Company: RIVF
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001641172-25-024216
Chunk: 19

Company: Rivulet Entertainment, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 1
Chunk 19
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     - 
  
    Non-current notes payable; Issued July 2024-September
    2024; 15% stated interest rate; Due upon sale of film 
     125,000  
     - 
  
    Tax credit assignment loans; Issued January
    of 2024; Participation in future tax receivable; No stated interest rate or due date 
     750,000  
     750,000 
  
    Related party notes payable to a beneficial
    owner; Issued October-November of 2023; 15% stated interest rate; Due February 1, 2026 (refer to Note 8) 
     2,880,000  
     2,880,000 
  
    Related party notes
    payable to parent company; Issued at various dates; no stated interest rate or due date (refer to Note 8) 
     -  
     7,888,316 
  
    Total notes payable 
     21,330,438  
     16,988,316 
  
    Less current maturities 
     (5,332,510) 
     (4,890,000)
  
    Total notes payable,
    non-current portion 
    $15,997,928  
    $12,098,316 

As
of December 31, 2024, certain notes totaling $1,690,000, were in technical default as a result of non-payment. However, per the terms
of the notes, the default interest rate of 25% cannot be triggered unless a default notice is received from the lender(s). Additionally,
$250,000 of notes were in default as a result of provisions in the respective note agreements requiring payment upon sale of a film,
which has yet to be fulfilled by the Company. As of the date of the filing, $340,000 were still in default and bore an interest rate of 20% to 25%.

During
the six months ended December 31, 2024, the Company entered into certain note agreements totaling $0.9 million. These notes bear interest
at rates of 15% to 20%, and mature dependent upon factors related to future film sales or the closing of a senior debt facility.

On
October 16, 2024 the Company entered into a one-year1 credit facility with total availability of $3.5 million. The full amount of $