Company: RIVF
Filing Date: 2025-09-10
Form Type: 10-Q
Source: 0001493152-25-013005
Chunk: 22

Company: Rivulet Entertainment, Inc.
Filing Date: 2025-09-10
Form: 10-Q
Item: Part I, Item 1
Chunk 22
---
 recognized as an increase to additional
paid in capital.

Beneficial
Owner

During
the year ended June 30, 2024, the Company entered into a $2,880,000 note payable agreement with a certain beneficial owner of Rivulet
Media, Inc. The notes are due on February 1, 2026 and have a stated interest rate of 15%. The balance of the loan was $2,880,000 as of
March 31, 2025 and June 30, 2024.

Advances

During
the nine months ended March 31, 2025, the Company advanced funds to a person of Management at Rivulet Entertainment, Inc. in the amount
of $249,139 which is included in other current assets on the condensed consolidated balance sheets. The advance bears no interest and
has no stated maturity date.

NOTE
8 – REVERSE MERGER

During
July of 2024, certain combined entities of Rivulet Media, Inc. entered into a reverse merger with Rivulet Entertainment, Inc. In accordance
with ASC 805, Business Combinations, it was determined that the combined entities should be considered the accounting acquirer
and Rivulet Entertainment, Inc. should be considered the accounting acquiree.

     13

In
determining the number of shares outstanding as of the merger completion date, the Company utilized the guidance in ASC 805-40, Reverse
Acquisitions. Specifically, while the combined entities (that were transferred as part of the transaction) did not have any shares
outstanding as of the merger date, the Company established an exchange ratio based on the number of shares issued by Rivulet Entertainment,
Inc. to effectuate the merger divided by the number of shares outstanding of Rivulet Media, Inc. consolidated immediately prior to the
merger as follows:

 SCHEDULE OF MERGER

    Number of shares issued to effectuate the merger 
      A
     96,722,950 
  
    Rivulet Media inc. consolidated shares outstanding-pre merger 
     B
     144,045,171 
  
    Exchange ratio 
     A/B
     0.67 

Further,
for the recapitalization shares issued amount, the Company determined the implicit number of shares that Rivulet Media, Inc. would have
had to issue in order to provide Rivulet Entertainment, Inc. with an approximate 12% interest in the combined company and multiplied
that amount times the established exchange