Company: RIVF
Filing Date: 2025-10-15
Form Type: 10-K
Source: 0001493152-25-018109
Chunk: 32

Company: Rivulet Entertainment, Inc.
Filing Date: 2025-10-15
Form: 10-K
Item: Item 1
Chunk 32
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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. The
Company did not recognize any impairment for the twelve months ended June 30, 2024. The Company considered the price per share disclosed in recent subscription
agreements issued by Casa Azul in determining the carrying amount of the investment as of June 30, 2025.

    F-13

NOTE
6 – INCOME TAXES

Income
taxes for our fiscal years ended June 30, 2025 and June 30, 2024 were as follows:

 SCHEDULE OF  SCHEDULE OF INCOME TAXES

     June
                                            30, 2025  
     June
                                            30, 2024 
  
    Current: 

    Federal 
    $-  
    $- 
  
    State 
     -  
     - 
  
    Total
    Current 
     -  
     - 
  
    Deferred: 

    Federal 
    $-  
    $- 
  
    State 
     -  
     - 
  
    Total
    Deferred 
     -  
     - 
  
    Total
    Tax Provision 
    $-  
    $- 

The
Company accounts for income taxes under ASC 740, Income Taxes (“ASC 740”), which provides for an asset and liability
approach of accounting for income taxes. Under this approach, deferred tax assets and liabilities are recognized based on anticipated
future tax consequences, using currently enacted tax laws, attributed to temporary differences between the carrying amounts of assets
and liabilities for financial reporting purposes and the amounts calculated for income tax purposes.

The
Company recognizes deferred tax assets to the extent that it believes that these assets are more likely than not to be realized. In making
such a determination, the Company considers all available positive and negative evidence, including future reversals of existing taxable
temporary differences, projected future taxable income, tax-planning strategies