Company: RIVF
Filing Date: 2025-10-15
Form Type: 10-K
Source: 0001493152-25-018109
Chunk: 54

Company: Rivulet Entertainment, Inc.
Filing Date: 2025-10-15
Form: 10-K
Item: Item 1A
Chunk 54
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Cost Amortization

Film
cost amortization was approximately $10.5 million for the twelve months ended June 30, 2025. Film cost amortization relates solely to
the amortization of capitalized film costs. As the Company does not expect to generate additional revenues from the film the entire capitalized
film cost balance was amortized, in accordance with ASC 926 - Individual Film Forecast Computation. The Company did not incur
any film cost amortization during the twelve months ended June 30, 2024.

General
and Administrative

General
and administrative expense for the twelve months ended June 30, 2025 and 2024 totaled $3,562,474 and $241,489, respectively. General
and administrative costs for the twelve months ended June 30, 2025 of $3,562,474 consisted of participation costs of $1,995,058, professional
fees of $899,599, music and musician expenses $87,275, travel & meals and entertainment of $100,824, payroll costs of $277,967, external
communication of $61,760 and other expenses of $131,991.

General
and administrative costs for the twelve months ended June 30, 2024 of $241,189 consisted of participation 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