Investview, Inc. (“INVU”) Reports Financial Results, Current Operational and Financial Highlights for the Third Quarter Ended September 30, 2024
Haverford, PA, Nov. 13, 2024 (GLOBE NEWSWIRE) -- Investview, Inc. (OTCQB: INVU), operates 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; 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 our existing base of wholesale customers, with plans to expand our sales and marketing initiatives by developing and offering proprietary products through our global distribution network of independent distributors. 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, is pleased to announce its financial results for the third quarter ended September 30, 2024.
Summary Consolidated Financial Highlights:
Results of Operations-Three Months Ended September 30, 2024 vs September 30, 2023
- Gross Revenue (a Non-GAAP measure) decreased 39.1% to $12.6 million for the three months ended September 30, 2024, compared to $20.7 million for the comparable prior year period.
- Net Revenue decreased 38.7% to $11.7 million for the three months ended September 30, 2024, compared to $19.2 million for the comparable prior year period.
- Net cash provided by operating activities increased 9.6% to $2.0 million for the three months ended September 30, 2024, compared to net cash provided by operating activities of $1.8 million for the comparable prior year period.
- Net loss from operations was $0.7 million, a decrease of 131.1% for the three months ended September 30, 2024, compared to net income from operations of $2.2 million for the comparable prior year period. The net loss for the current three -month period was burdened by a non-cash impairment charge of $977 thousand on mining equipment.
Results of Operations-Nine Months Ended September 30, 2024 vs September 30, 2023
- Gross Revenue (a Non-GAAP measure) decreased 20.8% to $42.9 million for the nine months ended September 30, 2024, compared to $54.1 million for the comparable prior year period.
- Net Revenue decreased 18.9% to $40.5 million for the nine months ended September 30, 2024, compared to $50.0 million for the comparable prior year period.
- Net cash provided by operating activities increased 26.1% to $7.3 million for the nine months ended September 30, 2024, compared to net cash provided by operating activities of $5.8 million for the comparable prior year period.
- Net income from operations decreased 57.7% to $1.6 million for the nine months ended September 30, 2024, compared to a net income from operations of $3.8 million for the comparable prior year period. The net loss for the current nine-month period was burdened by a non-cash impairment charge of $977 thousand on mining equipment.
Balance Sheet Data - September 30, 2024 vs December 31, 2023
- Cash and cash equivalents at September 30, 2024 was $24.5 million, up $3.5 million or 16.9% from $20.9 million at December 31, 2023.
- Total assets decreased by 2.3% or $0.8 million to $32.9 million. Our current ratio remains strong at 2.30 as of September 30, 2024.
- Outstanding debt decreased by $0.2 million to $3.4 million at September 30, 2024, down from $3.6 million at December 31, 2023, with total liabilities increasing by $0.8 million, or 5.6% to $15.7 million as of September 30, 2024.
- Total stockholders’ equity at September 30, 2024 was $17.2 million, a decrease of $1.6 million, or 8.5%, from $18.8 million at December 31, 2023. The decrease was, in large part, attributable to the amount paid by the Company for the private repurchase of shares of our common stock during the first quarter of 2024, when we repurchased and cancelled 472,374,710 shares of our common stock for a purchase price of $3.6 million or an average of $0.007559985 per share, resulting in a 20.2% decrease in common shares issued and outstanding; partially offset by $1.4 million in net income.
Operating Subsidiaries
iGenius net revenue in the third quarter of 2024 was $11.2 million, a decrease of $5.1 million or 31.3% over the comparable period in 2023; with the decrease mainly attributable to a $4.9 million or 30.7% decrease in subscription revenue. Net revenue for the nine months ended September 30, 2024 was $36.2 million, a decrease of $5.9 million or 14.1% over the comparable period in 2023. The decreases were driven by the continued adverse impact of global inflation which caused a general slowdown in the consumer sector, which had an adverse impact on iGenius as it focuses on direct consumer sales and home-based business industry.
SAFETek net revenue in the third quarter of 2024 was $0.6 million, a decrease of $2.3 million or 80.5% over the comparable period in 2023. Net revenue for the nine months ended September 30, 2024 was $4.3 million, a decrease of $3.5 million or 45.2% over the comparable period in 2023. The 80.5% and 45.2% decrease in net revenue, respectively, was the result of an 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. During the second quarter of 2024, on April 19th, “Bitcoin Halving” occurred, which also negatively impacted net revenue.
Operational Highlights
Purchase of Company Shares in a Private Transaction.
On October 25, 2024, we entered into an agreement (the “Agreement”) with three non-affiliate shareholders (the “Sellers”) to repurchase in a private transaction a total of 121 million shares of the Company’s common stock (the “Purchased Shares”). The Purchased Shares represent approximately 6.5% of the Company’s outstanding shares. The Purchased Shares were initially issued to the Sellers in 2017 in connection with a commercial transaction with the Company (the “2017 Issuance”). Upon the closing under the Agreement, the Purchased Shares are to be acquired by the Company for surrender and cancellation at a discount to the closing price of the Company’s common stock on the date of the Agreement (the “Purchase Price”). In addition to reducing the Company’s outstanding shares from 1,859,231,786 to 1,738,231,786, the Company entered into the Agreement, in part, to resolve a dispute related to the 2017 Issuance. The transactions contemplated by the Agreement are scheduled to close subject to the satisfaction of customary closing conditions, including the delivery of the Purchased Shares to the Company. In addition to customary purchase and sale terms, under the Agreement, the Sellers agreed to provide a customary release to the Company and its affiliates; as well, they agreed to certain customary standstill, non-disparagement and non-solicitation covenants. Following closing, the Purchase Price is payable in a series of 10 equal consecutive quarterly payments.
Opencash progress Report.
We expect to launch and commercialize our Opencash brokerage business in the first half of fiscal 2025. The Opencash business is expected to offer DIY (do-it-yourself) investors an online trading platform application to enable a user-friendly self-directed retail brokerage service experience. Investview expects its Opencash brokerage business unit to be revenue accretive as early as Q2/ Q3 2025.
Health and Wellness Product Lines.
We are set to launch and commercialize a new health and wellness business, myLife Wellness Company, in Q1/Q2 2025. This initiative aims to expand existing product lines while leveraging established distribution channels for maximum reach and impact.
We are also set to launch and commercialize our new health and wellness business through our recently completed acquisition of Renu Laboratories, Inc. by Q4/2024-Q1/2025. Renu Labs is a manufacturer of proprietary and other health, beauty and wellness products (“Renu Labs”).
Strategic rationale behind the Renu acquisition:
Victor Oviedo, Investview CEO commented, “Our recent acquisition of Renu Labs is an exciting milestone for our Company’s strategic growth plans. The combination of Renu Labs with our existing business unit, myLife Wellness, is intended to further support our mission and vision at Investview to create and offer unique quality of life (QoL) products and services to help people realize their greatest potential through better financial literacy, technology and accessibility, blockchain sustainability, and now a personal health and wellness lifestyle. Further, through its principal and Founder, Gregg Hanson, an experienced veteran in the industry, Renu Labs has been able to develop a catalog of proprietary and third-party skin, body, hair, nutritional supplement, and personal care products. Following the Company’s integration of the Renu Labs business, the Company plans to operate through a unique B2C direct-to-consumer marketing and product sales delivery model under its newly formed myLife Wellness business unit. We expect that the combination of the Renu Labs business with our global network marketing model will enable us to expand and enhance our customer retention and increase the value of our iGenius global network to its affiliates and customers.”
Mr. Oviedo continued, “Our sales force and consumers are expected to benefit from commercialization of the Renu Labs unique proprietary wellness products namely, “Renu by myLife Wellness “advanced peptide wrinkle corrector serum,” “eye lift and tuck serum,” and its “high potency advanced day and night peptide and collagen renewal serum” for both woman and men.”
Jim Bell, Investview President/ COO added, “The Renu acquisition is a great addition to the Company in multiple ways. It not only adds a proven brand and a collection of proprietary health and wellness products, but most importantly, from a strategic perspective, it positions us to take the first step in the planned diversification of the Company’s business into the expanding health and wellness markets while taking advantage of our existing national and international distribution channels to do so.”
“Furthermore,” Mr. Bell added, “we were looking for just the right partner to form the platform for our strategic growth initiative. With Renu Labs’ nearly three decades of experience in the health and wellness space, we believe Gregg Hanson and Renu Labs are the right partners. It is our expectation that the myLife Wellness/Renu platform will not only enhance our future financial results but will also help consumers achieve a better personal health and wellness lifestyle which aligns with our Company’s Mission and Vision.”
Investview expects the Renu acquisition to be revenue accretive as early as the 4th quarter of 2024 / 1st quarter 2025.
Underlying the expected synergies from the Renu Labs acquisition are the following factors:
• Expanded Product Line: Renu Labs’ advanced peptide serums and personal care products are expected to complement Investview’s iGenius platform, enhancing customer offerings.
• Market Expansion: Our iGenius subsidiary has more than 15,000 global customers and members, including more than 17,000 alumni of the same, creating an attractive, immediate cross-selling opportunity.
• Operational Synergies: The acquisition in conjunction with the Company’s capital investment will enhance product development and innovation and is expected over time to increase recurring revenue through the Company’s existing direct-to-consumer model.
• Proven Industry Expertise: Renu Labs has over 30 years’ experience as a recognized OTC skin care manufacturer specializing in private label and contract manufacturing of high-quality skin, body and hair care and other OTC products, and operates as an FDA-registered and cGMP-compliant facility.
Victor Oviedo concluded, "We are consistently taking a diversified approach to our innovation, strategic partnerships, global expansion and corporate citizenship to fuel sustainable, long-term growth, which we strive for and seek to achieve year-over-year. We believe that the strength of our balance sheet and cash position, along with our consistent focus on our core fundamentals, will generate sustainable long-term value for all stakeholders. “
“Despite slowness in the global economy, we continue to progress on a strategic transformational plan as we move forward with a long-term focus on strategic acquisitions, organic growth, and positioning Investview for sustained financial performance. The headwinds we encountered in the three quarters of 2024 included, among others: a preprogrammed Bitcoin network “Halving” event which occurred in April of this year, a preprogrammed event whereby the Bitcoin block subsidy received by miners from the network is cut in half every four years; a continued increase in mining difficulty levels, and a 60%+ power curtailment mandated and enforced by the government-controlled utility companies in Iceland, due to record low rain/snowfall amounts that constrained hydro power production where our mining equipment is hosted.
“We remain focused on a long-term strategic transformation plan, which seeks to expand and develop the Company as a muti integrated emerging financial technology, beauty, health, wellness and lifestyle ecosystem focused on growth businesses with complementary technology and financial characteristics. Our attention will continue to be on growth and value opportunities in sectors with steady long-term secular growth trends where our global innovation and leadership provides us with a competitive advantage.
“As we progress in 2024 and into 2025, we remain committed to sustaining a strong balance sheet while adopting a more opportunistic approach to capitalize on compelling value propositions in the market. As part of our 2024/2025 growth initiatives, we are actively exploring new business channels which we would like to deliver from both internally developed business channels as well as from potential additional acquisitions, which would be complementary and be highly synergistic to our existing assets and businesses. Moving forward, we will continue to focus on what we can control and setting the stage for long-term value creation for Investview shareholders.”
“Looking ahead, I remain very optimistic about Investview’s future long-term growth prospects as we remain committed to finding the right mix of growth initiatives that will leverage the strengths of our organization and, on a long-term basis, add value to our loyal shareholder base. We believe material opportunities lie ahead of us.”
Jim Bell, Investview President and COO added, “Relative to our operating units we remain bullish that we will be able to address the headwinds we faced during the third quarter of 2024. Beginning in the 2nd quarter of 2025, our iGenius unit expects to launch and expand its platform of new and innovative health and wellness product offerings, that it believes will resonate in its domestic and global markets and align with consumer trends and preferences.”
Ralph Valvano, Investview Chief Financial Officer stated, “We continue to refine our business and financial model as we navigate industry headwinds. Fortunately, we are small enough to be nimble in our financial approach and maintain a strong balance sheet that we expect will support our transformational plans. We exited the quarter with $24.5 million in unrestricted cash and cash equivalents up $3.5 million or 16.9% from $20.9 million at December 31, 2023. Net cash provided by operating activities increased 26.1% to $7.3 million for the nine months ended September 30, 2024, compared to net cash provided by operating activities of $5.8 million for the comparable prior year period. The $24.5 million in cash and cash equivalents at quarter end and our quarterly net cash provided by operating activities allows us to continue to invest in and expand our business lines, as well as the ability to opportunistically complete strategic acquisitions and common share buy-backs, when the right opportunities present themselves. The Company intends to monitor its common stock price and will assess potential opportunities, which could include implementing periodic share repurchases (share buy-back) in the market.
“At the same time, during our transformation, we will remain diligent in pursuing cost saving initiatives, including additional product portfolio optimization, along with expense management. We continue to remain on track with our cost efficiency program as reflected by our reductions in total operating costs and expenses, helping to protect profitability despite downward revenue pressures.”
About Investview, Inc.
Investview, Inc., a Nevada corporation, operates 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; 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. 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. For more information on Investview, please visit: www.investview.com.
About Opencash Securities LLC
Brokerage services are provided by Opencash Securities LLC, a member of FINRA and SIPC. Options involve risk and are not suitable for all investors. Please review Characteristics and Risks of Standardized Options prior to engaging in options trading. Opencash Securities LLC does not provide investment advice. Please consult with investment, tax, or legal professionals before making any investment decisions. All investments involve risks, including the possible loss of capital. Check the background of this investment professional on BrokerCheck. Opencash Securities LLC is a wholly-owned subsidiary of Investview, Inc.
About Renu Laboratories Inc
RENU LABORATORIES is an OTC manufacturer specializing in private label and contract manufacturing that manufactures and develops a collection of proprietary health, beauty and wellness products for its existing base of wholesale customers. Renu is a fully licensed FDA registered & cGMP compliant, facility which provides large and medium size brands needed resources of Research & development, Custom Formulations, Branding & Packaging Design, Product Manufacturing, and Logistics & Distribution to launch and support their brands in today’s market. Renu Laboratories provides a full-service option to new businesses, large established brands, physicians, estheticians, salon owners and skin care professionals. Renu Laboratories has been providing research & development, custom formalization, manufacturing, packaging and delivery services since 1993.
Forward-Looking Statement
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. Our forward-looking statements expect that we will ultimately be able to develop retail brokerage operations at Opencash, although it is currently in the pre-revenue and early stage of its operations. We plan to do this in the time frames we project in this Press Release by, among others, investing the funds we believe are necessary to timely develop the infrastructure necessary to achieve retail operations. This includes, among others, the on-schedule on-boarding of customer support personnel and software developers, the development and implementation of a marketing strategy, the securing of necessary securities clearing arrangements, and the continued development of the online Opencash trading platform and completing its integration with the proprietary algorithmic trading platform we acquired in September 2021. Our forward-looking statements also contemplate that we will ultimately be able to expand and develop the product offerings within our health and beauty business unit to include tangible beauty, health, wellness and lifestyle products that will offer positive margin characteristics and will resonate with consumers. We also expect to be able to expand the manner in which Renu currently markets its products to its wholesale customers to include the offering of proprietary products through our global distribution network of independent distributors. These expectations have been reasonably developed by us based upon acquisition inquiries and initiatives that involve early-stage opportunities that we believe are reasonably likely to materialize; although we cannot assure that these opportunities will mature to the point where we can presume any particular revenue level or scope of future operations. Furthermore, our consumer penetration and margin expectations have been developed based on market analysis that we have extrapolated from industry information, but that we cannot assure. Despite our best efforts, there ultimately can be no assurance that we will be able to achieve any or a substantial portion of our forward-looking objectives on a timely basis, if at all, as: (i) the development of an early-stage securities brokerage business involves inherent regulatory and operational risks and uncertainties, including the uncertain ability of us to integrate the Opencash investment platform application with the proprietary algorithmic trading platform we acquired in September 2021, particularly as the platform we acquired in 2021 has not been placed in commercial service since 2021; thus, any such integration could be subject to IT-related and commercial risks; and (ii) the development of an early-stage consumer products business involves inherent uncertainties, including the uncertain ability to develop products that are commercially accepted, which itself is subject to significant marketing, formulation and product manufacturing risks of execution; nor can we assure that we will yield profit margins that will meet our objectives and support the growth assumptions we believe are possible. 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 most recent Annual Report on Form 10-K, 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.
Investor Relations
Contact: Ralph R. Valvano
Phone Number: 732.889.4300
Email: pr@investview.com
Reconciliation of Gross Revenue to Net Revenue
(unaudited)
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 nine months ended September 30, 2024 is 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 | ||||||
Gross Revenue (non-GAAP) to Net Revenue reconciliation for the nine months ended September 30, 2023 is 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 | ||||||||||
Gross Revenue (non-GAAP) to Net Revenue reconciliation for the three months ended September 30, 2024 is 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 | ||||||
Gross Revenue (non-GAAP) to Net Revenue reconciliation for the three months ended September 30, 2023 is 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 | ||||||||
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