Company: RIVF
Filing Date: 2025-10-15
Form Type: 10-K
Source: 0001493152-25-018109
Chunk: 547

Company: Rivulet Entertainment, Inc.
Filing Date: 2025-10-15
Form: 10-K
Item: Item 1C
Chunk 547
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 the criteria in ASC 805-10-55, assessing whether the transaction met the definition of a business combination or a reverse recapitalization,
and determining the appropriate presentation and disclosure of the recapitalized equity structure, including additional-paid-in-capital
adjustments. Auditing these judgments and assumptions by the Company involves auditor judgment due to the nature and extent of audit
evidence and effort required to address these matters.

The
primary procedures we performed to address these critical audit matters included the following:

●We
                                            obtained the asset purchase agreement and all related stock issuance, and merger documents
                                            and performed the following procedures.

-Reviewed
                                            APA agreement for all relevant terms.

-Obtained
                                            management’s memo on the accounting treatment for the transaction, read and evaluated whether management’s conclusions and accounting treatment were appropriate

-Evaluated
                                            management’s analysis on determining the accounting acquirer, and whether the legal
                                            acquirer met the definition of a business

-Obtained
                                            management’s memo on the equity recapitalization, read and evaluated whether management’s conclusions and accounting treatment were appropriate

-Tested
                                            management’s computation of the recapitalization adjustments to common stock and additional-paid-in-capital.

-Evaluated
                                            the adequacy of the Company’s disclosures in the financial statements regarding the
                                            nature, accounting treatment, and impact of the reverse merger.

    We have served as the Company’s
    auditor since 2024.
  
     ASTRA
    Audit & Advisory LLC
  
    PCAOB Firm ID #6920
  
    Tampa, Florida
  
    October 15, 2025

F-2

Rivulet
Entertainment, Inc.

Consolidated
Balance Sheets

    2025  
    2024(2) 

    As of June 30, 

    2025  
    2024(2) 

    ASSETS 

    CURRENT ASSETS 

    Cash 
    $128,089  
    $101,721 
  
    Accounts receivable, net 
     1,999,979  
     - 
  
    Prepaid expenses 
     24,983  
     47,044 
  
    Other current assets 
     778,530  
     - 
  
    Total current assets 
    $2,931,581  
    $148,765 

    NONCURRENT ASSETS 

    Film costs 
    $15