Company: RIVF
Filing Date: 2025-10-15
Form Type: 10-K
Source: 0001493152-25-018109
Chunk: 179

Company: Rivulet Entertainment, Inc.
Filing Date: 2025-10-15
Form: 10-K
Item: Item 2
Chunk 179
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 (20,094,742) 
     (4,890,000)
  
    Total
    notes payable, non-current portion 
    $-  
    $12,098,316 

As
of June 30, 2025, $353,000 of notes were in default as a result of provisions in the respective note agreements requiring payment upon
sale of a film, which has yet to be fulfilled by the Company. As of the date of the filing, $353,000 were still in default and bore an
interest rate of 20% to 25%.

During
the twelve months ended June 30, 2025, the Company entered into certain note agreements totaling $18.2 million. These notes bear interest
at rates of approximately 10% to 20%, and mature dependent upon factors related to future film sales, the closing of a senior debt facility
or certain stated maturity dates, as detailed in the table above.

Additionally,
on October 16, 2024 the Company entered into a one1-year credit facility with total availability of $3.5 million. The full amount of $3.5
million has been drawn as of the date of these consolidated financial statements with an approximate interest rate of 6.5%.

During
the twelve months ended June 30, 2025, the Company paid notes payable of approximately $10.6 million.

    F-16

In
addition to the stated interest rates on the loans, certain loans include a net profit participation feature whereby the lender may receive
an additional return based on the performance of the film underwritten by the loan. Certain of these loans are collateralized by interests
in film rights the Company owns. Additionally, certain of these notes are guaranteed by an individual who is a related party. To that
extent, none of the participation features were triggered as of June 30, 2025. In addition, certain tax credit assignment loans totaling
$750,000 were entered into during fiscal year 2024 whereby the lenders agreed to be paid (on a dollar per dollar basis) from the proceeds
of a refundable tax credit related to the production of the Nutcracker film. While the tax credit was not received as of June 30, 2025,
the Company expects to receive the credit in the near future and has therefore classified the tax assignment loans as current. In order
to receive this tax credit, the Company must have an audit performed on the required financial information