UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(MARK ONE)

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934

For the Quarterly Period Ending ~~March~~September 3130, 2025

☐ TRANSITION REPORT UNDER SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from _________ to _________

Commission File Number: 000-52390

Rivulet Entertainment, Inc.

(Exact name of registrant as specified in its charter)

Nevada

98-0511932

(State or other jurisdiction

of incorporation or organization)

(I.R.S. Employer

Identification No.)

7659 E. Wood Drive, Scottsdale, AZ 85260

(Address of principal executive offices)

(480) 704-4183

(Registrant’s telephone number, including area code)

Title of each class		Trading Symbol(s)		Name of each exchange on which registered
Common Stock par value $0.001 per share		RIVF		OTC pk

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months.

Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” non-accelerated filer “smaller reporting company” or “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	☐	Accelerated filer	☐
Non-accelerated filer	☒	Smaller reporting company	☒
		Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.

As of ~~September~~January 1016, ~~2025~~2026, ~~109~~111,~~695~~195,876 shares of common stock are issued and outstanding.

Rivulet Entertainment, Inc.

Form 10-Q

For the Quarter ended ~~March~~September 3130, 2025

		Page	~~Page~~
PART I. FINANCIAL INFORMATION		1	1
ITEM 1.	Condensed Consolidated Financial Statements (unaudited)	1	1
	Condensed Consolidated Balance Sheets as of March 31, 2025 (unaudited) and June 30, 2024		1
	Condensed Consolidated Balance Sheets as of September 30, 2025 (unaudited) and June 30, 2025	1
	Condensed Consolidated Statements of Operations (unaudited) for the Three and Nine Months Ended March 31, 2025 and 2024		2
	Condensed Consolidated Statements of Operations (unaudited) for the Three Months Ended September 30, 2025 and 2024	2
	Condensed Consolidated Statements of Changes in Shareholders’ Deficit (unaudited) for the Three and Nine Months Ended March 31, 2025 and 2024		3
	Condensed Consolidated Statements of Changes in Shareholders’ Deficit (unaudited) for the Three Months Ended September 30, 2025 and 2024	3
	Condensed Consolidated Statements of Cash Flows (unaudited) for the Nine Months Ended March 31, 2025 and 2024		4
	Condensed Consolidated Statements of Cash Flows (unaudited) for the Three Months Ended September 30, 2025 and 2024	4
	Notes to Unaudited Condensed Consolidated Financial Statements	5	5
ITEM 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	16	16
ITEM 3.	Quantitative and Qualitative Disclosures about Market Risk	19	21
ITEM 4.	Controls and Procedures	19	21
PART II. OTHER INFORMATION		20	22
ITEM 1.	Legal Proceedings	20	22
ITEM 1A.	Risk Factors	20	22
ITEM 2.	Unregistered Sales of Equity Securities and Use of Proceeds	20	22
ITEM 3.	Defaults Upon Senior Securities	20	22
ITEM 4.	Mine Safety Disclosures	20	22
ITEM 5.	Other Information	20	22
ITEM 6.	Exhibits	20	23
SIGNATURES		21	24

PART I. FINANCIAL INFORMATION

Item 1. Condensed Consolidated Financial Statements (unaudited)

Rivulet Entertainment, Inc.

Condensed Consolidated Balance Sheets

	March 31,			June 30,
	As of			As of
	2025			2024(2)
	September 30, 2025			June 30, 2025
	(unaudited)
	(Unaudited)
ASSETS
CURRENT ASSETS
Cash	$	~~100~~41,~~633~~724		$	~~101~~128,~~721~~089
Accounts receivable, net		~~2,000,000~~-			-1,999,979
Prepaid expenses		~~191~~72,~~578~~290			4724,~~044~~983
Other current assets		~~555~~721,~~504~~349			-778,530
Total current assets	$	2835,~~847,715~~363		$	~~148~~2,~~765~~931,581
NONCURRENT ASSETS
Film costs	$	1315,~~849~~656,~~675~~160		$	1015,~~024~~013,~~760~~594
Deposits		2846,~~026,952~~892			~~854~~866,~~390~~440
Equity investment		21,000,000			21,000,000
Total noncurrent assets	$	17,~~876~~503,~~627~~052		$	1216,~~879~~880,~~150~~034
Total assets	$	2018,~~724~~338,~~342~~415		$	1319,~~027~~811,~~915~~615
LIABILITIES AND SHAREHOLDERS’ DEFICIT
CURRENT LIABILITIES
Accounts payable	$	~~259~~761,~~190~~806		$	~~205~~738,~~249~~222
Accrued expenses		32,~~390~~473,~~150~~298			~~712~~1,~~229~~979,924
Related party loans, current		2,880,000			-2,880,000
Notes payable, current		1516,~~457~~190,~~509~~674			417,~~890~~214,~~000~~742
Other current liabilities		3,500,000			~~154~~3,~~689~~500,000
Total current liabilities	$	25,~~486~~805,~~849~~778		$	526,~~962~~312,~~167~~888
NONCURRENT LIABILITIES
Total liabilities	$	25,805,778		$	26,312,888
Related party loans, non-current		-			10,768,316
Notes payable, non-current		-			1,330,000
Total noncurrent liabilities	$	-		$	12,098,316
Total liabilities	$	25,486,849		$	18,060,483
Commitments and contingencies (Note 2)		-			-
SHAREHOLDERS’ DEFICIT
Common stock, par value of $0.001; 547,500,000 shares authorized; 109,695,876 and 96,722,950 issued and outstanding as of March 31, 2025 and June 30, 2024, respectively(1)	$	109,696		$	96,723
Common stock, par value of $0.001; 547,500,000 shares authorized; 109,695,876 issued and outstanding as of September 30, 2025 and June 30, 2025	$	109,696		$	109,696
Additional paid-in capital		4,341,499			~~(96~~4,~~723~~341,499	)
Accumulated deficit		(911,~~213~~918,~~702~~558	)		(510,~~032~~952,~~568~~468	)
Total shareholders’ deficit	$	(47,~~762~~467,~~507~~363	)	$	(56,~~032~~501,~~568~~273	)
Total liabilities & shareholders’ deficit	$	2018,~~724~~338,~~342~~415		$	1319,~~027~~811,~~915~~615

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

(1)	Common stock outstanding has been determined in accordance with the exchange ratio established as part of the reverse merger that was completed during July of 2024 (refer to Note 8)
(2)	Financial information for the comparative period reflects the combination of certain former Rivulet Media, Inc. entities under common control that were transferred as part of the reverse merger transaction

1Rivulet Entertainment, Inc.

~~Rivulet Entertainment,~~Condensed ~~Inc.~~Consolidated Statements of Operations

~~Condensed Consolidated Statements of Operations~~(Unaudited)

(Unaudited)

	2025			2024
	For the Three Months Ended September 30,
	2025			2024
Operating Expense
General and administrative	$	657,779		$	496,578
Total operating expenses	$	657,779		$	496,578

Net loss before other income (expense)	$	(657,779	)	$	(496,578	)

Other income (expense)
Other income (expense)	$	129		$	127
Interest expense		(308,440	)		(106,913	)
Other income (expense)	$	(308,311	)	$	(106,786	)

Net loss before income taxes	$	(966,090	)	$	(603,364	)
Income tax expense		-			-
Net loss	$	(966,090	)	$	(603,364	)

Basic and diluted loss per share	$	(0.01	)	$	(0.01	)

Basic and diluted weighted average shares outstanding⁽¹⁾		109,695,876			108,719,419

	2025			2024(2)			2025			2024(2)
	For the Three Months Ended March 31,						For the Nine Months Ended March 31,
	2025			2024(2)			2025			2024(2)
Revenues	$	-		$	-		$	10,000,000		$	-
Production cost amortization		-			-			10,468,247			-
Gross margin	$	-		$	-		$	(468,247	)	$	-
											.
Operating Expense
General and administrative	$	326,385		$	9,246		$	3,074,162		$	120,402
Total operating expenses	$	326,385		$	9,246		$	3,074,162		$	120,402
Net loss from operations	$	(326,385	)	$	(9,246	)	$	(3,542,409	)	$	(120,402	)
Other (expense) income
Other income	$	136		$	-		$	2,112		$	-
Interest expense		(228,290	)		-			(640,837	)		-
Other expense	$	(228,154	)	$	-		$	(638,725	)	$	-
Net loss before income taxes	$	(554,539	)	$	(9,246	)	$	(4,181,134	)	$	(120,402	)
Income tax expense		-			-			-			-
Net loss	$	(554,539	)	$	(9,246	)	$	(4,181,134	)	$	(120,402	)
Basic and diluted loss per share	$	(0.01	)	$	(0.00	)	$	(0.04	)	$	(0.00	)
Basic and diluted weighted average shares outstanding(1)		109,695,876			96,722,950			109,365,656			96,722,950

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

~~The accompanying~~(1) ~~notes~~Basic ~~are~~and andiluted ~~integral~~share information for the comparative period has been determined using the exchange ratio established as part of ~~these~~the ~~condensed~~reverse ~~consolidated~~merger ~~financial~~that ~~statements.~~was completed during July of 2024 (refer to Note 8)

(1)	Basic and diluted share information has been determined using the exchange ratio established as part of the reverse merger that was completed during July of 2024 (refer to Note 8)
(2)	Financial information for the comparative period reflects the combination of certain former Rivulet Media, inc. entities under common control that were transferred as part of the reverse merger transaction

2Rivulet Entertainment, Inc.

~~Rivulet~~Condensed Consolidated Statements of Changes ~~Entertainment,~~in ~~Inc.~~Shareholders’ Deficit

~~Condensed Consolidated~~For ~~Statements~~the ofThree ~~Changes~~Months inEnded ~~Shareholders’~~September ~~Deficit~~30, 2025 and 2024

~~For the Three and Nine Months Ended March 31, 2025 and 2024~~(Unaudited)

(Unaudited)

	Shares		Amount⁽¹⁾		Paid-in Capital			Deficit			Total
	Common Stock⁽¹⁾				Additional			Accumulated
	Shares		Amount		Paid-in Capital			Deficit			Total
Balance, June 30, 2024		96,722,950	$	96,723	$	(96,723	)	$	(5,032,568	)	$	(5,032,568	)
Recapitalization		12,972,926		12,973		(3,639,743	)		-			(3,626,770	)
Related party debt forgiveness		-		-		8,077,965			-			8,077,965
Net loss		-		-		-			(603,364	)		(603,364	)
Balance, September 30, 2024		109,695,876	$	109,696	$	4,341,499		$	(5,635,932	)	$	(1,184,737	)

Balance, June 30, 2025		109,695,876	$	109,696	$	4,341,499		$	(10,952,468	)	$	(6,501,273	)
Balance		109,695,876	$	109,696	$	4,341,499		$	(10,952,468	)	$	(6,501,273	)
Net loss		-		-		-			(966,090	)		(966,090	)
Balance, September 30, 2025		109,695,876	$	109,696	$	4,341,499		$	(11,918,558	)	$	(7,467,363	)
Balance		109,695,876	$	109,696	$	4,341,499		$	(11,918,558	)	$	(7,467,363	)

	Shares		Amount(1)(2)		Capital(2)			Deficit(2)			Total(2)
	Common Stock(1)				Additional			Accumulated
	Shares		Amount(2)		Paid-in Capital(2)			Deficit(2)			Total(2)
Balance, June 30, 2023		96,722,950	$	96,723	$	(96,723	)	$	(4,851,079	)	$	(4,851,079	)
Net loss		-		-		-			(95,004	)		(95,004	)
Balance, September 30, 2023		96,722,950	$	96,723	$	(96,723	)	$	(4,946,083	)	$	(4,946,083	)
Net loss		-		-		-			(16,152	)		(16,152	)
Balance, December 31, 2023		96,722,950	$	96,723	$	(96,723	)	$	(4,962,235	)	$	(4,962,235	)
Net loss		-		-		-			(9,246	)		(9,246	)
Balance, March 31, 2024		96,722,950	$	96,723	$	(96,723	)	$	(4,971,481	)	$	(4,971,481	)
Balance, June 30, 2024		96,722,950	$	96,723	$	(96,723	)	$	(5,032,568	)	$	(5,032,568	)
Recapitalization		12,972,926		12,973		(3,639,743	)		-			(3,626,770	)
Related Party Debt Forgiveness		-		-		8,077,965			-			8,077,965
Net loss		-		-		-			(603,364	)		(603,364	)
Balance, September 30, 2024		109,695,876	$	109,696	$	4,341,499		$	(5,635,932	)	$	(1,184,737	)
Net loss		-		-		-			(3,023,231	)		(3,023,231	)
Balance, December 31, 2024		109,695,876	$	109,696	$	4,341,499		$	(8,659,163	)	$	(4,207,968	)
Balance		109,695,876	$	109,696	$	4,341,499		$	(8,659,163	)	$	(4,207,968	)
Net loss		-		-		-			(554,539	)		(554,539	)
Balance, March 31, 2025		109,695,876	$	109,696	$	4,341,499		$	(9,213,702	)	$	(4,762,507	)
Balance		109,695,876	$	109,696	$	4,341,499		$	(9,213,702	)	$	(4,762,507	)

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

~~The accompanying~~(1) ~~notes~~Common ~~are~~stock anoutstanding ~~integral~~for the comparative period has been determined in accordance with the exchange ratio established as part of ~~these~~the ~~condensed~~reverse ~~consolidated~~merger ~~financial~~that ~~statements.~~was completed during July of 2024 (refer to Note 8)

(1)	Common stock outstanding has been determined in accordance with the exchange ratio established as part of the reverse merger that was completed during July of 2024 (refer to Note 8)
(2)	Financial information for the comparative period reflects the combination of certain former Rivulet Media, inc. entities under common control that were transferred as part of the reverse merger transaction

3Rivulet Entertainment, Inc.

~~Rivulet Entertainment,~~Condensed ~~Inc.~~Consolidated Statements of Cash Flows

~~Condensed Consolidated Statements of Cash Flows~~(Unaudited)

(Unaudited)

	2025			2024
	For the Three Months Ended September 30,
	2025			2024
Cash flows from operating activities:
Net loss	$	(966,090	)	$	(603,364	)
Change in operating assets and liabilities:
Accounts receivable		1,999,979			-
Prepaid expenses		(47,307	)		(174,529	)
Other current assets		57,181			(125,903	)
Film costs		(642,566	)		(515,121	)
Deposits		19,548			94,224
Accounts payable		23,584			69,404
Accrued expenses		493,374			383,363
Other current liabilities		-			(91,810	)
Net cash flows provided by (used in) operating activities		937,703			(963,736	)

Cash flows from financing activities:
Proceeds from notes payable		984,208			941,064
Payments on note payable		(2,008,276	)		-
Net cash flows (used in) provided by financing activities:		(1,024,068	)		941,064

Net change in cash		(86,365	)		(22,672	)
Cash, beginning of period		128,089			101,721
Cash, end of period	$	41,724		$	79,049

Supplemental disclosure of cash flow information:
Cash paid for interest	$	-		$	-

Supplemental disclosure of non-cash activity:
Debt forgiveness related to reverse merger transaction (Note 8)	$	-		$	8,077,965
Recapitalization	$	-		$	(3,626,770	)

	2024			2023(1)
	For the Nine Months Ended March 31,
	2025			2024(1)
Cash flows from operating activities:
Net loss	$	(4,181,134	)	$	(120,402	)
Adjustments to reconcile net loss to net cash used in operating activities:
Amortization of film costs		10,468,247			-
Change in operating assets and liabilities:
Accounts receivable		(2,000,000	)		150,018
Prepaid expenses		(144,534	)		(26,757	)
Other current assets		(555,504	)		-
Film costs		(14,293,162	)		(8,691,674	)
Deposits		(1,172,562	)		(737,950	)
Accounts payable		53,941			(26,016	)
Accrued expenses		2,663,500			379,590
Other current liabilities		(91,810	)		3,422,945
Net cash flows used in operating activities		(9,253,018	)		(5,650,246	)
Cash flows from investing activities:
Net cash flows provided by (used in) investing activities:		-			-
Cash flows from financing activities:
Proceeds from notes payable		19,287,501			11,469,197
Payments on notes payable		(10,035,571	)		(5,821,159	)
Net cash flows provided by financing activities:		9,251,930			5,648,038
Net change in cash		(1,088	)		(2,208	)
Cash, beginning of period		101,721			2,683
Cash, end of period	$	100,633		$	475
Supplemental disclosure of cash flow information:
Cash paid for interest	$	590,265		$	-
Income taxes paid	$	-		$	-
Supplemental disclosure of non-cash activity:
Debt forgiveness related to reverse merger transaction (Note 8)	$	8,077,965		$	-
Recapitalization	$	(3,626,770	)	$	-

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

~~The accompanying notes are an integral part of these condensed consolidated financial statements.~~4

~~(1) Financial information for the comparative period reflects the combination of certain former~~ Rivulet ~~Media~~Entertainment, ~~inc~~Inc. ~~entities under common control that were transferred as part of the reverse merger transaction~~

4Notes to Unaudited Condensed Consolidated Financial Statements

~~Rivulet Entertainment~~For The Three Months Ended September 30, ~~Inc.~~2025

~~Notes to~~NOTE ~~Unaudited~~1 ~~Condensed~~– ~~Consolidated~~NATURE ~~Financial~~OF ~~Statements~~THE ORGANIZATION AND BUSINESS

~~For~~On July 7, 2024 (the “Closing Date”), Rivulet Entertainment, Inc. (“The ~~Three~~Company” or “Rivulet”) completed its acquisition of certain wholly owned subsidiaries of Rivulet Media, Inc. In consideration for the acquisition of the entities, the Company agreed to transfer approximately $10 million and 97 million shares ~~Nine~~to ~~Months~~the ~~Ended~~current ~~March~~owners 31of Rivulet Media, Inc. On May 19, 2025 the agreement was amended to reduce the cash portion of the purchase price from $10,000,000 to $6,450,000. Furthermore, the conditions subject to closing and the default provisions were eliminated. As of the date of this filing, the Company has transferred $2,950,000 to the former owners of Rivulet Media, Inc. and had an outstanding balance of $3,500,000, which was classified as other current liabilities on the Company’s condensed consolidated balance sheets as of September 30, 2025 and June 30, 2025. The transaction was accounted for as a reverse merger whereby the combined entities of Rivulet Media, Inc. were determined to be the accounting acquirer/legal acquiree and Rivulet Entertainment, Inc. was determined to be the accounting acquiree/legal acquirer.

~~NOTE~~The Company produces, distributes and markets 1feature-length –films, ~~NATURE~~television OFseries ~~THE~~and ~~ORGANIZATION~~mini-series, ~~AND~~and ~~BUSINESS~~television movies, from initial creative development through principal photography, postproduction, distribution and ancillary sales.

~~On July~~The 7,business ~~2024~~strategy ~~(the~~of ~~“Closing Date”),~~ Rivulet Entertainment, Inc. ~~(“The~~as ~~Company”~~it orrelates ~~“Rivulet”) completed~~to ~~its~~films, ~~acquisition~~television ofseries, ~~certain~~mini-series, ~~wholly~~and ~~owned~~television ~~subsidiaries~~movies ofis ~~Rivulet~~to ~~Media,~~enter ~~Inc.~~into Incontracts ~~consideration~~with ~~for~~well-known ~~the~~actors ~~acquisition of the~~and ~~entities~~actresses, ~~the~~acquire ~~Company~~scripts ~~agreed~~able to ~~transfer~~attract ~~approximately~~large ~~$10 million~~audiences ~~and~~that ~~97 million~~have ~~shares~~been tooverlooked ~~the~~by ~~current~~blockbuster ~~owners~~producers, offocus ~~Rivulet~~on ~~Media~~cost control measures, obtain ~~Inc~~favorable tax credits and financing opportunities. OnUnlike ~~May~~many 19smaller producers, ~~2025~~Rivulet ~~the~~is ~~agreement~~not ~~was~~targeting ~~amended~~“artsy” niche markets but films that appeal to ~~reduce~~a ~~the~~wide ~~cash~~audience. ~~portion~~The ~~of the~~Company’s ~~purchase~~business ~~price~~plan ~~from~~as ~~$10,000,000~~ an independent film producer is to ~~$6,450,000.~~fully ~~Furthermore,~~leverage ~~the~~all ~~conditions~~of ~~subject~~its toguaranteed ~~closing~~contracts ~~and~~that ~~the~~it ~~default~~negotiates ~~provisions~~upfront ~~were~~for ~~eliminated.~~a Asfilm ofto ~~the~~be ~~date~~produced. ofThis ~~this~~strategy ~~filing,~~permits the Company ~~has~~to ~~transferred $2,950,000~~raise toless ~~the~~equity ~~former~~capital ~~owners~~and ofobtain ~~Rivulet~~short-term ~~Media,~~bridge ~~Inc.~~loans ~~and~~thereby ~~had~~permitting anmuch ~~outstanding~~larger ~~balance~~budgets ofthan ~~$3,500,000, which~~historically ~~was~~could ~~classified~~be asobtained ~~other~~by ~~current~~independent film ~~liabilities~~producers. Management onbelieves this strategy enables the Company’s ~~condensed~~to ~~consolidated~~produce ~~Balance~~films ~~Sheets~~with asbudgets of ~~March~~up ~~31,~~to ~~2025. The~~$50 ~~transaction~~million ~~was~~although historically ~~accounted~~the ~~for~~Company ashas aspent ~~reverse~~less ~~merger~~than ~~whereby~~$15 ~~the~~million ~~combined~~on ~~entities~~each of ~~Rivulet~~its ~~Media,~~films ~~Inc~~to date. ~~were~~This ~~determined~~strategy toalso bepermits the ~~accounting~~ ~~acquirer/legal~~Company ~~acquiree~~to ~~and~~forego the ~~Rivulet~~risks ~~Entertainment,~~associated ~~Inc.~~with ~~was~~a ~~determined~~speculative tomovie beventure ~~the~~which ~~accounting~~may ~~acquiree/legal~~or ~~acquirer.~~may ~~As such,~~not ~~the~~repay ~~historical~~its ~~financial~~funding ~~statements~~sources ~~presented~~by inpre-selling ~~the~~contracts ~~filing~~to ~~(for~~distributors such ~~the~~as ~~period~~Netflix ~~ended~~who ~~June~~are ~~30,~~looking ~~2024~~for ~~and~~content ~~for~~to ~~the~~reach ~~three~~its ~~and~~viewers. ~~nine months~~The ~~ended~~Company ~~March~~can ~~31,~~also ~~2024)~~determine ~~are~~whether ~~those~~to ofsell ~~the~~its ~~combined~~domestic ~~entities~~or ofinternational rights ~~Rivulet~~to ~~Media,~~another ~~Inc.~~production ~~that~~company ~~were~~if ~~transferred~~unanticipated ascash ~~part~~needs ofdevelop ~~the~~while ~~merger agreement~~in production.

The Company intends to grow and diversify its portfolio of content to capitalize on demand from emerging and traditional platforms throughout the world. The Company ~~produces~~will attempt to maintain a disciplined approach to acquisition, ~~distributes~~production, and ~~markets~~distribution ~~feature-length~~of ~~films,~~product ~~television~~by ~~series~~balancing ~~and~~its ~~mini-series~~financial risks against the probability of commercial success for each project. The Company pursues the same disciplined approach to investments in, and ~~television~~acquisition ~~movies~~of, ~~from~~libraries and ~~initial~~other assets complementary to the business. The Company believes that its strategic focus on content and creation of innovative content ~~creative~~distribution ~~development~~strategies ~~through~~will ~~principal~~enhance ~~photography~~its competitive position in the industry, ~~postproduction~~ensure optimal use of the Company’s capital, ~~distribution~~build diversified foundation for future growth, and ~~ancillary~~generate ~~sales~~significant long-term value for the Company’s shareholders.

~~The business~~NOTE ~~strategy~~2 of– ~~Rivulet~~SUMMARY ~~Entertainment,~~OF ~~Inc.~~SIGNIFICANT ~~as it relates to films, television series, mini-series, and television movies is to~~ACCOUNTING enter into contracts with well-known actors and actresses, acquire scripts able to attract large audiences that have been overlooked by blockbuster producers, focus on cost control measures, obtain favorable tax credits and financing opportunities. Unlike many smaller producers, Rivulet is not targeting “artsy” niche markets but films that appeal to a wide audience. The Company’s business plan as an independent film producer is to fully leverage all of its guaranteed contracts that it negotiates upfront for a film to be produced. This strategy permits the Company to raise less equity capital and obtain short-term bridge loans thereby permitting much larger budgets than historically could be obtained by independent film producers. Management believes this strategy enables the Company to produce films with budgets of up to $50 million although historically the Company has spent less than $15 million on each of its films to date. This strategy also permits the Company to forego the risks associated with a speculative movie venture which may or may not repay its funding sources by pre-selling contracts to distributors such as Netflix who are looking for content to reach its viewers. The Company can also determine whether to sell its domestic or international rights to another production company if unanticipated cash needs develop while in production.POLICIES

~~We intend~~Basis ~~to grow and diversify our portfolio~~ of content to capitalize on demand from emerging and traditional platforms throughout the world. We will attempt to maintain a disciplined approach to acquisition, production, and distribution of product by balancing our financial risks against the probability of commercial success for each project. We pursue the same disciplined approach to investments in, and acquisition of, libraries and other assets complementary to the Company’s business. We believe that our strategic focus on content and creation of innovative content distribution strategies will enhance our competitive position in the industry, ensure optimal use of the Company’s capital, build diversified foundation for future growth, and generate significant long-term value for the Company’s stockholders.Presentation

~~NOTE~~These accompanying condensed consolidated unaudited 2financial –statements ~~SUMMARY~~have OFbeen ~~SIGNIFICANT~~presented ~~ACCOUNTING~~in ~~POLICIES~~United States dollars (“$” or “USD”) and are prepared in accordance with United States generally accepted accounting principles (“US GAAP”) for interim financial information and with Article 8 of Regulation S-X. In addition, as a film production company, the Company also complies with the incremental guidance in Accounting Standards Codification (“ASC”) 926, Entertainment-Films.

~~Basis~~The unaudited condensed consolidated financial statements included herein are unaudited; however, they contain all normal recurring accruals and adjustments that, in the opinion of management, ~~Presentation~~are necessary to present fairly the Company’s financial position at September 30, 2025, the results of its operations for the three months ended September 30, 2025 and cash flows for the three months ended September 30, 2025. The results of operations for the three months ended September 30, 2025 are not necessarily indicative of the results to be expected for future quarters or the full year.

These accompanying condensed consolidated unaudited financial statements have been presented in United States dollars (“$” or “USD”) and are prepared in accordance with United States generally accepted accounting principles (“US GAAP”) for interim financial information and with Article 8 of Regulation S-X. In addition, as a film production company, the Company also complies with the incremental guidance in Accounting Standards Codification (“ASC”) 926, Entertainment-Films. All comparative period financial information reflects the condensed consolidated results of the former Rivulet Media, Inc. entities under common control that were transferred as part of the transaction.5

~~The unaudited~~In ~~condensed~~the ~~consolidated~~opinion ~~financial~~of ~~statements~~management, ~~included~~the ~~herein~~interim ~~are~~financial statements ~~unaudited;~~reflect ~~however, they contain~~ all normal recurring ~~accruals~~ ~~and~~ adjustments ~~that,~~necessary infor ~~the~~a ~~opinion~~fair statement of ~~management, are necessary to present fairly~~ the Company’s financial ~~position at~~condition ~~March~~and ~~31, 2025, the~~ operating results as of ~~its~~and ~~operations~~ for the ~~three~~periods ~~and~~presented. ~~nine~~Revenue, ~~months ended March 31~~expenses, ~~2025~~assets and ~~cash~~liabilities ~~flows~~can ~~for~~vary ~~the~~during ~~nine months~~each ~~ended~~quarter ~~March~~of ~~31,~~the ~~2025~~year. ~~The~~Therefore, the interim results ofand ~~operations~~trends ~~for~~in the ~~three~~interim ~~and~~financial ~~nine~~statements ~~months~~may ~~ended March 31, 2025 are~~ not ~~necessarily indicative~~be representative of ~~the~~those ~~results to be expected~~ for ~~future quarters or~~ the full year or any future period.

5These unaudited condensed consolidated financial statements do not include all required information under U.S. GAAP to be considered a complete set of financial statements and therefore should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the period ended June 30, 2025 filed with the Securities and Exchange Commission.

~~In the~~Principles ~~opinion~~ of management, the interim financial statements reflect all normal recurring adjustments necessary for a fair statement of the Company’s financial condition and operating results as of and for the periods presented. Revenue, expenses, assets and liabilities can vary during each quarter of the year. Therefore, the interim results and trends in the interim financial statements may not be representative of those for the full year or any future period.Consolidation

~~These~~The ~~unaudited~~Company ~~condensed~~evaluates ~~consolidated~~the ~~financial~~need ~~statements~~to doconsolidate other ~~not~~entities ~~include~~based ~~all~~on ~~required~~the ~~information~~guidance ~~under~~set ~~U.S.~~forth ~~GAAP to~~in beASC ~~considered~~810, aConsolidation ~~complete~~(“ASC ~~set~~810”). ofTo ~~financial~~that ~~statements~~extent, ~~and~~the ~~therefore~~Company ~~should~~will consolidate beentities ~~read~~ in ~~conjunction~~which ~~with~~it ~~the~~has ~~audited~~a ~~consolidated~~controlling financial ~~statements~~ ~~and~~interest ~~notes~~based ~~thereto~~on ~~included~~the guidance in the ~~Company’s~~ASC ~~Annual~~topic. ~~Report~~For ~~on Form 10-KT/A for~~ the ~~period~~periods ~~ended~~presented, ~~June~~Rivulet 30Entertainment, ~~2024~~Inc. ~~filed~~consolidated ~~with~~ included the ~~Securities~~following ~~and~~wholly ~~Exchange~~owned ~~Commission.~~subsidiaries:

The Company evaluates the need to consolidate other entities based on the guidance set forth in ASC 810, Consolidation (“ASC 810”). To that extent, the Company will consolidate entities in which it has a controlling financial interest based on the guidance in the ASC topic. As of March 31, 2025, Rivulet Entertainment, Inc. consolidated included the following wholly owned subsidiaries:

Entity Name	Year of Incorporation	Percentage Ownership
Nutcracker, LLC	2023	100%
Kicklight, LLC	2023	100%
Good News, LLC	2021	100%
Please Baby Please LLC	2020	100%
Mistress Movie, LLC	2020	100%
LAC2 Productions, LLC	2022	100%
Acolyte Productions, LLC	2022	100%
Storyland Productions, LLC	2021	100%
Da Vinci, LLC	2023	100%
Garden, LLC	2023	100%
Storyland Animation, LLC	2021	100%
Rivulet Media Ventures, LLC	2023	100%
The Dink Productions, LLC	2024	100%

~~SCHEDULE~~Going ~~OF WHOLLY OWNED SUBSIDIARIES~~Concern

Entity Name	Year of Incorporation		Percentage Ownership
Nutcracker, LLC		2023		100%
Kicklight, LLC		2023		100%
Good News, LLC		2021		100%
Please Baby Please LLC		2020		100%
Mistress Movie, LLC		2020		100%
LAC2 Productions, LLC		2022		100%
Acolyte Productions, LLC		2022		100%
Storyland Productions, LLC		2021		100%
Da Vinci, LLC		2023		100%
Garden, LLC		2023		100%
Storyland Animation, LLC		2021		100%
Rivulet Media Ventures, LLC		2023		100%
The Dink Productions, LLC		2024		100%

The Company had cash of $41,724 as of September 30, 2025, negative working capital of $25.0 million and accumulated deficit of $11.9 million. Further, during the three months ended September 30, 2025, the Company incurred a net loss of $1.0 million and cash flow provided by operations of $0.9 million for the interim period ended September 30, 2025. As such, the Company concluded that there is substantial doubt 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.

~~Going Concern~~Use of Estimates

The preparation of financial statements in conformity with U.S. GAAP requires the Company’s ~~had~~management ~~cash~~to make estimates and assumptions that affect the reported amounts of ~~$100,633~~assets asand liabilities and disclosure of ~~March~~contingent ~~31,~~assets ~~2025,~~and ~~negative~~liabilities ~~working~~at ~~capital~~the date of ~~$22.6~~the ~~million~~financial statements and ~~shareholders’~~the reported ~~deficit~~amounts of ~~$4.8 million.~~revenues ~~Further,~~and expenses during the ~~nine~~reporting ~~months~~period. ~~ended~~Making ~~March~~estimates ~~31,~~requires ~~2025,~~management ~~the~~to ~~Company~~exercise ~~incurred~~significant judgment. aIt ~~net~~is ~~loss~~at least reasonably possible that the estimate of ~~$4.2~~the ~~million~~effect ~~and~~of ~~cash~~a ~~flow~~condition, ~~used~~situation ~~in operations~~or set of ~~$9.3~~circumstances ~~million~~that existed ~~for~~at the ~~interim~~date ~~period~~of ~~ended~~the ~~March~~unaudited ~~31,~~condensed ~~2025.~~consolidated Asfinancial ~~such~~statements, ~~the~~which ~~Company~~management ~~concluded~~considered ~~that~~in ~~there~~formulating isits estimate, ~~substantial~~could ~~doubt its~~change ~~ability~~in the near term due to ~~continue~~one asor amore ~~going~~future ~~concern~~confirming events. The Company ~~hopes~~bases toits ~~mitigate~~estimates ~~the~~on ~~conditions~~historical experience orand ~~events~~on various assumptions that ~~raise~~are ~~substantial~~believed ~~doubt~~to ~~about its~~be ~~ability~~reasonable, tothe ~~continue~~results asof awhich ~~going~~form ~~concern~~the ~~through~~basis ~~its~~for ~~future~~the ~~sales~~amounts recorded ofin ~~movie~~the ~~rights~~unaudited ~~and~~condensed ~~future~~consolidated ~~capital~~financial ~~raises~~statements.

~~Use of Estimates~~6

~~The preparation~~Cash ~~of financial statements in conformity with U.S. GAAP requires the Company’s management to make estimates~~ and ~~assumptions that~~Cash 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.Equivalents

6The Company considers all short-term investments with an original maturity of three months or less when purchased to be cash or cash equivalents.

~~Cash and~~Film ~~Cash Equivalents~~Costs

~~The~~In accordance with ASC 926, Entertainment-Films, the Company ~~considers~~reports production costs incurred as a separate asset on its unaudited condensed consolidated balance sheets (“Film costs”). Production costs include all ~~short-term~~direct ~~investments~~negative ~~with~~costs anincurred ~~original~~in ~~maturity~~the physical production of ~~three~~a ~~months~~film, orsuch as ~~less~~compensation ~~when~~of ~~purchased~~cast and rental facilities on location, as well as allocations of production overhead and capitalized interest (if any). Further, costs incurred related to besignificant ~~cash~~changes orto ~~cash~~a ~~equivalents~~film are added to production costs and subsequently charged to expense when the Company recognizes the related revenue.

Amortization of Film Costs

~~In accordance~~As ~~with~~the ~~ASC~~Company’s ~~926,~~films ~~Entertainment-Films~~are monetized on their own, the Company ~~reports~~amortizes ~~production~~film costs ~~incurred~~using asthe aindividual-film-forecast-computation ~~separate~~method. ~~asset~~Pursuant onto ~~its~~that ~~condensed~~method, unamortized ~~consolidated~~film ~~balance~~costs ~~sheets~~as ~~(“Film~~of ~~costs”).~~the ~~Production~~beginning ~~costs~~of ~~include~~the ~~all~~current ~~direct~~fiscal ~~negative~~year ~~costs~~are ~~incurred~~multiplied inby the ~~physical~~individual-film-forecast-computation ~~production~~method fraction. To that extent, the Company will begin amortization of capitalized film costs when a film is released, ~~such~~and asit ~~compensation~~begins ofto ~~cast~~recognize revenue from that film. The Company will review and ~~rental~~revise ~~facilities~~its onestimate ~~location,~~of asultimate ~~well~~revenue as ~~allocations~~ of ~~production~~each ~~overhead~~reporting ~~and~~date ~~capitalized interest~~to ~~(if~~reflect ~~any)~~the most currently available information. ~~Further~~Changes to the estimate of ultimate revenue, ~~costs~~if ~~incurred~~any, ~~related~~are toaccounted ~~significant~~for ~~changes~~prospectively. toAmortization aof film ~~are~~costs is ~~added~~presented toas production ~~costs~~cost ~~and~~amortization ~~subsequently~~on ~~charged to~~the ~~expense~~face ~~when~~of the Company’s ~~recognizes~~unaudited condensed consolidated statements of operations. The Company did not recognize any production cost amortization during the ~~related~~three ~~revenue~~months ended September 30, 2025 or 2024.

~~Amortization~~ Impairment of ~~Film~~Capitalized Production Costs

~~As the~~The Company’s ~~films~~will ~~are~~test ~~monetized~~its onunamortized ~~their~~production costs ~~own,~~whenever ~~the~~events ~~Company~~or ~~amortizes~~changes ~~film~~in ~~costs~~circumstances ~~using~~indicate ~~the individual-film-forecast-computation method. Pursuant to~~ that ~~method,~~the ~~unamortized~~fair ~~film~~value ~~costs as~~ of ~~the~~a ~~beginning~~film ofmay ~~the~~be ~~current~~less ~~fiscal~~than ~~year~~its ~~are~~unamortized ~~multiplied~~costs. byIf the ~~individual-film-forecast-computation~~ ~~method~~Company ~~fraction.~~determines To that ~~extent,~~ the ~~Company~~fair ~~will~~value ~~begin amortization~~ of ~~capitalized~~a film ~~costs~~is ~~when~~less athan ~~film~~its isunamortized ~~released~~production costs, ~~and~~then itthe ~~begins to~~unamortized ~~recognize~~capitalized ~~revenue~~costs for ~~from~~the ~~that~~ film. ~~The Company~~ will ~~review~~be ~~and~~written ~~revise~~down ~~its~~by ~~estimate~~the ofamount ~~ultimate~~exceeding ~~revenue as of each reporting date to reflect~~ the ~~most~~film’s ~~currently~~fair ~~available information~~value. ~~Changes~~The tounit ~~the estimate~~ of ~~ultimate~~account ~~revenue,~~for ifimpairment ~~any,~~testing ~~are~~is ~~accounted for prospectively.~~the ~~Amortization~~individual of film ~~costs~~being isproduced ~~presented~~and asthe ~~production~~fair ~~cost~~value ~~amortization~~is ondetermined ~~the~~using ~~face~~a ofdiscounted ~~the~~cash ~~Company’s~~flow ~~condensed consolidated statements of operations~~technique.

~~During the~~Recognition ~~three and nine months ended March 31, 2025, the Company recognized approximately $0 and $10.5 million~~ of ~~production~~Revenue ~~cost~~from ~~amortization,~~Contracts ~~respectively, which is presented as production cost amortization in the Company’s condensed consolidated~~with ~~statements of operations. During the three and nine months ended March 31, 2024, the Company had no film cost amortization.~~Customers

~~Impairment~~The Company recognizes revenue from its contracts with customers in accordance with the core principle outlined in ASC 606, Revenue from Contracts with Customers. Specifically, “to depict the transfer of ~~Capitalized~~promised ~~Production~~goods ~~Costs~~or services to customers in an amount that reflects the consideration to which we expect to be entitled in exchange for those goods or services”. To that extent, the Company recognizes revenue in accordance with the ASC Topic by applying the following five steps:

~~The Company~~● ~~will~~Step ~~test~~1-Identify ~~its unamortized production costs whenever events or changes in circumstances indicate that~~ the ~~fair~~contract(s) ~~value~~with of a ~~film may~~customer be● ~~less~~Step ~~than~~2-Identify ~~its unamortized costs. If~~ the ~~Company~~performance ~~determines~~obligations ~~that~~in the ~~fair~~contract ~~value~~● ofStep a3-Determing ~~film~~the istransaction ~~less~~price ~~than~~● ~~its~~Step ~~unamortized~~4-Allocate ~~production costs, then~~ the ~~unamortized~~transaction ~~capitalized~~price ~~costs~~to ~~for~~ the ~~film~~performance ~~will~~obligations bein ~~written down by~~ the ~~amount~~contract ~~exceeding~~● ~~the~~Step ~~film’s~~5-Recognize ~~fair~~revenue ~~value. The~~when ~~unit~~(or ofas) ~~account for impairment testing is~~ the ~~individual~~Company ~~film~~satisfies ~~being produced and the fair value is determined using~~ a ~~discounted cash~~performance ~~flow technique.~~obligation

~~Recognition~~The Company’s contracts with its customers currently contain a single performance obligation comprised of ~~Revenue~~a ~~from~~license ~~Contracts~~to motion picture rights. In accordance with ~~Customers~~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 use the Company’s intellectual property as it exists at the point in time at which the license is granted. 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.

The Company recognizes revenue from its contracts with customers in accordance with the core principle outlined in ASC 606, Revenue from Contracts with Customers. Specifically, “to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which we expect to be entitled in exchange for those goods or services”. To that extent, the Company recognizes revenue in accordance with the ASC Topic by applying the following five steps:7

●In ~~Step~~determining ~~1-Identify~~ the ~~contract(~~transaction price, the Company’s) contracts with its customers do not include a ~~customer~~significant ●financing ~~Step~~component, 2non-~~Identify~~cash ~~the~~consideration ~~performance~~or consideration ~~obligations~~payable into the ~~contract~~customer. ●However, ~~Step~~the 3Company’s contracts typically will include sales-~~Determing~~based or usage-based royalties that are triggered by the ~~transaction~~attainment ~~price~~of ●certain ~~Step~~levels 4of box office receipts or video on demand (“VOD”) purchases. To that extent, in accordance with ASC 606-~~Allocate~~10-55, the ~~transaction~~Company ~~price~~will torecognize the ~~performance~~sales-based ~~obligations~~or inusage-based royalties only when the ~~contract~~later ●of ~~Step~~the 5following events occur-~~Recognize~~a) ~~revenue~~the ~~when~~subsequent (sale or asusage occurs or b) the performance obligation to which the sales-based or usage-based royalty has been satisfied. The Company ~~satisfies~~did anot ~~performance~~recognize ~~obligation~~any revenue during the three months ended September 30, 2025 or 2024.

~~The Company’s~~As ~~contracts~~it ~~with~~pertains ~~its~~to ~~customers~~incremental ~~currently~~costs ~~contain a single performance obligation comprised~~ of ~~a license to motion picture~~obtaining 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 use the Company’s intellectual property as it exists at the point in time at which the license is granted. As such~~contract, ~~revenue is recognized at a point in time upon~~ the Company’s ~~delivery of the license to the licensee. The Company~~ does not ~~currently~~incur ~~provide~~ any ~~form~~type of ~~extended~~sales ~~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~~commissions.

7Exploitation and Participation Costs

InThe Company accounts for advertising costs in ~~determining~~accordance with ASC 720-35, Other Expenses-Advertising Costs. All other direct costs incurred in connection with the ~~transaction~~distribution of ~~price~~a film are expensed as incurred. In addition, the Company’s ~~contracts~~will ~~with~~begin ~~its~~to ~~customers~~accrue do(expense) ~~not~~participation ~~include~~costs when i) a ~~significant~~film ~~financing~~is ~~component,~~released ~~non-cash~~and ~~consideration~~ii) orit ~~consideration~~begins ~~payable~~ to recognize revenue from the ~~customer~~film. ~~However,~~Participation ~~the~~costs ~~Company’s~~are ~~contracts~~accrued ~~typically~~(expensed) ~~will~~using ~~include~~the ~~sales~~individual-~~based~~film-forecast-computation ormethod. ~~usage-based~~The ~~royalties~~Company ~~that~~incurred ~~are~~participation ~~triggered~~costs byof ~~the~~$0 for ~~attainment~~three ofmonths ~~certain~~ended ~~levels~~September of30, ~~box~~2025 ~~office~~and ~~receipts~~2024. orAdditionally, ~~video~~the onCompany ~~demand~~had ~~(“VOD”)~~accrued participation cost expenses of $311,469 ~~purchases.~~as Toof ~~that~~September ~~extent~~30, in2025 ~~accordance~~and ~~with~~June ~~ASC~~30, ~~606-10-55~~2025, ~~the~~which ~~Company~~are ~~will~~presented ~~recognize~~in accrued expenses in the ~~sales-based~~unaudited orcondensed ~~usage-based~~consolidated ~~royalties~~balance ~~only~~sheets. ~~when~~The ~~the~~Company ~~later~~paid ofno participation costs during the ~~following~~three ~~events~~months ~~occur-a)~~ended ~~the~~September ~~subsequent~~30, ~~sale~~2025 orand ~~usage~~2024. ~~occurs~~The orremaining b)accrued ~~the~~participation ~~performance~~costs ~~obligation~~are expected to ~~which~~be ~~the~~paid ~~sales-based~~during orthe ~~usage-based~~upcoming ~~royalty~~operating ~~has been satisfied~~cycle.

~~As it~~Investments ~~pertains~~in toEquity ~~incremental costs of obtaining a contract, the Company does not incur any type of sales commissions.~~Securities

~~During the~~The ~~three~~Company ~~and nine~~accounts ~~months~~for ~~ended~~its ~~March~~investments ~~31,~~in ~~2025~~equity securities ~~the~~without ~~Company~~a ~~sold~~readily ~~film~~determinable ~~rights~~fair tovalue aat ~~customer~~cost minus impairment in ~~the~~accordance ~~amount~~with ofASC $0321, ~~and~~Investments-Equity ~~$10~~Securities.0 ~~million~~Further, ~~respectively.~~the ~~The~~ Company ~~concluded~~will ~~that~~continue ~~the~~to ~~sale~~recognize ~~represented~~its ~~the~~investments ~~transfer~~without of a ~~functional~~readily ~~license~~determinable tofair ~~the~~value ~~customer~~at ~~and~~cost ~~that it~~minus ~~had~~impairment ~~satisfied~~until the ~~all~~investment ofdoes ~~its~~not ~~performance~~qualify ~~obligations~~to ~~stemming~~be ~~from~~measured ~~the~~as ~~agreement during the period~~such. AsTo ~~such~~that extent, the ~~entire~~Company ~~$10.0 million~~will ~~fixed~~re-assess ~~sale~~at ~~price~~the ~~was~~end ~~recognized~~of aseach ~~revenue~~reporting ~~during~~period whether the ~~period.~~investment ~~The~~still ~~Company~~qualifies ~~does not expect~~ to ~~generate~~be ~~additional~~recognized ~~revenues from~~at ~~the~~cost ~~film~~minus impairment.

~~Exploitation~~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. If the qualitative assessment indicates that the investment is impaired and ~~Participation~~the ~~Costs~~fair value of the investment is less than its carrying value, then the investment will be written down to fair value. The Company did not recognize any impairments for the three months ended September 30, 2025 and 2024.

The Company accounts for advertising costs in accordance with ASC 720-35, Other Expenses-Advertising Costs. All other direct costs incurred in connection with the distribution of a film are expensed as incurred. In addition, the Company will begin to accrue (expense) participation costs when i) a film is released and ii) it begins to recognize revenue from the film. Participation costs are accrued (expensed) using the individual-film-forecast-computation method. The Company incurred participation costs of $1,995,058 and $100,000 for the nine months ended March 31, 2025 and 2024, respectively, which is included in General and ~~administrative~~Administrative expense on the condensed consolidated statements of operations. The Company incurred no participation costs for the three months ended March 31, 2025 and 2024, respectively. Further, the Company had accrued participation cost expenses of $1,595,058 as of March 31, 2025, which are presented in accrued expenses in the condensed consolidated balance sheets. During the three months ended March 31, 2025, the Company paid $400,000 of participation costs. The remaining accrued participation costs are expected to be paid during the upcoming operating cycle.Expenses

~~Investments~~The Company’s general and administrative inexpenses ~~Equity~~primarily ~~Securities~~consist of participation costs, personnel and related costs, including employee salaries, legal fees relating to corporate matters, accounting and audit related costs, insurance, corporate communications, information technology and related expenses.

~~The Company~~Income 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.Taxes

~~In addition~~The toCompany ~~assessing~~follows ~~whether~~ the ~~investments~~asset ~~still~~and ~~qualify~~liability tomethod of beaccounting ~~recognized~~for atincome ~~cost~~taxes ~~minus~~under ~~impairment~~ASC 740, ~~the~~“Income ~~Company~~Taxes.” ~~will~~Deferred ~~also~~tax ~~make~~assets aand ~~qualitative assessment~~liabilities atare recognized for the ~~end~~estimated offuture ~~each~~tax ~~reporting~~consequences ~~period~~attributable ~~considering impairment indicators~~ to ~~evaluate~~differences ~~whether~~between the ~~investment~~financial isstatement ~~impaired.~~carrying Ifamounts ~~the~~of existing assets ~~qualitative~~and ~~assessment~~liabilities ~~indicates~~and ~~that~~their ~~the~~respective ~~investment~~tax isbases. ~~impaired~~Deferred ~~and~~tax ~~the~~assets ~~fair~~and ~~value~~liabilities ofare ~~the~~measured ~~investment~~using isenacted ~~less~~tax ~~than~~rates ~~its~~expected ~~carrying~~to ~~value,~~apply ~~then~~to taxable income in the ~~investment~~years ~~will~~in bewhich ~~written~~those ~~down~~temporary differences are expected to ~~fair~~be ~~value~~recovered or settled. The ~~Company~~effect ~~did~~on ~~not~~deferred ~~recognize~~tax assets ~~any~~and ~~impairments~~liabilities ~~for~~of a change in tax rates is recognized in income in the ~~three~~period ~~and~~that ~~nine~~included ~~months~~the ~~ended~~enactment date. Valuation allowances ~~March~~are 31established, ~~2025~~when ~~and~~necessary, ~~2024~~to reduce deferred tax assets to the amount expected to be realized.

~~General and Administrative Expenses~~8

~~The Company’s~~ASC ~~general~~740 prescribes a recognition threshold and a ~~administrative~~measurement ~~expenses~~attribute ~~primarily~~for ~~consist~~the financial statement recognition and measurement of ~~participation~~tax ~~costs,~~positions ~~personnel~~taken ~~and~~or ~~related~~expected ~~costs,~~to ~~including~~be taken in a tax ~~employee~~return. ~~salaries~~For those benefits to be recognized, ~~legal~~a ~~fees~~tax ~~relating~~position must be more likely than not to ~~corporate~~be ~~matters,~~sustained ~~accounting~~upon ~~and~~examination ~~audit~~by ~~related~~taxing ~~costs,~~authorities. The ~~insurance,~~Company ~~corporate~~is ~~communications~~currently not aware of any issues under review that could result in significant payments, accruals or material deviation ~~information~~from ~~technology~~its ~~and~~position. ~~related~~The ~~expenses~~Company is subject to income tax examinations by major taxing authorities since inception.

8Net Loss Per Share

~~Income~~Net loss per share is computed by dividing net loss by the weighted average number of common shares outstanding during ~~Taxes~~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.

~~The Company~~Concentration ~~follows the asset and liability method~~ of ~~accounting~~Credit for income taxes under ASC 740, “Income Taxes.” Deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that included the enactment date. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amount expected to be realized.Risk

~~ASC 740~~Financial ~~prescribes~~instruments athat ~~recognition~~potentially ~~threshold and a measurement attribute for~~ subject the ~~financial~~Company ~~statement~~to ~~recognition~~concentrations ~~and measurement~~ of ~~tax~~credit ~~positions taken~~risk orconsist ~~expected~~of toa becash ~~taken~~account in a ~~tax~~financial ~~return.~~institution, ~~For~~which, ~~those~~at ~~benefits to be recognized~~times, amay ~~tax~~exceed ~~position~~the ~~must~~Federal Depository beInsurance ~~more~~Coverage ~~likely~~of ~~than~~$250,000. ~~not~~As toof ~~be sustained~~September ~~upon~~30, ~~examination~~2025, bythe ~~taxing authorities. The~~ Company ishas ~~currently~~ not ~~aware~~experienced oflosses ~~any~~on ~~issues~~this ~~under~~account ~~review~~and ~~that could result in~~management ~~significant~~believes ~~payments,~~the ~~accruals or material deviation from its position. The~~ Company is ~~subject~~not exposed to ~~income~~significant ~~tax~~risks ~~examinations~~on bysuch ~~major taxing authorities since inception~~account.

~~Concentration of~~Accounts ~~Credit Risk~~Receivable

~~Financial instruments~~Accounts ~~that~~receivable, ~~potentially~~net ~~subject~~of the ~~Company~~allowance tofor doubtful ~~concentrations~~accounts, ofrepresent ~~credit~~their ~~risk~~estimated ~~consist~~net ofrealizable ~~a cash account in a financial institution~~value, which, atapproximates ~~times,~~fair ~~may~~value. ~~exceed~~Provisions ~~the~~for ~~Federal~~doubtful ~~Depository~~accounts ~~Insurance~~are recorded ~~Coverage~~based ofon ~~$250,000.~~historical Ascollection ~~of March 31~~experience, ~~2025,~~current ~~the~~conditions ~~Company~~and ~~has~~reasonable ~~not experienced losses on this account~~ and ~~management~~supportable ~~believes~~forecasts. ~~the~~Receivables ~~Company~~are iswritten off ~~not~~when ~~exposed~~they toare ~~significant~~deemed ~~risks on such account~~uncollectible.

~~In addition,~~Fair ~~the~~Value Company’s entire accounts receivable balance as of March 31, 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 are any collectability issues with the outstanding balance.Measurements

~~Accounts~~Fair value is defined as the price that would ~~Receivable~~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:

~~Accounts receivable~~● Level 1, ~~net~~defined ofas ~~the~~observable ~~allowance~~inputs such as quoted prices (unadjusted) for ~~doubtful~~identical ~~accounts,~~instruments ~~represent~~in ~~their~~active ~~estimated~~markets; ~~net~~● ~~realizable~~Level ~~value~~2, ~~which~~defined ~~approximates~~as ~~fair~~inputs ~~value. Provisions~~other ~~for~~than ~~doubtful~~quoted ~~accounts~~prices in active markets that are ~~recorded~~either ~~based~~directly onor ~~historical~~indirectly ~~collection~~observable ~~experience,~~such ~~current~~as ~~conditions~~quoted ~~and~~prices ~~reasonable~~for ~~and~~similar ~~supportable forecasts.~~instruments ~~Receivables~~in ~~are~~active ~~written~~markets ~~off~~or ~~when~~quoted ~~they~~prices ~~are~~for ~~deemed~~identical ~~uncollectible.~~or Assimilar ofinstruments ~~March~~in ~~31,~~markets ~~2025~~that are not active; and ~~June~~● ~~30,~~Level ~~2024~~3, ~~the~~defined ~~Company~~as ~~had~~unobservable ~~an accounts~~inputs ~~receivable~~in ~~balance~~which oflittle ~~$2.0 million~~or ~~and~~no $0market data exists, ~~respectively.~~ ~~All~~therefore ~~amounts~~requiring ~~were~~an ~~deemed~~entity ~~collectable~~to asdevelop ofits ~~March~~own 31assumptions, ~~2025~~such as valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable.

~~Fair~~The reporting amount of cash represents fair value ~~Value~~due ~~Measurements~~to its liquid nature. Further, the stated amounts of related and non-related notes payable also represent fair value as the borrowings are issued at prevailing market rates. As of September 30, 2025 and June 30, 2025, the Company did not have any assets measured at fair value on a recurring basis.

~~Fair value~~Related isParty 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:Disclosures

●The ~~Level~~Company 1,discloses ~~defined~~all asrelated ~~observable~~party transactions ~~inputs~~in ~~such~~accordance aswith ~~quoted~~the ~~prices~~guidance ~~(unadjusted) for identical instruments~~ in ~~active~~ASC ~~markets; ● Level 2~~850, ~~defined~~Related asParty ~~inputs~~Disclosures. ~~other~~To ~~than~~that ~~quoted~~extent, ~~prices~~amounts inof ~~active~~related ~~markets~~party transactions ~~that~~ are ~~either~~stated ~~directly~~on orthe ~~indirectly~~face ~~observable~~of ~~such~~the asunaudited ~~quoted~~condensed ~~prices~~consolidated ~~for~~balance ~~similar~~sheets, ~~instruments~~unaudited incondensed ~~active~~consolidated statements ~~markets~~of oroperations ~~quoted prices for identical or similar instruments in markets that are not active;~~ and ●unaudited ~~Level~~condensed 3,consolidated ~~defined~~statements asof ~~unobservable~~cash ~~inputs~~flows ~~in which little or no market data exists, therefore requiring an entity to develop its own assumptions, such~~ (as ~~valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable~~applicable).

~~The reporting~~Segment amount of cash represents fair value due to its liquid nature. Further, the stated amounts of related and non-related notes payable also represent fair value as the borrowings are issued at prevailing market rates. As of March 31, 2025 and June 30, 2024, the Company did not have any assets measured at fair value on a recurring basis that would require disclosure based on the fair value hierarchy outlined in ASC 820.Reporting

9The Company currently operates in a single operating segment. Operating segments are reported in a manner consistent with the internal reporting provided to the Company’s chief operating decision maker (“the CODM”). The Company’s CODM, which is its Chief Executive Officer, views the Company’s operations and manages its business as a single operating segment, which is currently movie film production. The CODM primarily evaluates cash flow from operations and overall liquidity to determine its ability to deliver its picture films.

~~Related Party Disclosures~~9

~~The Company~~Commitments discloses all related party transactions in accordance with the guidance in ASC 850, Related Party Disclosures. To that extent, amounts of related party transactions are stated on the face of the condensed consolidated balance sheets, condensed consolidated statements of operations and ~~condensed consolidated statements of cash flows (as applicable).~~Contingencies

~~Segment~~The Company accounts for contingencies in ~~Reporting~~accordance with ASC 450-20, Contingencies. Certain conditions may exist as of the date the unaudited condensed consolidated financial statements are issued, which may result in a loss to the Company, but which will only be resolved when one or more future events occur or fail to occur. The Company assesses such contingent liabilities, and such assessment inherently involves an exercise of judgment. In assessing loss contingencies related to legal proceedings that are pending against the Company or un-asserted claims that may result in such proceedings, the Company evaluates the perceived merits of any legal proceedings or un-asserted claims as well as the perceived merits of the amount of relief sought or expected to be sought therein.

~~The Company~~If ~~currently~~the ~~operates~~assessment inof a ~~single~~contingency ~~operating~~indicates that ~~segment.~~it ~~Operating~~is ~~segments~~probable ~~are~~that ~~reported~~a inmaterial aloss ~~manner~~has ~~consistent~~been ~~with~~incurred and the ~~internal~~amount ~~reporting~~of the liability can be estimated, then the estimated ~~provided~~liability towould be accrued in the Company’s ~~chief~~unaudited ~~operating~~condensed ~~decision~~consolidated ~~maker~~financial (“statements. If the ~~CODM”).~~assessment ~~The~~indicates that ~~Company’s~~a ~~CODM~~potentially material loss contingency is not probable but is reasonably possible, ~~which~~or is ~~its~~probable ~~Chief Executive~~but ~~Officer~~cannot be estimated, then ~~views~~the nature of the ~~Company’s~~contingent ~~operations~~liability, and ~~manages~~an ~~its~~estimate ~~business~~of asthe arange ~~single~~of ~~operating~~possible ~~segment~~losses, ~~which~~if isdeterminable ~~currently~~and ~~movie film~~material, ~~production~~would be disclosed. The ~~CODM~~Company ~~primarily~~is ~~evaluates~~not ~~cash~~currently ~~flow~~involved ~~from~~in ~~operations~~any ~~and~~legal ~~overall~~proceedings ~~liquidity~~that tocould ~~determine~~require ~~its~~either ~~ability~~accrual toor ~~deliver its picture films~~disclosure.

~~Commitments~~In addition to the stated interest rates on the ~~and~~loans, ~~Contingencies~~certain of our notes payable include a net profit participation feature whereby the lender may receive an additional return based on the performance of the film underwritten by the loan. Certain of these loans are collateralized by interests in film rights the Company owns.

~~The Company~~Recent ~~accounts~~Accounting for contingencies in accordance with ASC 450-20, Contingencies. Certain conditions may exist as of the date the condensed consolidated financial statements are issued, which may result in a loss to the Company, but which will only be resolved when one or more future events occur or fail to occur. The Company assesses such contingent liabilities, and such assessment inherently involves an exercise of judgment. In assessing loss contingencies related to legal proceedings that are pending against the Company or un-asserted claims that may result in such proceedings, the Company evaluates the perceived merits of any legal proceedings or un-asserted claims as well as the perceived merits of the amount of relief sought or expected to be sought therein.Pronouncements

~~If the~~In ~~assessment~~December of2023, athe ~~contingency~~FASB ~~indicates~~issued ~~that~~ASU 2023-09-Income itTaxes is(Topic ~~probable~~740)-Improvements ~~that~~to aIncome ~~material~~Tax ~~loss~~Disclosures, ~~has~~which ~~been~~requires ~~incurred~~entities ~~and~~to ~~the~~provide ~~amount of the liability~~additional ~~can~~information bein ~~estimated, then~~ the ~~estimated~~rate ~~liability~~reconciliation ~~would~~and beadditional ~~accrued~~disclosures inabout ~~the~~income ~~Company’s~~taxes ~~condensed consolidated financial statements~~paid. ~~If the~~The ~~assessment~~guidance ~~indicates~~should ~~that~~be aapplied prospectively ~~potentially~~and ~~material~~is ~~loss~~effective ~~contingency~~for isannual ~~not~~periods ~~probable~~beginning ~~but~~after isDecember ~~reasonably possible~~15, or2024 isfor ~~probable~~public ~~but cannot~~business beentities. ~~estimated,~~This ~~then~~guidance ~~the~~is applicable ~~nature~~for ofsmaller ~~the~~reporting ~~contingent~~companies ~~liability,~~effective ~~and~~for anannual ~~estimate~~periods ofbeginning ~~the~~after ~~range~~December ~~of possible losses~~15, ~~if determinable and material, would be disclosed~~2025. The Company isdoes not expect ~~currently~~the ~~involved~~issued instandard ~~any~~will ~~legal~~have ~~proceedings~~a ~~that~~material ~~could~~impact ~~require~~on ~~either~~its ~~accrual~~consolidated orfinancial ~~disclosure~~statements.

In ~~addition~~ toNovember 2024, the ~~stated~~FASB ~~interest~~issued ~~rates~~ASU on2024-03, Income ~~the~~Statement-Reporting ~~loans,~~Comprehensive ~~certain~~Income-Expense ofDisaggregation ~~our~~Disclosures ~~notes~~(Subtopic ~~payable~~220-40). ~~include~~The aamendments ~~net~~in ~~profit~~this ~~participation~~update require ~~feature~~disclosure, ~~whereby~~in the ~~lender~~ ~~may~~notes ~~receive~~to ancondensed ~~additional~~consolidated ~~return~~financial ~~based~~statements, onof ~~the~~specified ~~performance~~information ofabout ~~the~~certain ~~film~~costs ~~underwritten~~and byexpenses ~~the~~at ~~loan.~~each ~~Certain~~interim and ofannual ~~these~~reporting ~~loans~~period. The amendments are ~~collateralized~~effective for annual periods beginning after December 15, 2026, and reporting periods bybeginning ~~interests~~after inDecember ~~film~~15, ~~rights~~2027, ~~the~~with early adoption permitted. The Company ~~owns~~is currently evaluating the impact that the new ASU will have on its consolidated financial statements.

During June of 2025, the Company received an OSHA complaint which was made against one of the Company’s wholly owned subsidiaries (i.e. “The Nutcracker”). The Company does not believe that there is any merit to the claim. Further, an estimate of the possible loss cannot be made at this time.10

~~Recent Accounting~~NOTE ~~Pronouncements~~3 – FILM COSTS COMPONENTS

~~In November~~Components 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2023-07, Segment Reporting - Improvements to Reportable Segment Disclosures (“ASU 2023-07”), which requires incremental disclosures related to a public entity’s reportable segments. Required disclosures include, on an annual and interim basis, significant segment expenses that are regularly provided to the CODM and included within each reported measure of ~~segment~~production ~~profit~~costs ~~or loss, an amount~~ for ~~other~~films ~~segment items (which is the difference between segment revenue less segment expenses and less segment profit or loss) and a~~predominantly ~~description~~monetized of its composition, the title and position of the CODM, and an explanation of how the CODM uses the reported measure(s) of segment profit or loss in assessing segment performance and deciding how to allocate resources. The standard also permits disclosure of more than one measure of segment profit. ASU 2023-07 is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. The adoption of ASU 2023-07 did not have a material impact on ~~the~~their ~~Company’s condensed~~own ~~consolidated~~were ~~financial~~as ~~statements.~~follows:

	September 30, 2025		June 30, 2025
	As of
	September 30, 2025		June 30, 2025
Completed and not released	$	14,783,168	$	-
In production		-		14,215,580
Preproduction		872,992		798,014
Total	$	15,656,160	$	15,013,594

~~In November~~NOTE ~~2024,~~4 ~~the~~– FASB issued ASU 2024-03, Income Statement-Reporting Comprehensive Income-Expense Disaggregation Disclosures (Subtopic 220-40). The amendments in this update require disclosure, in the notes to combined financial statements, of specified information about certain costs and expenses at each interim and annual reporting period. The amendments are effective for annual periods beginning after December 15, 2026, and reporting periods beginning after December 15, 2027, with early adoption permitted. The Company is currently evaluating the impact that the new ASU will have on its consolidated financial statements.DEPOSITS

~~NOTE~~As of September 30, 2025 and June 30, 2025, 3the –Company ~~FILM~~held ~~COSTS~~deposits ~~COMPONENTS~~of $846,892 and $866,440, respectively, with various film unions, in accordance with the requirements of collective bargaining agreements. These deposits are classified as non-current assets on the unaudited condensed consolidated balance sheets. The deposits are intended to secure the Company’s obligations for union-related benefits, including health and retirement contributions for eligible union members.

~~Components~~The deposits are refundable upon fulfillment of the Company’s obligations under the terms of the agreements or upon termination of ~~production~~the ~~costs~~agreements. ~~for~~As ~~films~~of ~~predominantly~~September ~~monetized~~30, 2025 and June 30, 2025, the Company is in compliance with all applicable union requirements, and no deposits are subject to forfeiture. The Company monitors its compliance with these agreements on ~~their~~an ~~own~~ongoing ~~were~~basis asto ~~follows:~~ensure all obligations are met.

~~SCHEDULE~~NOTE OF5 ~~COMPONENTS~~– OFINVESTMENT ~~PRODUCTION~~IN ~~COSTS~~EQUITY ~~FOR FILMS~~ SECURITIES

	March 31, 2025		June 30, 2024
	As of
	March 31, 2025		June 30, 2024
Released	$	-	$	-
Completed and not released		-		-
In production		13,051,661		9,356,746
Preproduction		798,014		668,014
Total	$	13,849,675	$	10,024,760

During June of 2023 the Company made a $2,000,000 equity investment in Casa Azul Spirits, LLC, a tequila Company incorporated in Delaware, which gave the Company a 5% ownership stake. As the Company neither controls nor has significant influence over the investee, the investment is recognized in accordance with ASC 321, Equity Securities. Further, as the equity investment does not have a readily determinable fair value and does not qualify for the practical expedient to estimate fair value (outlined in ASC 820-10), the Company recognizes its investments in Casa Azul at cost minus impairment.

~~NOTE~~The carrying amount of the investment in Casa 4Azul –was ~~DEPOSITS~~$1,000,000 as of September 30, 2025 and June 30, 2025. During the fiscal year ended June 30, 2025, the Company recognized a $1.0 million impairment on its original $2.0 million investment, resulting in a carrying value of $1.0 million as of June 30, 2025. The Company considered the price per share disclosed in subscription agreements issued by Casa Azul in determining the carrying amount of the investment as of September 30, 2025 and June 30, 2025.

As of March 31, 2025 and June 30, 2024, the Company held deposits of $2,026,952 and $854,390, respectively, with various film unions, in accordance with the requirements of collective bargaining agreements. These deposits are classified as non-current assets on the condensed consolidated balance sheets. The deposits are intended to secure the Company’s obligations for union-related benefits, including health and retirement contributions for eligible union members. The deposits are refundable upon fulfillment of the Company’s obligations under the terms of the agreements or upon termination of the agreements. As of March 31, 2025 and June 30, 2024, the Company is in compliance with all applicable union requirements, and no deposits are subject to forfeiture. The Company monitors its compliance with these agreements on an ongoing basis to ensure all obligations are met.11

NOTE 5 6 – ~~INVESTMENT~~NOTES INPAYABLE ~~EQUITY~~AND ~~SECURITIES~~RELATED PARTY LOANS

~~During June~~The ~~of 2023 the~~ Company ~~made~~enters ainto ~~$2,000,000~~loan ~~equity~~agreements ~~investment~~with inboth related ~~Casa~~and ~~Azul~~non-related ~~Spirits,~~parties ~~LLC, a tequila Company incorporated~~ in ~~Delaware,~~order ~~which gave~~to ~~the~~fund ~~Company~~their aongoing 5%film ~~ownership~~production ~~stake~~activities. AsTo that extent, the Company ~~neither~~had ~~controls nor has significant influence over~~ the ~~investee, it recognizes its~~following outstanding ~~investment~~debt inas ~~accordance~~of ~~with~~September ~~ASC 321~~30, ~~Equity~~2025 ~~Securities. Further, as the equity investment does not have a readily determinable fair value~~ and ~~does~~June ~~not qualify for the practical expedient to estimate fair value (outlined in ASC 820-10)~~30, ~~the Company recognizes its investments in Casa Azul at cost minus impairment.~~2025:

	September 30, 2025			June 30, 2025
	As of
	September 30, 2025			June 30, 2025
Current notes payable; Issued December 2023-January 2024; 15% stated interest rate; Due April 1, 2024 - in default	$	190,000		$	190,000
Current notes payable; Issued July 2024-September 2024; 10% stated interest rate; Due March 28, 2025 - in default		13,493			13,493.00
Current loan payable; Issued October 2024; 6.5% average interest rate; Due February 16, 2026; net of deferred financing costs		3,479,849			3,417,593
Current notes payable; Issued September 2024; 20% stated interest rates; Due upon the earlier of a sale of a film or closing of a senior debt facility - in default		150,000			150,000
Current notes payable; Issued June 2023-May 2024; 15% stated interest rate; Due February 1, 2026		1,255,000			1,255,000
Current notes payable; Issued October 2024-December 2024; 10% stated interest rate; Due January 25, 2026		8,352,332			9,708,656
Any and all sums due shall be due on or before August 24, 2025 or extended as stated - in default		300,000			300,000
Any and all sums due shall be due on July 4, 2025 or extended as stated - in default		225,000			225,000
Current notes payable; Issued July 2024-September 2025; 10%-20% stated interest rates; Due upon the earlier of a sale of a film or closing of a senior debt facility		1,230,000			1,080,000
Current notes payable; Issued July 2025; 10%-20% stated interest rates; Due August 9, 2025 - in default		120,000			-
Current notes payable; Issued July 2024-September 2024; 15% stated interest rate; Due upon sale of film		125,000			125,000
Tax credit assignment loans; Issued January of 2024; Participation in future tax receivable; No stated interest rate or due date		750,000			750,000
Related party notes payable to a beneficial owner; Issued October-November of 2023; 15% stated interest rate; Due February 1, 2026 (refer to Note 8)		2,880,000			2,880,000
Total notes payable		19,070,674			20,094,742
Less current maturities		(19,070,674	)		(20,094,742	)
Total notes payable, non-current portion	$	-		$	-

~~NOTE~~As of September 30, 2025, approximately 6$998,000 of –notes ~~NOTES~~were ~~PAYABLE~~in ~~AND~~default ~~RELATED~~as ~~PARTY~~a ~~LOANS~~result of provisions in the respective note agreements related to various maturity dates or requiring payment upon sale of a film, which has yet to be fulfilled by the Company. As of the date of the filing, approximately $998,000 were still in default and bore an interest rate of 10% to 20%.

~~The~~During the three months ended September 30, 2025, the Company ~~enters~~entered into ~~loan~~certain note agreements ~~with~~totaling ~~both~~approximately ~~related~~$1.0 ~~and~~million. ~~non-related~~These ~~parties~~notes inbear ~~order~~interest toat ~~fund~~rates ~~their~~of ~~ongoing~~10% ~~film~~to ~~production activities.~~20%, Toand ~~that~~mature ~~extent,~~dependent ~~the~~upon ~~Company~~factors ~~had~~related ~~the~~to ~~following~~future ~~outstanding~~film ~~debt~~sales asor ofthe ~~March~~closing ~~31,~~of ~~2025~~a ~~and~~senior ~~June~~debt ~~30, 2024:~~facility.

~~SCHEDULE~~During OFthe ~~NOTES~~three ~~PAYABLE~~months ~~AND~~ended ~~RELATED~~September ~~PARTY~~30, ~~LOAN~~2025, the Company repaid approximately $2.0 million of notes payable.

	March 31, 2025			June 30, 2024
Current notes payable; Issued December 2023-January 2024; 15% stated interest rate; Due April 1, 2024 - in default	$	190,000		$	4,140,000
Current notes payable; Issued July 2024-September 2024; 10% stated interest rate; Due March 28, 2025 - in default		13,493			-
Current loan payable; Issued October 2024; 6.5% average interest rate; Due October 2025; net of deferred financing costs		3,485,539			-
Current notes payable; Issued September 2024; 20% stated interest rates; Due upon the earlier of a sale of a film or closing of a senior debt facility - in default		150,000			-
Current notes payable; Issued June 2023-May 2024; 15% stated interest rate; Due February 1, 2026		1,255,000			1,330,000
Current notes payable; Issued October 2024-December 2024; 10% stated interest rate; Due January 25, 2026		8,483,477			-
Current notes payable; Issued July 2024-March 2025; 10%-20% stated interest rates; Due upon the earlier of a sale of a film or closing of a senior debt facility		1,005,000			-
Current notes payable; Issued July 2024-September 2024; 15% stated interest rate; Due upon sale of film		125,000			-
Tax credit assignment loans; Issued January of 2024; Participation in future tax receivable; No stated interest rate or due date		750,000			750,000
Related party notes payable to a beneficial owner; Issued October-November of 2023; 15% stated interest rate; Due February 1, 2026 (refer to Note 8)		2,880,000			2,880,000
Related party notes payable to parent company; Issued at various dates; no stated interest rate or due date (refer to Note 8)		-			7,888,316
Total notes payable		18,337,509			16,988,316
Less current maturities		(18,337,509	)		(4,890,000	)
Total notes payable, non-current portion	$	-		$	12,098,316

In addition to the stated interest rates on the loans, certain loans include a net profit participation feature whereby the lender may receive an additional return based on the performance of the film underwritten by the loan. Certain of these loans are collateralized by interests in film rights the Company owns. Additionally, certain of these notes are guaranteed by an individual who is a related party. To that extent, none of the participation features were triggered as of September 30, 2025. In addition, certain tax credit assignment loans totaling $750,000 were entered into during fiscal year 2024 whereby the lenders agreed to be paid (on a dollar per dollar basis) from the proceeds of a refundable tax credit related to the production of the Nutcracker film. While the tax credit was not received as of September 30, 2025, the Company expects to receive the credit in the near future and has therefore classified the tax assignment loans as current. In order to receive this tax credit, the Company must have an audit performed on the required financial information, which is currently in-process.

As of March 31, 2025, certain notes totaling $1,690,000, were in technical default as a result of non-payment. However, per the terms of the notes, the default interest rate of 25% cannot be triggered unless a default notice is received from the lender(s). Additionally, approximately $353,000 of notes were in default as a result of provisions in the respective note agreements requiring payment upon sale of a film, which has yet to be fulfilled by the Company. As of the date of the filing, $353,000 were still in default and bore an interest rate of 20% to 25%.12

~~During the~~NOTE ~~nine~~7 ~~months~~– ~~ended~~RELATED ~~March~~PARTY 31, 2025, the Company entered into certain note agreements totaling $1.0 million. These notes bear interest at rates of 10% to 20%, and mature dependent upon factors related to future film sales or the closing of a senior debt facility.TRANSACTIONS

~~On October~~Rivulet 16Media, ~~2024 the Company entered into a one-year 1 credit facility with total availability of $3~~Inc.~~5 million. The full amount of $3.5 million has been drawn as of the date of these condensed consolidated financial statements with an approximate interest rate of 6.5%.~~

12As part of the merger transaction, the transferred entities had $7,888,316 of intercompany loans with Rivulet Media, Inc. as of June 30, 2024. The intercompany loans did not include a stated interest rate or due date. Further, as a result of the transaction, the loans were forgiven by Rivulet Media, Inc. as of the merger consummation date. Upon settlement of the transaction an additional $189,649 of liabilities were forgiven, resulting in total liability forgiveness of $8,077,965. The debt forgiveness was recognized as an increase to additional paid in capital.

~~During the~~Beneficial ~~nine months ended March 31, 2025, the Company issued notes payable totaling $0.4 million bearing an interest rate of 20%, due upon the earlier of a sale of a film or closing of a senior debt facility.~~Owner

During the ~~nine~~year ~~months~~ ended ~~March~~June 3130, ~~2025~~2024, the Company entered ~~issued~~into ~~approximately~~a $~~16.0~~2,880,000 ~~million~~note payable agreement with a certain beneficial owner of Rivulet Media, Inc. The notes ~~payable~~are ~~bearing~~due anon February 1, 2026 and have a stated interest rate of 1015%. The balance of the loan was $2,880,000 as of September 30, 2025 and June 30, 2025.

During the nine months ended March 31, 2025, the Company entered into certain note agreements totaling $61,064. These notes bear interest at a rate of 10%, and mature at dates through March 28, 2025. During the nine months ended March 31, 2025, the Company repaid $47,571 of these notes. The remaining balance of $13,493 is in default as of March 31, 2025.Advances

During the ~~nine~~year ~~months~~ ended ~~March~~June 3130, 2025, the Company ~~paid~~advanced ~~notes~~funds ~~payable~~to ofa ~~approximately~~producer at Rivulet Entertainment, Inc. in the amount of $10307,000 which is included in other current assets on the condensed consolidated balance sheets.0 ~~million~~The advance bears no interest and has no stated maturity date, which is not necessarily indicative of terms a third-party would contractually enter into. The outstanding balance of the advance was $307,000 as of September 30, 2025 and June 30, 2025.

~~In addition~~NOTE to8 ~~the~~– ~~stated~~REVERSE interest rates on the loans, certain loans include a net profit participation feature whereby the lender may receive an additional return based on the performance of the film underwritten by the loan. Certain of these loans are collateralized by interests in film rights the Company owns. Additionally, certain of these notes are guaranteed by an individual who is a related party. To that extent, none of the participation features were triggered as of March 31, 2025. In addition, certain tax credit assignment loans totaling $750,000 were entered into during fiscal year 2024 whereby the lenders agreed to be paid (on a dollar per dollar basis) from the proceeds of a refundable tax credit related to the production of the Nutcracker film. While the tax credit was not received as of March 31, 2025, the Company expects to receive the credit in the near future and has therefore classified the tax assignment loans as current. In order to receive this tax credit, the Company must have an audit performed on the required financial information, which is currently in-process.MERGER

~~The Company~~During ~~had~~July ~~approximately~~of ~~$7.9~~2024, ~~million~~certain incombined ~~related~~entities of ~~party~~Rivulet ~~debt~~Media, toInc. ~~its~~entered ~~former~~into ~~parent~~a ~~company~~reverse asmerger ofwith ~~June~~Rivulet 30Entertainment, ~~2024~~Inc. ~~However,~~In in accordance with ~~the~~ASC ~~merger~~805, ~~agreement~~Business ~~all~~Combinations, it ~~of the debt~~ was ~~forgiven~~determined asthat of the ~~merger~~combined ~~consummation~~entities ~~date.~~should ~~The~~be ~~debt~~considered ~~forgiveness~~the ~~was~~accounting ~~recognized~~acquirer asand ~~an increase~~Rivulet toEntertainment, ~~additional paid in capital~~Inc. ~~Upon~~should ~~settlement~~be of considered the ~~transaction~~accounting ~~an additional $0~~acquiree.~~2 million of liabilities were forgiven, resulting in total liability forgiveness of $8.1 million.~~

~~NOTE~~In determining the number of shares outstanding 7as –of ~~RELATED~~the ~~PARTY~~merger ~~TRANSACTIONS~~completion date, the Company utilized the guidance in ASC 805-40, Reverse Acquisitions. Specifically, while the combined entities (that were transferred as part of the transaction) did not have any shares outstanding as of the merger date, the Company established an exchange ratio based on the number of shares issued by Rivulet Entertainment, Inc. to effectuate the merger divided by the number of shares outstanding of Rivulet Media, Inc. consolidated immediately prior to the merger as follows:

~~Rivulet Media,~~ SCHEDULE ~~Inc.~~OF MERGER

As part of the merger transaction, the transferred entities had $7,888,316 of intercompany loans with Rivulet Media, Inc. as of June 30, 2024. The intercompany loans did not include a stated interest rate or due date. Further, as a result of the transaction, the loans were forgiven by Rivulet Media, Inc. as of the merger consummation date. Upon settlement of the transaction an additional $189,649 of liabilities were forgiven, resulting in total liability forgiveness of $8,077,965. The debt forgiveness was recognized as an increase to additional paid in capital.


Number of shares issued to effectuate the merger	A	96,722,950
Rivulet Media inc. consolidated shares outstanding-pre merger	B	144,045,171
Exchange ratio	A/B	0.67

~~Beneficial~~Further, for the recapitalization shares issued ~~Owner~~amount, the Company determined the implicit number of shares that Rivulet Media, Inc. would have had to issue in order to provide Rivulet Entertainment, Inc. with an approximate 12% interest in the combined company and multiplied that amount times the established exchange ratio as follows:

During the year ended June 30, 2024, the Company entered into a $2,880,000 note payable agreement with a certain beneficial owner of Rivulet Media, Inc. The notes are due on February 1, 2026 and have a stated interest rate of 15%. The balance of the loan was $2,880,000 as of March 31, 2025 and June 30, 2024.


Gross implicit shares issued by Rivulet Media, inc.	A	19,320,000
Exchange ratio	B	0.67
Net implicit shares issued	A*B	12,972,926

~~Advances~~13

~~During the~~NOTE ~~nine~~9 ~~months~~– ~~ended~~SHAREHOLDERS’ March 31, 2025, the Company advanced funds to a person of Management at Rivulet Entertainment, Inc. in the amount of $249,139 which is included in other current assets on the condensed consolidated balance sheets. The advance bears no interest and has no stated maturity date.EQUITY

~~NOTE~~As of September 30, 2025 the Company was authorized 8to –issue ~~REVERSE~~multiple ~~MERGER~~series of preferred stock, as outlined below. There were no preferred shares issued or outstanding as of September 30, 2025.

~~During July~~Series ofA ~~2024,~~Preferred ~~certain~~Stock: ~~combined entities of Rivulet Media~~(10, ~~Inc. entered into a reverse merger with Rivulet Entertainment~~000,000 ~~Inc. In accordance~~shares ~~with~~authorized; ~~ASC 805, Business Combinations, it was determined that the combined entities should be considered the accounting acquirer and Rivulet Entertainment, Inc~~$0.001 ~~should~~par ~~be considered the accounting acquiree.~~value):

13The Series A Preferred stock had the following rights and privileges:

~~In determining~~● ~~the~~Are ~~number~~without ofvoting ~~shares~~powers ~~outstanding~~on asany ofmatter presented to the ~~merger~~common ~~completion~~stockholders ~~date,~~of the Company ~~utilized~~for their action or consideration. Series A stockholders are entitled to vote on matters relating to modifications, adjustments, waivers, or other changes or matters relating to Series A stock. Each Series A stock share shall have one (1) vote on matters relating to Series A stock. ● May be subject to redemption at such time or times and at such prices determined by the ~~guidance~~Board inof ~~ASC~~Directors; ~~805~~● Are entitled to receive dividends (which may be cumulative or non-40cumulative) at 10% per annum payable in preference to, ~~Reverse Acquisitions.~~or ~~Specifically~~in such relation to, ~~while~~the dividends payable on any other class or classes or series of stock; ● May have rights upon the ~~combined~~dissolution ~~entities~~of, ~~(that~~or ~~were~~upon ~~transferred~~any asdistribution ~~part~~of the assets of, the ~~transaction)~~Corporation; ~~did~~● Are not ~~have~~convertible; ~~any~~● ~~shares outstanding~~May asbe entitled to the benefit of conditions and restrictions upon the ~~merger~~creation ~~date~~of indebtedness of the Corporation or any subsidiary, upon the ~~Company~~issue ~~established~~of anany ~~exchange~~additional ~~ratio~~shares ~~based~~(including onadditional shares of such series or of any other series) and upon the ~~number~~payment of ~~shares~~dividends ~~issued~~or bythe ~~Rivulet~~making ~~Entertainment, Inc.~~of toother ~~effectuate~~distributions on, and the ~~merger~~purchase, ~~divided~~redemption or other acquisition by the ~~number~~Corporation or any subsidiary of, ~~shares~~any outstanding shares of ~~Rivulet~~the ~~Media~~Corporation; and ● May have such other relative, ~~Inc.~~participating, ~~consolidated~~optional ~~immediately~~or ~~prior~~other tospecial ~~the merger~~rights, qualifications, limitations or restrictions thereof, in each case as ~~follows:~~shall be stated in said resolution or resolutions providing for the issue of such shares of Preferred Stock.

~~SCHEDULE~~Series OFB ~~MERGER~~Preferred Stock: (10,000,000 shares authorized; $0.001 par value):

Number of shares issued to effectuate the merger	A	96,722,950
Rivulet Media inc. consolidated shares outstanding-pre merger	B	144,045,171
Exchange ratio	A/B	0.67

The Series B Preferred stock had the following rights and privileges:

~~Further, for~~● ~~the~~Are ~~recapitalization~~entitled ~~shares~~to ~~issued~~vote ~~amount,~~on any matter presented to the common stockholders of the Company for their action or consideration. Each share of Series B Preferred shall have twenty-five (25) votes. Series B stockholders are also entitled to vote on matters relating to modifications, adjustments, waivers, or other changes or matters relating to Series B stock. Each Series B stock share shall have one (1) vote on matters relating to Series B stock. ● May be subject to redemption at such time or times and at such prices as determined by the ~~implicit~~Board ~~number~~of Directors; ● Are not entitled to receive dividends; ● May have such rights upon the dissolution of, ~~shares~~or ~~that~~upon ~~Rivulet~~any ~~Media~~distribution of the assets of, ~~Inc.~~the ~~would~~Corporation; ● Shall have ~~had~~ the right to ~~issue~~convert any or all of the Holders’ Series B stock into 25 fully paid and non-assessable shares of common stock for each share of Series B Preferred stock ● May be entitled to the benefit of a sinking fund to be applied to the purchase or redemption of shares of such series in ~~order~~such amount or amounts; ● May be entitled to ~~provide~~the ~~Rivulet~~benefit ~~Entertainment~~of conditions and restrictions upon the creation of indebtedness of the Corporation or any subsidiary, ~~Inc.~~upon ~~with~~the anissue ~~approximate~~of ~~12%~~any ~~interest~~additional inshares (including additional shares of such series or of any other series) and upon the ~~combined~~payment ~~company~~of dividends or the making of other distributions on, and ~~multiplied that~~the ~~amount~~purchase, ~~times~~redemption or other acquisition by the ~~established~~Corporation ~~exchange~~or ~~ratio~~any subsidiary of, any outstanding shares of the Corporation; and ● May have such other relative, participating, optional or other special rights, qualifications, limitations or restrictions thereof, in each case as ~~follows:~~shall be stated in said resolution or resolutions providing for the issue of such shares of Preferred Stock.

Gross implicit shares issued by Rivulet Media, inc.	A	19,320,000
Exchange ratio	B	0.67
Net implicit shares issued	A*B	12,972,926

~~NOTE~~Series C Preferred Stock: (2,500,000 shares 9authorized; –$0.001 ~~SHAREHOLDERS’~~par ~~EQUITY~~value; face value of $0.60 per share):

~~As of~~The ~~March~~Series ~~31,~~C ~~2025~~Preferred ~~the Company was authorized to issue multiple series of preferred~~ stock, ashad ~~outlined~~the ~~below. There were no preferred~~following ~~shares~~rights ~~issued~~and ~~or outstanding as of March 31, 2025.~~privileges:

● Shall be entitled to vote on any matter presented to the common stockholders of the Company for their action or consideration. Each share of Series A C Preferred ~~Stock:~~shall have one (1) vote. Series C stockholders are also entitled to vote on matters relating to modifications, adjustments, waivers, or other changes or matters relating to Series C stock. Each Series C stock share shall have one (1) vote on matters related to Series C stock. ● May be subject to redemption at such time or times and at such prices as determined by the Board of Directors; ● Are entitled to receive dividends of 10% per annum; ● May have such rights upon the dissolution of,~~000~~ or upon any distribution of the assets of,~~000~~ ~~shares~~the ~~authorized~~Corporation; $0● Shall have the right to convert any or all of the holders’ Series C stock into one (1) fully paid and non-assessable share of common stock for each share of Series C Preferred stock and Series C Preferred shares shall automatically convert on the one for one basis after five (5) years from the date of purchase.~~001~~ ~~par~~● ~~value~~May be entitled to the benefit of a sinking fund to be applied to the purchase or redemption of shares of such series in such amount or amounts; ● May be entitled to the benefit of conditions and restrictions upon the creation of indebtedness of the Corporation or any subsidiary, upon the issue of any additional shares (including additional shares of such series or of any other series): and upon the payment of dividends or the making of other distributions on, and the purchase, redemption or other acquisition by the Corporation or any subsidiary of, any outstanding shares of the Corporation; and ● May have such other relative, participating, optional or other special rights, qualifications, limitations or restrictions thereof, in each case as shall be stated in said resolution or resolutions providing for the issue of such shares of Preferred Stock.

~~The Series~~NOTE A10 ~~Preferred~~– ~~stock~~SUBSEQUENT ~~had the following rights and privileges:~~EVENTS

●In ~~Are~~accordance ~~without~~with ~~voting~~ASC ~~powers~~855, onSubsequent Events, ~~any matter presented to~~ the ~~common stockholders of the~~ Company ~~for~~has ~~their~~evaluated ~~action~~events or consideration. Series A stockholders are entitled to vote on matters relating to modifications, adjustments, waivers, or other changes or matters relating to Series A stock. Each Series A stock share shall have one (1) vote on matters relating to Series A stock. ● May be subject to redemption at such time or times and attransactions ~~such~~subsequent ~~prices determined by the Board of Directors; ● Are entitled~~ to ~~receive~~September ~~dividends (which may be cumulative or non-cumulative) at 10% per annum payable in preference to~~30, or2025 inthrough ~~such relation to,~~ the ~~dividends~~date ~~payable~~these onunaudited condensed ~~any~~consolidated ~~other~~financial ~~class~~statements orwere ~~classes~~issued. orOther ~~series~~than ~~of stock; ● May have rights upon~~ the ~~dissolution of~~below, orthere ~~upon~~are ~~any~~no ~~distribution~~subsequent ofevents ~~the~~identified ~~assets~~that ~~of,~~would require ~~the~~disclosure Corporation; ● Are not convertible; ● May be entitled to the benefit of conditions and restrictions upon the creation of indebtedness of the Corporation or any subsidiary, upon the issue of any additional shares (including additional shares of such series or of any other series) and upon the payment of dividends or the making of other distributions on, and the purchase, redemption or other acquisition by the Corporation or any subsidiary of, any outstanding shares of the Corporation; and ● May have such other relative, participating, optional or other special rights, qualifications, limitations or restrictions thereof, in ~~each~~these ~~case~~unaudited ascondensed ~~shall~~consolidated befinancial ~~stated in said resolution or resolutions providing for the issue of such shares of Preferred Stock~~statements.

~~Series B~~Debt ~~Preferred Stock: (10,000,000 shares authorized; $0.001 par value):~~Payments

~~The Series~~Payments Bon ~~Preferred~~various ~~stock~~notes ~~had~~payable ~~the~~of ~~following~~approximately $2.5 million ~~rights~~were ~~and~~repaid ~~privileges:~~subsequent to September 30, 2025.

●Debt Are entitled to vote on any matter presented to the common stockholders of the Company for their action or consideration. Each share of Series B Preferred shall have twenty-five (25) votes. Series B stockholders are also entitled to vote on matters relating to modifications, adjustments, waivers, or other changes or matters relating to Series B stock. Each Series B stock share shall have one (1) vote on matters relating to Series B stock.Issuance

14Subsequent to September 30, 2025, the Company issued approximately $0.7 million of notes payable bearing interest at rates of 10% to 15%, with a maturity date of February 16, 2026.

~~● May be subject to redemption at such time or times and at such prices as determined by the Board~~ License of ~~Directors;~~The ● Are not entitled to receive dividends; ● May have such rights upon the dissolution of, or upon any distribution of the assets of, the Corporation; ● Shall have the right to convert any or all of the Holders’ Series B stock into 25 fully paid and non-assessable shares of common stock for each share of Series B Preferred stock ● May be entitled to the benefit of a sinking fund to be applied to the purchase or redemption of shares of such series in such amount or amounts; ● May be entitled to the benefit of conditions and restrictions upon the creation of indebtedness of the Corporation or any subsidiary, upon the issue of any additional shares (including additional shares of such series or of any other series) and upon the payment of dividends or the making of other distributions on, and the purchase, redemption or other acquisition by the Corporation or any subsidiary of, any outstanding shares of the Corporation; and ● May have such other relative, participating, optional or other special rights, qualifications, limitations or restrictions thereof, in each case as shall be stated in said resolution or resolutions providing for the issue of such shares of Preferred Stock.Dink

~~Series~~On CNovember ~~Preferred~~20, ~~Stock:~~2025, a license and distribution agreement was agreed to between Apple Video Programming LLC and the Company for access rights to the feature film “The Dink” and all associated short from content (2i.e. trailers,~~500~~ deleted scenes,~~000~~ ~~shares~~etc.) ~~authorized;~~The $0license term is up to 15 years following the initial exploitation of the project.~~001~~ ~~par~~In ~~value;~~consideration ~~face~~of ~~value~~the license agreement, the Company is to receive a fixed payment of $012 million of which approximately $2.4 million has been received as of this date. The agreement is by reference incorporated herein and attached hereto as exhibit 10.4. The agreement will close upon delivery of the film to the counterparty, which is expected to occur in approximately 60 ~~per~~days ~~share):~~from the date of this filing.

~~The~~Issuance ~~Series~~of CCommon ~~Preferred stock had the following rights and privileges:~~Stock

●On November ~~Shall~~24, be2025, ~~entitled to vote on any matter presented to~~ the ~~common stockholders of the~~ Company ~~for~~issued ~~their action or consideration. Each share of Series C Preferred shall have one (~~1~~) vote. Series C stockholders are also entitled to vote on matters relating to modifications~~, ~~adjustments~~500,000 waivers, or other changes or matters relating to Series C stock. Each Series B stock share shall have one (1) vote on matters related to Series C stock. ● May be subject to redemption at such time or times and at such prices as determined by the Board of Directors; ● Are entitled to receive dividends of 10% per annum; ● May have such rights upon the dissolution of, or upon any distribution of the assets of, the Corporation; ● Shall have the right to convert any or all of the holders’ Series C stock into one (1) fully paid and non-assessable share of common stock for each share of Series C Preferred stock and Series C Preferred shares ~~shall automatically convert on the one~~ for one basis after five (5) years from the date of purchase. ● May be entitled to the benefit of a sinking fund to be applied to the purchase or redemption of shares of such series in such amount or amounts; ● May be entitled to the benefit of conditions and restrictions upon the creation of indebtedness of the Corporation or any subsidiary, upon the issue of any additional shares (including additional shares of such series or of any other series) and upon the payment of ~~dividends~~producer or the making of other distributions on, and the purchase, redemption or other acquisition by the Corporation or any subsidiary of, any outstanding shares of the Corporation; and ● May have such other relative, participating, optional or other special rights, qualifications, limitations or restrictions thereof, in each case as shall be stated in said resolution or resolutions providing for the issue of such shares of Preferred Stockfees.

~~NOTE 10 – SUBSEQUENT EVENTS~~15

~~In accordance~~Item ~~with~~2. ~~ASC~~Management’s ~~855,~~Discussion ~~Subsequent~~and ~~Events,~~Analysis ~~the~~of ~~Company~~Financial ~~has~~Condition ~~evaluated events~~ and ~~transactions~~Results ~~subsequent~~of to March 31, 2025 through the date these condensed consolidated financial statements were issued. Other than the below, there are no subsequent events identified that would require disclosure in these condensed consolidated financial statements.Operations

~~Film~~The following discussion and analysis should ~~Rights~~be ~~Sale~~read in conjunction with the financial statements and related notes included elsewhere in this Form 10-Q. To that extent, the information discussed below solely reflects the results of the combined entities that were transferred as part of the agreement with Rivulet Entertainment, Inc. This document contains certain forward-looking statements that involve risks and uncertainties, such as statements of the Company’s plans, objectives, expectations and intentions. When used in this document, the words “expects”, “anticipates”, “intends” and “plans” and similar expressions are intended to identify certain of these forward-looking statements. The cautionary statements made in this document should be read as being applicable to all related forward-looking statements wherever they appear in this document. Our actual results could differ materially from those discussed in this document.

~~Subsequent to~~Liquidity ~~March~~and ~~31,~~Capital ~~2025, the Company collected the remaining $2.0 million of accounts receivable related to film sale that occurred during the nine months ended March 31, 2025.~~Resources

~~Debt~~The Company had notes payable, which were used ~~Payments~~to fund our film production, totaling $19,970,674 as of September 30, 2025. Further, the Company still has a $3,500,000 outstanding balance to Rivulet Media, inc. stemming from the merger transaction.

~~Payments~~The Company will incur significant capital costs onas ~~various~~it ~~notes~~continues ~~payable~~to ofproduce ~~approximately~~feature $2length films.3 ~~million~~In ~~were~~order ~~repaid~~to ~~subsequent~~continue to ~~March~~produce 31films, ~~2025~~the Company will need to raise funds through additional borrowings until such time as our operating revenues from the sale of films are sufficient to meet our cost structure, and ultimately provide profitable operations. There is no assurance we will be successful in raising additional capital or achieving profitable operations.

~~Debt Issuance~~Going Concern

~~Subsequent~~The Company had cash of $41,724 as of toSeptember ~~March~~30, 312025, negative working capital of approximately $25.0 million and accumulated deficit of approximately $11.9 million. Further, during the three months ended September 30, 2025, the Company ~~issued~~incurred a net loss of approximately $21.70 million and cash flow provided by operations of ~~notes~~approximately ~~payable~~$0.9 ~~bearing~~million ~~interest~~for atthe ~~rates~~three ofmonths ~~10%~~ended September 30, 2025. As such, the Company concluded that there is substantial doubt about its ability to ~~15%~~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.

~~Litigation~~Cash Flows

~~During June~~The offollowing ~~2025,~~tables summarize the ~~Company~~results ~~received an OSHA complaint which was made against one~~ of ~~its wholly owned subsidiaries (i.e. “The Nutcracker”).~~ ~~The~~our ~~Company~~cash ~~does~~flows ~~not~~for ~~believe that there is any merit to~~ the ~~claim.~~below ~~Further,~~respective ~~an estimate of the possible loss cannot be made at this time.~~periods:

	For the Three Months Ended September,
	2025			2024
Net (loss) income	$	(966,090	)	$	(603,364	)
Net cash flows provided by (used in) operating activities		937,703			(963,736	)
Net cash flows provided by (used in) financing activities:		(1,024,068	)		941,064
Net change in cash		(86,365	)		(22,672	)
Cash, beginning of period		128,089			101,721
Cash, end of period	$	41,724		$	79,049

~~Item 2.~~Operating ~~Management’s Discussion and Analysis of Financial Condition and Results of Operations~~Activities

~~The following~~Net ~~discussion~~cash ~~and~~provided ~~analysis~~by ~~should~~operating beactivities ~~read~~was approximately in$0.9 ~~conjunction~~million ~~with~~for the ~~financial~~three ~~statements~~months ~~and~~ended ~~related~~September ~~notes~~30, ~~included elsewhere in this Form 10-Q~~2025. ToCash ~~that~~provided ~~extent,~~by ~~the~~operating ~~information~~activities ~~discussed~~resulted ~~below~~from ~~solely~~a ~~reflects~~net loss ~~the~~for ~~results of~~ the ~~combined~~three ~~entities~~months ~~that~~ended ~~were~~September ~~transferred as~~30, ~~part~~2025 of ~~the~~approximately ~~agreement with Rivulet Entertainment, Inc~~$1.0 ~~This~~million ~~document~~and ~~contains~~an ~~certain~~increase ~~forward-looking~~in ~~statements~~cash ~~that~~from ~~involve~~changes ~~risks~~in operating assets and ~~uncertainties,~~liabilities ~~such as statements~~ of ~~the~~approximately ~~Company’s~~$1.9 ~~plans~~million, ~~objectives,~~primarily ~~expectations~~due ~~and~~to ~~intentions.~~a ~~When~~decrease ~~used~~ in ~~this~~accounts ~~document, the~~receivable ~~words~~of ~~“expects”,~~approximately ~~“anticipates”~~$2.0 million, ~~“intends”~~an ~~and~~increase ~~“plans”~~film ~~and~~costs ~~similar expressions are intended to identify certain~~ of ~~these~~approximately ~~forward-looking statements~~$0.6 ~~The~~million ~~cautionary~~and ~~statements~~an ~~made~~increase in ~~this~~accrued ~~document~~expenses ~~should~~of beapproximately ~~read as being applicable to all related forward-looking statements wherever they appear in this document~~$0.5 ~~Our actual results could differ materially from those discussed in this document~~million.

~~Liquidity~~Net cash used in operating activities was $1.0 million for the three months ended September 30, 2024. Cash used in operating activities resulted from a net loss for the three months ended September 30, 2024 of $0.6 million and ~~Capital~~changes ~~Resources~~in operating assets and liabilities of $0.4 million.

~~The Company~~Investing had notes payable, which were used to fund our film production, totaling $18,337,509 as of March 31, 2025. Further, the Company still has a $3,500,000 outstanding balance to Rivulet Media, inc. stemming from the merger transaction.Activities

~~The Company~~There ~~will~~were ~~incur~~no ~~significant~~investing ~~capital~~activities ~~costs~~during ~~as it continues to produce feature length films, such as “The Dink”. In order to continue to produce films,~~ the ~~Company will need to raise funds through additional borrowings until such time as our operating revenues~~ ~~from~~three ~~the~~months ~~sale~~ended ofSeptember ~~films are sufficient to meet our cost structure~~30, ~~and~~2025 ~~ultimately provide profitable operations. There is no assurance we will be successful in raising additional capital~~ or ~~achieving profitable operations~~2024.

~~Going Concern~~Financing Activities

~~The Company~~Net ~~had~~ cash ofused ~~$100,633~~in asfinancing ofactivities ~~March~~was ~~31, 2025, negative working capital of~~ approximately $221.60 million ~~and~~for ~~shareholders’ deficit of $9.2 million. Further, during~~ the ~~nine~~three months ended ~~March~~September 3130, 2025, ~~the~~and ~~Company~~consisted ~~incurred a net loss~~ of ~~$4.2~~proceeds ~~million~~from ~~and~~notes ~~cash~~payable ~~flow~~in ~~used~~the ~~in operations~~amount of approximately $91.30 million ~~for~~and ~~the~~payments ~~nine~~on ~~month~~notes ~~period~~payable ~~ended~~in ~~March 31, 2025. As such,~~ the ~~Company~~amount ~~concluded~~of ~~that~~approximately ~~there is substantial doubt about its ability to continue as a going concern~~$2.0 ~~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~~million.

16Net cash provided by financing activities was approximately $0.9 million for the three months ended September 30, 2024 and consisted of proceeds from notes payable.

~~Cash Flows~~16

~~The following~~Results ~~tables summarize the results~~ of ~~our cash flows for the below respective periods:~~Operations

	For the Nine Months Ended March 31,
	2025			2024
Net (loss) income	$	(4,181,134	)	$	(120,402	)
Net cash flows provided by (used in) operating activities		(9,253,018	)		(5,650,246	)
Net cash flows provided by (used in) investing activities:		-			-
Net cash flows provided by (used in) financing activities:		9,251,930			5,648,038
Net change in cash		(1,088	)		(2,208	)
Cash, beginning of period		101,721			2,683
Cash, end of period	$	100,633		$	475

Our financial results for the three months ended September 30, 2025 and 2024 are summarized as follows:

Operating Activities

	For the Three Months Ended September 30,
	2025			2024
Operating Expense
General and administrative	$	657,799		$	496,578
Total operating expenses	$	657,799		$	496,578

Net loss before other income (expense)		(657,799	)		(496,578	)

Other income (expense)	$	(308,311	)	$	(106,786	)

Net (loss) income before income taxes		(966,090	)		(603,364	)
Income tax expense		-			-
Net (loss) income	$	(966,090	)	$	(603,364	)

~~Net cash~~For ~~used in operating activities was approximately $9.3 million for~~ the ~~nine~~Three ~~months~~Months ~~ended~~Ended ~~March~~September 3130, 2025. ~~Cash~~compared ~~used~~to ~~in operating activities resulted from a net loss for~~ the ~~nine~~Three ~~months~~Months ~~ended~~Ended ~~March~~September 3130, 2025 of approximately $4.2 million, a decrease in cash from changes in operating assets and liabilities of approximately $15.5 million and amortization of film costs of approximately $10.5 million. Film cost amortization is a non-cash expense and is a reconciling item between net loss and cash flow used in operations.2024

~~Net cash~~General used in operating activities was approximately $5.6 million for the nine months ended March 31, 2024. Cash used in operating activities resulted from net loss for the nine months ended March 31, 2024 of approximately $0.1 million and ~~a decrease in cash from changes in operating assets and liabilities of approximately $5.5 million.~~Administrative

~~Investing~~General and administrative expense for the three ~~Activities~~months ended September 30, 2025 and 2024 totaled $657,779 and $496,578, respectively. General and administrative costs for the three months ended September 30, 2025 of $657,779 consisted of professional fees of $510,497, payroll costs of $101,777, travel, meals and entertainment costs of $20,202 and other general and administrative expenses of $25,303.

~~There were~~General noand ~~investing~~administrative ~~activities~~costs ~~during~~for ~~either~~ the three ~~nine~~ months ended ~~March~~September 3130, ~~2025~~2024 orof ~~2024~~$496,578 consisted of professional fees of $187,972, music and musician expenses $87,275, travel & meals and entertainment of $91,598, payroll costs of $53,106, external communication of $34,346 and other general and administrative expenses of $42,281.

~~Financing~~The increase in general and administrative ~~Activities~~for the three months ended September 30, 2025 as compared to the three months ended September 30, 2024 was primarily related to increases in professional fees related to legal and external financial services and wages expense for management salaries.

~~Net cash~~Other ~~provided~~(expense) by financing activities was approximately $9.3 million for the nine months ended March 31, 2025 and consisted of proceeds from notes payable in the amount of approximately $19.3 million and payments on notes payable in the amount of approximately $10.0 million.income

~~Net~~For the three months ~~cash~~ended ~~provided~~September by30, ~~financing~~2025, ~~activities~~other ~~was~~income ~~approximately~~(expense) totaled ($~~5.6~~308,311) ~~million~~which ~~for~~primarily consisted of interest expense of ($308,440). For the ~~nine~~three months ended ~~March~~September 3130, 2024, ~~and~~other ~~consisted~~income of(expense) ~~proceeds~~was ($106,786). The increase in other income (expense) was ~~from~~primarily due to the higher average outstanding balance of notes payable inwithin the ~~amount~~corporate ofentity ~~approximately~~during ~~$11~~the period ended September 30, 2025 as compared to the period ended September 30, 2024.5 ~~million~~Portions ~~and~~of ~~payments~~our oninterest costs related to notes payable are capitalized in accordance with Accounting Standards Codification (“ASC”) 926, Entertainment-Films and therefore are expensed through the ~~amount~~amortization of ~~approximately~~capitalized film costs. For the three months ended September 30, 2025 and 2024, the Company capitalized $50.82 million and $0 of interest expense to film costs related to various picture film productions, respectively.

~~Results of~~Critical ~~Operations~~Accounting Estimates

~~Our financial~~Impairment ~~results~~of ~~for~~Capitalized ~~the~~Production ~~three and nine months ended March 31, 2025 and 2024 are summarized as follows:~~Costs

	For the Three Months Ended March 31,						For the Nine Months Ended March 31,
	2025			2024			2025			2024
Revenues	$	-		$	-		$	10,000,000		$	-
Film cost amortization		-			-			10,468,247			-
Gross margin	$	-		$	-		$	(468,247	)	$	-
Operating Expense
General and administrative	$	326,385		$	9,246		$	3,074,162		$	120,402
Total operating expenses	$	326,385		$	9,246		$	3,074,162		$	120,402
Net loss before other income (expense)		(326,385	)		(9,246	)		(3,542,409	)		(120,402	)
Other income (expense)	$	(228,154	)	$	-		$	(638,725	)	$	-
Net (loss) income before income taxes		(554,539	)		(9,246	)		(4,181,134	)		(120,402	)
Income tax expense		-			-			-			-
Net (loss) income	$	(554,539	)	$	(9,246	)	$	(4,181,134	)	$	(120,402	)

The Company will test its unamortized production costs whenever events or changes in circumstances indicate that the fair value of a film may be less than its unamortized costs. If the Company determines that the fair value of a film is less than its unamortized production costs, then the unamortized capitalized costs for the film will be written down by the amount exceeding the film’s fair value. The unit of account for impairment testing is the individual film being produced and the fair value is determined using a discounted cash flow technique.

~~For the~~Recognition ~~Three~~of ~~Months~~Revenue ~~Ended~~from ~~March~~Contracts ~~31, 2025 compared to the Three Months Ended March 31, 2024~~with Customers

~~Revenues~~The Company recognizes revenue from its contracts with customers in accordance with the core principle outlined in ASC 606, Revenue from Contracts with Customers. Specifically, “to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which we expect to be entitled in exchange for those goods or services”. To that extent, the Company recognizes revenue in accordance with the ASC Topic by applying the following five steps:

~~The Company~~● ~~recognized~~Step no1-Identify ~~revenues~~the ~~during~~contract(s) with a customer ● Step 2-Identify the ~~three~~performance ~~months~~obligations ~~ended~~in ~~March~~the ~~31,~~contract ~~2025~~● Step 3-Determing the transaction price ● Step 4-Allocate the transaction price to the performance obligations in the contract ● Step 5-Recognize revenue when (or ~~three~~as) ~~months~~the ~~ended~~Company ~~March~~satisfies ~~31,~~a ~~2024.~~performance obligation

~~Cost~~The Company’s contracts with its customers currently contain a single performance obligation comprised of ~~Service~~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.

~~Cost of~~In ~~service~~determining ~~was~~the $0transaction ~~for~~price, the ~~three~~Company’s contracts ~~months~~with ~~ended~~its ~~March~~customers 31do not include a significant financing component, ~~2025~~non-cash ~~and~~consideration ~~2024~~or consideration payable to the customer. ~~Cost~~However, the Company’s contracts typically will include sales-based or usage-based royalties that are triggered by the attainment of ~~service~~certain ~~relates~~levels ~~solely~~of tobox office receipts or video on demand (“VOD”) purchases. To that extent, in accordance with ASC 606-10-55, the ~~amortization~~Company will recognize the sales-based or usage-based royalties only when the later of ~~capitalized~~the following events occur-a) ~~film~~the ~~costs~~subsequent sale or usage occurs or b) the performance obligation to which the sales-based or usage-based royalty has been satisfied.

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

~~General and~~Investments ~~administrative~~in ~~expense~~Equity for the three months ended March 31, 2025 and 2024 totaled $326,385 and $9,246, respectively. General and administrative costs for the three months ended March 31, 2025 of $326,385 consisted of professional fees of $116,632, payroll costs of $100,720, office expenses of $31,397, external communication costs of $13,461, travel, meals and entertainment costs of $1,223 and other expenses of $62,952.Securities

~~General and~~The ~~administrative~~Company ~~costs~~accounts for ~~the~~its ~~three~~investments ~~months~~in ~~ended~~equity securities ~~March~~without ~~31,~~a ~~2024~~readily ofdeterminable $9fair value at cost minus impairment in accordance with ASC 321,~~246~~ ~~consisted~~Investments-Equity ofSecurities. Further, ~~bank~~the ~~charges~~Company ofwill $6continue 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,~~577~~ ~~and~~the ~~other~~Company ~~costs~~will re-assess at the end of ~~$2,669~~each reporting period whether the investment still qualifies to be recognized at cost minus impairment.

~~The~~In addition to assessing whether the investments ~~increase~~still inqualify ~~general~~to ~~and~~be ~~administrative~~recognized ~~for~~at cost minus impairment, the ~~three~~Company ~~months~~will ~~ended~~also ~~March~~make ~~31,~~a ~~2025~~qualitative asassessment ~~compared~~at the end of each reporting period considering impairment indicators to evaluate whether the ~~three~~investment ~~months~~is ~~ended~~impaired. ~~March~~If ~~31,~~the ~~2024~~qualitative assessment indicates that ~~was~~the ~~primarily~~investment ~~related~~is ~~to general~~impaired ~~organizational~~and ~~ramp-up~~the tofair ~~administratively~~value ~~support~~of the ~~Company’s~~investment ~~in-production~~is less than its carrying value, then the investment will be written down ~~and~~to ~~pre-production~~fair ~~films~~value.

~~Other (expense) income~~18

~~For the~~Recent three months ended March 31, 2025, other (expense) income totaled $228,154 which consisted of interest expense of $228,290 and other income of $136. For the three months ended March 31, 2024, other (expense) income was $0. The increase in other (expense) income was primarily related to the increase in notes payable during the three months ended March 31, 2025 as compared to the three months ended March 31, 2024. Portions of our interest costs related to notes payable are capitalized in accordance with Accounting Standards Codification (“ASC”) 926, Entertainment-Films and therefore are expensed through the amortization of capitalized film costs. For the three months ended March 31, 2025 and 2024, the Company capitalized $0.3 million of interest expense to film costs related to various picture film productions.Pronouncements

~~For~~ In December 2023, the ~~Nine~~FASB ~~Months~~issued ~~Ended~~ASU ~~March~~2023-09-Income Taxes 31(Topic 740)-Improvements to Income Tax Disclosures, ~~2025~~which ~~compared~~requires entities to provide additional information in the ~~Nine~~rate ~~Months~~reconciliation and ~~Ended~~additional ~~March~~disclosures 31about income taxes paid. The guidance should be applied prospectively and is effective for annual periods beginning after December 15, 2024 for public business entities. This guidance is applicable for smaller reporting companies effective for annual periods beginning after December 15, 2025. The Company does not expect the issued standard will have a material impact on its consolidated financial statements.

~~Revenues~~In November 2024, the FASB issued ASU 2024-03, Income Statement-Reporting Comprehensive Income-Expense Disaggregation Disclosures (Subtopic 220-40). The amendments in this update require disclosure, in the notes to condensed consolidated financial statements, of specified information about certain costs and expenses at each interim and annual reporting period. The amendments are effective for annual periods beginning after December 15, 2026, and reporting periods beginning after December 15, 2027, with early adoption permitted. The Company is currently evaluating the impact that the new ASU will have on its condensed consolidated financial statements.

~~The Company~~Item ~~recognized $10~~3.0 ~~million~~Quantitative inand ~~revenues~~Qualitative ~~during~~Disclosures ~~the~~about ~~nine~~Market months ended March 31, 2025. There were no recognized revenues during the nine months ended March 31, 2024. The increase in revenues recognized during the nine months ended March 31, 2025 as compared to the nine months ended March 31, 2024 was due to the sale of a film during the current year period for $10.0 million.Risk

18As a smaller reporting company, we are not required to provide the information required by this Item.

~~Cost of~~Item ~~Service~~4. Controls and Procedures

~~Cost of~~Evaluation ~~service was $10.5 million for the nine months ended March 31, 2025. The cost~~ of ~~service~~Disclosure ~~relates~~Controls ~~solely to the amortization of capitalized film. As the Company does not expect to generate additional revenues from the film the entire film cost balance was amortized~~ and ~~all of the necessary participation costs were accrued during the period. The Company did not incur any cost of service during the nine months ended March 31, 2024.~~Procedures

~~General~~Our management, with the participation of our chief executive officer/chief financial officer, evaluated the effectiveness of our disclosure controls and ~~Administrative~~procedures as defined in Rules 13a-15(e) and 15d-15(e) and pursuant to Rules 13a-15(b) and 15d-15(b) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”) as of September 30, 2025. Disclosure controls and procedures are controls and procedures that are designed to ensure that information required to be disclosed in our reports filed or submitted under the Exchange Act, such as this Form 10-Q, is recorded, processed, summarized and reported, within the time period specified in the SEC’s rules and forms, and that such information is accumulated and is communicated to our management, including our principal executive and principal financial officers, or persons performing similar functions, as appropriate, to allow timely decisions regarding required disclosure. In designing and evaluating the disclosure controls and procedures, management recognizes that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives. In addition, the design of disclosure controls and procedures must reflect the fact that there are resource constraints and that management is required to apply its judgment in evaluating the benefits of possible controls and procedures relative to their costs.

~~General~~Our disclosure controls and ~~administrative~~procedures ~~expense~~(as ~~for~~defined in Rules 13a-15(e) and 15d-15(e)) are designed to ensure that information required to be disclosed by us in reports we file or submit under the ~~nine~~Securities ~~months~~Exchange ~~ended~~Act ~~March~~of 311934, ~~2025~~as ~~and~~amended, ~~2024~~is ~~totaled~~recorded, $3processed,~~074,162~~ summarized and ~~$120~~reported within the appropriate time periods,~~402,~~ ~~respectively.~~and ~~General~~that such information is accumulated and ~~administrative~~ ~~costs~~communicated ~~for~~to the ~~nine~~Chief ~~months~~Executive ~~ended~~Officer/Chief ~~March~~Financial Officer, 31as appropriate, ~~2025~~to ofallow $3timely discussions regarding required disclosure. We,~~074,162~~ ~~consisted~~under the supervisions of ~~participation~~and ~~costs~~with the participation of $1our management,~~995,058,~~ ~~professional fees~~including our Chief Executive Officer/Chief Financial Officer have evaluated the effectiveness of ~~$461,855,~~our ~~music~~disclosure controls and ~~musician~~procedures. ~~expenses~~Based ~~$87~~upon such evaluation,~~275,~~ ~~travel~~our &chief ~~meals~~executive officer and ~~entertainment~~our chief financial officer have concluded that, as of ~~$95~~September 30,~~780~~ 2025, ~~payroll~~our ~~costs~~disclosure controls and procedures were ineffective because of ~~$251,208,~~the ~~external~~material weaknesses in our internal control over financial ~~communication~~reporting due to a lack of ~~$53,232~~segregation of duties and ~~other~~the ~~expenses~~lack of ~~$129,754~~formal documentation of our control environment.

~~General and~~Changes ~~administrative~~in ~~costs~~internal ~~for~~control ~~the~~over ~~nine months ended March 31, 2024 of $120,402 consisted of participation costs of $100,000, pre-production~~financial ~~costs of $7,500 and other expenses of $12,902~~reporting.

~~The increase~~There inwere ~~general~~no ~~and~~changes ~~administrative~~in ~~for~~our ~~the~~internal ~~nine months ended March 31, 2025 as compared to the nine months ended March 31, 2024 was~~controls ~~primarily~~over ~~related~~financial toreporting ~~participation~~that ~~costs~~occurred ~~recognized~~during in the ~~amount of $1,995,058 in the current~~ period, ~~related~~covered toby athis ~~film~~Form ~~sale.~~10-Q ~~The~~that ~~remainder of~~has ~~the~~materially ~~increases~~affected, ~~were~~or ~~primarily~~is ~~due~~reasonably likely to ~~general~~materially ~~organizational~~affect, ~~ramp-up~~our tointernal ~~administratively~~control ~~support~~over ~~the~~financial ~~Company’s in-production and pre-production films~~reporting.

~~Other (expense) income~~19

~~For the~~PART ~~nine months ended March 31, 2025, other income (expense) totaled $638,725 which consisted of interest expense of $640,837 and other income of $2,112~~II. ~~For~~OTHER the nine months ended March 31, 2024, other income (expense) totaled $0. The increase in other (expense) income was primarily related to the increase in notes payable during the nine months ended March 31, 2025 as compared to the nine months ended March 31, 2024. Portions of our interest costs related to notes payable are capitalized in accordance with Accounting Standards Codification (“ASC”) 926, Entertainment-Films and therefore are expensed through the amortization of capitalized film costs. For the nine months ended March 31, 2025 and 2024, the Company capitalized $1.5 million and $0.4 million of interest expense to film costs related to various picture film productions.INFORMATION

~~Critical Accounting~~Item ~~Estimates~~1. Legal Proceedings

~~Impairment of Capitalized Production Costs~~None.

~~The Company~~Item ~~will test its unamortized production costs whenever events or changes in circumstances indicate that the fair value of a film may be less than its unamortized costs~~1A. IfRisk the Company determines that the fair value of a film is less than its unamortized production costs, then the unamortized capitalized costs for the film will be written down by the amount exceeding the film’s fair value. The unit of account for impairment testing is the individual film being produced and the fair value is determined using a discounted cash flow technique.Factors

~~Recognition~~As a smaller reporting Company, we are not required ofto ~~Revenue~~provide ~~from~~the ~~Contracts~~information ~~with~~required ~~Customers~~by this item.

~~The Company~~Item ~~recognizes revenue from its contracts with customers in accordance with the core principle outlined in ASC 606, Revenue from Contracts with Customers~~2. ~~Specifically,~~Unregistered ~~“to~~Sales ~~depict the transfer~~ of ~~promised~~Equity ~~goods~~Securities orand ~~services~~Use toof customers in an amount that reflects the consideration to which we expect to be entitled in exchange for those goods or services”. To that extent, the Company recognizes revenue in accordance with the ASC Topic by applying the following five steps:Proceeds

● Step 1-Identify the contract(s) with a customer ● Step 2-Identify the performance obligations in the contract ● Step 3-Determing the transaction price ● Step 4-Allocate the transaction price to the performance obligations in the contract ● Step 5-Recognize revenue when (or as) the Company satisfies a performance obligationN/A

19Item 3. Defaults Upon Senior Securities

~~The Company’s~~As ~~contracts~~of ~~with~~the ~~its~~date ~~customers currently contain a single performance obligation comprised~~ of athis ~~license to motion picture rights. In accordance with ASC 606~~filing, the Company ~~( i.e. the “licensor”) has concluded that the license transfer should i)~~had bedefaulted ~~considered~~on ~~functional~~approximately ~~intellectual~~$998,000 ~~property~~of ~~and~~principal ~~ii)~~amount ~~that customers (the “licensees” or “distributors”) are therefore granted a right to access~~ of ~~the~~outstanding ~~Company’s intellectual property throughout the license period~~debt. AsThe ~~such,~~total ~~revenue~~arrearage isas ~~recognized at a point in time upon the Company’s delivery~~ of the ~~license~~date ~~to the licensee. The Company does not currently provide any form~~ of ~~extended~~this ~~payment~~filing ~~terms~~was ~~to its customers and~~approximately $1, ~~as such~~180,000, awhich ~~fixed~~includes ~~payment~~both isprincipal ~~typically~~and ~~received from the customer within 90 days after the license is transferred~~interest.

~~In determining~~Item ~~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~~4. ~~However,~~Mine ~~the~~Safety 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.Disclosures

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

~~Investments in~~Item ~~Equity~~5. ~~Securities~~Other Information

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.N/A

~~In addition~~Item 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 impaired6. If the qualitative assessment indicates that the investment is impaired and the fair value of the investment is less than its carrying value, then the investment will be written down to fair value. The Company did not recognize any impairments for the nine months ended March 31, 2025 and 2024.Exhibits

Recent Accounting Pronouncements

Exhibit No.		Description
10.4*		License agreement, dated July 29, 2025, by and between the Company and Apple Video Programming LLC
31.1*		Certification of the Chief Executive Officer/Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1*		Certification of the Chief Executive Officer/Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101.INS*		Inline XBRL Instance Document.
101.SCH*		Inline XBRL Taxonomy Extension Schema Document
101.CAL*		Inline XBRL Taxonomy Extension Calculation Linkbase Document
101.LAB*		Inline XBRL Taxonomy Extension Label Linkbase Document
101.PRE*		Inline XBRL Taxonomy Extension Presentation Linkbase Document
101.DEF*		Inline XBRL Taxonomy Extension Definition Linkbase Document
104		Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101)

~~In November~~* ~~2023,~~Filed the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2023-07, Segment Reporting - Improvements to Reportable Segment Disclosures (“ASU 2023-07”), which requires incremental disclosures related to a public entity’s reportable segmentsherewith. Required disclosures include, on an annual and interim basis, significant segment expenses that are regularly provided to the CODM and included within each reported measure of segment profit or loss, an amount for other segment items (which is the difference between segment revenue less segment expenses and less segment profit or loss) and a description of its composition, the title and position of the CODM, and an explanation of how the CODM uses the reported measure(s) of segment profit or loss in assessing segment performance and deciding how to allocate resources. The standard also permits disclosure of more than one measure of segment profit. ASU 2023-07 is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. The adoption of ASU 2023-07 did not have a material impact on its combined financial statements.

In December 2023, the FASB issued ASU 2023-09-Income Taxes (Topic 740)-Improvements to Income Tax Disclosures, which requires entities to provide additional information in the rate reconciliation and additional disclosures about income taxes paid. The guidance should be applied prospectively and is effective for annual periods beginning after December 15, 2024. The Company does not expect the issued standard will have a material impact on its combined financial statements.20

20SIGNATURES

~~In November~~Pursuant ~~2024,~~to the ~~FASB issued ASU 2024-03, Income Statement-Reporting Comprehensive Income-Expense Disaggregation Disclosures~~requirements ~~(Subtopic~~of ~~220-40).~~the ~~The~~Securities ~~amendments~~Exchange inAct ~~this~~of ~~update require disclosure~~1934, in the ~~notes~~registrant tohas ~~combined~~duly ~~financial~~caused ~~statements,~~this ofreport ~~specified~~to ~~information about~~be ~~certain~~signed ~~costs~~on ~~and~~its ~~expenses~~behalf atby ~~each~~the ~~interim and annual reporting period. The amendments are effective for annual periods beginning after December 15~~undersigned, ~~2026, and reporting periods beginning after December 15, 2027, with early adoption permitted. The Company is currently~~thereunto ~~evaluating~~duly ~~the impact that the new ASU will have on its combined financial statements~~authorized.

Item 3. Quantitative and Qualitative Disclosures about Market Risk

	Rivulet Entertainment, Inc.

Date: January 20, 2026	By:	/s/ Walter Geldenhuys
		Walter Geldenhuys
		President, Chief Executive Officer and Interim Chief Financial Officer

~~As a smaller reporting company, we are not required to provide the information required by this Item.~~21

Item 4. Controls and Procedures

Evaluation of Disclosure Controls and Procedures

Our management, with the participation of our chief executive officer/chief financial officer, evaluated the effectiveness of our disclosure controls and procedures as defined in Rules 13a-15(e) and 15d-15(e) and pursuant to Rules 13a-15(b) and 15d-15(b) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”) as of March 31, 2025. Disclosure controls and procedures are controls and procedures that are designed to ensure that information required to be disclosed in our reports filed or submitted under the Exchange Act, such as this Form 10-Q, is recorded, processed, summarized and reported, within the time period specified in the SEC’s rules and forms, and that such information is accumulated and is communicated to our management, including our principal executive and principal financial officers, or persons performing similar functions, as appropriate, to allow timely decisions regarding required disclosure. In designing and evaluating the disclosure controls and procedures, management recognizes that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives. In addition, the design of disclosure controls and procedures must reflect the fact that there are resource constraints and that management is required to apply its judgment in evaluating the benefits of possible controls and procedures relative to their costs.

Our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e)) are designed to ensure that information required to be disclosed by us in reports we file or submit under the Securities Exchange Act of 1934, as amended, is recorded, processed, summarized and reported within the appropriate time periods, and that such information is accumulated and communicated to the Chief Executive Officer/Chief Financial Officer, as appropriate, to allow timely discussions regarding required disclosure. We, under the supervisions of and with the participation of our management, including our Chief Executive Officer/Chief Financial Officer have evaluated the effectiveness of our disclosure controls and procedures. Based upon such evaluation, our chief executive officer and our chief financial officer have concluded that, as of March 31, 2025, our disclosure controls and procedures were ineffective because of the material weaknesses in our internal control over financial reporting due to a lack of segregation of duties and the lack of formal documentation of our control environment.

Changes in internal control over financial reporting.

There were no changes in our internal controls over financial reporting that occurred during the period covered by this Form 10-Q that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

PART II. OTHER INFORMATION

Item 1. Legal Proceedings

During June of 2025, the Company received an OSHA complaint which was made against one of our wholly owned subsidiaries (i.e. “The Nutcracker”). The Company does not believe that there is any merit to the claim. Further, an estimate of the possible loss cannot be made at this time.

Item 1A. Risk Factors

As a smaller reporting Company, we are not required to provide the information required by this item.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

N/A

Item 3. Defaults Upon Senior Securities

As of the date of this filing, the Company had defaulted on approximately $353,000 of principal amount of outstanding debt. The total arrearage as of the date of this filing was approximately $420,000, which includes both principal and interest.

Item 4. Mine Safety Disclosures

N/A

Item 5. Other Information

N/A

Item 6. Exhibits

Exhibit No.		Description
10.1		Nutcracker License Agreement
10.2		Genius Equity Notes Payable Agreement
10.3		Casa Azul Investment Agreement
31.1*		Certification of the Chief Executive Officer/Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1*		Certification of the Chief Executive Officer/Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101.INS*		Inline XBRL Instance Document.
101.SCH*		Inline XBRL Taxonomy Extension Schema Document
101.CAL*		Inline XBRL Taxonomy Extension Calculation Linkbase Document
101.LAB*		Inline XBRL Taxonomy Extension Label Linkbase Document
101.PRE*		Inline XBRL Taxonomy Extension Presentation Linkbase Document
101.DEF*		Inline XBRL Taxonomy Extension Definition Linkbase Document
104		Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101)

* Filed herewith. ** Furnished, not filed.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

	Rivulet Entertainment, Inc.
Date: September 10, 2025	By:	/s/ Walter Geldenhuys
		Walter Geldenhuys
		President, Chief Executive Officer and Interim Chief Financial Officer

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