Company: RIVF
Filing Date: 2025-10-15
Form Type: 10-K
Source: 0001493152-25-018109
Chunk: 355

Company: Rivulet Entertainment, Inc.
Filing Date: 2025-10-15
Form: 10-K
Item: Item 6
Chunk 355
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 consistent with the internal reporting
provided to the Company’s chief operating decision maker (“the CODM”). The Company’s CODM, which is its Chief
Executive Officer, views the Company’s operations and manages its business as a single operating segment, which is currently movie
film production. The CODM primarily evaluates cash flow from operations and overall liquidity to determine its ability to deliver its
picture films.

Commitments
and Contingencies

The
Company accounts for contingencies in accordance with ASC 450-20, Contingencies. Certain conditions may exist as of the date the consolidated financial statements are issued, which may result in a loss to the Company, but which will only be resolved when
one or more future events occur or fail to occur. The Company assesses such contingent liabilities, and such assessment inherently involves
an exercise of judgment. In assessing loss contingencies related to legal proceedings that are pending against the Company or un-asserted
claims that may result in such proceedings, the Company evaluates the perceived merits of any legal proceedings or un-asserted claims
as well as the perceived merits of the amount of relief sought or expected to be sought therein.

If
the assessment of a contingency indicates that it is probable that a material loss has been incurred and the amount of the liability
can be estimated, then the estimated liability would be accrued in the Company’s consolidated financial statements. If
the assessment indicates that a potentially material loss contingency is not probable but is reasonably possible, or is probable but
cannot be estimated, then the nature of the contingent liability, and an estimate of the range of possible losses, if determinable and
material, would be disclosed. The Company is not currently involved in any legal proceedings that could require either accrual or disclosure.

In
addition to the stated interest rates on the loans, certain of our notes payable include a net profit participation feature whereby the
lender may receive an additional return based on the performance of the film underwritten by the loan. Certain of these loans are collateralized
by interests in film rights the Company owns.

Recent
Accounting Pronouncements

In
November 2023, the FASB issued ASU 2023-07,
Segment Reporting - Improvements to Reportable Segment Disclosures (“ASU 2023-07”), which requires incremental
disclosures related to a public entity’s reportable segments. Required disclosures include, on an annual and interim basis, significant
segment expenses that are regularly provided to the CODM and included within each reported