Company: RIVF
Filing Date: 2025-10-15
Form Type: 10-K
Source: 0001493152-25-018109
Chunk: 86

Company: Rivulet Entertainment, Inc.
Filing Date: 2025-10-15
Form: 10-K
Item: Item 1A
Chunk 86
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, 2026 and have a stated interest rate of 15%. The balance of the loan was $2,880,000 as of
June 30, 2025 and June 30, 2024.

Advances

During
the twelve months ended June 30, 2025, the Company advanced funds to a person of Management at Rivulet Entertainment, Inc. in the amount
of $307,000 which is included in other current assets on the consolidated balance sheets. The advance bears no interest and
has no stated maturity date, which is not necessarily indicative of terms a third-party would contractually enter into. 

NOTE
9 – 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.

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 

    F-17

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 ratio as follows:

    Gross
    implicit shares issued by Rivulet Media, inc. 
    A 
     19,320,000 
  
    Exchange
    ratio 
    B 
     0.