Company: RIVF
Filing Date: 2025-10-15
Form Type: 10-K
Source: 0001493152-25-018109
Chunk: 245

Company: Rivulet Entertainment, Inc.
Filing Date: 2025-10-15
Form: 10-K
Item: Item 4
Chunk 245
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 price to the performance obligations in the contract

    ●
    Step
    5-Recognize revenue when (or as) the Company satisfies a performance obligation

The
Company’s contracts with its customers currently contain a single performance obligation comprised of a license to motion picture
rights. In accordance with ASC 606, the Company ( i.e. the “licensor”) has concluded that the license transfer should i)
be considered functional intellectual property and ii) that customers (the “licensees” or “distributors”) are
therefore granted a right to access of the Company’s intellectual property throughout the license period. As such, revenue is recognized
at a point in time upon the Company’s delivery of the license to the licensee. The Company does not currently provide any form
of extended payment terms to its customers and, as such, a fixed payment is typically received from the customer within 90 days after
the license is transferred.

In
determining the transaction price, the Company’s contracts with its customers do not include a significant financing component,
non-cash consideration or consideration payable to the customer. However, the Company’s contracts typically will include sales-based
or usage-based royalties that are triggered by the attainment of certain levels of box office receipts or video on demand (“VOD”)
purchases. To that extent, in accordance with ASC 606-10-55, the Company will recognize the sales-based or usage-based royalties only
when the later of the following events occur-a) the subsequent sale or usage occurs or b) the performance obligation to which the sales-based
or usage-based royalty has been satisfied.

As
it pertains to incremental costs of obtaining a contract, the Company does not incur any type of sales commissions.

Investments
in Equity Securities

The
Company accounts for its investments in equity securities without a readily determinable fair value at cost minus impairment in accordance
with ASC 321, Investments-Equity Securities. Further, the Company will continue to recognize its investments without a readily
determinable fair value at cost minus impairment until the investment does not qualify to be measured as such. To that extent, the Company
will re-assess at the end of each reporting period whether the investment still qualifies to be recognized at cost minus impairment.

In
addition to assessing whether the investments still qualify to be recognized at cost minus impairment, the Company will also make a
qualitative assessment at the end of each reporting period considering impairment indicators to evaluate whether the investment is
impaired