Company: INVUP
Filing Date: 2025-05-14
Form Type: 10-Q
Source: 0001641172-25-010230
Chunk: 94

Company: Investview, Inc.
Filing Date: 2025-05-14
Form: 10-Q
Item: Part I, Item 8
Chunk 94
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 in the course of communications with the SEC throughout the inquiry, the Company came to believe
that the focus of the SEC’s inquiry involved whether the offer and sale of the Company’s now discontinued Apex sale and leaseback
program violated certain federal securities laws. Following a several year review process in which the Company cooperated fully with the
SEC, on January 17, 2025, a settlement was reached with the SEC to resolve the inquiry. As part of the settlement, the Company entered
into a formal SEC Order for which it neither admitted nor denied the factual and legal conclusions asserted, but paid a civil monetary
penalty of $375,000 to conclude the inquiry. The Company considers this matter to be closed.

    23

INVESTVIEW, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

AS OF March 31, 2025

(Unaudited)

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

Historically, through our wholly-owned subsidiaries
Apex Tek, LLC 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