Company: INVUP
Filing Date: 2025-03-28
Form Type: 10-K
Source: 0001641172-25-001193
Chunk: 1083

Company: Investview, Inc.
Filing Date: 2025-03-28
Form: 10-K
Item: Item 1
Chunk 1083
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 the process of concluding their internal accounting of the amounts due and status of our accounts, in March 2024, the Company
instituted a lawsuit against this credit card processor and its clearing bank seeking, among other things, an accounting for and repayment
of the withheld funds. Notwithstanding, to date, we have been unable, through negotiations and through our lawsuit, to recover any amount
of the receivable balances owed to us as the credit card processor asserts, among others, that it continues to evaluate possible exposure
to chargebacks and other normal course collection issues. Recently, however, the Company’s application for a pre-judgment writ
of attachment against both the credit card processor and the clearing bank, has been granted. Although the Company’s collection
efforts will likely be enhanced by application of the pre-judgment writ of attachment, there can still be no assurances that the Company
will be able to collect some or all of the funds owed to it. Should the Company be unable to collect some or all of the funds owed, it
will be caused to incur a corollary bad debt expense of up to the uncollected amount which is currently approximately $1.87 million.
Furthermore, the Company may be caused under generally accepted 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.

10

Cyber-attacks
may disrupt our operations and expose us to significant liability.

We
are at risk for cyber-attacks, such as phishing, and other attempts to gain unauthorized access to our systems, and we anticipate continuing
to be subject to such attempts. There is an ongoing risk that some or all of our cryptocurrencies could be lost or stolen as a result
of one or more of these incursions. As we increase in size, we may become a more appealing target of hackers, malware, cyber-attacks
or other security threats, and, despite our implementation of strict security measures and frequent security audits, it is impossible
to eliminate all such vulnerability. For instance, we may not be able to ensure the adequacy of the security measures employed by third
parties