Executive Summary

Q3 2022 net revenue fell 35.8% year over year to $15.0M, driven by sharp declines in Bitcoin mining and cryptocurrency product sales; operating income swung positive to $0.5M versus a large prior-year operating loss, reflecting lapping of a $51.6M non-cash charge in Q3 2021 .
iGenius net revenue decreased 19% YoY to $12.2M; SAFETek (Bitcoin mining) net revenue decreased 66% YoY to $2.8M amid lower Bitcoin prices, higher network difficulty, and older equipment taken offline .
Balance sheet remained liquid: cash and equivalents were $19.1M; current ratio 2.21; debt reduced to $11.1M; stockholders’ equity rose to $31.4M .
The company did not provide formal guidance and Street consensus was unavailable; results were primarily affected by crypto market headwinds and cost actions; management emphasized cost discipline and diversification initiatives as catalysts for 2023+ .

What Went Well and What Went Wrong

What Went Well
- Positive operating income of $0.5M vs. a $(44.2)M prior-year operating loss, as the prior year included a $51.6M non-cash charge from MPower/Prodigio accounting; core operating costs declined materially YoY excluding that item .
- Strong liquidity and deleveraging: cash $19.1M, current ratio 2.21, and debt reduced by $2.6M to $11.1M; equity increased to $31.4M .
- Strategic fleet upgrade: purchase of 3,584 next‑gen mining servers expected to add 100+ PH/s, with 99.5% of mining operations migrating to latest-generation ASICs and near 100% renewable energy sources in Europe .
- Quote: “We have been able to generally maintain operating margins… due in large part to… additional next-generation mining servers we purchased this quarter.” — CEO Victor Oviedo .
What Went Wrong
- Revenue compression: net revenue down 36% YoY to $15.0M; mining revenue fell 67% YoY to $2.78M due to lower BTC price, increased network difficulty, and older equipment offline; cryptocurrency revenue fell to $0.35M .
- Segment pressure: iGenius net revenue fell 19% YoY to $12.2M (lower subscriptions and ndau sales); SAFETek net revenue fell 66.2% YoY to $2.8M .
- Earnings burden from crypto realized losses and related-party interest: realized crypto loss of $0.32M and related-party interest expense of $0.31M in Q3 weighed on net results, yielding a net loss of $(0.42)M .
- CFO noted “erosion in our most recent operating results” and “higher short-term legal expenses,” despite positive operating income, highlighting ongoing industry and cost headwinds .

Financial Results

Metric	Q3 2021	Q2 2022	Q3 2022
Revenue ($USD)	$23,371,100	$14,765,621	$14,996,159
Net Income ($USD)	$(43,244,849)	$(99,708)	$(420,679)
Operating Income ($USD)	$(44,215,858)	$1,599,429	$523,014
Diluted EPS ($USD)	$(0.01)	$0.00	$0.00
Net Income Margin (%)	-185.1%	-0.7%	-2.8%
Operating Margin (%)	-189.2%	10.8%	3.5%

Notes: Margins are calculated from cited revenue and income figures; Q3 2021 margin distortion reflects a $51.6M non-cash loss related to the MPower/Prodigio accounting .

Segment Breakdown (Net Revenue)

Segment	Q3 2021	Q3 2022
iGenius ($USD Millions)	$15.1	$12.2
SAFETek ($USD Millions)	$8.3	$2.8

KPIs and Balance Sheet

KPI	Dec 31, 2021	Sep 30, 2022
Cash and Equivalents ($USD)	$30,995,283	$19,081,445
Total Debt ($USD)	$11,402,659	$9,199,870
Outstanding Debt (press release) ($USD)	$13.7M	$11.1M
Stockholders’ Equity ($USD)	$28,939,841	$31,417,375
Current Ratio	2.65 (calc)	2.21
Cryptocurrency Assets (cost basis) ($USD)	$2,141,093	$3,018,759

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Revenue	FY/Quarter	None provided	None provided	Maintained (no formal guidance)
Margins/OpEx/Tax/Segments	FY/Quarter	None provided	None provided	Maintained (no formal guidance)

Earnings Call Themes & Trends

No Q3 2022 earnings call transcript was available. Themes are drawn from filings and the press release.

Topic	Previous Mentions (Q1 2022)	Previous Mentions (Q2 2022)	Current Period (Q3 2022)	Trend
Bitcoin price & network difficulty	Highlighted as drivers of mining revenue decline; +27% global difficulty; BTC price down ~9% YoY	Ongoing headwinds; mining revenue down; difficulty and realized crypto losses noted	Continued pressure; mining revenue -67% YoY; older equipment offline; Europe relocation for renewable energy	Persistent headwind
Subscription/iGenius performance	Strong YoY growth in Q1 subscriptions; membership expansion	Slight YoY increase Q2 subscriptions; overall revenue down due to crypto/mining	iGenius net revenue -19% YoY; lower subscriptions & ndau sales	Softening demand
Regulatory/legal environment	SEC subpoena disclosed; cooperating; crypto product scrutiny	Continued disclosure of SEC investigation; banking relationship risks flagged	No new legal events; reiteration of industry/regulatory headwinds	Ongoing scrutiny
Cost management & liquidity	Positive operating cash flow; miner relocation reduced costs	Operating cash flow, liquidity maintained; capex for fleet expansion	Liquidity strong; debt reduced; equity up; workforce scaled back in SAFETek	Disciplined
Brokerage/Prodigio strategy	Plan to commercialize Prodigio via brokerage acquisitions (pending FINRA)	Termination of brokerage purchase; searching alternatives; IFGH strategy	Still pursuing diversification; no guidance/timing changes disclosed	In development

Management Commentary

CEO Victor Oviedo: “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… as a result of additional next-generation mining servers we purchased this quarter… scaling back expenses in our SAFETek workforce and broaden[ing] our focus on ways in which we can diversify…” .
CFO Ralph Valvano: “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… We continue to manage our balance sheet by investing in new next-generation equipment, paying down debt and repurchasing our common stock… well positioned to deliver shareholder value in 2023 and beyond.” .

Q&A Highlights

No Q3 2022 earnings call transcript was located; therefore, Q&A highlights and guidance clarifications are unavailable [ListDocuments returned none].

Estimates Context

Wall Street consensus estimates (EPS and revenue) were unavailable. S&P Global Capital IQ requests hit the daily limit, and no visible consensus exists for this micro-cap OTC name; hence, comparisons vs. estimates cannot be presented [GetEstimates errors shown].

Key Takeaways for Investors

Crypto sensitivity remains the key driver: mining revenue fell 67% YoY on BTC price/difficulty and equipment downtime; expect share price to remain highly correlated to Bitcoin/network conditions .
Core operations stabilized: operating income turned positive and equity increased, suggesting disciplined cost control amid revenue compression .
Liquidity intact with deleveraging: cash $19.1M, current ratio 2.21, and debt reduced to $11.1M provide flexibility to navigate volatility and fund fleet upgrades .
Segment roadmap: iGenius softness (subscriptions/ndau) implies near-term topline pressure; strategic diversification (Prodigio/brokerage, renewable-centered mining) is a medium-term thesis but execution/approval risk is non-trivial .
Non-GAAP Gross Revenue is supplemental; focus on GAAP net revenue and operating income for assessing trend trajectory; the 2021 non-cash MPower accounting charge skews YoY comps materially .
Near term: trading likely headline/crypto-driven; medium term: watch deployment of next-gen miners and any tangible progress on brokerage commercialization/IFGH strategy as potential valuation re-rating catalysts .

Sources: SEC Form 8‑K with Exhibit 99.1 (press release) dated Nov 14, 2022 ; Q3 2022 Form 10‑Q filed Nov 14, 2022 ; Q2 2022 10‑Q (Aug 15, 2022) ; Q1 2022 10‑Q (May 23, 2022) .

Investview, Inc. (INVU)·Q3 2022 Earnings Summary