Company: RIVF
Filing Date: 2025-10-15
Form Type: 10-K
Source: 0001493152-25-018109
Chunk: 394

Company: Rivulet Entertainment, Inc.
Filing Date: 2025-10-15
Form: 10-K
Item: Item 7
Chunk 394
---
0
million. Further, during the twelve months ended
June 30, 2025, the Company incurred a net loss of $5.9
million and cash flow used in operations of $11.0
million for the twelve months ended June 30, 2025. As such,
the Company concluded that there is substantial 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.

Use
of Estimates

The
preparation of financial statements in conformity with U.S. GAAP requires the Company’s management to make estimates and assumptions
that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial
statements and the reported amounts of revenues and expenses during the reporting period. Making estimates requires management to exercise
significant judgment. It is at least reasonably possible that the estimate of the effect of a condition, situation or set of circumstances
that existed at the date of the consolidated financial statements, which management considered in formulating its estimate,
could change in the near term due to one or more future confirming events. The Company bases its estimates on historical experience and
on various assumptions that are believed to be reasonable, the results of which form the basis for the amounts recorded in the consolidated financial statements.

Cash
and Cash Equivalents

The
Company considers all short-term investments with an original maturity of three months or less when purchased to be cash or cash equivalents.

    F-8

Film
Costs

In
accordance with ASC 926, Entertainment-Films, the Company reports film costs incurred as a separate asset on its consolidated
balance sheets (“Film costs”). Film costs include all direct negative costs incurred in the physical production of a film,
such as compensation of cast and rental facilities on location, as well as allocations of production overhead and capitalized interest
(if any). Further, costs incurred related to significant changes to a film are added to film costs and subsequently charged to expense
when the Company recognizes the related revenue.

Amortization
of Film Costs

As
the Company’s films are monetized on their own, the Company amortizes film costs using the individual-film-forecast-computation
method. Pursuant to that method, unamortized film costs as of the beginning of the current fiscal year are multiplied by the individual-film-forecast-computation
method fraction.