# Investview, Inc.: Form 10-Q for the period ended Sep 30, 2024

- Company: [Investview, Inc.](/companies/invu.md) (CIK 862651)
- Form: 10-Q
- Filed: 2024-11-13
- Accepted by EDGAR: Nov 13, 2024, 14:31 ET
- Period: 2024-09-30
- Accession: 0001493152-24-045065
- Inline XBRL: yes
- Main document: https://www.sec.gov/Archives/edgar/data/862651/000149315224045065/form10-q.htm
- All documents and exhibits: https://www.sec.gov/Archives/edgar/data/862651/000149315224045065/

## Figures reported in this filing

Standardized XBRL line items for the period ended 2024-09-30.

| Line item | Period | Value | XBRL concept |
| --- | --- | ---: | --- |
| Revenue | 3 months, 2024-07-01 to 2024-09-30 | $11.7m | us-gaap:RevenueFromContractWithCustomerExcludingAssessedTax |
| Revenue | 9 months, 2024-01-01 to 2024-09-30 | $40.5m | us-gaap:RevenueFromContractWithCustomerExcludingAssessedTax |
| Operating income | 3 months, 2024-07-01 to 2024-09-30 | −$698.5k | us-gaap:OperatingIncomeLoss |
| Operating income | 9 months, 2024-01-01 to 2024-09-30 | $1.6m | us-gaap:OperatingIncomeLoss |
| Income tax | 3 months, 2024-07-01 to 2024-09-30 | $95.3k | us-gaap:IncomeTaxExpenseBenefit |
| Income tax | 9 months, 2024-01-01 to 2024-09-30 | $864.4k | us-gaap:IncomeTaxExpenseBenefit |
| Net income | 3 months, 2024-07-01 to 2024-09-30 | −$810.6k | us-gaap:NetIncomeLoss |
| Net income | 9 months, 2024-01-01 to 2024-09-30 | $1.4m | us-gaap:NetIncomeLoss |
| Diluted EPS | 3 months, 2024-07-01 to 2024-09-30 | $0.00 | us-gaap:EarningsPerShareDiluted |
| Diluted EPS | 9 months, 2024-01-01 to 2024-09-30 | $0.00 | us-gaap:EarningsPerShareDiluted |
| Basic EPS | 3 months, 2024-07-01 to 2024-09-30 | $0.00 | us-gaap:EarningsPerShareBasic |
| Basic EPS | 9 months, 2024-01-01 to 2024-09-30 | $0.00 | us-gaap:EarningsPerShareBasic |
| Diluted shares (weighted) | 3 months, 2024-07-01 to 2024-09-30 | 1,860,677,438 shares | us-gaap:WeightedAverageNumberOfDilutedSharesOutstanding |
| Diluted shares (weighted) | 9 months, 2024-01-01 to 2024-09-30 | 2,961,095,993 shares | us-gaap:WeightedAverageNumberOfDilutedSharesOutstanding |
| Operating cash flow | 9 months, 2024-01-01 to 2024-09-30 | $7.3m | us-gaap:NetCashProvidedByUsedInOperatingActivities |
| Capital expenditure | 9 months, 2024-01-01 to 2024-09-30 | $6.4k | us-gaap:PaymentsToAcquirePropertyPlantAndEquipment |
| Dividends paid | 9 months, 2024-01-01 to 2024-09-30 | $497.3k | us-gaap:PaymentsOfDividends |
| Cash and equivalents | at 2024-09-30 | $24.5m | us-gaap:CashAndCashEquivalentsAtCarryingValue |
| Current assets | at 2024-09-30 | $30.8m | us-gaap:AssetsCurrent |
| Total assets | at 2024-09-30 | $32.9m | us-gaap:Assets |
| Current liabilities | at 2024-09-30 | $13.4m | us-gaap:LiabilitiesCurrent |
| Total liabilities | at 2024-09-30 | $15.7m | us-gaap:Liabilities |
| Shareholders' equity | at 2024-09-30 | $17.2m | us-gaap:StockholdersEquity |

## Management's discussion and analysis

As filed, 28,039 characters.

### Forward-Looking Statements

The following discussion should be read in conjunction with our consolidated financial statements and notes to our financial statements included elsewhere in this report. This discussion contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, as noted by use of the words “believe,” “expect,” “plan,” “project,” “estimate,” and any variations thereof that are intended to identify forward-looking statements. These forward-looking statements are based on management’s current beliefs and assumptions and information currently available to management, and involve known and unknown risks, uncertainties, and other factors that may cause the actual results, performance, or achievements to be materially different from any future results, performance, or achievements expressed or implied by these forward-looking statements. Information concerning factors that could cause our actual results to differ materially from these forward-looking statements can be found elsewhere in this Report and in our periodic reports filed with the U.S. Securities and Exchange Commission. The forward-looking statements included are made only as of the date of this report. Except as required by law, we have no obligation and do not undertake to update or revise any such forward-looking statements to reflect events or circumstances after the date of the report.

### Business Overview

We operate a diversified financial technology services company offering several different lines of business, including a business unit that provides financial educational tools, content and research, through a global distribution network of independent distributors; and a business unit that offers digital products and services that support blockchain technologies and Bitcoin mining operations; and a business unit that manufactures and develops a collection of proprietary health, beauty and wellness products for its existing base of wholesale customers, and plans to expand its sales and marketing initiatives by developing and offering proprietary products through our global distribution network of independent distributors and direct to consumers platform. In addition, we plan to develop a business unit that will offer investors an online trading platform to enable self-directed retail brokerage services by integrating the early-stage online brokerage trading platform we acquired during March 2024, with the proprietary algorithmic trading platform we acquired in September 2021.

### Results of Operations

### Three Months Ended September 30, 2024 Compared to Three Months Ended September 30, 2023

Revenues

*(unaudited)*

*(unaudited)*

|  | Three Months Ended September 30, 2024 | 2023 | Increase (Decrease) |
| --- | ---: | ---: | ---: |
| Subscription revenue, net of refunds, incentives, credits, and chargebacks | $11,175,466 | $16,117,992 | $(4,942,526) |
| Mining revenue | 567,415 | 2,905,182 | (2,337,767) |
| Cryptocurrency revenue | - | 146,466 | (146,466) |
| Total revenue, net | $11,742,881 | $19,169,640 | $(7,426,759) |

Revenue, net, decreased $7,426,759 or 39%, from $19,169,640 for the three months ended September 30, 2023, to $11,742,881 for the three months ended September 30, 2024. The decrease can be explained by a $4.9 million decrease in our subscription revenue, $2.3 million decrease in our mining revenue, and $146 thousand decrease in our cryptocurrency revenue. The $4.9 million (31%) decrease in subscription revenue was driven by the continued adverse impact of global inflation which caused a general slowdown in the direct sales and home based business industry; the $2.3 million (80%) decrease in mining revenue was a result of a number of factors, including, the “Bitcoin Halving” which occurred on April 19, 2024, and increase in Bitcoin Network Difficulty and a mandated power curtailment enforced by the government-controlled utility company in Iceland, partially offset by an increase in the price of Bitcoin; and the $146 thousand (100%) decrease in cryptocurrency revenue was due to the discontinuation of our distribution of NDAU packages during the year ended December 31, 2023.

Operating Costs and Expenses

*(unaudited)*

*(unaudited)*

|  | Three Months Ended September 30, 2024 | 2023 | Increase (Decrease) |
| --- | ---: | ---: | ---: |
| Cost of sales and service | $1,257,569 | $3,147,890 | $(1,890,321) |
| Commissions | 6,270,310 | 9,272,024 | (3,001,714) |
| Selling and marketing | 16,751 | 7,410 | 9,341 |
| Salary and related | 1,471,649 | 1,714,299 | (242,650) |
| Professional fees | 416,410 | 285,133 | 131,277 |
| Impairment Expense | 977,418 | - | 977,418 |
| General and administrative | 2,031,269 | 2,500,129 | (468,860) |
| Total operating costs and expenses | $12,441,376 | $16,926,885 | $(4,485,509) |

Operating costs decreased $4,485,509, or 26%, from $16,926,885 for the three months ended September 30, 2023, to $12,441,376 for the three months ended September 30, 2024. The decrease can be explained by a decrease in commissions of $3 million, which was a result of decreases in our subscription revenue, a decrease in cost of sales and services of $1.9 million, which was a result of a power curtailment mandated by the government-controlled utility companies in Iceland, and a decrease in general and administrative expenses, which was a result of decreases in credit card processing fees due to the decreases in our subscription revenue and decreases in costs related to our mining operations. These decreases were offset by an increase in impairment expense of $977 thousand due to impairment of our data processing equipment during the current period.

Other Income and Expenses

*(unaudited)*

*(unaudited)*

|  | Three Months Ended September 30, 2024 | 2023 | Change |
| --- | ---: | ---: | ---: |
| Gain (loss) on fair value of derivative liability | $2,034 | $11,939 | $(9,905) |
| Realized gain (loss) on cryptocurrency | 1,558 | (58,401) | 59,959 |
| Interest expense | (4,726) | (4,726) | - |
| Interest expense, related parties | (310,594) | (310,594) | - |
| Other income (expense) | 294,862 | 431,603 | (136,741) |
| Total other income (expense) | $(16,866) | $69,821 | $(86,867) |

We recognized other expense of $16,866 for the three months ended September 30, 2024. This reflected a decrease of $86,867, or 124%, from other income of $69,821 recognized for the three months ended September 30, 2023. The change is due to a decrease in Other income (expense) in the current period of $137 thousand, as a result of a decrease in lease payments received under a structured equipment lease agreement, offset with the recognition of more interest income in the current period due to our cash balances being held in higher interest-bearing accounts, as compared to the equivalent prior year period. The decrease in Other income (expense) was offset by a realized gain recorded on cryptocurrency in the current period of $2 thousand compared to a realized loss of $58 thousand in the equivalent prior year period.

### Nine Months Ended September 30, 2024 Compared to Nine Months Ended September 30, 2023

Revenues

*(unaudited)*

*(unaudited)*

|  | Nine Months Ended September 30, 2024 | 2023 | Increase (Decrease) |
| --- | ---: | ---: | ---: |
| Subscription revenue, net of refunds, incentives, credits, and chargebacks | $36,232,688 | $41,659,185 | $(5,426,497) |
| Mining revenue | 4,288,791 | 7,798,279 | (3,509,488) |
| Cryptocurrency revenue | - | 513,285 | (513,285) |
| Miner equipment repair revenue | - | 23,378 | (23,378) |
| Total revenue, net | $40,521,479 | $49,994,127 | $(9,472,648) |

Revenue, net, decreased $9,472,648, or 19%, from $49,994,127 for the nine months ended September 30, 2023, to $40,521,479 for the nine months ended September 30, 2024. The decrease can be explained by $5.4 million, $3.5 million, and $513 thousand decreases in our subscription revenue, mining revenue, and cryptocurrency revenue, respectively. The $5.4 million (13%) decrease in subscription revenue was driven by the continued adverse impact of global inflation which caused a general slowdown in the direct sales and home based business industry; the $3.5 million (45%) decrease in mining revenue was a result of “Bitcoin Halving” which occurred on April 19th, 2024, an increase in Bitcoin Network Difficulty and a mandated power curtailment enforced by the government-controlled utility companies in Iceland, partially offset by an increase in the price of Bitcoin; and the $513 thousand decrease in cryptocurrency revenue was due to the discontinuation of our distribution of NDAU during the year ended December 31, 2023.

Operating Costs and Expenses

*(unaudited)*

*(unaudited)*

|  | Nine Months Ended September 30, 2024 | 2023 | Increase (Decrease) |
| --- | ---: | ---: | ---: |
| Cost of sales and service | $4,703,513 | $7,614,768 | $(2,911,255) |
| Commissions | 19,988,364 | 24,005,229 | (4,016,865) |
| Selling and marketing | 548,559 | 536,464 | 12,095 |
| Salary and related | 4,859,463 | 5,416,292 | (556,829) |
| Professional fees | 1,201,406 | 1,202,674 | (1,268) |
| Impairment Expense | 977,418 | - | 977,418 |
| Loss (gain) on disposal of assets | 180,223 | 184,221 | (3,998) |
| General and administrative | 6,435,522 | 7,190,383 | (754,861) |
| Total operating costs and expenses | $38,894,468 | $46,150,031 | $(7,255,563) |

Operating costs decreased $7,255,563, or 16%, from $46,150,031 for the nine months ended September 30, 2023, to $38,894,468 for the nine months ended September 30, 2024. The decrease can be explained by a decrease in commissions of $4.0 million, which was a result of decreases in our subscription revenue, a decrease in cost of sales and services of $2.9 million, which was a result of a power curtailment mandated by the government-controlled utility companies in Iceland, a decrease in salary and related of $557 thousand, which was a result of a decrease in stock based compensation, and a decrease in general and administrative expenses, which was a result of decreases in credit card processing fees due to the decreases in our subscription revenue and decreases in costs related to our mining operations. These decreases were offset by an increase in impairment expense of $977 thousand due to impairment of our data processing equipment during the current period.

Other Income and Expenses

*(unaudited)*

*(unaudited)*

|  | Nine Months Ended September 30, 2024 | 2023 | Change |
| --- | ---: | ---: | ---: |
| Gain (loss) on fair value of derivative liability | $5,434 | $15,596 | $(10,161) |
| Realized gain (loss) on cryptocurrency | 284,112 | 170,444 | 113,668 |
| Interest expense | (14,076) | (14,024) | (52) |
| Interest expense, related parties | (929,934) | (929,008) | (926) |
| Other income (expense) | 1,284,021 | 1,027,108 | 256,912 |
| Total other income (expense) | $629,557 | $270,116 | $359,441 |

We recognized other income of $629,557 for the nine months ended September 30, 2024. This reflects an increase of $359,441, or 133%, from other income of $270,116 recognized for the nine months ended September 30, 2023. The change is due to a realized gain on cryptocurrency in the current period of $284 thousand compared to a realized gain of $170 thousand in the equivalent prior year period and an increase in Other income (expense) in the current period of $257 thousand, as we recognized more interest income in the current period due to our cash balances being held in higher interest-bearing accounts, as compared to the equivalent prior year period, and as a result of an increase in ticket sales from certain promotional events iGenius held during the nine months ended September 30, 2024 and 2023.

### Liquidity and Capital Resources

During the nine months ended September 30, 2024, we met our short- and long-term working capital and capital expenditure requirements, including funding for operations, capital expenditures, growth initiatives, and for debt service on our outstanding indebtedness and dividends on our Series B Preferred Stock, through net cash flows provided by operating activities. We believe we will have sufficient resources, including cash flow from operations and access to capital markets, to meet debt service obligations in a timely manner and be able to meet our objectives.

During the nine months ended September 30, 2024, we recorded net income from operations of $1,627,011 and net income of $1,392,139. As of September 30, 2024, we have unrestricted cash of $24,452,902. Also, as of September 30, 2024, our current assets exceeded our current liabilities to result in working capital of $17,421,468 and our cryptocurrency balance was reported at a cost basis of $461,674. Management does not believe there are any liquidity issues as of September 30, 2024.

### Critical Accounting Policies

Basis of Accounting

Our policy is to prepare our financial statements on the accrual basis of accounting in accordance with accounting principles generally accepted in the United States of America.

The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with the rules and regulations (Regulation S-X) of the Securities and Exchange Commission (the “SEC”) and with the instructions to Form 10-Q. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. The results of operations for the three and nine months ended September 30, 2024, are not necessarily indicative of the operating results that may be expected for our year ending December 31, 2024, as will be included in the filing of our Annual Report on Form 10-K for the year ending December 31, 2024. These unaudited condensed consolidated financial statements should be read in conjunction with the December 31, 2023, consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2023.

Principles of Consolidation

The consolidated financial statements include the accounts of Investview, Inc., and our wholly owned subsidiaries: iGenius, LLC, SAFETek, LLC, Investview Financial Group Holdings, LLC, Opencash Finance, Inc., Opencash Securities, LLC, Investview MTS, LLC, and MyLife Wellness Company. All intercompany transactions and balances have been eliminated in consolidation.

Use of Estimates

The preparation of these financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates.

Long-Lived Assets – Cryptocurrencies & Intangible Assets

We account for our cryptocurrencies and intangible assets in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Subtopic 350-30, General Intangibles Other Than Goodwill, and ASC Subtopic 360-10-05, Accounting for the Impairment or Disposal of Long-Lived Assets. ASC Subtopic 350-30 requires assets to be measured based on the fair value of the consideration given or the fair value of the assets (or net assets) acquired, whichever is more clearly evident and, thus, more reliably measurable. Our cryptocurrencies are deemed to have an indefinite useful life; therefore, amounts are not amortized, but rather are assessed for impairment as further discussed in our impairment policy. Under ASC Subtopic 350-30 any intangible asset with a useful life is required to be amortized over that life and the useful life is to be evaluated every reporting period to determine whether events or circumstances warrant a revision to the remaining period of amortization. If the estimate of useful life is changed the remaining carrying amount of the intangible asset is amortized prospectively over the revised remaining useful life. Costs of internally developing, maintaining, or restoring intangible assets are recognized as an expense when incurred.

We hold cryptocurrency-denominated assets and include them in our consolidated balance sheet as Other current assets. The value of our cryptocurrencies as of September 30, 2024 and December 31, 2023 were $461,674 and $585,632, respectively. Cryptocurrencies purchased or received for payment from customers are recorded in accordance with ASC 350-30 and cryptocurrencies awarded to the Company through its mining activities ($4,288,791 and $7,798,279 for the nine months ended September 30, 2024 and 2023, respectively) are accounted for in connection with the Company’s revenue recognition policy. The use of cryptocurrencies is accounted for in accordance with the first in first out method of accounting. For the nine months ended September 30, 2024 and 2023, we recorded realized gains (losses) on our cryptocurrency transactions of $284,112 and $170,444, respectively.

Impairment of Long-Lived Assets

We have adopted ASC Subtopic 360-10, Property, Plant and Equipment. ASC 360-10 requires that long-lived assets and certain identifiable intangibles held and used by us be reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable or when the historical cost carrying value of an asset may no longer be appropriate. Events relating to recoverability may include significant unfavorable changes in business conditions, recurring losses, or a forecasted inability to achieve break-even operating results over an extended period.

We evaluate the recoverability of long-lived assets based upon future net cash flows expected to result from the asset, including eventual disposition. Should impairment in value be indicated, the carrying value of intangible assets will be adjusted and an impairment loss is recorded equal to the difference between the asset’s carrying value and fair value or disposable value. During the nine months ended September 30, 2024 and September 30, 2023, we impaired data processing equipment $977,418. During the nine months ended September 30, 2023, no impairment was recorded.

Subscription Revenue

Most of our revenue is generated by membership and subscription sales and payment is received at the time of purchase. We recognize subscription revenue in accordance with ASC 606-10 where revenue is measured based on a consideration specified in a contract with a customer and recognized when we satisfy the performance obligation specified in each contract. Our performance obligation is to provide services over a fixed subscription period; therefore, we recognize revenue ratably over the subscription period and deferred revenue is recorded for the portion of the subscription period subsequent to each reporting date. Additionally, we offer a designated trial period to first-time subscription customers, during which a full refund can be requested if a customer does not wish to continue with the subscription. Revenues are deferred during the trial period as collection is not probable until that time has passed. Revenues are presented net of refunds, sales incentives, credits, and known and estimated credit card chargebacks. As of September 30, 2024 and December 31, 2023, our deferred revenues were $2,365,008 and $2,703,398, respectively.

Mining Revenue

We generate revenue from mining bitcoin. The Company has entered into a digital asset mining pool by executing a contract, as amended from time to time, with the mining pool operator to provide computing power to the mining pool. The contract is terminable at any time by either party without penalty and the Company’s enforceable right to compensation only begins when the Company provides computing power to the mining pool operator. In exchange for providing computing power, we are entitled to a Full-Pay-Per-Share payout of Bitcoin based on a contractual formula, which primarily calculates the hash rate provided by us to the mining pool as a percentage of total network hash rate, and other inputs. We are entitled to consideration even if a block is not successfully placed by the mining pool operator.

Providing computing power to solve complex cryptographic algorithms in support of the Bitcoin blockchain (in a process known as “solving a block”) is an output of the Company’s ordinary activities. The provision of providing such computing power is the only performance obligation in the Company’s contract with the mining pool operator. The transaction consideration the Company receives is net of a contractually agreed upon “pool fee percentage” charged and kept by the mining pool operator and is noncash, in the form of Bitcoin, which the Company measures at fair value on the date Bitcoin is received. This value is not materially different than the fair value at the moment we meet the performance obligation, which can be recalculated based on the contractual formula. The consideration is variable. The amount of consideration recognized is constrained to the amount of consideration received, which is when it is probable a significant reversal will not occur. There is no significant financing component or risk of a significant revenue reversal in these transactions due to the performance obligations and settlement of the transactions being on a daily basis.

Cryptocurrency Revenue

During 2023, we generated revenue from the sale of cryptocurrency packages to our customers through an arrangement with a third-party supplier. The various packages included different amounts of coin with differing rates of returns and terms. The coin is delivered by a third-party supplier. The sale of cryptocurrency packages was discontinued during the year ended December 31, 2023.

During 2023, we recognized cryptocurrency revenue in accordance with ASC 606-10 where revenue is measured based on a consideration specified in a contract with a customer and recognized when we satisfy the performance obligation specified in each contract. Our performance obligation was to arrange for the third-parties to provide coin and protection (if applicable) to our customers and payment was received from our customers at the time of order placement. All customers were given two weeks to request a refund, therefore we would record a customer advance on our balance sheet upon receipt of payment. After the two weeks have passed from order placement, we request our third-party supplier to deliver coin and protection (if applicable), at which time we recognize revenue and the amounts due to our supplier on our books. During the quarter ended September 30, 2024, we generated no revenue from the sale of cryptocurrency packages.

Mining Equipment Repair Revenue

Through our wholly owned subsidiary, SAFETek, LLC, prior to June 30, 2023, we repaired broken mining equipment for sale to third-party customers. Our mining equipment repair business was discontinued during the quarter ended June 30, 2023.

Prior to June 30, 2023, we recognized miner repair revenue in accordance with ASC 606-10 where revenue was measured based on a consideration specified in a contract with a customer and recognized when we satisfy the performance obligation specified in each contract. Our performance obligation is to deliver the promised goods to our customers.

Revenue generated for the nine months ended September 30, 2024, was as follows:

|  | Subscription Revenue | Mining Revenue | Total |
| --- | ---: | ---: | ---: |
| Gross billings/receipts | $38,580,943 | $4,288,791 | $42,869,734 |
| Refunds, incentives, credits, and chargebacks | (2,348,255) | - | (2,348,255) |
| Net revenue | $36,232,688 | $4,288,791 | $40,521,479 |

For the nine months ended September 30, 2024, foreign and domestic revenues were approximately $33.1 million and $7.4 million, respectively.

Revenue generated for the nine months ended September 30, 2023, was as follows:

|  | Subscription Revenue | Cryptocurrency Revenue | Mining Revenue | Miner Repair Revenue | Total |
| --- | ---: | ---: | ---: | ---: | ---: |
| Gross billings/receipts | $45,284,739 | $990,785 | $7,798,279 | $23,378 | $54,097,181 |
| Refunds, incentives, credits, and chargebacks | (3,625,554) | - | - | - | (3,625,554) |
| Amounts paid to providers | - | (477,500) | - | - | (477,500) |
| Net revenue | $41,659,185 | $513,285 | $7,798,279 | $23,378 | $49,994,127 |

For the nine months ended September 30, 2023, foreign and domestic revenues were approximately $38.1 million and $11.9 million, respectively.

Revenue generated for the three months ended September 30, 2024, was as follows:

|  | Subscription Revenue | Mining Revenue | Total |
| --- | ---: | ---: | ---: |
| Gross billings/receipts | $12,023,415 | $567,415 | $12,590,830 |
| Refunds, incentives, credits, and chargebacks | (847,949) | - | (847,949) |
| Net revenue | $11,175,466 | $567,415 | $11,742,881 |

For the three months ended September 30, 2024, foreign and domestic revenues were approximately $10.3 million and $1.4 million, respectively.

Revenue generated for the three months ended September 30, 2023, was as follows:

|  | Subscription Revenue | Cryptocurrency Revenue | Mining Revenue | Total |
| --- | ---: | ---: | ---: | ---: |
| Gross billings/receipts | $17,499,805 | $258,466 | $2,905,182 | $20,663,453 |
| Refunds, incentives, credits, and chargebacks | (1,381,813) | - | - | (1,381,813) |
| Amounts paid to providers | - | (112,000) | - | (112,000) |
| Net revenue | $16,117,992 | $146,466 | $2,905,182 | $19,169,640 |

For the three months ended September 30, 2023, foreign and domestic revenues were approximately $14.7 million and $4.5 million, respectively.

### Recent Accounting Pronouncements

In December 2023, the FASB issued ASU No. 2023-08, *Intangibles—Goodwill and Other—Crypto Assets (Subtopic 350-60): Accounting for and Disclosure of Crypto Assets*. The amendments in ASU No. 2023-08 are intended to improve the accounting for certain crypto assets by requiring an entity to measure those crypto assets at fair value each reporting period with changes in fair value recognized in net income. The amendments also improve the information provided to investors about an entity’s crypto asset holdings by requiring disclosure about significant holdings, contractual sale restrictions, and changes during the reporting period. The amendments are effective for all entities for fiscal years beginning after December 15, 2024, including interim periods within those fiscal years. Early adoption is permitted for both interim and annual financial statements that have not yet been issued (or made available for issuance). If an entity adopts the amendments in an interim period, it must adopt them as of the beginning of the fiscal year that includes that interim period. ASU No. 2023-08 requires a cumulative-effect adjustment to the opening balance of retained earnings (or other appropriate components of equity or net assets) as of the beginning of the annual reporting period in which an entity adopts the amendments. The Company has not yet adopted ASU No. 2023-08 and is currently evaluating the impact that the adoption will have on the Company’s financial statement presentation and disclosures.

We have noted no other recently issued accounting pronouncements that we have not yet adopted that we believe are applicable or would have a material impact on our financial statements.

### Off-Balance Sheet Arrangements

We do not have any off-balance sheet arrangements that are reasonably likely to have a current or future effect on our financial condition, revenues, and results of operations, liquidity, or capital expenditures.

## Market risk

As filed, 173 characters.

We are a smaller reporting company as defined by Rule 12b-2 of the Securities Exchange Act of 1934 and, as such, are not required to provide the information under this item.

## Controls and procedures

As filed, 1,734 characters.

### Evaluation of Disclosure Controls and Procedures

Our management, with the participation of our Chief Executive Officer and Chief Financial Officer, evaluated the effectiveness of our disclosure controls and procedures (as defined in Rule 13a-15 under the Securities Exchange Act of 1934 (the “Exchange Act”) as of the end of the period covered by this Quarterly Report on Form 10-Q. In designing and evaluating the disclosure controls and procedures, management recognizes that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives. In addition, the design of disclosure controls and procedures must reflect the fact that there are resource constraints, and that management is required to apply its judgment in evaluating the benefits of possible controls and procedures relative to their costs.

Our disclosure controls and procedures are designed to provide reasonable, not absolute, assurance that the objectives of our disclosure control system are met. Because of inherent limitations in all control systems, no evaluation of controls can provide absolute assurance that all control issues, if any, within a company have been detected. Our Chief Executive Officer and Chief Financial Officer have concluded, based on their evaluation as of the end of the period covered by this report, that our disclosure controls and procedures were effective.

### Changes in Internal Controls

There were no changes in our internal controls over financial reporting during the fiscal quarter ended September 30, 2024, that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

Filed Nov 13, 2024.
Source: SEC EDGAR, the filing index for accession 0001493152-24-045065. Last ingested by Listed: Oct 24, 2026, 14:58 ET. No prices; not investment advice.