Company: RIVF
Filing Date: 2025-10-15
Form Type: 10-K
Source: 0001493152-25-018109
Chunk: 437

Company: Rivulet Entertainment, Inc.
Filing Date: 2025-10-15
Form: 10-K
Item: Item 7A
Chunk 437
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receivable, net of allowance for credit losses, represent their estimated net realizable value, which approximates fair value.
Provisions for expected credit losses are recorded based on historical collection experience, current conditions and reasonable and
supportable forecasts. Receivables are written off when they are deemed uncollectible. As of June 30, 2025 and 2024, the Company had
an accounts receivable balance of approximately $2.0
million and $0
million, respectively. All amounts were deemed collectable as of June 30, 2025.

Fair
Value Measurements

Fair
value is defined as the price that would be received for sale of an asset or paid for transfer of a liability, in 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 June 30, 2025 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.

    F-11

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