As of June 30, 2024

Transaction

As of June 30, 2024

Rivulet Entertainment, Inc.

Rivulet Media, Inc.

Accounting

Pro Forma

(Historical)

(Historical)

Adjustments

Combined

CURRENT ASSETS

Cash

$38,365  

$101,721  

$-  

$140,086  

Asset purchase deposit

2,950,000  

-  

(2,950,000) 

(A)  

-  

Prepaid expenses

-  

47,044  

-  

47,044  

Total current assets

$2,988,365  

$148,765  

$(2,950,000) 

$187,130  

NONCURRENT ASSETS

Property and equipment, net

$824  

$-  

$-  

$824  

Production costs

-  

10,024,760  

-  

10,024,760  

Deposits

-  

854,390  

-  

854,390  

Investment in Casa Azul

-  

2,000,000  

-  

2,000,000  

Total noncurrent assets

$824  

$12,879,150  

$-  

$12,879,974  

Total assets

$2,989,189  

$13,027,915  

$(2,950,000) 

$13,067,104  

CURRENT LIABILITIES

Accounts payable

$-  

$205,249  

$3,500,000  

(F)  

$3,705,249  

Accrued payroll

192,654  

-  

-  

192,654  

Notes payable, current

-  

4,890,000  

-  

4,890,000  

Accrued interest

-  

712,229  

-  

712,229  

Other current liabilities

-  

154,689  

-  

154,689  

Total current liabilities

$192,654  

$5,962,167  

$3,500,000  

$9,654,821  

NONCURRENT LIABILITIES

Related Party notes payable, non-current

$10,768,316  

$(7,888,316) 

(B)  

$2,880,000  

Notes payable, non-current portion

-  

1,330,000  

-  

1,330,000  

Long Term Liabilities

-  

-  

-  

-  

Total noncurrent liabilities

$-  

$12,098,316  

$(7,888,316) 

$4,210,000  

Total liabilities

$192,654  

$18,060,483  

$(4,388,316) 

$13,864,821  

EQUITY

Common stock, Rivulet Entertainment Inc., par value;

80,338,287 and 109,695,876 issued and outstanding on a

$80,338  

$-  

$(80,338) 

(C)  

$-  

historical and proforma basis, respectively

$109,696  

(D)  

$109,696  

Common stock, Rivulet Media, $0.001 par value;

no shares outstanding on a historical basis

-  

-  

-  

Additional paid-in capital

11,713,764  

-  

(11,713,764) 

(C)  

-  

4,125,155  

(E)  

4,125,155  

Accumulated deficit

(8,997,567) 

(5,032,568) 

8,997,567  

(C)  

(5,032,568) 

Total shareholders equity (deficiency)

$2,796,535  

$(5,032,568) 

$1,438,316  

$(797,717) 

Total Liabilities & shareholders' deficiency

$2,989,189  

$13,027,915  

$(2,950,000) 

$13,067,104  

For the year ended June 30, 2024

Transaction

For the year ended

Rivulet Entertainment, Inc.

Rivulet Media, Inc.

Accounting

June 30, 2024

(Historical)

(Historical)

Adjustments

Pro Forma Combined

Revenue:

Revenue

$-  

$60,000  

$- 

$60,000  

Operating expenses:

General and administrative:

$176,627  

$241,489  

$418,116  

Total operating expenses

$176,627  

$241,489  

$- 

$418,116  

Net loss before other expense

$(176,627) 

$(181,489) 

$- 

$(358,116) 

Other income (expense)

Gain on salary forgiveness

$123,827  

$-  

$- 

$123,827  

Interest expense

(1,877) 

-  

- 

(1,877) 

Other income (expense)

$121,950  

$-  

$- 

$121,950  

Net loss before income taxes

$(54,677) 

$(181,489) 

$- 

$(236,166) 

Income tax expense

-  

-  

- 

-  

Net loss

$(54,677) 

$(181,489) 

$- 

$(236,166) 

Basic and diluted loss per share,
historical and proforma

$0.00  

($0.00) 

Basic and diluted
weighted average shares outstanding

42,332,884  

Note 2

109,695,876  

(A)

Reflects the elimination of the asset purchase. The amount has been adjusted through a reduction to additional paid in capital. The activity will not recur beyond 12 months after the transaction.

(B)

Reflects forgiveness of the related party debt between the limited liability companies (“LLCs”) that were included as part of the transaction and their former parent company-Rivulet Media, Inc. The related party debt was forgiven upon consummation of the merger. The amount has been offset as an increase to additional paid in capital. The activity will not recur beyond 12 months after the transaction.

(C)

Reflects the elimination of the historical equity balance of Rivulet Entertainment, inc. which has been deemed to be the accounting acquirer

(D)

Reflects outstanding shares of the combined company as of the transaction date. The outstanding shares has been calculated (in accordance with ASC 805-50) using an exchange rate of 0.67 and is based on i) the number of shares issued to effectuate the transaction divided by Rivulet Media inc’s total shares outstanding immediately prior to closing of the transaction and ii) the amount of implicit shares Rivulet Media, inc. would have had to issue in order to effectuate the transaction

(E)

Reflects the adjustment to additional paid in capital for i) elimination of the asset purchase deposit ii) forgiveness of related party debt and iii) the recapitalization and iv) the $3.5 million payment still outstanding to Rivulet Media, Inc.

(F)

Reflects the amount of merger consideration still outstanding to Rivulet Media, Inc.

Historical and ProForma EPS

For the period ended

June 30, 2024

Rivulet Entertainment, Inc. (Historical)

42,332,884  

Historical net income (loss)

$(54,677) 

Historical earnings per share-basic and diluted

$(0.00) 

Total pro forma shares outstanding

109,695,876  

(A)

Pro Forma net income (loss)

$(236,166) 

Pro Forma earnings per share-basic and diluted

$(0.00) 

(B)