Company: RIVF
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001641172-25-024216
Chunk: 9

Company: Rivulet Entertainment, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 1
Chunk 9
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    The Dink Productions, LLC 
    2024 
    100%

Going
Concern

The
Company had cash of $482,460 as of December 31, 2024, negative working capital of $5.2 million and stockholders’ deficit of $4.2
million. Further, during the six months ended December 31, 2024, the Company incurred a net loss of $3.6 million and cash flow used in
operations of $11.9 million for the interim period ended December 31, 2024. As such, the Company concluded that there is substantial
about its ability to continue as a going concern. The Company hopes to mitigate the conditions or events that raise substantial doubt
about its ability to continue as a going concern through its future sales of movie rights and future capital raises.

Use
of Estimates

The
preparation of financial statements in conformity with U.S. GAAP requires the Company’s management to make estimates and assumptions
that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial
statements and the reported amounts of revenues and expenses during the reporting period. Making estimates requires management to exercise
significant judgment. It is at least reasonably possible that the estimate of the effect of a condition, situation or set of circumstances
that existed at the date of the condensed consolidated financial statements, which management considered in formulating its estimate,
could change in the near term due to one or more future confirming events. The Company bases its estimates on historical experience and
on various assumptions that are believed to be reasonable, the results of which form the basis for the amounts recorded in the condensed
consolidated financial statements.

    6

Cash
and Cash Equivalents

The
Company considers all short-term investments with an original maturity of three months or less when purchased to be cash or cash equivalents.

Film
Costs

In
accordance with ASC 926, Entertainment-Films, the Company reports production costs incurred as a separate asset on its condensed
consolidated balance sheets (“Film costs”). Production costs include all direct negative costs incurred in the physical production
of a film, such as compensation of cast and rental facilities on location, as well as allocations of production overhead and capitalized
interest (if any). Further, costs incurred related to significant changes to a film are added to production costs and subsequently charged
to expense when the Company recognizes the related revenue.

Amortization
of Film Costs

As