Company: INVUP
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0001493152-25-022223
Chunk: 95

Company: Investview, Inc.
Filing Date: 2025-11-13
Form: 10-Q
Item: Part I, Item 1
Chunk 95
---
 Class B Units under certain circumstances, including at any time
beginning on September 3, 2028. The shares of our common stock issuable upon exchange of the Class B Units were subject to a lock up
agreement that has now expired.  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