Company: INVUP
Filing Date: 2025-08-13
Form Type: 10-Q
Source: 0001493152-25-011912
Chunk: 112

Company: Investview, Inc.
Filing Date: 2025-08-13
Form: 10-Q
Item: Part I, Item 8
Chunk 112
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We
have instituted a legal proceeding instituted to collect significant balance owed by credit card processor and clearing bank

Our
financial statements as of June 30, 2025 reflect a receivables balance of $2.53 million. Of that balance, $2.18 million represents receivables
that arise out of credit card transactions generated by our iGenius subsidiary. The credit card transactions that arise out of the ordinary
course operations of our iGenius subsidiary are handled by 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 our benefit , 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 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