Company: RIVF
Filing Date: 2025-07-24
Form Type: 10-Q
Source: 0001376474-25-000660
Chunk: 24

Company: Rivulet Entertainment, Inc.
Filing Date: 2025-07-24
Form: 10-Q
Item: Part I, Item 1
Chunk 24
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2,880,000  

Related party notes payable to  parent company;Issued at various dates; no stated interest rate or due date (refer to Note 8)
 
-  
 
7,888,316  

Total notes payable
 
10,041,064  
 
16,988,316  

Less current maturities
 
(4,951,064) 
 
(4,890,000) 

Total notes payable, non-current portion
 
$5,090,000  
 
$12,098,316  

As of September 30, 2024, certain notes totaling $4,140,000, were in technical default as a result of non-payment. However, per the terms of the notes, the default interest rate of 25% cannot be triggered unless a default notice is received from the lender(s). Notes totaling $2,450,000 were paid-down during October 2024. Subsequently, a default notice was received for $1,500,000 in notes during November of 2024 at which time the interest rate on the notes increased from 15% to 25%. These notes totaling $1,500,000 of the notes were paid off during the three months ended March 31, 2025. The remaining $190,000 were still in default as of the time of this filing and bore an interest rate of 25%. 
 
During the three months ended September 30, 2024, the Company entered into certain note agreements totaling $61,064. These notes bear interest at a rate of 10%, and mature at dates through March 28, 2025.  
 
Additionally, during the three months ended September 30, 2024, the Company entered into certain note agreements totaling $880,000. These notes bear interest at rates of 15% to 20%, and mature dependent upon factors related to future film sales or the closing of a senior debt facility.  
 
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 September 30, 2024. In addition, certain