Company: RIVF
Filing Date: 2025-10-15
Form Type: 10-K
Source: 0001493152-25-018109
Chunk: 540

Company: Rivulet Entertainment, Inc.
Filing Date: 2025-10-15
Form: 10-K
Item: Item 1C
Chunk 540
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ilms 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 has a $3,500,000 outstanding balance to Rivulet Media, inc. stemming from the merger transaction.

Going
Concern

The
Company had cash of $128,089 as of June 30, 2025, negative working capital of approximately $23.4 million and accumulated deficit
of approximately $11.0 million. Further, during the twelve months ended June 30, 2025, the Company incurred a net loss of approximately
$5.9 million and cash flow used in operations of approximately $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.

9

Cash
Flows

The
following tables summarize the results of our cash flows for the below respective periods:

    For the Twelve Months Ended June 30, 

    2025  
    2024 
  
    Net loss 
    $(5,919,900) 
    $(181,489)
  
    Net cash flows used in operating activities 
     (10,976,200) 
     (9,456,373)
  
    Net cash flows provided by financing activities 
     11,002,568  
     9,555,411 
  
    Net change in cash