Company: RIVF
Filing Date: 2025-10-15
Form Type: 10-K
Source: 0001493152-25-018109
Chunk: 357

Company: Rivulet Entertainment, Inc.
Filing Date: 2025-10-15
Form: 10-K
Item: Item 6
Chunk 357
---
 -  
     - 
  
    In
    production 
     14,215,580  
     9,356,746 
  
    Preproduction 
     798,014  
     668,014 
  
    Total 
    $15,013,594  
    $10,024,760 

NOTE
4 – DEPOSITS

As
of June 30, 2025 and June 30, 2024, the Company held deposits of $866,440 and $854,390, respectively, with various film unions, in accordance
with the requirements of collective bargaining agreements. These deposits are classified as non-current assets on the consolidated
balance sheets. The deposits are intended to secure the Company’s obligations for union-related benefits, including health and
retirement contributions for eligible union members.

The
deposits are refundable upon fulfilment of the Company’s obligations under the terms of the agreements or upon termination of
the agreements. As of June 30, 2025 and June 30, 2024, the Company is in compliance with all applicable union requirements, and no deposits
are subject to forfeiture. The Company monitors its compliance with these agreements on an ongoing basis to ensure all obligations are
met.

NOTE
5 – INVESTMENT IN EQUITY SECURITIES

During
June of 2023 the Company made a $2,000,000
equity investment in Casa Azul Spirits, LLC, a tequila Company incorporated in Delaware, which gave the Company a 5%
ownership stake. As the Company neither controls nor has significant influence over the investee, the investment is recognized in
accordance with ASC 321, Equity Securities. Further, as the equity investment does not have a readily determinable fair value
and does not qualify for the practical expedient to estimate fair value (outlined in ASC 820-10), the Company recognizes its
investments in Casa Azul at cost minus impairment.

The
carrying amount of the investment in Casa Azul was $1,000,000 and $2,000,000
as of June 30, 2025 and June 30, 2024, respectively. During the twelve months ended June 30, 2025, the Company recognized a
$1.0 million impairment on its original $2.0 million investment, resulting in a carrying value of $1.0 million as of June 30, 2025.