Company: INVUP
Filing Date: 2025-05-14
Form Type: 10-Q
Source: 0001641172-25-010230
Chunk: 93

Company: Investview, Inc.
Filing Date: 2025-05-14
Form: 10-Q
Item: Part I, Item 8
Chunk 93
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 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 11 – COMMITMENTS AND CONTINGENCIES

Litigation and Legal Proceedings 

In the ordinary course of business, we may be, or
have been, involved in material third-party litigation and other legal proceedings and administrative actions, or exposed to material
contingencies or commitments in the course of our business, as described below.

Settlement of SEC Inquiry 

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,