Company: RIVF
Filing Date: 2025-09-10
Form Type: 10-Q
Source: 0001493152-25-013005
Chunk: 14

Company: Rivulet Entertainment, Inc.
Filing Date: 2025-09-10
Form: 10-Q
Item: Part I, Item 1
Chunk 14
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 measurement attribute for the financial statement recognition and measurement of tax positions
taken or expected to be taken in a tax return. For those benefits to be recognized, a tax position must be more likely than not to be
sustained upon examination by taxing authorities. The Company is currently not aware of any issues under review that could result in
significant payments, accruals or material deviation from its position. The Company is subject to income tax examinations by major taxing
authorities since inception.

Concentration
of Credit Risk

Financial
instruments that potentially subject the Company to concentrations of credit risk consist of a cash account in a financial institution,
which, at times, may exceed the Federal Depository Insurance Coverage of $250,000. As of March 31, 2025, the Company has not experienced
losses on this account and management believes the Company is not exposed to significant risks on such account.

In
addition, the Company’s entire accounts receivable balance as of March 31, 2025 is with a single customer. However, the
Company believes that the customer is in good credit standing and does not have reason to believe that there are any collectability
issues with the outstanding balance.

Accounts
Receivable

Accounts
receivable, net of the allowance for doubtful accounts, represent their estimated net realizable value, which approximates fair value.
Provisions for doubtful accounts are recorded based on historical collection experience, current conditions and reasonable and supportable
forecasts. Receivables are written off when they are deemed uncollectible. As of March 31, 2025 and June 30, 2024, the Company had an
accounts receivable balance of $2.0
million and $0,
respectively. All amounts were deemed collectable as of March 31, 2025.

Fair
Value Measurements

Fair
value is defined as the price that would be received for sale of an asset or paid for transfer of a liability, in an orderly transaction
between market participants at the measurement date. U.S. GAAP establishes a three-tier fair value hierarchy, which prioritizes the inputs
used in measuring fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets
or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). These tiers include:

    ●
    Level
    1, defined as observable inputs such as quoted prices (unadjusted) for identical instruments in