Company: INVUP
Filing Date: 2025-05-14
Form Type: 10-Q
Source: 0001641172-25-010230
Chunk: 42

Company: Investview, Inc.
Filing Date: 2025-05-14
Form: 10-Q
Item: Part I, Item 1
Chunk 42
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 accounting principles, to incur a bad debt expense if it is determined that the amounts owed to the Company are unlikely to be
collected, although the Company has not yet reached that conclusion. A charge of up to $1.87 million, which represents less than 10% of
the Company’s current assets, would not have a material adverse effect upon the Company’s long-term liquidity, however, could
have a material adverse effect upon the Company’s net earnings in the period incurred.

    25

INVESTVIEW, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

AS OF March 31, 2025

(Unaudited)

Potential exposure to administrative proceeding
asserted by Polish regulatory authority relating to Company’s iGenius network

Our iGenius products and services are marketed
by a global network of independent distributors using a direct selling business model. Although we believe that our direct selling
business model is in material compliance with applicable legal standards, direct selling programs similar to ours and others within
the industry, in general, have periodically been the target of regulatory scrutiny by federal, state, and local governmental
agencies in the United States and foreign countries, including the FTC, whose regulatory authority extends to the prevention of
fraudulent or deceptive schemes, often referred to as “pyramid” schemes. Since March 2025 we have been responding to an
inquiry from Poland’s Office of Competition and Consumer Protection (“UOKiK”) as it has instituted formal
proceedings against iGenius alleging that iGenius is not a bona fide financial education platform and is instead operating a pyramid
scheme that is focused more on the recruitment of new members and not the sale or use of the underlying products or services being
offered. Based on our analysis of the applicable legal standards, and the tracking of our sales within Poland in which the
predominant portion of our sales consist of membership sales driven by our members, we believe that the iGenius direct selling
business operating within Poland complies with all applicable legal standards and we disagree with any claims to the contrary.
Despite our strong belief in our position, should we not succeed in our defense of the matter, we could, among other things: be
subject to material financial fines and penalties (up to 10% of iGenius’ revenue in the year preceding the imposition of the penalty); be required to modify or suspend certain or a material portion of our operations
in Poland; and