Company: RIVF
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001641172-25-024216
Chunk: 61

Company: Rivulet Entertainment, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 8
Chunk 61
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 2024. The cost of service relates solely to the amortization of capitalized
film. As the Company does not expect to generate additional revenues from the film the entire film cost balance was amortized and all
of the necessary participation costs were accrued during the period. The Company did not incur any cost of service during the six months
ended December 31, 2023.

General
and Administrative

General
and administrative expense for the six months ended December 31, 2024 and 2023 totaled $2,747,777 and $111,156, respectively. General
and administrative costs for the six months ended December 31, 2024 of $2,747,777 consisted of participation costs of $1,995,058, professional
fees of $345,223, music and musician expenses $87,275, travel & meals and entertainment of $94,557, payroll costs of $150,488, external
communication of $39,771 and other expenses of $35,405.

General
and administrative costs for the six months ended December 31, 2023 of $111,156 consisted of participation costs of $100,000, pre-production
costs of $7,500 and other expenses of $3,396.

 The increase in general and administrative for the six months ended December 31, 2024 as compared to the six months ended December 31,
2023 was primarily related to participation costs recognized in the amount of $1,995,058 in the current period, related to a film sale.
The remainder of the increases were primarily due to general organizational ramp-up to administratively support the Company’s in-production
and pre-production films.

Other
(expense) income

For
the six months ended December 31, 2024, other income (expense) totaled ($410,571) which consisted of interest expense of ($412,547) and
other income of $1,976. For the six months ended December 31, 2023, other income (expense) totaled $0. The increase in other (expense)
income was primarily related to the increase in notes payable during the six months ended December 31, 2024 as compared to the six months
ended December 31, 2023.

Critical
Accounting Estimates

Impairment
of Capitalized Production Costs

The
Company will test its unamortized production costs whenever events or changes in circumstances indicate that the fair value of a film
may