Company: RIVF
Filing Date: 2025-09-10
Form Type: 10-Q
Source: 0001493152-25-013005
Chunk: 37

Company: Rivulet Entertainment, Inc.
Filing Date: 2025-09-10
Form: 10-Q
Item: Part I, Item 2
Chunk 37
---
The
following discussion and analysis should be read in conjunction with the financial statements and related notes included elsewhere in
this Form 10-Q. To that extent, the information discussed below solely reflects the results of the combined entities that were transferred
as part of the agreement with Rivulet Entertainment, Inc. This document contains certain forward-looking statements that involve risks
and uncertainties, such as statements of the Company’s plans, objectives, expectations and intentions. When used in this document,
the words “expects”, “anticipates”, “intends” and “plans” and similar expressions are
intended to identify certain of these forward-looking statements. The cautionary statements made in this document should be read as being
applicable to all related forward-looking statements wherever they appear in this document. Our actual results could differ materially
from those discussed in this document.

Liquidity
and Capital Resources

The
Company had notes payable, which were used to fund our film production, totaling $18,337,509 as of March 31, 2025. Further, the Company
still has a $3,500,000 outstanding balance to Rivulet Media, inc. stemming from the merger transaction.

The
Company will incur significant capital costs as it continues to produce feature length films, such as “The Dink”. In order
to continue to produce films, the Company will need to raise funds through additional borrowings until such time as our operating revenues
from the sale of films are sufficient to meet our cost structure, and ultimately provide profitable operations. There is no assurance
we will be successful in raising additional capital or achieving profitable operations.

Going
Concern

The
Company had cash of $100,633 as of March 31, 2025, negative working capital of $22.6 million and shareholders’ deficit of $9.2
million. Further, during the nine months ended March 31, 2025, the Company incurred a net loss of $4.2 million and cash flow used in
operations of $9.3 million for the nine month period ended March 31, 2025. As such, the Company concluded that there is substantial
doubt about its ability to continue as a going concern. The Company hopes to mitigate the conditions or events that raise
substantial doubt about its ability to continue as a going concern through its future sales of movie rights and future capital
raises.

 16

Cash
Flows

The
following tables summarize the results of our cash flows for the