Rivulet Entertainment, Inc. (OTC PINK:RIVF), previously known as Advanced Voice Recognition Systems, Inc., announced on Monday that it has entered into an addendum to modify its existing Asset Purchase Agreement. The amendment, dated October 9, 2024, involves the removal of Maughan Music, Inc. from the list of assets to be acquired and the addition of Storyland Animation LLC.
The addendum further specifies that the liabilities related to Rivulet Media, Inc., Rivulet Films, Inc., and all trade accounts, except for those possibly due to Nutcracker and /Kicklight, will not be assumed by Rivulet Entertainment. The remaining terms and conditions of the original Purchase Agreement, which was executed on March 1, 2024, are to remain unchanged and in full effect.
This recent development follows the company's strategic efforts to restructure its asset portfolio and streamline its business operations. Rivulet Entertainment, which operates in the crude petroleum and natural gas sector under the industrial classification code 1311, is based in Scottsdale, Arizona, and is incorporated in Nevada.
The company, which is also categorized as an emerging growth company, has not elected to use the extended transition period for complying with new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
In other recent news, Rivulet Entertainment, Inc. has made significant changes to its corporate structure and asset acquisition strategy. The company has introduced a multi-tier preferred stock system, including Series A, B, and C Preferred Stock, as part of its broader strategic initiatives to reorganize its capital structure. This amendment was detailed in an 8-K filing with the Securities and Exchange Commission (SEC).
In addition to the corporate restructuring, Rivulet Entertainment has amended its Asset Purchase Agreement with Rivulet Media, Inc. The updated agreement, which now includes additional shareholders, has increased the number of shares involved in the transaction to a total of 96,722,950. The company has also expanded its asset acquisition strategy to include The Dink Productions, LLC, issuing an additional 5,239,941 shares.
The company has undergone a series of corporate modifications, including a change in its fiscal year-end from December 31 to June 30. Furthermore, a merger with a wholly-owned subsidiary led to a rebranding, with the company now operating under the name Rivulet Entertainment, Inc. These recent developments are part of Rivulet Entertainment's efforts to restructure its operations, expand its assets, and diversify its portfolio.
InvestingPro Insights
Rivulet Entertainment's recent strategic moves, as outlined in the article, are taking place against a backdrop of significant financial challenges. According to InvestingPro data, the company's market capitalization stands at a modest $47.51 million, reflecting its status as a small-cap stock in the entertainment sector.
InvestingPro Tips highlight that Rivulet Entertainment "holds more cash than debt on its balance sheet" and "liquid assets exceed short term obligations," which could provide some financial flexibility as the company restructures its asset portfolio. However, these positive aspects are counterbalanced by the fact that the company is "not profitable over the last twelve months" and "suffers from weak gross profit margins."
The stock's performance has been particularly concerning, with InvestingPro data showing a one-year price total return of -54.08% as of the latest available data. This aligns with the InvestingPro Tip that the "stock has fared poorly over the last month" and has "taken a big hit over the last six months."
For investors seeking a more comprehensive analysis, InvestingPro offers 11 additional tips for Rivulet Entertainment, providing a deeper insight into the company's financial health and market position.
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