Company: RIVF
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001641172-25-024216
Chunk: 38

Company: Rivulet Entertainment, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 8
Chunk 38
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 all of its guaranteed contracts that it negotiates upfront for a film to be
produced. This strategy permits the Company to raise less equity capital and obtain short-term bridge loans thereby permitting much larger
budgets than historically could be obtained by independent film producers. Management believes this strategy enables the Company to produce
films with budgets of up to $50 million although historically the Company has spent less than $15 million on each of its films to date.
This strategy also permits the Company to forego the risks associated with a speculative movie venture which may or may not repay its
funding sources by pre-selling contracts to distributors such as Netflix who are looking for content to reach its viewers. The Company
can also determine whether to sell its domestic or international rights to another production company if unanticipated cash needs develop
while in production.

We
intend to grow and diversify our portfolio of content to capitalize on demand from emerging and traditional platforms throughout the
world. We will attempt to maintain a disciplined approach to acquisition, production, and distribution of product by balancing our financial
risks against the probability of commercial success for each project. We pursue the same disciplined approach to investments in, and
acquisition of, libraries and other assets complementary to the Company’s business. We believe that our strategic focus on content and creation
of innovative content distribution strategies will enhance our competitive position in the industry, ensure optimal use of the Company’s capital,
build diversified foundation for future growth, and generate significant long-term value for the Company’s stockholders.

NOTE
2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis
of Presentation

These
accompanying condensed consolidated unaudited financial statements have been presented in United States dollars (“$” or
“USD”) and are prepared in accordance with United States generally accepted accounting principles (“US
GAAP”) for interim financial information and with Article 8 of Regulation S-X. In addition, as a film production company, the
Company also complies with the incremental guidance in Accounting Standards Codification (“ASC”) 926, Entertainment-Films.
All comparative period financial information reflects the condensed consolidated results of the former Rivulet Media, Inc. entities
under common control that were transferred as part of the transaction.

The unaudited condensed consolidated financial statements included herein
are unaudited; however, they contain all normal recurring accruals and adjustments that, in the opinion of management, are necessary to
present fairly the Company’s financial position at December 31, 2024,