Company: RIVF
Filing Date: 2025-10-15
Form Type: 10-K
Source: 0001493152-25-018109
Chunk: 242

Company: Rivulet Entertainment, Inc.
Filing Date: 2025-10-15
Form: 10-K
Item: Item 4
Chunk 242
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 costs of $100,000, professional
fees of $121,347, pre-production costs of $7,500 and other expenses of $12,642.

The
increase in general and administrative for the twelve months ended June 30, 2025 as compared to the twelve months ended June 30, 2024
was primarily related to participation costs recognized in the amount of $1,995,058 in the current period, related to a film sale. The
remainder of the increases were primarily due to general organizational ramp-up to administratively support the Company’s in-production
and pre-production films.

Other
(expense) income

For
the twelve months ended June 30, 2025, other expense totaled $1,889,081 which consisted of interest expense of $891,330, impairment
of an investment made in a private company of $1,000,000 and other income of $2,249. For the twelve months ended June 30, 2024,
other income (expense) totaled $0. The increase in other (expense) income was primarily related to the increase in notes payable
during the twelve months ended June 30, 2025 as compared to the twelve months ended June 30, 2024 and the $1.0 million impairment
recognized during the twelve months ended June 30, 2025. Portions of our interest costs related to notes payable are capitalized in
accordance with Accounting Standards Codification (“ASC”) 926, Entertainment-Films and therefore are expensed
through the amortization of capitalized film costs. For the twelve months ended June 30, 2025 and 2024, the Company capitalized $1.8
million and $0.7 million of interest expense to film costs related to various picture film productions.

LIQUIDITY
AND CAPITAL RESOURCES

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 and equity 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.

The
Company had notes payable, which were used to fund our film production, totaling $20,169,282 as of June 30, 2025. Further, the Company
still