Company: RIVF
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001641172-25-024216
Chunk: 26

Company: Rivulet Entertainment, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 1
Chunk 26
---
4. Further, the Company
still has a $3,500,000 outstanding balance to Rivulet Media, inc. stemming from the merger transaction.

The
Company will incur significant capital costs as it continues to produce feature length films, such as “The Dink”. In order
to continue to produce films, the Company will need to raise funds through additional borrowings until such time as our operating revenues
from the sale of films are sufficient to meet our cost structure, and ultimately provide profitable operations. There is no assurance
we will be successful in raising additional capital or achieving profitable operations.

Going
Concern

The
Company had cash of $482,460 as of December 31, 2024, negative working capital of $5.3 million and stockholders’ deficit of $4.2
million. Further, during the six months ended December 31, 2024, the Company incurred a net loss of $3.6 million and cash flow used in
operations of $11.9 million for the six month period ended December 31, 2024. As such, the Company concluded that there is substantial about
its ability to continue as a going concern. The Company hopes to mitigate the conditions or events that raise substantial doubt about
its ability to continue as a going concern through its future sales of movie rights and future capital raises.

16

Cash
Flows

The
following tables summarize the results of our cash flows for the below respective periods:

    For
    the Six Months Ended December 31, 

    2024  
    2023 
  
    Net (loss) income 
    $(3,626,595) 
    $(111,156)
  
    Net cash flows provided by (used in) operating
    activities 
     (11,870,754) 
     (1,974,338)
  
    Net cash flows provided by (used in) investing
    activities: 
     -  
     - 
  
    Net cash flows provided by (used in) financing
    activities: 
     12,251,493  
     1,971,675 
  
    Net change in cash 
     380,739  
     (2,663)
  
    Cash, beginning of period 
     101,721  
     2,683 
  
    Cash, end of period 
    $482,460  
    $20 

Operating
Activities

Net
cash