Company: RIVF
Filing Date: 2025-10-15
Form Type: 10-K
Source: 0001493152-25-018109
Chunk: 249

Company: Rivulet Entertainment, Inc.
Filing Date: 2025-10-15
Form: 10-K
Item: Item 4
Chunk 249
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does not alter in any way our opinion on the financial statements, taken as a whole, and we are not, by communicating the critical audit
matters below, providing separate opinions on the critical audit matters or on the accounts or disclosures to which they relate.

3702
W Spruce St #1430 ● Tampa, Florida 33607 ● +1.813.441.9707

F-1

Accounting
for Reverse Merger Transaction

As
described in Note 9 to the Company’s financial statements, during the year ended June 30, 2025, the Company completed a reverse
merger transaction in which Rivulet Entertainment Inc. issued shares of its common stock to acquire certain subsidiaries which consolidated
formed Rivulet Media, Inc. In accordance with ASC 805-40, Business Combinations – Reverse Acquisitions, management determined
that Rivulet Media, Inc. is the accounting acquirer and Rivulet Entertainment, Inc. is the legal acquirer, resulting in the transaction
being accounting for as a reverse recapitalization rather than a business combination. Accordingly, the assets and liabilities of Rivulet
Entertainment, Inc. were recorded at their historical carrying values, and the equity structure was retroactively restated to reflect
that of Rivulet Entertainment, Inc.

We
identified the Company’s accounting for the reverse merger transaction as a critical audit matter. The principal considerations
for our determination of this critical audit matter were management’s judgements in determining the accounting acquirer in accordance
with the criteria in ASC 805-10-55, assessing whether the transaction met the definition of a business combination or a reverse recapitalization,
and determining the appropriate presentation and disclosure of the recapitalized equity structure, including additional-paid-in-capital
adjustments. Auditing these judgments and assumptions by the Company involves auditor judgment due to the nature and extent of audit
evidence and effort required to address these matters.

The
primary procedures we performed to address these critical audit matters included the following:

●We
                                            obtained the asset purchase agreement and all related stock issuance, and merger documents
                                            and performed the following procedures.

-Reviewed
                                            APA agreement for all relevant terms.

-Obtained
                                            management’s memo on the accounting treatment for the transaction, read and evaluated whether management’s conclusions and accounting treatment were appropriate

-Evaluated
                                            management’s analysis on determining the accounting acquirer, and whether the legal
                                            acquirer met the definition of a business

-Obtained