Tue, Nov 12, 2:19 PM (91 days ago)
Rivulet Entertainment, Inc. (RIVF), an independent film studio, has transitioned its fiscal year-end from December 31 to June 30, necessitating this Form 10-KT filing. As of June 30, 2024, the company reported current assets of approximately $29,933,006 and a net loss of $54,677 for the six-month period, compared to a net loss of $310,877 for the previous fiscal year. The company’s operating expenses totaled $176,627, primarily due to compensation and professional fees. Rivulet's significant strategic move includes acquiring Rivulet Media, resulting in a change of control, where Rivulet Media shareholders now hold a controlling interest. This acquisition was initially valued at $10 million in cash and approximately 90 million shares, with a subsequent increase to 96,722,950 shares due to amendments in the purchase agreement. The company faces liquidity challenges, as highlighted by its substantial cash burn and reliance on related party loans. It has yet to generate revenue from operations and has not declared dividends. The risk factors include a lack of assurance regarding future financing and a "going concern" opinion from auditors. Overall, Rivulet is positioned for growth in the independent film sector, which is projected to expand significantly, but it must navigate substantial operational and financial challenges to achieve profitability.