus is not necessarily an indicator of what the trading price of
our common stock might be in the future.
In
the past, class action litigation has often been brought against companies following periods of volatility in the market price
of those companies’ common stock. If we become involved in this type of litigation in the future it could result in substantial
costs and diversion of management attention and resources, which could have a further negative effect on our stock price.
Shares
of our common stock may never become eligible for trading on Nasdaq or a national securities exchange.
We
cannot assure that we will ever be listed on the Nasdaq Stock Market or on another national securities exchange. Listing on one
of the Nasdaq markets or one of the national securities exchanges is subject to a variety of requirements, including minimum trading
price and minimum public “float” requirements. There are also continuing eligibility requirements for companies listed
on national securities exchanges. If we are unable to satisfy the initial or continuing eligibility requirements of any such market,
then our stock may not be listed or could be delisted. This could result in a lower trading price for our common stock and may
limit the ability of our stockholders to sell their shares, which could result in a loss of some or all of their investments.
If
we fail to file periodic reports with the U.S. Securities and Exchange Commission, our common stock will not be able to be traded
on the OTCQB.
Although
our common stock trades on the OTCQB, a regular trading market for our common stock may not be sustained in the future. OTC Markets
limits quotation on the OTCQB to securities of issuers that are current in their reports filed with the Securities and Exchange
Commission. If we fail to remain current in the filing of our reports with the Securities and Exchange Commission, our common
stock will not be able to be traded on the OTCQB. The OTCQB is an inter-dealer market that provides significantly less liquidity
than a national securities exchange or automated quotation system.
Because
we have no plans to pay dividends on our common stock, stockholders must look solely to appreciation of our common stock to realize
a gain on their investments.
We
do not anticipate paying any dividends on our common stock in the foreseeable future. We currently intend to retain future earnings,
if any, to finance the expansion of our business. Our future dividend policy is within the discretion of our board of directors
and will depend upon various factors, including our business, financial condition, results of operations, capital requirements,
and investment opportunities. Accordingly, stockholders must look solely to appreciation of our common stock to realize a gain
on their investment. This appreciation may not occur.
Certain
provisions of Nevada law and of our corporate charter may inhibit a potential acquisition of our Company, and this could depress
our stock price.
Nevada
corporate law includes provisions that could delay, defer, or prevent a change in control of our company or our management. These
provisions could discourage information contests and make it more difficult for our stockholders to elect directors and take other
corporate actions. As a result, these provisions could limit the price that investors are willing to pay in the future for shares
of our common stock. For example:
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(i)
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without
prior stockholder approval, our board of directors has the authority to issue one or more classes of preferred stock with
rights senior to those of our common stock and to determine the rights, privileges, and inference of that preferred stock;
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(ii)
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there
is no cumulative voting in the election of directors, which would otherwise allow less than a majority of stockholders to
elect director candidates; and
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(iii)
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stockholders
cannot call a special meeting of stockholders.
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Our
indemnification of our directors and officers may limit the rights of our stockholders.
While
our board of directors and officers are generally accountable to our stockholders and us, the liability of our directors and officers
to all parties is limited in certain respects under applicable state law and our articles of incorporation and bylaws, as in effect.
Further, we have agreed or may agree to indemnify our directors and officers against liabilities not attributable to certain limited
circumstances. This limitation of liability and indemnity may limit rights that our stockholders would otherwise have to seek
redress against our directors and officers.
Additional
issuances of stock options and warrants, convertible notes, and stock grants will cause additional substantial dilution to our
stockholders.
Given
our limited cash, liquidity, and revenues, it is likely that in the future, as in the past, we will issue additional warrants,
stock grants, and convertible debt to finance our future business operations and acquisitions and strategic relationships. The
issuance of additional shares of common stock, the exercise of warrants, and the conversion of debt to stock could cause additional
dilution to our stockholders and could have further adverse effects on the market price for our securities or on our ability to
obtain future financing. The 2018 increase in our authorized shares from two billion to ten billion increased the magnitude of
this risk substantially.
The
amount of authorized common stock may result in management implementing anti-takeover procedures by issuing new securities.
The
proportion of unissued authorized shares to issued shares could, under certain circumstances, have an anti-takeover effect, for
example, by permitting issuances that would dilute the stock ownership of a person seeking to effect a change in the composition
of our board of directors or contemplating a tender offer or other transaction for the combination of our company with another
entity. Although, we have no current plans to issue additional stock for this purpose, management could use the additional shares
that are now available or that may be available after a possible further recapitalization to resist or frustrate a third-party
transaction. Generally, no stockholder approval would be necessary for the issuance of all or any portion of the additional shares
of common stock unless required by law or any rules or regulations to which we are subject.
Depending
upon the consideration per share for any subsequent issuance of common stock, such issuance could have a dilutive effect on those
stockholders who paid a higher consideration per share for their stock. Also, future issuances of common stock will increase the
number of outstanding shares, thereby decreasing the percentage ownership—for voting, distributions, and all other purposes—represented
by existing shares of common stock. The availability for issuance of the additional shares of common stock may be viewed as having
the effect of discouraging an unsolicited attempt by another person or entity to acquire control of us. Although our board has
no present intention of doing so, our authorized but unissued common stock could be issued in one or more transactions that would
make a takeover of us more difficult or costly and, therefore, less likely. Holders of our common stock do not have any preemptive
rights to acquire any additional securities issued by us.
Our
stockholders may not recoup all or any portion of their investment upon our dissolution.
In
the event of a liquidation, dissolution, or winding-up of our company, whether voluntary or involuntary, our net remaining proceeds
and/or assets, after paying all of our debts and liabilities, will be distributed to the holders of common stock on a pro-rata
basis. We cannot assure that we will have available assets to pay to the holders of common stock any amounts upon such a liquidation,
dissolution, or winding-up of our company. In this event, our stockholders could lose some or all of their investment.
The
sale of any additional shares of our common stock to Triton may cause dilution, and the sale of the shares of common stock acquired
by Triton, or the perception that such sales may occur, could cause the price of our common stock to fall.
On
December 29, 2018, we entered into certain agreements with Triton Funds, which agreements were amended April 11, 2019. Under these
agreements we have the ability to require Triton to purchase up to $1.0 million of our common stock between the date that the
effective registration statement. Up to 100,000,000 shares of our common stock are being offered for resale under the respective
prospectus. The shares will be purchased at 85% of the lowest closing price of the common stock in the five consecutive trading
days immediately preceding the delivery of a purchase notice to Triton from us. The purchase of shares by Triton is subject to
certain limitations, including that Investor cannot purchase any shares that would result in it owning more than 4.9% of our common
stock.
After
Triton has acquired our shares, it may sell all, some, or none of those shares. Therefore, sales to Triton by us could result
in substantial dilution to the interests of other holders of our common stock. Additionally, the sale of a substantial number
of shares of our common stock to Triton, or the anticipation of such sales, could make it more difficult for us to sell equity
or equity-related securities in the future at a time and at a price that we might otherwise wish. In addition, the per-share purchase
price for these shares will be equal to 85% of the lowest closing price of the common stock for the five consecutive trading days
immediately preceding our delivery of a purchase notice to Investor. Depending on market liquidity at the time, sales of these
shares may cause the trading price of our common stock to fall. To date, Triton has purchased 39,215,648 shares of our common
stock for $325,000.
As
of June 27, 2019 the Company has ceased selling additional shares of our common stock to Triton by mutual agreement between the
Company and Triton.
There
is a limited market for our Common Stock, and there may never be an active and sustained market for our common stock and we cannot
assure you that the common stock will remain liquid or that it will continue to be listed on a securities exchange.
Our
Common Stock is subject to quotation on the OTCQB under the trading symbol “INVU”. An investor may find it difficult
to obtain accurate quotations as to the market value of the Common Stock and trading of our Common Stock may be extremely sporadic.
A more active market for the Common Stock may never develop. In addition, if we fail to meet the criteria set forth in SEC regulations,
various requirements would be imposed by law on broker-dealers who sell our securities to persons other than established customers
and accredited investors. Consequently, such regulations may deter broker-dealers from recommending or selling the Common Stock,
which may further affect its liquidity. This would also make it more difficult for us to raise additional capital.
Until
our Common Stock is listed on the NASDAQ or another stock exchange, we expect that our Common Stock will continue to be eligible
to trade on the OTCQB market where our stockholders may find it more difficult to dispose of shares or obtain accurate quotations
as to the market value of our Common Stock. Furthermore, in order to remain subject to quotation on the OTCQB, the trading price
of our Common Stock must maintain certain trading levels, which, in not maintained, could result in our Common Stock being relegated
to the OTC Pink. In such event, we will have to again qualify and make applications for quotation on the OTCQB, and there can
be no assurance that our Common Stock will be accepted for the OTCQB.
Our
Common stock is subject to the “Penny Stock” rules of the SEC and the trading market in our stock is limited, which
makes transactions in our stock cumbersome and may reduce the value of an investment.
The
Securities and Exchange Commission has adopted Rule 15g-9 which establishes the definition of a “penny stock,” for
the purposes relevant to us, as any equity security that has a market price of less than $5.00 per share or with an exercise price
of less than $5.00 per share, subject to certain exceptions. For any transaction involving a penny stock, unless exempt, the rules
require:
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That
a broker or dealer approve a person’s account for transactions in penny stocks; and
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The
broker or dealer receives from the investor a written agreement to the transaction, setting forth the identity and quantity
of the penny stock to be purchased.
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In
order to approve a person’s account for transactions in penny stocks, the broker or dealer must:
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Obtain
financial information and investment experience objectives of the person; and
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Make
a reasonable determination that the transactions in penny stocks are suitable for that person and the person has sufficient
knowledge and experience in financial matters to be capable of evaluating the risks of transactions in penny stocks.
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The
broker or dealer must also deliver, prior to any transaction in a penny stock, a disclosure schedule prescribed by the Commission
relating to the penny stock market, which, in highlight form:
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Sets
forth the basis on which the broker or dealer made the suitability determination; and
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That
the broker or dealer received a signed, written agreement from the investor prior to the transaction.
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Generally,
brokers may be less willing to execute transactions in securities subject to the “penny stock” rules. This may make
it more difficult for investors to dispose of our Common stock and cause a decline in the market value of our stock.
Disclosure
also must be made about the risks of investing in penny stocks in both public offerings and in secondary trading and about the
commissions payable to both the broker-dealer and the registered representative, current quotations for the securities and the
rights and remedies available to an investor in cases of fraud in penny stock transactions. Finally, monthly statements must be
sent disclosing recent price information for the penny stock held in the account and information on the limited market in penny
stocks.
Financial
Industry Regulatory Authority, Inc. (“FINRA”) sales practice requirements may limit a shareholder’s ability
to buy and sell our common stock.
In
addition to the “penny stock” rules described above, FINRA has adopted rules that require that in recommending an
investment to a customer, a broker-dealer must have reasonable grounds for believing that the investment is suitable for that
customer. Prior to recommending speculative low-priced securities to their non-institutional customers, broker-dealers must make
reasonable efforts to obtain information about the customer’s financial status, tax status, investment objectives and other
information. Under interpretations of these rules, FINRA believes that there is a high probability that speculative low-priced
securities will not be suitable for at least some customers. FINRA requirements make it more difficult for broker-dealers to recommend
that their customers buy our Common stock, which may limit your ability to buy and sell our stock and have an adverse effect on
the market for our shares.
Our
common stock may be thinly traded, sale of your holding may take a considerable amount of time.
The
shares of our Common Stock, from time-to-time, may be thinly-traded on the OTCQB Market, meaning that the number of persons interested
in purchasing our Common Stock at or near bid prices at any given time may be relatively small or non-existent. Consequently,
there may be periods of several days or more when trading activity in our shares is minimal or non-existent, as compared to a
seasoned issuer which has a large and steady volume of trading activity that will generally support continuous sales without an
adverse effect on share price. We cannot give you any assurance that a broader or more active public trading market for our Common
Stock will develop or be sustained, or that current trading levels will be sustained. Due to these conditions, we can give you
no assurance that you will be able to sell your shares at or near bid prices or at all if you need money or otherwise desire to
liquidate your shares.
Shares
eligible for future sale may adversely affect the market.
From
time to time, certain of our stockholders may be eligible to sell all or some of their shares of Common Stock by means of ordinary
brokerage transactions in the open market pursuant to Rule 144 promulgated under the Securities Act, subject to certain limitations.
In general, pursuant to amended Rule 144, non-affiliate stockholders may sell freely after six months subject only to the current
public information requirement. Affiliates may sell after six months subject to the Rule 144 volume, manner of sale (for equity
securities), current public information and notice requirements. To date, there were 121,345,168 shares reserved underlying outstanding
convertible notes, which represent a significant multiple of from 4 to 10 times the number of shares actually subject to conversion
under the terms of the outstanding convertible notes. Any substantial sales of our Common Stock pursuant to Rule 144 may have
a material adverse effect on the market price of our Common Stock.
If
we fail to maintain effective internal controls over financial reporting, the price of our common stock may be adversely affected.
Our
internal control over financial reporting may have weaknesses and conditions that could require correction or remediation, the
disclosure of which may have an adverse impact on the price of our Common Stock. We are required to establish and maintain appropriate
internal controls over financial reporting. Failure to establish those controls, or any failure of those controls once established,
could adversely affect our public disclosures regarding our business, prospects, financial condition or results of operations.
In addition, management’s assessment of internal controls over financial reporting may identify weaknesses and conditions
that need to be addressed in our internal controls over financial reporting or other matters that may raise concerns for investors.
Any actual or perceived weaknesses and conditions that need to be addressed in our internal control over financial reporting or
disclosure of management’s assessment of our internal controls over financial reporting may have an adverse impact on the
price of our Common Stock.
Our
annual and quarterly results may fluctuate, which may cause substantial fluctuations in our common stock price.
Our
annual and quarterly operating results may in the future fluctuate significantly depending on factors including the timing of
purchase orders, new product releases by us and other companies, gain or loss of significant customers, price discounting of our
product, the timing of expenditures, product delivery requirements and economic conditions. Revenues related to our product are
required to be recognized upon satisfaction of all applicable revenue recognition criteria. The recognition of revenues from our
product is dependent on several factors, including, but not limited to, the terms of any license agreement and the timing of implementation
of our products by our customers.
Any
unfavorable change in these or other factors could have a material adverse effect on our operating results for a particular quarter
or year, which may cause downward pressure on our Common stock price. We expect quarterly and annual fluctuations to continue
for the foreseeable future.
We
are subject to compliance with securities law, which exposes us to potential liabilities, including potential rescission rights.
We
have offered and sold our Common Stock to investors pursuant to certain exemptions from the registration requirements of the Securities
Act of 1933, as amended (the “Act”) as well as those of various state securities laws. The basis for relying on such
exemptions is factual; that is, the applicability of such exemptions depends upon our conduct and that of those persons contacting
prospective investors and making the Offering. We have not received a legal opinion to the effect that any of our prior Offerings
were exempt from registration under any federal or state law. Instead, we have relied upon the operative facts as the basis for
such exemptions, including information provided by investors themselves.
If
any prior offering did not qualify for such exemption, an investor would have the right to rescind its purchase of the securities
if it so desired. It is possible that if an investor should seek rescission, such investor would succeed. A comparable situation
prevails under state law in those states where the securities may be offered without registration in reliance on the partial preemption
from the registration or qualification provisions of such state statutes. If investors were successful in seeking rescission,
we would face severe financial demands that could adversely affect our business and operations. Additionally, if we did not in
fact qualify for the exemptions upon which it has relied, we may become subject to significant fines and penalties imposed by
the SEC and state securities agencies.
The
availability of a large number of authorized but unissued shares of common stock may, upon their issuance, lead to dilution of
existing stockholders.
We
are authorized to issue 10,000,000,000 shares of Common Stock, $0.001 par value per share. To date, there were 3,013,490,408 shares
of Common Stock outstanding. Additional shares may be issued upon the conversion of any outstanding convertible notes or convertible
notes issued in the future, or otherwise authorized for issuance by our board of directors, from time-to-time, without further
stockholder approval. The issuance of large numbers of shares of Common Stock, possibly at below market prices, is likely to result
in substantial dilution to the interests of other stockholders. In addition, issuances of large numbers of shares may adversely
affect the market price of our Common stock.
Our
Articles of Incorporation, as amended, authorize 50,000,000 shares of preferred stock, $0.001 par value. The Board of Directors
is authorized to provide for the issuance of unissued shares of preferred stock in one or more series, and to fix the number of
shares and to determine the rights, preferences and privileges thereof. Accordingly, the board of directors may issue preferred
stock which may convert into large numbers of shares of Common Stock and consequently lead to further dilution of other shareholders.
As
of the date of this prospectus, we had 2,000,000 authorized but unissued shares of Series B Preferred. The Series B Preferred
offered hereby will be fully paid and nonassessable. Our Board may, without the approval of holders of the Series B Preferred
or our Common Stock, designate additional series of authorized preferred stock ranking junior to or on parity with the Series
B Preferred and authorize the issuance of such shares. Designation of preferred stock ranking senior to the Series B Preferred
will require approval of the holders of Series B Preferred, as described below in “Voting Rights.”
We
have never paid cash dividends on our common stock and do not anticipate doing so in the foreseeable future.
We
have never declared or paid cash dividends on our Common Stock. We currently plan to retain any earnings to finance the growth
of our business rather than to pay cash dividends on our Common Stock. Nevertheless, we are required to pay cash dividends of
13% on our Series B Preferred, based upon the Stated Value of $25 per share. Payments of any cash dividends in the future, other
than on our shares of Series B Preferred, will depend on our financial condition, results of operations and capital requirements,
as well as other factors deemed relevant by our board of directors.
The
Nevada Revised Statute contains provisions that could discourage, delay or prevent a change in control of our company, prevent
attempts to replace or remove current management and reduce the market price of our stock.
Provisions
in our articles of incorporation and bylaws may discourage, delay or prevent a merger or acquisition that our stockholders may
consider favorable. For example, our certificate of incorporation authorizes our board of directors to issue up to ten million
shares of “blank check” preferred stock. As a result, without further stockholder approval, the board of directors
has the authority to attach special rights, including voting and dividend rights, to this preferred stock. With these rights,
preferred stockholders could make it more difficult for a third party to acquire us.
We
are also subject to the anti-takeover provisions of the NRS. Depending on the number of residents in the state of Nevada who own
our shares, we could be subject to the provisions of Sections 78.378 et seq. of the Nevada Revised Statutes which, unless otherwise
provided in the Company’s articles of incorporation or by-laws, restricts the ability of an acquiring person to obtain a
controlling interest of 20% or more of our voting shares. Our articles of incorporation and by-laws do not contain any provision
which would currently keep the change of control restrictions of Section 78.378 from applying to us.
We
are subject to the provisions of Sections 78.411 et seq. of the Nevada Revised Statutes. In general, this statute prohibits a
publicly held Nevada corporation from engaging in a “combination” with an “interested stockholder” for
a period of three years after the date of the transaction in which the person became an interested stockholder, unless the combination
or the transaction by which the person became an interested stockholder is approved by the corporation’s board of directors
before the person becomes an interested stockholder. After the expiration of the three-year period, the corporation may engage
in a combination with an interested stockholder under certain circumstances, including if the combination is approved by the board
of directors and/or stockholders in a prescribed manner, or if specified requirements are met regarding consideration. The term
“combination” includes mergers, asset sales and other transactions resulting in a financial benefit to the interested
stockholder. Subject to certain exceptions, an “interested stockholder” is a person who, together with affiliates
and associates, owns, or within three years did own, 10% or more of the corporation’s voting stock. A Nevada corporation
may “opt out” from the application of Section 78.411 et seq. through a provision in its articles of incorporation
or by-laws. We have not “opted out” from the application of this section.
Our
publicly filed reports are subject to review by the SEC, and any significant changes or amendments required as a result of any
such review may result in material liability to us and may have a material adverse impact on the trading price of the Company’s
common stock.
The
reports of publicly traded companies are subject to review by the SEC from time to time for the purpose of assisting companies
in complying with applicable disclosure requirements, and the SEC is required to undertake a comprehensive review of a company’s
reports at least once every three years under the Sarbanes-Oxley Act of 2002. SEC reviews may be initiated at any time. We could
be required to modify, amend or reformulate information contained in prior filings as a result of an SEC review. Any modification,
amendment or reformulation of information contained in such reports could be significant and result in material liability to us
and have a material adverse impact on the trading price of the Company’s Common Stock.
Use
of Proceeds
We
estimate that the net proceeds to us from the sale of all of the 2 million Units in this Offering will be approximately $45,500,000,
based on the public Unit Offering Price of $25 per Unit, after deducting our estimated Offering expenses, including placement
agent commissions of 9%, or approximately $4,500,000, assuming all of the Units are sold as a direct result of the selling
efforts and introductions of placement agents. We will immediately pay the Escrow Agent an amount equal to 39% of the gross
proceeds (or $9.75 per Unit), to be held by the Escrow Agent, which amount is equal to the dividends of 13% per annum of $3.25
per share of Series B Preferred, for a period of three years, for the purpose of ensuring a fund will be available to pay investors
the dividends of 13% during the first three years from the date of issuance on the shares of Series B Preferred.
We
plan to use the remaining net proceeds to pay our indebtedness of approximately $2,190,000 as of the date of this Prospectus and
any balance will be used for working capital and other general corporate purposes, which may include platform development, general
and administrative matters, and capital expenditures. We may also use a portion of the net proceeds for the acquisition of, or
investment in, technologies, solutions, or businesses that complement our business. As of the date of this prospectus, we do not
have any understandings to acquire any businesses. Because this is a best effort Offering with no minimum, we cannot predict how
much money we will ultimately raise. Our plan is to have an initial closing of the Offering after the sale of 200,000 Units, resulting
in gross proceeds of $5.0 million, in order to qualify for quotation of our Units, Series B Preferred and Warrants on the OTCQB.
We
anticipate an approximate allocation of the use of net proceeds assuming we raise 25%, 50%, 75% or 100% of the maximum offering
amount as follows:
|
|
25%
|
|
|
50%
|
|
|
75%
|
|
|
100%
|
|
|
%(1)(2)
|
|
Dividend Reserves (3 Years)
|
|
$
|
4,875,000
|
|
|
$
|
9,750,000
|
|
|
$
|
14,625,000
|
|
|
$
|
19,500,000
|
|
|
|
39
|
%
|
Repay existing indebtedness, including
interest thereon
|
|
$
|
2,190,000
|
|
|
$
|
2,190,000
|
|
|
$
|
2,190,000
|
|
|
$
|
2,190,000
|
|
|
|
5
|
%
|
Fund working capital and general corporate
purposes
|
|
$
|
4,085,000
|
|
|
$
|
10,460,000
|
|
|
$
|
16,385,000
|
|
|
$
|
33,210,000
|
|
|
|
56
|
%
|
Offering Expenses
|
|
$
|
100,000
|
|
|
$
|
100,000
|
|
|
$
|
100,000
|
|
|
$
|
100,000
|
|
|
|
0
|
%
|
Subtotal – net proceeds
|
|
$
|
11,150,000
|
|
|
$
|
22,400,000
|
|
|
$
|
33,650,000
|
|
|
$
|
44,900,000
|
|
|
|
90
|
%
|
Total – gross proceeds
|
|
$
|
12,500,000
|
|
|
$
|
25,000,000
|
|
|
$
|
37,500,000
|
|
|
$
|
50,000,000
|
|
|
|
100.00
|
%
|
Other
than as discussed above, we have not allocated any specific portion of the net proceeds to any particular purpose, and our management
will have broad discretion in the allocation of the net proceeds. Furthermore, the amount and timing of our actual expenditures
will depend on numerous factors, including the cash used in or generated by our operations, the level of our expected sales and
marketing activities and the attractiveness of any additional acquisitions or investments. Pending these uses, we intend to invest
the net proceeds that we receive from this Offering in short-term, investment-grade interest-bearing securities, such as money
market accounts, certificates of deposit, commercial paper, and guaranteed obligations of the U.S. government.
If
in the future we receive proceeds from the exercise of the Warrants, we expect such proceeds will be contributed to working capital
and will be used for general corporate purposes.
DIVIDEND
POLICY
We
have never declared or paid any cash dividends on our Common Stock or any other shares of capital stock. Except for the 13% dividends
payable to the holders of Series B Preferred from the Escrow Account on a monthly basis, equal to $3.25 per share on an annual
basis, we currently intend to retain any future earnings and do not expect to pay any dividends on any other securities, including
Common Stock for the foreseeable future. Any future determination to declare cash dividends (other than on the Series B Preferred)
will be made at the discretion of our Board, subject to applicable laws, and will depend on a number of factors, including our
financial condition, results of operations, capital requirements, contractual restrictions, general business conditions, and other
factors that our Board may deem relevant. Further Nevada law limits when we can pay dividends on our securities. Further our continuing
losses require us to use funds we receive in financings to meet our working capital needs. See “Description of Offered Securities
– Dividends.”
Capitalization
Set
forth below is our cash and capitalization as of December 31, 2019:
●
on an actual basis;
●
on a pro forma as adjusted basis, reflecting the issuance of 2,000,000 shares of Series B Preferred and 10,000,000 Warrants offered
by this prospectus, at $25 per share, assuming net proceeds of approximately $45,500,000 million, after deducting our estimated
Offering expenses payable by us.
You
should read the information in the below table together with our consolidated financial statements and related notes, and “Management’s
Discussion and Analysis of Financial Condition and Results of Operations,” each included elsewhere in this prospectus.
|
|
As
of December 31, 2019
|
|
|
|
Actual
|
|
|
Pro
Forma as Adjusted
|
|
|
|
|
|
|
|
|
Cash
|
|
|
263,600
|
|
|
|
25,763,600
|
|
Restricted cash
|
|
$
|
-
|
|
|
$
|
19,500,000
|
|
Total cash
|
|
$
|
263,500
|
|
|
$
|
45,263,600
|
|
|
|
|
|
|
|
|
|
|
Derivative liability
|
|
$
|
383,670
|
|
|
|
—
|
|
Total liabilities
|
|
|
17,465,617
|
|
|
|
17,465,619
|
|
|
|
|
|
|
|
|
|
|
Stockholders’ Equity (Deficit):
|
|
|
|
|
|
|
|
|
Preferred stock, Series B Preferred,
par value $0.001 per share; no shares authorized, issued and outstanding, actual; 2,000,000 shares issued and outstanding,
pro forma as adjusted;
|
|
|
-
|
|
|
|
2,000
|
|
Common stock, par value $0.001 per share; 10,000,000,000 shares
authorized; actual 3,003,490,408 shares issued and outstanding, as of 12-31-2019
|
|
|
3,003,490
|
|
|
|
3,003,490
|
|
Additional paid-in capital
|
|
|
24,618,312
|
|
|
|
69,116,312
|
|
Accumulated deficit
|
|
|
(33,684,432
|
)
|
|
|
(38,684,432
|
)
|
Total stockholders’ equity (deficit)
|
|
|
(6,059,200
|
)
|
|
|
33,937,370
|
|
Total liabilities
and stockholders’ equity (deficit)
|
|
$
|
11,406,417
|
|
|
|
51,402,989
|
|
The
table above is based on 3,003,490,408 shares of common stock outstanding as of December 31, 2019, and excludes, as of such date:
10,043,480
shares of our common stock issuable upon conversion of convertible debt, with a weighted-average exercise price of $0.023 per
share;
100,000,000
shares of common stock reserved for future issuance under our 2020 Equity Incentive Plan (the “2020 Plan”).
PART
I – FINANCIAL INFORMATION
ITEM
1 – FINANCIAL STATEMENTS
INVESTVIEW,
INC.
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
|
December 31,
|
|
|
March 31,
|
|
|
|
2019
|
|
|
2019
|
|
|
|
(Unaudited)
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
263,600
|
|
|
$
|
133,644
|
|
Prepaid assets
|
|
|
3,619,317
|
|
|
|
6,685,970
|
|
Receivables
|
|
|
623,203
|
|
|
|
724,995
|
|
Short-term advances
|
|
|
145,000
|
|
|
|
10,000
|
|
Short-term advances - related party
|
|
|
7,500
|
|
|
|
500
|
|
Other current assets
|
|
|
156,448
|
|
|
|
142,061
|
|
Total current assets
|
|
|
4,815,068
|
|
|
|
7,697,170
|
|
|
|
|
|
|
|
|
|
|
Fixed assets, net
|
|
|
3,864,341
|
|
|
|
13,528
|
|
|
|
|
|
|
|
|
|
|
Other assets:
|
|
|
|
|
|
|
|
|
Intangible assets, net
|
|
|
736,051
|
|
|
|
1,576,685
|
|
Long term license agreement, net
|
|
|
1,869,905
|
|
|
|
1,983,220
|
|
Operating lease right-of-use asset
|
|
|
112,564
|
|
|
|
-
|
|
Deposits
|
|
|
8,488
|
|
|
|
4,500
|
|
Total other assets
|
|
|
2,727,008
|
|
|
|
3,564,405
|
|
|
|
|
|
|
|
|
|
|
Total assets
|
|
$
|
11,406,417
|
|
|
$
|
11,275,103
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS’
EQUITY (DEFICIT)
|
|
|
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
|
|
|
Accounts payable and accrued liabilities
|
|
$
|
2,543,328
|
|
|
$
|
3,008,836
|
|
Payroll liabilities
|
|
|
23,575
|
|
|
|
888,177
|
|
Customer advance
|
|
|
607,205
|
|
|
|
265,000
|
|
Deferred revenue
|
|
|
731,578
|
|
|
|
1,876,727
|
|
Derivative liability
|
|
|
383,670
|
|
|
|
1,358,901
|
|
Operating lease liability, current
|
|
|
59,064
|
|
|
|
-
|
|
Other current liabilities
|
|
|
7,576,800
|
|
|
|
-
|
|
Related party payables, net of discounts
|
|
|
1,646,893
|
|
|
|
545,489
|
|
Debt, net of discounts
|
|
|
2,181,578
|
|
|
|
1,977,030
|
|
Total current liabilities
|
|
|
15,753,691
|
|
|
|
9,920,160
|
|
|
|
|
|
|
|
|
|
|
Operating lease liability, long term
|
|
|
59,333
|
|
|
|
-
|
|
Other long term liabilities, net
|
|
|
1,652,593
|
|
|
|
-
|
|
Total long term
liabilities
|
|
|
1,711,926
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
Total liabilities
|
|
|
17,465,617
|
|
|
|
9,920,160
|
|
|
|
|
|
|
|
|
|
|
Commitments and contingencies
|
|
|
-
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
Stockholders’ equity (deficit):
|
|
|
|
|
|
|
|
|
Preferred stock, par value: $0.001; 10,000,000 shares authorized,
none issued and outstanding as of December 31, 2019 and March 31, 2019
|
|
|
-
|
|
|
|
-
|
|
Common stock, par value $0.001; 10,000,000,000 shares authorized;
3,003,490,408 and 2,640,161,318 shares issued and outstanding as of December 31, 2019 and March 31, 2019, respectively
|
|
|
3,003,490
|
|
|
|
2,640,161
|
|
Additional paid in capital
|
|
|
24,618,312
|
|
|
|
23,758,917
|
|
Accumulated other comprehensive income
(loss)
|
|
|
3,430
|
|
|
|
1,363
|
|
Accumulated deficit
|
|
|
(33,684,432
|
)
|
|
|
(25,096,983
|
)
|
Total Investview
stockholders’ equity (deficit)
|
|
|
(6,059,200
|
)
|
|
|
1,303,458
|
|
Noncontrolling interest
|
|
|
-
|
|
|
|
51,485
|
|
Total stockholders
equity (deficit)
|
|
|
6,059,200
|
|
|
|
1,353,943
|
|
|
|
|
|
|
|
|
|
|
Total liabilities and stockholders’
equity (deficit)
|
|
$
|
11,406,417
|
|
|
$
|
11,275,103
|
|
The
accompanying notes are an integral part of these condensed consolidated financial statements
INVESTVIEW,
INC.
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS AND OTHER COMPREHENSIVE INCOME
(Unaudited)
|
|
Three
Months Ended December 31,
|
|
|
Nine
Months Ended December 31,
|
|
|
|
2019
|
|
|
2018
|
|
|
2019
|
|
|
2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Subscription revenue, net
of refunds, incentives, credits, and chargebacks
|
|
$
|
4,578,623
|
|
|
$
|
7,003,802
|
|
|
$
|
19,327,091
|
|
|
$
|
20,835,048
|
|
Equipment sales, net of refunds
|
|
|
-
|
|
|
|
694,954
|
|
|
|
-
|
|
|
|
694,954
|
|
Cryptocurrency mining service revenue,
net of refunds and amounts paid to supplier
|
|
|
-
|
|
|
|
34,278
|
|
|
|
-
|
|
|
|
1,812,601
|
|
Mining revenue
|
|
|
380,871
|
|
|
|
-
|
|
|
|
380,871
|
|
|
|
-
|
|
Fee revenue
|
|
|
4,117
|
|
|
|
-
|
|
|
|
9,486
|
|
|
|
-
|
|
Total revenue, net
|
|
|
4,963,611
|
|
|
|
7,733,034
|
|
|
|
19,717,448
|
|
|
|
23,342,603
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating costs and expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of sales and service
|
|
|
560,145
|
|
|
|
493,591
|
|
|
|
1,092,643
|
|
|
|
924,588
|
|
Commissions
|
|
|
1,605,925
|
|
|
|
5,087,053
|
|
|
|
10,822,072
|
|
|
|
17,316,319
|
|
Selling and marketing
|
|
|
575,199
|
|
|
|
109,265
|
|
|
|
1,389,666
|
|
|
|
634,671
|
|
Salary and related
|
|
|
1,721,970
|
|
|
|
1,059,660
|
|
|
|
5,433,416
|
|
|
|
3,075,862
|
|
Professional fees
|
|
|
474,287
|
|
|
|
284,586
|
|
|
|
1,130,070
|
|
|
|
1,355,182
|
|
General and administrative
|
|
|
1,765,381
|
|
|
|
940,767
|
|
|
|
4,487,137
|
|
|
|
2,921,073
|
|
Total operating
costs and expenses
|
|
|
6,702,907
|
|
|
|
7,974,922
|
|
|
|
24,355,004
|
|
|
|
26,227,695
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss from operations
|
|
|
(1,739,296
|
)
|
|
|
(241,888
|
)
|
|
|
(4,637,556
|
)
|
|
|
(2,885,092
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income (expense):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gain (loss) on debt extinguishment
|
|
|
443,907
|
|
|
|
-
|
|
|
|
1,725,384
|
|
|
|
19,387
|
|
Gain (loss) on fair value of derivative
liability
|
|
|
(94,622
|
)
|
|
|
-
|
|
|
|
504,635
|
|
|
|
-
|
|
Gain (loss) on bargain purchase
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
2,005,282
|
|
Gain (loss) on deconsolidation
|
|
|
-
|
|
|
|
-
|
|
|
|
53,739
|
|
|
|
-
|
|
Realized gain (loss) on cryptocurrency
|
|
|
10
|
|
|
|
(1,091
|
)
|
|
|
(657
|
)
|
|
|
16,363
|
|
Unrealized gain (loss) on cryptocurrency
|
|
|
(16,885
|
)
|
|
|
(116
|
)
|
|
|
8,445
|
|
|
|
95,810
|
|
Impairment expense
|
|
|
(627,452
|
)
|
|
|
-
|
|
|
|
(627,452
|
)
|
|
|
-
|
|
Interest expense
|
|
|
(1,427,433
|
)
|
|
|
(206,007
|
)
|
|
|
(3,918,070
|
)
|
|
|
(210,154
|
)
|
Interest expense, related parties
|
|
|
(367,190
|
)
|
|
|
-
|
|
|
|
(1,618,284
|
)
|
|
|
(5,000
|
)
|
Other income (expense)
|
|
|
3,231
|
|
|
|
(606
|
)
|
|
|
(68,053
|
)
|
|
|
(2,449
|
)
|
Total other income
(expense)
|
|
|
(2,086,434
|
)
|
|
|
(207,820
|
)
|
|
|
(3,940,313
|
)
|
|
|
1,919,239
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) before income taxes
|
|
|
(3,825,730
|
)
|
|
|
(449,708
|
)
|
|
|
(8,577,869
|
)
|
|
|
(965,853
|
)
|
Income tax expense
|
|
|
(2,198
|
)
|
|
|
(2,655
|
)
|
|
|
(9,580
|
)
|
|
|
(44,844
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
|
|
|
(3,827,928
|
)
|
|
|
(452,363
|
)
|
|
|
(8,587,449
|
)
|
|
|
(1,010,697
|
)
|
Less: net income (loss) attributable
to the noncontrolling interest
|
|
|
-
|
|
|
|
27,613
|
|
|
|
-
|
|
|
|
(5,399
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) attributable to Investview
stockholders
|
|
$
|
(3,827,928
|
)
|
|
$
|
(479,976
|
)
|
|
$
|
(8,587,449
|
)
|
|
$
|
(1,005,298
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) per common share, basic
and diluted
|
|
$
|
(0.00
|
)
|
|
$
|
(0.00
|
)
|
|
$
|
(0.00
|
)
|
|
$
|
(0.00
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average number of common shares
outstanding, basic and diluted
|
|
|
2,840,281,449
|
|
|
|
2,213,661,318
|
|
|
|
2,748,911,300
|
|
|
|
2,197,588,591
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other comprehensive income, net of tax:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign currency
translation adjustments
|
|
$
|
22,627
|
|
|
$
|
3,470
|
|
|
$
|
2,067
|
|
|
$
|
7,211
|
|
Total other comprehensive income
|
|
|
22,627
|
|
|
|
3,470
|
|
|
|
2,067
|
|
|
|
7,211
|
|
Comprehensive income (loss)
|
|
|
(3,805,301
|
)
|
|
|
(448,893
|
)
|
|
|
(8,585,382
|
)
|
|
|
(1,003,486
|
)
|
Less: comprehensive
income attributable to the noncontrolling interest
|
|
|
(22,627
|
)
|
|
|
(3,470
|
)
|
|
|
-
|
|
|
|
(7,211
|
)
|
Comprehensive income (loss) attributable
to Investview shareholders
|
|
$
|
(3,827,928
|
)
|
|
$
|
(452,363
|
)
|
|
$
|
(8,585,382
|
)
|
|
$
|
(1,010,697
|
)
|
The
accompanying notes are an integral part of these condensed consolidated financial statements
INVESTVIEW,
INC.
CONDENSED
CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY (DEFICIT)
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
Accumulated
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Additional
|
|
|
Other
|
|
|
|
|
|
|
|
|
|
|
|
|
Common
stock
|
|
|
Paid
in
|
|
|
Comprehensive
|
|
|
Accumulated
|
|
|
Noncontrolling
|
|
|
|
|
|
|
Shares
|
|
|
Amount
|
|
|
Capital
|
|
|
Income
|
|
|
Deficit
|
|
|
Interest
|
|
|
Total
|
|
Balance, March 31, 2018
|
|
|
2,169,661,318
|
|
|
$
|
2,169,661
|
|
|
$
|
16,137,945
|
|
|
$
|
(2,483
|
)
|
|
$
|
(20,085,947
|
)
|
|
$
|
18,544
|
|
|
$
|
(1,762,280
|
)
|
Foreign currency translation
adjustment
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
3,618
|
|
|
|
-
|
|
|
|
-
|
|
|
|
3,618
|
|
Net income (loss)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(1,375,113
|
)
|
|
|
(16,224
|
)
|
|
|
(1,391,337
|
)
|
Balance, June 30, 2018
|
|
|
2,169,661,318
|
|
|
|
2,169,661
|
|
|
|
16,137,945
|
|
|
|
1,135
|
|
|
|
(21,461,060
|
)
|
|
|
2,320
|
|
|
|
(3,149,999
|
)
|
Common stock issued
for acquisition
|
|
|
50,000,000
|
|
|
|
50,000
|
|
|
|
1,050,000
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
1,100,000
|
|
Common stock issued
for services and compensation
|
|
|
1,000,000
|
|
|
|
1,000
|
|
|
|
9,000
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
10,000
|
|
Common stock repurchase
|
|
|
(7,000,000
|
)
|
|
|
(7,000
|
)
|
|
|
(84,000
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(91,000
|
)
|
Foreign currency translation
adjustment
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
123
|
|
|
|
-
|
|
|
|
-
|
|
|
|
123
|
|
Net income (loss)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
849,791
|
|
|
|
(16,788
|
)
|
|
|
833,003
|
|
Balance, September 30, 2018
|
|
|
2,213,661,318
|
|
|
|
2,213,661
|
|
|
|
17,112,945
|
|
|
|
1,258
|
|
|
|
(20,611,269
|
)
|
|
|
(14,468
|
)
|
|
|
(1,297,873
|
)
|
Foreign currency translation
adjustment
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
3,470
|
|
|
|
-
|
|
|
|
-
|
|
|
|
3,470
|
|
Net income (loss)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(479,976
|
)
|
|
|
27,613
|
|
|
|
(452,363
|
)
|
Balance, December 31, 2018
|
|
|
2,213,661,318
|
|
|
$
|
2,213,661
|
|
|
$
|
17,112,945
|
|
|
$
|
4,728
|
|
|
$
|
(21,091,245
|
)
|
|
$
|
13,145
|
|
|
$
|
(1,746,766
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance, March 31, 2019
|
|
|
2,640,161,318
|
|
|
$
|
2,640,161
|
|
|
$
|
23,758,917
|
|
|
$
|
1,363
|
|
|
$
|
(25,096,983
|
)
|
|
$
|
51,485
|
|
|
$
|
1,354,943
|
|
Common stock issued
for cash
|
|
|
39,215,648
|
|
|
|
39,216
|
|
|
|
285,784
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
325,000
|
|
Offering costs
|
|
|
-
|
|
|
|
-
|
|
|
|
101,387
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
101,387
|
|
Deconsolidation of Kuvera
LATAM
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(51,485
|
)
|
|
|
(51,485
|
)
|
Foreign currency translation
adjustment
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(18,975
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
(18,975
|
)
|
Net income (loss)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(3,005,955
|
)
|
|
|
-
|
|
|
|
(3,005,955
|
)
|
Balance, June 30, 2019
|
|
|
2,679,376,966
|
|
|
|
2,679,377
|
|
|
|
24,146,088
|
|
|
|
(17,612
|
)
|
|
|
(28,102,938
|
)
|
|
|
-
|
|
|
|
(1,295,085
|
)
|
Common stock issued
for cash
|
|
|
13,000,000
|
|
|
|
13,000
|
|
|
|
312,000
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
325,000
|
|
Common stock issued
for services and compensation
|
|
|
241,000,000
|
|
|
|
241,000
|
|
|
|
1,274,915
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
1,515,915
|
|
Common stock repurchase
|
|
|
(5,150
|
)
|
|
|
(5
|
)
|
|
|
(97
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(102
|
)
|
Common stock cancelled
|
|
|
(222,500,000
|
)
|
|
|
(222,500
|
)
|
|
|
(3,157,500
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(3,380,000
|
)
|
Beneficial conversion
feature
|
|
|
-
|
|
|
|
-
|
|
|
|
1,000,000
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
1,000,000
|
|
Foreign currency translation
adjustment
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(1,585
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
(1,585
|
)
|
Net income (loss)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(1,753,566
|
)
|
|
|
-
|
|
|
|
(1,753,566
|
)
|
Balance, September 30, 2019
|
|
|
2,710,871,816
|
|
|
|
2,710,872
|
|
|
|
23,575,406
|
|
|
|
(19,197
|
)
|
|
|
(29,856,504
|
)
|
|
|
-
|
|
|
|
(3,589,423
|
)
|
Common stock issued
for cash
|
|
|
7,000,000
|
|
|
|
7,000
|
|
|
|
168,000
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
175,000
|
|
Common stock issued
for services and compensation
|
|
|
285,618,592
|
|
|
|
285,618
|
|
|
|
874,906
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
1,160,524
|
|
Foreign currency translation
adjustment
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
22,627
|
|
|
|
-
|
|
|
|
-
|
|
|
|
22,627
|
|
Net income (loss)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(3,827,928
|
)
|
|
|
-
|
|
|
|
(3,827,928
|
)
|
Balance, December 31, 2019
|
|
|
3,003,490,408
|
|
|
$
|
3,003,490
|
|
|
$
|
24,618,312
|
|
|
$
|
3,430
|
|
|
$
|
(33,684,432
|
)
|
|
$
|
-
|
|
|
$
|
(6,059,200
|
)
|
The
accompanying notes are an integral part of these condensed consolidated financial statements
INVESTVIEW
INC.
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
|
|
Nine
Months Ended December 31,
|
|
|
|
2019
|
|
|
2018
|
|
CASH FLOWS FROM OPERATING ACTIVITIES:
|
|
|
|
|
|
|
|
|
Net loss
|
|
$
|
(8,587,449
|
)
|
|
$
|
(1,010,697
|
)
|
Adjustments to reconcile net loss to
net cash provided by (used in) operating activities:
|
|
|
|
|
|
|
|
|
Depreciation
|
|
|
320,528
|
|
|
|
4,126
|
|
Amortization of debt discount
|
|
|
2,916,917
|
|
|
|
161,154
|
|
Amortization of long-term license agreement
|
|
|
113,315
|
|
|
|
113,315
|
|
Amortization of intangible assets
|
|
|
213,182
|
|
|
|
256,509
|
|
Stock issued for services and compensation
|
|
|
2,676,439
|
|
|
|
8,333
|
|
Loan fees on new borrowings
|
|
|
841,139
|
|
|
|
-
|
|
Lease cost, net of repayment
|
|
|
5,833
|
|
|
|
-
|
|
Impairment
|
|
|
627,452
|
|
|
|
-
|
|
(Gain) loss on bargain purchase
|
|
|
-
|
|
|
|
(2,005,282
|
)
|
(Gain) loss on deconsolidation
|
|
|
(53,739
|
)
|
|
|
-
|
|
(Gain) loss on debt extinguishment
|
|
|
(1,725,384
|
)
|
|
|
(19,387
|
)
|
(Gain) loss on fair value of derivative
liability
|
|
|
(504,635
|
)
|
|
|
-
|
|
Realized (gain) loss on cryptocurrency
|
|
|
657
|
|
|
|
(16,363
|
)
|
Unrealized (gain) loss on cryptocurrency
|
|
|
(8,445
|
)
|
|
|
(95,810
|
)
|
Changes in operating assets and liabilities:
|
|
|
|
|
|
|
|
|
Receivables
|
|
|
101,792
|
|
|
|
316,455
|
|
Prepaid assets
|
|
|
(313,347
|
)
|
|
|
(4,762
|
)
|
Short-term advances
|
|
|
(135,000
|
)
|
|
|
-
|
|
Short-term advances from related parties
|
|
|
(7,000
|
)
|
|
|
36,010
|
|
Other current assets
|
|
|
40,170
|
|
|
|
585,158
|
|
Deposits
|
|
|
(3,988
|
)
|
|
|
(11,603
|
)
|
Accounts payable and accrued liabilities
|
|
|
(284,836
|
)
|
|
|
(1,375,229
|
)
|
Payroll liabilities
|
|
|
(864,602
|
)
|
|
|
-
|
|
Customer advance
|
|
|
342,205
|
|
|
|
265,000
|
|
Deferred revenue
|
|
|
(1,145,149
|
)
|
|
|
181,255
|
|
Other liabilities
|
|
|
9,229,393
|
|
|
|
-
|
|
Accrued interest
|
|
|
180,026
|
|
|
|
26,000
|
|
Accrued interest, related parties
|
|
|
714,999
|
|
|
|
5,000
|
|
Net cash provided
by (used in) operating activities
|
|
|
4,690,473
|
|
|
|
(2,580,818
|
)
|
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM INVESTING ACTIVITIES:
|
|
|
|
|
|
|
|
|
Cash received in acquisition
|
|
|
-
|
|
|
|
3,740
|
|
Cash paid for fixed assets
|
|
|
(4,171,341
|
)
|
|
|
-
|
|
Net cash provided
by (used in) investing activities
|
|
|
(4,171,341
|
)
|
|
|
3,740
|
|
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM FINANCING ACTIVITIES:
|
|
|
|
|
|
|
|
|
Proceeds from related parties
|
|
|
2,164,500
|
|
|
|
1,480,777
|
|
Repayments for related party payables
|
|
|
(1,754,500
|
)
|
|
|
(996,169
|
)
|
Proceeds from debt
|
|
|
2,177,452
|
|
|
|
1,955,000
|
|
Repayments for debt
|
|
|
(3,801,562
|
)
|
|
|
(1,164,396
|
)
|
Payments for share repurchase
|
|
|
(102
|
)
|
|
|
(91,000
|
)
|
Proceeds from the sale of stock
|
|
|
825,000
|
|
|
|
-
|
|
Net cash provided
by (used in) financing activities
|
|
|
(389,212
|
)
|
|
|
1,184,212
|
|
|
|
|
|
|
|
|
|
|
Effect of exchange rate translation
on cash
|
|
|
36
|
|
|
|
(4,251
|
)
|
|
|
|
|
|
|
|
|
|
Net increase (decrease) in cash and
cash equivalents
|
|
|
129,956
|
|
|
|
(1,397,117
|
)
|
Cash and cash equivalents-beginning
of period
|
|
|
133,644
|
|
|
|
1,490,686
|
|
Cash and cash equivalents-end of period
|
|
$
|
263,600
|
|
|
$
|
93,569
|
|
|
|
|
|
|
|
|
|
|
SUPPLEMENTAL DISCLOSURES OF CASH FLOW
INFORMATION
|
|
|
|
|
|
|
|
|
Cash paid during the period for:
|
|
|
|
|
|
|
|
|
Interest
|
|
$
|
51,000
|
|
|
$
|
-
|
|
Income taxes
|
|
$
|
9,580
|
|
|
$
|
44,844
|
|
Non cash investing and financing activities:
|
|
|
|
|
|
|
|
|
Common stock issued for acquisition
|
|
$
|
-
|
|
|
$
|
1,100,000
|
|
Beneficial conversion feature
|
|
$
|
1,000,000
|
|
|
$
|
-
|
|
Stock issued for prepaid services
|
|
$
|
-
|
|
|
$
|
1,667
|
|
Cancellation of shares
|
|
$
|
3,380,000
|
|
|
$
|
-
|
|
Changes in equity for offering costs
accrued
|
|
$
|
101,387
|
|
|
$
|
-
|
|
Accounts payable reclassified to related
party debt
|
|
$
|
75,000
|
|
|
$
|
-
|
|
Derivative liability recorded as a debt
discount
|
|
$
|
365,000
|
|
|
$
|
-
|
|
Recognition of lease liability and ROU
asset at lease commencement
|
|
$
|
131,244
|
|
|
$
|
-
|
|
The
accompanying notes are an integral part of these condensed consolidated financial statements
INVESTVIEW,
INC.
NOTES
TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
AS
OF DECEMBER 31, 2019
(Unaudited)
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. 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, 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.
On
November 12, 2018, we established Kuvera France, S.A.S. to handle sales of our financial education and research in the European
Union.
On
December 30, 2018, our wholly owned subsidiary S.A.F.E. Management, LLC received its registration and disclosure approval from
the National Futures Association. S.A.F.E. Management, LLC is now a New Jersey State Registered Investment Adviser, Commodities
Trading Advisor, Commodity Pool Operator, and approved for over the counter FOREX advisory services.
On
January 17, 2019 we renamed our non-operating wholly owned subsidiary WealthGen Global, LLC to SafeTek, LLC, a Utah Limited Liability
Company.
Effective
July 22, 2019 we renamed our non-operating wholly owned subsidiary Razor Data, LLC to APEX Tek, LLC, a Utah Limited Liability
Company.
Nature
of Business
Investview
owns a number of companies that each operate independently but are accretive to one another. Investview is establishing a portfolio
of wholly owned subsidiaries delivering leading edge technologies, services and research, dedicated primarily to the individual
consumer. Following is a description of each of our companies.
Kuvera,
LLC provides 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 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.
INVESTVIEW,
INC.
NOTES
TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
AS
OF DECEMBER 31, 2019
(Unaudited)
Kuvera
France S.A.S. is our entity in France that will distribute Kuvera products and services throughout the European Union.
S.A.F.E.
Management, LLC is a Registered Investment Adviser and Commodity Trading Adviser that has been established to deliver automated
trading strategies to individuals who find they lack the time to trade for themselves.
United
League, LLC owns a number of proprietary technologies including FIREFAN a social app for sports enthusiasts. Technologies
created to support any of the Investview companies are held under the United League structure.
United
Games, LLC is the distribution network for United League technologies. Since the acquisition of United Games in July of 2018,
we are working to combine the distributors of Kuvera and United Games. This is an on-going process that is not yet complete.
SAFETek,
LLC (formerly WealthGen Global, LLC) is a new addition that we are currently establishing for expansion plans in the high-speed
processing and cloud computing environment.
Apex
Tek, LLC (formerly Razor Data, LLC) is the sales and distribution company for APEX packages and technology. It offers a unique
passive income model for those interested in earning through the purchase and leaseback of high-speed specialized data processing
equipment. This model has drawn considerable institutional interest.
Investment
Tools & Training, LLC currently has no operations or activities.
NOTE
2 – 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 nine months ended December 31, 2019, are not necessarily
indicative of the operating results that may be expected for the year ending March 31, 2020. These unaudited condensed consolidated
financial statements should be read in conjunction with the March 31, 2019 consolidated financial statements and notes thereto
included in our Annual Report on Form 10-K for the year ended March 31, 2019.
Principles
of Consolidation
The
consolidated financial statements include the accounts of Investview, Inc., and our wholly owned subsidiaries, Kuvera, LLC, Investment
Tools & Training, LLC, Apex Tek, LLC (formerly Razor Data, LLC), S.A.F.E. Management, LLC, SafeTek, LLC (formerly WealthGen
Global, LLC), United Games, LLC, United League, LLC, and Kuvera France S.A.S. Through March 31, 2019 we had determined that one
affiliated entity, Kuvera LATAM S.A.S., which we previously conducted business with, was a variable interest entity and we were
the primary beneficiary of the entity’s activities, which are similar to those of Kuvera, LLC. As a result, through March
31, 2019 we had consolidated the accounts of this variable interest entity into the accompanying consolidated financial statements.
Further, because the Company did not have any ownership interest in this variable interest entity, the Company had allocated the
contributed capital in the variable interest entity as a component of noncontrolling interest. As of April 1, 2019 Kuvera LATAM
S.A.S. had no operations and ceased to exist, therefore, as of that date, no consolidation of the entity is necessary and we recorded
a gain on deconsolidation of $53,739 to eliminate the intercompany account with Kuvera LATAM S.A.S. 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.
INVESTVIEW,
INC.
NOTES
TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
AS
OF DECEMBER 31, 2019
(Unaudited)
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 France S.A.S. into our consolidated financial statements and have consolidated the accounts
of Kuvera LATAM S.A.S. through March 31, 2019. The operations of Kuvera France S.A.S. are conducted in France and its functional
currency is the Euro. The operations of Kuvera LATAM S.A.S. were conducted in Colombia and its functional currency is the Colombian
Peso.
The
financial statements of Kuvera France S.A.S. and Kuvera LATAM S.A.S. are prepared using their respective functional currency 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 France S.A.S. and Kuvera LATAM S.A.S. into USD at the following
balance sheet dates.
|
|
December
31, 2019
|
|
|
March
31, 2019
|
|
Euro to USD
|
|
|
1.12165
|
|
|
|
1.12200
|
|
Colombian Peso to USD
|
|
|
n/a
|
|
|
|
0.00031
|
|
The
following rates were used to translate the accounts of Kuvera France S.A.S. and Kuvera LATAM S.A.S. into USD for the following
operating periods.
|
|
Nine
Months Ended December 31,
|
|
|
|
2019
|
|
|
2018
|
|
Euro to USD
|
|
|
1.11443
|
|
|
|
n/a
|
|
Colombian Peso to USD
|
|
|
n/a
|
|
|
|
0.00034
|
|
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 December 31, 2019 and March 31, 2019 the fair
value of our cryptocurrencies was $156,448 and $142,061, respectively. During the nine months ended December 31, 2019 we recorded
$(657) and $8,445 as a total realized and unrealized gain (loss) on cryptocurrency, respectively. During the nine months ended
December 31, 2018 we recorded $16,363 and $95,810 as a total realized and unrealized gain (loss) on cryptocurrency, respectively.
During the three months ended December 31, 2019 we recorded $10 and $(16,885) as a total realized and unrealized gain (loss) on
cryptocurrency, respectively. During the three months ended December 31, 2018 we recorded $10 and $(16,885) as a total realized
and unrealized gain (loss) on cryptocurrency, respectively.
Fixed
Assets
Fixed
assets are stated at cost and depreciated using the straight-line method over their estimated useful lives. When retired or otherwise
disposed, the carrying value and accumulated depreciation of the fixed asset is removed from its respective accounts and the net
difference less any amount realized from disposition is reflected in earnings. Expenditures for maintenance and repairs which
do not extend the useful lives of the related assets are expensed as incurred.
INVESTVIEW,
INC.
NOTES
TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
AS
OF DECEMBER 31, 2019
(Unaudited)
As
of December 31, 2019 fixed assets were made up of the following:
|
|
Estimated
|
|
|
|
|
|
|
Useful
|
|
|
|
|
|
|
Life
|
|
|
|
|
|
|
(years)
|
|
|
Value
|
|
Furniture, fixtures, and
equipment
|
|
|
10
|
|
|
$
|
11,372
|
|
Computer equipment
|
|
|
3
|
|
|
|
19,533
|
|
Data processing
equipment
|
|
|
3
|
|
|
|
4,166,470
|
|
|
|
|
|
|
|
|
4,197,375
|
|
Accumulated amortization as of
December 31, 2019
|
|
|
|
|
|
|
(333,034
|
)
|
Net book value, December 31, 2019
|
|
|
|
|
|
$
|
3,864,341
|
|
Total
depreciation expense for the nine months ended December 31, 2019 and 2018, was $320,528 and $4,126, respectively.
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 nine months ended December 31, 2019
and 2018 was $113,315 and $113,315, respectively, and the long-term license agreement was recorded at a net value of $1,869,905
and $1,983,220 as of December 31, 2019 and March 31, 2019, respectively.
In
June of 2018 we purchased United Games, LLC and United League, LLC and recorded the transaction as a business combination. Intangible
assets acquired in the business combination were recorded at fair value on the date of acquisition and are being amortized on
a straight-line method over their estimated useful lives. During the nine months ended December 31, 2019 we impaired the value
of the customer contracts/relationships originally acquired.
|
|
Estimated
|
|
|
|
|
|
|
Useful
|
|
|
|
|
|
|
Life
|
|
|
|
|
|
|
(years)
|
|
|
Value
|
|
FireFan mobile application
|
|
|
4
|
|
|
$
|
331,000
|
|
Back office software
|
|
|
10
|
|
|
|
408,000
|
|
Tradename/trademark - FireFan
|
|
|
5
|
|
|
|
248,000
|
|
Tradename/trademark - United Games
|
|
|
0.45
|
|
|
|
4,000
|
|
Customer contracts/relationships
|
|
|
n/a
|
|
|
|
-
|
|
|
|
|
|
|
|
|
991,000
|
|
Accumulated amortization as of
December 31, 2019
|
|
|
|
|
|
|
(254,949
|
)
|
Net book value, December 31, 2019
|
|
|
|
|
|
$
|
736,051
|
|
INVESTVIEW,
INC.
NOTES
TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
AS
OF DECEMBER 31, 2019
(Unaudited)
Amortization
expense is expected to be as follows:
Remainder of 2020
|
|
$
|
43,169
|
|
Fiscal year ending March 31, 2021
|
|
|
173,150
|
|
Fiscal year ending March 31, 2022
|
|
|
173,150
|
|
Fiscal year ending March 31, 2023
|
|
|
115,338
|
|
Fiscal year ending March 31, 2024
|
|
|
55,748
|
|
Fiscal year
ending March 31, 2025 and beyond
|
|
|
175,496
|
|
|
|
$
|
736,051
|
|
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 nine months ended December 31, 2019 and 2018 impairment of $627,452 and $0 was recognized, respectively.
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 December 31, 2019 and March 31, 2019, approximates the fair value due to their
short-term nature.
Items
recorded or measured at fair value on a recurring basis in the accompanying consolidated financial statements consisted of the
following items as of December 31, 2019:
|
|
Level
1
|
|
|
Level
2
|
|
|
Level
3
|
|
|
Total
|
|
Cryptocurrencies
|
|
$
|
156,448
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
156,448
|
|
Total Assets
|
|
$
|
156,448
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
156,448
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Derivative liability
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
383,670
|
|
|
$
|
383,670
|
|
Total Liabilities
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
383,670
|
|
|
$
|
383,670
|
|
INVESTVIEW,
INC.
NOTES
TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
AS
OF DECEMBER 31, 2019
(Unaudited)
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, 2019:
|
|
Level
1
|
|
|
Level
2
|
|
|
Level
3
|
|
|
Total
|
|
Cryptocurrencies
|
|
$
|
142,061
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
142,061
|
|
Total Assets
|
|
$
|
142,061
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
142,061
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Derivative liability
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
1,358,901
|
|
|
$
|
1,358,901
|
|
Total Liabilities
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
1,358,901
|
|
|
$
|
1,358,901
|
|
Sale
and Leaseback
Through
our wholly-owned subsidiary, APEX Tex, LLC, we sell high powered data processing equipment (“APEX”) to our customers
and they lease the equipment back to SAFETek, LLC, another of our wholly-owned subsidiaries. We account for these transactions
under ASC 842-40 where the leaseback has been deemed a sales-type lease due to the lease term generally covering the entire economic
life of the equipment and our likelihood to purchase the asset at the end of the lease term. In accordance with ASC 842-40 we
have recorded the data processing equipment as a fixed asset on our balance sheet and we have accounted for the amounts received
for the equipment as a financial liability, in other liabilities on our balance sheet. Further, we will recognize interest on
the financial liability over the term of the lease to ensure the financial liability equates to the total amounts to be paid over
the life of the lease.
During
the nine months ended December 31, 2019 we had the following activity related to our sale and leaseback transactions:
Proceeds from sales of APEX
|
|
$
|
9,693,141
|
|
Interest recognized on financial liability
|
|
|
877,352
|
|
Payments made
for leased equipment
|
|
|
(1,341,100
|
)
|
Total financial liability
|
|
|
9,229,393
|
|
Other current
liabilities [1]
|
|
|
(7,576,800
|
)
|
Other long-term
liabilities
|
|
$
|
1,652,593
|
|
[1]
Represents lease payments to be made in the next 12 months
As
of December 31, 2019, we have received proceeds of $607,205 in additional deposits for APEX sales, which has been recorded in
the customer advance amount shown on our balance sheet.
Revenue
Recognition
Subscription
Revenue
The
majority of our revenue is generated by subscription sales and payment is received at the time of purchase. We recognize subscription
revenue in accordance with ASC 606-10 where revenue is measured based on a consideration specified in a contract with a customer
and recognized when we satisfy the performance obligation specified in each contract. Our performance obligation is to provide
services over a fixed subscription period, therefore we recognize revenue ratably over the subscription period and deferred revenue
is recorded for the portion of the subscription period subsequent to each reporting date. Additionally, we offer a 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.
INVESTVIEW,
INC.
NOTES
TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
AS
OF DECEMBER 31, 2019
(Unaudited)
Equipment
Sales
We
generate revenue from the sale of high-speed computer processing equipment that is used for any of the following intense processing
activities: protein folding, CGI rendering, Game Streaming, Machine & Deep Learning, Mining, Independent Financial Verification,
and general high-speed computing. We recognize equipment sales revenue in accordance with ASC 606-10 where revenue is measured
based on a consideration specified in a contract with a customer and recognized when we satisfy the performance obligation specified
in each contract. Our performance obligation is to deliver an equipment package to our customers which includes hardware, software,
and firmware and is drop-shipped to a hosting data center. We receive payment at the time of purchase and recognize revenue when
the equipment package is delivered and ready for maintenance and hosting, which our customers arrange for, and obtain, from a
separate third party that provides such services.
Cryptocurrency
Mining Service Revenue
We
generate revenue from the sale of cryptocurrency mining services to our customers through an arrangement with a third-party supplier.
We recognize cryptocurrency mining service revenue in accordance with ASC 606-10 where revenue is measured based on a consideration
specified in a contract with a customer and recognized when we satisfy the performance obligation specified in each contract.
Our performance obligation is to arrange for the third-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.
Mining
Revenue
Through
our wholly owned subsidiary, SAFETek, LLC, we lease equipment under a sales-type lease and use the equipment on blockchain networks
to validate and add blocks of transactions to blockchain ledgers (commonly referred to as “mining”). As compensation
for mining we are issued fees from processors and/or block rewards that are newly created cryptocurrency units granted to us.
Our mining activities constitute our ongoing major and central operations of SAFETek, LLC. Because we do not have contracts, nor
do we have customers associated with our mining revenue, we recognize revenue when fees and/or rewards are settled, or ultimately
granted to us as a result of our mining activities.
Fee
Revenue
We
generate fee revenue from our customers through SAFE Management, our subsidiary licensed as a Registered Investment Advisor and
Commodities Trading Advisor. We recognize fee revenue in accordance with ASC 606-10 where revenue is measured based on a consideration
specified in a contract with a customer and recognized when we satisfy the performance obligation specified in each contract.
Our performance obligation is to deliver fully managed trading services to individuals who do not meet the requirements of Qualified
Investors and who lack the time to trade for themselves. We recognize fee revenue as our performance obligation is met and we
receive payment for such advisory fees in the month following recognition.
Revenue
generated for the nine months ended December 31, 2019 is as follows:
|
|
Subscription
Revenue
|
|
|
Equipment
Sales
|
|
|
Cryptocurrency
Mining
Service
Revenue
|
|
|
Mining
Revenue
|
|
|
Fee
Revenue
|
|
|
Total
|
|
Gross billings/receipts
|
|
$
|
21,214,747
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
380,871
|
|
|
$
|
9,486
|
|
|
$
|
21,605,104
|
|
Refunds, incentives, credits, and chargebacks
|
|
|
(1,887,656
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(1,887,656
|
)
|
Amounts paid
to supplier
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
Net revenue
|
|
$
|
19,327,091
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
380,871
|
|
|
$
|
9,486
|
|
|
$
|
19,717,448
|
|
Revenue
generated for the nine months ended December 31, 2018 is as follows:
|
|
Subscription
Revenue
|
|
|
Equipment
Sales
|
|
|
Cryptocurrency
Mining Service Revenue
|
|
|
Mining
Revenue
|
|
|
Fee
Revenue
|
|
|
Total
|
|
Gross billings/receipts
|
|
$
|
21,882,005
|
|
|
$
|
698,954
|
|
|
$
|
5,690,380
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
28,271,389
|
|
Refunds, incentives, credits, and chargebacks
|
|
|
(1,047,007
|
)
|
|
|
(4,000
|
)
|
|
|
(6,501
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
(1,057,508
|
)
|
Amounts paid
to supplier
|
|
|
-
|
|
|
|
-
|
|
|
|
(3,871,278
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
(3,871,278
|
|
Net revenue
|
|
$
|
20,835,048
|
|
|
$
|
694,954
|
|
|
$
|
1,812,601
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
23,342,603
|
|
INVESTVIEW,
INC.
NOTES
TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
AS
OF DECEMBER 31, 2019
(Unaudited)
Revenue
generated for the three months ended December 31, 2019 is as follows:
|
|
Subscription
Revenue
|
|
|
Equipment
Sales
|
|
|
Cryptocurrency
Mining Service Revenue
|
|
|
Mining
Revenue
|
|
|
Fee
Revenue
|
|
|
Total
|
|
Gross billings/receipts
|
|
$
|
5,096,886
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
380,871
|
|
|
$
|
4,117
|
|
|
$
|
5,481,874
|
|
Refunds, incentives, credits, and chargebacks
|
|
|
(518,263
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(518,263
|
)
|
Amounts paid
to supplier
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
Net revenue
|
|
$
|
4,578,623
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
380,871
|
|
|
$
|
4,117
|
|
|
$
|
4,963,611
|
|
Revenue
generated for the three months ended December 31, 2018 is as follows:
|
|
Subscription
Revenue
|
|
|
Equipment
Sales
|
|
|
Cryptocurrency
Mining Service Revenue
|
|
|
Mining
Revenue
|
|
|
Fee
Revenue
|
|
|
Total
|
|
Gross billings/receipts
|
|
$
|
7,204,415
|
|
|
$
|
698,954
|
|
|
$
|
40,779
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
7,944,148
|
|
Refunds, incentives, credits, and chargebacks
|
|
|
(200,613
|
)
|
|
|
(4,000
|
)
|
|
|
(6,501
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
(211,114
|
)
|
Amounts paid
to supplier
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
Net revenue
|
|
$
|
7,003,802
|
|
|
$
|
694,954
|
|
|
$
|
34,278
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
7,773,034
|
|
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:
|
|
December
31, 2019
|
|
|
December
31, 2018
|
|
Options to purchase common
stock
|
|
|
-
|
|
|
|
35,000
|
|
Warrants to purchase common stock
|
|
|
125,000
|
|
|
|
6,052,497
|
|
Notes convertible
into common stock
|
|
|
11,080,447
|
|
|
|
-
|
|
Totals
|
|
|
11,205,447
|
|
|
|
6,087,497
|
|
Lease
Obligation
We
determine if an arrangement is a lease at inception. Operating leases are included in the operating lease right-of-use asset account,
the operating lease liability, current account, and the operating lease liability, long term account in our balance sheet. Right-of-use
assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make
lease payments arising from the lease.
Operating
lease right-of-use assets and liabilities are recognized at commencement date based on the present value of lease payments over
the lease term. For leases in which the rate implicit in the lease is not readily determinable, we use our incremental borrowing
rate based on the information available at commencement date in determining the present value of lease payments. We have elected
to not apply the recognition requirements of ASC 842 to short-term leases (leases with terms of twelve months or less). Lease
terms include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. Lease
expense for operating lease arrangements is recognized on a straight-line basis over the lease term. We have elected the practical
expedient and will not separate non-lease components from lease components and will instead account for each separate lease component
and non-lease component associated with the lease components as a single lease component.
INVESTVIEW,
INC.
NOTES
TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
AS
OF DECEMBER 31, 2019
(Unaudited)
NOTE
3 – 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.
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 $33,684,432 as of December 31, 2019, along with a net loss of $8,587,449
for the nine months ended December 31, 2019. Additionally, as of December 31, 2019, we had cash of $263,600 and a working capital
deficit of $10,938,623. These factors raise substantial doubt about our ability to continue as a going concern.
Historically
we have relied on increasing revenues and new debt and equity financing to pay for operational expenses and debt as it came due.
During the nine months ended December 31, 2019, we raised $2,177,452 in cash proceeds from new debt arrangements, raised $2,164,500
in cash proceeds from related parties, and received $825,000 from the sale of our common stock. Additionally, net cash provided
by operations was $4,690,473 for the nine months ended December 31, 2019.
Since
our acquisition of Wealth Generators in April of 2017 we have implemented a number of initiatives and we are beginning to see
the positive impact of these actions. First, our largest subsidiary, Kuvera, has a bonus plan structure for distributors of our
services which consistently paid out beyond our maximum threshold. Adjustments to this bonus plan have been made over the last
12 months. This resulted in a gradual reduction in bonus payouts which reduced our losses. Second, we expanded the objectives
of Investview through the acquisition and creation of additional subsidiaries to increase our sources of income and creating business
activities in new sectors which includes:
|
●
|
Fully
licensing SAFE Management LLC as a Registered Investment Advisor and Commodities Trading Advisor. This was done so SAFE Management
could offer fully managed trading services to individuals who lacked the time to trade for themselves and provide reasonable
advisory fees and minimum investment amounts to service individuals who do not meet the requirements of Qualified Investors.
|
|
|
|
|
●
|
We
acquired the assets of United Games LLC and United League LLC which provided us highly experienced management, programmers,
marketing and compliance personnel along with key technology components such as a fully coded back office and trademarked
FIREFAN app. We are still in the process of adapting their technology to Kuvera operations and working on various distribution
plans for FIREFAN.
|
|
|
|
|
●
|
We
changed the name of our subsidiary WealthGen Global, which was an unused entity, to SAFETek LLC in preparation for our entry
into the high-performance computing space to meet the needs of 4IR (Fourth Industrial Revolution) business needs which includes
mining, blockchain technologies, gaming, artificial intelligence and 3-Dimensional rendering. This will enable us to provide
HPC services to small, medium and startup entities who require specialized high-speed processing but cannot afford the infrastructure.
By leasing our processing to these companies, we will aid these entities in bringing their products, inventions, improvements
to market.
|
|
|
|
|
●
|
We
have designed a program known as APEX which enables individuals to purchase highly customized data processing equipment which
SAFETek will lease from the purchasers for a fixed period of time at a fixed monthly lease payment. This enables individuals
to participate in emerging growth without experiencing the volatility and potential loss experienced in the sector.
|
|
|
|
|
●
|
We
have renamed our subsidiary Razor Data LLC to APEX Tek LLC. APEX Tek will be solely responsible for the sales and marketing
of the APEX Package.
|
These
companies provide Investview a stake in 4IR, HPC, app development, fintech, blockchain and personal money management sectors.
Each of these are areas that are targeted for significant growth spurred by innovations through technology.
While
our liabilities are larger than our assets it is important to note that we seek to keep operating expenses low. The assets we
have acquired and will continue to seek out are those of technology, mobile apps, and human resources. These assets are not easily
defined on our balance sheet but represent our ability to carry out our objectives which we believe will ultimately generating
positive cash flow, reduced debt and then profitability.
INVESTVIEW,
INC.
NOTES
TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
AS
OF DECEMBER 31, 2019
(Unaudited)
Further,
while we have reported reoccurring losses and have an operating capital deficiency, we have been able to establish multiple companies
to create various revenue streams as we move forward. Our largest challenge is operational cash flow as lending arrangements continue
to be expensive causing us to deploy incoming cash to prior debt. We continue to seek short term capital in arrangements that
are partnership-based with elements of debt and equity combined. Additionally, our immediate focus is the continued reduction
in losses by controlling expenses, increasing revenue, and generating additional revenue streams.
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 – RELATED-PARTY TRANSACTIONS
Our
related-party payables consisted of the following:
|
|
December
31, 2019
|
|
|
March
31, 2019
|
|
Short-term advances [1]
|
|
$
|
668,608
|
|
|
$
|
440,489
|
|
Short-term Promissory Note entered into
on 8/17/18 [2]
|
|
|
-
|
|
|
|
105,000
|
|
Convertible Promissory Note entered
into on 7/23/19 [3]
|
|
|
903,285
|
|
|
|
-
|
|
Accounts payable
– related party [4]
|
|
|
75,000
|
|
|
|
-
|
|
|
|
$
|
1,646,893
|
|
|
$
|
545,489
|
|
[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 and are unsecured. During
the nine months ended December 31, 2019, we received $1,164,500 in cash proceeds from
advances, incurred $714,999 in interest expense on the advances, and repaid related parties
$1,649,500. Also during the nine months ended December 31, 2019 we settled $1,880 of
amounts that were recorded as due prior to March 31, 2018.
|
|
|
[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. On August 31, 2018
the note was amended to be due on demand or, in absence of a demand, due on August 31,
2019. The note had a fixed interest payment of $5,000 which was recorded as interest
expense in the statement of operations during the year ended March 31, 2019. During the
nine months ended December 31, 2019 we made repayments of $105,000 on the note.
|
|
|
[3]
|
We
entered into a $3,600,000 convertible promissory note with a member of the senior management
team on July 23, 2019. We received proceeds of $1,000,000 from the note, including $900,000
in cash and $100,000 which offset amounts owing to the lender. In accordance with the
terms of the note we are required to repay a monthly minimum payment of $50,000 beginning
January of 2020 through June of 2020 and a monthly minimum payment of $100,000 beginning
July of 2020 until the total principal amount has been repaid. The lender has the right
to convert up to $2,600,000 of the outstanding and unpaid principal amount into shares
of our common stock at a conversion price of $0.005 per share, subject to adjustment.
During the nine months ended December 31, 2019 we recorded a beneficial conversion feature
of $1,000,000 as a debt discount (see Note 8). Additionally, we recorded $2,600,000 as
a debt discount, representing the difference between the face value of the note and the
proceeds received. During the nine months ended December 31, 2019 we amortized $903,285
of the debt discount into interest expense.
|
|
|
[4]
|
During
the nine months ended December 31, 2019 we entered into an employment agreement with
Jayme McWidener as our Chief Financial Officer. At the date we entered into the employment
agreement we owed her firm, Mac Accounting Group, LLP, $75,000, which was reclassified
as a related party accounts payable balance on our balance sheet.
|
INVESTVIEW,
INC.
NOTES
TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
AS
OF DECEMBER 31, 2019
(Unaudited)
NOTE
6 – DEBT
Our
debt consisted of the following:
|
|
December
31, 2019
|
|
|
March
31, 2019
|
|
Short-term advance received
on 8/31/18 [1]
|
|
$
|
65,000
|
|
|
$
|
75,000
|
|
Secured merchant agreement for future
receivables entered into on 2/14/19 [2]
|
|
|
-
|
|
|
|
641,687
|
|
Secured merchant agreement for future
receivables entered into on 2/14/19 [3]
|
|
|
-
|
|
|
|
468,790
|
|
Secured merchant agreements for future
receivables entered into on 2/14/19 [4]
|
|
|
-
|
|
|
|
597,060
|
|
Promissory note entered into on 1/16/19
[5]
|
|
|
-
|
|
|
|
60,000
|
|
Secured merchant agreements for future
receivables entered into on 3/28/19 [6]
|
|
|
-
|
|
|
|
25,650
|
|
Convertible promissory note entered
into on 1/11/19 [7]
|
|
|
-
|
|
|
|
26,600
|
|
Convertible promissory note entered
into on 2/6/19 [8]
|
|
|
-
|
|
|
|
76,686
|
|
Convertible promissory note entered
into on 3/14/19 [9]
|
|
|
-
|
|
|
|
5,557
|
|
Secured merchant agreement for future
receivables entered into on 8/16/19 and refinanced on 12/10/19 [10]
|
|
|
1,594,423
|
|
|
|
-
|
|
Secured merchant agreement for future
receivables entered into on 8/16/19 [11]
|
|
|
454,378
|
|
|
|
-
|
|
Convertible promissory note entered
into on 8/30/19 [12]
|
|
|
31,948
|
|
|
|
-
|
|
Convertible promissory
note entered into on 9/11/19 [13]
|
|
|
35,829
|
|
|
|
-
|
|
|
|
$
|
2,181,578
|
|
|
$
|
1,977,030
|
|
|
[1]
|
In
August 2018, we received a $75,000 short-term advance. The advance is due on demand,
has no interest rate, and is unsecured. During the nine months ended December 31, 2019
we made payments of $10,000
|
|
[2]
|
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 were 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. In February 2019 we replaced this agreement with a new Secured
Merchant Agreement (see below), therefore transferring $233,501 of amounts owed to a
new agreement. However, prior to the terminating the September agreement, we made payments
of $605,899 and amortized $269,400 into interest expense.
|
During
January 2019, we entered into a Secured Merchant Agreement for future receivables with an entity that provides quick access to
working capital. On January 11, 2019, we received proceeds from this arrangement of $349,851. In accordance with the terms of
the agreement, we were required to repay $489,650 by making daily ACH payments of $1,000 for the first 30 days following the date
of the agreement and daily ACH payments of $2,999 thereafter. Accordingly, we recorded $139,799 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. In February 2019 we
replaced this agreement with a new Secured Merchant Agreement (see below), therefore transferring $449,657 of amounts owed to
a new agreement. However, prior to the terminating the January agreement, we made payments of $39,993 and amortized $139,799 into
interest expense.
During
February 2019, we entered into a Secured Merchant Agreement for future receivables with an entity that provides quick access to
working capital. On February 15, 2019, we received proceeds from this arrangement of $73,801 after paying off $233,501 from a
September 2018 agreement (see above) and $449,657 from a January 2019 agreement (see above). In accordance with the terms of the
agreement, we were required to repay $909,350 by making daily ACH payments of $5,049. Accordingly, we recorded $152,391 as a debt
discount at the inception of the agreement, which was the difference between the funds received plus the earlier debt paid off,
and the amount that was to be repaid. During the year ended March 31, 2019, we repaid $141,372 and amortized $26,100 into interest
expense.
Effective
August 16, 2019 this debt was refinanced and the outstanding balance of $316,093 was rolled into a new debt arrangement, see notation
[10] below. During the nine months ended December 31, 2019, prior to the refinance, we repaid $451,886 and amortized $126,292
into interest expense.
|
[3]
|
During
December 2018, we entered into a Secured Merchant Agreement for future receivables with
an entity that provides quick access to working capital. On December 17, 2018, we received
proceeds from this arrangement of $380,000. In accordance with the terms of the agreement,
we were required to repay $559,600 by making daily ACH payments of $3,000. Accordingly,
we recorded $179,600 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. In February
2019 we replaced this agreement with a new Secured Merchant Agreement (see below), therefore
transferring $421,600 of amounts owed to a new agreement. However, prior to the terminating
the December agreement, we made payments of $138,000 and amortized $179,600 into interest
expense.
|
INVESTVIEW,
INC.
NOTES
TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
AS
OF DECEMBER 31, 2019
(Unaudited)
During
February 2019, we entered into a Secured Merchant Agreement for future receivables with an entity that provides quick access to
working capital. On February 15, 2019, we received proceeds from this arrangement of $126,932 after paying off $421,600 from a
December 2018 agreement (see above). In accordance with the terms of the agreement, we are required to repay $840,000 by making
daily ACH payments of $4,649. Accordingly, we recorded $291,468 as a debt discount at the inception of the agreement, which was
the difference between the funds received plus the earlier debt paid off, and the amount that was to be repaid. During the year
ended March 31, 2019, we repaid $129,388 and amortized $49,646 into interest expense.
Effective
August 16, 2019 this debt was refinanced and the outstanding balance of $297,033 was rolled into a new debt arrangement, see notation
[10] below. During the nine months ended December 31, 2019, prior to the refinance, we repaid $413,580 and amortized $241,823
into interest expense.
|
[4]
|
During
October 2018, we entered into a Secured Merchant Agreement for future receivables with
an entity that provides quick access to working capital. During October 2018, we received
proceeds from this arrangement of $77,260. In accordance with the terms of the agreement,
we were required to repay $699,500 by making daily ACH payments of $4,372. Accordingly,
we recorded $224,500 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. In February
2019 we replaced this agreement with a new Secured Merchant Agreement (see below), therefore
transferring $327,880 of amounts owed to a new agreement. However, prior to the terminating
the October agreement, we made payments of $371,620 and amortized $224,500 into interest
expense.
|
During
February 2019, we entered into a Secured Merchant Agreement for future receivables with an entity that provides quick access to
working capital. On February 15, 2019, we received proceeds from this arrangement of $126,932 after paying off $327,880 from an
October 2018 agreement (see above). In accordance with the terms of the agreement, we are required to repay $629,550 by making
daily ACH payments of $3,498. Accordingly, we recorded $224,410 as a debt discount at the inception of the agreement, which was
the difference between the funds received plus the earlier debt paid off, and the amount that was to be repaid. Also during February
2019, we entered into a second Secured Merchant Agreement with this same entity, receiving proceeds of $288,000. In accordance
with the terms of the agreement, we are required to repay $419,700 by making daily ACH payments of $2,332. Accordingly, we recorded
$131,700 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. During the year ended March 31, 2019, we repaid $157,410 on these two agreements and amortized $61,330
into interest expense.
Effective
August 16, 2019 this debt was refinanced and the outstanding balance of $382,000 was rolled into a new debt arrangement, see notation
[11] below. During the nine months ended December 31, 2019, prior to the refinance, we repaid $509,840 and amortized $294,780
into interest expense.
|
[5]
|
In
January 2019, we received funds of $631,617 and repaid $511,617 in a series of transactions
representing short-term advances. On January 16, 2019, we entered into a short-term promissory
note for the resulting $120,000 owed as a result of the transactions. The note had a
zero percent interest rate and was due within the shorter of three months or the receipt
of cash from a $1 million financing arrangement. During the nine months ended December
31, 2019, we repaid $60,000 of the amount due under the note.
|
|
[6]
|
During
March 2019, we entered into a Secured Merchant Agreement for future receivables with
an entity that provides quick access to working capital. On March 29, 2019, we received
proceeds from this arrangement of $28,500. In accordance with the terms of the agreement,
we were required to repay $45,000 by making daily ACH payments of $4,500. Accordingly,
we recorded $16,500 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. During the
year ended March 31, 2019, we repaid $4,500 and amortized $1,650 into interest expense.
During the nine months ended December 31, 2019, we repaid $40,500 and amortized $14,850
into interest expense.
|
|
[7]
|
In
January 2019, we entered into a Convertible Promissory Note and received proceeds of
$135,000 after incurring loan fees of $3,000. The note incurred interest at 12% per annum
and had a maturity date of April 11, 2020. The Convertible Promissory Note had a variable
conversion rate that was 65% of the lowest closing price during the previous 15-trading-day
period, subject to adjustment. Therefore, the conversion feature was accounted for as
a derivative instrument (see Note 7). At inception, we recorded a debt discount of $138,000
and captured loan fees, recorded as interest expense, of $450,005. During the year ended
March 31, 2019, we recorded amortization of the debt discount of $23,152 into interest
expense and recorded additional interest expense on the note of $3,448. During the nine
months ended December 31, 2019, we amortized $114,848 into interest expense, recorded
additional interest expense on the note of $40,977 (inclusive of a prepayment penalty),
and paid off the note, accrued interest, and prepayment penalties for $182,425.
|
|
[8]
|
In
February 2019, we entered into a Convertible Promissory Note and received proceeds of
$240,000. The note was issued with a $30,000 original issue discount and loan fees of
$3,000, incurred interest at 12% per annum, and had a maturity date of August 6, 2019.
In accordance with the terms of the note, we issued 22,500,000 shares of common stock
(the “Returnable Shares”) to the note holder as a commitment fee, provided,
however, the Returnable Shares must be returned to us if the note is fully repaid and
satisfied prior to the date which is 180 days following the issue date. The Convertible
Promissory Note had a variable conversion rate that is 65% of the lowest trading price
during the previous 20-trading-day period, subject to adjustment. Therefore, the conversion
feature was accounted for as a derivative instrument (see Note 7). We allocated the proceeds
of the note to the common stock issued and to the fair value of the note, taking into
consideration the fair value of the conversion feature. As a result, the common stock
was valued at $69,871, we recorded a debt discount of $270,000, and captured loan fees,
recorded as interest expense, of $120,128. During the year ended March 31, 2019, we recorded
amortization of the debt discount of $72,514 into interest expense and recorded additional
interest expense on the note of $4,172. During the nine months ended December 31, 2019,
we amortized $197,486 into interest expense, recorded additional interest expense on
the note of $11,136, and paid off the note and accrued interest for $285,308. In accordance
with the terms of the agreement the 22,500,000 Returnable Shares were returned and cancelled
(see Note 8).
|
INVESTVIEW,
INC.
NOTES
TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
AS
OF DECEMBER 31, 2019
(Unaudited)
|
[9]
|
In
March 2019, we entered into a Convertible Promissory Note and received proceeds of $135,000
after incurring loan fees of $3,000. The note incurred interest at 12% per annum and
had a maturity date of June 14, 2020. The Convertible Promissory Note had a variable
conversion rate that was 65% of the average of the two lowest closing prices during the
previous 15-trading-day period, subject to adjustment. Therefore, the conversion feature
was accounted for as a derivative instrument (see Note 7). At inception, we recorded
a debt discount of $138,000 and captured loan fees, recorded as interest expense, of
$64,492. During the year ended March 31, 2019, we recorded amortization of the debt discount
of $4,831 into interest expense and recorded additional interest expense on the note
of $726. During the nine months ended December 31, 2019, we amortized $133,168 into interest
expense, recorded additional interest expense on the note of $43,983 (inclusive of a
prepayment penalty), and paid off the note, accrued interest, and prepayment penalties
for $182,708.
|
|
[10]
|
During
August 2019, we entered into a Secured Merchant Agreement for future receivables with
an entity that provides quick access to working capital. On August 15, 2019, we received
proceeds from this arrangement of $339,270 after paying off $316,093 from a February
2018 agreement (see notation [2] above) and $297,033 from a second February 2019 agreement
(see notation [3] above). In accordance with the terms of the agreement, we were required
to repay $1,399,000 by making daily ACH payments of $6,823. Accordingly, we recorded
$446,604 as a debt discount at the inception of the agreement, which was the difference
between the funds received plus the earlier debt paid off, and the amount that was to
be repaid.
|
Effective
December 10, 2019 this debt was refinanced and the outstanding balance of $839,514 was rolled into a new Secured Merchant Agreement
for future receivables. During the nine months ended December 31, 2019, prior to the refinance, we repaid $559,486 and amortized
$446,605 into interest expense related to the August 2019 arrangement. As a result of the refinancing arrangement we received
proceeds of $854,801. In accordance with the terms of the agreement, we were required to repay $2,448,250 by making daily ACH
payments of $10,999. Accordingly, we recorded $753,935 as a debt discount at the inception of the agreement, which was the difference
between the funds received plus the earlier debt paid off, and the amount that was to be repaid. During the nine months ended
December 31, 2019, after the refinance, we repaid $153,986 and amortized $54,094 into interest expense related to the new December
2019 arrangement.
|
[11]
|
During
August 2019, we entered into a Secured Merchant Agreement for future receivables with
an entity that provides quick access to working capital. In August 2019, we received
proceeds from this arrangement of $418,381 after paying off $382,000 from a October 2018
agreement (see notation [4] above). In accordance with the terms of the agreement, we
were required to repay $1,189,150 by making daily ACH payments of $5,801. Accordingly,
we recorded $388,769 as a debt discount at the inception of the agreement, which was
the difference between the funds received plus the earlier debt paid off, and the amount
that was to be repaid. During the nine months ended December 31, 2019, we repaid $533,750
and amortized $187,747 into interest expense.
|
|
[12]
|
In
August 2019, we entered into a Convertible Promissory Note and received proceeds of $100,000
after incurring loan fees of $3,000. The note incurs interest at 12% per annum and has
a maturity date of November 28, 2020. The Convertible Promissory Note has a variable
conversion rate that is 65% of the average of the two lowest trading prices during the
previous 15-trading-day period, subject to adjustment. Therefore, the conversion feature
is accounted for as a derivative instrument (see Note 7). At inception, we recorded a
debt discount of $103,000 and captured loan fees, recorded as interest expense, of $69,048.
During the nine months ended December 31, 2019, we amortized $27,783 into interest expense,
and recorded additional interest expense on the note of $4,165.
|
|
[13]
|
In
September 2019, we entered into a Convertible Promissory Note and received proceeds of
$125,000 after incurring loan fees of $3,000. The note incurs interest at 12% per annum
and has a maturity date of December 10, 2020. The Convertible Promissory Note has a variable
conversion rate that is 65% of the average of the two lowest trading prices during the
previous 15-trading-day period, subject to adjustment. Therefore, the conversion feature
is accounted for as a derivative instrument (see Note 7). At inception, we recorded a
debt discount of $128,000 and captured loan fees, recorded as interest expense, of $53,573.
During the nine months ended December 31, 2019, we amortized $31,158 into interest expense,
and recorded additional interest expense on the note of $4,671.
|
In
addition to the above debt transactions that were outstanding as of September 30, 2019 and March 31, 2019, during the nine months
ended December 31, 2019, we also received proceeds of $200,000 from two additional short-term notes ($100,000 each) and received
proceeds of $140,000 from a convertible promissory note. During the nine months ended December 31, 2019, we recorded interest
expense of $30,000 for fixed interest and extension fees on the short-term notes and made total cash payments of $230,000 to extinguish
the interest and principal amounts due on the short-term notes. During the nine months ended December 31, 2019, we accounted for
the conversion feature in the convertible note as a derivative instrument, therefore at inception recorded a debt discount of
$143,000 and captured loan fees, recorded as interest expense, of $718,518. By the time we repaid the convertible note in December
of 2019 we had amortized the full $143,000 into interest expense, recorded additional interest expense on the note of $45,094
(inclusive of a prepayment penalty), and paid off the note, accrued interest, and prepayment penalties for $188,094.
INVESTVIEW,
INC.
NOTES
TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
AS
OF DECEMBER 31, 2019
(Unaudited)
NOTE
7 – DERIVATIVE LIABILITY
During
the nine months ended December 31, 2019, we had the following activity in our derivative liability account:
Derivative liability at March 31, 2019
|
|
$
|
1,358,901
|
|
Derivative liability recorded on new
instruments
|
|
|
1,206,139
|
|
Derivative liability reduced by debt
settlement
|
|
|
(1,676,735
|
)
|
Change in fair
value
|
|
|
(504,635
|
)
|
Derivative liability at December
31, 2019
|
|
$
|
383,670
|
|
We
use the binomial option pricing model to estimate fair value for those instruments convertible into common stock, at inception,
at conversion date, and at each reporting date. During the nine months ended December 31, 2019, the assumptions used in our binomial
option pricing model were in the following range:
Risk free interest rate
|
|
|
1.53%
- 2.13
|
%
|
Expected life in years
|
|
|
0.03
- 1.25
|
|
Expected volatility
|
|
|
250%
- 381
|
%
|
NOTE
8 – STOCKHOLDERS’ EQUITY (DEFICIT)
Preferred
Stock
We
are authorized to issue up to 50,000,000 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 preferences of that preferred stock.
As
of December 31, 2019 and March 31, 2019 we had no preferred stock issued or outstanding.
Common
Stock
During
the nine months ended December 31, 2019, we issued 59,215,648 shares of common stock in exchange for net proceeds of $825,000.
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 had recorded $626,388 in accounts payable and accrued liabilities on our balance sheet as of March 31, 2018. During the year
ended March 31, 2019, the 18-month anniversary passed without the common stock falling below the set threshold, therefore, we
were released from the guarantee, and we increased additional paid-in capital by $525,000 to remove the previously recorded offering
costs. During the nine months ended December 31, 2019, the 18-month anniversary passed without the common stock falling below
the set threshold, therefore, we were released from the guarantee, and we increased additional paid-in capital by $101,387 to
remove the previously recorded offering costs.
Also
during the nine months ended December 31, 2019, we issued 241,000,000 shares of common stock, valued at $3,865,500 based on the
market value on the day of issuance, to multiple employees for services and compensation, which is subject to forfeiture if the
employee is not in good standing at the time the shares are fully vested. Of the $3,865,500 value we recognized $1,844,639 as
an expense during the nine months ending December 31, 2019 and the remaining $2,020,861 will be recognized ratably over the vesting
term. In addition to the shares issued to employees, we also issued an additional 285,618,592 shares of common stock, valued at
$831,800 based on the market value on the day of issuance, for services.
During
the nine months ended December 31, 2019 we repurchased 5,150 shares of common stock for $102 and we cancelled 22,500,000 shares
that were returned in accordance with the terms of a Convertible Promissory Note (see Note 6), reducing common stock by $22,500
and increasing additional paid in capital by the same. We also cancelled 200,000,000 shares returned in conjunction with the termination
of a Joint Venture Agreement entered into in March of 2019, reducing common stock by $200,000, reducing additional paid in capital
by $3,180,000, offset with a reduction in our prepaid asset of $3,380,000. During the nine months ended December 31, 2019 we recorded
a beneficial conversion feature of $1,000,000 related to a convertible promissory note entered into with a related party (see
Note 5).
INVESTVIEW,
INC.
NOTES
TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
AS
OF DECEMBER 31, 2019
(Unaudited)
As
of December 31, 2019 and March 31, 2019, the Company had 3,003,490,408 and 2,640,161,318 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, 2018
|
|
|
35,000
|
|
|
$
|
10.00
|
|
|
|
1.51
|
|
|
$
|
-
|
|
Granted
|
|
|
-
|
|
|
$
|
-
|
|
|
|
|
|
|
|
|
|
Exercised
|
|
|
-
|
|
|
$
|
-
|
|
|
|
|
|
|
|
|
|
Canceled / expired
|
|
|
-
|
|
|
$
|
-
|
|
|
|
|
|
|
|
|
|
Options outstanding at March 31, 2019
|
|
|
35,000
|
|
|
$
|
10.00
|
|
|
|
0.51
|
|
|
$
|
-
|
|
Granted
|
|
|
-
|
|
|
$
|
-
|
|
|
|
|
|
|
|
|
|
Exercised
|
|
|
-
|
|
|
$
|
-
|
|
|
|
|
|
|
|
|
|
Canceled / expired
|
|
|
(35,000
|
)
|
|
$
|
10.00
|
|
|
|
|
|
|
|
|
|
Options outstanding at December
31, 2019
|
|
|
-
|
|
|
$
|
-
|
|
|
|
-
|
|
|
$
|
-
|
|
Options exercisable at December
31, 2019
|
|
|
-
|
|
|
$
|
-
|
|
|
|
-
|
|
|
$
|
-
|
|
Stock-based
compensation expense in connection with options granted to employees for the three months ended December 31, 2019 and 2018, was
$0.
Warrants
The
following table summarizes the warrants outstanding and the related prices for the shares of our common stock as of December 31,
2019:
|
|
|
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
|
|
|
|
125,000
|
|
|
|
0.46
|
|
|
$
|
1.50
|
|
|
|
125,000
|
|
|
$
|
1.50
|
|
INVESTVIEW,
INC.
NOTES
TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
AS
OF DECEMBER 31, 2019
(Unaudited)
Transactions
involving our warrant issuance are summarized as follows:
|
|
|
|
|
Weighted
|
|
|
|
Number
of
|
|
|
Average
|
|
|
|
Shares
|
|
|
Exercise
Price
|
|
Warrants outstanding at March 31, 2018
|
|
|
6,169,497
|
|
|
$
|
1.50
|
|
Granted / restated
|
|
|
-
|
|
|
$
|
-
|
|
Canceled
|
|
|
-
|
|
|
$
|
-
|
|
Expired
|
|
|
(1,117,000
|
)
|
|
$
|
1.48
|
|
Warrants outstanding at March 31, 2019
|
|
|
5,052,497
|
|
|
$
|
1.50
|
|
Granted
|
|
|
-
|
|
|
$
|
-
|
|
Canceled
|
|
|
-
|
|
|
$
|
-
|
|
Expired
|
|
|
(4,927,497
|
)
|
|
$
|
1.50
|
|
Warrants outstanding at December
31, 2019
|
|
|
125,000
|
|
|
$
|
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 during the nine months ended December 31, 2019.
|
●
|
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 December 31, 2019
we have paid all amounts owed to CFTC and no unpaid balance remains.
|
|
|
|
|
●
|
In
April of 2019, we received a Summons and Complaint from Fibernet Corp making claims of unpaid invoices and breach of contracts
entered into in February 2012 and January 2015 as RazorData Corp. Without admitting fault or liability, in June of 2019, we
entered into an agreement with Fibernet Corp to settle all claims and release us from any future claims in exchange for a
payment of $35,160 to avoid ongoing litigation related to this matter.
|
NOTE
10 – OPERATING LEASE
In
February 2016, the FASB issued ASU No. 2016-02, Leases. The new standard establishes a right-of-use (“ROU”)
model that requires a lessee to record a ROU asset and a lease liability on the balance sheet for all leases. Leases are classified
as either finance or operating with classification affecting the pattern of expense recognition in the statement of operations.
We adopted ASU No. 2016-02 on April 1, 2019. We did not record a lease asset and lease liability as of the adoption date as we
had no lease arrangements or lease obligation at that time.
During
the nine months ended December 31, 2019 we entered two operating leases for office space in Eatontown, New Jersey (the “Eatontown
Lease”) and Kaysville, Utah (the “Kaysville Lease”). We have the option to extend the three year lease term
of the Eatontown Lease for a period of one year. In addition, we are obligated to pay twelve monthly installments to cover an
annual utility charge of $1.75 per rentable square foot for electric usage within the demised premises. As the lessor has the
right to digitally meter and charge us accordingly, these payments were deemed variable and will be expensed as incurred. During
the three and nine months ended December 31, 2019 the variable lease costs amounted to $831 and $1,385, respectively. At commencement
of the Eatontown Lease, right-of-use assets obtained in exchange for new operating lease liabilities amounted to $110,097. We
have the option to extend the twelve-and-a-half-month lease term of the Kaysville Lease for a period of one year. At commencement
of the Kaysville Lease, right-of-use assets obtained in exchange for new operating lease liabilities amounted to $21,147.
Operating
lease expense was $16,397 and $24,630 for the three and nine months ended December 31, 2019, respectively. Operating cash flows
used for the operating leases during the three and nine months ended December 31, 2019 were $12,897 and $18,797, respectively.
As of December 31, 2019, the weighted average remaining lease term was 2.34 years and the weighted average discount rate was 12%.
INVESTVIEW,
INC.
NOTES
TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
AS
OF DECEMBER 31, 2019
(Unaudited)
Future
minimum lease payments under non-cancellable leases as of December 31, 2019 were as follows:
Remainder of 2020
|
|
$
|
14,897
|
|
2021
|
|
|
56,794
|
|
2022
|
|
|
48,000
|
|
2023
|
|
|
16,000
|
|
Total
|
|
|
135,691
|
|
Less: Interest
|
|
|
(17,294
|
)
|
Present value of lease liability
|
|
|
118,397
|
|
Operating lease
liability, current [1]
|
|
|
(59,064
|
)
|
Operating lease
liability, long term
|
|
$
|
59,333
|
|
[1]
Represents lease payments to be made in the next 12 months
NOTE
11 – SUBSEQUENT EVENTS
Subsequent
to December 31, 2019 we received $1,070,000 in proceeds from related party advances and issued 10,000,000 shares of our common
stock for services.
In
accordance with ASC Topic 855, Subsequent Events, we have evaluated subsequent events through the date of this filing and have
determined that there are no additional subsequent events that require disclosure.
ITEM
2 – MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Forward-Looking
Statements
The
following discussion should be read in conjunction with our consolidated financial statements and notes to our financial statements
included elsewhere in this report. This discussion contains forward-looking statements that involve risks and uncertainties. When
the words “believe,” “expect,” “plan,” “project,” “estimate,” and
similar expressions are used, they identify forward-looking statements. These forward-looking statements are based on management’s
current beliefs and assumptions and information currently available to management, and involve known and unknown risks, uncertainties,
and other factors that may cause the actual results, performance, or achievements to be materially different from any future results,
performance, or achievements expressed or implied by these forward-looking statements. Information concerning factors that could
cause our actual results to differ materially from these forward-looking statements can be found in our periodic reports filed
with the Securities and Exchange Commission (“SEC”). The forward-looking statements included in this report are made
only as of the date of this report. We disclaim any obligation to update any forward-looking statements whether as a result of
new information, future events, or otherwise.
Business
Overview
We
are an emerging leader in the financial technology (FINTECH) sector, leveraging the latest innovations in technology for financial
education, services and interactive tools. Our family of subsidiaries focus on delivering products that serve individuals around
the world. From personal money management, to advancements in blockchain technologies, our companies are forging a path for individuals
to take advantage of financial and technical innovations.
Under
our parent company, Investview, Inc., our significant operating subsidiaries include:
Kuvera,
LLC and Kuvera France S.A.S. – provides financial education and cost savings tools for individuals worldwide.
S.A.F.E.
Management, LLC – trade advisory services for those who lack the time to trade for themselves.
SAFETek,
LLC – deploying next generation processing technologies for artificial intelligence, data mining and blockchain technologies.
APEX
Tek, LLC – sells and distributes the APEX program which is a passive income model for those who seek to purchase assets
that will generate monthly cash flow. This model has drawn considerable institutional interest.
Results
of Operations
Three
Months Ended December 31, 2019 Compared to Three Months Ended December 31, 2018
Revenues
We
recorded net revenue of $4,963,611 for the three months ended December 31, 2019, which was a decrease of $2,769,423 or 36%, from
the prior period revenue of $7,733,034. This decrease was due to a minor loss of repeat subscription customers coupled with our
lack of cryptocurrency service revenue. The lack of cryptocurrency revenue can be explained by our termination of the agent arrangement
with a third-party supplier of crypotocurrency mining services.
Operating
Costs and Expenses
We
recorded operating costs and expenses of $6,702,907 for the three months ended December 31, 2019, which was a decrease of $1,272,015,
or 16%, from the prior period’s operating costs and expenses of $7,974,922. The decrease can be fully explained by the decrease
in commissions, which was a result of our bonus plans paying out beyond our maximum threshold in the prior period due to certain
bonus programs in place, which has since been adjusted to reduce such payouts. For the three months ended December 31, 2019 commissions
as a percent of total net revenue was 32%, versus 66% in the prior period.
Other
Income and Expenses
We
recorded other expense of $2,086,434 for the three months ended December 31, 2019, which was a difference of $1,878,614, or 904%,
from the prior period other expense of $207,820. The change is due to the interest expense incurred in the three months ended
December 31, 2019 of $1,794,623 versus only $206,007 incurred in the prior period.
Nine
Months Ended December 31, 2019 Compared to Nine Months Ended December 31, 2018
Revenues
We
recorded net revenue of $19,717,448 for the nine months ended December 31, 2019, which was a decrease of $3,625,155 or 16%, from
the prior period revenue of $23,342,603. This decrease was due to a minor loss of repeat subscription customers coupled with our
lack of cryptocurrency service revenue. The lack of cryptocurrency revenue can be explained by our termination of the agent arrangement
with a third-party supplier of crypotocurrency mining services.
Operating
Costs and Expenses
We
recorded operating costs and expenses of $24,355,004 for the nine months ended December 31, 2019, which was a decrease of $1,872,691,
or 7%, from the prior period’s operating costs and expenses of $26,227,695. This change is principally a result of a decrease
of $6,494,247, or 38%, in commissions which was a result of our bonus plans paying out beyond our maximum threshold in the prior
period due to certain bonus programs in place, which has since been adjusted to reduce such payouts. The decrease was offset by
an increase in salary and related costs which was due to the Company recording $2,676,439 worth of stock for services and compensation.
Other
Income and Expenses
We
recorded other expense of $3,940,313 for the nine months ended December 31, 2019, which was a difference of $5,859,552, or 305%,
from the prior period other income of $1,919,239. The change is due to the gain on bargain purchase recorded as a result of the
United Games, LLC and United League, LLC acquisition that took place during the nine months ended December 31, 2018, as compared
to no such gain in the prior period. Additionally, in the current period there was interest expense recorded of $5,536,354 offset
by a gain on debt extinguishment of $1,725,384, whereas in the prior period interest expense was only $215,154 and there was a
gain on debt extinguishment of $19,387.
Liquidity
and Capital Resources
During
the nine months ended December 31, 2019, we incurred a net loss of $8,587,449. This loss was funded by cash provided by operating
activities of $4,690,473 offset by cash used in investing activities of $4,171,341 and cash used in financing activities of $389,212.
As a result, our cash and cash equivalents increased by $129,956 to $263,600 as compared to $133,644 at the beginning of the fiscal
year.
Our
current liabilities exceeded our current assets (working capital deficit) by $10,938,623 as of December 31, 2019, as compared
to $2,222,990 at March 31, 2019. The increase in the working capital deficit is due to an increase in our other current liabilities
of $7,576,800 which is due to cash received for our APEX program, which results in the Company recording financial liabilities
for amounts to be repaid under the program.
During
the nine months ended December 31, 2019, we raised $2,177,452 in cash proceeds from new debt arrangements, raised $2,164,500 in
cash proceeds from related parties, and received $825,000 from the sale of our common stock. Additionally, net cash provided by
operations was $4,690,473 for the nine months ended December 31, 2019 due mostly do the receipt of $9,693,141 of cash received
in from our APEX program.
Going
Concern
These
interim unaudited financial statements have been prepared on the going concern basis, which assumes that adequate sources of financing
will be obtained as required and that our assets will be realized and liabilities settled in the ordinary course of business.
Accordingly, the interim unaudited financial statements do not include any adjustments related to the recoverability of assets
and classification of assets and liabilities that might be necessary should we not be unable to continue as a going concern.
Our
audited consolidated financial statements for the year ended March 31, 2019, state that our historical losses, accumulated deficit,
cash balance, and working capital deficit raise substantial doubts about our ability to continue as a going concern. Historically
we have relied on increasing revenues and new debt and equity financing to pay for operational expenses and debt as it came due.
Going forward, we plan to reduce obligations with cash flow provided by operational growth as we have been, and plan to continue,
reducing bonus payouts, increasing sources of income and business activities in new sectors, and utilizing our acquired assets
to generate positive cash flow and reduce debt. Additionally, we plan to pursue additional debt and equity financing and to find
short term capital in arrangements that are partnership based with elements of debt and equity combined.
Critical
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 nine months ended December 31, 2019, are not
necessarily indicative of the operating results that may be expected for the year ending March 31, 2020. These unaudited condensed
consolidated financial statements should be read in conjunction with the March 31, 2019 consolidated financial statements and
notes thereto included in our Annual Report on Form 10-K for the year ended March 31, 2019.
Principles
of Consolidation
The
consolidated financial statements include the accounts of Investview, Inc., and our wholly owned subsidiaries, Kuvera, LLC, Investment
Tools & Training, LLC, Apex Tek, LLC (formerly Razor Data, LLC), S.A.F.E. Management, LLC, SafeTek, LLC (formerly WealthGen
Global, LLC), United Games, LLC, United League, LLC, and Kuvera France S.A.S. Through March 31, 2019 we had determined that one
affiliated entity, Kuvera LATAM S.A.S., which we previously conducted business with, was a variable interest entity and we were
the primary beneficiary of the entity’s activities, which are similar to those of Kuvera, LLC. As a result, through March
31, 2019 we had consolidated the accounts of this variable interest entity into the accompanying consolidated financial statements.
Further, because the Company did not have any ownership interest in this variable interest entity, the Company had allocated the
contributed capital in the variable interest entity as a component of noncontrolling interest. As of April 1, 2019 Kuvera LATAM
S.A.S. had no operations and ceased to exist, therefore, as of that date, no consolidation of the entity is necessary and we recorded
a gain on deconsolidation of $53,739 to eliminate the intercompany account with Kuvera LATAM S.A.S. All intercompany transactions
and balances have been eliminated in consolidation.
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.
Sale
and Leaseback
Through
our wholly-owned subsidiary, APEX Tex, LLC, we sell high powered data processing equipment (“APEX”) to our customers
and they lease the equipment back to SAFETek, LLC, another of our wholly-owned subsidiaries. We account for these transactions
under ASC 842-40 where the leaseback has been deemed a sales-type lease due to the lease term generally covering the entire economic
life of the equipment and our likelihood to purchase the asset at the end of the lease term. In accordance with ASC 842-40 we
have recorded the data processing equipment as a fixed asset on our balance sheet and we have accounted for the amounts received
for the equipment as a financial liability, in other liabilities on our balance sheet. Further, we will recognize interest on
the financial liability over the term of the lease to ensure the financial liability equates to the total amounts to be paid over
the life of the lease.
During
the nine months ended December 31, 2019 we had the following activity related to our sale and leaseback transactions:
Proceeds from sales of APEX
|
|
$
|
9,693,141
|
|
Interest recognized on financial liability
|
|
|
877,352
|
|
Payments made
for leased equipment
|
|
|
(1,341,100
|
)
|
Total financial liability
|
|
|
9,229,393
|
|
Other current
liabilities [1]
|
|
|
(7,576,800
|
)
|
Other long-term
liabilities
|
|
$
|
1,652,593
|
|
[1]
Represents lease payments to be made in the next 12 months
As
of December 31, 2019 we have received proceeds of $607,205 in additional deposits for APEX sales, which has been recorded in the
customer advance amount shown on our balance sheet.
Revenue
Recognition
Subscription
Revenue
The
majority of our revenue is generated by subscription sales and payment is received at the time of purchase. We recognize subscription
revenue in accordance with ASC 606-10 where revenue is measured based on a consideration specified in a contract with a customer
and recognized when we satisfy the performance obligation specified in each contract. Our performance obligation is to provide
services over a fixed subscription period, therefore we recognize revenue ratably over the subscription period and deferred revenue
is recorded for the portion of the subscription period subsequent to each reporting date. Additionally, we offer a 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.
Equipment
Sales
We
generate revenue from the sale of high-speed computer processing equipment that is used for any of the following intense processing
activities: protein folding, CGI rendering, Game Streaming, Machine & Deep Learning, Mining, Independent Financial Verification,
and general high-speed computing. We recognize equipment sales revenue in accordance with ASC 606-10 where revenue is measured
based on a consideration specified in a contract with a customer and recognized when we satisfy the performance obligation specified
in each contract. Our performance obligation is to deliver an equipment package to our customers which includes hardware, software,
and firmware and is drop-shipped to a hosting data center. We receive payment at the time of purchase and recognize revenue when
the equipment package is delivered and ready for maintenance and hosting, which our customers arrange for, and obtain, from a
separate third party that provides such services.
Cryptocurrency
Mining Service Revenue
We
generate revenue from the sale of cryptocurrency mining services to our customers through an arrangement with a third-party supplier.
We recognize cryptocurrency mining service revenue in accordance with ASC 606-10 where revenue is measured based on a consideration
specified in a contract with a customer and recognized when we satisfy the performance obligation specified in each contract.
Our performance obligation is to arrange for the third-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.
Mining
Revenue
Through
our wholly owned subsidiary, SAFETek, LLC, we lease equipment under a sales-type lease and use the equipment on blockchain networks
to validate and add blocks of transactions to blockchain ledgers (commonly referred to as “mining”). As compensation
for mining we are issued fees from processors and/or block rewards that are newly created cryptocurrency units granted to us.
Our mining activities constitute our ongoing major and central operations of SAFETek, LLC. Because we do not have contracts, nor
do we have customers associated with our mining revenue, we recognize revenue when fees and/or rewards are settled, or ultimately
granted to us as a result of our mining activities.
Fee
Revenue
We
generate fee revenue from our customers through SAFE Management, our subsidiary licensed as a Registered Investment Advisor and
Commodities Trading Advisor. We recognize fee revenue in accordance with ASC 606-10 where revenue is measured based on a consideration
specified in a contract with a customer and recognized when we satisfy the performance obligation specified in each contract.
Our performance obligation is to deliver fully managed trading services to individuals who do not meet the requirements of Qualified
Investors and who lack the time to trade for themselves. We recognize fee revenue as our performance obligation is met and we
receive payment for such advisory fees in the month following recognition.
Revenue
generated for the nine months ended December 31, 2019 is as follows:
|
|
Subscription
Revenue
|
|
|
Equipment
Sales
|
|
|
Cryptocurrency
Mining Service Revenue
|
|
|
Mining
Revenue
|
|
|
Fee
Revenue
|
|
|
Total
|
|
Gross billings/receipts
|
|
$
|
21,214,747
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
380,871
|
|
|
$
|
9,486
|
|
|
$
|
21,605,104
|
|
Refunds, incentives, credits, and chargebacks
|
|
|
(1,887,656
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(1,887,656
|
)
|
Amounts paid
to supplier
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
Net revenue
|
|
$
|
19,327,091
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
380,871
|
|
|
$
|
9,486
|
|
|
$
|
19,717,448
|
|
Revenue
generated for the nine months ended December 31, 2018 is as follows:
|
|
Subscription
Revenue
|
|
|
Equipment
Sales
|
|
|
Cryptocurrency
Mining Service Revenue
|
|
|
Mining
Revenue
|
|
|
Fee
Revenue
|
|
|
Total
|
|
Gross billings/receipts
|
|
$
|
21,882,005
|
|
|
$
|
698,954
|
|
|
$
|
5,690,380
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
28,271,389
|
|
Refunds, incentives, credits, and chargebacks
|
|
|
(1,047,007
|
)
|
|
|
(4,000
|
)
|
|
|
(6,501
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
(1,057,508
|
)
|
Amounts paid
to supplier
|
|
|
-
|
|
|
|
-
|
|
|
|
(3,871,278
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
(3,871,278
|
|
Net revenue
|
|
$
|
20,835,048
|
|
|
$
|
694,954
|
|
|
$
|
1,812,601
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
23,342,603
|
|
Revenue
generated for the three months ended December 31, 2019 is as follows:
|
|
Subscription
Revenue
|
|
|
Equipment
Sales
|
|
|
Cryptocurrency
Mining Service Revenue
|
|
|
Mining
Revenue
|
|
|
Fee
Revenue
|
|
|
Total
|
|
Gross billings/receipts
|
|
$
|
5,096,886
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
380,871
|
|
|
$
|
4,117
|
|
|
$
|
5,481,874
|
|
Refunds, incentives, credits, and chargebacks
|
|
|
(518,263
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(518,263
|
)
|
Amounts paid
to supplier
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
Net revenue
|
|
$
|
4,578,623
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
380,871
|
|
|
$
|
4,117
|
|
|
$
|
4,963,611
|
|
Revenue
generated for the three months ended December 31, 2018 is as follows:
|
|
Subscription
Revenue
|
|
|
Equipment
Sales
|
|
|
Cryptocurrency
Mining Service Revenue
|
|
|
Mining
Revenue
|
|
|
Fee
Revenue
|
|
|
Total
|
|
Gross billings/receipts
|
|
$
|
7,204,415
|
|
|
$
|
698,954
|
|
|
$
|
40,779
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
7,944,148
|
|
Refunds, incentives, credits, and chargebacks
|
|
|
(200,613
|
)
|
|
|
(4,000
|
)
|
|
|
(6,501
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
(211,114
|
)
|
Amounts paid
to supplier
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
Net revenue
|
|
$
|
7,003,802
|
|
|
$
|
694,954
|
|
|
$
|
34,278
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
7,773,034
|
|
Recently
Issued 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.
Off-Balance
Sheet Arrangements
We
do not have any off-balance sheet arrangements that are reasonably likely to have a current or future effect on our financial
condition, revenues, and results of operations, liquidity, or capital expenditures.
ITEM
3 – QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
We
are a smaller reporting company as defined by Rule 12b-2 of the Securities Exchange Act of 1934 and, as such, are not required
to provide the information under this item.
ITEM
4 – CONTROLS AND PROCEDURES
Evaluation
of Disclosure Controls and Procedures
Our
management, with the participation of our Chief Executive Officer and Acting Chief Financial Officer, evaluated the effectiveness
of our disclosure controls and procedures (as defined in Rule 13a-15 under the Securities Exchange Act of 1934 (the “Exchange
Act”) as of the end of the period covered by this Quarterly Report on Form 10-Q. In designing and evaluating the disclosure
controls and procedures, management recognizes that any controls and procedures, no matter how well designed and operated, can
provide only reasonable assurance of achieving the desired control objectives. In addition, the design of disclosure controls
and procedures must reflect the fact that there are resource constraints and that management is required to apply its judgment
in evaluating the benefits of possible controls and procedures relative to their costs.
Our
disclosure controls and procedures are designed to provide reasonable, not absolute, assurance that the objectives of our disclosure
control system are met. Because of inherent limitations in all control systems, no evaluation of controls can provide absolute
assurance that all control issues, if any, within a company have been detected. Our Chief Executive Officer and Acting Chief Financial
Officer have concluded, based on their evaluation as of the end of the period covered by this report, that our disclosure controls
and procedures were not effective.
Changes
in Internal Controls
There
were no changes in our internal controls over financial reporting during the fiscal quarter ended December 31, 2019, that have
materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.
PART
II – OTHER INFORMATION
ITEM
1 – LEGAL PROCEEDINGS
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 during the nine months ended December 31, 2019.
|
●
|
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 December 31, 2019
we have paid all amounts owed to CFTC and no unpaid balance remains.
|
|
|
|
|
●
|
In
April of 2019, we received a Summons and Complaint from Fibernet Corp making claims of unpaid invoices and breach of contracts
entered into in February 2012 and January 2015 as RazorData Corp. Without admitting fault or liability, in June of 2019, we
entered into an agreement with Fibernet Corp to settle all claims and release us from any future claims in exchange for a
payment of $35,160 to avoid ongoing litigation related to this matter.
|
ITEM
1.A – RISK FACTORS
N/A
ITEM
2 – UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS
In
October 2019 we received $175,000 in proceeds from the sale of 7,000,000 shares of our common stock and issued 12,400,000 shares
of our common stock for services.
In
December 2019 we issued 3,218,592 shares of our common stock for services that has not been previously reported in any of our
SEC filings.
In
January and February 2020 we issued 10,000,000 shares of our common stock for services.
The
securities represented by each of the transactions described above were issued in reliance on the exemption from registration
provided in Section 4(a)(2) of the Securities Act of 1933, as amended, for transactions not involving any public offering. Each
of the investors is either an “accredited investor” as defined in Rule 501(a) of Regulation D or a sophisticated investor
able to bear the risks of the investment. Each investor confirmed the foregoing and acknowledged that the securities must be acquired
and held for investment. All certificates evidencing the shares of common stock issued or issuable upon conversion of the notes,
issuances under the restricted stock grants, or upon the exercise of the warrants will bear a restrictive legend. No underwriter
participated in the offer and sale of these securities, and no commission or other remuneration was paid or given directly or
indirectly in connection therewith.
ITEM
3 – DEFAULTS UPON SENIOR SECURITIES
None.
ITEM
4 – MINE SAFETY DISCLOSURES
Not
applicable.
ITEM
5 – OTHER INFORMATION
None.
FINANCIAL
STATEMENTS FOR THE YEARS ENDED MARCH 31, 2019 AND 2018
REPORT
OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To
the Board of Directors and
Stockholders
of Investview, Inc.
Opinion
on the Financial Statements
We
have audited the accompanying consolidated balance sheets of Investview, Inc. (the Company) as of March 31, 2019, and 2018, and
the related consolidated statements of operations, stockholders’ equity, and cash flows for each of the years in the two-year
period ended March 31, 2019, and the related notes (collectively referred to as the financial statements). In our opinion, the
financial statements present fairly, in all material respects, the financial position of the Company as of March 31, 2019, and
2018, and the results of its operations and its cash flows for each of the years in the two-year period ended March 31, 2019,
in conformity with accounting principles generally accepted in the United States of America.
Consideration
of the Company’s Ability to Continue as a Going Concern
The
accompanying financial statements have been prepared assuming that the Company will continue as a going concern. As discussed
in Note 4 to the financial statements, the Company has suffered losses from operations and its current cash flow is not enough
to meet current needs. This raises substantial doubt about the Company’s ability to continue as a going concern. Management’s
plans in regards to this matter are also described in Note 4. The financial statements do not include any adjustments that might
result from the outcome of this uncertainty.
Basis
for Opinion
These
financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on
the Company’s financial statements based on our audits. We are a public accounting firm registered with the Public Company
Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance
with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the
PCAOB.
We
conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit
to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error
or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial
reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting, but
not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control over financial reporting.
Accordingly, we express no such opinion.
Our
audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to
error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence
regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles
used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements.
We believe that our audits provide a reasonable basis for our opinion.
/s/
Haynie & Company
|
|
|
|
Salt
Lake City, Utah
|
|
June
28, 2019
|
|
INVESTVIEW,
INC.
CONSOLIDATED
BALANCE SHEETS
|
|
March
31,
|
|
|
March
31,
|
|
|
|
2019
|
|
|
2018
|
|
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
|
|
Cash
and cash equivalents
|
|
$
|
133,644
|
|
|
$
|
1,490,686
|
|
Prepaid
assets
|
|
|
6,685,970
|
|
|
|
3,555
|
|
Receivables
|
|
|
724,995
|
|
|
|
472,557
|
|
Short-term
advances
|
|
|
10,000
|
|
|
|
10,000
|
|
Short-term
advances - related party
|
|
|
500
|
|
|
|
36,510
|
|
Other
current assets
|
|
|
142,061
|
|
|
|
480,370
|
|
Total
current assets
|
|
|
7,697,170
|
|
|
|
2,493,678
|
|
|
|
|
|
|
|
|
|
|
Fixed
assets, net
|
|
|
13,528
|
|
|
|
18,860
|
|
|
|
|
|
|
|
|
|
|
Other
assets:
|
|
|
|
|
|
|
|
|
Intangible
assets, net
|
|
|
1,576,685
|
|
|
|
-
|
|
Long
term license agreement, net
|
|
|
1,983,220
|
|
|
|
2,133,620
|
|
Deposits
|
|
|
4,500
|
|
|
|
4,500
|
|
Total
other assets
|
|
|
3,564,405
|
|
|
|
2,138,120
|
|
|
|
|
|
|
|
|
|
|
Total
assets
|
|
$
|
11,275,103
|
|
|
$
|
4,650,658
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES
AND STOCKHOLDERS’ EQUITY (DEFICIT)
|
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
|
|
Accounts
payable and accrued liabilities
|
|
$
|
3,897,013
|
|
|
$
|
5,352,073
|
|
Customer
advance
|
|
|
265,000
|
|
|
|
-
|
|
Deferred
revenue
|
|
|
1,876,727
|
|
|
|
863,740
|
|
Derivative
liability
|
|
|
1,358,901
|
|
|
|
-
|
|
Related
party payables
|
|
|
545,489
|
|
|
|
1,880
|
|
Debt,
net of discounts
|
|
|
1,977,030
|
|
|
|
195,245
|
|
Total
current liabilities
|
|
|
9,920,160
|
|
|
|
6,412,938
|
|
|
|
|
|
|
|
|
|
|
Total
liabilities
|
|
|
9,920,160
|
|
|
|
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 March 31, 2019 and 2018
|
|
|
-
|
|
|
|
-
|
|
Common
stock, par value $0.001; 10,000,000,000 shares authorized; 2,640,161,318 and 2,169,661,318 shares issued and outstanding as
of March 31, 2019 and 2018, respectively
|
|
|
2,640,161
|
|
|
|
2,169,661
|
|
Additional
paid in capital
|
|
|
23,758,917
|
|
|
|
16,137,945
|
|
Accumulated
other comprehensive income (loss)
|
|
|
1,363
|
|
|
|
(2,483
|
)
|
Accumulated
deficit
|
|
|
(25,096,983
|
)
|
|
|
(20,085,947
|
)
|
Total
Investview stockholders’ equity (deficit)
|
|
|
1,303,458
|
|
|
|
(1,780,824
|
)
|
Noncontrolling
interest
|
|
|
51,485
|
|
|
|
18,544
|
|
Total
stockholders’ equity (deficit)
|
|
|
1,354,943
|
|
|
|
(1,762,280
|
)
|
|
|
|
|
|
|
|
|
|
Total
liabilities and stockholders’ equity (deficit)
|
|
$
|
11,275,103
|
|
|
$
|
4,650,658
|
|
The
accompanying notes are an integral part of these consolidated financial statements
INVESTVIEW,
INC.
CONSOLIDATED
STATEMENTS OF OPERATIONS AND OTHER COMPREHENSIVE INCOME
|
|
Year
Ended March 31,
|
|
|
|
2019
|
|
|
2018
|
|
|
|
|
|
|
|
|
Revenue:
|
|
|
|
|
|
|
|
|
Subscription
revenue, net of refunds, incentives, credits, and chargebacks
|
|
$
|
27,023,202
|
|
|
$
|
13,899,579
|
|
Equipment
sales, net of refunds
|
|
|
694,954
|
|
|
|
-
|
|
Cryptocurrency
mining service revenue, net of refunds and amounts paid to supplier
|
|
|
1,940,925
|
|
|
|
4,017,853
|
|
Total
revenue, net
|
|
|
29,659,081
|
|
|
|
17,917,432
|
|
|
|
|
|
|
|
|
|
|
Operating
costs and expenses:
|
|
|
|
|
|
|
|
|
Cost
of sales and service
|
|
|
1,180,671
|
|
|
|
6,713,097
|
|
Commissions
|
|
|
21,526,326
|
|
|
|
14,271,926
|
|
Selling
and marketing
|
|
|
878,936
|
|
|
|
454,225
|
|
Salary
and related
|
|
|
4,272,355
|
|
|
|
2,270,479
|
|
Professional
fees
|
|
|
1,620,370
|
|
|
|
2,572,831
|
|
General
and administrative
|
|
|
4,121,279
|
|
|
|
2,311,028
|
|
Total
operating costs and expenses
|
|
|
33,599,937
|
|
|
|
28,593,586
|
|
|
|
|
|
|
|
|
|
|
Net
loss from operations
|
|
|
(3,940,856
|
)
|
|
|
(10,676,154
|
)
|
|
|
|
|
|
|
|
|
|
Other
income (expense):
|
|
|
|
|
|
|
|
|
Gain
(loss) on debt extinguishment
|
|
|
19,387
|
|
|
|
(2,767,422
|
)
|
Loss
on fair value of derivative liability
|
|
|
(214,376
|
)
|
|
|
-
|
|
Loss
on spin-off of operations
|
|
|
-
|
|
|
|
(1,118,609
|
)
|
Gain
on bargain purchase
|
|
|
971,282
|
|
|
|
-
|
|
Realized
gain (loss) on cryptocurrency
|
|
|
16,241
|
|
|
|
(10,939
|
)
|
Unrealized
gain (loss) on cryptocurrency
|
|
|
106,488
|
|
|
|
(135,729
|
)
|
Interest
expense - related parties
|
|
|
(20,000
|
)
|
|
|
(104,105
|
)
|
Interest
expense
|
|
|
(1,842,461
|
)
|
|
|
(74,976
|
)
|
Other
income (expense)
|
|
|
(3,032
|
)
|
|
|
(493
|
)
|
Total
other income (expense)
|
|
|
(966,471
|
)
|
|
|
(4,212,273
|
)
|
|
|
|
|
|
|
|
|
|
Income
(loss) before income taxes
|
|
|
(4,907,327
|
)
|
|
|
(14,888,427
|
)
|
Income
tax expense
|
|
|
(70,768
|
)
|
|
|
(24,589
|
)
|
|
|
|
|
|
|
|
|
|
Net
income (loss)
|
|
|
(4,978,095
|
)
|
|
|
(14,913,016
|
)
|
Less:
net income (loss) attributable to the noncontrolling interest
|
|
|
32,941
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
Net
income (loss) attributable to Investview stockholders
|
|
$
|
(5,011,036
|
)
|
|
$
|
(14,913,016
|
)
|
|
|
|
|
|
|
|
|
|
Income
(loss) per common share, basic and diluted
|
|
$
|
(0.00
|
)
|
|
$
|
(0.01
|
)
|
|
|
|
|
|
|
|
|
|
Weighted
average number of common shares outstanding, basic and diluted
|
|
|
2,234,117,482
|
|
|
|
1,911,786,477
|
|
|
|
|
|
|
|
|
|
|
Other
comprehensive income, net of tax:
|
|
|
|
|
|
|
|
|
Foreign
currency translation adjustments
|
|
$
|
3,846
|
|
|
$
|
-
|
|
Total
other comprehensive income
|
|
|
3,846
|
|
|
|
-
|
|
Comprehensive
income (loss)
|
|
|
(4,974,249
|
)
|
|
|
(14,913,016
|
)
|
Less:
comprehensive income attributable to the noncontrolling interest
|
|
|
(3,846
|
)
|
|
|
-
|
|
Comprehensive
income (loss) attributable to Investview shareholders
|
|
$
|
(4,978,095
|
)
|
|
$
|
(14,913,016
|
)
|
The
accompanying notes are an integral part of these consolidated financial statements
INVESTVIEW,
INC.
CONSOLIDATED
STATEMENTS OF STOCKHOLDERS’ EQUITY (DEFICIT)
YEARS
ENDED MARCH 31, 2019 AND 2018
|
|
Common
stock
|
|
|
Additional
Paid in
|
|
|
Treasury
|
|
|
Accumulated
Other Comprehensive
|
|
|
Accumulated
|
|
|
Noncontrolling
|
|
|
|
|
|
|
Shares
|
|
|
Amount
|
|
|
Capital
|
|
|
Stock
|
|
|
Income
|
|
|
Deficit
|
|
|
Interest
|
|
|
Total
|
|
Balance,
March 31, 2017
|
|
|
125,889,455
|
|
|
$
|
125,890
|
|
|
$
|
805,637
|
|
|
$
|
(8,589
|
)
|
|
$
|
-
|
|
|
$
|
(5,154,387
|
)
|
|
$
|
-
|
|
|
$
|
(4,231,449
|
)
|
Common
stock issued for cash
|
|
|
267,127,500
|
|
|
|
267,128
|
|
|
|
2,228,260
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
2,495,388
|
|
Common
stock issued for license agreement
|
|
|
80,000,000
|
|
|
|
80,000
|
|
|
|
2,176,000
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
2,256,000
|
|
Common
stock issued for services
|
|
|
94,375,333
|
|
|
|
94,375
|
|
|
|
6,632,860
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
6,727,235
|
|
Common
stock issued in settlement of debt
|
|
|
239,575,884
|
|
|
|
239,576
|
|
|
|
5,377,558
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
5,617,134
|
|
Wealth
Generators reverse acquisition
|
|
|
1,358,670,942
|
|
|
|
1,358,670
|
|
|
|
(804,759
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
553,911
|
|
Offering
costs
|
|
|
4,273,504
|
|
|
|
4,273
|
|
|
|
(269,273
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(265,000
|
)
|
Cancellation
of stock
|
|
|
(250,000
|
)
|
|
|
(250
|
)
|
|
|
250
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
Cancellation
of treasury stock
|
|
|
(1,300
|
)
|
|
|
(1
|
)
|
|
|
(8,588
|
)
|
|
|
8,589
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
Foreign
currency translation adjustment
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(2,483
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
(2,483
|
)
|
Net
income (loss)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(14,931,560
|
)
|
|
|
18,544
|
|
|
|
(14,913,016
|
)
|
Balance,
March 31, 2018
|
|
|
2,169,661,318
|
|
|
|
2,169,661
|
|
|
|
16,137,945
|
|
|
|
-
|
|
|
|
(2,483
|
)
|
|
|
(20,085,947
|
)
|
|
|
18,544
|
|
|
|
(1,762,280
|
)
|
Common
stock issued for acquisition
|
|
|
50,000,000
|
|
|
|
50,000
|
|
|
|
750,000
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
800,000
|
|
Common
stock issued for services and compensation
|
|
|
402,000,000
|
|
|
|
402,000
|
|
|
|
6,385,600
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
6,787,600
|
|
Common
stock repurchase
|
|
|
(7,000,000
|
)
|
|
|
(7,000
|
)
|
|
|
(84,000
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(91,000
|
)
|
Common
stock issued as commitment fees
|
|
|
22,500,000
|
|
|
|
22,500
|
|
|
|
47,372
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
69,872
|
|
Offering
costs
|
|
|
3,000,000
|
|
|
|
3,000
|
|
|
|
522,000
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
525,000
|
|
Foreign
currency translation adjustment
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
3,846
|
|
|
|
-
|
|
|
|
-
|
|
|
|
3,846
|
|
Net
income (loss)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(5,011,036
|
)
|
|
|
32,941
|
|
|
|
(4,978,095
|
)
|
Balance,
March 31, 2019
|
|
|
2,640,161,318
|
|
|
$
|
2,640,161
|
|
|
$
|
23,758,917
|
|
|
$
|
-
|
|
|
$
|
1,363
|
|
|
$
|
(25,096,983
|
)
|
|
$
|
51,485
|
|
|
$
|
1,354,943
|
|
The
accompanying notes are an integral part of these consolidated financial statements
INVESTVIEW
INC.
CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
|
Year
Ended March 31,
|
|
|
|
2019
|
|
|
2018
|
|
CASH
FLOWS FROM OPERATING ACTIVITIES:
|
|
|
|
|
|
|
|
|
Net
loss
|
|
$
|
(4,978,095
|
)
|
|
$
|
(14,913,016
|
)
|
Adjustments
to reconcile net loss to net cash provided by (used in) operating activities:
|
|
|
|
|
|
|
|
|
Depreciation
|
|
|
5,332
|
|
|
|
2,639
|
|
Amortization
of debt discount
|
|
|
1,052,523
|
|
|
|
-
|
|
Amortization
of long-term license agreement
|
|
|
150,400
|
|
|
|
-
|
|
Amortization
of intangible assets
|
|
|
239,315
|
|
|
|
-
|
|
Stock
issued for services, compensation, and license agreement
|
|
|
109,240
|
|
|
|
6,846,059
|
|
Loan
fees on new borrowings
|
|
|
704,397
|
|
|
|
-
|
|
Loss
on spin-off of operations
|
|
|
-
|
|
|
|
1,118,609
|
|
Gain
on bargain purchase
|
|
|
(971,282
|
)
|
|
|
-
|
|
(Gain)
loss on debt extinguishment
|
|
|
(19,387
|
)
|
|
|
2,767,422
|
|
Loss
on fair value of derivative liability
|
|
|
214,376
|
|
|
|
-
|
|
Realized
(gain) loss on cryptocurrency
|
|
|
(16,241
|
)
|
|
|
10,939
|
|
Unrealized
(gain) loss on cryptocurrency
|
|
|
(106,488
|
)
|
|
|
135,729
|
|
Changes
in operating assets and liabilities:
|
|
|
|
|
|
|
|
|
Receivables
|
|
|
108,907
|
|
|
|
122,053
|
|
Prepaid
assets
|
|
|
(4,055
|
)
|
|
|
-
|
|
Short-term
advances from related parties
|
|
|
36,010
|
|
|
|
(36,510
|
)
|
Other
current assets
|
|
|
461,038
|
|
|
|
(627,038
|
)
|
Deposits
|
|
|
-
|
|
|
|
1,500
|
|
Accounts
payable and accrued liabilities
|
|
|
(1,314,971
|
)
|
|
|
2,924,522
|
|
Customer
advance
|
|
|
265,000
|
|
|
|
-
|
|
Deferred
revenue
|
|
|
1,016,385
|
|
|
|
422,369
|
|
Accrued
interest
|
|
|
59,345
|
|
|
|
74,953
|
|
Accrued
interest - related parties
|
|
|
5,000
|
|
|
|
104,105
|
|
Net
cash used in operating activities
|
|
|
(2,983,251
|
)
|
|
|
(1,045,665
|
)
|
|
|
|
|
|
|
|
|
|
CASH
FLOWS FROM INVESTING ACTIVITIES:
|
|
|
|
|
|
|
|
|
Payments
for fixed assets
|
|
|
-
|
|
|
|
(11,264
|
)
|
Cash
received in acquisition
|
|
|
3,740
|
|
|
|
3,550
|
|
Net
cash provided by investing activities
|
|
|
3,740
|
|
|
|
(7,714
|
)
|
|
|
|
|
|
|
|
|
|
CASH
FLOWS FROM FINANCING ACTIVITIES:
|
|
|
|
|
|
|
|
|
Proceeds
from related parties
|
|
|
1,905,777
|
|
|
|
498,380
|
|
Repayments
for related party payables
|
|
|
(1,367,168
|
)
|
|
|
(1,316,500
|
)
|
Proceeds
from debt
|
|
|
4,115,961
|
|
|
|
1,675,000
|
|
Repayments
for debt
|
|
|
(2,936,044
|
)
|
|
|
(1,424,578
|
)
|
Payments
for share repurchase
|
|
|
(91,000
|
)
|
|
|
-
|
|
Proceeds
from the sale of stock
|
|
|
-
|
|
|
|
3,121,776
|
|
Payments
for offering costs
|
|
|
-
|
|
|
|
(15,000
|
)
|
Net
cash provided by financing activities
|
|
|
1,627,526
|
|
|
|
2,539,078
|
|
|
|
|
|
|
|
|
|
|
Effect
of exchange rate translation on cash
|
|
|
(5,057
|
)
|
|
|
3,371
|
|
|
|
|
|
|
|
|
|
|
Net
increase (decrease) in cash and cash equivalents
|
|
|
(1,357,042
|
)
|
|
|
1,489,070
|
|
Cash
and cash equivalents-beginning of period
|
|
|
1,490,686
|
|
|
|
1,616
|
|
Cash
and cash equivalents-end of period
|
|
$
|
133,644
|
|
|
$
|
1,490,686
|
|
|
|
|
|
|
|
|
|
|
SUPPLEMENTAL
DISCLOSURES OF CASH FLOW INFORMATION
|
|
|
|
|
|
|
|
|
Cash
paid during the period for:
|
|
|
|
|
|
|
|
|
Interest
|
|
$
|
51,000
|
|
|
$
|
117,500
|
|
Income
taxes
|
|
$
|
70,768
|
|
|
$
|
24,589
|
|
Non
cash investing and financing activities:
|
|
|
|
|
|
|
|
|
Common
stock issued for acquisition
|
|
$
|
800,000
|
|
|
$
|
662,048
|
|
Common
stock issued in settlement of related party payables
|
|
$
|
-
|
|
|
$
|
90,000
|
|
Common
stock issued in settlement of debt
|
|
$
|
-
|
|
|
$
|
2,232,606
|
|
Common
stock issued for prepaid services and long term license agreement
|
|
$
|
6,678,360
|
|
|
$
|
2,137,175
|
|
Cancellation
of shares
|
|
$
|
-
|
|
|
$
|
250
|
|
Cancellation
of treasury shares
|
|
$
|
-
|
|
|
$
|
8,589
|
|
Reductions
to equity for offering costs accrued
|
|
$
|
525,000
|
|
|
$
|
-
|
|
Liability
for offering costs
|
|
$
|
-
|
|
|
$
|
250,000
|
|
Shares
issued for offering costs
|
|
$
|
3,000
|
|
|
$
|
4,274
|
|
Price
protection guarantee
|
|
$
|
-
|
|
|
$
|
626,388
|
|
Derivative
liability recorded as a debt discount
|
|
$
|
510,000
|
|
|
$
|
-
|
|
The
accompanying notes are an integral part of these consolidated financial statements
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, we changed domicile to Nevada and changed our name to Voxpath Holding, Inc. In September of 2006, we merged The
Retirement Solution Inc. through a Share Purchase Agreement into Voxpath Holdings, Inc. and then changed our name to TheRetirementSolution.Com,
Inc. and in October 2008 changed our name to Global Investor Services, Inc., before changing our 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”) and on May 7, 2018,
we established WealthGen Global, LLC as a Utah limited liability company and our wholly owned subsidiary.
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 (see Note 5).
On
November 12, 2018, we established Kuvera France, S.A.S. to handle sales of our financial education and research in the European
Union.
On
December 30, 2018, our wholly owned subsidiary S.A.F.E. Management, LLC received its registration and disclosure approval from
the National Futures Association. S.A.F.E. Management, LLC is now a New Jersey State Registered Investment Adviser, Commodities
Trading Advisor, Commodity Pool Operator, and approved for over the counter FOREX advisory services.
On
January 17, 2019, we renamed our non-operating wholly owned subsidiary WealthGen Global, LLC to SafeTek, LLC, a Utah limited liability
company.
Nature
of Business
We
own a number of companies that each operate independently, but are accretive to one another. We are establishing a portfolio of
wholly owned subsidiaries delivering leading-edge technologies, services, and research, dedicated primarily to the individual
consumer. Following is a description of each of our companies.
Kuvera,
LLC provides 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 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.
Kuvera
France S.A.S. is our entity in France that will distribute Kuvera products and services throughout the European Union.
S.A.F.E.
Management, LLC is a Registered Investment Adviser and Commodity Trading Adviser that has been established to deliver automated
trading strategies to individuals who find they lack the time to trade for themselves.
United
League, LLC owns a number of proprietary technologies including FIREFAN a social app for sports enthusiasts. Technologies
created to support any of the Investview companies are held under the United League structure.
United
Games, LLC is the distribution network for United League technologies. Since the acquisition of United Games in July of 2018,
we are working to combine the distributors of Kuvera and United Games. This is an on-going process.
SAFETek,
LLC (formerly WealthGen Global, LLC) is a new addition that we are currently establishing for expansion plans in the high-speed
processing and cloud computing environment.
Investment
Tools & Training, LLC and Razor Data Corp. currently have no operations or activities.
NOTE
2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis
of Accounting
Our
policy is to prepare our financial statements on the accrual basis of accounting in accordance with accounting principles generally
accepted in the United States of America.
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, SafeTek, LLC (formerly WealthGen Global, LLC), United Games,
LLC, United League, LLC, and Kuvera France S.A.S. 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, which
are similar to those of Kuvera, LLC. As a result, we have consolidated the accounts of this variable interest entity into the
accompanying consolidated financial statements. Further, because we do not have any ownership interest in this variable interest
entity, we have 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.
Use
of Estimates
The
preparation of these financial statements in conformity with generally accepted accounting principles requires management to make
estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities
at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results
could differ from those estimates.
Foreign
Exchange
We
have consolidated the accounts of Kuvera France S.A.S. and Kuvera LATAM S.A.S. into our consolidated financial statements. The
operations of Kuvera France S.A.S. are conducted in France and its functional currency is the Euro. 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 France S.A.S. and Kuvera LATAM S.A.S. are prepared using their respective functional currency 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 France S.A.S. and Kuvera LATAM S.A.S. into USD at the following
balance sheet dates:
|
|
March
31,
2019
|
|
|
March
31,
2018
|
|
Euro
to USD
|
|
|
1.12200
|
|
|
|
n/a
|
|
Colombian
Peso to USD
|
|
|
0.00031
|
|
|
|
0.00036
|
|
The
following rates were used to translate the accounts of Kuvera France S.A.S. and Kuvera LATAM S.A.S. into USD for the following
operating periods:
|
|
Year
ended March 31,
|
|
|
|
2019
|
|
|
2018
|
|
Euro
to USD
|
|
|
1.13580
|
|
|
|
n/a
|
|
Colombian
Peso to USD
|
|
|
0.00033
|
|
|
|
0.00034
|
|
Concentration
of Credit Risk
Financial
instruments that potentially expose us to concentration of credit risk include cash, accounts receivable, and advances. We place
our cash and temporary cash investments with credit quality institutions. At times, such investments may be in excess of the FDIC
insurance limit of $250,000. As of March 31, 2019 and 2018, cash balances that exceeded FDIC limits were $0 and $1,095,329, respectively,
and we have not experienced significant losses relating to these concentrations in the past.
Cash
and Cash Equivalents
For
purposes of reporting cash flows, we consider all highly liquid debt instruments purchased with a maturity of three months or
less to be cash equivalents. As of March 31, 2019 and 2018, we had no cash equivalents.
Receivables
Receivables
are carried at net realizable value, representing the outstanding balance less an allowance for doubtful accounts based on a review
of all outstanding amounts. Management determines the allowance for doubtful accounts by regularly evaluating individual receivables
and receivables are written off when deemed uncollectible. Recoveries of receivables previously written off are recorded when
received. We had no allowance for doubtful accounts as of March 31, 2019 and 2018.
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, 2019 and March 31, 2018, the fair value
of our cryptocurrencies was $142,061 and $480,370, respectively. During the year ended March 31, 2019, we recorded $16,241 and
$106,488 as realized and unrealized gain (loss) on cryptocurrency, respectively. During the year ended March 31, 2018, we recorded
$(10,939) and $(135,729) as realized and unrealized gain (loss) on cryptocurrency, respectively.
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 $12,505 and $7,173, as of March 31, 2019 and 2018, respectively. Total
depreciation expense for the years ended March 31, 2019 and 2018, was $5,332 and $2,639, respectively.
Long-Lived
Assets – Intangible Assets & License Agreement
We
account for our intangible assets and long-term license agreement in accordance with Financial Accounting Standards Board (“FASB”)
Accounting Standards Codification (“ASC”) Subtopic 350-30, General Intangibles Other Than Goodwill, and ASC Subtopic
360-10-05, Accounting for the Impairment or Disposal of Long-Lived Assets. ASC Subtopic 350-30 requires assets to be measured
based on the fair value of the consideration given or the fair value of the assets (or net assets) acquired, whichever is more
clearly evident and, thus, more reliably measurable. 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 year ended March 31, 2019 and 2018,
was $150,400 and $122,380, respectively, and the long-term license agreement was recorded at a net value of $1,983,220 and $2,133,620
as of March 31, 2019 and 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 5). 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
|
|
|
$
|
331,000
|
|
Back
office software
|
|
|
10
|
|
|
|
408,000
|
|
Tradename/trademark
- FireFan
|
|
|
5
|
|
|
|
248,000
|
|
Tradename/trademark
- United Games
|
|
|
0.45
|
|
|
|
4,000
|
|
Customer
contracts/relationships
|
|
|
5
|
|
|
|
825,000
|
|
|
|
|
|
|
|
|
1,816,000
|
|
Accumulated
amortization as of March 31, 2019
|
|
|
|
|
|
|
(239,315
|
)
|
Net
book value, March 31, 2019
|
|
|
|
|
|
$
|
1,576,685
|
|
Amortization
expense is expected to be as follows:
Fiscal
year ending March 31, 2020
|
|
$
|
338,150
|
|
Fiscal
year ending March 31, 2021
|
|
|
338,150
|
|
Fiscal
year ending March 31, 2022
|
|
|
338,150
|
|
Fiscal
year ending March 31, 2023
|
|
|
280,565
|
|
Fiscal
year ending March 31, 2024 and beyond
|
|
|
281,670
|
|
|
|
$
|
1,576,685
|
|
Impairment
of Long-Lived Assets
We
have adopted ASC Subtopic 360-10, Property, Plant and Equipment. ASC 360-10 requires that long-lived assets and certain identifiable
intangibles held and used by us be reviewed for impairment whenever events or changes in circumstances indicate that the carrying
amount of an asset may not be recoverable or when the historical cost carrying value of an asset may no longer be appropriate.
Events relating to recoverability may include significant unfavorable changes in business conditions, recurring losses, or a forecasted
inability to achieve break-even operating results over an extended period.
We
evaluate the recoverability of long-lived assets based upon future net cash flows expected to result from the asset, including
eventual disposition. Should impairment in value be indicated, the carrying value of intangible assets will be adjusted and an
impairment loss is recorded equal to the difference between the asset’s carrying value and fair value or disposable value.
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, 2019 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 March 31, 2019:
|
|
Level
1
|
|
|
Level
2
|
|
|
Level
3
|
|
|
Total
|
|
Cryptocurrencies
|
|
$
|
142,061
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
142,061
|
|
Total
Assets
|
|
$
|
142,061
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
142,061
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Derivative
liability
|
|
$
|
-
|
|
|
$
|
1,358,901
|
|
|
$
|
-
|
|
|
$
|
1,358,901
|
|
Total
Liabilities
|
|
$
|
-
|
|
|
$
|
1,358,901
|
|
|
$
|
-
|
|
|
$
|
1,358,901
|
|
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 ASC Subtopic 606-10, Revenue from Contracts with Customers. 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.
We
generate revenue from the sale of high-speed computer processing equipment that is used for any of the following intense processing
activities: protein folding, CGI rendering, game streaming, machine & deep learning, mining, independent financial verification,
and general high-speed computing. Our performance obligation is to deliver an equipment package to our customers that includes
hardware, software, and firmware and is drop-shipped to a hosting data center. We receive payment at the time of purchase and
recognize revenue when the equipment package is delivered and ready for maintenance and hosting, which our customers arrange for,
and obtain, from a separate third party that provides such services.
Revenue
generated for the year ended March 31, 2019, was as follows:
|
|
Subscription
Revenue
|
|
|
Equipment
Sales
|
|
|
Cryptocurrency
Mining Revenue
|
|
|
Total
|
|
Gross
billings
|
|
$
|
28,518,660
|
|
|
$
|
698,954
|
|
|
$
|
5,775,269
|
|
|
$
|
34,992,883
|
|
Refunds,
incentives, credits, and chargebacks
|
|
|
(1,495,458
|
)
|
|
|
(4,000
|
)
|
|
|
(6,501
|
)
|
|
|
(1,505,959
|
)
|
Amounts
paid to supplier
|
|
|
-
|
|
|
|
-
|
|
|
|
(3,827,843
|
)
|
|
|
(3,827,843
|
)
|
Net
revenue
|
|
$
|
27,023,202
|
|
|
$
|
694,954
|
|
|
$
|
1,940,925
|
|
|
$
|
29,659,081
|
|
Revenue
generated for the year ended March 31, 2018, was as follows:
|
|
Subscription
Revenue
|
|
|
Equipment
Sales
|
|
|
Cryptocurrency
Mining Revenue
|
|
|
Total
|
|
Gross
billings
|
|
$
|
14,758,614
|
|
|
$
|
-
|
|
|
$
|
8,885,798
|
|
|
$
|
23,644,412
|
|
Refunds,
incentives, credits, and chargebacks
|
|
|
(859,035
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
(859,035
|
)
|
Amounts
paid to supplier
|
|
|
-
|
|
|
|
-
|
|
|
|
(4,867,945
|
)
|
|
|
(4,867,945
|
)
|
Net
revenue
|
|
$
|
13,899,579
|
|
|
$
|
-
|
|
|
$
|
4,017,853
|
|
|
$
|
17,917,432
|
|
Advertising,
Selling, and Marketing Costs
We
expense advertising, selling, and marketing costs as incurred. Advertising, selling, and marketing costs include costs of promoting
our product worldwide, including promotional events. Advertising, selling, and marketing expenses for the years ended March 31,
2019 and 2018, totaled $878,936 and $454,225, respectively.
Income
Taxes
We
have adopted ASC Subtopic 740-10, Income Taxes, which requires the recognition of deferred tax liabilities and assets for the
expected future tax consequences of events that have been included in the financial statement or tax returns. Under this method,
deferred tax liabilities and assets are determined based on the difference between financial statements and tax basis of assets
and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. Temporary differences
between taxable income reported for financial reporting purposes and income tax purposes consist primarily of derivative liability
and stock compensation accounting versus basis differences.
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:
|
|
March
31, 2019
|
|
|
March
31, 2018
|
|
Convertible
notes payable
|
|
|
-
|
|
|
|
-
|
|
Options
to purchase common stock
|
|
|
35,000
|
|
|
|
35,000
|
|
Warrants
to purchase common stock
|
|
|
5,052,497
|
|
|
|
6,169,497
|
|
Notes
convertible into common stock
|
|
|
52,162,055
|
|
|
|
-
|
|
Total
|
|
|
57,249,552
|
|
|
|
6,204,497
|
|
NOTE
3 – RECENT ACCOUNTING PRONOUNCEMENTS
In
February 2016, the FASB issued ASU No. 2016-02, “Leases (Topic 842)”. ASU 2016-02 changes the accounting for
leased assets, principally by requiring balance sheet recognition of assets under lease arrangements. It is effective for annual
reporting periods, and interim periods within those years, beginning after December 15, 2018. In June of 2019, we signed a three-year
lease agreement for office space in Eatontown, New Jersey, therefore we will adopt this standard effective April 1, 2019 and will
account for our new lease agreement accordingly. We note that the adoption of ASU 2016-02 will have no other impact of on our
consolidated financial statements.
There
are no additional recently issued accounting pronouncements that we have not yet adopted that we believe are applicable or would
have a material impact on our 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 $25,096,983 as of March 31, 2019, along with a net loss of $5,011,036
and net cash used in operations of $2,983,251 for the year ended March 31, 2019. Additionally, as of March 31, 2019, we had a
working capital deficit of $2,222,990. 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, 2019, we raised $1,905,777 in cash proceeds from related parties and $4,115,961 in cash proceeds from new
lending arrangements. Subsequent to March 31, 2019, we obtained $200,000 in cash proceeds from new lending arrangements and received
$325,000 from the sale of our common stock.
Since
our acquisition of Wealth Generators in April of 2017 we have implemented a number of initiatives and we are beginning to see
the positive impact of these actions. First, our largest subsidiary, Kuvera, has a bonus plan structure for distributors of our
services which consistently paid out beyond our maximum threshold. Adjustments to this bonus plan have been made over the last
12 months with additional adjustments planned for the next two quarters. This resulted in a gradual reduction in bonus payouts
which reduced our losses. Second, we expanded the objectives of Investview through the acquisition and creation of additional
subsidiaries to increase our sources of income and creating business activities in new sectors which includes:
|
●
|
Fully
licensing SAFE Management LLC as a Registered Investment Advisor and Commodities Trading Advisor. This was done so SAFE Management
could offer fully managed trading services to individuals who lacked the time to trade for themselves and provide reasonable
advisory fees and minimum investment amounts to service individuals who do not meet the requirements of Qualified Investors.
|
|
|
|
|
●
|
We
acquired the assets of United Games LLC and United League LLC which provided us highly experienced management, programmers,
marketing and compliance personnel along with key technology components such as a fully coded back office and trademarked
FIREFAN app. We are still in the process of adapting their technology to Kuvera operations and working on various distribution
plans for FIREFAN.
|
|
|
|
|
●
|
We
changed the name of our subsidiary WealthGen Global, which was an unused entity, to SAFETek LLC in preparation for our entry
into the high-performance computing space to meet the needs of 4IR (Fourth Industrial Revolution) business needs which includes
mining, blockchain technologies, gaming, artificial intelligence and 3-Dimensional rendering. This will enable us to provide
HPC services to small, medium and startup entities who require specialized high-speed processing but cannot afford the infrastructure.
By leasing our processing to these companies, we will aid these entities in bringing their products, inventions, improvements
to market.
|
|
|
|
|
●
|
We
have designed a program through Joint Venture known as APEX which enables individuals to purchase highly customized processing
cards which SAFETek will lease from the purchasers for a fixed period of time at a fixed monthly lease payment. This enables
individuals to participate in emerging growth without experiencing the volatility and potential loss experienced in the sector.
|
These
companies provide Investview a stake in 4IR, HPC, app development, fintech, blockchain and personal money management sectors.
Each of these are areas that are targeted for significant growth spurred by innovations through technology.
While
our liabilities are larger than our assets it is important to note that we seek to keep operating expenses low. The assets we
have acquired and will continue to seek out are those of technology, mobile apps, and human resources. These assets are not easily
defined on our balance sheet but represent our ability to carry out our objectives which we believe will ultimately generating
positive cash flow, reduced debt and then profitability.
Further,
while we have reported reoccurring losses and have an operating capital deficiency, we have been able to establish multiple companies
to create various revenue streams as we move forward. Our largest challenge is operational cash flow as lending arrangements continue
to be expensive causing us to deploy incoming cash to prior debt. We continue to seek short term capital in arrangements that
are partnership based with elements of debt and equity combined. Additionally, our immediate focus is the continued reduction
in losses by controlling expenses, increasing revenue, and generating additional revenue streams.
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 – ACQUISITIONS
Reverse
Acquisition with Wealth Generators
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 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.
|
Acquisition
of United Games, LLC and United League, LLC
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 provide distributor marketing back-office and commission tools and online sports gaming experience
for users of their applications distributed through their networks of affiliates therefore we expect significant synergies to
exist as a result of combining operations.
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)
|
|
|
1,816,000
|
|
Total
assets acquired
|
|
|
2,181,085
|
|
|
|
|
|
|
Accounts
payable and accrued liabilities
|
|
|
409,803
|
|
Total
liabilities assumed
|
|
|
409,803
|
|
|
|
|
|
|
Net
assets acquired
|
|
|
1,771,282
|
|
|
|
|
|
|
Consideration
[1]
|
|
|
800,000
|
|
|
|
|
|
|
Gain
on bargain purchase
|
|
$
|
971,282
|
|
|
[1]
|
The
50,000,000 shares of our common stock transferred as consideration in accordance with the Purchase Agreement was valued on
July 20, 2018, the date of acquisition, based on the weighted equity fair value of $0.016 per share as determined by a third
party valuation firm.
|
United
Games, LLC and United League, LLC recorded combined revenue of $1,331,542 and a combined net income of $26,059 since the July
20, 2018 acquisition date, which were included in our consolidated statement of operations for the year ended March 31, 2019.
The
table below represents the pro forma revenue and net income (loss) for the years ended March 31, 2019 and 2018, 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:
|
|
Year
Ended March 31,
|
|
|
|
2019
|
|
|
2018
|
|
Revenues
|
|
$
|
27,961,351
|
|
|
$
|
19,416,537
|
|
Net
(loss)
|
|
$
|
(5,288,735
|
)
|
|
$
|
(16,371,058
|
)
|
Loss
per common share
|
|
$
|
(0.00
|
)
|
|
$
|
(0.01
|
)
|
NOTE
6 – RELATED PARTY TRANSACTIONS
Our
related party payables consisted of the following:
|
|
Year
Ended March 31,
|
|
|
|
2019
|
|
|
2018
|
|
Short-term
advances [1]
|
|
$
|
440,489
|
|
|
$
|
1,880
|
|
Short-term
promissory note entered into on 8/17/18 [2]
|
|
|
105,000
|
|
|
|
-
|
|
|
|
$
|
545,489
|
|
|
$
|
1,880
|
|
|
[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, 2019, we received $1,805,777 in cash proceeds from advances, incurred $15,000
in interest, and repaid related parties a total of $1,382,168.
|
|
|
|
|
[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. On August 31, 2018 the note was amended to be due on demand or, in absence of a demand, due
on August 31, 2019. The note had a fixed interest payment of $5,000, which was recorded as interest expense in the statement
of operations during the year ended March 31, 2019.
|
In
addition to the above-mentioned related-party lending arrangements, during the year ended March 31, 2019, we sold $41,500 worth
of high-speed computer processing equipment to our chief executive officer. This revenue has been included in the equipment sales
reported on our statement of operations.
NOTE
7 – DEBT
Our
debt consisted of the following:
|
|
Year
Ended March 31,
|
|
|
|
2019
|
|
|
2018
|
|
Revenue
share agreement entered into on 6/28/16 [1]
|
|
$
|
-
|
|
|
$
|
195,245
|
|
Short-term
advance received on 8/31/18 [2]
|
|
|
75,000
|
|
|
|
-
|
|
Secured
merchant agreement for future receivables entered into on 2/14/19 [3]
|
|
|
641,687
|
|
|
|
-
|
|
Secured
merchant agreement for future receivables entered into on 2/14/19 [4]
|
|
|
468,790
|
|
|
|
-
|
|
Secured
merchant agreements for future receivables entered into on 2/14/19 [5]
|
|
|
597,060
|
|
|
|
-
|
|
Promissory
note entered into on 1/16/19 [6]
|
|
|
60,000
|
|
|
|
-
|
|
Secured
merchant agreements for future receivables entered into on 3/28/19 [7]
|
|
|
25,650
|
|
|
|
-
|
|
Convertible
promissory note entered into on 1/11/19 [8]
|
|
|
26,600
|
|
|
|
-
|
|
Convertible
promissory note entered into on 2/6/19 [9]
|
|
|
76,686
|
|
|
|
-
|
|
Convertible
promissory note entered into on 3/14/19 [10]
|
|
|
5,557
|
|
|
|
-
|
|
|
|
$
|
1,977,030
|
|
|
$
|
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 year ended March 31, 2019, we repaid $195,245.
|
|
|
|
|
[2]
|
In
August 2018, we received a $75,000 short-term advance. The advance is due on demand, has no interest rate, and is unsecured.
|
|
|
|
|
[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 were 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. In February 2019 we replaced this agreement with a new Secured Merchant
Agreement (see below), therefore transferring $233,501 of amounts owed to a new agreement. However, prior to the terminating
the September agreement, we made payments of $605,899 and amortized $269,400 into interest expense.
|
|
|
|
|
|
During
January 2019, we entered into a Secured Merchant Agreement for future receivables with an entity that provides quick access
to working capital. On January 11, 2019, we received proceeds from this arrangement of $349,851. In accordance with the terms
of the agreement, we were required to repay $489,650 by making daily ACH payments of $1,000 for the first 30 days following
the date of the agreement and daily ACH payments of $2,999 thereafter. Accordingly, we recorded $139,799 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.
In February 2019 we replaced this agreement with a new Secured Merchant Agreement (see below), therefore transferring $449,657
of amounts owed to a new agreement. However, prior to the terminating the January agreement, we made payments of $39,993 and
amortized $139,799 into interest expense.
|
|
|
|
|
|
During
February 2019, we entered into a Secured Merchant Agreement for future receivables with an entity that provides quick access
to working capital. On February 15, 2019, we received proceeds from this arrangement of $73,801 after paying off $233,501
from a September 2018 agreement (see above) and $449,657 from a January 2019 agreement (see above). In accordance with the
terms of the agreement, we are required to repay $909,350 by making daily ACH payments of $5,049. Accordingly, we recorded
$152,391 as a debt discount at the inception of the agreement, which was the difference between the funds received plus the
earlier debt paid off, and the amount that was to be repaid. During the year ended March 31, 2019, we repaid $141,372 and
amortized $26,100 into interest expense.
|
|
[4]
|
During
December 2018, we entered into a Secured Merchant Agreement for future receivables with an entity that provides quick access
to working capital. On December 17, 2018, we received proceeds from this arrangement of $380,000. In accordance with the terms
of the agreement, we were required to repay $559,600 by making daily ACH payments of $3,000. Accordingly, we recorded $179,600
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. In February 2019 we replaced this agreement with a new Secured Merchant Agreement (see below), therefore
transferring $421,600 of amounts owed to a new agreement. However, prior to the terminating the December agreement, we made
payments of $138,000 and amortized $179,600 into interest expense.
|
|
|
|
|
|
During
February 2019, we entered into a Secured Merchant Agreement for future receivables with an entity that provides quick access
to working capital. On February 15, 2019, we received proceeds from this arrangement of $126,932 after paying off $421,600
from a December 2018 agreement (see above). In accordance with the terms of the agreement, we are required to repay $840,000
by making daily ACH payments of $4,649. Accordingly, we recorded $291,468 as a debt discount at the inception of the agreement,
which was the difference between the funds received plus the earlier debt paid off, and the amount that was to be repaid.
During the year ended March 31, 2019, we repaid $129,388 and amortized $49,646 into interest expense.
|
|
|
|
|
[5]
|
During
October 2018, we entered into a Secured Merchant Agreement for future receivables with an entity that provides quick access
to working capital. During October 2018, we received proceeds from this arrangement of $77,260. In accordance with the terms
of the agreement, we were required to repay $699,500 by making daily ACH payments of $4,372. Accordingly, we recorded $224,500
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. In February 2019 we replaced this agreement with a new Secured Merchant Agreement (see below), therefore
transferring $327,880 of amounts owed to a new agreement. However, prior to the terminating the October agreement, we made
payments of $371,620 and amortized $224,500 into interest expense.
|
|
|
|
|
|
During
February 2019, we entered into a Secured Merchant Agreement for future receivables with an entity that provides quick access
to working capital. On February 15, 2019, we received proceeds from this arrangement of $126,932 after paying off $327,880
from an October 2018 agreement (see above). In accordance with the terms of the agreement, we are required to repay $629,550
by making daily ACH payments of $3,498. Accordingly, we recorded $224,410 as a debt discount at the inception of the agreement,
which was the difference between the funds received plus the earlier debt paid off, and the amount that was to be repaid.
Also during February 2019, we entered into a second Secured Merchant Agreement with this same entity, receiving proceeds of
$288,000. In accordance with the terms of the agreement, we are required to repay $419,700 by making daily ACH payments of
$2,332. Accordingly, we recorded $131,700 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. During the year ended March 31, 2019, we repaid $157,410 on these
two agreements and amortized $61,330 into interest expense.
|
|
|
|
|
[6]
|
In
January 2019, we received funds of $631,617 and repaid $511,617 in a series of transactions representing short-term advances.
On January 16, 2019, we entered into a short-term promissory note for the resulting $120,000 owed as a result of the transactions.
The note had a zero percent interest rate and was due within the shorter of three months or the receipt of cash from a $1
million financing arrangement. Subsequent to January 16, 2019, we repaid $60,000 of the amount due under the note.
|
|
|
|
|
[7]
|
During
March 2019, we entered into a Secured Merchant Agreement for future receivables with an entity that provides quick access
to working capital. On March 29, 2019, we received proceeds from this arrangement of $28,500. In accordance with the terms
of the agreement, we were required to repay $45,000 by making daily ACH payments of $4,500. Accordingly, we recorded $16,500
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. During the year ended March 31, 2019, we repaid $4,500 and amortized $1,650 into interest expense.
|
|
|
|
|
[8]
|
In
January 2019, we entered into a Convertible Promissory Note and received proceeds of $135,000 after incurring loan fees of
$3,000. The note incurs interest at 12% per annum and has a maturity date of April 11, 2020. The Convertible Promissory Note
has a variable conversion rate that is 65% of the lowest closing price during the previous 15-trading-day period, subject
to adjustment. Therefore, the conversion feature is accounted for as a derivative instrument (see Note 8). At inception, we
recorded a debt discount of $138,000 and captured loan fees, recorded as interest expense, of $450,005. During the year ended
March 31, 2019, we recorded amortization of the debt discount of $23,152 into interest expense and recorded additional interest
expense on the note of $3,448.
|
|
[9]
|
In
February 2019, we entered into a Convertible Promissory Note and received proceeds of $240,000. The note was issued with a
$30,000 original issue discount and loan fees of $3,000, incurs interest at 12% per annum, and has a maturity date of August
6, 2019. In accordance with the terms of the note, we issued 22,500,000 shares of common stock (the “Returnable Shares”)
to the note holder as a commitment fee (see Note 9), provided, however, the Returnable Shares must be returned to us if the
note is fully repaid and satisfied prior to the date which is 180 days following the issue date. The Convertible Promissory
Note has a variable conversion rate that is 65% of the lowest trading price during the previous 20-trading-day period, subject
to adjustment. Therefore, the conversion feature is accounted for as a derivative instrument (see Note 8). We allocated the
proceeds of the note to the common stock issued and to the fair value of the note, taking into consideration the fair value
of the conversion feature. As a result, the common stock was valued at $69,871, we recorded a debt discount of $270,000, and
captured loan fees, recorded as interest expense, of $120,128. During the year ended March 31, 2019, we recorded amortization
of the debt discount of $72,514 into interest expense and recorded additional interest expense on the note of $4,172.
|
|
|
|
|
[10]
|
In
March 2019, we entered into a Convertible Promissory Note and received proceeds of $135,000 after incurring loan fees of $3,000.
The note incurs interest at 12% per annum and has a maturity date of June 14, 2020. The Convertible Promissory Note has a
variable conversion rate that is 65% of the average of the two lowest closing prices during the previous 15-trading-day period,
subject to adjustment. Therefore, the conversion feature is accounted for as a derivative instrument (see Note 8). At inception,
we recorded a debt discount of $138,000 and captured loan fees, recorded as interest expense, of $64,492. During the year
ended March 31, 2019, we recorded amortization of the debt discount of $4,831 into interest expense and recorded additional
interest expense on the note of $726.
|
In
addition to the above debt transactions that were outstanding as of March 31, 2019 and 2018, during the year ended March 31, 2019,
we also received proceeds of $530,000 from short-term notes. During the year ended March 31, 2019, we recorded interest expense
of $51,000 for fixed interest amounts due on the notes and made total cash payments of $581,000 to extinguish the interest and
principal amounts due on the notes.
NOTE
8 – DERIVATIVE LIABILITY
During
the year ended March 31, 2019, we had the following activity in our derivative liability account:
Derivative
liability at March 31, 2018
|
|
$
|
-
|
|
Derivative
liability recorded on new instruments
|
|
|
1,144,525
|
|
Change
in fair value
|
|
|
214,376
|
|
Derivative
liability at March 31, 2019
|
|
$
|
1,358,901
|
|
We
use the binomial option pricing model to estimate fair value for those instruments convertible into common stock, at inception,
at conversion date, and at each reporting date. During the year ended March 31, 2019, the assumptions used in our binomial option
pricing model were in the following range:
Risk
free interest rate
|
|
|
2.40%
- 2.58
|
%
|
Expected
life in years
|
|
|
0.35
- 1.25
|
|
Expected
volatility
|
|
|
222%
- 268
|
%
|
NOTE
9 – STOCKHOLDERS’ EQUITY
Preferred
Stock
We
are authorized to issue up to 50,000,000 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 preferences of that preferred stock, which has not yet been done. As of March 31, 2019 and 2018, we had no preferred
stock issued or outstanding.
Common
Stock Transactions
During
the year ended March 31, 2019, we issued 50,000,000 shares of common stock for the acquisition of United Games, LLC and United
League, LLC (see Note 5). We also issued 1,000,000 shares of common stock in August and 1,000,000 shares of common stock in March,
valued at $10,000 and $17,600, respectively, based on the market price on the day of issuance, to an employee for compensation.
The shares are subject to forfeiture if the employee is not in good standing six months after the date of issuance. During the
year ended March 31, 2019, the $10,000 was recognized as expense and of the $17,600 we recognized $2,933 as an expense and $14,667
was recorded as a prepaid asset. Also during the year ended March 31, 2019, we issued 400,000,000 shares of common stock with
a value of $6,760,000 based on the market price on the date of issuance, for an agreement to partner with a third party to generate
future revenues. The 400,000,000 shares are subject to forfeiture for five years from the date of issuance, such that shares will
be deemed earned upon meeting certain milestones. We are recognizing the expense ratably over the five-year term and recorded
$96,307 in expense during the year ended March 31, 2019, while recording $6,663,693 as a prepaid asset as of March 31, 2019. During
the year ended March 31, 2019, we entered into a common stock purchase agreement that provides cash of $1,000,000 in exchange
for shares of our common stock. In conjunction with that agreement, we issued 3,000,000 shares of common stock that was accounted
for as offering costs, increasing common stock by $3,000 and decreasing additional paid-in capital by $3,000, to offset any proceeds
from the future equity transactions resulting from the agreement. During the year ended March 31, 2019, we issued 22,500,000 shares
as a commitment fee in conjunction with a debt arrangement, whereby the shares were valued at $69,871 based on the allocation
of debt proceeds (see Note 7). Also during the year ended March 31, 2019, we repurchased 7,000,000 shares of common stock for
$91,000.
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 had recorded $626,388 in accounts payable and accrued liabilities on our balance sheet as of March 31, 2018. During the year
ended March 31, 2018, the 18-month anniversary passed without the common stock falling below the set threshold, therefore, we
were released from the guarantee, and we increased additional paid-in capital by $525,000 to remove the previously recorded offering
costs.
As
of March 31, 2019 and 2018, we had 2,640,161,318 and 2,169,661,318 shares of common stock issued and 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, 2019. 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, 2019, 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:
|
|
|
|
|
|
|
|
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 March 31, 2019
|
|
|
35,000
|
|
|
$
|
10.00
|
|
|
|
0.51
|
|
|
$
|
-
|
|
Options
exercisable at March 31, 2019
|
|
|
35,000
|
|
|
$
|
10.00
|
|
|
|
0.51
|
|
|
$
|
-
|
|
Stock-based
compensation expense in connection with options granted to employees for the year ended March 31, 2019 and 2018, was $0.
Warrants
The
following table summarizes the warrants outstanding and the related prices for the shares of our common stock as of March 31,
2019:
|
|
|
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
|
|
|
|
5,052,497
|
|
|
|
0.36
|
|
|
$
|
1.50
|
|
|
|
5,052,497
|
|
|
$
|
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
|
|
|
(1,117,000
|
)
|
|
$
|
(1.48
|
)
|
Warrants
outstanding at March 31, 2019
|
|
|
5,052,497
|
|
|
$
|
1.50
|
|
NOTE
10 – 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 during the year ended March 31, 2019:
|
●
|
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. On September 27, 2018, the court issued its
ruling granting in part and denying in part our motion for preliminary injunction. On January 2, 2019, the parties entered
into a settlement agreement in which they agreed to release all claims and have the litigation dismissed with prejudice, with
neither party making any payment to the other, but with the defendants agreeing to make a $5,000 donation to charity. On February
22, 2019, the matter was dismissed with prejudice.
|
|
●
|
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 did not admit or deny any of the allegations, agreed to pay a fine of $150,000,
and agreed not to act as an unregistered Commodities Trading Advisor in the future. As of March 31, 2019, we have paid $90,000
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.
Mr. Westphal is claiming unpaid overtime wages. We contend 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, Mr. Westphal 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. In December 2018, the parties settled
the matter with a joint motion. As a result of the settlement, we paid Mr. Westphal $1,500 and the case was dismissed.
|
|
|
|
|
●
|
In
April of 2019, we received a Summons and Complaint from Fibernet Corp making claims of unpaid invoices and breach of contracts
entered into in February 2012 and January 2015 as RazorData Corp. Without admitting fault or liability, in June of 2019, we
entered into an agreement with Fibernet Corp to settle all claims and release us from any future claims in exchange for a
payment of $35,160 to avoid ongoing litigation related to this matter.
|
NOTE
11 – 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, 2019 and 2018:
|
|
2019
|
|
|
2018
|
|
Deferred
tax assets:
|
|
|
|
|
|
|
|
|
NOL
carryover
|
|
$
|
2,363,900
|
|
|
$
|
1,146,200
|
|
Amortization
|
|
|
209,100
|
|
|
|
335,600
|
|
Contingent
Liability
|
|
|
49,100
|
|
|
|
45,000
|
|
Related
party accruals
|
|
|
1,500
|
|
|
|
-
|
|
Deferred
tax liabilities
|
|
|
|
|
|
|
|
|
Depreciation
|
|
|
(1,200
|
)
|
|
|
(2,900
|
)
|
Valuation
allowance
|
|
|
(2,622,400
|
)
|
|
|
(1,523,900
|
)
|
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, 2019 and 2018, due to the following:
|
|
2019
|
|
|
2018
|
|
Book
income (loss)
|
|
$
|
(1,493,400
|
)
|
|
$
|
(4,473,900
|
)
|
Stock
for services
|
|
|
32,800
|
|
|
|
2,048,200
|
|
Gain
on settlement – derivative and equity derived
|
|
|
-
|
|
|
|
955,900
|
|
Amortization
|
|
|
(33,100
|
)
|
|
|
313,200
|
|
Contingent
liability
|
|
|
(45,000
|
)
|
|
|
45,000
|
|
Unrealized
loss on cryptocurrency
|
|
|
(31,900
|
)
|
|
|
40,700
|
|
Meals
and entertainment
|
|
|
12,400
|
|
|
|
6,200
|
|
Non-cash
interest expense
|
|
|
315,800
|
|
|
|
5,700
|
|
Depreciation
|
|
|
(7,200
|
)
|
|
|
(2,800
|
)
|
Related
party accruals
|
|
|
1,500
|
|
|
|
(1,500
|
)
|
Related
party accrued payroll
|
|
|
174,600
|
|
|
|
-
|
|
Gain
on bargain purchase
|
|
|
(291,400
|
)
|
|
|
-
|
|
Loss
on value of derivative liabilities
|
|
|
64,300
|
|
|
|
-
|
|
Stock
issued for loan fees
|
|
|
21,000
|
|
|
|
-
|
|
Amortization
of prepaid paid for with equity
|
|
|
45,100
|
|
|
|
-
|
|
Valuation
allowance
|
|
|
1,234,500
|
|
|
|
1,063,300
|
|
Total
long-term deferred income tax assets
|
|
$
|
-
|
|
|
$
|
-
|
|
At
March 31, 2019, we had net operating loss carryforwards of approximately $7,880,000 that may be offset against future taxable
income for the year 2020 through 2039. 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, 2019, consolidated financial statements
since the potential tax benefit is offset by a valuation allowance of the same amount.
We
comply with the provisions of FASB ASC 740 in accounting for our 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, we 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. We have determined
that we have no significant uncertain tax positions requiring recognition under ASC 740.
We
recognize interest accrued related to unrecognized tax benefits in interest expense and penalties in operating expenses. We had
no accruals for interest and tax penalties at March 31, 2019 and 2018.
We
do not expect the amount of unrecognized tax benefits to materially change within the next 12 months.
We
are required to file income tax returns in the U.S. Federal jurisdiction, in New York State, New Jersey, and in Utah. We are no
longer subject to income tax examinations by tax authorities for tax years ending before March 31, 2015. During the year ended
March 31, 2019 and 2018 we paid income taxes of $70,768 and $24,589, respectively.
NOTE
12 – SUBSEQUENT EVENTS
In
April of 2019, we received proceeds of $200,000 from two separate short-term promissory notes.
In
June of 2019, we entered into an office lease agreement for our corporate finance department, located in Eatontown, New Jersey.
The agreement is for a term of three years at a monthly rent amount of $2,500 for months one through six, $3,500 for months six
through 12, and $4,000 for months 13 through 36. Corporate Finance is expected to occupy the new office space beginning in July
of 2019.
In
May and June of 2019, we issued an aggregate of 39,215,648 shares of our common stock to Triton Funds LP under the common stock
purchase agreement that was entered into in December 2018 and amended in March and April 2019, for net proceeds of $325,000.
In
accordance with ASC Topic 855, Subsequent Events, we have evaluated subsequent events through the date of this filing and have
determined that there are no additional subsequent events that require disclosure.
BUSINESS
Corporate
History
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, we changed domicile to Nevada and changed our name to Voxpath Holding, Inc. In September of 2006, we merged The
Retirement Solution Inc. through a Share Purchase Agreement into Voxpath Holding, Inc. and then changed our name to TheRetirementSolution.Com,
Inc. and in October 2008 changed our name to Global Investor Services, Inc., before changing our 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. This closing occurred
after close of business on March 31, 2017, therefore, effective April 1, 2017, Wealth Generators became our wholly owned subsidiary.
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”), this did not affect
the company’s tax and federal identification.
On
May 7, 2018, we established WealthGen Global, LLC as a Utah limited liability company and our wholly owned subsidiary.
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.
On
November 12, 2018, we established Kuvera France, S.A.S. to handle sales of our financial education and research in the European
Union.
On
December 30, 2018, our wholly owned subsidiary S.A.F.E. Management, LLC received its registration and disclosure approval from
the National Futures Association. S.A.F.E. Management, LLC is now a New Jersey State Registered Investment Adviser, Commodities
Trading Advisor, Commodity Pool Operator, and approved for over the counter FOREX advisory services.
On
January 17, 2019, we renamed our nonoperating wholly owned subsidiary WealthGen Global, LLC to SAFETek, LLC, a Utah limited liability
company.
Overview
We
own a number of companies that each operate independently, but are accretive to one another. We are establishing a portfolio of
wholly owned subsidiaries delivering leading-edge technologies, services, and research dedicated primarily to the individual consumer.
Through
our wholly owned subsidiaries, we provide affordable access to financial education, current market research, and cutting-edge
technology that enables individuals to increase and cultivate their own financial resources, enjoy life, and plan for the future.
The services include basic financial educational, expense and debt reduction tools, research, newsletter alerts, and live education
rooms that include instruction on the subjects of equities, options, Forex, ETFs, binary options, crowdfunding, and the emerging
cryptocurrency market.
We
seek to provide a completely transparent and unique experience specifically designed to enhance the financial knowledge and improve
the overall well-being of individuals worldwide. Our goal is to invest in the education, research, and technology essential to
helping the financially motivated secure lasting and balanced success for today and the future.
Each
product subscription includes a core set of tools/research along with the personal finance management suite providing an individual
complete access to the information necessary to cultivate and manage his or her financial situation. We offer packages 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. The bonus plan participation is purely optional but enables individuals the ability to create
an additional income stream to further support their personal financial goals and objectives.
We
recently entered the trade automation space with the launch of two new robo trading products offered to Kuvera subscribers through
our wholly owned subsidiary, SAFE Management, which is a registered investment adviser. SAFE Management can make investments to
the trading signals and research products of Kuvera; put and call options and alternative investments; and investments in privately
held startups for the benefit of individuals who desire to participate in new venture startup opportunities.
Our
Companies
Kuvera
Entities- Our largest subsidiary is Kuvera LLC, which delivers financial education, technology, and research to individuals
through a subscription-based model. Kuvera provides 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 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. Kuvera operations are located at our Salt Lake City, Utah headquarters
location and its website address is kuveraglobal.com.
Kuvera
France S.A.S. is our entity in France that will distribute Kuvera products and services throughout the European Union.
Kuvera
and Kuvera France provide affordable access to financial education, current market research, and cutting-edge technology that
enable individuals to increase and cultivate their own financial resources, enjoy life, and plan for the future. The services
include basic financial educational, expense and debt reduction tools, research, newsletter alerts, and live education rooms that
include instruction on the subjects of equities, options, Forex, ETFs, binary options, crowdfunding, and the emerging cryptocurrency
market.
Each
product subscription includes a core set of tools/research along with the personal finance management suite providing an individual
with complete access to the information necessary to cultivate and manage his or her financial situation. We offer packages 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. 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.
By
enabling the marriage of technology and knowledge, we are able to deliver innovative solutions directly to individuals around
the world. Personal and general financial instruction and information are largely overlooked in all levels of education. An ongoing
cycle of debt accumulation, inability to save, lack of planning, and inadequate knowledge on how to cultivate our “capital”
is passed from generation to generation.
By
creating easy access, focused tutorials, and step-by-step planning, our education and technology tools provide individuals with
the necessary information to understand the power of proper utilization of money along with the ability to design their own path
toward financial fitness.
Money—Money
is a financial education tool designed to help individuals eliminate debt and improve their personal financial behaviors. Money
includes education by Ross Jardine, America’s Money Mentor and educator. The goal of Mr. Jardine’s videos and articles
is to teach the user how to reduce debt, decrease spending, and find money he did not know he had. Money is comprised of four
sections: Cash Flow Quick Start (11 videos and assignments for immediate changes); Debt Freedom System (digital version of The
60-Day Money Miracle by Ross Jardine, which includes 12 chapters and a road map to debt-free living); Financial Tips and Strategies
(videos, assignments, and suggestions for major life purchases, including housing, schooling, marriage etc.); and Money Media,
which contains additional articles addressing current financial market trends tips and tools.
Deductr—Deductr
is a personal money management tool that we provide to all members through a partnership with Deductr. The Deductr personal finance
manager allows its users to manage all of their personal finances from a single view. With this tool, the user can create and
monitor his or her budget and financial goals in a matter of minutes. Deductr Pro also includes a tax assistance feature making
it easy to maximize both common and lesser-known tax benefits. Deductr can help individuals capture, document, and organize the
expenses related to running their business right on their phone.
FXOne—FXOne
includes live Forex binary options sessions with our market experts, as well as Forex newsletter alerts delivered right to a mobile
phone. FXOne also offers unique strategies and in-depth Forex training.
Binary
Options—FXOne binary options session leverage very short-term strategies that give individuals immediate results
in a small amount of time. Live sessions are often as quick as 15 minutes. The live session provides real-time strategies that
the user can follow as the experts identify setups and provide commentary to his or her activity. The user can then determine
whether to act on that information.
Newsletter
Alerts—FXOne gives the user the opportunity to follow market experts while maintaining complete control of his
or her money. With FXOne Forex Alerts, our experts do the research and analysis and deliver that information to the user via email
alerts. The alerts include entry criteria, exit parameters, and position adjustments.
CRYPTOone—CRYPTOone
offers a library of cryptocurrency resources as well as live education, analysis, and research in the cryptocurrency market. With
CRYPTOone, users can learn as little or as much as they would like about the cryptocurrency universe. CRYPTOone also provides
digital alerts that identify cryptocurrency opportunities. Our experts do the research and analysis, and the customer decides
if he or she wants to take action with the information. With just a few clicks, users can participate in the cryptocurrency market
with minimal effort. CRYPTOone is the perfect way for someone to dip a toe or jump in all the way and start benefiting from the
growing cryptocurrency universe.
CRYPTO
Mining Packages—We offer cryptocurrency mining packages that consist of computer/GPU hardware and operation
and maintenance services to provide individuals access to cryptocurrency mining. Our mining hardware (hosting) facility is arranged
through a contractual partnership and located in Romania. Each GPU processing card is specific to the package purchased and is
individually serial numbered, and the customer may request his or her hardware to be shipped to him or her at any time. There
is no guarantee or estimate of mining output provided as mining conditions change constantly and cryptocurrency is subject to
a number of risks associated with emerging markets. We believe our mining services, which are physically housed, monitored, and
maintained in a dedicated facility, eliminate variables associated with other mining services that are typically cloud-based.
Equity
Markets—Our equity market education with alerts is our core offering and brings the knowledge and expertise
of individuals who have been involved in the market for years directly to the user. Our equity services are now included in every
subscription service. Our market experts provide the financial technology, education, and research that allow the user to make
decisions concerning his or her money in the market. The user maintains complete control of his or her money by using an online
brokerage of his or her choosing. Most equity pack strategies require a margin account, and users need at least level four options
approval.
Kuvera
University—We are committed to providing “best in class” education across a variety of topics. Kuvera
University provides exclusive access to our market education library, live monthly webinars with our market experts, in-depth
distributor training, personal development training, with ongoing additional content. After watching and studying the videos and
materials in Kuvera University, the user will have a foundation in the global financial markets, a deeper understanding of effective
financial management, and additional skills that will help the user’s entrepreneurial and professional endeavors. Kuvera
University is included with all customer subscriptions to ensure an ever-increasing value to our monthly access price.
Continual
expansion and enhancement to these services and their delivery is the key to the longevity of the program. With a focus to increase
convenience through the use of technology and by offering a wide variety of market approaches, our products are designed to meet
the needs of the passive, moderately active, and highly motivated self-directed investors.
S.A.F.E.
Management is a Registered Investment Adviser and Commodity Trading Adviser that has been established to deliver automated
trading strategies to individuals who find they lack the time to trade for themselves. S.A.F.E. is committed to bringing innovative
trade methodologies, strategies, and algorithms for all worldwide financial markets. S.A.F.E. Management is a state registered
investment adviser and operations are located at our Eatontown, New Jersey corporate finance location and its website address
is safeadvglobal.com.
United
Entities-
United
League, LLC owns a number of proprietary technologies including FIREFAN, a social app for sports enthusiasts. Technologies
created to support any of our companies are held under the United League structure.
United
Games, LLC is the distribution network for United League technologies. Since the acquisition of United Games in July of 2018,
we are working to combine the distributors of Kuvera and United Games. This is an ongoing process that is not targeted for completion
until the end of calendar year 2019.
SAFETek,
LLC (formerly WealthGen Global, LLC) is a new addition that we are currently establishing for expansion plans in the high-speed
processing computing space. SAFETek will deploy a large-scale processing operation that is used for any of the following intense
processing activities: protein folding, CGI rendering, game streaming, machine and deep learning, mining, independent financial
verification, and general high-speed computing. Key trending markets for data computation include Internet of Things, Smart Homes,
smart cities, smart devices, artificial intelligence, blockchain technology, virtual reality, 3D animation, and health technology
data to name a few.
Apex
Tek, LLC (formerly Razor Data, LLC) is the sales and distribution company for APEX packages and technology. It offers a unique
passive income model for those interested in earning through the purchase and leaseback of high-speed specialized data processing
equipment. This model has drawn considerable institutional interest.
Investment
Tools & Training, LLC currently has no operations or activities
Our
Vision
We
envision an ongoing integration of the latest technologies with emerging needs to deliver leading edge products and services worldwide.
Distribution
Method
We
use an affiliate model to sell our product subscriptions. Anyone with an interest can participate in our bonus plan, which rewards
them for selling product subscriptions. We believe this component of our offering is extremely powerful as it provides an additional
income stream for the customer who decides to become a distributor. Individuals are much more comfortable discussing financial
matters with people they know. The network becomes a support system for the customers as they learn together and share their experiences.
The affiliate distribution model, while powerful, requires strict policies and procedures to ensure the company’s presentation
and messaging are accurate and compliant. An affiliate/distributor is not required to be a customer to sell our products.
Competition
We
face competition for each of our product categories, but do not have a similar competitor with the full suite of services offered.
Each of the financial education products, alerts, tools, and newsletters face competition from similar product companies such
as TheStreet.com, The Motley Fool, Jim Cramer, and like subscription-based financial research services. The personal money management
education and tools face competition from free mobile apps designed for the same purpose although our personal money management
does not advertise or entice the user to refinance or secure new loans and is a pure management tool that serves the individual
and not the advertiser. Our tax management tools and education have limited competition, and we have deployed Deductr Pro as our
tool of choice. Unique to our company is not the individual product but the combined suite of products for one monthly subscription
price, cancellable at any time by the user and distributed exclusively by the active members through the optional bonus plan for
those who choose to sell the service to others.
We
believe our competitive advantages include:
|
●
|
a
generous bonus program for independent affiliates;
|
|
|
|
|
●
|
a
management team with extensive experience in financial education and market strategy research/technology;
|
|
|
|
|
●
|
a
young and motivated distributor base;
|
|
|
|
|
●
|
a
large demographic that services all genders, races, religions, and nationalities; and
|
|
|
|
|
●
|
a
delivery platform enabling us to launch new products quickly and efficiently worldwide.
|
Our
competitive weaknesses include translation challenges as we continue international expansion and components of our distributor
backend that are programmed by third-party providers.
Intellectual
Property
Our
success is predicated on the adoption of new and innovative technology, education, and research along with constantly improving
convenience tools. The delivery of alerts and financial information through our platform provides various levels of automation
that is programmed and designed by us exclusively for our products and modified to enable the individual to initiate action on
alerts they desire. We own the intellectual property for many of our products strategies and platform delivery mechanisms while
we make other products available through licensed arrangements. In this way, we can continually offer a full suite of “best
of breed” services to ensure our members are receiving the most value and leading-edge programs for their monthly subscription.
Expansion
We
are in the process of expanding the business internationally. International planning and restructuring is taking place as a result
of the recent name change to Kuvera. Our affiliated entity, WG LATAM S.A.S., which has been reestablished to Kuvera LATAM S.A.S.,
distributes tour products and services in Colombia and surrounding Latin American countries. International operations can be impacted
by international regulations and economic conditions, although all are continuously monitored.
Government
Regulation
We
have historically positioned the company as a knowledge provider and educator that seeks to augment a user’s informed decision-making
process, rather than to act as a conductor of investment decisions or a representative of investment services. As such, most of
our activities do not fall within the scope of securities industry regulation. Most of our products and services also do not require
that any representative distributing our services conduct themselves as an investment advisor or broker. However, our subsidiary
S.A.F.E. Management, LLC, recently received its registration and disclosure approval from the National Futures Association. S.A.F.E.
Management, LLC is now a New Jersey State Registered Investment Adviser (“RIA”), Commodities Trading Advisor (“CTA”),
and Commodity Pool Operator registered with the U.S. Commodity Futures Trading Commission (“CFTC”), and is approved
by the CFTC for over the counter FOREX advisory services. As a New Jersey-registered RIA, we are required to comply with New Jersey’s
laws and regulations governing the activities of investment advisers and the fees they can charge, as well as certain provisions
of the Investment Adviser Act of 1940. As a CFTC registered CTA, Commodity Pool Operator, and FOREX adviser, we are required to
comply with federal law and CFTC rules regulating those activities.
We
have established these registrations and the advisory structure to offer automated trade execution, which is managed by S.A.F.E.
Management, LLC, in its capacity as an RIA, for equities and equity options and in its capacity as a CTA for commodities, futures,
and OTC Forex. In addition, SAFE provides traditional advisory services for clients who do not wish to trade for themselves. Automation
of trades is only available through S.A.F.E. Management. No additional approvals are required for any of our current business
activities. The cost of maintaining this additional regulated entity could have a material adverse effect on our business and
could subject us to regulatory enforcement actions.
We
are subject to government regulation in connection with securities laws and regulations applicable to all publicly owned companies
as well as laws and regulations applicable to businesses generally. We are also increasingly subject to governmental regulation
and legislation specifically targeting Internet companies, such as privacy regulations adopted at the local, state, national and
international levels and taxes levied at the state level. Due to the increasing use of the internet, enforcement of existing laws,
such as consumer protection regulations, in connection with web-based activities has become more aggressive, and it is expected
that new laws and regulations will continue to be enacted at the local, state, national, and international levels. Such new legislation,
alone or combined with increasingly aggressive enforcement of existing laws, could have a material adverse effect on our future
operating performance and business.
Employees
As
of December 31, 2019, we had 23 employees.
Internet
Address
Additional
information concerning our business can be found on our website at www.investview.com for the most up-to-date corporate
financial information, presentation announcements, transcripts, and archives. Information regarding our products and services
offered by our wholly owned subsidiary, Kuvera LLC, may be found at www.kuveraglobal.com. SAFE Management LLC services
can be viewed at www.safeadvglobal.com. Web site links provided in may change in the future. We make available free of
charge on our website our annual report on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K, and amendments
to those reports, as soon as reasonably practicable after we electronically file such material with or furnish it to the Securities
and Exchange Commission.
Transfer
Agent
The
transfer agent of the Company’s common stock is Standard Registrar & Transfer Co., Inc. 440 East 400 South Suite 200
Salt Lake City, UT 84111. Phone: 801-571-8844 Fax: 801-328-4058.
MANAGEMENT
Our
directors were elected to serve until the next annual meeting of shareholders and until his respective successors will have been
elected and will have qualified. The following table sets forth the name, age and position held with respect to our present executive
officers and directors:
Directors
and Executive Officers
The
following table sets forth certain information with respect to our directors and executive officers:
Name
|
|
Age
|
|
Position
|
Joseph
Cammarata
|
|
45
|
|
Chief
Executive Officer and Director
|
Annette
Raynor
|
|
55
|
|
Chief
Operations Officer and Director
|
Ryan
Smith
|
|
54
|
|
President
of Apex Tek, LLC and Director
|
Jeremy
Roma
|
|
44
|
|
President
of SAFETek, LLC and Director
|
Mario
Romano
|
|
55
|
|
Director
of Finance and Director
|
Chad
Miller
|
|
55
|
|
Director
|
Brian
McMullen
|
|
44
|
|
Director
|
Jayme
Lin McWidener
|
|
40
|
|
Chief
Financial Officer
|
William
Kosoff
|
|
77
|
|
Corporate
Secretary
|
Joseph
Cammarata, age 45, began his career in the financial industry over 25 years ago at Datech where he pioneered NASDAQ market
orders and the “first off”-exchange electronic trading system. While at Datek he developed an internal cross that
would eventually become the Island ECN. He then started and orchestrated the growth of Datek Online - which was later sold to
Ameritrade. As co-founder and CEO of Sonic Trading he architected the first ECN aggregator and Smart Routing system that would
serve as its core product. Recognized for its innovative query handling, superior market data processing, and all-around reliability,
the Sonic system served more than twenty-four Institutional clients and Broker/Dealers before being acquired in 2004 by the Bank
of New York. After the acquisition, he served as Managing Director for BNY Brokerage and its spin-off BNY ConvergEx as the head
of Electronic Trading and Strategic Planning and Development. In 2010 he started SpeedRoute LLC and Pro Securities ATS LLC. As
President and CEO he has launched a broker-dealer routing system, SpeedRoute and an ATS, Pro Securities. SpeedRoute is currently
routing for some of the largest Banks, Broker Dealers and Stock Exchanges in the United States, currently averaging 2% of the
US Exchange volumes and has plans for continued growth across a robust product suite. Speedroute and its affiliates were acquired
by OverStock.com in September of 2015 to help drive OverStock.com’s financial technology businesses, leading the push into
Crypto Securities and Blockchain settlement systems. Mr. Cammarata served as President of tZERO a Subsidiary of Overstock.com
from January 2016 to May of 2018 and remains a director of tZERO. He was founder and CEO of SpeedRoute, LLC from November 2010
to April 2018.
Annette
Raynor. Ms. Raynor has served as our chief operating officer since March 31, 2017, and as a director since June 6, 2017. Since
2013, Ms. Raynor has served as the chief operating officer of Kuvera, LLC, formerly Wealth Generators, LLC, our wholly owned subsidiary.
Ms. Raynor holds her Series 65 Registered Investment Advisor license, Series 3 Commodity Futures, Series 34 Retail Off-Exchange
Forex, and is a licensed realtor in the state of New Jersey. Ms. Raynor is the general manager and licensed representative of
SAFE Management LLC.
Ryan
Smith. Mr. Smith has served as director and chief executive officer since March 31, 2017. Since 2013, Mr. Smith has served
as the chief executive officer of Kuvera, LLC, formerly Wealth Generators, LLC, our wholly owned subsidiary. Mr. Smith received
his BS from The University of Utah in 2003.
Chad
Miller. Mr. Miller was appointed as a director on June 6, 2017. Mr. Miller co-founded Kuvera, LLC, formerly Wealth Generators,
LLC, our wholly owned subsidiary, in 2013. Prior to 2013, Mr. Miller held his Series 63 Uniform Securities License, Series 7 General
Securities License, and Series 24 General Securities Principal License and was employed by various brokerage firms from 1999 through
2010.
Jeremy
Roma is the founder of Life Tech Ecosystems in 2017 and also the founder of Apex Technology Assets which has provided the
inspiration and product concept behind Investview’s new APEX product line. He now serves as President of SAFETEK, LLC a
wholly owned subsidiary of Investview.
Mario
Romano was elected as a Director of the Corporation and serves as director of finance of Investview, Inc as well. He co-founded
Wealth Generators in 2013 (now part of Investview) and continues as director of finance for Investview. He received his Bachelors
in Business/Finance from St John’s University of New York. He began his career in finance with a select group of Wall Street
Institutions including Lehman Brothers during the period from the late 1980’s through early 2000. He continues his key management
role as Director of Finance for Investview.
Brian
McMullen, Mr. McMullen began his career with Lifeforce International Inc., where he was a marketing consultant from 1998 to
2004. In 2004 he joined New Vision, Inc.where he was a marketing consultant until 2009. In 2011 he joined Monavie LLC, where he
was also a marketing consultant building a network marketing organization until 2015. In 2017 he joined Investview’s subsidiary,
Kuvera LLC, as a marketing consultant. Mr. McMullen has been one of several hundred angel investors with Tech Coast Angels, the
largest angel investor group in the U.S., since 2013.
Jayme
Lin McWidener earned her bachelor’s degree and Masters of Business Administration from Drake University and became an
auditor for Cahaba GBA in 2001 before joining HJ & Associates, LLC (“HJ”) in January 2004 as an audit staff member.
She obtained her CPA license in 2007 and worked at HJ focusing on auditing SEC reporting companies, eventually being promoted
to an audit senior and audit manager before she became a partner at HJ in January 2014. Ms. McWidener spent just over 2 years
as a partner with HJ and with its successor, Haynie & Company. In April of 2016 she established Mac Accounting Group, LLP,
specializing in PCAOB audits for SEC reporting companies and AICPA audits for private companies in a variety of industries.
William
C. Kosoff. Since September 2006, Mr. Kosoff has served in various positions, including chief financial officer, secretary,
and treasurer. He had a break in service as an officer and employee from December 2012 to April 2013, when he returned began serving
again as acting chief financial officer. He was also formerly a director of Investview. He has worked in the high technology industry
for 45 years, serving in engineering, marketing, sales, and senior management positions with Rockwell International from 1960
to 1984. In 1984, he co-founded Telenetics Corp and served as its president and chief executive officer. In 1987, Telenetics became
public through an IPO on NASDAQ and was acquired in 2006 by a private firm. Mr. Kosoff received his Bachelor of Arts in Physics
from California State University in 1978 and earned a Professional Certificate in Accounting from New York University in 2010
Our
directors are elected for a term of one year and until their successors qualified, nominated, and elected.
Role
of the Board
It
is the paramount duty of the board to oversee our management in the competent and ethical operation of the company on a day-to-day
basis and to assure that the long-term interests of the shareholders are being served. To satisfy this duty, the directors take
a proactive, focused approach to their position, and set standards to ensure that we are committed to business success through
maintenance of ambitious standards of responsibility and ethics.
The
board of directors met formally twice during fiscal 2019.
Committees
Our
business, property, and affairs are managed by or under the direction of the board of directors. Members of the board are kept
informed of our business through discussion with the chief executive and financial officers and other officers, by reviewing materials
provided to them, and by participating at meetings of the board and its committees.
Audit
Committee
We
currently do not have a designated audit committee, and accordingly, our board of directors preapproves all audit and permissible
non-audit services provided by the independent auditor, including audit, audit-related, tax, and other services. Preapproval is
generally provided for up to one year, detailed as to the particular service or category of services, and subject to a specific
budget. The independent auditor and management are required to periodically report to our board of directors regarding the extent
of services provided by the independent auditor in accordance with this preapproval and the fees for the services performed to
date. The board of directors may also preapprove particular services on a case-by-case basis.
Compensation
Committee
We
currently do not have a designated compensation committee, and accordingly, our board of directors will approve all compensation
matters until such committee is established and approved.
Code
of Ethics
We
have a code of ethics that applies to all of our employees, including our principal executive officer, principal financial officer,
principal accounting officer, and the directors, a copy of which is available in the Employee Handbook. We intend to disclose
any changes in or waivers from our code of ethics by posting such information on our website or by filing a Form 8-K.
Section
16(a) Compliance
Section
16(a) of the Exchange Act requires our directors, executive officers, and persons who own more than 10% of our common stock to
file with the Securities and Exchange Commission initial reports of ownership and reports of changes in ownership of common stock
and other of our equity securities. During the year ended March 31, 2019, our officers, directors, and 10% stockholders made the
required filings pursuant to Section 16(a).
EXECUTIVE
AND DIRECTOR COMPENSATION
The
following table sets forth information concerning the annual and long-term compensation earned by or paid to our chief executive
officer and to other persons who served as executive officers as, at, or during the fiscal year ended March 31, 2019, or who earned
compensation exceeding $100,000 during fiscal year 2019 (the “named executive officers”), for services as executive
officers for the last two fiscal years:
Summary
Compensation Table
Name
and Principal Position
|
|
Fiscal
Year
|
|
|
Salary
|
|
|
Stock
Awards
|
|
|
Option
Awards
|
|
|
Non-Equity
Incentive Plan Compensation
|
|
|
Change
in Pension Value and Non-Qualified Deferred Compensation Earnings
|
|
|
All
Other Compensation
|
|
|
Total
|
|
|
|
|
|
|
|
|
($)
|
|
|
|
($)
|
|
|
|
($)
|
|
|
|
($)
|
|
|
|
($)
|
|
|
|
($)
|
|
|
|
($)
|
|
Ryan
Smith [1]
|
|
|
2019
|
|
|
|
225,000
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
293,242
|
[2]
|
|
|
518,242
|
|
CEO
and Director
|
|
|
2018
|
|
|
|
207,500
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
131,685
|
[3]
|
|
|
339,185
|
|
Annette
Raynor [4]
|
|
|
2019
|
|
|
|
225,000
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
297,442
|
[5]
|
|
|
522,442
|
|
COO
and Director
|
|
|
2018
|
|
|
|
207,500
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
135,885
|
[6]
|
|
|
343,385
|
|
Chad
Miller [7]
|
|
|
2019
|
|
|
|
225,000
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
293,242
|
[8]
|
|
|
518,242
|
|
Director
|
|
|
2018
|
|
|
|
207,500
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
131,685
|
[9]
|
|
|
339,185
|
|
Mario
Romano [10]
|
|
|
2019
|
|
|
|
225,000
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
297,442
|
[11]
|
|
|
522,442
|
|
Director
of Finance
|
|
|
2018
|
|
|
|
207,500
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
135,885
|
[12]
|
|
|
343,385
|
|
William
C. Kosoff
|
|
|
2019
|
|
|
|
60,000
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
60,000
|
|
Acting
CFO
|
|
|
2018
|
|
|
|
52,000
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
52,000
|
|
[1]
|
A
portion of Mr. Smith’s compensation was paid to Kays Creek Capital, an entity in which he is an owner.
|
[2]
|
Includes
$30,000 in medical reimbursements, $69,512 for fiscal year 2019 revenue under the Founder Revenue Agreements discussed below,
and $193,730 that was accrued but unpaid under the Founder Revenue Agreements.
|
[3]
|
Includes
$30,000 in medical reimbursements, $70,710 for fiscal year 2018 revenue under the Founder Revenue Agreements discussed below,
and $30,975 that was accrued but unpaid under the Founder Revenue Agreements.
|
[4]
|
A
portion of Ms. Raynor’s compensation was paid to Wealth Engineering LLC, an entity in which she is a 50% owner.
|
[5]
|
Includes
$34,200 in medical reimbursements, $108,512 for fiscal year 2019 revenue under the Founder Revenue Agreements discussed below,
and $154,730 that was accrued but unpaid under the Founder Revenue Agreements.
|
[6]
|
Includes
$34,200 in medical reimbursements, $75,210 for fiscal year 2018 revenue under the Founder Revenue Agreements discussed below,
and $26,475 that was accrued but unpaid under the Founder Revenue Agreements.
|
[7]
|
A
portion of Mr. Miller’s compensation was paid to Kays Creek Capital and MILCO, entities in which he is an owner.
|
[8]
|
Includes
$30,000 in medical reimbursements, $69,512 for fiscal year 2019 revenue under the Founder Revenue Agreements discussed below,
and $193,730 that was accrued but unpaid under the Founder Revenue Agreements.
|
[9]
|
Includes
$30,000 in medical reimbursements, $70,710 for fiscal year 2018 revenue under the Founder Revenue Agreements discussed below,
and $30,975 that was accrued but unpaid under the Founder Revenue Agreements.
|
[10]
|
A
portion of Mr. Romano’s compensation was paid to Wealth Engineering LLC, an entity in which he is a 50% owner.
|
[11]
|
Includes
$34,200 in medical reimbursements, $108,512 for fiscal year 2019 revenue under the Founder Revenue Agreements discussed below,
and $154,730 that was accrued but unpaid under the Founder Revenue Agreements.
|
[12]
|
Includes
$34,200 in medical reimbursements, $75,210 for fiscal year 2018 revenue under the Founder Revenue Agreements discussed below,
and $26,475 that was accrued but unpaid under the Founder Revenue Agreements.
|
RELATED
PERSON TRANSACTIONS
Certain
Related Party Transactions
Other
than the relationships and transactions discussed below, we are not a party to, nor are we proposed to be a party, to any transaction
during the last two fiscal years involving an mount exceeding $120,000 and in which a related person, as such term is defined
by Item 404 of Regulation S-K, had or will a direct or indirect material interest.
|
|
December
31, 2019
|
|
|
March
31, 2019
|
|
Short-term advances [1]
|
|
$
|
668,608
|
|
|
$
|
440,489
|
|
Short-term Promissory Note entered into
on 8/17/18 [2]
|
|
|
-
|
|
|
|
105,000
|
|
Convertible Promissory Note entered
into on 7/23/19 [3]
|
|
|
903,285
|
|
|
|
-
|
|
Accounts payable
– related party [4]
|
|
|
75,000
|
|
|
|
-
|
|
|
|
$
|
1,646,893
|
|
|
$
|
545,489
|
|
[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 and are unsecured.
During the nine months ended December 31, 2019, we received $1,164,500 in cash proceeds from advances, incurred $714,999 in
interest expense on the advances, and repaid related parties $1,649,500. Also during the nine months ended December 31, 2019
we settled $1,880 of amounts that were recorded as due prior to March 31, 2018.
|
|
|
[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. On August 31, 2018 the note was amended to be due on demand or, in absence of a demand, due on August
31, 2019. The note had a fixed interest payment of $5,000 which was recorded as interest expense in the statement of operations
during the year ended March 31, 2019. During the nine months ended December 31, 2019 we made repayments of $105,000 on the
note.
|
|
|
[3]
|
We entered into
a $3,600,000 convertible promissory note with a member of the senior management team on July 23, 2019. We received proceeds
of $1,000,000 from the note, including $900,000 in cash and $100,000 which offset amounts owing to the lender. In accordance
with the terms of the note we are required to repay a monthly minimum payment of $50,000 beginning January of 2020 through
June of 2020 and a monthly minimum payment of $100,000 beginning July of 2020 until the total principal amount has been repaid.
The lender has the right to convert up to $2,600,000 of the outstanding and unpaid principal amount into shares of our common
stock at a conversion price of $0.005 per share, subject to adjustment. During the nine months ended December 31, 2019 we
recorded a beneficial conversion feature of $1,000,000 as a debt discount (see Note 8). Additionally, we recorded $2,600,000
as a debt discount, representing the difference between the face value of the note and the proceeds received. During the nine
months ended December 31, 2019 we amortized $903,285 of the debt discount into interest expense.
|
|
|
[4]
|
During the nine
months ended December 31, 2019 we entered into an employment agreement with Jayme McWidener as our Chief Financial Officer.
At the date we entered into the employment agreement we owed her firm, Mac Accounting Group, LLP, $75,000, which was reclassified
as a related party accounts payable balance on our balance sheet.
|
Outstanding
Equity Awards at Fiscal Year-End
No
stock option awards were exercisable or unexercisable as of March 31, 2019, for any executive officer.
Employee
Stock Options
The
nonqualified plan adopted in 2007 authorizes 65,000 shares, of which 47,500 have been granted as of March 31, 2019. 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, 2019, 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:
|
|
|
|
|
|
|
|
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 March 31, 2019
|
|
|
35,000
|
|
|
$
|
10.00
|
|
|
|
0.51
|
|
|
$
|
-
|
|
Options
exercisable at March 31, 2019
|
|
|
35,000
|
|
|
$
|
10.00
|
|
|
|
0.51
|
|
|
$
|
-
|
|
Stock-based
compensation expense in connection with options granted to employees for the year ended March 31, 2019 and 2018, was $0.
Employment
Agreements and Revenue Share Agreements
The
four founders of Wealth Generators, LLC, Ryan Smith, chief executive officer; Chad Miller, chief visionary officer; Annette Raynor,
chief operating officer; and Mario Romano, director of finance and investor relations, all entered into Founder Employment Agreements
effective October 1, 2017. The terms and covenants in the four agreements are the same for each of the founders and have a term
of five years that automatically renews for three successive five-year terms unless terminated prior to the 90th day following
the expiration of the applicable term. The agreements provide for an annual salary of $225,000 with annual reviews by the board
of directors or the designated compensation committee to determine whether an increase in salary is appropriate based on our results
of operations, increased activities, or responsibilities of the founder, or such other factors as the board of directors or the
designated compensation committee thereof may deem appropriate. In addition, the founders are entitled to receive health fringe
benefits that are generally available to our employees.
On
October 11, 2017, we entered into Founder’s Revenue Agreements with Chad Miller, Annette Raynor, Mario Romano, and Ryan
Smith. As consideration for their efforts in founding Wealth Generators LLC, beginning January 1, 2018, for the month ended December
31, 2017, each of the founders has the right to receive three-quarters of one percent (0.75%) of our top-line revenue, which will
be calculated and paid on a monthly basis. This right is permanent and irrevocable, is not connected in any manner to the founder’s
employment with us, and will be treated as a portion of the founder’s estate if it has not been assigned by the founder
prior to his or her death.
As
of April 3, 2017, upon the reverse acquisition of Wealth Generators LLC, Mr. Kosoff was appointed as the acting chief financial
officer and resumed payroll as an employee at a mutually agreed reduced rate. In the event he resigns without good reason with
90 days’ written notice or is terminated for cause (willful misconduct) with 30 days’ written notice, he is entitled
to all accrued and unpaid compensation as of the date of such termination and expense reimbursement.
PRINCIPAL
STOCKHOLDERS.
The
following table lists the number of shares of Common Stock of the Company as of February __, 2020, that are beneficially owned
by (i) each person or entity known to our Company to be the beneficial owner of more than 5% of the outstanding Common Stock;
(ii) each officer and director of our Company; and (iii) all officers and directors as a group. The table also includes Information
relating to beneficial ownership of Common Stock by our principal stockholders and management is based upon information furnished
by each person using “beneficial ownership” concepts under the rules of the Securities and Exchange Commission. Under
these rules, a person is deemed to be a beneficial owner of a security if that person has or shares voting power, which includes
the power to vote or direct the voting of the security, or investment power, which includes the power to vote or direct the voting
of the security. The person is also deemed to be a beneficial owner of any security of which that person has a right to acquire
beneficial ownership within sixty (60) days. Under the rules of the SEC, more than one person may be deemed to be a beneficial
owner of the same securities, and a person may be deemed to be a beneficial owner of securities as to which he/she may not have
any pecuniary beneficial interest. Except as noted below, each person has sole voting and investment power.
Name
of Beneficial Owner(1)
|
|
Common
Stock
Beneficially
Owned
|
|
|
Percentage
of
Common Stock(2)
|
|
|
|
|
|
|
|
|
Directors and
Officers:
|
|
|
|
|
|
|
|
|
Joseph
Cammarata, CEO and Director
|
|
|
270,000,000
|
|
|
|
8.96
|
%
|
Chad
Miller, Director(3)
|
|
|
305,937,355
|
|
|
|
10.15
|
%
|
Ryan
Smith, Director(3)
|
|
|
305,937,355
|
|
|
|
10.15
|
%
|
Annette
Raynor, COO and Director(4)(5)
|
|
|
256,278,471
|
|
|
|
8.50
|
%
|
Mario
Romano, Director and Treasurer(4)(6)
|
|
|
256,278,471
|
|
|
|
8.50
|
%
|
Jeremy Roma,
Director
|
|
|
200,000,000
|
|
|
|
6.64
|
%
|
Brian McMullen,
Director
|
|
|
90,000,000
|
|
|
|
2.99
|
%
|
Jayme McWidener,
CFO
|
|
|
20,000,000
|
|
|
|
0.66
|
%
|
William C. Kosoff,
Corporate Secretary
|
|
|
14,036,875
|
|
|
|
0.47
|
%
|
|
|
|
|
|
|
|
|
|
All
Officers and Directors as a group (9 persons)(3)(4)(5)(6)
|
|
|
1,718,468,527
|
|
|
|
57.02
|
%
|
*
|
Less than 1%.
|
(1)
|
Except as otherwise
indicated, the address of each beneficial owner is c/o InvestView Inc., 234 Industrial Way, Suite A 202, Eatontown, NJ 07724
|
(2)
|
Applicable percentage
ownership is based on 3,013,490,408 shares of common stock outstanding as of February 12, 2020, together with securities exercisable
or convertible into shares of common stock within 60 days of that date, for each stockholder.
|
(3)
|
Our directors Ryan
Smith and Chad Miller each own 50% of CR Capital Holdings LLC and, as a result, have voting and dispositive control of these
shares. Therefore, they are deemed to be the beneficial owners of our shares of common stock.
|
(4)
|
The members of Wealth
Engineering LLC, 745 Hope Road, Eatontown, NJ 07724, own 110,456,942 shares of our common stock. Our officers Mario Romano
and Annette Raynor are two of its members. In addition, Mr. Romano is the CEO and Ms. Raynor serves as the COO of Wealth Engineering
LLC. Combined Mr. Romano and Ms. Raynor have voting and shared dispositive control of these shares.
|
(5)
|
In addition to the
300,456,942 shares owned by Wealth Engineering LLC, Ms. Raynor owns 105,000,000 shares personally.
|
(6)
|
In addition to the
300,456,942 shares owned by Wealth Engineering LLC, Mr. Romano owns 105,000,000 shares personally.
|
No
director, executive officer, affiliate, or any owner of record or beneficial owner of more than 5% of any class of our voting
securities is a party adverse to us or has a material interest adverse to us.
Equity
Compensation Plans
The
following table summarizes the equity compensation plans under which our securities may be issued as of March 31, 2019:
|
|
|
|
|
|
|
|
Number
of Securities
|
|
|
|
Number
of
|
|
|
|
|
|
Remaining
Available
|
|
|
|
Securities
To Be
|
|
|
Weighted-Average
|
|
|
for
Future Issuance under
|
|
|
|
Issued
upon Exercise of
|
|
|
Exercise
Price of
|
|
|
Equity
Compensation Plans
|
|
|
|
Outstanding
Options,
|
|
|
Outstanding
Options,
|
|
|
(excluding
securities
|
|
|
|
Warrants
and Rights
|
|
|
Warrants
and Rights
|
|
|
reflected
in column (a))
|
|
Plan
Category
|
|
(a)
|
|
|
(b)
|
|
|
(c)
|
|
|
|
|
|
|
|
|
|
|
|
Equity
compensation plans approved by security holders
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
Equity
compensation plans approved by security holders
|
|
|
35,000
|
|
|
$
|
10
|
|
|
|
—
|
|
Description
of our SECURITIES
General
Our
articles of incorporation, as amended, authorize us to issue 10,050,000,000 shares of capital stock, consisting of 10,000,000,000
shares of common stock, par value $0.001, and 50,000,000,000 shares of preferred stock, par value $0.001.
Common
Stock
Our
amended and restated articles of incorporation authorize the issuance of 10,000,000,000 shares of common stock, par value $0.001.
The holders of common stock are entitled to one vote per share on each matter submitted to a vote at any meeting of stockholders.
Shares of common stock do not carry cumulative voting rights and, therefore, a majority of the shares of outstanding common stock
will be able to elect the entire board of directors and, if they do so, minority stockholders would not be able to elect any persons
to the board of directors. Our bylaws provide that a majority of our issued and outstanding shares constitutes a quorum for stockholders’
meetings, except respecting certain matters for which a greater percentage quorum is required by statute or the bylaws.
Our
stockholders have no preemptive rights to acquire additional shares of common stock or other securities. The common stock is not
subject to redemption and carries no subscription or conversion rights. In the event of our liquidation, the shares of common
stock are entitled to share equally in corporate assets after satisfaction of all liabilities.
Holders
of common stock are entitled to receive such dividends as the board of directors may, from time to time, declare out of funds
legally available for the payment of dividends. We seek growth and expansion of our business through the reinvestment of profits,
if any, and do not anticipate that we will pay dividends in the foreseeable future.
Preferred
Stock
Our
amended and restated articles of incorporation authorize the issuance of 50,000,000 shares of preferred stock, par value $0.001.
The board of directors is empowered, without stockholder approval, to designate and issue additional series of preferred stock
with dividend, liquidation, conversion, voting, or other rights or restrictions, including the right to issue convertible securities
with no limitations on conversion, which could adversely affect the voting power or other rights of the holders of our common
stock, substantially dilute a common stockholder’s interest, and depress the price of our common stock.
Authority
to Issue Stock
The
board of directors has the authority to issue the authorized but unissued shares of common stock without action by the stockholders.
The issuance of such shares would reduce the percentage ownership held by current stockholders.
As
of February 12, 2020, there were 3,013,490,408 shares of our common stock outstanding and 121,345,168 shares reserved for issuance
pursuant to outstanding convertible notes; and 37,500,000 shares reserved for issuance pursuant to outstanding grants under the
2020 Employee Incentive Plan. Our Company is authorized, without stockholder approval, to issue additional shares of authorized
but unissued capital stock.
Common
Stock
Dividend
Rights
Subject
to preferences that may apply to any shares of preferred stock outstanding at the time, the holders of our common stock are entitled
to receive dividends out of funds legally available if our Board, in its discretion, determines to declare and pay dividends and
then only at the times and in the amounts that our Board may determine.
Voting
Rights
Holders
of our Common Stock are entitled to one vote for each share held on all matters properly submitted to a vote of stockholders on
which holders of common stock are entitled to vote. We have not provided for cumulative voting for the election of directors in
our Certificate of Incorporation. The directors are elected by a plurality of the outstanding shares entitled to vote on the election
of directors. On all other
No
Preemptive or Similar Rights
Our
Common Stock is not entitled to preemptive rights, and is not subject to conversion, redemption or sinking fund provisions.
Right
to Receive Liquidation Distributions
If
we become subject to a liquidation, dissolution or winding-up, the assets legally available for distribution to our stockholders
would be distributable ratably among the holders of our common stock and any participating preferred stock outstanding at that
time, subject to prior satisfaction of all outstanding debt and liabilities and the preferential rights of and the payment of
liquidation preferences, if any, on any outstanding shares of preferred stock.
Preferred
Stock
Our
Board is authorized, subject to limitations prescribed by the NRS, to issue preferred stock in one or more series, to establish
from time to time the number of shares to be included in each series, and to fix the designation, powers, preferences and rights
of the shares of each Series and any of its qualifications, limitations or restrictions, in each case without further vote or
action by our stockholders. Our Board can also increase (but not above the total number of authorized shares of the class) or
decrease (but not below the number of shares then outstanding) the number of shares of any series of preferred stock, without
any further vote or action by our stockholders. Our Board may authorize the issuance of preferred stock with voting or conversion
rights that could adversely affect the voting power or other rights of the holders of our common stock or other series of preferred
stock. The issuance of preferred stock, while providing flexibility in connection with possible financings, acquisitions and other
corporate purposes, could, among other things, have the effect of delaying, deferring or preventing a change in our control of
our company and might adversely affect the market price of our common stock and the voting and other rights of the holders of
our common stock.
Issuance
of Undesignated Preferred Stock.
Our
Board has the authority, without further action by the stockholders, to issue up to 10,000,000 shares of undesignated preferred
stock with rights and preferences, including voting rights, designated from time to time by our Board.
As
of the date of this Prospectus, there are no Preferred Shares outstanding and we are Offering up to 2,000,000 shares Series B
Preferred which on a share-for-share basis reduces the remaining 48,000,000 authorized shares. Our Series B Preferred are being
issued under this authority.
As
of December 31, 2019, we had no preferred stock issued or outstanding.
The
existence of authorized but unissued shares of preferred stock would enable our Board to render more difficult or to discourage
an attempt to obtain control of us by means of a merger, tender offer, proxy contest or other means.
Transfer
Agent and Registrar
Standard
Registrar & Transfer Co., Inc is the transfer agent with respect of our Common Stock. The principal business address of Standard
Registrar & Transfer Co., Inc. is 440 East 400 South Suite 200 Salt Lake City, UT 84111. Phone: 801-571-8844 Fax: 801-328-4058.
Description
of OFFERED SECURITIES
The
following description summarizes the most important terms of the Units, the Series B Preferred, the Warrants, and the NRS. This
summary does not purport to be complete and is qualified in its entirety by the provisions of our Certificate of Incorporation,
Certificate of Designations of the Series B Preferred, our Bylaws, and the form of Warrant, copies of which have been filed as
exhibits to the registration statement of which this prospectus is a part.
Units
Each
Unit offered hereby consists of (i) one share of Series B Preferred and (ii) five Warrants, each exercisable for a period of five
years from the date of issuance to purchase one additional share of Common Stock at an exercise price of $0.10, subject to adjustment
as disclosed under “Warrants” below. The Units will not be certificated and the shares of Series B Preferred and the
Warrants offered as part of such Units are immediately separable and will be issued separately in this Offering.
Series
B Preferred
General
We
are currently authorized to designate and issue up to 10,000,000 shares of preferred stock, par value $0.001 per share, in one
or more classes or Series and, subject to the limitations prescribed by our Amended and Restated Certificate of Incorporation
and the NRS, with such rights, preferences, privileges and restrictions of each class or series of preferred stock, including
dividend rights, voting rights, terms of redemption, liquidation preferences and the number of shares constituting any class or
Series our Board may determine, without any vote or action by our stockholders. As of the date of this prospectus, we had 2,000,000
authorized but unissued shares of Series B Preferred.
The
Series B Preferred offered hereby will be fully paid and nonassessable. Our Board may, without the approval of holders of the
Series B Preferred or our Common Stock, designate additional series of authorized preferred stock ranking junior to or on parity
with the Series B Preferred and authorize the issuance of such shares. Designation of preferred stock ranking senior to the Series
B Preferred will require approval of the holders of Series B Preferred, as described below in “Voting Rights.”
No
Maturity, Sinking Fund or Mandatory Redemption
The
Series B Preferred has no stated maturity and will not be subject to any sinking fund or mandatory redemption. Shares of the Series
B Preferred will remain outstanding indefinitely unless we decide to redeem or otherwise repurchase them. We are not required
to set aside funds to redeem the Series B Preferred.
Ranking
The
Series B Preferred will rank, with respect to rights to the payment of dividends and the distribution of assets upon our liquidation,
dissolution or winding up:
|
(1)
|
senior
to all classes or series of our common stock (except where common stockholders have contractual rights and preferences described
in paragraph (2) below) and to all other equity securities issued by us other than equity securities referred to in paragraph
(3) below;
|
|
(2)
|
junior
to future equity securities issued by us with terms specifically providing that those equity securities rank senior to the
Series B Preferred with respect to rights to the payment of dividends and the distribution of assets upon our liquidation,
dissolution or winding up (See “Voting Rights” below);
|
|
(3)
|
effectively
junior to all of our existing and future indebtedness (including indebtedness convertible to our common stock or preferred
stock).
|
Dividends
Holders
of shares of Series B Preferred are entitled to receive, when, as and if declared by the Board, out of funds of the Company legally
available for the payment of dividends, cumulative cash dividends at the rate of 13% of the Stated Value of $25 per share per
annum (equivalent to $3.25 per annum per share). Plan of Distribution – Escrow Agreement.” Dividends on the Series
B Preferred are be payable monthly on the 15th day of each month; provided that if any dividend payment date is not
a business day, as defined in the Certificate of Designations, then the dividend that would otherwise have been payable on that
dividend payment date may be paid on the next succeeding business day and no interest, additional dividends or other sums will
accrue on the amount so payable for the period from and after that dividend payment date to that next succeeding business day.
Any dividend payable on the Series B Preferred, including dividends payable for any partial dividend period, will be computed
on the basis of a 360-day year consisting of twelve 30-day months. However, the shares of Series B Preferred offered hereby will
be credited as having accrued dividends since the first day of the calendar month in which they are issued. Dividends will be
payable to holders of record as they appear in our stock records for the Series B Preferred at the close of business on the applicable
Dividend Record Date, which shall be the last day of the calendar month, whether or not a business day, immediately preceding
the month in which the applicable dividend payment date falls. As a result, holders of shares of Series B Preferred will not be
entitled to receive dividends on a dividend payment date if such shares were not issued and outstanding on the applicable Dividend
Record Date.
No
dividends on shares of Series B Preferred shall be authorized by our Board or paid or set apart for payment by us at any time
when the terms and provisions of any agreement of ours, including any agreement relating to our indebtedness, prohibit the authorization,
payment or setting apart for payment thereof or provide that the authorization, payment or setting apart for payment thereof would
constitute a breach of the agreement or a default under the agreement, or if the authorization, payment or setting apart for payment
shall be restricted or prohibited by law. You should review the information appearing above under “Risk Factors—We
may not be able to pay dividends on the Series B Preferred” for information as to, among other things, other circumstances
under which we may be unable to pay dividends on the Series B Preferred.
Notwithstanding
the foregoing, dividends on the Series B Preferred will accrue whether or not we have earnings, whether or not there are funds
legally available for the payment of those dividends and whether or not those dividends are declared by our Board. No interest,
or sum in lieu of interest, will be payable in respect of any dividend payment or payments on the Series B Preferred that may
be in arrears, and holders of the Series B Preferred will not be entitled to any dividends in excess of full cumulative dividends
described above. Any dividend payment made on the Series B Preferred shall first be credited against the earliest accumulated
but unpaid dividend due with respect to those shares.
Future
distributions on our common stock and preferred stock, including the Series B Preferred will be at the discretion of our Board
and will depend on, among other things, our results of operations, cash flow from operations, financial condition and capital
requirements, any debt service requirements and any other factors our Board deems relevant. Accordingly, we cannot guarantee that
we will be able to make cash distributions on our preferred stock or what the actual distributions will be for any future period.
Unless
full cumulative dividends on all shares of Series B Preferred have been or contemporaneously are declared and paid or declared
and a sum sufficient for the payment thereof has been or contemporaneously is set apart for payment for all past dividend periods,
no dividends (other than in shares of common stock or in shares of any series of preferred stock that we may issue ranking junior
to the Series B Preferred as to the payment of dividends and the distribution of assets upon liquidation, dissolution or winding
up) shall be declared or paid or set aside for payment upon shares of our common stock or preferred stock that we may issue ranking
junior to, or on a parity with, the Series B Preferred as to the payment of dividends or the distribution of assets upon liquidation,
dissolution or winding up. Nor shall any other distribution be declared or made on shares of our common stock or preferred stock
that we may issue ranking junior to, or on a parity with, the Series B Preferred as to the payment of dividends or the distribution
of assets upon liquidation, dissolution or winding up. Also, any shares of our common stock or preferred stock that we may issue
ranking junior to or on a parity with the Series B Preferred as to the payment of dividends or the distribution of assets upon
liquidation, dissolution or winding up shall not be redeemed, purchased or otherwise acquired for any consideration (or any moneys
paid to or made available for a sinking fund for the redemption of any such shares) by us (except by conversion into or exchange
for our other capital stock that we may issue ranking junior to the Series B Preferred as to the payment of dividends and the
distribution of assets upon liquidation, dissolution or winding up).
When
dividends are not paid in full (or a sum sufficient for such full payment is not so set apart) upon the Series B Preferred and
the shares of any other series of preferred stock that we may issue ranking on a parity as to the payment of dividends with the
Series B Preferred, all dividends declared on the Series B Preferred and any other series of preferred stock that we may issue
ranking on a parity as to the payment of dividends with the Series B Preferred shall be declared pro rata so that the amount of
dividends declared per share of Series B Preferred and such other series of preferred stock that we may issue shall in all cases
bear to each other the same ratio that accrued dividends per share on the Series B Preferred and such other series of preferred
stock that we may issue (which shall not include any accrual in respect of unpaid dividends for prior dividend periods if such
preferred stock does not have a cumulative dividend) bear to each other. No interest, or sum of money in lieu of interest, shall
be payable in respect of any dividend payment or payments on the Series B Preferred that may be in arrears.
Liquidation
Preference
In
the event of our voluntary or involuntary liquidation, dissolution or winding up, the holders of shares of Series B Preferred
will be entitled to be paid out of the assets we have legally available for distribution to our stockholders, with respect to
the distribution of assets upon liquidation, dissolution or winding up, a liquidation preference of $25 per share, plus an amount
equal to any accumulated and unpaid dividends to, but not including, the date of payment, before any distribution of assets is
made to holders of our common stock or any other class or series of our capital stock we may issue that ranks junior to the Series
B Preferred as to liquidation rights.
In
the event that, upon any such voluntary or involuntary liquidation, dissolution or winding up, our available assets are insufficient
to pay the amount of the liquidating distributions on all outstanding shares of Series B Preferred and the corresponding amounts
payable on all shares of other classes or series of our capital stock that we may issue ranking on a parity with the Series B
Preferred in the distribution of assets, then the holders of the Series B Preferred and all other such classes or series of capital
stock shall share ratably in any such distribution of assets in proportion to the full liquidating distributions to which they
would otherwise be respectively entitled.
Holders
of Series B Preferred will be entitled to written notice of any such liquidation, dissolution or winding up of no fewer than 30
days and no more than 60 days prior to the payment date. After payment of the full amount of the liquidating distributions to
which they are entitled, the holders of Series B Preferred will have no right or claim to any of our remaining assets. The consolidation
or merger of us with or into any other corporation, trust or entity or of any other entity with or into us, or the sale, lease,
transfer or conveyance of all or substantially all of our property or business, shall not be deemed a liquidation, dissolution
or winding up of us (although such events may give rise to the special optional redemption to the extent described below).
Redemption
The
Series B Preferred is not redeemable by us prior to the three-year anniversary of the date of first issuance of each respective
share, except upon a change of control.
On
and after the three year anniversary of the date of each issuance, we may, at our option and upon not less than 30 nor more than
60 days’ written notice, redeem the Series B Preferred, in whole or in part, at any time or from time to time, for cash
at a redemption price of $25 per share, plus any accumulated and unpaid dividends thereon to, but not including, the date fixed
for redemption.
Upon
the occurrence of a change of control, whether before or after the three year anniversary of the date of the first issuance, we
may, at our option, upon not less than 30 nor more than 60 days’ written notice, redeem the Series B Preferred, in whole
or in part, within 120 days after notice of such Change of Control, for cash at a redemption price of $25 per share, plus any
accumulated and unpaid dividends thereon to, but not including, the redemption date.
A
“Change of Control” is deemed to occur when any person, including any syndicate or group deemed to be a “person”
under Section 13(d)(3) of the Exchange Act of beneficial ownership, directly or indirectly, through a purchase, merger or other
acquisition transaction or series of purchases, mergers or other acquisition transactions shall have acquired our stock entitling
that person to exercise more than 50% of the total voting power of all our stock entitled to vote generally in the election of
our directors (except that such person will be deemed to have beneficial ownership of all securities that such person has the
right to acquire, whether such right is currently exercisable or is exercisable only upon the occurrence of a subsequent condition).
Redemption
Procedures
In
the event we elect to redeem Series B Preferred, the notice of redemption will be mailed to each holder of record of the Series
B Preferred called for redemption at such holder’s address as it appear on our stock transfer records, not less than 30
nor more than 60 days prior to the redemption date, and will state the following:
|
●
|
the
redemption date;
|
|
●
|
the
number of shares of Series B Preferred to be redeemed;
|
|
●
|
the
redemption price of $25 per share plus any accrued but unpaid dividends;
|
|
●
|
the
place or places where certificates (if any) for the Series B Preferred are to be surrendered for payment of the redemption
price;
|
|
●
|
that
dividends on the shares to be redeemed will cease to accumulate on the redemption date;
|
|
●
|
if
applicable, that such redemption is being made in connection with a Change of Control and, in that case, a brief description
of the transaction or transactions constituting such Change of Control.
|
If
less than all of the Series B Preferred held by any holder are to be redeemed, the notice mailed to such holder shall also specify
the number of shares of Series B Preferred held by such holder to be redeemed. No failure to give such notice or any defect thereto
or in the mailing thereof shall affect the validity of the proceedings for the redemption of any shares of Series B Preferred
except as to the holder to whom notice was defective or not given.
Holders
of Series B Preferred to be redeemed shall surrender the Series B Preferred at the place designated in the notice of redemption
and shall be entitled to the redemption price and any accumulated and unpaid dividends payable upon the redemption following the
surrender. If notice of redemption of any shares of Series B Preferred has been given and if we have irrevocably set aside the
funds necessary for redemption in trust for the benefit of the holders of the shares of Series B Preferred so called for redemption,
then from and after the redemption date (unless default shall be made by us in providing for the payment of the redemption price
plus accumulated and unpaid dividends, if any), dividends will cease to accrue on those shares of Series B Preferred, those shares
of Series B Preferred shall no longer be deemed outstanding and all rights of the holders of those shares will terminate, except
the right to receive the redemption price plus accumulated and unpaid dividends, if any, payable upon redemption. If any redemption
date is not a business day, then the redemption price and accumulated and unpaid dividends, if any, payable upon redemption may
be paid on the next business day and no interest, additional dividends or other sums will accrue on the amount payable for the
period from and after that redemption date to that next business day. If less than all of the outstanding Series B Preferred is
to be redeemed, the Series B Preferred to be redeemed shall be selected pro rata (as nearly as may be practicable without creating
fractional shares) or by any other equitable method we determine.
In
connection with any redemption of Series B Preferred, we shall pay, in cash, any accumulated and unpaid dividends to, but not
including, the redemption date, unless a redemption date falls after a Dividend Record Date and prior to the corresponding dividend
payment date, in which case each holder of Series B Preferred at the close of business on such Dividend Record Date shall be entitled
to the dividend payable on such shares on the corresponding dividend payment date notwithstanding the redemption of such shares
before such dividend payment date. Except as provided above, we will make no payment or allowance for unpaid dividends, whether
or not in arrears, on shares of the Series B Preferred to be redeemed.
Unless
full cumulative dividends on all shares of Series B Preferred have been or contemporaneously are declared and paid or declared
and a sum sufficient for the payment thereof has been or contemporaneously is set apart for payment for all past dividend periods,
no shares of Series B Preferred shall be redeemed unless all outstanding shares of Series B Preferred are simultaneously redeemed
and we shall not purchase or otherwise acquire directly or indirectly any shares of Series B Preferred (except by exchanging it
for our capital stock ranking junior to the Series B Preferred as to the payment of dividends and distribution of assets upon
liquidation, dissolution or winding up); provided, however, that the foregoing shall not prevent the purchase or acquisition by
us of shares of Series B Preferred pursuant to a purchase or exchange offer made on the same terms to holders of all outstanding
shares of Series B Preferred.
Subject
to applicable law, we may purchase shares of Series B Preferred in the open market, by tender or by private agreement. Any shares
of Series B Preferred that we acquire may be retired and reclassified as authorized but unissued shares of preferred stock, without
designation as to class or series, and may thereafter be reissued as any class or series of preferred stock.
Voting
Rights
Holders
of the Series B Preferred do not have any voting rights, except as set forth below or as otherwise required by the NRS.
On
each matter on which holders of Series B Preferred are entitled to vote, each share of Series B Preferred will be entitled to
one vote.
So
long as any shares of Series B Preferred remain outstanding, we will not, without the affirmative vote or consent of the holders
of at least two-thirds of the votes entitled to be cast by the holders of the Series B Preferred outstanding at the time, given
in person or by proxy, either in writing or at a meeting (voting together as a class with all other series of parity preferred
stock that we may issue upon which like voting rights have been conferred and are exercisable), (a) authorize or create, or increase
the authorized or issued amount of, any class or series of capital stock ranking senior to the Series B Preferred with respect
to payment of dividends or the distribution of assets upon liquidation, dissolution or winding up or reclassify any of our authorized
capital stock into such shares, or create, authorize or issue any obligation or security convertible into or evidencing the right
to purchase any such shares; or (b) amend, alter, repeal or replace our amended and restated Certificate of Incorporation, including
by way of a merger, consolidation or otherwise in which we may or may not be the surviving entity, so as to materially and adversely
affect and deprive holders of Series B Preferred of any right, preference, privilege or voting power of the Series B Preferred
(each, an “Event”). An increase in the amount of the authorized preferred stock, including the Series B Preferred,
or the creation or issuance of any additional Series B Preferred or other series of preferred stock that we may issue, or any
increase in the amount of authorized shares of such series, in each case ranking on a parity with or junior to the Series B Preferred
with respect to payment of dividends or the distribution of assets upon liquidation, dissolution or winding up, shall not be deemed
an Event and will not require us to obtain two-thirds of the votes entitled to be cast by the holders of the Series B Preferred
and all such other similarly affected series, outstanding at the time (voting together as a class).
The
foregoing voting provisions will not apply if, at or prior to the time when the act with respect to which such vote would otherwise
be required shall be effected, all outstanding shares of Series B Preferred shall have been redeemed or called for redemption
upon proper notice and sufficient funds shall have been deposited in trust to effect such redemption.
Except
as expressly stated in the Certificate of Designations, filed as Exhibit __ hereto, or as may be required by applicable law, the
Series B Preferred do not have any relative, participating, optional or other special voting rights or powers and the consent
of the holders thereof shall not be required for the taking of any corporate action.
No
Conversion Rights
The
Series B Preferred is not convertible into our common stock or any other security of the Company.
No
Preemptive Rights
The
holders of the Series B Preferred will not, as holders of Series B Preferred, have any preemptive rights to purchase or subscribe
for our common stock or any other security.
Change
of Control
Provisions
in our Certificate of Incorporation and Bylaws may make it difficult and expensive for a third party to pursue a tender offer,
change of control or takeover attempt, which is opposed by management and our Board.
Anti-Dilution
Rights
The
Certificate of Designations for the Series B Preferred provides that if we effect a stock dividend, a stock split or a reverse
split of the Series B Preferred, the dividend and redemption rates will be proportionately adjusted.
Warrants
Holders
of each Warrant may purchase one share of our Common Stock at an exercise price of $_.00 per share, subject to adjustment as discussed
below under “Exercise Price/Adjustment”, immediately following the sale of each Unit and terminating at 5:00 p.m.,
New York City time, for a period of five years after the date of issuance.
Exercisability
The
Warrants are exercisable at any time after their original issuance and at any time up to the date that is five years after their
original issuance. The Warrants may be exercised upon surrender of the Warrant certificate on or prior to the expiration date
at the offices of our stock transfer agent , with the exercise form on the reverse side of the Warrant certificate completed and
executed as indicated, accompanied by full payment of the exercise price, by certified or official bank check payable to us, for
the number of warrants being exercised.
Exercise
Limitation
A
holder may not exercise any portion of a Warrant to the extent that the holder, together with its affiliates and any other person
or entity acting as a group, would own more than 4.99% of the outstanding common stock after exercise, as such percentage ownership
is determined in accordance with the terms of the Warrant, except that upon prior notice from the holder to us, the holder may
waive such limitation up to a percentage not in excess of 9.99%.
Exercise
Price/Adjustment
The
exercise price of the Warrants is $_.00 per share (“Exercise Price”). The Exercise Price is subject to proportionate
adjustment in the event of certain stock dividends and distributions, stock splits, reverse splits, reclassifications or similar
events affecting our common stock.
In
addition, the exercise price of the Warrants is subject to adjustment in the event during the five year exercise period from the
original issuance of the Warrants, if we sell any shares of our Common Stock or securities exchangeable or exercisable or convertible
into our Common Stock, subject to certain exceptions, at a price per share less than the exercise price of the Warrants then in
effect or without consideration.
Fractional
Shares
No
fractional shares of our common stock will be issued upon exercise of the Warrants. If, upon exercise of any Warrant, a holder
would be entitled to receive a fractional interest in a share of our common stock, we will, upon exercise, round up to the number
of shares of commons stock to the next whole share.
Transferability
Subject
to applicable laws, the Warrants may be offered for sale, sold, transferred or assigned without our consent.
Warrant
Agent; Global Certificate
The
Warrants will be issued in registered form under a warrant agent agreement between the Warrant Agent and us. The Warrants shall
initially be represented only by one or more global warrants deposited with the Warrant Agent, as custodian on behalf of The Depository
Trust Company (DTC) and registered in the name of Cede & Co., a nominee of DTC, or as otherwise directed by DTC.
Rights
as a Stockholder
The
Warrant holders do not have the rights or privileges of holders of our common stock or any voting rights until their respective
Warrants are exercised and shares of our common stock are issued upon such exercise. After the issuance of shares of common stock
upon exercise of the Warrants, each holder will be entitled to one vote for each share held of record on all matters on which
our stockholders are entitled to vote.
Governing
Law
The
Warrants and he warrant agent agreement are governed by Nevada law.
Trading
Market
We
expect that the Units, the Series B Preferred and the Warrants will be quoted on the OTCQB under the symbols INVUU, INVUB AND
INVUW, respectively.
Our
goal is to apply to Nasdaq or OTCQX or OTCQB to list our Common Stock, Units, Series B Preferred, and Warrants on that exchange
but there can be no assurance that any of our securities will, in fact, qualify for listing or quotation on Nasdaq or the OTCQX
or OTCQB. We presently do not meet all of Nasdaq’s quantitative initial listing
requirements or the OTCQX quotation requirements. If in the future we believe we do comply with the Nasdaq initial listing quantitative
requirements, we must also meet its qualitative requirements. We cannot assure you that any of our securities will be listed on
Nasdaq, OTCQX or OTCQB. However, our plan is to have the initial closing of our Units after the sale of 200,000 Units, resulting
in proceeds of $5.0 million which will qualify for quotation on the OTCQB, provided that we have the minimum number of holders
of the Series B Preferred and Warrants. See “Risk Factors.”
Transfer
Agent and Registrar
Standard
Registrar & Transfer Co., Inc will act as the registrar, transfer agent and dividend and redemption price disbursing agent
in respect of the Series B Preferred. The principal business address of Standard Registrar & Transfer Co., Inc. is 440 East
400 South Suite 200 Salt Lake City, UT 84111. Phone: 801-571-8844 Fax: 801-328-4058.
Certain
U.S. Federal Income Tax Considerations
The
following discussion summarizes certain U.S. federal income tax considerations that may be applicable to “U.S. holders”
and “non-U.S. holders” (each as defined below) with respect to the purchase, ownership and disposition of the Series
B Preferred offered by this prospectus. This discussion only applies to purchasers who purchase and hold the Series B Preferred
as a capital asset within the meaning of Section 1221 of the Code (generally property held for investment). This discussion does
not describe all of the tax consequences that may be relevant to each purchaser or holder of the Series B Preferred in light of
its particular circumstances.
This
discussion is based upon provisions of the Code, Treasury regulations, rulings and judicial decisions as of the date hereof. These
authorities may change, perhaps retroactively, which could result in U.S. federal income tax consequences different from those
summarized below. This discussion does not address all aspects of U.S. federal income taxation (such as the alternative minimum
tax) and does not describe any foreign, state, local or other tax considerations that may be relevant to a purchaser or holder
of the Series B Preferred in light of their particular circumstances. In addition, this discussion does not describe the U.S.
federal income tax consequences applicable to a purchaser or a holder of the Series B Preferred who is subject to special treatment
under U.S. federal income tax laws (including, a corporation that accumulates earnings to avoid U.S. federal income tax, a pass-through
entity or an investor in a pass-through entity, a tax-exempt entity, pension or other employee benefit plans, financial institutions
or broker-dealers, persons holding the Series B Preferred as part of a hedging or conversion transaction or straddle, a person
subject to the alternative minimum tax, an insurance company, former U.S. citizens or former long-term U.S. residents). We cannot
assure you that a change in law will not significantly alter the tax considerations that we describe in this discussion.
If
a partnership (or any other entity treated as a partnership for U.S. federal income tax purposes) holds the Series B Preferred,
the U.S. federal income tax treatment of a partner of that partnership generally will depend upon the status of the partner and
the activities of the partnership. If you are a partnership or a partner of a partnership holding the Series B Preferred, you
should consult your tax advisors as to the particular U.S. federal income tax consequences of holding and disposing of the Series
B Preferred.
You
should consult your own tax advisor concerning the U.S. federal income tax consequences to you of acquiring, owning, and disposing
of these securities, as well as any tax consequences arising under the laws of any state, local, foreign, or other tax jurisdiction
and the possible effects of changes in U.S. federal or other tax laws.
U.S.
Holders
Subject
to the qualifications set forth above, the following discussion summarizes certain U.S. federal income tax considerations that
may relate to the purchase, ownership and disposition of the Series B Preferred by “U.S. holders.” You are a “U.S.
holder” if you are a beneficial owner of Series B Preferred and you are for U.S. federal income tax purposes;
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an
individual citizen or resident of the United States;
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a
corporation (or other entity treated as a corporation for U.S. federal income tax purposes) created or organized in or under
the laws of the United States, any state thereof or the District of Columbia;
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an
estate the income of which is subject to U.S. federal income taxation regardless of its source; or
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a
trust if it (i) is subject to the primary supervision of a court within the United States and one or more United States persons
have the authority to control all substantial decisions of the trust or (ii) has a valid election in effect under applicable
United States Treasury regulations to be treated as a United States person.
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Distributions
in General. If distributions are made with respect to the Series B Preferred, such distributions will be treated
as dividends to the extent of our current or accumulated earnings and profits as determined under the Code. We do not, however,
currently have current or accumulated earnings and profits. Any portion of a distribution that exceeds such earnings and profits
will first be applied to reduce a U.S. holder’s tax basis in the Series B Preferred on a share-by-share basis, and the excess
will be treated as gain from the disposition of the Series B Preferred, the tax treatment of which is discussed below under “Certain
U.S. Federal Income Tax Considerations – U.S. Holders: Disposition of Series B Preferred, Including Redemptions.”
Under
current law, dividends received by individual holders of the Series B Preferred will be subject to a reduced maximum tax rate
of 20% if such dividends are treated as “qualified dividend income” for U.S. federal income tax purposes. The rate
reduction does not apply to dividends received to the extent that the individual shareholder elects to treat the dividends as
“investment income,” which may be offset against investment expenses. Furthermore, the rate reduction does not apply
to dividends that are paid to individual stockholders with respect to Series B Preferred that is held for 60 days or less during
the 121 day period beginning on the date which is 60 days before the date on which the Series B Preferred becomes ex-dividend
(or where the dividend is attributable to a period or periods in excess of 366 days, Series B Preferred that is held for 90 days
or less during the 181 day period beginning on the date which is 90 days before the date on which the Series B Preferred becomes
ex-dividend). Also, if a dividend received by an individual shareholder that qualifies for the rate reduction is an “extraordinary
dividend” within the meaning of Section 1059 of the Code, any loss recognized by such individual shareholder on a subsequent
disposition of the stock will be treated as long-term capital loss to the extent of such “extraordinary dividend,”
irrespective of such shareholder’s holding period for the stock. In addition, dividends recognized by U.S. holders that
are individuals could be subject to the 3.8% tax on net investment income. Individual stockholders should consult their own tax
advisors regarding the implications of these rules in light of their particular circumstances.
Dividends
received by corporate stockholders generally will be eligible for the dividends-received deduction. Generally, this deduction
is allowed if the underlying stock is held for at least 46 days during the 91 day period beginning on the date 45 days before
the ex-dividend date of the stock, and for cumulative preferred stock with an arrearage of dividends attributable to a period
in excess of 366 days, the holding period is at least 91 days during the 181 day period beginning on the date 90 days before the
ex-dividend date of the stock. Corporate stockholders of the Series B Preferred should also consider the effect of Section 246A
of the Code, which reduces the dividends-received deduction allowed to a corporate shareholder that has incurred indebtedness
that is “directly attributable” to an investment in portfolio stock such as preferred stock. If a corporate shareholder
receives a dividend on the Series B Preferred that is an “extraordinary dividend” within the meaning of Section 1059
of the Code, the shareholder in certain instances must reduce its basis in the Series B Preferred by the amount of the “nontaxed
portion” of such “extraordinary dividend” that results from the application of the dividends-received deduction.
If the “nontaxed portion” of such “extraordinary dividend” exceeds such corporate shareholder’s
basis, any excess will be taxed as gain as if such shareholder had disposed of its shares in the year the “extraordinary
dividend” is paid. Each domestic corporate holder of the Series B Preferred is urged to consult with its tax advisors with
respect to the eligibility for and the amount of any dividends received deduction and the application of Code Section 1059 to
any dividends it may receive on the Series B Preferred.
Constructive
Distributions on Series B Preferred. A distribution by a corporation of its stock deemed made with respect to its
preferred stock is treated as a distribution of property to which Section 301 of the Code applies. If a corporation issues preferred
stock that may be redeemed at a price higher than its issue price, the excess (a “redemption premium”) is treated
under certain circumstances as a constructive distribution (or series of constructive distributions) of additional preferred stock.
The constructive distribution of property equal to the redemption premium would accrue without regard to the holder’s method
of accounting for U.S. federal income tax purposes at a constant yield determined under principles similar to the determination
of original issue discount (“OID”) pursuant to Treasury regulations under Sections 1271 through 1275 of the Code (the
“OID Rules”). The constructive distributions of property would be treated for U.S. federal income tax purposes as
actual distributions of the Series B Preferred that would constitute a dividend, return of capital or capital gain to the holder
of the stock in the same manner as cash distributions described under “Certain U.S. Federal Income Tax Considerations –
U.S. Holders: Distributions in General.” The application of principles similar to those applicable to debt instruments with
OID to a redemption premium for the Series B Preferred is uncertain.
We
have the right to call the Series B Preferred for redemption on or after November 4, 2020 (the “call option”), and
have the option to redeem the Series B Preferred upon any Change of Control (the “contingent call option”). The stated
redemption price of the Series B Preferred upon any redemption pursuant to our call option or contingent call option is equal
to the liquidation preference of the Series B Preferred (i.e., $25.00, plus accrued and unpaid dividends) and is payable in cash.
If
the redemption price of the Series B Preferred exceeds the issue price of the Series B Preferred Stock upon any redemption pursuant
to our call option or contingent call option, the excess will be treated as a redemption premium that may result in certain circumstances
in a constructive distribution or series of constructive distributions to U.S. holders of additional Series B Preferred. The redemption
price for the Series B Preferred should be the liquidation preference of the Series B Preferred Assuming that the issue price
of the Series B Preferred is determined under principles similar to the OID Rules, the issue price for the Series B Preferred
should be the initial Offering price to the public (excluding bond houses and brokers) at which a substantial amount of the Series
B Preferred is sold.
A
redemption premium for the Series B Preferred should not result in constructive distributions to U.S. holders of the Series B
Preferred if the redemption premium is less than a de-minimis amount as determined under principles similar to the OID Rules.
A redemption premium for the Series B Preferred should be considered de-minimis if such premium is less than .0025 of the Series
B Preferred liquidation value of $__ at maturity, multiplied by the number of complete years to maturity. Because the determination
under the OID Rules of a maturity date for the Series B Preferred is unclear, the remainder of this discussion assumes that the
Series B Preferred is issued with a redemption premium greater than a de-minimis amount.
The
call option should not require constructive distributions of the redemption premium, if based on all of the facts and circumstances
as of the issue date, a redemption pursuant to the call option is not more likely than not to occur. The Treasury regulations
provide that an issuer’s right to redeem will not be treated as more likely than not to occur if: (i) the issuer and the
holder of the stock are not related within the meaning of Section 267(b) or Section 707(b) of the Code (substituting “20%”
for the phrase “50%); (ii) there are no plans, arrangements, or agreements that effectively require or are intended to compel
the issuer to redeem the stock; and (iii) exercise of the right to redeem would not reduce the yield on the stock determined using
principles applicable to the determination of OID under the OID Rules. The fact that a redemption right is not within the safe
harbor described in the preceding sentence does not mean that an issuer’s right to redeem is more likely than not to occur
and the issuer’s right to redeem must still be tested under all the facts and circumstances to determine if it is more likely
than not to occur. We do not believe that a redemption pursuant to the call option should be treated as more likely than not to
occur under the foregoing test. Accordingly, no U.S. holder of the Series B Preferred should be required to recognize constructive
distributions of the redemption premium because of our call option.
Disposition
of Series B Preferred, Including Redemptions. Upon any sale, exchange, redemption (except as discussed below) or
other disposition of the Series B Preferred, a U.S. holder will recognize capital gain or loss equal to the difference between
the amount realized by the U.S. holder and the U.S. holder’s adjusted tax basis in the Series B Preferred. Such capital
gain or loss will be long-term capital gain or loss if the U.S. holder’s holding period for the Series B Preferred is longer
than one year. A U.S. holder should consult its own tax advisors with respect to applicable tax rates and netting rules for capital
gains and losses. Certain limitations exist on the deduction of capital losses by both corporate and non-corporate taxpayers.
In addition, gains recognized by U.S. holders that are individuals could be subject to the 3.8% tax on net investment income.
A
redemption of shares of the Series B Preferred will generally be a taxable event. If the redemption is treated as a sale or exchange,
instead of a dividend, a U.S. holder will recognize capital gain or loss (which will be long-term capital gain or loss, if the
U.S. holder’s holding period for such Series B Preferred exceeds one year) equal to the difference between the amount realized
by the U.S. holder and the U.S. holder’s adjusted tax basis in the Series B Preferred redeemed, except to the extent that
any cash received is attributable to any accrued but unpaid dividends on the Series B Preferred, which will be subject to the
rules discussed above in “Certain U.S. Federal Income Tax Considerations – U.S. Holders: Distributions in General.”
A payment made in redemption of Series B Preferred may be treated as a dividend, rather than as payment in exchange for the Series
B Preferred, unless the redemption:
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is
“not essentially equivalent to a dividend” with respect to a U.S. holder under Section 302(b)(1) of the Code;
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is
a “substantially disproportionate” redemption with respect to a U.S. holder under Section 302(b)(2) of the Code;
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results
in a “complete redemption” of a U.S. holder’s stock interest in the company under Section 302(b)(3) of the
Code; or
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is
a redemption of stock held by a non-corporate shareholder, which results in a partial liquidation of the company under Section
302(b)(4) of the Code.
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In
determining whether any of these tests has been met, a U.S. holder must take into account not only shares of the Series B Preferred
and the common stock that the U.S. Holder actually owns, but also shares of stock that the U.S. holder constructively owns within
the meaning of Section 318 of the Code.
A
redemption payment will be treated as “not essentially equivalent to a dividend” if it results in a “meaningful
reduction” in a U.S. holder’s aggregate stock interest in the company, which will depend on the U.S. holder’s
particular facts and circumstances at such time. If the redemption payment is treated as a dividend, the rules discussed above
in “Certain U.S. Federal Income Tax Considerations – U.S. Holders: Distributions in General” apply.
Satisfaction
of the “complete redemption” and “substantially disproportionate” exceptions is dependent upon compliance
with the objective tests set forth in Section 302(b)(3) and Section 302(b)(2) of the Code, respectively. A redemption will result
in a “complete redemption” if either all of the shares of our stock actually and constructively owned by a U.S. holder
are exchanged in the redemption or all of the shares of our stock actually owned by the U.S. holder are exchanged in the redemption
and the U.S. holder is eligible to waive, and the U.S. holder effectively waives, the attribution of shares of our stock constructively
owned by the U.S. holder in accordance with the procedures described in Section 302(c)(2) of Code. A redemption does not qualify
for the “substantially disproportionate” exception if the stock redeemed is only non-voting stock, and for this purpose,
stock which does not have voting rights until the occurrence of an event is not voting stock until the occurrence of the specified
event. Accordingly, any redemption of the Series B Preferred generally will not qualify for this exception because the voting
rights are limited as provided in the “Description of Series B Preferred -Voting Rights.” For purposes of the “redemption
from non-corporate stockholders in a partial liquidation” test, a distribution will be treated as in partial liquidation
of a corporation if the distribution is not essentially equivalent to a dividend (determined at the corporate level rather than
the shareholder level) and the distribution is pursuant to a plan and occurs within the taxable year in which the plan was adopted
or within the succeeding taxable year. For these purposes, a distribution is generally not essentially equivalent to a dividend
if the distribution results in a corporate contraction. The determination of what constitutes a corporate contraction is factual
in nature, and has been interpreted under case law to include the termination of a business or line of business. Each U.S. holder
of the Series B Preferred should consult its own tax advisors to determine whether a payment made in redemption of the Series
B Preferred will be treated as a dividend or a payment in exchange for the Series B Preferred. If the redemption payment is treated
as a dividend, the rules discussed above in “Certain U.S. Federal Income Tax Considerations – U.S. Holders: Distributions
in General” apply. Under proposed Treasury regulations, if any amount received by a U.S. holder in redemption of Series
B Preferred is treated as a distribution with respect to such holder’s Series B Preferred, but not as a dividend, such amount
will be allocated to all shares of the Series B Preferred held by such holder immediately before the redemption on a pro rata
basis. The amount applied to each share will reduce such holder’s adjusted tax basis in that share and any excess after
the basis is reduced to zero will result in taxable gain. If such holder has different bases in shares of the Series B Preferred,
then the amount allocated could reduce a portion of the basis in certain shares while reducing all of the basis, and giving rise
to taxable gain, in other shares. Thus, such holder could have gain even if such holder’s aggregate adjusted tax basis in
all shares of the Series B Preferred held exceeds the aggregate amount of such distribution.
The
proposed Treasury regulations permit the transfer of basis in the redeemed shares of the Series B Preferred to the holder’s
remaining, unredeemed Series B Preferred (if any), but not to any other class of stock held, directly or indirectly, by the holder.
Any unrecovered basis in the Series B Preferred would be treated as a deferred loss to be recognized when certain conditions are
satisfied. The proposed Treasury regulations would be effective for transactions that occur after the date the regulations are
published as final Treasury regulations. There can, however, be no assurance as to whether, when and in what particular form such
proposed Treasury regulations are ultimately finalized.
Information
Reporting and Backup Withholding. Information reporting and backup withholding may apply with respect to payments of dividends
on the Series B Preferred and to certain payments of proceeds on the sale or other disposition of the Series B Preferred. Certain
non-corporate U.S. holders may be subject to U.S. backup withholding (currently at a rate of 24%) on payments of dividends on
the Series B Preferred and certain payments of proceeds on the sale or other disposition of the Series B Preferred unless the
beneficial owner thereof furnishes the payor or its agent with a taxpayer identification number, certified under penalties of
perjury, and certain other information, or otherwise establishes, in the manner prescribed by law, an exemption from backup withholding.
U.S. backup withholding tax is not an additional tax. Any amounts withheld under the backup withholding rules may be allowed as
a refund or a credit against a U.S. holder’s U.S. federal income tax liability, which may entitle the U.S. holder to a refund,
provided the U.S. holder timely furnishes the required information to the Internal Revenue Service.
Non-U.S.
Holders
Subject
to the qualifications set forth above under the caption “Certain U.S. Federal Income Tax Considerations,” the following
discussion summarizes certain U.S. federal income tax consequences of the purchase, ownership and disposition of the Series B
Preferred by certain “Non-U.S. holders.” You are a “Non-U.S. holder” if you are a beneficial owner of
the Series B Preferred and you are not a “U.S. holder.”
Distributions
on the Series B Preferred. If distributions are made with respect to the Series B Preferred, such distributions
will be treated as dividends to the extent of our current and accumulated earnings and profits as determined under the Code and
may be subject to withholding as discussed below. Any portion of a distribution that exceeds our current and accumulated earnings
and profits will first be applied to reduce the Non-U.S. holder’s basis in the Series B Preferred and, to the extent such
portion exceeds the Non-U.S. holder’s basis, the excess will be treated as gain from the disposition of the Series B Preferred,
the tax treatment of which is discussed below under “Certain U.S. Federal Income Tax Considerations – Non-U.S. Holders:
Disposition of Series B Preferred, Including Redemptions.” In addition, if we are a U.S. real property holding corporation,
i.e. a “USRPHC,” and any distribution exceeds our current and accumulated earnings and profits, we will need to choose
to satisfy our withholding requirements either by treating the entire distribution as a dividend, subject to the withholding rules
in the following paragraph (and withhold at a minimum rate of 30% or such lower rate as may be specified by an applicable income
tax treaty for distributions from a USRPHC), or by treating only the amount of the distribution equal to our reasonable estimate
of our current and accumulated earnings and profits as a dividend, subject to the withholding rules in the following paragraph,
with the excess portion of the distribution subject to withholding at a rate of 15% or such lower rate as may be specified by
an applicable income tax treaty as if such excess were the result of a sale of shares in a USRPHC (discussed below under “Certain
U.S. Federal Income Tax Considerations – Non-U.S. Holders: Disposition of Series B Preferred, Including Redemptions”),
with a credit generally allowed against the Non-U.S. holder’s U.S. federal income tax liability in an amount equal to the
amount withheld from such excess.
Dividends
paid to a Non-U.S. holder of the Series B Preferred will be subject to withholding of U.S. federal income tax at a 30% rate or
such lower rate as may be specified by an applicable income tax treaty. However, dividends that are effectively connected with
the conduct of a trade or business by the Non-U.S. holder within the United States (and, where a tax treaty applies, are attributable
to a permanent establishment maintained by the Non-U.S. holder in the United States) are not subject to the withholding tax, provided
that certain certification and disclosure requirements are satisfied including completing Internal Revenue Service Form W-8ECI
(or other applicable form). Instead, such dividends are subject to U.S. federal income tax on a net income basis in the same manner
as if the Non-U.S. holder were a United States person as defined under the Code, unless an applicable income tax treaty provides
otherwise. Any such effectively connected dividends received by a foreign corporation may be subject to an additional “branch
profits tax” at a 30% rate or such lower rate as may be specified by an applicable income tax treaty. A Non-U.S. holder
of the Series B Preferred who wishes to claim the benefit of an applicable treaty rate and avoid backup withholding, as discussed
below, for dividends will be required to (i) complete Internal Revenue Service Form W-8BEN or Form W-8BEN-E (or other applicable
form) and certify under penalty of perjury that such holder is not a United States person as defined under the Code and is eligible
for treaty benefits, or (ii) if the Series B Preferred is held through certain foreign intermediaries, satisfy the relevant certification
requirements of applicable Treasury regulations. A Non-U.S. holder of the Series B Preferred eligible for a reduced rate of U.S.
withholding tax pursuant to an income tax treaty may obtain a refund of any excess amounts withheld by timely filing an appropriate
claim for refund with the Internal Revenue Service.
Disposition
of Series B Preferred, Including Redemptions. Any gain realized by a Non-U.S. holder on the disposition of the
Series B Preferred will not be subject to U.S. federal income or withholding tax unless:
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the
gain is effectively connected with a trade or business of the Non-U.S. holder in the United States (and, if required by an
applicable income tax treaty, is attributable to a permanent establishment maintained by the Non-U.S. holder in the United
States);
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the
Non-U.S. holder is an individual who is present in the United States for 183 days or more in the taxable year of disposition,
and certain other conditions are met; or
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we
are or have been a USRPHC for U.S. federal income tax purposes, as such term is defined in Section 897I of the Code, and such
Non-U.S. holder owned directly or pursuant to attribution rules at any time during the five year period ending on the date
of disposition more than 5% of the Series B Preferred. This assumes that the Series B Preferred is regularly traded on an
established securities market, within the meaning of Section 897(c)(3) of the Code.
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A
Non-U.S. holder described in the first bullet point immediately above will generally be subject to tax on the net gain derived
from the sale under regular graduated U.S. federal income tax rates in the same manner as if the Non-U.S. holder were a United
States person as defined under the Code, and if it is a corporation, may also be subject to the branch profits tax equal to 30%
of its effectively connected earnings and profits or at such lower rate as may be specified by an applicable income tax treaty.
An individual Non-U.S. holder described in the second bullet point immediately above will be subject to a flat 30% tax (or at
such reduced rate as may be provided by an applicable treaty) on the gain derived from the sale, which may be offset by U.S. source
capital losses, even though the individual is not considered a resident of the United States. A Non-U.S. holder described in the
third bullet point above will be subject to U.S. federal income tax under regular graduated U.S. federal income tax rates with
respect to the gain recognized in the same manner as if the Non-U.S. holder were a United States person as defined under the Code.
If a Non-U.S. holder is subject to U.S. federal income tax on any sale, exchange, redemption (except as discussed below), or other
disposition of the Series B Preferred, such a Non-U.S. holder will recognize capital gain or loss equal to the difference between
the amount realized by the Non-U.S. holder and the Non-U.S. holder’s adjusted tax basis in the Series B Preferred. Such
capital gain or loss will be long-term capital gain or loss if the Non-U.S. holder’s holding period for the Series B Preferred
is longer than one year. A Non-U.S. holder should consult its own tax advisors with respect to applicable tax rates and netting
rules for capital gains and losses. Certain limitations exist on the deduction of capital losses by both corporate and Non-corporate
taxpayers. If a Non-U.S. holder is subject to U.S. federal income tax on any disposition of the Series B Preferred, a redemption
of shares of the Series B Preferred will be a taxable event. If the redemption is treated as a sale or exchange, instead of a
dividend, a Non-U.S. holder generally will recognize long-term capital gain or loss, if the Non-U.S. holder’s holding period
for such Series B Preferred exceeds one year, equal to the difference between the amount of cash received and fair market value
of property received and the Non-U.S. holder’s adjusted tax basis in the Series B Preferred redeemed, except that to the
extent that any cash received is attributable to any accrued but unpaid dividends on the Series B Preferred, which generally will
be subject to the rules discussed above in “Certain U.S. Federal Income Tax Considerations - Non-U.S. Holders: Distributions
on the Series B Preferred.” A payment made in redemption of the Series B Preferred may be treated as a dividend, rather
than as payment in exchange for the Series B Preferred, in the same circumstances discussed above under “Certain U.S. Federal
Income Tax Considerations - U.S. Holders: Disposition of Series B Preferred, Including Redemptions.” Each Non-U.S. holder
of the Series B Preferred should consult its own tax advisors to determine whether a payment made in redemption of the Series
B Preferred will be treated as a dividend or as payment in exchange for the Series B Preferred.
Information
reporting and backup withholding. We must report annually to the Internal Revenue Service and to each Non-U.S.
holder the amount of dividends paid to such Non-U.S. holder and the tax withheld with respect to such dividends, regardless of
whether withholding was required. Copies of the information returns reporting such dividends and withholding may also be made
available to the tax authorities in the country in which the Non-U.S. holder resides under the provisions of an applicable income
tax treaty. A Non-U.S. holder will not be subject to backup withholding on dividends paid to such Non-U.S. holder as long as such
Non-U.S. holder certifies under penalty of perjury that it is a Non-U.S. holder (and the payor does not have actual knowledge
or reason to know that such Non-U.S. holder is a United States person as defined under the Code), or such Non-U.S. holder otherwise
establishes an exemption. Depending on the circumstances, information reporting and backup withholding may apply to the proceeds
received from a sale or other disposition of the Series B Preferred unless the beneficial owner certifies under penalty of perjury
that it is a Non-U.S. holder (and the payor does not have actual knowledge or reason to know that the beneficial owner is a United
States person as defined under the Code), or such owner otherwise establishes an exemption. U.S. backup withholding tax is not
an additional tax. Any amounts withheld under the backup withholding rules may be allowed as a refund or a credit against a Non-U.S.
holder’s U.S. federal income tax liability provided the required information is timely furnished to the Internal Revenue
Service.
Foreign
Account Tax Compliance Act. Sections 1471 through 1474 of the Code (provisions which are commonly referred to as
“FATCA”), generally impose a 30% withholding tax on dividends on Series B Preferred paid on or after July 1, 2014
and the gross proceeds of a sale or other disposition of Series B Preferred paid on or after January 1, 2019 to: (i) a foreign
financial institution (as that term is defined in Section 1471(d)(4) of the Code) unless that foreign financial institution enters
into an agreement with the U.S. Treasury Department to collect and disclose information regarding U.S. account holders of that
foreign financial institution (including certain account holders that are foreign entities that have U.S. owners) and satisfies
other requirements; and (ii) specified other foreign entities unless such an entity certifies that it does not have any substantial
U.S. owners or provides the name, address and taxpayer identification number of each substantial U.S. owner and such entity satisfies
other specified requirements. Non-U.S. holders should consult their own tax advisors regarding the application of FATCA to them
and whether it may be relevant to their purchase, ownership and disposition of Series B Preferred.
Plan
of Distribution
The
Offering
The
Units are being offered by our officers and directors without any compensation for selling Units. The Units are offered on a best
effort no minimum basis which creates a higher degree of risk for earlier investors. See “Risk Factors.” All proceeds
shall be paid to the order of International Financial Enterprise Bank (“IFEB Bank”), with offices in Dallas, TX, also
referred to hereinafter as the “Escrow Agent, the Escrow Agent, shall deposit all funds into an escrow account it has created.
The Escrow Agent shall retain $9.75 per Unit as a fund to insure investors will receive 13% cash dividends for the initial three
years resulting in proceeds to the Company of $15.25 per Unit, prior. The Certificate of Designations for the Series B Preferred
requires our Board to declare them, subject to the NRS requirement and limitations.
Escrow
Agreement
Under
the terms of the Escrow Agreement, the Escrow Agent will pay all remaining funds to the Company less expenses of the Escrow Agent
as proceeds of payment are cleared. However, if the Escrow Agent receives notice that a broker-dealer has sold Units (which notice
may be by email form the broker-dealer), the Escrow Agent will (with our consent) pay the broker-dealer the commissions described
in the next paragraph.
While
we do not have any agreements with any broker-dealers (each a “Placement Agent) to sell Units, we have obtained approval
from the Financial Regulatory Authority that broker-dealers who sell Units may receive commissions of 9% of the $25 Unit
Offering Price or $25.00 per Unit sold as a direct result of the selling efforts and introductions of Placement Agents.
Placement
Agent Agreement
The
Company shall, at each closing of the Offering (each a “Closing”), as compensation for the services provided by the
Placement Agent(s) hereunder, pay the Placement Agent(s) a cash commission equal to nine (9%) percent of the gross proceeds received
by the Company from Qualified Investors from such closing (the “Cash Fee”) as a direct result of the selling efforts
and introductions of each respective Placement Agent.
At
the final Closing of the Offering, as
additional compensation for the services provided by the Placement Agent(s) hereunder, the Company will issue to the
Placement Agents a number of warrants (the “Placement Agent Warrants”) equal to nine (9%) percent of the total
number of Units sold to Qualified Investors as a direct result of the selling efforts and introductions of each respective Placement
Agent. The Placement Agent Warrants will entitle each respective Placement Agent to purchase for a period of five (5) years the
number of Units subject to each Placement Agent’s Warrants, at the Unit Offering Price of $25.00 per Unit, solely based
upon the selling efforts and introductions of each respective Placement Agent to Qualified Investors who, in fact, subscribe for
and purchase Units in the Offering.
Legal
Matters
The
validity of the Series B Preferred offered hereby and other certain legal matters will be passed upon for us by The Lonergan Law
Firm, LLC, Lawrence R. Lonergan, Esq. We have filed a copy of this opinion as Exhibit 5.1 to the registration statement, of which
this prospectus is included, with respect to the securities subject to the Offering.
Experts
The
consolidated financial statements as of March 31, 2019 and 2018 and for each of the years in the two-year period ended March 31,
2019, included in this Form S-1 have been so included in reliance upon the report of Haynie & Company, an independent registered
public accounting firm, given on the authority of said firm as an expert in auditing and accounting.
Where
You Can Find MORE Information
We
have filed with the SEC, Washington, D.C. 20549, under the Securities Act, a registration statement on Form S-1 relating to the
shares offered hereby. This prospectus does not contain all of the information set forth in the registration statement and the
exhibits and schedules thereto. For further information respecting our company and the shares offered by this prospectus, you
should refer to the registration statement, including the exhibits and schedules thereto. The SEC maintains an Internet site that
contains reports, proxy and information statements, and other information regarding registrants that file electronically with
the SEC. The SEC’s internet address is http://www.sec.gov.
Statements
contained in this prospectus as to the contents of any contract or other document that we have filed as an exhibit to the registration
statement are qualified in their entirety by reference to the exhibits for a complete statement of their terms and conditions.
The
representations, warranties, and covenants made by us in any agreement that is filed as an exhibit to the registration statement
of which this prospectus is a part were made solely for the benefit of the parties to such agreement, including, in some cases,
for the purpose of allocating risk among the parties to such agreements, and should not be deemed to be a representation, warranty,
or covenant to you. Moreover, such representations, warranties, or covenants were made as of an earlier date. Accordingly, such
representations, warranties, and covenants should not be relied on as accurately representing the current state of our affairs.
We
file periodic reports, proxy statements, and other information with the SEC in accordance with requirements of the Exchange Act.
We make available through our website, free of charge, copies of these reports as soon as reasonably practicable after we electronically
file or furnish them to the SEC. Our website is located at http://www.InvestView.com. You can also request copies of such documents,
free of charge, by contacting us at 732-889-4300.
Information
contained on our website is not a prospectus and does not constitute a part of this prospectus.
DISCLOSURE
OF COMMISSION POSITION ON INDEMNIFICATION FOR SECURITIES ACT LIABILITIES
Our
directors and officers are indemnified as provided by Section 145 of the Nevada General Corporation Law and our amended and restated
bylaws. We have agreed to indemnify each of our directors and certain officers against certain liabilities, including liabilities
under the Securities Act. Insofar as indemnification for liabilities arising under the Securities Act may be permitted to our
directors, officers and controlling persons pursuant to the provisions described above, or otherwise, we have been advised that
in the opinion of the Securities and Exchange Commission such indemnification is against public policy as expressed in the Securities
Act and is, therefore, unenforceable. In the event that a claim for indemnification against such liabilities (other than our payment
of expenses incurred or paid by our director, officer or controlling person in the successful defense of any action, suit or proceeding)
is asserted by such director, officer or controlling person in connection with the securities being registered, we will, unless
in the opinion of our counsel the matter has been settled by controlling precedent, submit to a court of appropriate jurisdiction
the question whether such indemnification by it is against public policy as expressed in the Securities Act and will be governed
by the final adjudication of such issue.
2,000,000
Units
Each
Unit Consisting of
One
Share of 13% Series B Preferred Cumulative Redeemable Perpetual Preferred Stock and
Five
Warrants Each Exercisable to Purchase One Share of Common Stock
Liquidation
Preference $25 per Series B Preferred Stock
Investview,
Inc.
PROSPECTUS
,
2020
PART
II
INFORMATION
NOT REQUIRED IN PROSPECTUS
Item
13. Other Expenses of Issuance and Distribution.
The
following is an estimate of the expenses (all of which are to be paid by the Company) that we may incur in connection with the
securities being registered hereby.
Offering
Expenses
|
|
|
|
|
SEC
registration fee
|
|
$
|
6,620
|
|
FINRA
filing fee
|
|
$
|
31,000
|
|
Printing
expenses
|
|
$
|
3,000
|
|
Legal
fees and expenses
|
|
$
|
25,000
|
|
Accounting
fees and expenses
|
|
$
|
35,000
|
|
Miscellaneous
|
|
$
|
25,000
|
|
Total
|
|
$
|
125,620
|
|
Item
14. Indemnification of Directors and Officers.
Our
articles of incorporation, by-laws and director indemnification agreements provide that each person who was or is made a party
or is threatened to be made a party to or is otherwise involved (including, without limitation, as a witness) in any action, suit
or proceeding, whether civil, criminal, administrative or investigative, by reason of the fact that he or she is or was a director
or an officer of the Company or, in the case of a director, is or was serving at our request as a director, officer, or trustee
of another corporation, or of a partnership, joint venture, trust or other enterprise, including service with respect to an employee
benefit plan, whether the basis of such proceeding is alleged action in an official capacity as a director, officer or trustee
or in any other capacity while serving as a director, officer or trustee, shall be indemnified and held harmless by us to the
fullest extent authorized by the Nevada General Corporation Law against all expense, liability and loss reasonably incurred or
suffered by such.
Section
145 of the Nevada General Corporation Law permits a corporation to indemnify any director or officer of the corporation against
expenses (including attorney’s fees), judgments, fines and amounts paid in settlement actually and reasonably incurred in
connection with any action, suit or proceeding brought by reason of the fact that such person is or was a director or officer
of the corporation, if such person acted in good faith and in a manner that he or she reasonably believed to be in, or not opposed
to, the best interests of the corporation, and, with respect to any criminal action or proceeding, if he or she had no reason
to believe his or her conduct was unlawful. In a derivative action, (i.e., one brought by or on behalf of the corporation),
indemnification may be provided only for expenses actually and reasonably incurred by any director or officer in connection with
the defense or settlement of such an action or suit if such person acted in good faith and in a manner that he or she reasonably
believed to be in, or not opposed to, the best interests of the corporation, except that no indemnification shall be provided
if such person shall have been adjudged to be liable to the corporation, unless and only to the extent that the court in which
the action or suit was brought shall determine that the defendant is fairly and reasonably entitled to indemnity for such expenses
despite such adjudication of liability.
Pursuant
to Section 102(b)(7) of the Nevada General Corporation Law, Article Seven of our articles of incorporation eliminates the liability
of a director to us for monetary damages for such a breach of fiduciary duty as a director, except for liabilities arising:
●
from any breach of the director’s duty of loyalty to us;
● from acts or omissions not in good faith or which involve intentional misconduct or a knowing violation of law;
● under Section 174 of the Nevada General Corporation Law; and
● from any transaction from which the director derived an improper personal benefit.
We
have entered into indemnification agreements with our directors and executive officers, in addition to the indemnification provided
for in the Bylaws, and we intend to enter into indemnification agreements with any new directors and executive officers in the
future.
The
Company has purchased [and intends to maintain] insurance on behalf of each and any person who is or was a director or officer
of the Company against any loss arising from any claim asserted against him or her and incurred by him or her in any such capacity,
subject to certain exclusions.
Insofar
as indemnification for liabilities arising under the Securities Act of 1933 may be permitted to directors, officers and controlling
persons of the registrant pursuant to the foregoing provisions, or otherwise, the registrant has been advised that in the opinion
of the Securities and Exchange Commission such indemnification is against public policy as expressed in the Act and is, therefore,
unenforceable. In the event that a claim for indemnification against such liabilities (other than the payment by the registrant
of expenses incurred or paid by a director, officer or controlling person of the registrant in the successful defense of any action,
suit or proceeding) is asserted by such director, officer or controlling person in connection with the securities being registered,
the registrant will, unless in the opinion of its counsel the matter has been settled by controlling precedent, submit to a court
of appropriate jurisdiction the question whether such indemnification by it is against public policy as expressed in the Act and
will be governed by the final adjudication of such issue.
Item
15. Recent Sales of Unregistered Securities.
The
following information relates to all securities issued or sold by us within the past three years and not registered under the
Securities Act of 1933, (the “Securities Act”).
In
October 2019 we received $175,000 in proceeds from the sale of 7,000,000 shares of our common stock and issued 12,400,000 shares
of our common stock for services.
In
December 2019 we issued 3,218,592 shares of our common stock for services that has not been previously reported in any of our
SEC filings.
In
January and February 2020 we issued 10,000,000 shares of our common stock for services.
In
August and September 2019 we issued 13,000,000 shares of our common stock for proceeds of $325,000.
In
July 2019, we entered into a Convertible Promissory Note and received proceeds of $140,000 after incurring loan fees of $3,000.
The note incurs interest at 12% per annum and has a maturity date of October 8, 2020. The Convertible Promissory Note has a variable
conversion rate that is 65% of the average of the two lowest trading prices during the previous 15-trading-day period, subject
to adjustment.
In
August 2019, we entered into a Convertible Promissory Note and received proceeds of $100,000 after incurring loan fees of $3,000.
The note incurs interest at 12% per annum and has a maturity date of November 28, 2020. The Convertible Promissory Note has a
variable conversion rate that is 65% of the average of the two lowest trading prices during the previous 15-trading-day period,
subject to adjustment.
In
September 2019, we entered into a Convertible Promissory Note and received proceeds of $125,000 after incurring loan fees of $3,000.
The note incurs interest at 12% per annum and has a maturity date of December 10, 2020. The Convertible Promissory Note has a
variable conversion rate that is 65% of the average of the two lowest trading prices during the previous 15-trading-day period,
subject to adjustment.
During
the six months ended September 30, 2019, we issued 52,215,648 shares of common stock in exchange for net proceeds of $650,000.
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 had recorded $626,388 in accounts payable and accrued liabilities on our balance sheet as of March 31, 2018. During the year
ended March 31, 2019, the 18-month anniversary passed without the common stock falling below the set threshold, therefore, we
were released from the guarantee, and we increased additional paid-in capital by $525,000 to remove the previously recorded offering
costs. During the six months ended September 30, 2019, the 18-month anniversary passed without the common stock falling below
the set threshold, therefore, we were released from the guarantee, and we increased additional paid-in capital by $101,387 to
remove the previously recorded offering costs.
Also
during the six months ended September 30, 2019, we issued 241,000,000 shares of common stock, valued at $3,865,500 based on the
market date on the day of issuance, to multiple employees for services and compensation, which is subject to forfeiture if the
employee is not in good standing at the time the shares are fully vested. Of the $3,865,500 value we recognized $1,515,915 as
an expense during the six months ending September 30, 2019 and the remaining $2,349,585 will be recognized ratably over the vesting
term.
During
the six months ended September 30, 2019 we repurchased 5,150 shares of common stock for $102 and we cancelled 22,500,000 shares
that were returned in accordance with the terms of a Convertible Promissory Note (see Note 6), reducing common stock by $22,500
and increasing additional paid in capital by the same. We also cancelled 200,000,000 shares returned in conjunction with the termination
of a Joint Venture Agreement entered into in March of 2019, reducing common stock by $200,000, reducing additional paid in capital
by $3,180,000, offset with a reduction in our prepaid asset of $3,380,000. During the six months ended September 30, 2019 we recorded
a beneficial conversion feature of $1,000,000 related to a convertible promissory note entered into with a related party (see
Note 5).
On
February 7, 2019, the Company executed an amendment to a contract executed on April 8, 2018 for twelve months for consulting services.
The Company issued 250,000 shares of common stock at the signing of the contract valued at $30,500 that is being amortized over
the life of the contract.
On
March 22, 2019, the Company issued 3,260,870 shares of common stock to an institutional investor as part of a promissory note
for the first tranche payment. These shares are returnable if the Company repays the promissory note before the maturity date.
The value of these shares is $375,000 which was recorded as prepaid until the six-month maturity has passed. The Company also
issued 1,000,000 shares of common stock to the institutional investor as a commitment fee. The value of these shares is $115,000.
On
April 2, 2019, the Company issued 800,000 shares of common stock pursuant to a capital call notice in relation to an Equity Purchase
Agreement dated June 18, 2018. The capital call totaled $59,100.
On
May 17, 2019, the Company executed a contract for three months for consulting services. The Company issued 500,000 shares of common
stock at the signing of the contract valued at $53,000 that is being amortized over the life of the contract. The contract further
indicated that another 500,000 shares were to be issued at the end of three months. The Company issued the second 500,000 shares
of common stock on August 20, 2019. The value of the shares is $31,200 and was expensed.
On
July 10, 2019, the Company issued 2,692,307 shares of common stock to an institutional investor as part of a promissory note for
the second tranche payment. These shares are returnable if the Company repays the promissory note before the maturity date. The
value of these shares is $167,462 which was recorded as prepaid until the six-month maturity has passed.
On
September 30, 2019, the Company issued 4,000,000 shares of common stock to an institutional investor as part of a promissory note
for the third and final tranche payment. These shares are returnable if the Company repays the promissory note before the maturity
date. The value of these shares is $280,000 which was recorded as prepaid until the six-month maturity has passed.
On
September 25, 2019, the Company executed a contract for six months for consulting services. The contract included the issuance
of 250,000 shares of common stock. The value of these shares is $13,750. The shares had not yet been issued at the nine months
ended September 30,2019, so the value was recorded as Shares to be Issued.
During
the nine months ended September 30, 2019, the Company issued 4,749,992 shares of common stock to consultants for services rendered
in accordance to consulting agreements. The value of these shares is $466,403
During
the nine months ended September 30, 2019, the Company issued 20,270,431 shares of common stock for debt conversion totaling $932,667
which includes $889,950 principal, $40,217 accrued interest and $2,500 due diligence fee.
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. 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.
During
the six months ended September 30, 2018, we issued 50,000,000 shares of common stock for the acquisition of United Games, LLC
and United League, LLC. 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 six months
after the date of issuance. Also during the six months ended September 30, 2018, we repurchased 7,000,000 shares of common stock
for $91,000.
On
December 29, 2018, we issued 3,000,000 shares of our common stock to TRITON FUNDS LLC as a donation as agreed in the Common Stock
Purchase Agreement with TRITON FUNDS LP.
On
January 11, 2019, we entered into a convertible promissory note in the amount of $138,000, with Power Up Lending Group, Ltd. and
received proceeds of $138,000. The note incurs interest at 12% per annum and has a maturity date of April 11, 2020.
In
February 2019, we entered into a securities purchase agreement and convertible promissory note in the amount of $270,000, with
Labrys Fund, LP and received proceeds of $243,000. The note incurs interest at 12% per annum and has a maturity date of August
6, 2019. In accordance with the terms of the note, we issued 22,500,000 shares of common stock to the note holder as a commitment
fee, provided, however, these shares must be returned to us if the note is fully repaid and satisfied prior to the
date that is 180 days following the issue date.
On
March 6, 2019, we entered into a joint venture agreement with AI Data Consulting LLC and Freedom Enterprise LLC under which the
parties will operate a joint venture acquiring, reselling, and operating high-speed computer processing equipment. Under the terms
of that agreement, we issued an aggregate of 400,000,000 shares of our common stock to those two entities, all of which are subject
to forfeiture if the joint venture does not reach certain milestones established in the agreement.
On
March 29, 2019, we issued 1,000,000 shares of our common stock to an employee as compensation.
The
securities represented by each of the transactions described above were issued in reliance on the exemption from registration
provided in Section 4(a)(2) of the Securities Act of 1933, as amended, for transactions not involving any public offering. Each
of the investors is either an “accredited investor” as defined in Rule 501(a) of Regulation D or a sophisticated investor
able to bear the risks of the investment. Each investor confirmed the foregoing and acknowledged that the securities must be acquired
and held for investment. All certificates evidencing the shares of common stock on conversion of the notes, issuances under the
restricted stock grants, or upon the exercise of the warrants will bear a restrictive legend. No underwriter participated in the
offer and sale of these securities, and no commission or other remuneration was paid or given directly or indirectly in connection
therewith.
Item
16. Exhibits and Financial Statement Schedules
Exhibit
Number*
|
|
Title
of Document
|
|
Location
|
|
|
|
|
|
Item
2
|
|
Plan
of Acquisition, Reorganization, Arrangement, Liquidation or Succession
|
|
|
2.01
|
|
Contribution
Agreement between Investview, Inc., Wealth Generators, LLC, and the members of Wealth Generators, LLC dated March 31, 2017
|
|
Incorporated
by reference to the Current Report on Form 8-K filed April 6, 2017
|
Item
3
|
|
Articles
of Incorporation and Bylaws
|
|
|
3.01
|
|
Articles
of Incorporation
|
|
Incorporated
by reference to the Form 10SB12G filed August 12, 1999
|
3.02
|
|
Articles
of Amendments to the Articles of Incorporation
|
|
Incorporated
by reference to the Form 10SB12G filed August 12, 1999
|
3.03
|
|
Bylaws
|
|
Incorporated
by reference to the Form 10SB12G filed August 12, 1999
|
3.04
|
|
Amendment
to Articles of Incorporation or by-laws
|
|
Incorporated
by reference to the Current Report on Form 8-K filed February 15, 2007
|
3.05
|
|
Certificate
of Change filed pursuant to NRS 78.209
|
|
Incorporated
by reference to the Current Report on Form 8-K filed April 6, 2012
|
3.06
|
|
Articles
of Merger filed pursuant to NRS 92.A.200
|
|
Incorporated
by reference to the Current Report on Form 8-K filed April 6, 2012
|
3.07
|
|
Certificate
of Amendment to Articles of Incorporation
|
|
Incorporated
by reference to the Definitive Information Statement filed December 20, 2017
|
3.08
|
|
Amendment
of Articles of Incorporation to increase blank check Preferred Shares
|
|
Incorporated
by reference to the Definitive Information Statement filed December 10, 2019
|
Item
4
|
|
Instruments
Defining the Rights of Security Holders, including indentures
|
|
|
4.01
|
|
Common
Stock Specimen
|
|
Incorporated
by reference to the Registration Statement on Form S-1 filed January 12, 2018
|
Item
5
|
|
Opinion
re Legality
|
|
|
5.01
|
|
The
Opinion of The Lonergan Law Firm, LLC
|
|
This
filing.
|
Item
10
|
|
Material
Contracts
|
|
|
10.01
|
|
Form
of Common Stock Purchase Warrant dated July 7, 2011
|
|
Incorporated
by reference to the Current Report on Form 8-K filed July 13, 2011
|
10.02
|
|
Form
of Common Stock Purchase Warrant – August 2012
|
|
Incorporated
by reference to the Current Report on Form 8-K filed August 20, 2012
|
10.03
|
|
2012
Incentive Stock Plan**
|
|
Incorporated
by reference to the Registration Statement on Form S-8 filed July 25, 2012
|
10.04
|
|
Form
of Common Stock Purchase Warrant issued to Allied Global Ventures LLC
|
|
Incorporated
by reference to the Current Report on Form 8-K filed October 8, 2013
|
10.05
|
|
Form
of Common Stock Purchase Warrant
|
|
Incorporated
by reference to the Current Report on Form 8-K filed June 11, 2014
|
10.06
|
|
Form
of Common Stock Purchase Warrant – September 30, 2014
|
|
Incorporated
by reference to the Current Report on Form 8-K filed October 7, 2014
|
10.22
|
|
Form
of Conversion Agreement dated June 6, 2017
|
|
Incorporated
by reference to the Current Report on Form 8-K filed June 12, 2017
|
10.23
|
|
Agreement
entered into with CTB Rise International Inc. dated June 7, 2017
|
|
Incorporated
by reference to the Current Report on Form 8-K filed June 12, 2017
|
10.24
|
|
Founder
Employment Agreement between Investview, Inc. and Ryan Smith, entered October 10, 2017**
|
|
Incorporated
by reference to the Current Report on Form 8-K filed October 13, 2017
|
10.25
|
|
Founder
Employment Agreement between Investview, Inc. and Annette Raynor, entered October 10, 2017**
|
|
Incorporated
by reference to the Current Report on Form 8-K filed October 13, 2017
|
10.26
|
|
Founder
Employment Agreement between Investview, Inc. and Chad Miller, entered October 10, 2017**
|
|
Incorporated
by reference to the Current Report on Form 8-K filed October 13, 2017
|
10.27
|
|
Founder
Employment Agreement between Investview, Inc. and Mario Romano, entered October 10, 2017**
|
|
Incorporated
by reference to the Current Report on Form 8-K filed October 13, 2017
|
10.28
|
|
Founder
Revenue Agreement among Investview, Inc. and Chad Miller, Annette Raynor, Mario Romano, and Ryan Smith**
|
|
Incorporated
by reference to the Current Report on Form 8-K filed October 13, 2017
|
10.29
|
|
Contribution
and Exchange Agreement between Investview, Inc. and HODO-mania, Inc., entered October 20, 2017
|
|
Incorporated
by reference to the Current Report on Form 8-K filed October 27, 2017
|
10.30
|
|
Product
Contribution Agreement between Investview, Inc. and Priam Technologies, Inc., entered November 13, 2017
|
|
Incorporated
by reference to the Current Report on Form 8-K filed November 15, 2017
|
10.31
|
|
Exclusive
License Agreement between Investview, Inc. and Binnacle Research Marketing, Inc., entered November 13, 2017
|
|
Incorporated
by reference to the Current Report on Form 8-K filed November 15, 2017
|
10.32
|
|
Product
Contribution Agreement between Investview, Inc. and WestMyn Technology Services, Inc., entered November 13, 2017
|
|
Incorporated
by reference to the Current Report on Form 8-K filed November 15, 2017
|
10.33
|
|
Securities
Purchase Agreement between InvestView, Inc., and D-Beta One EQ, Ltd., entered December 6, 2017
|
|
Incorporated
by reference to the Current Report on Form 8-K filed December 13, 2017
|
10.34
|
|
Registration
Rights Agreement between InvestView, Inc., and D-Beta One EQ, Ltd., entered December 6, 2017
|
|
Incorporated
by reference to the Current Report on Form 8-K filed December 13, 2017
|
10.35
|
|
Standby
Equity Distribution Agreement between InvestView, Inc., and YAII PN, Ltd., entered December 6, 2017
|
|
Incorporated
by reference to the Current Report on Form 8-K filed December 13, 2017
|
10.36
|
|
Purchase
Agreement between United Marketing, LLC and Investview, Inc., entered July 20, 2018
|
|
Incorporated
by reference from Current Report on Form 8-K filed July 25, 2018
|
10.37
|
|
Product
Contribution Agreement between Investview, Inc. and WestMyn Technology Services, Inc., entered May 1, 2018
|
|
Incorporated
by reference from the Quarterly Report on Form 10-Q/A for the quarter ended June 30, 2018, filed September 5, 2018
|
10.38
|
|
Capital
Crypto Mining Agreement between Investview, Inc. and WestMyn Technology Services, Inc., entered May 1, 2018
|
|
Incorporated
by reference from the Quarterly Report on Form 10-Q for the quarter ended June 30, 2018, filed September 5, 2018
|
10.39
|
|
Master
Services Agreement between Investview, Inc., its assigns, and BYOBitcoin LLC
|
|
Incorporated
by reference from Current Report on Form 8-K filed September 25, 2018
|
10.41
|
|
Stock
Buyback Letter Agreement between Investview, Inc. and Yorkville Advisors Global, LP and its subsidiaries dated September 13,
2018
|
|
Incorporated
by reference from Current Report on Form 8-K filed September 26, 2018
|
10.42
|
|
Common Stock Purchase Agreement between Investview, Inc. and TRITON FUNDS, LP., entered December 29, 2018
|
|
Incorporated
by reference to the Current Report on Form 8-K filed January 7, 2019
|
10.43
|
|
Registration
Rights Agreement between Investview, Inc. and TRITON FUNDS, LP., entered December 29, 2018
|
|
Incorporated
by reference to the Current Report on Form 8-K filed January 7, 2019
|
10.44
|
|
Share
Donation Agreement between Investview, Inc. and TRITON FUNDS, LP, Ltd., entered December 29, 2018
|
|
Incorporated
by reference to the Current Report on Form 8-K filed January 7, 2019
|
10.45
|
|
Joint
Venture Agreement among Investview, Inc. and AI Data Consulting, LLC, and Freedom Enterprise, LLC
|
|
Incorporated
by reference to the Current Report on Form 8-K/A filed March 8, 2019
|
10.46
|
|
Amended
Common Stock Purchase Agreement between Investview, Inc. and TRITON FUNDS LP entered March 22, 2019
|
|
Incorporated
by reference to the Current Report on Form 8-K filed March 26, 2019
|
10.47
|
|
Form
of Kuvera, LLC Crypto Mining Agreement
|
|
Incorporated
by reference to Amendment No. 5 to the Registration Statement on Form S-1/A filed April 17, 2019
|
10.48
|
|
Second
Amendment of Common Stock Purchase Agreement between Investview, Inc. and TRITON FUNDS LP entered April 11, 2019
|
|
Incorporated
by reference to the Current Report on Form 8-K filed April 12, 2019
|
10.49
|
|
Securities
Purchase and Royalty Agreement between Investview, Inc., and Brian McMullen, dated as of July 23, 2019
|
|
Incorporated
by reference to the Current Report on Form 8-K filed August 1, 2019
|
10.50
|
|
Convertible
Promissory Note, dated as of July 23, 2019
|
|
Incorporated
by reference to the Current Report on Form 8-K filed August 1, 2019
|
10.51
|
|
Employment
Agreement between Investview, Inc. and Jayme McWidener, effective as of September 15, 2019
|
|
Incorporated
by reference to the Current Report on Form 8-K filed September 12, 2019
|
10.52
|
|
Revenue
Share Agreement dated September 16, 2019, and executed October 1, 2019
|
|
Incorporated
by reference to the Current Report on Form 8-K filed October 7, 2019
|
10.53
|
|
Agreement
to Terminate Joint Venture Agreement of March 5, 2019, dated September 16, 2019, and executed October 1, 2019
|
|
Incorporated
by reference to the Current Report on Form 8-K filed October 7, 2019
|
10.54
|
|
Employment
Agreement between Joseph Cammarata and Investview, Inc. effective December 1, 2019
|
|
Incorporated
by reference to the Current Report on Form 8-K filed December 4, 2019
|
10.55
|
|
Certificate
of Designation of 13% Series B Cumulative Redeemable Perpetual Preferred Stock, filed herewith
|
|
Filed
herewith.
|
10.56.1
|
|
Form of Placement Agent Agreement, as Amended
|
|
Filed
herewith.
|
10.57
|
|
Common
Stock Purchase Warrant
|
|
Filed
herewith.
|
10.58
|
|
Form
of Warrant Exercise
|
|
Filed
as part of Exhibit 10.57.
|
Item
21
|
|
Subsidiaries
of the Registrant
|
|
|
21.01
|
|
Schedule
of Subsidiaries
|
|
Incorporated
by reference to Amendment No. 2 to the Registration Statement on Form S-1/A filed March 11, 2019
|
Item
23
|
|
Consents
of Experts and Counsel
|
|
|
23.01
|
|
Consent
of Haynie & Company
|
|
Filed
herewith.
|
Item
24
|
|
Power
of Attorney
|
|
|
24.01
|
|
Power
of Attorney
|
|
See
signature page to this filing.
|
Item
101
|
|
Interactive
Data Files***
|
|
|
101.INS
|
|
XBRL
Instance Document
|
|
Filed
herewith.
|
101.SCH
|
|
XBRL
Taxonomy Extension Schema
|
|
Filed
herewith.
|
101.CAL
|
|
XBRL
Taxonomy Extension Calculation Linkbase
|
|
Filed
herewith.
|
101.DEF
|
|
XBRL
Taxonomy Extension Definition Linkbase
|
|
Filed
herewith.
|
101.LAB
|
|
XBRL
Taxonomy Extension Label Linkbase
|
|
Filed
herewith.
|
101.PRE
|
|
XBRL
Taxonomy Extension Presentation Linkbase
|
|
Filed
herewith.
|
*
|
All
exhibits are numbered with the number preceding the decimal indicating the applicable
SEC reference number in Item 601 and the number following the decimal indicating the
sequence of the particular document. Omitted numbers in the sequence refer to documents
previously filed as an exhibit.
|
|
|
**
|
Identifies
each management contract or compensatory plan or arrangement required to be filed as
an exhibit, as required by Item 15(a)(3) of Form 10-K.
|
|
|
***
|
Users
of this data are advised that, pursuant to Rule 406T of Regulation S-T, these interactive
data files are deemed not filed or part of a registration statement or Annual Report
for purposes of Sections 11 or 12 of the Securities Act of 1933 or Section 18 of the
Exchange Act of 1934 and otherwise are not subject to liability.
|
The
list of exhibits in the Index to Exhibits to this registration statement is incorporated herein by reference.
Item
17. Undertakings.
The
undersigned registrant hereby undertakes:
(1)
|
To
file, during any period in which offers or sales are being made, a post-effective amendment to this registration statement:
|
|
(i)
|
to
include any prospectus required by section 10(a)(3) of the Securities Act of 1933;
|
|
|
|
|
(ii)
|
to
reflect in the prospectus any facts or events arising after the effective date of the registration statement (or the most
recent post-effective amendment thereof) which, individually or in the aggregate, represent a fundamental change in the information
set forth in the registration statement. Notwithstanding the foregoing, any increase or decrease in volume of securities offered
(if the total dollar value of securities offered would not exceed that which was registered) and any deviation from the low
or high end of the estimated maximum offering range may be reflected in the form of prospectus filed with the Commission pursuant
to Rule 424(b) if, in the aggregate, the changes in volume and price represent no more than a 20% change in the maximum aggregate
offering price set forth in the “Calculation of Registration Fee” table in the effective registration statement;
and
|
|
(iii)
|
to
include any material information with respect to the plan of distribution not previously disclosed in the registration statement
or any material change to such information in the registration statement.
|
(2)
|
That,
for the purpose of determining any liability under the Securities Act of 1933, each such post-effective amendment will be
deemed to be a new registration statement relating to the securities offered therein, and the offering of such securities
at that time will be deemed to be the initial bona fide offering thereof.
|
|
|
(3)
|
To
remove from registration by means of a post-effective amendment any of the securities being registered which remain unsold
at the termination of the offering.
|
(4)
|
That,
for the purpose of determining liability of the registrant under the Securities Act of 1933 to any purchaser, each prospectus
filed pursuant to Rule 424(b) as part of a registration statement relating to an offering, other than registration statements
relying on Rule 430B or other than prospectuses filed in reliance on Rule 430A, will be deemed to be part of and included
in the registration statement as of the date it is first used after effectiveness. Provided, however, that no
statement made in a registration statement or prospectus that is part of the registration statement or made in a document
incorporated or deemed incorporated by reference into the registration statement or prospectus that is part of the registration
statement will, as to a purchaser with a time of contract of sale prior to such first use, supersede or modify any statement
that was made in the registration statement or prospectus that was part of the registration statement or made in any such
document immediately prior to such date of first use.
|
|
|
(5)
|
That,
for the purpose of determining liability of the registrant under the Securities Act of 1933 to any purchaser in the initial
distribution of the securities:
|
|
|
|
The
undersigned registrant undertakes that in a primary offering of securities of the undersigned registrant pursuant to this
registration statement, regardless of the underwriting method used to sell the securities to the purchaser, if the securities
are offered or sold to such purchaser by means of any of the following communications, the undersigned registrant will be
a seller to the purchaser and will be considered to offer or sell such securities to such purchaser:
|
|
(i)
|
Any
preliminary prospectus or prospectus of the undersigned registrant relating to the offering required to be filed pursuant
to Rule 424;
|
|
|
|
|
(ii)
|
Any
free writing prospectus relating to the offering prepared by or on behalf of the undersigned registrant or used or referred
to by the undersigned registrant;
|
|
|
|
|
(iii)
|
The
portion of any other free writing prospectus relating to the offering containing material information about the undersigned
registrant or its securities provided by or on behalf of the undersigned registrant; and
|
|
|
|
|
(iv)
|
Any
other communication that is an offer in the offering made by the undersigned registrant to the purchaser.
|
Insofar
as indemnification for liabilities arising under the Securities Act of 1933 may be permitted to directors, officers and controlling
persons of the registrant pursuant to the foregoing provisions, or otherwise, the registrant has been advised that in the opinion
of the Securities and Exchange Commission such indemnification is against public policy as expressed in the Securities Act and
is, therefore, unenforceable. In the event that a claim for indemnification against such liabilities (other than the payment by
the registrant of expenses incurred or paid by a director, officer or controlling person of the Registrant in the successful defense
of any action, suit or proceeding) is asserted by such director, officer or controlling person in connection with the securities
being registered, the registrant will, unless in the opinion of its counsel the matter has been settled by controlling precedent,
submit to a court of appropriate jurisdiction the question whether such indemnification by it is against public policy as expressed
in the Securities Act and will be governed by the final adjudication of such issue.
SIGNATURES
Pursuant
to the requirements of Securities Act of 1933, the registrant has duly caused this registration statement to be signed on its
behalf by the undersigned, thereunto duly authorized, in Eatontown, New Jersey, on the 3rd day of March 2020.
|
INVESTVIEW,
INC.
|
|
|
|
|
By:
|
/s/
Joseph Cammarata
|
|
|
Joseph
Cammarata
|
|
|
Chief
Executive Officer
|
|
|
|
|
By:
|
/s/
Jayme Lin McWidener
|
|
|
Jayme
Lin McWidener
|
|
|
Chief
Financial Officer
|
POWER
OF ATTORNEY
Pursuant
to the requirements of the Securities Act of 1933, this registration statement has been signed below by the following persons
in the capacities and on the dates indicated.
Name
and Signature
|
|
Title
|
|
Date
|
|
|
|
|
|
/s/
Joseph Cammarata
|
|
|
|
|
Joseph Cammarata
|
|
Chief Executive
Officer and Director
|
|
03/03/2020
|
|
|
|
|
|
/s/
Jeremy Roma
|
|
|
|
|
Jeremy Roma
|
|
Director
|
|
03/03/2020
|
|
|
|
|
|
/s/
Mario Romano
|
|
|
|
|
Mario Romano
|
|
Director
|
|
03/03/2020
|
|
|
|
|
|
/s/
Jayme Lin McWidener
|
|
|
|
|
Jayme Lin McWidener
|
|
Chief Financial
Officer and Principal Accounting Officer
|
|
03/03/2020
|
|
|
|
|
|
/s/
Annette Raynor
|
|
|
|
|
Annette Raynor
|
|
Chief Operations
Officer
|
|
03/03/2020
|
|
|
|
|
|
/s/
Brian McMullen
|
|
|
|
|
Brian McMullen
|
|
Director
|
|
03/03/2020
|
|
|
|
|
|
/s/
Ryan Smith
|
|
|
|
|
Ryan Smith
|
|
Director
|
|
03/03/2020
|
|
|
|
|
|
/s/
Chad Miller
|
|
|
|
|
Chad Miller
|
|
Director
|
|
03/03/2020
|
|
|
|
|
|
/s/
William C. Kosoff
|
|
|
|
|
William C. Kosoff
|
|
Corporate Secretary
|
|
03/03/2020
|
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