Company: RIVF
Filing Date: 2025-07-24
Form Type: 10-Q
Source: 0001376474-25-000660
Chunk: 64

Company: Rivulet Entertainment, Inc.
Filing Date: 2025-07-24
Form: 10-Q
Item: Part I, Item 2
Chunk 64
---
$ (106,786)  
 
$ 7,760   

Net loss before income taxes
 
(603,364)  
 
(95,004)  

Income tax expense
 
-   
 
-   

Net loss before income taxes
 
$ (603,364)  
 
$ (95,004)  

Revenues

17

There were no recognized revenues during the three months ended September 30, 2024 and 2023.

General and Administrative

General and administrative expense for the three months ended September 30, 2024 and 2023 totaled $496,578 and $102,764, respectively.  General and administrative costs for the three months ended September 30, 2024 of $496,578 consisted of professional fees of $187,972, music and musician expenses $87,275, travel & meals and entertainment of $91,598, payroll costs of $53,106, external communication of $34,346 and other expenses of $42,281. General and administrative costs for the three months ended September 30, 2023 of $102,764 consisted of participation costs of $100,000 and other expense of $2,764.

Other (expense) income 

For the three months ended September 30, 2024, other income (expense) totaled ($106,786) which consisted of interest expense of ($106,913) and other income of $127.

For the three months ended September 30, 2023, other income (expense) consisted of other income of $7,760.

Critical Accounting Policies

Impairment of Capitalized Production Costs

The Company will test its unamortized production costs whenever events or changes in circumstances indicate that the fair value of a film may be less than its unamortized costs. If the Company determines that the fair value of a film is less than its unamortized production costs, then the unamortized capitalized costs for the film will be written down by the amount exceeding the film’s fair value. The unit of account for impairment testing is the individual film being produced and the fair value is determined using a discounted cash flow technique.

Recognition of Revenue from Contracts with Customers

The Company recognizes revenue from its contracts with customers in accordance with the core principle outlined in ASC 606, Revenue from Contracts with Customers. Specifically, “to depict the transfer of promised goods or services to customers in an amount that reflects the consideration