Company: RIVF
Filing Date: 2025-09-10
Form Type: 10-Q
Source: 0001493152-25-013005
Chunk: 18

Company: Rivulet Entertainment, Inc.
Filing Date: 2025-09-10
Form: 10-Q
Item: Part I, Item 1
Chunk 18
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accordance with the requirements of collective bargaining agreements. These deposits are classified as non-current assets on the condensed
consolidated balance sheets. The deposits are intended to secure the Company’s obligations for union-related benefits, including
health and retirement contributions for eligible union members.

The deposits are refundable upon fulfillment of the Company’s obligations under the terms of the agreements or upon termination
of the agreements. As of March 31, 2025 and June 30, 2024, the Company is in compliance with all applicable union requirements, and no
deposits are subject to forfeiture. The Company monitors its compliance with these agreements on an ongoing basis to ensure all obligations
are met.

NOTE
5 – INVESTMENT IN EQUITY SECURITIES

During
June of 2023 the Company made a $2,000,000 equity investment in Casa Azul Spirits, LLC, a tequila Company incorporated in Delaware, which
gave the Company a 5% ownership stake. As the Company neither controls nor has significant influence over the investee, it recognizes its
 investment in accordance with ASC 321, Equity Securities. Further, as the equity investment does not have a readily determinable
fair value and does not qualify for the practical expedient to estimate fair value (outlined in ASC 820-10), the Company recognizes its
investments in Casa Azul at cost minus impairment.

The
carrying amount of the investment in Casa Azul was $2,000,000 as of both March 31, 2025 and June 30, 2024. Further, the Company has not
adjusted the cost of the investment, either upwards or downwards, since it made the initial investment. The Company considered the price
per share disclosed in recent subscription agreements issued by Casa Azul in determining the carrying amount of the investment as of
March 31, 2025.

     11

NOTE
6 – NOTES PAYABLE AND RELATED PARTY LOANS

The
Company enters into loan agreements with both related and non-related parties in order to fund their ongoing film production activities.
To that extent, the Company had the following outstanding debt as of March 31, 2025 and June 30, 2024:

 SCHEDULE OF NOTES PAYABLE AND RELATED PARTY LOAN

    March 31, 2025  
    June 30, 2024 

    Current notes payable; Issued December 2023-January 2024; 15% stated