Company: RIVF
Filing Date: 2025-10-15
Form Type: 10-K
Source: 0001493152-25-018109
Chunk: 151

Company: Rivulet Entertainment, Inc.
Filing Date: 2025-10-15
Form: 10-K
Item: Item 2
Chunk 151
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 costs of approximately
$10.5 million and impairment of investment in a private company of $1.0 million. Film cost amortization is a non-cash expense and is a reconciling item between net loss and cash flow used in
operations.

Net
cash used in operating activities was approximately $9.5 million for the twelve months ended June 30, 2024. Cash used in operating activities
resulted from net loss for the twelve months ended June 30, 2024 of approximately $0.2 million and a decrease in cash from changes in
operating assets and liabilities of approximately $9.3 million.

Investing
Activities

There
were no investing activities during either the twelve months ended June 30, 2025 or 2024.

Financing
Activities

Net
cash provided by financing activities was approximately $11.0 million for the twelve months ended June 30, 2025 and consisted of proceeds
from notes payable in the amount of approximately $21.7 million and payments on notes payable in the amount of approximately $10.7 million.

Net
cash provided by financing activities was approximately $9.6 million for the twelve months ended June 30, 2024 and consisted of proceeds
from notes payable in the amount of approximately $9.6 million.

CRITICAL
ACCOUNTING ESTIMATES

Impairment
of Capitalized Film Costs

The
Company will test its unamortized film costs whenever events or changes in circumstances indicate that the fair value of a film may be
less than its unamortized costs. If the Company determines that the fair value of a film is less than its unamortized film costs, then
the unamortized capitalized costs for the film will be written down by the amount exceeding the film’s fair value. The unit of
account for impairment testing is the individual film being produced and the fair value is determined using a discounted cash flow technique.

10

Recognition
of Revenue from Contracts with Customers

The
Company recognizes revenue from its contracts with customers in accordance with the core principle outlined in ASC 606, Revenue from
Contracts with Customers. Specifically, “to depict the transfer of promised goods or services to customers in an amount that
reflects the consideration to which we expect to be entitled in exchange for those goods or services”. To that extent, the Company
recognizes revenue in accordance with the ASC Topic by applying the following five steps:

    ●
    Step
    1-