Company: INVUP
Filing Date: 2025-03-28
Form Type: 10-K
Source: 0001641172-25-001193
Chunk: 488

Company: Investview, Inc.
Filing Date: 2025-03-28
Form: 10-K
Item: Item 9B
Chunk 488
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 Investview Financial Group Holdings, LLC

As
of December 31, 2024, and December 31, 2023, there were 565,000,000 Units of Class B Investview Financial Group Holdings, LLC issued
and outstanding. These units were issued as consideration for the purchase of operating assets and intellectual property rights of MPower,
a company controlled and partially owned by David B. Rothrock and James R. Bell, two of our board members. The Class B Redeemable Units
have no voting rights but can be exchanged at any time, within 5 years from the date of issuance, for 565,000,000 shares of our common
stock on a one-for-one basis and are subject to significant restrictions upon resale through 2025 under the terms of a lock up agreement
entered into as part of the purchase agreement. In order to properly account for the purchase transaction on the Company’s financial
statements, we were required by applicable financial reporting standards to value the Class B Units issued to MPower in the transaction
as of the closing date of the MPower sale transaction (September 3, 2021). For these accounting purposes, we concluded that the “fair
value” of the consideration for financial accounting purposes, at the if-converted market value of the underlying common shares
was $58.9 million, based on the closing market price of $0.1532 on the closing 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