Company: RIVF
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001641172-25-024216
Chunk: 45

Company: Rivulet Entertainment, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 8
Chunk 45
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 an orderly transaction
between market participants at the measurement date. U.S. GAAP establishes a three-tier fair value hierarchy, which prioritizes the inputs
used in measuring fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets
or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). These tiers include:

●Level
                                            1, defined as observable inputs such as quoted prices (unadjusted) for identical instruments
                                            in active markets;

●Level
                                            2, defined as inputs other than quoted prices in active markets that are either directly
                                            or indirectly observable such as quoted prices for similar instruments in active markets
                                            or quoted prices for identical or similar instruments in markets that are not active; and

●Level
                                            3, defined as unobservable inputs in which little or no market data exists, therefore requiring
                                            an entity to develop its own assumptions, such as valuations derived from valuation techniques
                                            in which one or more significant inputs or significant value drivers are unobservable.

The
reporting amount of cash represents fair value due to its liquid nature. Further, the stated amounts of related and non-related notes
payable also represent fair value as the borrowings are issued at prevailing market rates. As of December 31, 2024 and June 30, 2024,
the Company did not have any assets measured at fair value on a recurring basis that would require disclosure based on the fair value
hierarchy outlined in ASC 820.

    9

Related
Party Disclosures

The
Company discloses all related party transactions in accordance with the guidance in ASC 850, Related Party Disclosures. To that
extent, amounts of related party transactions are stated on the face of the condensed consolidated balance sheets, condensed consolidated
statements of operations and condensed consolidated statements of cash flows (as applicable).

Segment
Reporting

The
Company currently operates in a single operating segment. Operating segments are reported in a manner consistent with the internal reporting
provided to the Company’s chief operating decision maker (“the CODM”). The Company’s CODM, which is its Chief
Executive Officer, views the Company’s operations and manages its business as a single operating segment, which is currently movie
film production.

Commitments
and Contingencies

The
Company accounts for contingencies in accordance with ASC 450-20, Contingencies. Certain conditions may exist as of the date the
condensed consolidated financial