Published on : Nov 15, 2022
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 financial results for the three and nine months ended September 30, 2022.
Consolidated Financial Highlights:
Results of Operations-Three Months Ended September 30, 2022 vs September 30, 2021
Results of Operations-Nine Months Ended September 30, 2022 vs September 30, 2021
Balance Sheet Data-September 30, 2022 vs December 31, 2021
iGenius net revenue in the third quarter of 2022 was $12.2 million, a decrease of $2.9 million or 19.0%, over the comparable period in 2021; with the decrease attributable to a $2.2 million decrease in subscription revenue and a $0.6 million decrease in ndau sales. Net revenue for the nine months ended September 30, 2022 was $38.0 million, a decrease of $3.0 million or 7.4% over the comparable period in 2021.
SAFETek net revenue in the third quarter of 2022 was $2.8 million, a decrease of 66.2% or $5.5 million over the comparable period in 2021. Net revenue for the nine months ended September 30, 2022 was $9.5 million, a decrease of 61.9% or $15.5 million over the comparable period in 2021. The decrease in net revenue was a result of the decrease in the value of Bitcoin, an increase in Bitcoin mining difficulty levels as well as older less efficient Bitcoin mining equipment being taken off-line for analysis and repairs during the period, and an increase in depreciation, a result of deploying additional new next-generation miner servers.
The Company continues to expand on its Bitcoin mining operations. During the nine-month period ended September 30, 2022, SAFETek, our Blockchain technology subsidiary, purchased 3,584 new next-generation mining servers. This expansion is intended to extend the Company's initiative to use low-carbon and renewable energy sources in its mining operations. Once these new mining servers are fully deployed, SAFETek will have 99.50% of its mining operation operating from the latest generation and highest efficiency mining technology. This expansion is estimated to add over 100 Petahash per second to operational capacity extending 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% increase in operational hash rate to SAFETek's online hash rate capacity.
SAFETek's equipment acquisition will expand the Company’s mining fleet operating at its Bitcoin mining farm in Europe which operates on close to 100% renewable energy sources of hydro and geothermal energy. SAFETek has significantly reduced its energy and direct operational costs since relocating a majority of its miners to Europe, aided by the level of excess renewable energy sources and favorable climate conditions available from areas which have year-round average temperatures below 50 degrees F.
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 Bitcoin mining space, we have been able to generally maintain operating margins, due in large part to a significant decrease in the average price of Bitcoin, an even larger percentage increase in the average Bitcoin mining difficulty index, and as a result of additional next-generation mining servers we purchased this quarter. Further, in light of the recent revenue compression we have experienced, we have started to scale back expenses in our SAFETek workforce and broaden our focus on ways in which we can diversify our mix of products and services organically and through acquisitions.”
Ralph Valvano, Company CFO added, “Although we experienced erosion in our most recent operating results, we nevertheless still recognized positive net income from operations and an increase in stockholders’ equity at the end of our most recent quarter, despite material industry headwinds and significant non-recurring operating costs. We continue to manage our balance sheet by investing in new next-generation equipment, paying down debt and repurchasing our common stock, while maintaining a strong liquid cash position. Throughout the quarter, we remained laser focused on optimizing our operations across both our SAFETek mining and high performance computing and iGenius business operations. Our conservative approach to managing our balance sheet continues to be paramount for us at Investview. 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.”