Company: RIVF
Filing Date: 2025-10-15
Form Type: 10-K
Source: 0001493152-25-018109
Chunk: 170

Company: Rivulet Entertainment, Inc.
Filing Date: 2025-10-15
Form: 10-K
Item: Item 2
Chunk 170
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 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 to unadjusted quoted prices in active markets for identical assets
or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). These tiers include:

    ●
    Level
    1, defined as observable inputs such as quoted prices (unadjusted) for identical instruments in active markets;

    ●
    Level
    2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable such as quoted
    prices for similar instruments in active markets or quoted prices for identical or similar instruments in markets that are not active;
    and

    ●
    Level
    3, defined as unobservable inputs in which little or no