Company: RIVF
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001641172-25-024216
Chunk: 20

Company: Rivulet Entertainment, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 1
Chunk 20
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3.5
million has been drawn as of the date of these condensed consolidated financial statements with an approximate interest rate of 6.5%.

    12

During
the six months ended December 31, 2024, the Company issued notes payable totaling $0.3 million bearing an interest rate of 20%, due
upon the earlier of a sale of a film or closing of a senior debt facility.

During
the six months ended December 31, 2024, the Company issued approximately $15.4 million of notes payable bearing an interest rate of
10%.

During
the six months ended December 31, 2024, the Company entered into certain note agreements totaling $61,064. These notes bear interest
at a rate of 10%, and mature at dates through March 28, 2025. During the six months ended December 31, 2024, the Company repaid $47,571
of these notes.

During
the six months ended December 31, 2024, the Company paid notes payable of approximately $6.0 million.

In
addition to the stated interest rates on the loans, certain loans include a net profit participation feature whereby the lender may receive
an additional return based on the performance of the film underwritten by the loan. Certain of these loans are collateralized by interests
in film rights the Company owns. Additionally, certain of these notes are guaranteed by an individual who is a related party. To that
extent, none of the participation features were triggered as of December 31, 2024. In addition, certain tax credit assignment loans totaling
$750,000 were entered into during fiscal year 2024 whereby the lenders agreed to be paid (on a dollar per dollar basis) from the proceeds
of a refundable tax credit related to the production of the Nutcracker film. While the tax credit was not received as of December 31,
2024, the Company expects to receive the credit in the near future and has therefore classified the tax assignment loans as current.
In order to receive this tax credit, the Company must have an audit performed on the required financial information, which is currently
in-process.

The
Company had approximately $7.9 million in related party debt to its former parent company as of June 30, 2024. However, in accordance
with the merger agreement all of the debt was forgiven as of the merger consummation date. The debt forgiveness was recognized as an
increase to additional