Company: RIVF
Filing Date: 2025-10-15
Form Type: 10-K
Source: 0001493152-25-018109
Chunk: 85

Company: Rivulet Entertainment, Inc.
Filing Date: 2025-10-15
Form: 10-K
Item: Item 1A
Chunk 85
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 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 June 30, 2025. 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 June 30, 2025,
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 paid in capital. Upon settlement of the transaction an additional $0.2 million of liabilities were forgiven, resulting
in total liability forgiveness of $8.1 million.

NOTE
8 – RELATED PARTY TRANSACTIONS

Rivulet
Media, Inc.

As
part of the merger transaction, the transferred entities had $7,888,316 of intercompany loans with Rivulet Media, Inc. as of June 30,
2024. The intercompany loans did not include a stated interest rate or due date. Further, as a result of the transaction, the loans were
forgiven by Rivulet Media, Inc. as of the merger consummation date. Upon settlement of the transaction an additional $189,649 of liabilities
were forgiven, resulting in total liability forgiveness of $8,077,965. The debt forgiveness was recognized as an increase to additional
paid in capital.

Beneficial
Owner

During
the year ended June 30, 2024, the Company entered into a $2,880,000 note payable agreement with a certain beneficial owner of Rivulet
Media, Inc. The notes are due on February 1