Investview, Inc.: Form 10-Q for the period ended Sep 30, 2025

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 similar expressions are used, they 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 operating across multiple business units that feature the sale of financial education products and services through a global network of independent distributors, the manufacture and sale of consumer health, wellness and nutrition products, an early-stage online trading broker-dealer platform for self-directed retail investors, and a sustainable blockchain technology focused on Bitcoin mining and related infrastructure.

Results of Operations

Three Months Ended September 30, 2025 Compared to Three Months Ended September 30, 2024

Revenues

(unaudited)

(unaudited)

Total revenue, net, decreased $2,690,273, or 23%, from $11,742,881 for the three months ended September 30, 2024, to $9,052,608 for the three months ended September 30, 2025. The reduction in total revenue, net, can be attributed to a $4.1 million contraction in our membership revenue, partially offset by an increase of $356 thousand and $1.0 million in mining revenue and our health and wellness product sales, respectively. The $4.1 million (37%) decrease in membership revenue was due to the global macroeconomic downturn as individuals re-evaluated their spending priorities, lifestyle habits, and engagement preferences, causing a slowdown in direct sales and home-based businesses. This decrease was offset by the $356 thousand or 63% increase in mining revenue, a direct result of an increase in the price of Bitcoin, partially offset by an increase in Bitcoin Network Difficulty and a $1.0 million increase in health and wellness product sales that arose from our October 2024 acquisition of the business and assets of Renu Laboratories, Inc.

Operating Costs and Expenses

(unaudited)

(unaudited)

33

Operating costs decreased $2,350,962 or (19%), from $12,441,376 for the three months ended September 30, 2024, to $10,090,414 for the three months ended September 30, 2025. The decrease can be explained by a reduction in commissions of $2.3 million, which was a result of a decrease in our membership revenue, a reduction in general and administrative expenses of $747 thousand, which was a result of decreases in credit card processing fees due to the decreases in our membership revenue, decreases in costs related to our mining operations, and a reduction in selling and marketing expenses of $340 thousand, which was due to a decrease in costs associated with promotional events iGenius held during the three months ended September 30, 2025 and 2024. Additionally, there was a decrease of $977 thousand in impairment expense as our mining equipment was written down in the prior year period, with no similar write down in the current period. These decreases were partially offset by an increase in compensation of $302 thousand and an increase in the cost of sales and services of $896 thousand, which was a result of the acquisition of our health, beauty, and wellness business that was acquired in October of 2024.

Other Income and Expenses

(unaudited)

(unaudited)

We recorded other income of $185,443 for the three months ended September 30, 2025, which was an increase of $202,309, or 1200%, from the prior year other expense of $16,866. The change is mainly due to an unrealized gain on digital assets in the current period of $220 thousand compared to no unrealized gain or loss in the prior year due to the Company’s adoption of ASU No. 2023-08, as shown in NOTE 5 of the financial statements included in this filing, for the year ended December 31, 2025, effective as of January 1, 2025. The change is also due to an increase in other income in the current period of $140 thousand, as a result of an increase in ticket sales from an iGenius promotional event, partially offset by a $111 thousand loss on settlement during the current period.

Nine Months Ended September 30, 2025 Compared to Nine Months Ended September 30, 2024

Revenues

(unaudited)

(unaudited)

Total revenue, net, decreased $11,414,901, or 28%, from $40,521,479 for the nine months ended September 30, 2024, to $29,106,578 for the nine months ended September 30, 2025. The reduction in total revenue, net, can be attributed to a $12.5 million contraction in our membership revenue and a $1.7 million contraction in our mining revenue, partially offset by an increase of $2.7 million in health and wellness product sales and an increase of $78 thousand in other revenue, also related to our health and wellness product sales. The $12.5 million (35%) decrease in membership revenue was due to the global macroeconomic downturn as individuals re-evaluated their spending priorities, lifestyle habits, and engagement preferences, causing a slowdown in direct sales and home-based businesses. The $1.7 million (39%) decrease in mining revenue was a result of “Bitcoin Halving” which occurred on April 19, 2024, decreasing the reward to 3.125 Bitcoin per block solved from the previous reward rate of 6.25 Bitcoin per block solved, an increase in Bitcoin Network Difficulty, partially offset by an increase in the price of Bitcoin. These decreases were offset by a $2.7 million increase in health and wellness product sales and a $78 thousand increase in other revenue related to our health and wellness sales that arose from our October 2024 acquisition of the purchase of the business and assets of Renu Laboratories, Inc.

Operating Costs and Expenses

(unaudited)

(unaudited)

Operating costs decreased $8,319,910 or (21%), from $38,894,468 for the nine months ended September 30, 2024, to $30,574,558 for the nine months ended September 30, 2025. The decrease can be explained by a reduction in commissions of $6.7 million, which was a result of a decrease in our membership revenue, a reduction in general and administrative expenses of $2.5 million, which was a result of decreases in credit card processing fees due to the decreases in our membership revenue, a decrease in depreciation related to our mining equipment, partially offset by an increase in contract services, and a $113 thousand loss on the sale of mining equipment. Additionally, there was a decrease of $977 thousand in impairment expense related to our mining equipment in 2024. These decreases were partially offset by an increase in compensation of $343 thousand, increases in professional fees of $353 thousand, and an increase in the cost of sales and services of $1.5 million, which was a result of the acquisition of our health, beauty, and wellness business that was acquired in October of 2024.

Other Income and Expenses

(unaudited)

(unaudited)

We recorded other income of $367,042 for the nine months ended September 30, 2025, which was a decrease of $262,515, or 42%, from the prior year’s other income of $629,557. The change is due to a realized gain on digital assets in the current period of $77 thousand compared to a gain of $284 thousand in the prior year and a decrease in other income in the current period of $336 thousand, as a result of a decrease in lease payments received under a structured equipment lease agreement, a decrease in ticket sales from a promotional event iGenius held during the nine months ended September 30, 2024, and a loss on settlement. These decreases were partially offset by an unrealized gain on digital assets in the current period of $399 thousand compared to no unrealized gain or loss in the prior year due to the Company’s adoption of ASU No. 2023-08, as shown in NOTE 5 of the financial statements included in this filing, for the year ended December 31, 2025, effective as of January 1, 2025.

Liquidity and Capital Resources

During the nine months ended September 30, 2025, we met our short-and long-term working capital and capital expenditure requirements. At September 30, 2025, we had a total of $15.1 million in cash and cash equivalents, which we believe is sufficient to meet our debt service, preferred stock dividend payments and all other obligations in a timely manner and be able to meet our objectives.

During the nine months ended September 30, 2025, we recorded net loss from operations of $1,467,980 and net loss of $1,111,938. As of September 30, 2025, we have unrestricted cash of $15,080,456. Also, as of September 30, 2025, our current assets exceeded our current liabilities to result in working capital of $12,313,762 and our digital asset balance was reported at a fair value of $3,794,502. Management does not believe there are any liquidity issues as of September 30, 2025.

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 nine months ended September 30, 2025, are not necessarily indicative of the operating results that may be expected for our year ending December 31, 2025, as will be included in the filing of our Annual Report on Form 10-K for the year ending December 31, 2025. These unaudited condensed consolidated financial statements should be read in conjunction with the December 31, 2024 consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2024.

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.

Digital Assets

Digital assets are included in non-current assets on the Consolidated Balance Sheets due to the Company’s intent to retain and hold bitcoin. Proceeds from the sale of digital assets and the purchase of digital assets are included within investing activities in the accompanying Consolidated Statement of Cash Flows. Digital Assets awarded to the Company through its mining activities and collected for membership revenue are accounted for in connection with the Company’s revenue recognition policy. Following the adoption of Accounting Standards Update (“ASU”) 2023-08 effective January 1, 2025, the Company measures digital assets at fair value with changes recognized in other income (expense) in the Consolidated Statement of Operations. The Company tracks its cost basis of digital assets by-wallet in accordance with the first-in-first-out (“FIFO”) method of accounting. Refer to “NOTE 5 – DIGITAL ASSETS”, in our financial statements for further information regarding the Company’s impact of the adoption of ASU 2023-08.

Intangible Assets

We account for our 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 350-30”). ASC 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. Under ASC 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.

Impairment of Long-Lived Assets

We have adopted ASC Subtopic 360-10, Property, Plant and Equipment (“ASC 360-10”). 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, 2025 and 2024, $0 and $977,418 of impairment was recorded, respectively.

Revenue Recognition

Membership Revenue

Most of our revenue is generated by membership sales and payment is received at the time of purchase. We recognize membership revenue in accordance with ASC Subtopic 606-10, Revenue from Contracts with Customers (“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 our tools, products, and content over a fixed membership period; therefore, we recognize revenue ratably over the membership period and deferred revenue is recorded for the portion of the membership period subsequent to each reporting date. Additionally, we offer a designated trial period to first-time membership customers, during which a full refund can be requested if a customer does not wish to continue with the membership. 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, 2025, and December 31, 2024, our deferred revenues for membership revenue were $1,597,281 and $1,905,734, 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. Further, since the contract is continuously renewing, second by second, the mining contract is considered to have a duration of less than 24 hours for accounting purposes. 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 calculates our share of block rewards, transaction fees, and mining pool operator fees. 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 mining pool operator fee charged and kept by the mining pool operator and is noncash, in the form of Bitcoin. Given that the contract is continuously renewing, and the duration is considered to be less than 24 hours, the Company measures the transaction consideration at fair value on the date Bitcoin is received. 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.

Health and Wellness Product Sales and Other Revenue

Through our wholly owned subsidiary, Renu Laboratories LLC, we generate revenue by manufacturing and selling health, beauty, and wellness products. We recognize health and wellness product sales revenue in accordance with ASC 606-10. The Company’s performance obligation is complete when control of the promised goods is transferred to a customer, at which time the Company recognizes revenue in an amount that reflects the consideration the Company expects to receive in exchange for those goods. The Company terms for the sale are based on free on board (FOB) shipping point, where the control passes to the customer once the product leaves our warehouse. The Company determines collectability by requiring certain customers to pay before control is transferred and by performing ongoing credit evaluations and monitoring customer accounts receivable balances. As of September 30, 2025, and December 31, 2024, deposits collected from customers for orders to be filled at a future date were $593,096 and $1,014,164, respectively, which are recorded as deferred revenue in the Consolidated Balance Sheets.

Shipping and direct costs charged to customers, along with fees collected from customers for storing their products in our warehouse facility located in Warminster, Pennsylvania are included in revenue as Other Revenue. Shipping and direct costs incurred by the Company are included in Cost of Sales and Service.

Revenue generated for the three months ended September 30, 2025, was as follows:

Foreign revenues for the three months ended September 30, 2025 were approximately $6.1 million while domestic revenue for the three months ended September 30, 2025 was approximately $3.0 million.

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

Foreign revenues for the three months ended September 30, 2024 were approximately $10.3 million while domestic revenue for the three months ended September 30, 2024 was approximately $1.4 million.

Revenue generated for the nine months ended September 30, 2025, was as follows:

Foreign revenues for the nine months ended September 30, 2025 were approximately $20.4 million while domestic revenue for the nine months ended September 30, 2025 was approximately $8.7 million.

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

Foreign revenues for the nine months ended September 30, 2024 were approximately $33.1 million while domestic revenue for the nine months ended September 30, 2024 was approximately $7.4 million.

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 (“ASU 2023-08”). The amendments in ASU 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. The Company adopted ASU 2023-08 for the year ended December 31, 2025, effective as of January 1, 2025, which had a material impact on the financial statements.

In December 2023, the FASB issued ASU No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures (“ASU 2023-09”). ASU 2023-09 expands existing income tax disclosures for rate reconciliations by requiring disclosure of certain specific categories and additional reconciling items that meet quantitative thresholds and expands disclosures for income taxes paid by requiring disaggregation by certain jurisdictions. ASU 2023-09 is effective for annual periods beginning after December 15, 2024; early adoption is permitted. The Company adopted the ASU for the year ended December 31, 2025. The amendments only impact disclosures and are not expected to have an impact on the Company’s financial condition and results of operations.

In December 2024, the FASB issued ASU No. 2024-03, Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40) (“ASU 2024-03”). ASU 2024-03 requires, in the notes to the financial statements, disclosures of specified information about certain costs and expenses specified in the updated guidance. ASU 2024-03 is effective for annual reporting periods beginning after December 15, 2026, and interim reporting periods beginning after December 15, 2027. Early adoption is permitted. The Company did not elect early adoption and is evaluating the impact the updated guidance will have on its disclosures in 2026.

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.

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.

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, 2025, that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.