Company: INVUP
Filing Date: 2025-08-13
Form Type: 10-Q
Source: 0001493152-25-011912
Chunk: 113

Company: Investview, Inc.
Filing Date: 2025-08-13
Form: 10-Q
Item: Part I, Item 8
Chunk 113
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 upon our long-term liquidity, however, could have a material
adverse effect upon our net earnings in the period incurred.

Potential
exposure to administrative proceeding asserted by Polish regulatory authority relating to Company’s iGenius network

Our
iGenius products and services are marketed by a global network of independent distributors using a direct selling business model. Although
we believe that our direct selling business model is in material compliance with applicable legal standards, direct selling programs
similar to ours and others within the industry, in general, have periodically been the target of regulatory scrutiny by federal, state,
and local governmental agencies in the United States and foreign countries, including the Federal Trade Commission (“FTC”), whose regulatory authority extends to the prevention of fraudulent or deceptive schemes, often referred to as “pyramid”
schemes. Since March 2025 we have been responding to an inquiry from Poland’s Office of Competition and Consumer Protection (“UOKiK”)
as it has instituted formal proceedings against iGenius alleging that iGenius is not a bona fide financial education platform and is
instead operating a pyramid scheme that is focused more on the recruitment of new members and not the sale or use of the underlying products
or services being offered. Based on our analysis of the applicable legal standards, and the tracking of our sales within Poland in which
the predominant portion of our sales consist of membership sales driven by our members, we believe that the iGenius direct selling business
operating within Poland complies with all applicable legal standards and we disagree with any claims to the contrary. Despite our strong
belief in our position, should we not succeed in our defense of the matter, we could, among other things, become subject to financial
fines and penalties (limited to 3% of the annual revenue derived from sales in Poland); and/or be required to modify or suspend certain
or a material portion of our operations in Poland. In addition, should we not succeed on the merits of our defense of the matter, we
could be exposed to similar claims from other European regulators, which itself could cause a cascading and similar adverse impact on
our operations in Europe, all of which could have a materially adverse impact on the Company. It is still too early in the proceedings
for us to draw a likely conclusion on the outcome of the matter, and iGenius is cooperating with UOKiK’s investigation.

    26

INVESTVIEW, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS