Company: RIVF
Filing Date: 2025-06-09
Form Type: 10-KT/A
Source: 0001376474-25-000520
Chunk: 17

Company: Rivulet Entertainment, Inc.
Filing Date: 2025-06-09
Form: 10-KT/A
Chunk 17
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| Costs capitalized under Section 195           | -21.00%           |     | -21.00%           |
| Effective rate                                | 0.00%             |     | 0.00%             |

The Company is considered a start-up company for income tax purposes. As of June 30, 2024, the Company had not commenced its trade operations, so all costs were capitalized under Section 195 of the internal revenue code. Accordingly, the Company had no net operating loss carry forwards, or corresponding deferred tax assets, as of either June 30, 2024, December 31, 2023 or December 31, 2022. Further, the Company did not have any uncertain tax positions as of June 30, 2024.

14 Note 8. Asset Purchase Agreement (restated) On March 1, 2024, the Company and Rivulet Media, Inc., a Delaware corporation (Rivulet), entered into an Asset Purchase Agreement whereby the Company agreed to purchase, with stock and cash, in the amount of 90,784,800 shares of common stock of the Company and $10,069,000, the assets of Rivulet. The acquisition closed during July of 2024 upon receipt of regulatory approval. As a result of the issuance of common stock, the Rivulet Media shareholders gained a controlling financial interest in the combined Company. As such, the Company determined that there was a change in control and that the transaction should be accounted for as a reverse merger with Rivulet Media being considered the accounting acquirer/legal acquiree and the Company being considered the accounting acquiree/legal acquirer. During the six months ended June 30, 2024, the Company transferred $2,950,000 and 67,361,602 shares to Rivulet Media shareholders in anticipation of the merger closing. The cash payment and transferred shares were recognized as a current asset and deduction from equity, respectively. The Company noted that because its shares are thinly traded on the over-the-counter ("OTC") market it would not be appropriate to utilize its share price (as quoted on the OTC market) to determine the fair value of the issues shares. Rather, in accordance with the guidance in ASC 820, the Company utilized the share price based on its most recent sale of unregistered equity securities that occurred prior to the share transfer on April 1, 2024. Specifically, during March of 2024 the Company sold 7,500,000 shares