Investview, Inc. (“INVU”) Announces Financial Results for the Twelve Months Ended December 31, 2022
Haverford, PA, March 31, 2023 (GLOBE NEWSWIRE) — Investview, Inc. (OTCQB: INVU), a diversified financial technology company that through its subsidiaries and global distribution network provides financial technology, education tools, content, research, and management of digital asset technologies with a focus on Bitcoin mining and the new generation of digital assets, is pleased to announce its financial results for the twelve months ended December 31, 2022.
Summary Consolidated Financial Highlights:
Results of Operations and Net Cash Provided by Operating Activities-Twelve Months Ended December 31, 2022 vs Nine Months Ended December 31, 20211
- Gross Revenue (a Non-GAAP measure) decreased 23.4% to $66.6 million for the twelve months ended December 31, 2022, as compared to $86.9 million for the nine months ended December 31, 2021.
- Net Revenue decreased 14.4% to $61.8 million for the twelve months ended December 31, 2022, as compared to $72.2 million for the nine months ended December 31, 2021.
- Net loss from operations decreased 69.6% to $8.6 million for the twelve months ended December 31, 2022, as compared to net loss from operations of $28.4 million for the nine months ended December 31, 2021; with the decrease in net loss largely attributable to a decrease in non-cash impairment charges we incurred during 2022, as compared to the non-recurring/non-cash expense of $51.6 million that we incurred during the nine months ended December 31, 2021 (relating to the manner in which we accounted for the acquisition of the Company’s proprietary software-based trading platform). Our non-cash impairment charges of $14.6 million during 2022 were largely attributable to, among others, a reduction in the financial statement carrying value of our NDAU cryptocurrency holdings, proprietary software-based trading platform, mining equipment, a lower price of Bitcoin, an increase in Bitcoin mining difficulty, and higher depreciation and compensation costs.
- Net cash provided by operating activities was $9.4 million for the twelve months ended December 31, 2022, a decrease of 66.1% versus the nine months ended December 31, 2021.
Balance Sheet Data-December 31, 2022 vs December 31, 2021
- Cash and cash equivalents at December 31, 2022 were $20.5 million, a decrease of $10.5 million from $31.0 million at December 31, 2021, principally as a result of the purchase of new next-generation mining equipment during the current period.
- Total assets at December 31, 2022 were $35.6 million, a decrease of $15.9 million from $51.5 million of assets at December 31, 2021, mainly due to non-cash impairment charges incurred during 2022 attributable to a write-down in the financial statement carrying value attributable to our proprietary software-based trading platform, NDAU cryptocurrency holdings and Bitcoin mining equipment. Our current ratio of 2.21 at December 31, 2022 remains strong, but compares to a decrease of 0.44 from our current ratio of 2.65 at December 31, 2021.
- Outstanding debt at December 31, 2022 was $10.5 million, a decrease of $3.2 million from the $13.7 million of debt at December 31, 2021, with total liabilities also decreasing by $4.4 million during the comparative periods.
- Total stockholders’ equity at December 31, 2022 was $17.4 million, a decrease of $15.9 million from the $28.9 of stockholders’ equity at December 31, 2021. Common stock issued and outstanding decreased by 267.9 million shares; which was largely attributable to a combination of the retirement of shares associated with a settlement between the Company and two former officers and directors, the effective repurchase of shares associated with the payment of certain tax withholdings upon the vesting of restricted shares, and the surrender of previously granted unvested restricted share awards in exchange for common stock purchase options that vest in the future.
1 (The Company switched from a March 31st to a December 31st fiscal year-end in 2021. As such, the audited financial statements for the year ended December 31, 2021, reflect nine (9) months of activity versus twelve (12) months of activity for the year ended December 31, 2022.)
Company CFO, Ralph Valvano, Comments on 2022 Results of Operations
Investview Chief Financial Officer, Ralph Valvano commented, “We experienced erosion in most of our 2022 operating results due to material industry headwinds and significant non-cash impairment charges. However, we continue to manage our balance sheet by investing in new next-generation equipment, adding additional product offerings, paying down debt and arranging for the surrender of a material number of our common shares in certain transactions, while still maintaining a strong liquid cash position. Throughout the year, we remained laser focused on optimizing our operations across both our SAFETek mining and high-performance computing and iGenius business operations. We remain steadfastly committed to effectively managing capital in today’s challenging environment and believe we are well positioned to deliver shareholder value in 2023 and beyond.”
2022 Operational Highlights
SAFETek Operations and Initiatives. SAFETek net revenue for the twelve months ended December 31, 2022, was $12.0 million, a decrease of 48.1% or $11.1 million over the nine months ended December 31, 2021. The decrease in net revenue was a result of the decrease in the value of Bitcoin, an increase in Bitcoin mining difficulty levels and older less efficient Bitcoin mining equipment being taken off-line.
IGenius Operations and Initiatives. iGenius net revenue for the twelve months ended December 31, 2022, was $49.9 million, an increase of $0.7 million or 1.4%, over the nine months ended December 31, 2021; with the increase attributable to a $7.3 million increase in subscription revenue partially offset by a $6.6 million decrease in NDAU sales.
Company President, James Bell, Comments on Operational Highlights
Investview President, James Bell, commented, “Despite a challenging environment in the digital asset space during 2022, SAFETek was able to achieve certain strategic milestones. For example, we expanded our Bitcoin mining operations as we acquired 3,584 new next-generation mining servers and extended our initiative to use low-carbon and renewable energy sources in our mining operations in Europe. With the expansion of new mining servers near completion, SAFETek will have 99.50% of its Bitcoin mining operating from the latest generation and highest efficiency mining technology. This expansion is estimated to extend SAFETek’s total operational hash rate capacity to an estimated 400+ Petahash per Second (equal to .400 EH/s Exahash per Second), representing a nearly 50% year-over-year increase in operational hash rate to SAFETek’s online hash rate capacity. In addition, further increases in operational hash rate capacity to an estimated 503+ Petahash per Second (equal to .503 EH/s Exahash per Second) are expected in the second quarter of 2023 as further expansion of SAFETek’s mining fleet is expected, following which SAFETek expects to increase the efficiency of its energy and direct operational costs by, among others, operating close to 100% of its mining equipment on renewable energy sources of hydro and geothermal energy.”
Company CEO, Victor Oviedo, Looking Ahead
Investview Chief Executive Officer Victor M. Oviedo commented, “We continue to adapt to the changing landscape within the digital asset environment. Despite sustained pressure on the price of Bitcoin and increasing headwinds within the digital asset and Bitcoin mining space, we met each challenge head on, and have emerged more resilient. In addition to achieving several operational milestones during the year, we responded to our revenue compression by scaling back workforce and developing a plan to rationalize operational and overhead expenses. However, we recognize that our way to increased profitability on a long-term basis is not through expense reduction. We continue to actively assess the strengths of the organization and consider strategic initiatives by which we can build on those strengths to diversify and grow our business. This includes, among others, a continued focus upon our plans to develop a financial services business that builds upon our proprietary software-based trading platform. At the same time, we continue to recognize that our iGenius distribution network offers a fully-developed international sales and marketing platform that we believe is capable of significant growth. In view of that objective, we are actively evaluating strategic initiatives by which we can expand the mix of products and services offered through our iGenius distribution network to bring unique and differentiated products to market.”
Mr. Oviedo continued, “Looking ahead, I am optimistic about Investview’s future growth prospects, given the strength of its current businesses and balance sheet. I remain committed to finding the right mix of growth initiatives that will leverage the strengths of this organization and, on a long-term basis, reward our loyal shareholder base.”
About Investview, Inc.
Investview, Inc., a Nevada corporation, a financial technology (FinTech) services company, operates several different businesses, including a Financial Education and Technology business that delivers a series of products and services involving financial education, digital assets and related technology, through a network of independent distributors; a Blockchain Technology and Crypto Mining Products and Services business including leading-edge research, development and FinTech services involving the management of digital asset technologies with a focus on Bitcoin mining and the new generation of digital assets. In addition, we are planning to create a Brokerage and Financial Markets business within the investment management and brokerage industries by commercializing on a proprietary trading platform we acquired in September 2021. For more information on Investview, please visit: www.investview.com.
All statements in this release that are not based on historical fact are “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements, which are based on certain assumptions and describe our future plans, strategies, and expectations, can generally be identified by the use of forward-looking terms such as “believe,” “expect,” “may,” “should,” “could,” “seek,” “intend,” “plan,” “goal,” “estimate,” “anticipate” or other comparable terms. These forward-looking statements are based on Investview’s current beliefs and assumptions and information currently available to Investview and involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance, or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by these forward-looking statements. Statements made by the Company regarding the operating speed and capacity of its mining servers are based solely on the Company’s reliance on manufacturer’s technical specifications. Our forward-looking statements also assume that we will be able, at some time in the future, to develop a business within the investment management and brokerage business. This assumes, however, that we are able to either start-up or acquire a registered broker- dealer, although there can be no assurance that we will be able to locate, or secure financing sufficient to acquire, one or more suitable acquisition targets within this business sector, and if we can, there can be no assurance that we will be able to secure the required FINRA approval; particularly given: (i) the inability to secure FINRA consent on an aborted acquisition within the brokerage industry during 2022; and (ii) our ongoing regulatory matters with the SEC. More information on potential factors that could affect Investview’s financial results is included from time to time in Investview’s public reports filed with the U.S. Securities and Exchange Commission, including the Company’s Annual Report on Form 10-K for the year-ended December 31, 2022, Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K. The forward-looking statements made in this release speak only as of the date of this release, and Investview, Inc. assumes no obligation to update any such forward-looking statements to reflect actual results or changes in expectations, except as otherwise required by law.
Contact: Ralph R. Valvano
Phone Number: 732.889.4300
Email: [email protected]
Reconciliation of Gross Revenue to Net Revenue
As used in this report, Gross Revenues are not a measure of financial performance under United States Generally Accepted Accounting Principles (“GAAP”). Gross Revenues are presented as they are used by management to understand the total revenue before certain items such as refunds, incentives, credits, chargebacks and amounts paid to third party providers. The non-GAAP Gross Revenue measure is a supplement to the GAAP financial information. A reconciliation between Gross Revenue (non-GAAP) and Net Revenue is presented in the table below.
Gross Revenue (non-GAAP) to Net Revenue reconciliation for the twelve months ended December 31, 2022 is as follows:
|Cryptocurrency Revenue||Mining Revenue||Mining Equipment Repair Revenue||Digital Wallet Revenue||Total|
|Refunds, incentives, credits, and chargebacks||(3,194,725||)||–||–||(1,924||)||–||(3,196,649||)|
|Amounts paid to supplier||–||(1,574,506||)||–||–||(1,288||)||(1,575,794||)|
Gross Revenue (non-GAAP) to Net Revenue reconciliation for the nine months ended December 31, 2021 is as follows:
|Cryptocurrency Revenue||Mining Revenue||Mining Equipment Repair Revenue||Total|
|Refunds, incentives, credits, and chargebacks||(2,739,969||)||–||–||–||(2,739,969||)|
|Amounts paid to supplier||–||(11,950,078||)||–||–||(11,950,078||)|
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