Company: INVUP
Filing Date: 2025-05-14
Form Type: 10-Q
Source: 0001641172-25-010230
Chunk: 97

Company: Investview, Inc.
Filing Date: 2025-05-14
Form: 10-Q
Item: Part I, Item 8
Chunk 97
---
 business, financial condition, and operating results.

We have instituted a legal proceeding instituted
to collect significant balance owed by credit card processor and clearing bank

The Company’s financial statements as of March
31, 2025, reflect a receivables balance of $2.23 million. Of that balance, $2.11 million represents receivables that arise out of credit
card transactions generated by the Company’s iGenius subsidiary. The credit card transactions that arise out of the ordinary course
operations of the Company’s iGenius subsidiary are processed by the Company’s credit card processors, in conjunction with
their clearing banks. Over time, the balance of credit card collections being held by one of our credit card processors and its clearing
bank, which are legally supposed to be held for the benefit of the Company, subject to coverage for chargebacks and other normal course
collection issues, has increased to approximately $1.87 million, an amount that has been generally confirmed by the credit card 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 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