Company: INVUP
Filing Date: 2025-08-13
Form Type: 10-Q
Source: 0001493152-25-011912
Chunk: 109

Company: Investview, Inc.
Filing Date: 2025-08-13
Form: 10-Q
Item: Part I, Item 8
Chunk 109
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, but paid a civil monetary penalty of $375,000 to conclude the inquiry. The Company considers
this matter to be closed.

    24

INVESTVIEW, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

AS OF JUNE 30, 2025

(Unaudited)

Exposure
to potential claims arising from third-party financial protection plan

Historically,
through our wholly-owned subsidiaries Apex Tek, LLC (“Apex”) and SAFETek, LLC, we sold high powered data processing equipment,
known as the Apex package, to our customers which was then leased back to us for use in our crypto mining operations. We discontinued
sales of the Apex package in June 2020, principally when COVID-19 created certain supply chain-related limitations on that business.
Confronted with these limitations in the business, we offered the holders of our Apex leases the opportunity to cancel their leases,
in exchange for which, we repurchased substantially all of the data processing equipment (subject to these leases) for approximately
$19 million of promissory notes due on or about December 31, 2024 (which amount reflects the principal amount invested by all of such
lease holders, plus a 25% premium). During the fourth quarter ended December 31, 2023, we further offered all note holders an early payoff
option. By December 31, 2024, we had repaid or settled the approximately $19 million of promissory notes.

Included
in the Apex sale and leaseback program that was discontinued in 2021, was a “guaranteed assets buy-back product” underwritten,
administered and managed by a third-party provider, Total Protection Plus (“TPP”), which was intended to provide customers
who participated in the Apex sale and leaseback program with a financial protection program (the “TPP Program”), under which
customers, provided they complied with certain TPP required claims procedures, could elect to collect a cash payout in either a five-or-ten
year interval after their initial purchase. As part of their sales and marketing materials, TPP represented that they were a purported
affiliate of a well-known global insurance brokerage firm that had sufficient capital resources, reserves and liquidity to support any
payouts needed to satisfy their obligations under the TPP Program. TPP was paid substantial premiums for the program. In most instances,
the premium for the TPP program was included in the package price for the Apex program, at no additional cost to the