Company: RIVF
Filing Date: 2025-07-24
Form Type: 10-Q
Source: 0001376474-25-000660
Chunk: 26

Company: Rivulet Entertainment, Inc.
Filing Date: 2025-07-24
Form: 10-Q
Item: Part I, Item 1
Chunk 26
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30, 2024 and June 30, 2024.
 
Advances
 
During the three months ended September 30, 2024, the Company advanced funds to a person of Management at Rivulet Entertainment, Inc. in the amount of $127,776.  The advance bears no interest and has no stated maturity date.

NOTE 8 – REVERSE MERGER
 
During July of 2024, certain combined entities of Rivulet Media, Inc. entered into a reverse merger with Rivulet Entertainment, Inc. In accordance with ASC 805, Business Combinations, it was determined that the combined entities should be considered the accounting acquirer and Rivulet Entertainment, Inc. should be considered the accounting acquiree.  
 
In determining the number of shares outstanding as of the merger completion date, the Company utilized the guidance in ASC 805-40, Reverse Acquisitions. Specifically, while the combined entities (that were transferred as part of the transaction) did not have any shares outstanding as of the merger date, the Company established an exchange ratio based on the number of shares issued by Rivulet Entertainment, Inc. to effectuate the merger divided by the number of shares outstanding of Rivulet Media, Inc. consolidated immediately prior to the merger as follows:
 
Number of shares issued to effectuate the merger
A
96,722,950   

Rivulet Media inc. consolidated shares outstanding-pre merger  
B
   144,045,171   

Exchange ratio
A/B
0.67   

Further, for the recapitalization shares issued amount, the Company determined the implicit number of shares that Rivulet Media, Inc. would have had to issue in order to provide Rivulet Entertainment, Inc. with an approximate 12% interest in the combined company and multiplied that amount times the established exchange ratio as follows:
 
Gross implicit shares issued by Rivulet Media, inc.   
A
   19,320,000   

Exchange ratio
B
              0.67   

13

Net implicit shares issued
A*B
12,972,926   

NOTE 9 – SHAREHOLDERS’ EQUITY
 
As of September 30, 2024 the Company was authorized to issue multiple series of preferred stock, as outlined below. There were no preferred shares issued or outstanding as of September 30, 2024.