Company: RIVF
Filing Date: 2025-10-15
Form Type: 10-K
Source: 0001493152-25-018109
Chunk: 560

Company: Rivulet Entertainment, Inc.
Filing Date: 2025-10-15
Form: 10-K
Item: Item 1C
Chunk 560
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 than not to be
sustained upon examination by taxing authorities. The Company is currently not aware of any issues under review that could result in
significant payments, accruals or material deviation from its position. The Company is subject to income tax examinations by major taxing
authorities since inception. 

Net Loss Per Share

Net loss per share is computed by dividing net loss by the weighted
average number of common shares outstanding during the reporting period. Diluted earnings per share is computed similarly to the basic
earnings per share, except the weighted average number of common shares outstanding are increased to include additional shares from the
assumed exercise of share options, if dilutive. The Company had no outstanding shares issuable to be excluded from the computation
of diluted net loss per share for the periods presented.

Concentration
of Credit Risk

Financial
instruments that potentially subject the Company to concentrations of credit risk consist of a cash account in a financial institution,
which, at times, may exceed the Federal Depository Insurance Coverage of $250,000. As of June 30, 2025, the Company has not experienced
losses on this account and management believes the Company is not exposed to significant risks on such account.

In
addition, virtually the Company’s entire accounts receivable balance as of June 30, 2025 is with a single customer. However, the
Company believes that the customer is in good credit standing and does not have reason to believe that there any collectability issues
with the outstanding balance.

Accounts
Receivable

Accounts
receivable, net of allowance for credit losses, represent their estimated net realizable value, which approximates fair value.
Provisions for expected credit losses are recorded based on historical collection experience, current conditions and reasonable and
supportable forecasts. Receivables are written off when they are deemed uncollectible. As of June 30, 2025 and 2024, the Company had
an accounts receivable balance of approximately $2.0
million and $0
million, respectively. All amounts were deemed collectable as of June 30, 2025.

Fair
Value Measurements

Fair
value is defined as the price that would be received for sale of an asset or paid for transfer of a liability, in an orderly transaction
between market participants at the measurement date. U.S. GAAP establishes a three-tier fair value hierarchy, which prioritizes the inputs
used in measuring fair value. The hierarchy gives the highest priority