Company: INVUP
Filing Date: 2025-08-13
Form Type: 10-Q
Source: 0001493152-25-011912
Chunk: 46

Company: Investview, Inc.
Filing Date: 2025-08-13
Form: 10-Q
Item: Part I, Item 1
Chunk 46
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 processor. As they had been unresponsive to our repeated
demands for payment, claiming that they were in the process of concluding their internal accounting of the amounts due and evaluating
any possible exposure to chargebacks and other normal course collection issues, in March 2024, we 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. In an effort
to enhance our collection efforts, we applied for and was granted a pre-judgment writ of attachment against both the credit card processor
and the clearing bank. Recently, however, the scope of the writ of attachment was limited upon appeal to bank accounts holding limited
cash amounts; thus, mitigating the impact of the writ. Nevertheless, we continue to assert our rights of recovery in the due course of
the litigation. Due to the inherent delays and uncertainty of the litigation process, there can still be no assurances that we will be
able to collect some or all of the funds owed to us. Should we be unable to collect some or all of the funds owed, we will be caused
to incur a corollary bad debt expense of up to the uncollected amount which is currently approximately $1.87 million. Furthermore, we
may be caused under generally accepted accounting principles, to incur a bad debt expense if it is determined that the amounts owed to
us are unlikely to be collected, although we have not yet reached that conclusion. A charge of up to $1.87 million, which represents
less than 10% of our current assets, would not have a material adverse effect upon our long-term liquidity, however, could have a material
adverse effect upon our net earnings in the period incurred.

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 Federal Trade Commission (“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