Company: RIVF
Filing Date: 2025-06-26
Form Type: 8-K/A
Source: 0001376474-25-000553
Chunk: 15

Company: Rivulet Entertainment, Inc.
Filing Date: 2025-06-26
Form: 8-K/A
Chunk 15
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 and $427,965 for the fiscal years ended June 30, 2024 and 2023 and are comprised solely of the amortization of capitalized film costs. Production cost amortization of $427,965 for the fiscal year ended June 30, 2023 was comprised of the amortization related to three separate picture films in the amounts of $338,608, $55,544 and $33,813. General and Administrative General and administrative expense for the fiscal years ended June 30, 2024 and 2023 totaled $241,489 and $174,630, respectively. General and administrative costs for the fiscal year ended June 30, 2024 of $241,489 primarily consisted of recording an allowance for current expected credit losses of $120,000, participation costs of $100,000 and bank fees of $16,214. General and administrative costs for the fiscal year ended June 30, 2023 of $174,630 primarily consisted of legal and professional services of $80,190, advertising costs of $36,787 and sales agent fees of $24,948. Critical Accounting Estimates The Company has identified the following critical accounting estimates in accordance with Item 303(b)(3) of Regulation S-K: Amortization of Production Costs As the Company’s films are monetized on their own, the Company amortizes production costs using the individual-film-forecast-computation method. Pursuant to that method, unamortized production costs as of the beginning of the current fiscal year are multiplied by the individual-film-forecast-computation method fraction. To that extent, the Company will begin amortization of capitalized production costs when a film is released, and it begins to recognize revenue from that film. Further, the Company will review and revise its estimate of ultimate revenue as of each reporting date to reflect the most currently available information. Changes to the estimate of ultimate revenue, if any, are accounted for prospectively. Impairment of Capitalized Production Costs The Company will test its unamortized production costs whenever events or changes in circumstances indicate that the fair value of a film may be less than its unamortized costs. If the Company determines that the fair value of a film is less than its unamortized production costs, then the unamortized capitalized costs for the film will be written down by the amount exceeding the film’s fair value. The unit of account for impairment testing is the individual film being produced and the fair value is determined using a discounted cash flow