Company: INVUP
Filing Date: 2025-03-28
Form Type: 10-K
Source: 0001641172-25-001193
Chunk: 1983

Company: Investview, Inc.
Filing Date: 2025-03-28
Form: 10-K
Item: Item 5
Chunk 1983
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 date of September 3, 2021, as discounted from $86.6 million
by 32% (or $27.7 million) to reflect the significant lock up period. The “fair value” valuation of the Class B Units, however,
was completed relying on a certain set of methodologies that are accepted for accounting purposes and is not necessarily indicative
of the “fair market value” that may be implied relative to such Units in a commercial transaction not governed by financial
reporting standards. In particular, the methodology used to value the Class B Units at their “fair value” did not take into
account any blockage discounts that may otherwise apply after the expiration of the lock-up period in 2025; while other valuation methodologies,
not bound by financial reporting codifications, would possibly determine that the blockage discount associated with the resale of 565
million shares after the expiration of the lock-up period, into a marketplace that has limited market liquidity, could possibly have
a material downward influence on the valuation.

NOTE
10 – COMMITMENTS AND CONTINGENCIES

Litigation

In
the ordinary course of business, we may be, or have been, involved in legal proceedings. On November 9, 2021, the Company received a
subpoena from the United States Securities and Exchange Commission (“SEC”) for the production of documents. In the subpoena,
the SEC advised that the inquiry did not mean that the SEC concluded that the Company or anyone affiliated with the Company had violated
the federal securities laws or any other law. However, in the course of communications with the SEC throughout the inquiry, the Company
came to believe that the focus of the SEC’s inquiry involved whether the offer and sale of the Company’s now discontinued
Apex sale and leaseback program violated certain federal securities laws. Following a several year review process in which the Company
cooperated fully with the SEC, on January 17, 2025, a settlement was reached with the SEC to resolve the inquiry. As part of the settlement,
the Company entered into a formal SEC Order for which it neither admitted nor denied the factual and legal conclusions asserted, however,
agreed to pay a civil monetary penalty of $375,000
to conclude the inquiry. The Company considers this matter
to be closed. As of December 31, 2024, the penalty of $375,000 was in escrow with our SEC attorney.

    F-20

INVESTVIEW,
INC.

NOTES
TO CONSOLIDATED