Company: RIVF
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001641172-25-024216
Chunk: 48

Company: Rivulet Entertainment, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 8
Chunk 48
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     798,014  
     668,014 
  
    Total 
    $13,381,616  
    $10,024,760 

NOTE
4 – DEPOSITS

As
of December 31, 2024 and June 30, 2024, the Company held deposits of $1,708,232 and $854,390, respectively, with various film unions,
in accordance with the requirements of collective bargaining agreements. These deposits are classified as non-current assets on the condensed
consolidated balance sheets. The deposits are intended to secure the Company’s obligations for union-related benefits, including
health and retirement contributions for eligible union members.

The deposits are refundable upon fulfillment of the Company’s obligations under the terms of the agreements or upon termination
of the agreements. As of December 31, 2024 and June 30, 2024, the Company is in compliance with all applicable union requirements, and
no deposits are subject to forfeiture. The Company monitors its compliance with these agreements on an ongoing basis to ensure all obligations
are met.

NOTE
5 – INVESTMENT IN EQUITY SECURITIES

During
June of 2023 the Company made a $2,000,000 equity investment in Casa Azul Spirits, LLC, a tequila Company incorporated in Delaware, which
gave the Company a 5% ownership stake. As the Company neither controls nor has significant influence over the investee, we recognize
our investment in accordance with ASC 321, Equity Securities. Further, as the equity investment does not have a readily determinable
fair value and does not qualify for the practical expedient to estimate fair value (outlined in ASC 820-10), the Company recognizes its
investments in Casa Azul at cost minus impairment.

The
carrying amount of the investment in Casa Azul was $2,000,000 as of both December 31, 2024 and June 30, 2024. Further, the Company has
not adjusted the cost of the investment, either upwards or downwards, since it made the initial investment. The Company considered the
price per share disclosed in recent subscription agreements issued by Casa Azul in determining the carrying amount of the investment
as of December 31, 2024.

    11

NOTE
6 – NOTES PAYABLE AND RELATED PARTY LOANS

The
Company enters into loan agreements with both related and non-related parties in order to fund their ongoing film production activities.