Company: RIVF
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001641172-25-024216
Chunk: 6

Company: Rivulet Entertainment, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 1
Chunk 6
---
 Rivulet Media, inc. entities under common control that were transferred
as part of the reverse merger transaction

4

Rivulet
Entertainment, Inc.

Notes
to Unaudited Condensed Consolidated Financial Statements

For
The Three and Six Months Ended December 31, 2024

NOTE
1 – NATURE OF THE ORGANIZATION AND BUSINESS

On
July 7, 2024 (the “Closing Date”), Rivulet Entertainment, Inc. (“The Company” or “Rivulet”) completed
its acquisition of certain wholly owned subsidiaries of Rivulet Media, Inc. In consideration for the acquisition of the entities, the
Company agreed to transfer approximately $10 million and 97 million shares to the current owners of Rivulet Media, Inc. On May 19, 2025
the agreement was amended to reduce the cash portion of the purchase price from $10,000,000 to $6,450,000. Furthermore, the conditions
subject to closing and the default provisions were eliminated. As of the date of this filing, the Company has transferred $2,950,000
to the former owners of Rivulet Media, Inc. and had an outstanding balance of $3,500,000, which was classified as other current liabilities
on the Company’s condensed consolidated Balance Sheets as of December 31, 2024. The transaction was accounted for as a reverse merger whereby the
combined entities of Rivulet Media, Inc. were determined to be the accounting acquirer/legal acquiree and Rivulet Entertainment, Inc.
was determined to be the accounting acquiree/legal acquirer. As such, the historical financial statements presented in the filing (for
the period ended June 30, 2024 and for the three and six months ended December 31, 2023) are those of the combined entities of Rivulet
Media, Inc. that were transferred as part of the merger agreement.

The
Company produces, distributes and markets feature-length films, television series and mini-series, and television movies, from initial
creative development through principal photography, postproduction, distribution and ancillary sales.

The
business strategy of Rivulet Entertainment, Inc. as it relates to films, television series, mini-series, and television movies is to
enter into contracts with well-known actors and actresses, acquire scripts able to attract large audiences that have been overlooked
by blockbuster producers, focus on cost control measures, obtain favorable tax credits and financing opportunities. Unlike many smaller
producers, Rivulet