Company: RIVF
Filing Date: 2025-10-15
Form Type: 10-K
Source: 0001493152-25-018109
Chunk: 505

Company: Rivulet Entertainment, Inc.
Filing Date: 2025-10-15
Form: 10-K
Item: Item 8
Chunk 505
---
    Cash paid for interest 
    $799,475  
    $- 
  
    Income taxes paid 
    $-  
    $- 

    Supplemental disclosure of non-cash activity: 

    Debt forgiveness related to reverse merger transaction (Note 8) 
    $8,077,965  
    $- 
  
    Recapitalization 
    $(3,626,770) 
    $- 

(The
accompanying notes are an integral part of these consolidated financial statements)

    (1)
    Financial
    information for the comparative period reflects the combination of certain former Rivulet Media, inc. entities under common control
    that were transferred as part of the reverse merger transaction.

F-6

Rivulet
Entertainment, Inc.

Notes
to Consolidated Financial Statements

For
The Twelve Months Ended June 30, 2025 and 2024

NOTE
1 – NATURE OF THE ORGANIZATION AND BUSINESS

On
July 7, 2024 (the “Closing Date”), Rivulet Entertainment, Inc. (“The Company” or “Rivulet”) completed
its acquisition of certain wholly owned subsidiaries of Rivulet Media, Inc. In consideration for the acquisition of the entities, the
Company agreed to transfer approximately $10 million and 97 million shares to the current owners of Rivulet Media, Inc. On May 19, 2025
the agreement was amended to reduce the cash portion of the purchase price from $10,000,000 to $6,450,000. Furthermore, the conditions
subject to closing and the default provisions were eliminated. As of the date of this filing, the Company has transferred $2,950,000
to the former owners of Rivulet Media, Inc. and had an outstanding balance of $3,500,000, which was classified as other current liabilities
on the Company’s consolidated balance sheets as of June 30, 2025. The transaction was accounted for as a reverse merger
whereby the combined entities of Rivulet Media, Inc. were determined to be the accounting acquirer/legal acquiree and Rivulet Entertainment,
Inc. was determined to be the accounting acquiree/legal acquirer. As such, the comparative financial statements presented in the filing
(for the twelve months ended June 30, 2024) are those of the combined entities of Rivulet Media, Inc. that were transferred as part of
the merger agreement.

The
Company produces, distributes