# EDGAR Filing Document

**Accession Number:** 0001900851
**File Stem:** 0001493152-26-023581
**Filing Date:** 2026-5
**Character Count:** 948902
**Document Hash:** 8967f758ac17b7550f90f6523d54b4af
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001493152-26-023581.hdr.sgml**: 20260515

**ACCESSION NUMBER**: 0001493152-26-023581

**CONFORMED SUBMISSION TYPE**: S-1

**PUBLIC DOCUMENT COUNT**: 70

**FILED AS OF DATE**: 20260515

**DATE AS OF CHANGE**: 20260515

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Ambitious Entertainment, Inc.
- **CENTRAL INDEX KEY:** 0001900851
- **STANDARD INDUSTRIAL CLASSIFICATION:** SERVICES-MOTION PICTURE & VIDEO TAPE PRODUCTION [7812]
- **ORGANIZATION NAME:** 07 Trade & Services
- **EIN:** 371896748
- **STATE OF INCORPORATION:** NV
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** S-1
- **SEC ACT:** 1933 Act
- **SEC FILE NUMBER:** 333-295935
- **FILM NUMBER:** 26985618

**BUSINESS ADDRESS:**
- **STREET 1:** 530 S 8TH STREET
- **CITY:** LAS VEGAS
- **STATE:** NV
- **ZIP:** 89101
- **BUSINESS PHONE:** 604-218-3374

**MAIL ADDRESS:**
- **STREET 1:** 530 S 8TH STREET
- **CITY:** LAS VEGAS
- **STATE:** NV
- **ZIP:** 89101

**As filed with the Securities and Exchange Commission on May 15, 2026.**

**Registration No. 333-_______**

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**WASHINGTON, D.C. 20549**

**FORM S-1**

**REGISTRATION STATEMENT**

**UNDER**

**THE SECURITIES ACT OF 1933**

**AMBITIOUS ENTERTAINMENT, INC.**

(Exact name of registrant as specified in its certificate of incorporation)

---

| | | |
|:---|:---|:---|
| **Nevada** | **7812** | **38-4174982** |
| (State or other jurisdiction of<br> incorporation or organization) | (Primary Standard Industrial<br> Classification Code Number) | (I.R.S. Employer<br> Identification Number) |

---

**744 Hastings Street West, Suite 207**

**Vancouver, British Columbia V6C 1A5**

**Canada**

**(604) 218-3374**

(Address, including zip code, and telephone number, including area code, of registrant's principal executive offices)

**Kirk E. Shaw**

**Chief Executive Officer**

**Ambitious Entertainment, Inc.**

**530 S. 8th Street**

**Las Vegas, Nevada 89101**

**(604)** **218-3374**

(Name, address, including zip code, and telephone number, including area code, of agent for service)

**Copies to:**

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| | |
|:---|:---|
| **Lawrence Metelitsa,** **Esq.**<br> **Lucosky Brookman LLP**<br> **101 Wood Avenue South, 5th Floor**<br> **Woodbridge, NJ 08830**<br> **(732) 395-4400**<br> **lmetelitsa@lucbro.com** | **Lawrence S. Venick, Esq.**<br> **Loeb & Loeb LLP**<br> **10100 Santa Monica Boulevard, Suite 2200**<br> **Los Angeles, CA 90067**<br> **+1 310 728-5129**<br> **lvenick@loeb.com**  |

---

**Approximate date of commencement of proposed sale to the public**: As soon as practicable after this registration statement becomes effective.

If any of the securities being registered on this Form are to be offered on a delayed or continuous basis pursuant to Rule 415 under the Securities Act of 1933 check the following box: ☒

If this Form is filed to register additional securities for an offering pursuant to Rule 462(b) under the Securities Act, please check the following box and list the Securities Act registration statement number of the earlier effective registration statement for the same offering. ☐

If this Form is a post-effective amendment filed pursuant to Rule 462(c) under the Securities Act, check the following box and list the Securities Act registration statement number of the earlier effective registration statement for the same offering. ☐

If this Form is a post-effective amendment filed pursuant to Rule 462(d) under the Securities Act, check the following box and list the Securities Act registration statement number of the earlier effective registration statement for the same offering. ☐

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," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer ☐ Accelerated filer ☐ <br> Non-accelerated filer ☒ Smaller reporting company ☒ <br> 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 7(a)(2)(B) of the Securities Act. ☐

**The registrant hereby amends this registration statement on such date or dates as may be necessary to delay its effective date until the registrant shall file a further amendment which specifically states that this registration statement shall thereafter become effective in accordance with section 8(a) of the Securities Act of 1933 or until the registration statement shall become effective on such date as the Securities and Exchange Commission, acting pursuant to said section 8(a), may determine.**

The information in this preliminary prospectus is not complete and may be changed. We may not sell these securities until the registration statement filed with the Securities and Exchange Commission is effective. This preliminary prospectus is not an offer to sell nor does it seek an offer to buy these securities in any jurisdiction where the offer or sale is not permitted.

**SUBJECT TO COMPLETION, DATED May 15, 2026**

**PROSPECTUS**

**3,555,556** **Shares**

**Common Stock**

![](formdrsa_001.jpg)

This is the initial public offering of Ambitious Entertainment, Inc. (the "Company", "Ambitious", "we", "our" or "us"). We are offering 3,555,556 shares of our common stock, par value $0.0001 per share. We estimate that the initial public offering price per share will be between $4.00 and $5.00.

Prior to this offering, there has been no public market for shares of our common stock. We intend to apply to have shares of our common stock listed on the NYSE American LLC ("NYSE American") under the symbol "_______". No assurance can be given that our application will be approved. If our listing application is not approved, we will not proceed with this offering.

We are an "emerging growth company" and a "smaller reporting company", each as defined in the federal securities laws, and we will, therefore, be subject to reduced public company reporting requirements. See "Prospectus Summary — Implications of Being an Emerging Growth Company" and "Prospectus Summary — Implications of Being a Smaller Reporting Company".

**Investing in our shares involves a high degree of risk. See "Risk Factors" beginning on page 15 of this prospectus for a discussion of information that should be considered in connection with an investment in our securities.**

**Neither the Securities and Exchange Commission nor any state securities commission has approved or disapproved of these securities or determined if this prospectus is truthful or complete. Any representation to the contrary is a criminal offense.**

---

| | | |
|:---|:---|:---|
|  | **Per Share** | **Total** |
| Initial public offering price <sup>(1)</sup> | $4.50 | $16000002 |
| Underwriting discounts and commissions <sup>(2)</sup> | $0.36 | $1280000 |
| Proceeds to us, before expenses | $4.14 | $14720002 |

---

&nbsp;&nbsp;&nbsp;&nbsp;(1) Assuming
 an initial public offering price of $4.50, the midpoint of the estimated initial public offering price range set forth on
 the cover page of this prospectus.

(2) Represents
 an underwriting discount equal to 8% per share. We have also agreed to reimburse the underwriters for certain expenses and
 to pay to the representative at the closing of the offering a non-accountable expense allowance equal to 1% of the gross proceeds
 of this offering. See "Underwriting" for additional information regarding underwriting compensation.

We have granted the underwriters an option, exercisable for a period of 45 days from the date of this prospectus, to purchase up to 533,333 additional shares of our common stock from us at the initial public offering price, less underwriting discounts and commissions, solely to cover over-allotments, if any. If the underwriters exercise the option in full, the total underwriting discounts and commissions payable will be $1,472,000, and the total proceeds to us, before expenses will be $18,400,001.

The underwriters expect to deliver the shares of common stock to investors on or about ____________, 2026.

*Sole bookrunner*

**Revere Securities LLC**

The date of this prospectus is ______________, 2026

**TABLE OF CONTENTS**

---

| | |
|:---|:---|
| [ABOUT THIS PROSPECTUS](#ta_001) | i |
| [SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS](#ta_002) | ii |
| [PROSPECTUS SUMMARY](#ta_003) | 1 |
| [RISK FACTORS](#ta_004) | 15 |
| [USE OF PROCEEDS](#ta_005) | 29 |
| [DIVIDEND POLICY](#ta_006) | 30 |
| [CAPITALIZATION](#ta_007) | 31 |
| [DILUTION](#ta_008) | 32 |
| [MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS](#ta_009) | 33 |
| [BUSINESS](#ta_010) | 46 |
| [MANAGEMENT](#ta_011) | 59 |
| [EXECUTIVE OFFICER AND DIRECTOR COMPENSATION](#ta_012) | 66 |
| [CERTAIN RELATIONSHIPS AND RELATED PERSONS TRANSACTIONS](#ta_013) | 67 |
| [PRINCIPAL STOCKHOLDERS](#ta_014) | 69 |
| [DESCRIPTION OF CAPITAL STOCK](#ta_015) | 70 |
| [SHARES ELIGIBLE FOR FUTURE SALE](#ta_016) | 75 |
| [MATERIAL U.S. FEDERAL INCOME TAX CONSIDERATIONS FOR NON-U.S. HOLDERS](#ta_017) | 76 |
| [UNDERWRITING](#ta_018) | 79 |
| [SELLING RESTRICTIONS](#ta_019) | 84 |
| [LEGAL MATTERS](#ta_020) | 86 |
| [EXPERTS](#ta_021) | 86 |
| [WHERE YOU CAN FIND MORE INFORMATION](#ta_022) | 86 |
| [INDEX TO FINANCIAL STATEMENTS](#ta_023) | F-1 |

---

**ABOUT THIS PROSPECTUS**

You should rely only on the information contained in this prospectus and any free writing prospectus prepared by or on behalf of us or to which we have referred you. Neither we nor the underwriters have authorized anyone to provide information different from that contained in this prospectus, any amendment or supplement to this prospectus, or in any free writing prospectus prepared by us or on our behalf. Neither we nor the underwriters take any responsibility for, and can provide no assurance as to the reliability of, any information other than the information in this prospectus, any amendment or supplement to this prospectus, and any free writing prospectus prepared by us or on our behalf. Neither the delivery of this prospectus nor the sale of our shares means that information contained in this prospectus is correct after the date of this prospectus. We and the underwriters are offering to sell the shares, and seeking offers to buy the shares, only in jurisdictions where offers and sales are permitted. This prospectus is not an offer to sell or the solicitation of an offer to buy our shares in any circumstances under which such offer or solicitation is unlawful.

We further note that the representations, warranties, and covenants made by us in any agreement that is filed as an exhibit to any document that is incorporated by reference into this prospectus were made solely for the benefit of the parties to such agreement, including, in some cases, for the purpose of allocating risk among the parties to such agreement, and should not be deemed to be a representation, warranty, or covenant to you. Moreover, such representations, warranties, or covenants were accurate only as of the date when made. Accordingly, such representations, warranties, and covenants should not be relied on as accurately representing the current state of our affairs.

**Use of Industry and Market Data**

This prospectus includes market and industry data that we have obtained from third-party sources, including industry publications, as well as industry data prepared by our management on the basis of its knowledge of and experience in the industries in which we operate (including our management's estimates and assumptions relating to such industries based on that knowledge). Management has developed its knowledge of such industries through its experience and participation in these industries. While our management believes the third-party sources referred to in this prospectus are reliable, neither we nor our management has independently verified any of the data from such sources referred to in this prospectus or ascertained the underlying economic assumptions relied upon by such sources. Furthermore, internally prepared and third-party market prospective information are estimates only and there will usually be differences between the prospective and actual results, because events and circumstances frequently do not occur as expected, and those differences may be material. Also, references in this prospectus to any publications, reports, surveys or articles prepared by third parties should not be construed as depicting the complete findings of the entire publication, report, survey or article. The information in any such publication, report, survey or article is not incorporated by reference in this prospectus.

**Trademarks, Trade Names and Service Marks**

"Ambitious" and other trademarks or service marks of Ambitious Entertainment, Inc. appearing in this registration statement are the property of Ambitious Entertainment, Inc. The other trademarks, trade names and service marks appearing in this prospectus are the property of their respective owners. Solely for convenience, the trademarks and trade names in this prospectus are referred to without the <sup>®</sup> and™ symbols, but such references should not be construed as any indicator that their respective owners will not assert, to the fullest extent under applicable law, their rights thereto.

i

**SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS**

This prospectus contains forward-looking statements within the meaning of the federal securities laws, which involve substantial risks and uncertainties. Forward-looking statements generally relate to future events or our future financial or operating performance. All statements of historical fact included in this prospectus regarding our strategy, future operations, financial position, estimated revenues and losses, projected costs, prospects, plans and objectives of management are forward-looking statements. In some cases, you can identify forward-looking statements because they contain words such as "may", "will", "shall", "should", "expects", "plans", "anticipates", "could", "intends", "target", "projects", "contemplates", "believes", "estimates", "predicts", "potential" or "continue" or the negative of these words or other similar terms or expressions that concern our expectations, strategy, plans or intentions. Forward-looking statements contained in this prospectus include, but are not limited to, statements about:

● our
 future financial performance, including our expectations regarding our revenue, annual recurring revenue, gross profit or gross margin,
 operating expenses, ability to generate cash flow, revenue mix and ability to maintain future profitability;

● our
 beliefs regarding the possible effects of the widespread domestic and global events, including on general economic conditions, public
 health, and consumer demand and financial markets, as well as our results of operations, liquidity, capital resources, and general
 performance in the future;

● our
 ability to maintain and expand our customer base;

● our
 ability to sell our projects;

● our
 ability to hire and retain necessary qualified employees to grow our business and expand our operations;

● our
 ability to adequately protect our intellectual property;

● our
 ability to service our debt obligations; and

● our
 anticipated uses of our net proceeds from this offering.

We caution you that the foregoing list may not contain all forward-looking statements made in this prospectus.

You should not rely upon forward-looking statements as predictions of future events. We have based the forward-looking statements contained in this prospectus primarily on our current expectations and projections about future events and trends that we believe may affect our business, financial condition, results of operations and prospects. The outcome of the events described in these forward-looking statements is subject to risks, uncertainties and other factors described in the section "Risk Factors" and elsewhere in this prospectus. Moreover, we operate in a very competitive and rapidly changing environment. New risks and uncertainties emerge from time to time, and it is not possible for us to predict all risks and uncertainties that could have an impact on the forward-looking statements contained in this prospectus. We cannot assure you that the results, events and circumstances reflected in the forward-looking statements will be achieved or occur, and actual results, events or circumstances could differ materially from those described in the forward-looking statements.

The forward-looking statements made in this prospectus relate only to events as of the date on which the statements are made. We undertake no obligation to update any forward-looking statements made in this prospectus to reflect events or circumstances after the date of this prospectus or to reflect new information or the occurrence of unanticipated events, except as required by law. We may not actually achieve the plans, intentions or expectations disclosed in our forward-looking statements and you should not place undue reliance on our forward-looking statements. Our forward-looking statements do not reflect the potential impact of any future acquisitions, mergers, dispositions, joint ventures, or investments we may make.

In addition, statements that "we believe" and similar statements reflect our beliefs and opinions on the relevant subject. These statements are based upon information available to us as of the date of this prospectus, and while we believe such information forms a reasonable basis for such statements, such information may be limited or incomplete, and our statements should not be read to indicate that we have conducted an exhaustive inquiry into, or review of, all potentially available relevant information. These statements are inherently uncertain, and you are cautioned not to unduly rely upon these statements.

ii

**PROSPECTUS SUMMARY**

*This summary highlights selected information contained elsewhere in this prospectus. This summary is not complete and does not contain all the information that you should consider before deciding to invest in shares of our common stock. You should read this entire prospectus carefully, including the risks associated with an investment in the company discussed in the "Risk Factors" section of this prospectus, "Management's Discussion and Analysis of Financial Condition and Results of Operations", and our financial statements and the related notes thereto included elsewhere in this prospectus before making an investment decision.*

*Unless the context requires otherwise, references to the "Company", "Ambitious", "we", "us" and "our" refer to Ambitious Entertainment, Inc.*

**Company Overview**

Ambitious Entertainment, Inc., incorporated in Nevada in September 2020, was founded to capitalize on the convergence of online influencers, emerging technologies, and global financing opportunities. Our team strategy focuses on developing film and television content designed for rapid sales, global scalability, and early monetization. We achieve this speed-to-market by forging strategic partnerships with viral creators (influencers) and combining them with what management considers to be established A-list talent, award-winning writers and directors, and top digital creators. We believe this approach allows our team to move decisively, often outpacing traditional studios in bringing compelling content to audiences worldwide. We believe we have identified significant opportunities emerging from the convergence of AI technology and new creator-driven platforms to capitalize on prevailing trends while bringing compelling content to audiences worldwide.

In 2024, as the legacy production services sector continued to contract, we identified major industry shifts driven by the rise of artificial intelligence and the increasing influence of digital creators as mainstream celebrities. Following this shift, we pivoted away from production services to focus on building proprietary content aligned with these trends. To strengthen market leadership and identity, we appointed veteran television executive Chris Philip (Executive Producer of *Sherlock & Daughter,* currently airing on The CW and HBO Max) as Chief Operating Officer, overseeing the Television Division.

We are actively developing and packaging projects with built-in social reach through collaborations with influencers. For example, we are currently developing a fully owned production, *Cancel Me*, a feature film that we intend to produce using AI technology through the whole production workflow and for marketing directly to the social media fanbase. To drive awareness and potential early monetization opportunities, the project is being developed with Adam Rose and is designed to leverage his online presence, which includes 2 million followers on Facebook, 6.8 million followers on TikTok, 6 million followers on YouTube, 8.1 million followers on Instagram, and 1.1 million followers on other platforms such as Twitter, Threads and LinkedIn as of December 31, 2025. Our strategy is to integrate development, packaging, marketing, and production into a more integrated AI driven ecosystem intended to maximize the value of our intellectual property beyond traditional film distribution, including social media marketing campaigns and ancillary online and physical products targeted to digital audiences.

In 2025, we further refined this transition by significantly slowing conventional film production activities and reallocating resources toward the development of our influencer-integrated content model, including the creation of distinct, themed film and television slates. This strategic shift contributed to reduced production volume during the year but was intended to reposition the Company around a cohesive, owner-driven slate strategy. We currently expect to begin launching our next film slate in the second quarter of 2026, alongside a new television slate, incorporating influencer-driven audience engagement, digital reach, and expanded monetization initiatives. There can be no assurance that this strategy will achieve its intended results.

As of December 31, 2025, the report of our independent registered public accounting firm on our financial statements includes an explanatory paragraph regarding our ability to continue as a going concern. The auditor noted that we have incurred recurring net losses, have an accumulated deficit, and will need to raise additional capital to support our operations. These conditions and events raise substantial doubt about our ability to continue as a going concern. We plan to fund our operations through equity financings, debt arrangements, and strategic partnerships; however, there can be no assurance that such funding will be available on acceptable terms, or at all.

**Business Strategy**

AI is projected to become a significant driver of the company's revenue model such as international sales, versioning, and ancillary sales to fans. The company's AI strategy aims to generate initial revenue through the release of films and television series across various U.S. outlets (including theatrical, broadcasting, cable and streaming), followed by the distribution of completed titles to foreign markets. Additional revenue sources include AI driven electronic sell-through ("EST"), which is expected to become a significant driver of our revenue model, as well as international sales, versioning, and ancillary sales to fans.

Under the terms of these arrangements, we are entitled to receive a contractually defined percentage of revenues once the projects generate overages, meaning revenues in excess of agreed recoupment thresholds such as production costs, distribution expenses, or investor returns.

This structure enables us to benefit from potential long-term revenue streams tied to the financial success of these films, even though we do not own the underlying intellectual property. While the magnitude and timing of such revenue are inherently uncertain and contingent upon commercial performance, our management views these participations as an additional source of potential future earnings that complements our strategy of transitioning to a full owner-producer model.

We are actively transitioning to an owner-producer business model. Under this model, all current projects are fully owned by us, with intellectual property rights secured for production. As of the date of this filing, we have packaged four television series, four feature films, and two documentary series, all owned by us and scheduled for development and production beginning in 2026.

For example, our upcoming comedy feature, *Cancel Me*, illustrates our intended AI supported release and monetization strategy. The Company intends to release the U.S. theatrical film upon completion of the project subsequent to the initial public offering using AI to support marketing and distribution. The planned theatrical release will initially include approximately 300 theaters, expanding to approximately 1,000 theaters over several weeks. We view the theatrical release as a lucrative opportunity since it initially offers a strong upside and future marketing advantages. Following the theatrical run, *Cancel Me* is expected to be distributed via AI supported EST, which we anticipate will represent a primary source of revenue as we receive a majority of the proceeds. The film is then intended to be licensed to a major streaming platform.

Outside North America, we plan to market completed films to international distributors and pursue a long-term strategy of adapting our content for local markets as a franchise. In the case of *Cancel Me*, we intend to replicate the concept in the United Kingdom, India, and other territories.

We have also engaged WHTWRKS, a New York-based marketing firm, to secure approximately $500,000 in product integration commitments for *Cancel Me*, which will be received directly by us. In addition, we plan to leverage the fan base of the film's cast through a dedicated marketing campaign, which management anticipates implementing prior to the commencement of principal photography.

This business strategy illustrates how our owner-producer model integrates multiple revenue streams, including theatrical exhibition, EST, streaming licensing, international distribution, franchising, sponsorships, and ancillary fan-related sales.

In addition to our internal capabilities, we benefit from the relationships and industry experience of our Chief Operating Officer, Chief Executive Officer, and Board members, which collectively provide meaningful direct access to leading streaming platforms, studios, and distributors worldwide. We believe this access represents a key competitive advantage as we transition to an owner-producer model.

We are actively exploring potential future opportunities to enhance fan engagement and the overall fan experience in connection with influencer-driven content. This includes preliminary discussions with various companies and executives regarding the potential use of digital assets to deliver unique fan experiences by offering exclusive content. These discussions are exploratory in nature and are limited to non-financial fan engagement concepts. They are intended solely to test ideas and assess fan response to marketing communications and engagement strategies, and do not involve financial transactions, investment opportunities, or participatory investment activities.

In the long term, we envision a potential model in which content could be financed and distributed directly to fans, bypassing traditional studios, EST, or streaming channels. This concept remains at a preliminary stage, and we have not yet determined whether or when such a model may be implemented.

● **Leadership Relationships:** 

○ *Kirk Shaw (Chief Executive Officer, Film)* has produced more than 250 feature films and brings long-standing relationships with U.S. and international distributors across both theatrical and digital markets.

○ *Chris Philip (Chief Operating Officer, Television)* leverages extensive television industry experience and active relationships with major streamers. Through his prior role, Mr. Philip was directly involved in the development and launch of *Sherlock and Daughter*, currently airing on The CW and HBO Max.

● **Board-Level Access Support:** 

We have also strengthened our ability to access global buyers through our Board nominees. The involvement of Mr. Philip, Mr. Shaw, and the Board provides Ambitious with direct pathways to present content to all major streaming services. This network enhances our ability to secure distribution agreements for both current projects (*Cancel Me* and *Tehk City*) as well as future productions.

*The Ambitious Model Reduces Risk*

● Content marketing accelerator: Merges traditional and digital media.

● Maximizes efficiency: influencer promotion boosts reach without ad spend.

● Keeps costs low: Utilizes tax incentives and traditional pre-sales when advantageous.

● Innovative tech: Avoids outdated studio models with large upfront investments.

● Global content strategy: Unlocks multiple global revenue streams.

● Lean, high-margin model: Focused on profitability and scalability from day one.

 ****

***Artificial Intelligence Platform***

 

Looking to the very near future, we expect that technology, particularly Artificial Intelligence (AI), will be a cornerstone of our overall production strategy and operational efficiency. The emphasis on AI reflects our team's ongoing efforts to integrate new technology across development, production, and post-production workflows with the goal of improving efficiency, reducing costs, and enhancing creative decision-making. We believe AI allows a company to truly support a creator's vision by implementing production cost savings and offering new direct to consumer distribution options.

While development remains ongoing and implementation timelines may evolve, the team believes this initiative is positioned to strengthen our competitive position and support scalable growth across our owned and controlled content slate. In connection with the pre-production of *Cancel Me*, we utilized internally developed AI-assisted production planning software. The software analyzes inputs such as the screenplay, preliminary budget assumptions, and production parameters (including locations, scene requirements, and scheduling considerations) and generates suggested production plans. These suggestions may include potential shooting schedules, location groupings, and resource allocation scenarios intended to help identify efficiencies during the planning stage. The AI tools were used as a decision-support tool during pre-production, with final production decisions made by the Company's production team. This includes AI-supported pre-production software for rapid script analysis, virtual location scouting, and automated shot list generation to reduce planning time. During production, AI implements machine learning algorithms to monitor in real-time and forecast costs to optimize resource allocation. In post-production, AI will support our visual effects ("VFX") and automation directly through new tools for rotoscoping, background rendering, and color grading to cut VFX costs while maintaining or surpassing prior creative quality.

The company has already dedicated two years of R&D into AI, actively defining significant opportunities targeting formal integration by Q3 2026. Our upcoming film *Cancel Me* already serves as a proof-of-concept, validating the AI-driven pre-production pipeline to reduce expenses and enhance creativity. These scalable savings are expected to translate to broader margins across all future productions. Once proven internally, the company's AI software becomes a marketable commodity for sale or as an ongoing subscription service to other producers and production companies. This creates an additional revenue stream.

*Influencers as Partners*

The evolving creator economy presents a particularly compelling opportunity for us. Audiences are increasingly engaging with content directly from personalities they trust, bypassing traditional gatekeepers. This shift is not just cultural; it's proving highly lucrative. A prime example is the film *Iron Lung*, produced for approximately $3 million based on a game made by a prominent online creator. According to NBC News and IMDB, *Iron Lung* has generated an impressive $46.5 million in revenue from self-distribution online, demonstrating the powerful economic model inherent in influencer-driven content. We intend to use the marketing power of these influencers to market direct to consumer and share significant profit with them. We are actively developing strategies that parallel and amplify this successful approach, building scalable media production and distribution models around authentic creator partnerships.

We bridge the gap between viral digital creators and mainstream media, offering influencers a clear path from social platforms into film, streaming, and television. While the past decade celebrated the rise of influencers, most lack experience in production and IP, which is where we step in as the creative and strategic partner they have been waiting for.

We empower influencers to co-create and co-own original IP, turning them into executive producers who not only star in content but also promote it to millions. With built-in reach, our projects skip traditional marketing cycles and massive ad budgets; our IP stories spread organically through trusted voices.

Unlike traditional series that spend millions on marketing to attract tens of thousands of viewers, our influencer partners achieve millions of views with just a phone, a wall, and a mic. Fans trust their favorite creators far more than conventional advertisements.

Our partner Adam Rose, for example, generates millions of views per post on Instagram, Facebook, and YouTube. Alongside Adam, we are working with a slate of top-tier influencers to co-develop culturally resonant stories that match their voice and audience, transforming every project into a launchpad with viral potential and built-in promotion.

*Cancel Me – Shooting September 2026 for a 2027 Theatrical Release*

Cancel Me is our upcoming social media influencer comedy developed with viral sensation Adam Rose, who brings his 24 million followers to the project. He is joined by six mega influencers with a combined reach of over 450 million impressions. Even before production begins, we anticipate the film will generate major buzz, brand interest, and fan engagement.

This film exemplifies our model of building high-potential IP that management believes can deliver outsized returns as a smart, culturally relevant comedy with wide audience appeal. We also plan to franchise the concept globally, adapting it into multiple languages using local influencers to extend reach and impact.

Designed as both a movie and a digital event, Cancel Me unlocks new revenue streams through sponsorships, merchandise, and viral campaigns. It is built to scale and monetize from day one, and that is just the beginning.

 

*Multiple New Revenue Streams*

In addition to traditional revenues from development, production, and distribution fees, viral-driven films like *Cancel Me* unlock powerful new monetization opportunities including merchandise, triple distribution (theatrical, streaming, digital), global franchising with local adaptations, social media-driven marketing, brand collaborations (e.g., coffee partnerships), IP-based products such as toys and collectibles, token-based transactions enabling direct fan purchases and micro-investments, fan engagement perks (early access, content participation, set visits), subscription models for behind-the-scenes access, and revenue sharing reinvested to fund new projects.

Each IP thus becomes a multi-lane highway for revenue: fast to market, global in reach, and built to scale. This is how we redefine the meaning of a "hit."

*Influencer-Driven Financing & Distribution Strategy*

We are launching a dedicated division to unlock new financing and distribution opportunities through partnerships with whom management considers to be top online influencers. These creators routinely reach audiences rivalling or exceeding those of the highest-rated U.S. TV programs while remaining an underutilized force in long-form content monetization.

For context, while the 2025 Super Bowl and Oscars attracted 127.7 million and 19.5 million viewers respectively, according to *Variety Magazine*, leading influencers engage comparable or larger audiences weekly.

We will allocate part of our capital to build long-term partnerships with major platforms like TikTok, Instagram, and X, aiming to co-develop branded content, secure distribution deals, and premiere original projects directly on these platforms. Additionally, we plan to franchise content globally by collaborating with influencers in different languages and regions.

***Multi-Platform Monetization Strategy (with Micro-Dramas)***

Our monetization approach is structured around sequential distribution windows designed to maximize revenue potential for each project, including traditional films and television series, as well as short-form, mobile-first content such as micro-dramas (also referred to as vertical dramas).

According to third-party industry research from Media Partners Asia (*The Micro-Drama Economy*), the global micro-drama market outside China generated approximately $1.4 billion in revenue in 2024 and is estimated to reach approximately $9.5 billion by 2030, representing a compound annual growth rate of approximately 28.4%. The report further indicates that the United States accounted for approximately $819 million of revenue in 2024 and may grow to approximately $3.8 billion by 2030.

We intend to develop and distribute micro-drama content as part of our multi-platform strategy, leveraging digital-first marketing, influencer collaboration, and pay-as-you-watch subscription models. Management believes this format allows for faster content release cycles, rapid audience engagement, and scalability across global markets.

**Recent Productions**

The projects discussed below demonstrate a range of strategically planned releases.

*All My Friends are Dead*

Ambitious' 2024 release of *All My Friends are Dead* highlights the model for influencer-driven digital releases. It starts with compelling, timely creative in a marketable niche. In this case, it is a revenge-based slasher horror story where a group of college friends are hunted at a music festival after cyberbullying their peer. A prominent influencer is attached to amplify reach. Capitalizing on this influence and on the heels of its success at the 2024 Tribeca Film Festival, the film was released in select U.S. theaters and across major digital platforms within 2 months of the Tribeca Film Festival.

*Cancel Me - Production Subsequent to IPO*

*Cancel Me* is an ambitious satirical comedy currently in development and intended to be financed and produced following the completion of our initial public offering. Designed for digitally native audiences, the film explores the absurdities of internet fame and cancel culture. The story follows an anxiety-ridden recluse who accidentally becomes a viral social media sensation. Thrust into a spotlight he never sought, he spirals as his every move is scrutinized by millions online. In an attempt to escape his newfound notoriety, he devises an outrageous plan to sabotage his own fame—only to discover that going viral for all the wrong reasons is still going viral.

 

We intend to attach a major social media influencer to extend the film's reach and cultural relevance. If produced, *Cancel Me* is expected to appeal to both comedy audiences and viewers drawn to timely social commentary. Production, casting, festival strategy, and distribution timing have not yet been finalized and will depend on the Company's financing and production schedule following the IPO.

*Sundown Town – Production Starts 2026*

Written by Moses Lassiter, *Sundown Town* follows a Black Civil War veteran and his family as they journey west in search of freedom—but find themselves trapped in a town where the American dream rots in the shadows. Beneath its quiet facade, white townsfolk hide a monstrous secret: they are vampires who feast on Black blood. With the help of a Native American outcast who knows the land's darker history, the family must outwit the predators and reclaim their future. *Sundown Town* blends slow-burn tension with supernatural threat in a uniquely American horror tale.

 

*Operation Gladio: The Unholy Alliance Between the Vatican, the CIA, and the Mafia – Production Starts 2026*

Written by Nick Torokvei, *Operation Gladio* is set in the shadowy aftermath of World War II and follows a covert alliance between the CIA, the Vatican, and the Sicilian and American mafias as they wage a clandestine campaign to stop the spread of communism in Europe—by any means necessary. Against the fractured backdrop of postwar Italy and France, the story unfolds like a ticking time bomb: assassinations masked as accidents, secret armies hidden in plain sight, and democratic governments manipulated like puppets. A conspiracy thriller rooted in historical truth, *Operation Gladio* explores a world where the line between liberation and occupation is drawn in blood.

*Tehk City – Production Starts 2026*

Starring Snoop Dogg, Ice-T, Busta Rhymes, and Arabian Prince, *Tehk City* is an animated series set in a lawless experimental city sealed off from the outside world, where power is currency, and survival is never guaranteed. As competing factions battle for control, a ruthless mayor tries to maintain order, but the rise of an experimental drug threatens to upend the fragile balance. *Tehk City* is a gritty, stylized crime saga where every alliance is a gamble—and the house always plays dirty.

*Austin Grant from Scotland Yard – Production Starts 2026*

*The Seed – Production Starts 2026*

*Bling – Production Starts 2026*

*Act of God - Production Starts 2027*

Following a catastrophic explosion on a Los Angeles metro train, a brilliant but tormented corporate lawyer, who is haunted by personal loss, makes the audacious argument the metro crash was an act of God to defend his company, NeoTrak. Meanwhile, a ruthless news executive fuels a terrorist narrative for ratings while a cunning mayor seizes the tragedy to bolster his political ambitions. Their clashing agendas ignite a high-stakes battle over the truth, where secrets unravel and motives collide in a city on edge. Down on the streets, a disgraced detective makes a chilling discovery about one of the people who died on the train.

*Women of Illusion – Production Starts 2026*

Hosted by Chris Angell, *Women of Illusion* is a documentary series that uncovers how cunning women throughout history, from Cold War spies to medieval power players, have used deception to reshape the course of events.

 

*TIC – Production Starts 2026*

Featuring Billy Eilish, Tim Howard, Lewis Capaldi, and Baylen Dupree, *TIC* is a documentary feature that offers an intimate, character-driven look into the lives of four individuals living with Tourette's Syndrome. Through raw honesty, vulnerability, and unexpected humor, the film explores the daily challenges, quiet triumphs, and complex beauty of navigating a condition that is still widely misunderstood. TIC reveals how Tourette's can be both a burden and a hidden gift.

*Guns of Redemption – Completed Production 2025*

*Guns of Redemption* is a gritty, high-stakes Western that explores the cost of escape from a violent past. The story follows a scarred and battle-weary gunslinger who has tried to walk away from a life defined by bloodshed. But when a brutal ambush leaves him near death, he's forced to strap on his guns one last time for a final mission of reckoning. Set against the unforgiving backdrop of the American frontier, *Guns of Redemption* is a story of survival, justice, and the thin line between vengeance and redemption. With a moody tone and cinematic intensity, the film brings classic Western grit into a modern narrative of inner conflict and ultimate sacrifice.

*Gunslingers – Completed Production 2025*

Directed and written by Brian Skiba, *Gunslingers* is a gritty, character-driven Western set in the lawless frontier town of Redemption. The story follows Keller, a reformed gunslinger, and Ben, a volatile genius, as they seek inner peace under the guidance of enigmatic spiritual leader Jericho. But as the men attempt to reconcile with their violent pasts, the fragile calm is shattered by vengeance, forcing them to choose between the peace they have found and the bloodshed they left behind. Starring Stephen Dorff, Heather Graham, and Nicolas Cage, *Gunslingers* explores themes of redemption, loyalty, and the high price of justice in a world where the past never stays buried.

In addition to the above, the Company has also completed and scheduled the release of *Viper* (expected April 2026).

**Divisions Overview**

*Feature Film* 

The Film division is central to the company's growth strategy, guided by a clear desire to establish a distinct and respected position in the market. We are encouraged by the successful models of companies like A24 and Neon, known for their consistent curation of high-quality, compelling stories. Our goal is to build a similar reputation for excellence, focusing on commercially viable films with strong artistic merit through a themed production slate. To achieve this efficiently and mitigate financial risk, we employ a strategic slate production process. This involves identifying groups of projects with complementary commercial appeal, packaging them together, and marketing these as cohesive similarly themed units. This method allows us to create a systematic pipeline of market-ready films, series, and documentaries, enabling resource allocation across multiple projects rather than relying on the uncertain outcome of individual productions. This approach significantly reduces per-project risk and accelerates our economy of scale.

Supporting this slate strategy, we are actively pursuing key partnerships. This includes developing relationships with established domestic distributors and specialized financing partners. These collaborations are designed to provide the necessary resources and creative freedom to produce films that embody the quality and distinctiveness associated with leading independent studios. Following this offering, we plan to initiate specific slate partnerships that combine distributor backing with dedicated funds, empowering us to consistently develop and produce these higher-caliber projects. Our production strategy also integrates our core competency in influencer engagement and emerging distribution channels. Currently, our development pipeline is robust, with ten films actively preparing for production and delivery in 2026. We have already premiered a recent theatrical release and currently have one feature film, *Cancel Me, greenlit for immediate production starting in 2026.*

*TV Division*

Cost-conscious productions, mitigating risk from global pre-sales and attaching influencers as marketing partners bringing their power to help negotiate better deals resulting in additional direct to consumer revenue.

The team will leverage deep industry experience to cultivate strong, ongoing relationships with major networks and streamers. This foundation allows us to quickly adapt original intellectual property (IP) for diverse audiences across online platforms and traditional broadcast in North America and worldwide. We are also strategically focused on developing scalable series franchises with inherent global appeal by actively targeting key international markets. This strong commitment to franchising IP ensures our content resonates across borders and for years to come. To achieve this vision, we have established a robust development pipeline featuring TV series designed for both domestic impact and international scalability, whether streamed or broadcast online. Already in the pipeline are series from creators/writers on Burn Notice, Dexter, Sopranos, Bosch, Designated Survivor. Chief Operating Officer Chris Philip has produced series for Amazon, HBO Max, CW, Netflix, NBC and SyFy.

*Docu-series Division*

We actively develop and sell premium documentary series that tap into cultural conversations, untold stories, and compelling characters. Partnering with experienced filmmakers and streaming platforms, we create story-driven nonfiction content with global appeal and multi-platform potential to inform, entertain, and impact. We have developed five documentary series, including Snowblind and the Murder Behind the Cotton Club Movie.

**Industry Overview**

**Global Growth Trend**

The global media and entertainment industry is undergoing rapid transformation and expansion. According to market analysts, the sector is projected to grow at a compound annual growth rate (CAGR) of 20.4% between 2024 and 2027. This growth is driven by:

● The proliferation of streaming platforms and mobile-first entertainment.

● Global demand for localized and original content.

● Expansion of internet access and connected devices, especially in emerging markets.

This dynamic growth underscores the long-term value of IP creation and content ownership, as streaming services have overtaken traditional Pay TV.

As highlighted below, recent media reports support continued market growth:

Global Streaming Market & Media Industry Projections

● The global video streaming market is projected to reach $184.3 billion by 2027, growing at a CAGR of 20.4% from 2020 to 2027. (Businesswire, <u>https://www.businesswire.com/news/home/20200515005420/en/Global-Video-Streaming-Market-Forecast-to-Reach-USD-184.3-Billion-by-2027-Registering-a-CAGR-of-20.4—ResearchAndMarkets.com</u>)

● The broader global entertainment & media (E&M) industry is expected to grow at a CAGR of 3.7%, reaching approximately $3.5 trillion by 2029. (TV Tech, <u>https://www.tvtechnology.com/news/study-global-m-and-e-industry-revenue-to-hit-usd3-5-trillion-by-2029</u>)

U.S. Streaming & Pay TV Adoption

● In 2021, for the first time, a higher share of U.S. households subscribed to streaming (69%) than to traditional pay-TV (65%). (Tinuiti, <u>https://tinuiti.com/blog/ott-ads/streaming-video-statistics/</u>)

● As of 2025, approximately 83% of U.S. households have at least one streaming service, which aligns with the broader data showing high subscription video-on-demand (SVOD) penetration. (Exploding Topics, <u>https://explodingtopics.com/blog/video-streaming-stats</u>)

Content Spending Estimates:

Netflix (We have had three of our movies distributed on Netflix)

● Netflix plans to spend approximately $18 billion on content in 2025, up from $16.2 billion the prior year. (The Verge, <u>https://www.theverge.com/news/626102/netflix-18-billion-content-spending</u>)

Amazon (We have had three of our movies distributed on Amazon)

● In 2023, Amazon's content spending, which includes video and music, increased 14% to $18.9 billion. (Cord Cutters News, <u>https://cordcuttersnews.com/amazon-spent-almost-19-billion-on-content-in-2023</u>)

● For 2024, *The Information* reported that Amazon's total budget, which includes originals, licensed content, and live sports, was approximately $7 billion. (Reuters, <u>https://www.reuters.com/business/media-telecom/amazon-prime-video-shifts-focus-live-sports-boost-profits-information-reports-2025-01-24/</u>)

**Platform Estimated Spend in 2024**

● Netflix: $16 billion (Variety, 2024)

● Amazon: $7 billion (excludes MGM/live sports) (The Information via Reuters, 2024)

● Hulu: $3 billion (eMarketer, Insider Intelligence, 2024)

● HBO Max: $1 billion (Warner Bros. Discovery earnings call, Q1 2024)

In 2023, Amazon's total content spend, including Prime Video, MGM, Freevee, and live sports, was approximately $18.9 billion (The Wrap, <u>https://www.thewrap.com/amazon-content-spend-2023</u>). As of 2025, Netflix's content spending increased to approximately $18 billion (The Verge, <u>https://www.theverge.com/news/626102/netflix-18-billion-content-spending</u>). The shift toward ad-supported content (AVOD) means platforms are more open to lower-cost, high-return content formats: short-form, docuseries, and lower-budget scripted fare.

Management's expectations are based in part on industry reports and the Company's analysis of market trends.

**Competition**

The film and television industry is intensely competitive and rapidly evolving, driven by technology, shifting viewer habits, and global demand.

Major studios like Disney, Universal, and Warner Bros. dominate with vast IP libraries, global marketing power, and established distribution. Streaming platforms have become central to content distribution, with Netflix leading and reporting over 260 million subscribers and an estimated content budget of approximately $18 billion in 2025<sup>1</sup>, Amazon Prime Video's content budget was estimated at over $7 billion for 2024<sup>2</sup>. Other major platforms include Disney+, Hulu, HBO Max, Apple TV, among others. These services are backed by advanced data analytics, personalization, and ecosystem control. The growth in ad-supported video-on-demand (AVOD) and free ad-supported streaming television (FAST) services has added further fragmentation and pricing pressure.

Most competitors are larger, better funded, and vertically integrated, with access to top talent and global reach. Independent companies like ours compete by focusing on:

● Original storytelling and unique IP

● Niche audiences and partnerships

● Agile production and creative financing

In today's landscape, success depends not just on content but on our ability to adapt, market smartly, and form strategic alliances across streaming and theatrical platforms.

The Company's strategic model includes attaching influencers as producers to select projects, enabling a direct-to-consumer promotional approach and reducing reliance on traditional advertising. This model capitalizes on the influencers' established audiences to drive early awareness, engagement, and monetization of content. According to a 2024 Nielsen Influence Marketing Report, approximately 92% of consumers trust influencer recommendations over traditional advertising, and influencer-led campaigns generate up to 11 times the return on investment compared to standard digital media buys. The Company believes this strategy provides a competitive advantage by creating organic demand, lowering customer acquisition costs, and enhancing the visibility and commercial success of its premium content.

**Our Competitive Advantage**

*Story to Screen IP Pipeline*

Our competitive advantage lies in knowing how to develop and package IP into scalable, high-demand content with viral market value.

Ambitious secures top-tier creative talent, including popular online influencers, to develop fully market-ready pitch packages—complete with scripts and director's visions – positioned for rapid sale and production. Some projects arrive with a showrunner attached, similar to how *Dexter* was developed. For others, Ambitious hand-selects the ideal showrunner and director to bring the concept and characters to life. Our team then crafts compelling pitch decks that showcase the creative vision and commercial potential.

These packages are actively pitched in one-on-one meetings with top streamers and studios, aiming for direct sales or co-production deals. Upon sale, Ambitious recoups development costs and earns additional fees for production, distribution, and backend profits.

Most capital raised will be directed toward acquiring and developing multiple new IPs into high-value, pitch-ready packages. For high-return opportunities selected by the team and advisory board, Ambitious will fully produce and distribute these projects in-house to maximize profit.

<sup>1</sup> The Verge, "Netflix to Spend $18 Billion on Content in 2023," available at https://www.theverge.com/news/626102/netflix-18-billion-content-spending.

<sup>2</sup> Reuters, "Amazon Prime Video Shifts Focus to Live Sports to Boost Profits," available at https://www.reuters.com/business/media-telecom/amazon-prime-video-shifts-focus-live-sports-boost-profits-information-reports-2025-01-24/.

 

*Team*

**Kirk Shaw – Chief Executive Officer**

With over 30 years of experience, Kirk has produced more than 270 feature films and TV series. He has served as CEO and board member of multiple public companies and remains a driving force in independent film and television. A key player behind *The Hurt Locker* and founder of Insight Studios – Canada's largest indie production house – Kirk brings global reach and hands-on leadership to every project.

**Chris Philip – Chief Operating Officer**

A seasoned global entertainment executive, Chris has produced acclaimed series including *Sherlock and Daughter* and *Departure*. A Golden Palm winner at the Beverly Hills Film Festival, he formerly served as VP of NBC Universal International, leading worldwide TV and film distribution. His career includes senior roles at Televisa USA, Power TV (London), Electus-Engine, and co-founding Engine Entertainment.

**George Furla – Executive Producer**

With a 30-year career and over 100 films produced, George is known for major films like Rambo, Lone Survivor, and Escape Plan.

**Recent Developments**

*Bridge Financing*

In April 2026, the Company entered into four Securities Purchase Agreements with accredited investors pursuant to which the Company agreed to sell an aggregate of thirteen (13) Units (the "Bridge Financing"). Each Unit is priced at $32,000 and consists of (i) 10,000 shares of the Company's Series A Convertible Preferred Stock, par value $0.0001 per share, and (ii) warrants to purchase 10,000 shares of the Company's common stock at an exercise price set forth in the warrant with a term of three years from the date of issuance.

The Company received $96,000 in cash from the sale of three (3) Units. In addition, an existing note holder, Roots Properties Inc., used $320,000 of outstanding principal under a note payable to purchase ten (10) Units, which was accounted for as a non-cash financing transaction and resulted in a corresponding reduction of the Company's indebtedness.

Three of the investors in the Bridge Financing are adult children of Kirk Shaw, the Company's Chief Executive Officer. In addition, Roots Properties Inc. is an entity for which Mr. Shaw serves as President. Accordingly, these transactions constitute related party transactions.

The securities issued in the Bridge Financing were offered and sold in reliance on the exemption from the registration requirements of the Securities Act of 1933, as amended, provided by Section 4(a)(2) thereof and Rule 506(b) of Regulation D promulgated thereunder, as transactions not involving a public offering. The investors have represented that they are accredited investors as defined in Rule 501 of Regulation D.

*A&G Entertainment Limited*

On January 5, 2026, we, together with Gamma Interactive Inc. ("Gamma Interactive"), formed A&G Entertainment Limited ("A&G"), a Hong Kong corporation. Gamma interactive is a production and technology company incorporated in Delaware in 2017 focused on next-generation content and software development across gaming, extended reality (XR), mobile and web applications and Web 3.0 technologies. We acquired 55% of the issued and outstanding shares of A&G and Gamma Interactive acquired the remaining 45%, each at a price of HK$1.00 per share. We believe that the formation of this company with Gamma Interactive will enhance our capabilities in immersive entertainment, interactive media production, and global business development opportunities.

**Intellectual Property**

As a general practice, we will rely upon patent, copyright, trademark, and trade secret laws to protect and maintain our proprietary rights for our products. There are no inherent factors or circumstances associated with this industry, or any of the products or services that we expect to be providing, that would give rise to any patent, trademark, or license infringements or violations. We have not entered into any franchise agreements or other contracts that have created or could create obligations or concessions. Our web domain and IP address, as well as company information, will be protected by our domain host. We do not own, either legally or beneficially, any patents or trademarks.

**Government Regulation**

We are aware that the cost of producing and distributing filmed entertainment has increased substantially in recent years. This is due, among other things, to the increasing demands of creative talent as well as industry-wide collective bargaining agreements. Many screenplay writers, performers, directors, and technical personnel in the entertainment industry who will be involved in our productions are members of guilds or unions that bargain collectively on an industry-wide basis. We have found that actions by these guilds or unions can result in increased costs of production and can occasionally disrupt production operations. If such actions impede our ability to operate or produce a motion picture, it may substantially harm our ability to earn revenue and result in our business failing.

We are also subject to state and federal work and safety laws and disclosure obligations, under the jurisdiction of the U.S. Occupational Safety and Health Administration and similar state organizations. We intend to use non-unionized talent whenever possible to reduce our costs of production. Notwithstanding, many individuals associated with our productions, including actors, writers, and directors, will be members of guilds or unions that bargain collectively with producers on an industry-wide basis from time to time. Our operations will be dependent upon our compliance with the provisions of collective bargaining agreements governing relationships with these guilds and unions. Strikes or other work stoppages by members of these unions could delay or disrupt our activities. The extent to which the existence of collective bargaining agreements may affect us in the future is not currently known.

Further, with regard to digital content developed for children, a variety of laws and regulations have been adopted in recent years aimed at protecting children using the internet, such as the U.S. Children's Online Privacy Protection Act and the rules promulgated by the U.S. Federal Trade Commission thereunder (COPPA). COPPA sets forth, among other things, a number of restrictions on what website operators can present to children under the age of 13 and what information can be collected from them.

**Summary of Risk Factors**

Below is a summary of material factors that make an investment in our securities speculative or risky. This summary may not address all of the risks and uncertainties that we face. Additional discussion of the risks and uncertainties summarized in this risk factor summary, as well as other risks and uncertainties that we face, can be found under the section titled "Risk Factors" in this prospectus. The summary below is qualified in its entirety by that more complete discussion of such risks and uncertainties. You should carefully consider the risks and uncertainties described under the section titled "Risk Factors" as part of your evaluation of an investment in our securities:

● Our independent registered public accounting firm has expressed substantial doubt about our ability to continue as a going concern, and we may not be able to continue operations without additional financing.

● Our limited operating history makes it difficult to evaluate our business and prospects and may increase the risks associated with your investment.

● The loss of key personnel or the inability of replacements to quickly and successfully perform in their new roles could adversely affect our business.

● Our management team has limited experience managing a public company.

● Our IP content packaging business requires minimal investment of capital ranging from $20,000 to $150,000. However, failure to complete a sale into the market will have adverse effects on the results of operation for the individual project's development investment.

● We may not be able to compete with larger studios such as Sony, Warner Brothers and Paramount the majority of whom have greater resources than we currently have.

● Our IP content creation business is dependent upon the success of six to eight film releases, two to three series, to theatrical, linear and digital media streaming sites in any one year and the unexpected commercial failure of any one of them could have a material adverse effect on our financial results and cash flows. Ninety percent of our revenue will be derived from the IP content creation.

● Our lack of diversification may make us vulnerable to oversupply in the market.

● Our operating results depend on product costs, public tastes and promotion success.

● One or two of our contemplated projects may not be accepted by distributors and/or the marketplace and our business may fail as a direct result of such lack of market acceptance.

● Our future success depends on our ability to develop and package new series and movies to sell them to streaming sites, movie studios and distribution channels. The inability to target IP for current market tastes can limit our growth prospects.

● We rely on relationships with online digital streaming platforms to distribute and monetize our content, and we do not currently have long-term distribution agreements in place. Because we are dependent on successfully negotiating individual transactions, we may be unable to secure distribution for our content on commercially acceptable terms, or at all.

● Because of the speculative nature of our business, future operating results are difficult to predict and dependent on external factors.

● Technological advances may reduce demand for films.

● A decline in the popularity of entertainment, film and leisure activities could adversely impact our business.

● It is possible that our IP projects may infringe on other copyrighted concepts. Litigation arising out of infringement or other commercial disputes could cause us to incur expenses and impair our competitive advantage.

● Failure to manage our growth effectively could cause our business to suffer and have an adverse effect on our financial condition and operating results.

● We may experience fluctuations in our operating results, which could make our future operating results difficult to predict or cause our operating results to fall below analysts' and investors' expectations.

● As our costs increase, we may not be able to generate sufficient revenue to sustain profitability.

● Servicing our debt will require a significant amount of cash, and we may not have sufficient cash flow from our business to pay our debt.

● We could become involved in litigation matters that may be expensive and time-consuming, and, if resolved adversely, could harm our business, financial condition, or results of operations.

● If we fail to protect our intellectual property and proprietary rights adequately, our business could be adversely affected.

● We rely on information technology systems and could face cybersecurity risks.

● We have risks related to the development and implementation of our artificial intelligence platform.

● A significant portion of our revenue in a given period may be derived from a limited number of customers or projects, and the completion or loss of any such project could adversely impact our results of operations.

● We are transitioning away from production service work to focus on developing and producing our own intellectual property, which exposes us to new risks and uncertainties.

● The exclusive forum selection provision in our bylaws could limit stockholders' ability to choose a judicial forum.

● Investors in this offering will experience immediate and substantial dilution in net tangible book value.

● There can be no assurance that our shares will be listed on the NYSE American and, if they are, our shares will be subject to potential delisting if we do not meet or continue to maintain the listing requirements of the NYSE American.

● There has been no prior public trading market for our shares and an active trading market may not develop or be sustained following this offering.

● The trading price of shares of our common stock could be volatile, and you could lose all or part of your investment.

● If our shares were to be delisted from the NYSE American, they may become subject to the SEC's "penny stock" rules, in which case broker-dealers may be discouraged from effecting transactions in our shares.

● There may be future issuances or resales of shares of our common stock in connection with financings, acquisitions, investments, our stock incentive plans or otherwise, which may materially and adversely dilute the ownership interest of stockholders.

● We may issue shares of preferred stock, the terms of which could adversely affect the voting power or value of our common stock.

● If securities analysts were to downgrade our stock, publish negative research or reports or fail to publish reports about our business, our competitive position could suffer, and our stock price and trading volume could decline.

● The requirements of being a public company, including compliance with the reporting requirements of the Exchange Act, and the requirements of the Sarbanes-Oxley Act, may strain our resources, increase our costs and divert management's attention, and we may be unable to comply with these requirements in a timely or cost-effective manner.

● Our internal control over financial reporting may not be effective and our independent registered public accounting firm may not be able to certify as to its effectiveness in the future, which could have a significant and adverse effect on our business, financial condition, results of operations and reputation.

● Management will have broad discretion over the use of our proceeds from this offering.

● We do not anticipate that we will pay dividends on our common stock and, consequently, your ability to achieve a return on your investment will depend on appreciation in the price of our common stock.

● Anti-takeover effects of certain provisions of Nevada state law may hinder a potential takeover of us.

● Our officers, directors and principal stockholders currently own a substantial number of shares of our common stock and have, and following the offering will continue to have, the power to significantly influence the vote on all matters submitted to a vote of our stockholders.

● For as long as we are an emerging growth company, we will not be required to comply with certain requirements that apply to other public companies.

● We are a "smaller reporting company" and, even if we no longer qualify as an emerging growth company, we may still be subject to reduced reporting requirements.

● Sales of a substantial number of shares of our common stock following this offering may adversely affect the market price of our common stock, and the issuance of additional shares will dilute all other stockholders.

**Implications of Being an Emerging Growth Company**

We are an "emerging growth company" as defined in Section 2(a) of the Securities Act of 1933, as amended (the Securities Act). For as long as we are an emerging growth company, we will not be required to:

● provide an auditor's attestation report on management's assessment of the effectiveness of our system of internal control over financial reporting pursuant to Section 404(b) of the Sarbanes-Oxley Act of 2002 (the "Sarbanes-Oxley Act");

● provide more than two years of audited financial statements and related management's discussion and analysis of financial condition and results of operations;

● comply with any new requirements adopted by the Public Company Accounting Oversight Board (the "PCAOB") requiring mandatory audit firm rotation or a supplement to the auditor's report in which the auditor would be required to provide additional information about the audit and the financial statements of the issuer;

● provide certain disclosure regarding executive compensation required of larger public companies or hold stockholder advisory votes on the executive compensation required by the Dodd-Frank Wall Street Reform and Consumer Protection Act (the "Dodd-Frank Act"), or

● obtain stockholder approval of any golden parachute payments not previously approved.

We will cease to be an emerging growth company upon the earliest of the following:

● the last day of the fiscal year in which we have $1.235 billion or more in total annual gross revenues;

● the date on which we become a "large accelerated filer" (the fiscal year-end on which the total market value of our common equity securities held by non-affiliates is $700 million or more);

● the date on which we issue more than $1.0 billion of non-convertible debt over a three-year period, or

● the last day of the fiscal year following the fifth anniversary of our initial public offering.

We have elected to take advantage of certain of the reduced disclosure obligations in this prospectus, and may elect to take advantage of other reduced reporting requirements in future filings. As a result, the information that we provide to our stockholders may be different from what you might receive from other public reporting companies.

In addition, "emerging growth company" may take advantage of the extended transition period provided in Section 7(a)(2)(B) of the Securities Act for complying with new or revised accounting standards. In other words, an "emerging growth company" can delay the adoption of certain accounting standards until those standards would otherwise apply to private companies.

**Implications of Being a Smaller Reporting Company**

We are a "smaller reporting company" as defined in Item 10(f)(1) of Regulation S-K. Smaller reporting companies may take advantage of certain reduced disclosure obligations, including, among other things, providing only two years of audited financial statements. We will remain a smaller reporting company until the last day of any fiscal year for so long as either: (i) the market value of our shares of common stock held by non-affiliates does not equal or exceed $250 million as of the prior June 30; or (ii) our annual revenues did not equal or exceed $100 million during such completed fiscal year. To the extent we take advantage of such reduced disclosure obligations, it may also make comparison of our financial statements with other public companies difficult or impossible.

**Corporate Information**

Our principal executive offices are located at 112 W 6th Avenue, Vancouver, British Columbia V5Y 1K6, Canada. Our telephone number is (604) 218-3374. The address of our website is www.ambitious.tv. The inclusion of our website address in this prospectus does not include or incorporate by reference the information on our website into this prospectus.

**The Offering**

The following is a summary of certain terms of this offering.

 Although we have not yet determined with certainty the manner in which we will allocate the net proceeds of this offering, we expect to use the net proceeds from this offering for working capital, offering expenses, and other general corporate purposes. We may also use a portion of the proceeds from this offering to acquire or invest in additional intellectual property and to expand our development pipeline. We have not allocated specific amounts of net proceeds for any of these purposes. See "Use of Proceeds".

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| **Representative's Warrants:** | We have agreed to issue to the representative of the underwriters or its designees at the closing of this offering, warrants to purchase the number of shares of our common stock equal to 5% of the aggregate number of shares sold in this offering, including any shares of our common stock sold pursuant to the underwriters' over-allotment option (the "Representative's Warrants"). The Representative's Warrants will be exercisable at any time and from time to time, in whole or in part, during the four-and-a-half-year period commencing six months after the commencement of sales in this offering. The exercise price of the Representative's Warrants will equal 125% of the initial public offering price per share, subject to adjustments. See "Underwriting". |
| **NYSE Trading Symbol:** | We intend to apply have the shares of our common stock offered hereby listed on the NYSE American under the symbol "___". No assurance can be given that our application will be approved. We will not proceed with this offering in the event shares of our common stock are not approved for listing on the NYSE American. |

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(1) The
 number of shares that will be outstanding after this offering is based on 15,712,900 shares of common stock outstanding as
 of April 1, 2026, but excludes:

● 130,000 shares of our common stock issuable upon the conversion of the Bridge Financing warrants with a weighted average conversion price of $4.50 per share.

● 1,042,176 shares of our common stock issuable upon the conversion of convertible notes with a weighted average conversion price of $2.25 per share.

● 4,000,000 shares of our common stock issuable upon the conversion of Series A warrants with a weighted average conversion price of $2.25 per share.

● 1,840,993 shares of our common stock issuable upon the exercise of Series B and C warrants with a weighted average conversion price of $2.48 per share.

● No exercise by the underwriters of the over-allotment option.

● No exercise of any Representative's Warrants.

**RISK FACTORS**

*An investment in shares of our common stock involves a high degree of risk. You should carefully consider the following risks and all other information contained in this prospectus before deciding whether to invest in our common stock. If any of the following risks are realized, our business, financial condition and results of operations could be materially and adversely affected. In that event, the trading price of the shares of our common stock could decline, and you could lose all or part of your investment. Some statements in this prospectus, including such statements in the following risk factors, constitute forward-looking statements. See the section entitled "Special Note Regarding Forward-Looking Statements".*

**Risks Related to Our Company**

***Our independent registered public accounting firm has expressed substantial doubt about our ability to continue as a going concern, and we may not be able to continue operations without additional financing.***

Our financial statements include an explanatory paragraph from our independent registered public accounting firm expressing substantial doubt about our ability to continue as a going concern. We have incurred significant operating losses since inception and expect to continue to incur losses for the foreseeable future. As of December 31, 2025, we had an accumulated deficit of $14,619,181. We expect that our existing cash resources will not be sufficient to fund our operations for the next 12 months. We will need to obtain additional financing to fund our operations and execute our business strategy. There is no assurance that such financing will be available to us on favorable terms, or at all. If we are unable to obtain adequate financing or generate sufficient revenue, we may be forced to significantly curtail or cease operations, which would materially and adversely affect our business, financial condition, and results of operations and could cause investors to lose their entire investment.

***Our limited operating history makes it difficult to evaluate our business and prospects and may increase the risks associated with your investment.***

We commenced operations in September 2020 and, as a result, have a limited operating history upon which our business and future prospects may be evaluated. Our historical results may not be indicative of, and could differ substantially from, the results we achieve in the future, and we cannot assure you that we will achieve profitability or sustain growth. Despite the experience and track record of our management team in the entertainment industry, historical results are not indicative of, and may be substantially different from, the results we achieve in the future. The entertainment industry is highly competitive and subject to significant volatility, rapid changes in consumer preferences, evolving distribution models, technological developments, and fluctuations in demand for entertainment content. In addition, factors such as the performance and acceptance of individual projects, changes in relationships with distribution partners, shifts in the competitive landscape, and broader economic conditions may materially affect our operating results. As a result, our future results may differ materially from our historical performance or management's current expectations, and investors should not rely on the past experience of our management team as an assurance of our future success.

We may not be able to operate our business successfully or implement our strategies as planned. We have encountered and will continue to encounter risks and challenges commonly faced by growing companies in such industries. Additionally, our results may be affected by broader economic conditions, evolving regulations, and technological changes. If we are unable to address these challenges successfully, our business, revenue, and operating results may suffer, and we may not be able to achieve further growth or sustain profitability.

***The loss of key personnel or the inability of replacements to quickly and successfully perform in their new roles could adversely affect our business.***

We depend on the leadership and experience of our relatively small number of key executive management personnel, particularly our Chief Executive Officer, Kirk E. Shaw; Chief Operating Officer, Chris Philip; and Executive Producer, George Furla, as well as our other highly skilled personnel. The loss of the services of these key executives, executive management members or other highly skilled personnel could have a material adverse effect on our business and prospects, as we may not be able to find suitable individuals to replace such personnel on a timely basis or without incurring increased costs, or at all. Furthermore, if we lose or terminate the services of one or more of our key employees or if one or more of our current or former executives or key employees join a competitor or otherwise compete with us, it could impair our business and our ability to successfully implement our business plan. Additionally, if we are unable to hire qualified replacements for our executive and other key positions in a timely fashion, our ability to execute our business plan would be harmed. Even if we can quickly hire qualified replacements, we would expect to experience operational disruptions and inefficiencies during any transition. We believe that our future success will depend on our continued ability to attract and retain highly skilled and qualified personnel. There is a high level of competition for experienced, successful personnel in our industry. Our inability to meet our executive staffing requirements in the future could impair our growth and harm our business. We do not maintain "key person" life insurance on any of our executive officers or other key employees. As a result, the loss of one or more members of our senior management team could adversely affect our operations, strategic direction, and ability to execute our business plan. While we may consider obtaining key person insurance in the future, there can be no assurance that such coverage will be available on commercially reasonable terms or at all.

***Our management team has limited experience managing a public company.***

The members of our management team have limited or no experience managing a publicly traded company, interacting with public company investors, and complying with the increasingly complex laws, rules and regulations that govern public companies. Our board of directors will contain several members with strong public company experience. There are significant obligations we will be subject to as a public company relating to reporting, procedures and internal controls, and our management team may not successfully or efficiently manage our transition to being a public company. These new obligations and scrutiny will require significant attention from our management and could divert their attention away from the day-to-day management of our business, which could adversely affect our business, financial condition and operating results.

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***Our IP content packaging business requires minimal investment of capital ranging from $20,000 to $50,000. However, failure to complete a sale into the market will have adverse effects on the results of operation for the individual project's development investment.***

The production, acquisition and distribution of film or digital media content require a significant amount of capital. Our business model is based on developing and then selling a completed package including creative, Director, lead cast and writers/showrunners attached. Although the production budgets for our sold IP projects will require up to $50 million to produce, these production funds come from the streaming site or studio purchaser of our content, not from Ambitious.

***We may not be able to compete with larger studios such as Sony, Warner Brothers and Paramount the majority of whom have greater resources than we currently have.***

As an IP development company, we both compete with and, in some cases, collaborate with major U.S. and international entertainment companies that have significantly greater financial, marketing, and operational resources than we do. Many of these larger competitors have established relationships with a broad base of creative talent, deeper access to capital, longer operating histories, more extensive industry connections, deeper libraries, and greater bargaining power in securing rights, talent, and other IP. These advantages may allow them to outbid us for desirable IP, ideas, storylines, and scripts or to offer more attractive terms to creators and talent than we can, which could materially and adversely affect our ability to outbid in order to secure high-quality IP and talent and thereby negatively impact our business, results of operations, and financial condition.

While we believe we have competitive advantages, including our ability to creatively finance and access emerging marketing power, we cannot assure you that these advantages will enable us to compete effectively against larger, well-established agencies or that we will be able to maintain or grow our share of desirable IP or talent.

***Our IP content creation business is dependent upon the success of six to eight film releases, two to three series, to theatrical, linear and digital media streaming sites in any one year and the unexpected commercial failure of any one of them could have a material adverse effect on our financial results and cash flows. Ninety percent of our revenue will be derived from IP content creation.***

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Our IP content creation business is substantially dependent upon the success of the number of film releases and digital streaming site acquisitions in any one year. The unexpected delay in release or commercial failure of just one of these films or digital streaming sites could have an adverse impact on our results of operations and cash flows in both the year of release and in the future. Historically, feature films and series that are successful in the domestic online and theatrical market are generally also successful in the international and ancillary markets, although each movie and series is different, and there is no way to guarantee such results. The IP packaging model makes Ambitious less dependent on future sales since our investment is paid back at the point of sale. If, however, our movies and series fail to achieve domestic sales or box office success, their success in the international sales market, box office and ancillary markets and our business, future fees and profit participation could be adversely affected. Further, we can make no assurances that the historical correlation between sales results to streaming sites and studios and results from international sales and ancillary sales will continue in the future. If our movies and series do not perform well in the domestic or international streaming or theatrical markets and ancillary markets, or our digital media sales do not perform as anticipated, the failure of any one of these could have a material adverse effect on our financial results and cash flows. Although our executive management team has demonstrated past success in the production, packaging, distribution, and commercial performance of prior content projects, we cannot guarantee that our future IP packages will be successfully sold, financed, distributed or commercially successful. Although there can be no assurance that every IP we develop will sell into the market on terms that will be acceptable to us, we can continue to develop the IP until it finds a home in the market.

***Our lack of diversification may make us vulnerable to oversupply in the market.***

Most of the major U.S. film studios and streaming sites are part of large diversified corporate groups with a variety of other operations, including television networks and cable channels, and online streaming sites, which can provide both means of distributing their products and stable sources of earnings that offset fluctuations in the financial performance of their motion picture and television operations. The number of series and movies developed and packaged by competitors, particularly the major U.S. talent agencies, online streaming sites and film studios, in any given period may create an oversupply of product in the market, and that may reduce our sales and make it more difficult for our IP content to succeed.

 ****

***Our operating results depend on product costs, public tastes and promotion success.***

We expect to generate our future revenue from the development and production of television series, feature films, especially from franchises that include prequels, sequels, animated versions and games. Our future revenues will depend upon the timing and the level of market acceptance of our IP content, as well as upon the buyer's cost to produce, distribute and promote the series and movies. Our IP content creation business approach attempts to mitigate the costs of production and marketing the completed series or movie. Our invested development funds are paid back at the point of sale to minimize risk. Although we participate in revenue streams from the later production of a series and movie, this can depend primarily on the feature film's acceptance by the public, which cannot be predicted and does not necessarily bear a direct correlation to the production costs incurred. The commercial success of a series and movie also depends upon promotion and marketing and certain other factors. Accordingly, our revenues are, and will continue to be, extremely difficult to forecast.

***One or two of our contemplated projects may not be accepted by distributors and/or the marketplace and our business may fail as a direct result of such lack of market acceptance.***

The ultimate profitability of any project we offer for sale into the market depends upon its ultimate appeal to a streaming site or studio in relation to their cost of its production and distribution. The audience appeal of a given concept depends, among other things, on unpredictable critical reviews and changing public tastes, and such appeal cannot be anticipated with certainty. If certain streaming sites or studios do not like, are not willing to pay for, or otherwise do not approve of an individual movie or series we have developed, it may be put on hiatus until we can shape it to meet the needs of a streaming site or studio. To mitigate these issues, our business has multiple and varied IP projects designed for wide market appeal.

***Our future success depends on our ability to develop and package new series and movies to sell them to streaming sites, movie studios and distribution channels. The inability to target IP for current market tastes can limit our growth prospects.***

Our business success is completely dependent on our ability to successfully develop movies and series for sale to streaming sites, movie studios and distributors who then incur the production costs. Revenues derived from both packaging and later production fees paid to the Company will represent vital funds necessary for our continued operations. The loss or damage of any of our business relationships and/or revenues derived therefrom will limit our ability to sell our projects.

***We rely on relationships with online digital streaming platforms to distribute and monetize our content, and we do not currently have long-term distribution agreements in place. Because we are dependent on successfully negotiating individual transactions, we may be unable to secure distribution for our content on commercially acceptable terms, or at all.***

We do not currently have binding long-term distribution or revenue-sharing agreements with online digital streaming platforms. Our ability to monetize our intellectual property depends on our management team's industry relationships and our ability to negotiate individual content sales or licensing arrangements on a project-by-project basis.

Historically, our arrangements with streaming platforms have been negotiated separately for each project and typically provide for revenue sharing based on distribution revenues after recoupment of agreed production and marketing costs. These arrangements do not obligate the platforms to acquire or distribute any minimum number of our productions and generally do not provide guaranteed minimum revenues.

Because we are dependent on successfully negotiating individual transactions, we may be unable to secure distribution for our content on commercially acceptable terms, or at all. In addition, the streaming market is highly competitive and subject to changing content preferences and economic pressures affecting platform programming budgets. If we are unable to enter into distribution arrangements with major streaming platforms, our results of operations and cash flows would be materially adversely affected. Further, if a limited number of streaming platforms account for a substantial portion of our revenues in any period, the loss of any such relationship could have a material adverse effect on our business.

***Because of the speculative nature of our business, future operating results are difficult to predict and dependent on external factors.***

The film and television content business is extremely competitive and the commercial success of any project is often dependent on factors beyond our control, including market acceptance and the quality of our content. Each motion picture or series is a unique piece of art that depends on unpredictable audience reaction to determine commercial success. There can be no assurance that our feature films or series will be favorably received by viewers.

We anticipate that our revenues will likely be volatile, and we will likely experience significant quarter-to-quarter fluctuations in revenues and net income or loss. Until we realize consistent revenue and cash flow from developing and selling our IP content, our quarter-to-quarter comparisons of historical operating results will not be a good indication of future performance. It is possible that in some future quarter, operating results may fall below expectations of investors and securities analysts, which could adversely impact the trading price of our common stock.

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***Technological advances may reduce demand for films.***

The entertainment industry in general, and the motion picture industry in particular, is continuing to undergo significant changes, primarily due to technological developments. Because of this rapid growth of technology, we have developed a flexible business model that relies on the development of IP for streaming sites as well as movie franchises for potential theatrical release. Shifting consumer tastes and the popularity and availability of other forms of entertainment make it difficult to accurately predict the overall effect these factors will have on the potential revenue from and profitability of theatrical feature-length motion pictures. Streaming sites also purchase movie franchises so any failure of the theatrical release business would result in a shift to pitching movie packages to streaming sites. At present, we have scheduled 1-2 theatrical releases and 7-8 streaming releases annually.

***It is possible that our IP projects may infringe on other copyrighted concepts. Litigation arising out of infringement or other commercial disputes could cause us to incur expenses and impair our competitive advantage***.

Although we ensure we have legally secured all IP we develop with scrutinized agreements with the rights holder, we cannot be certain that our projects will not be seen by some to infringe upon existing copyrights or other intellectual property rights held by third parties. We cannot ensure that litigation will not arise from disputes involving these third parties. We may incur substantial expenses in defending against prospective claims, regardless of their merit. Successful claims against us may result in substantial monetary liability, significantly impact our results of operations in one or more quarters, or materially disrupt the conduct of our business. Our success depends in part on our ability to obtain and enforce intellectual property protection for our projects, to preserve our trade secrets and to operate without infringing the proprietary rights of third parties.

Prior to acquiring or developing intellectual property, we engage outside legal counsel specializing in intellectual property matters to conduct due diligence on underlying rights documentation, including review of chain of title and related agreements. We also obtain representations and warranties from rights holders regarding ownership and non-infringement. Our monitoring efforts primarily consist of contractual diligence procedures, consultation with intellectual property counsel, and review of publicly available materials. However, these measures may not prevent third parties from asserting claims of infringement. We do not currently maintain a formal internal department dedicated to monitoring third-party infringement of our intellectual property, and we have not initiated any enforcement actions to date. As a result, we may not detect unauthorized use of our intellectual property in a timely manner, and we may lack sufficient resources to pursue enforcement if necessary.

The validity and breadth of claims covered in our copyrights involve complex legal and factual questions and, therefore, may be highly uncertain. No assurances can be given that:

● that the scope of any future intellectual property protection will exclude competitors or provide competitive advantages to us;

● that any copyrights will be held valid if subsequently challenged;

● that others will not claim rights in, or ownership of, the potential copyrights or other proprietary rights we hold; or

● that our intellectual property will not infringe or be alleged to infringe on the proprietary rights of others.

Furthermore, there can be no assurance that others have not developed or will not legally or illegally develop similar projects. Also, whether or not additional intellectual property protection is issued to the company, others may hold or receive intellectual protection covering projects that were subsequently developed by the company. Although we will have legally secured the IP, no assurance can be given that others will not, or have not independently developed or otherwise acquired substantially equivalent intellectual property.

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***Failure to manage our growth effectively could cause our business to suffer and have an adverse effect on our financial condition and operating results.***

To manage our growth effectively, we must continually evaluate and evolve our organization by effectively managing our employees, operations, finances, technology and development and capital investments efficiently. Our efficiency, productivity and the quality of our projects may be adversely impacted if we do not train our new personnel, particularly our sales and support personnel, quickly and effectively, or if we fail to appropriately coordinate across our organization. Additionally, our rapid growth may place a strain on our resources, infrastructure, and ability to maintain the quality of our platform. In future periods, our revenue or profitability could decline or grow more slowly than we expect. Failure to manage our growth effectively could cause our business to suffer and have an adverse effect on our financial condition and operating results.

***We may experience fluctuations in our operating results, which could make our future operating results difficult to predict or cause our operating results to fall below analysts' and investors' expectations***.

Our operating results have fluctuated significantly in the past, and we expect our future operating results to continue to fluctuate due to a variety of factors, many of which are beyond our control.

For example, our revenues and cost of goods sold have varied materially from period to period depending on the number of film and other content projects in active production, released, or monetized during the applicable period. During the years ended December 31, 2023, 2024, and 2025, our revenues fluctuated based primarily on the timing and commercial performance of specific projects, as well as the recognition of associated production and distribution costs. In periods where we had fewer film releases or delayed project monetization, revenue declined while certain fixed overhead and development costs continued to be incurred, resulting in increased operating losses. Conversely, in periods with higher project activity or successful releases, revenues increased but were accompanied by corresponding increases in production, marketing, and distribution expenses.

Because a significant portion of our costs are incurred in advance of, or contemporaneously with, a film's release, operating results may vary substantially depending on the timing of project completions and revenue recognition. In addition, changes in the number of projects in development versus those in active production or distribution have caused, and may continue to cause, material fluctuations in cost of goods sold and gross margins from year to year.

Fluctuations in our operating results could cause our performance to fall below the expectations of analysts and investors and adversely affect the price of our common stock. Because our business is project-based and continues to evolve, our historical operating results may not necessarily be indicative of future performance.

Factors that may cause our operating results to fluctuate include the following:

● **Timing and performance of film releases:** Our revenues can vary significantly based on the timing, number, and commercial success of our film releases. Delays in production, unexpected changes in release schedules, or underperformance at the box office or on digital platforms may result in material fluctuations in revenue and profitability.

● **Variability in production and marketing costs:** The costs associated with developing, producing, and promoting films can be unpredictable and vary widely from project to project. Budget overruns, changes in production scope, or increased marketing spend may adversely impact our margins and operating results.

● **Shifts in consumer preferences and distribution platforms:** Rapid changes in viewer preferences, audience fragmentation, or disruption in traditional distribution channels (such as the decline of theatrical releases in favor of streaming) may impact the demand for our content and affect our ability to monetize it effectively across different platforms.

Based upon the factors above and others beyond our control, we have a limited ability to forecast our future revenue, costs and expenses, and as a result, our operating results may, from time to time, fall below our estimates or the expectations of analysts and investors.

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***As our costs increase, we may not be able to generate sufficient revenue to sustain profitability.***

We expect to expend resources to grow our business. We anticipate continued growth that could require further financial and other resources to, among other things:

● Develop, produce, and market original film and television content across multiple formats and platforms;

● Expand our distribution channels, including direct-to-consumer and streaming platforms, both domestically and internationally;

● Attract and retain top creative talent, production partners, and promotional collaborators, including social media influencers and brand sponsors.

Investing in the foregoing, however, may not yield anticipated returns. Consequently, as our costs increase, we may not be able to generate sufficient revenue to sustain profitability. During the years ended December 31, 2025 and December 31, 2024, we recorded impairment charges of $128,650 and $85,837, respectively, related to a film and film rights where the expected future economic benefits were not realized. These impairments reflect instances in which our investments in content development did not generate the anticipated returns. Similar circumstances may occur in the future as we continue to invest in the development and production of entertainment content, which could adversely affect our operating results.

***Servicing our debt will require a significant amount of cash, and we may not have sufficient cash flow from our business to pay our debt.***

Our ability to make scheduled payments of principal, to pay interest on, or to refinance our indebtedness depends on our future operating performance, which is subject to economic, financial, competitive and other factors beyond our control. All of our outstanding debt matures at various dates during 2026.

Our debt agreements do not contain traditional financial maintenance covenants; however, they include customary provisions that may restrict certain corporate actions, including limitations on additional indebtedness, liens, dividends, and certain fundamental transactions, unless permitted by the terms of the applicable agreements. In addition, failure to timely repay amounts due at maturity or comply with other obligations under the debt instruments would constitute an event of default, which could result in acceleration of the indebtedness and the imposition of default interest. Further, while our convertible notes do not contain operational covenants, they are senior secured obligations with customary default provisions (including cross-defaults above $50,000), which could materially affect liquidity and operations if triggered.

Given that all of our indebtedness matures during 2026, we will be required to repay, refinance, extend, or convert these obligations prior to or upon maturity. There can be no assurance that we will be able to do so on favorable terms or at all, which could materially adversely affect our liquidity, financial condition, and results of operations.

We have historically generated negative cash flow from operations and have not produced sufficient operating cash flow to cover our debt service obligations. Net cash used in operating activities was $1,068,619 for the year ended December 31, 2025, $4,714,924 for the year ended December 31, 2024, and $4,646,188 for the year ended December 31, 2023. Accordingly, our operations have not generated sufficient cash to fund our working capital needs or service our outstanding indebtedness.

As of December 31, 2025, we had outstanding convertible notes payable, net of original issue discount and debt discount, of $2,092,762. All of our outstanding convertible notes mature at various dates during 2026. Unless converted into equity, refinanced, extended, or otherwise restructured, these obligations will require repayment in cash upon maturity.

Historically, the Company has not generated positive cash flow from operating activities sufficient to service its debt obligations. For example, the Company reported net cash used in operating activities of approximately $1,068,619 for the year ended December 31, 2025 and $4,714,924 for the year ended December 31, 2024. As a result, the Company has historically relied on financing activities to fund its operations. The Company has not made any payments toward its debt service requirements. If the Company is unable to generate sufficient cash flow from operations in the future or obtain additional financing, it may not be able to meet its debt obligations or fund necessary capital expenditures.

We may not generate cash flow from operations in the future sufficient to service our debt and make necessary capital expenditures, particularly if the offering contemplated by this prospectus is unsuccessful. If we are unable to generate sufficient cash flow, we may be required to pursue alternatives such as selling assets, restructuring or refinancing our debt, seeking extensions from noteholders, or obtaining additional equity capital, which may be on terms that are onerous or highly dilutive to existing stockholders. Our ability to refinance our indebtedness will depend on the condition of the capital markets and our financial position at the time of refinancing. We may not be able to consummate any of these alternatives on acceptable terms, or at all, which could result in a default on our debt obligations.

***We could become involved in litigation matters that may be expensive and time consuming, and, if resolved adversely, could harm our business, financial condition, or results of operations.***

Although we are not currently involved in any litigation matters, any such litigation to which we are a party may result in an onerous or unfavorable judgment that may not be reversed upon appeal, or we may decide to settle lawsuits on similarly unfavorable terms. Any negative outcome could result in payments of substantial monetary damages or fines, or changes to our products or business practices, and accordingly, our business, financial condition, or results of operations could be materially and adversely affected.

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***If we fail to protect our intellectual property and proprietary rights adequately, our business could be adversely affected.***

Our ability to compete depends in part on the protection of our intellectual property, including copyrights and trademarks associated with our film and television content. We rely on U.S. and international copyright, trademark and other intellectual property laws, as well as contractual restrictions in our distribution and licensing arrangements, to protect our proprietary rights.

While most countries maintain intellectual property laws and are signatories to international agreements such as those administered by the World Intellectual Property Organization and the World Trade Organization, enforcement of those laws varies significantly by jurisdiction. The Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS) establishes minimum standards of protection; however, practical enforcement in certain markets remains inconsistent.

The Office of the United States Trade Representative ("USTR") annually publishes its "Special 301 Report," which identifies countries where intellectual property enforcement concerns persist. USTR's "Special 301 Report" issued on April 29, 2025, reports, countries such as China, Russia, India, Vietnam, Türkiye (Turkey), and Indonesia have been identified as jurisdictions where online piracy, unauthorized streaming services, illicit IPTV distribution, camcording of theatrical releases, or ineffective enforcement mechanisms remain concerns. These issues typically relate to the effectiveness of enforcement rather than the absence of copyright laws.

Although revenue derived from these jurisdictions currently represents less than 10% of our total revenues, unauthorized distribution of our content in these or other territories could reduce legitimate revenues, impair the value of our intellectual property, and undermine our ability to license content in affected markets. In addition, digital piracy is global in nature, and infringing platforms operating in one jurisdiction may distribute content internationally, including into markets that represent a significant portion of our revenues.

We cannot assure you that our efforts to protect our intellectual property rights will be adequate or that we will be able to prevent unauthorized use or distribution of our content. Failure to successfully protect our intellectual property could have a material adverse effect on our business, financial condition, and results of operations.

***We rely on information technology systems and could face cybersecurity risks.***

We rely on information technologies and infrastructure, such as our company website, emails and data rooms, to manage our business, including digital storage of marketing strategies, client information, films and digital programming, and the delivery of digital marketing services. Data maintained in digital form is subject to the risk of intrusion, tampering, theft, corruption, and unauthorized access.

The incidence of malicious technology-related events, such as cyberattacks, computer hacking, ransomware, phishing attacks, computer viruses, worms, denial-of-service attacks, and other destructive or disruptive activities, has increased in frequency and sophistication worldwide. In addition, power outages, equipment failures, natural disasters (including extreme weather events), terrorist activities, and human error may adversely affect our systems.

To date, we have not experienced any cybersecurity incidents that have resulted in a material adverse effect on our business, financial condition, or results of operations. However, there can be no assurance that we will not experience such incidents in the future. A significant cybersecurity breach could result in disruption of our operations, loss or improper disclosure of personal data or confidential information, reputational harm, regulatory investigations, litigation, remediation costs, and potential liability under applicable laws and regulations.

We currently have limited formal cybersecurity policies and procedures in place. While we utilize basic security features provided by third-party service providers and standard system configurations, we have not implemented a comprehensive cybersecurity program. As a result, our information technology systems and data may be more vulnerable to cybersecurity incidents, including unauthorized access, data breaches, malware attacks, phishing schemes, or other disruptions.

Any such incident could result in the loss of confidential information, business interruption, reputational harm, regulatory scrutiny, or financial loss, and could materially and adversely affect our business, financial condition, and results of operations.

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***We have risks related to the development and implementation of our artificial intelligence platform.***

 

We are in the process of developing an internally developed artificial intelligence ("AI") platform, which we expect to support aspects of our development, production, and post-production workflows. The successful development, deployment, and integration of this platform will require significant management attention, technical expertise, and financial resources, and there can be no assurance that the platform will be completed on our anticipated timeline or at all.

The implementation of new and evolving technologies, including AI, involves inherent risks, including development delays, cost overruns, system failures, integration challenges with existing processes, cybersecurity vulnerabilities, and the risk that anticipated efficiencies, cost savings, or competitive advantages may not be realized. In addition, the use of AI technologies may raise legal, regulatory, intellectual property, data privacy, and ethical considerations, which could subject us to increased scrutiny, compliance costs, or potential liability.

If we are unable to successfully develop, deploy, or operate our AI platform, or if the platform fails to achieve its intended objectives, our operating results, financial condition, and growth strategy could be adversely affected.

***A significant portion of our revenue in a given period may be derived from a limited number of customers or projects, and the completion or loss of any such project could adversely impact our results of operations.***

Our business model is project-based, and as a result, a significant percentage of our revenue in a given year may be attributable to one or a small number of customers. For example, during the year ended December 31, 2024, we derived approximately 52% of our production service revenue from a single customer, FATE. Once a project is completed, we do not continue to receive revenue from that customer unless we are engaged for new projects. Accordingly, our revenue may fluctuate substantially from period to period depending on the timing, size, and number of projects in progress. If we are unable to replace completed projects with new engagements on a timely basis, or if we lose a significant customer without securing comparable replacement business, our results of operations could be materially and adversely affected.

***We are transitioning away from production service work to focus on developing and producing our own intellectual property, which exposes us to new risks and uncertainties.***

Historically, a portion of our revenue has been derived from production service work, including a prior engagement with FATE, which accounted for approximately 52% of our production service revenue in 2024. Our engagement with FATE was project-based, and we have since transferred our interest in that project. Accordingly, this customer relationship is not ongoing, and we do not currently have a production services agreement with FATE.

Beginning in 2025, we shifted our strategic focus away from providing production services to exclusively developing, producing, and owning our own intellectual property. As a result, we do not expect production service revenue, including revenue from FATE, to represent a significant portion of our revenues in future periods. However, our revenue in future periods may be concentrated among a limited number of projects or counterparties, and the level of concentration will depend on the number and scale of projects in development, production, or distribution at any given time.

While we believe this transition may create greater long-term value, it also exposes us to additional risks. Producing and owning content involves greater upfront capital investment, longer development timelines, and significant uncertainty as to whether a project will achieve commercial success. Unlike production services, which generally provide contracted fee-based revenue, our future revenues will increasingly depend on our ability to develop commercially viable content and successfully monetize our intellectual property across theatrical, streaming, licensing, and other distribution channels.

If our owned content does not achieve market acceptance, fails to secure distribution, or does not generate expected financial returns, our business, results of operations, and financial condition could be materially and adversely affected.

 ****

**Risks Related to Our Common Stock and this Offering**

***Investors in this offering will experience immediate and substantial dilution in net tangible book value.***

The public offering price per share will be substantially higher than the net tangible book value per share of our outstanding shares of common stock. As a result, investors in this offering will incur immediate dilution of $4.43 per share, based on the assumed public offering price of $4.50 per share, the midpoint of the estimated initial public offering price range described on the cover of this prospectus. Investors in this offering will pay a price per share that substantially exceeds the book value of our assets after subtracting our liabilities. See "*Dilution*" for a more complete description of how the value of your investment will be diluted upon the completion of this offering.

***There can be no assurance that our shares and will be listed on the NYSE American and, if they are, our shares will be subject to potential delisting if we do not meet or continue to maintain the listing requirements of the NYSE American.***

We have applied to list the shares of our common stock on the NYSE American, or, under the symbol "___". An approval of our listing application by the NYSE American will be subject to, among other things, our fulfilling all listing requirements of the NYSE American. In addition, the NYSE American has rules for continued listing, including, without limitation, minimum market capitalization and other requirements. Failure to maintain our listing, or de-listing from the NYSE American, would make it more difficult for shareholders to sell our common stock and more difficult to obtain accurate price quotations on shares of our common stock. This could have an adverse effect on the price of the shares of our common stock. Our ability to issue additional securities for financing or other purposes, or otherwise to arrange for any financing we may need in the future, may also be materially and adversely affected if shares of our common stock are not traded on a national securities exchange.

***There has been no prior public trading market for our shares and an active trading market may not develop or be sustained following this offering.***

Prior to this offering, there has been no prior public trading market for shares of our common stock. We cannot assure you that an active trading market for our shares will develop or, if developed, that any market will be sustained. Accordingly, we cannot assure you of the liquidity of any trading market, your ability to sell your shares of our common stock when desired or the prices that you may obtain for your shares of our common stock. Even if an active market for shares of our common stock does develop, the market price of such shares may be highly volatile. In addition to the uncertainties relating to future operating performance and the profitability of operations, factors such as variations in interim financial results or various, as yet unpredictable, factors, many of which are beyond our control, may have a negative effect on the market price of our securities.

 ****

***The trading price of shares of our common stock could be volatile, and you could lose all or part of your investment.***

The initial public offering price of our shares was determined through negotiation between us and the underwriters. This price does not necessarily reflect the price at which investors in the market will be willing to buy and sell shares of our common stock following this offering. The trading price of shares of our common stock following this offering may fluctuate substantially. Following the completion of this offering, the market price of shares of our common stock may be higher or lower than the price you pay in the offering, depending on many factors, some of which are beyond our control and may not be related to our operating performance. These fluctuations could cause you to lose all or part of your investment in our shares. Factors that could cause fluctuations in the trading price of our common stock include the following:

● departures of key personnel;

● price and volume fluctuations in the overall stock market from time to time;

● fluctuations in the trading volume of our shares or the size of our public float;

● sales of large blocks of our common stock;

● actual or anticipated changes or fluctuations in our operating results;

● changes in actual or future expectations of our operating results by investors or securities analysts;

● litigation involving us, our industry or both;

● regulatory developments in the United States, foreign countries or both;

● general economic conditions and trends; and

● major catastrophic events in our domestic and foreign markets.

In addition, if the market for shares of companies in the entertainment industry or the stock market in general experiences a loss of investor confidence, the trading price of our common stock could decline for reasons unrelated to our business, operating results or financial condition. The trading price of our common stock might also decline in reaction to events that affect other companies in our industry, even if these events do not directly affect us. In the past, following periods of volatility in the trading price of a company's securities, securities class action litigation has often been brought against that company.

***If our shares were to be delisted from the NYSE American, they may become subject to the SEC's "penny stock" rules in which case broker-dealers may be discouraged from effecting transactions in our shares.***

The SEC has adopted rules regulating "penny stocks" that restrict transactions involving stock which is deemed to be penny stock. These rules may have the effect of reducing the liquidity of penny stocks. "Penny stocks" generally are equity securities with a price of less than $5.00 per share (other than securities registered on certain national securities exchanges if current price and volume information with respect to transactions in such securities is provided by the exchange). Our securities may in the future constitute "penny stock" within the meaning of the rules. The additional sales practice and disclosure requirements imposed upon U.S. broker-dealers may discourage such broker-dealers from effecting transactions in shares of our common stock, which could severely limit the market liquidity of such shares and impede their sale in the secondary market.

***There may be future issuances or resales of shares of our common stock in connection with financings, acquisitions, investments, our stock incentive plans or otherwise, which may materially and adversely dilute the ownership interest of stockholders.***

We are not restricted from issuing additional shares of our common stock in the future, including securities convertible into, or exchangeable or exercisable for, shares of our common stock. Our issuance of such additional shares of common stock in the future will dilute the ownership interests of our then existing stockholders. We may also raise capital through equity financings in the future. As part of our business strategy, we may acquire or make investments in complementary companies, products or technologies and issue equity securities to pay for any such acquisition or investment. Any such issuances of additional capital stock may cause stockholders to experience significant dilution of their ownership interests and the per share value of our common stock to decline.

 ****

***We may issue shares of preferred stock, the terms of which could adversely affect the voting power or value of our common stock.***

Our certificate of incorporation authorizes us to issue, without the approval of our stockholders, one or more classes or series of preferred stock having such designations, preferences, limitations and relative rights, including preferences over our common stock respecting dividends and distributions, as our board of directors may determine. The terms of one or more classes or series of preferred stock could adversely impact the voting power or value of our common stock. For example, we might grant holders of preferred stock the right to elect some number of our directors in all events or on the happening of specified events or the right to veto specified transactions. Similarly, the repurchase or redemption rights or liquidation preferences we might assign to holders of preferred stock could affect the residual value of our common stock.

***If securities analysts were to downgrade our stock, publish negative research or reports or fail to publish reports about our business, our competitive position could suffer, and our stock price and trading volume could decline.***

The trading market for our common stock will, to some extent, depend on the research and reports that securities analysts may publish about us, our business, our market or our competitors. We do not have any control over these analysts. We do not currently have and may never obtain research coverage by securities analysts. If no or few securities analysts commence coverage of us, the trading price of our stock would likely decrease. Even if we do obtain analyst coverage, if one or more of the analysts who cover us should downgrade our stock or publish negative research or reports, cease coverage of our company or fail to regularly publish reports about our business, our competitive position could suffer, and our stock price and trading volume could decline.

***The requirements of being a public company, including compliance with the reporting requirements of the Exchange Act, and the requirements of the Sarbanes-Oxley Act, may strain our resources, increase our costs and divert management's attention, and we may be unable to comply with these requirements in a timely or cost-effective manner.***

As a public company, we will need to comply with laws, regulations and requirements, certain corporate governance provisions of the Sarbanes-Oxley Act, the Securities Exchange Act of 1934, as amended (the "Exchange Act"), related regulations of the SEC and the listing rules of the NYSE American, with which we are not required to comply as a private company. Complying with these statutes, regulations and rules will occupy a significant amount of time of our board of directors and management and will significantly increase our costs and expenses. We will need to:

● institute comprehensive compliance functions commensurate with being a public company;

● comply with rules promulgated by the NYSE American;

● continue to prepare and file periodic and other reports with the SEC and prepare and distribute proxy statements in compliance with our obligations under the federal securities laws;

● establish new internal policies, such as those relating to insider trading; and

● involve and retain to a greater degree outside counsel and accountants to support the above activities.

In addition, we expect that being a public company subject to these rules and regulations may make it more difficult and more expensive for us to obtain director and officer liability insurance, and we may be required to accept reduced policy limits and coverage or incur substantially higher costs to obtain the same or similar coverage. As a result, it may be more difficult for us to attract and retain qualified individuals to serve on our board of directors or as executive officers. We are currently evaluating these rules, and we cannot predict or estimate the amount of additional costs we may incur or the timing of such costs.

***Our internal control over financial reporting may not be effective and our independent registered public accounting firm may not be able to certify as to their effectiveness in the future, which could have a significant and adverse effect on our business, financial condition, results of operations and reputation.***

After the completion of this offering, we will be subject to a requirement, pursuant to Section 404 of the Sarbanes-Oxley Act, to conduct an annual review and evaluation of our internal control over financial reporting and furnish a report by management on, among other things, our assessment of the effectiveness of our internal control over financial reporting each fiscal year beginning with the year following our first annual report required to be filed with the SEC. However, because we are an emerging growth company, our independent registered public accounting firm is not required to formally attest to the effectiveness of our internal control over financial reporting pursuant to Section 404 until the earlier of the fifth year following our first annual report required to be filed with the SEC or the date on which we are no longer an emerging growth company. Ensuring that we have adequate internal control over financial reporting in place so that we can produce accurate financial statements on a timely basis is a costly and time-consuming effort that must be evaluated frequently. Establishing and maintaining these internal controls will be costly and may divert management's attention from our business.

When evaluating our internal control over financial reporting, we may identify material weaknesses that we may not be able to remediate in time to meet the applicable deadline imposed upon us for compliance with the requirements of Section 404 of the Sarbanes-Oxley Act. In addition, if we fail to achieve and maintain the adequacy of our internal control over financial reporting, as such standards are modified, supplemented or amended from time to time, we may not be able to ensure that we can conclude, on an ongoing basis, that we have effective internal control over financial reporting in accordance with Section 404 of the Sarbanes-Oxley Act. We cannot be certain as to the timing of completion of our evaluation, testing and any remediation actions or the impact of the same on our operations. If we do not adequately implement or comply with the requirements of Section 404 of the Sarbanes-Oxley Act, we may be subject to sanctions or investigation by regulatory authorities, such as the SEC, or suffer other adverse regulatory consequences, including penalties for violation of the NYSE American rules. As a result, there could be a negative reaction in the financial markets due to a loss of confidence in the reliability of our financial statements. A loss of confidence in the reliability of our financial statements also could occur if we or our independent registered public accounting firm were to report one or more material weaknesses in our internal control over financial reporting. In addition, we may be required to incur costs in improving our internal control system, including the costs of hiring of additional personnel. Any such action could negatively affect our business, financial condition, results of operations and cash flows and could also lead to a decline in the price of our common stock.

***Management will have broad discretion over the use of our proceeds from this offering.***

The principal purposes of this offering include increasing our capitalization and financial flexibility, creating a public market for our stock, thereby enabling access to the public equity markets by our employees and stockholders, obtaining additional capital and increasing our visibility in the marketplace. Although we have not yet determined with certainty how we will allocate the net proceeds of this offering, we expect to use the net proceeds from this offering for working capital and other general corporate purposes. We may also use a portion of the proceeds from this offering to acquire or invest in additional intellectual property and to expand our development pipeline. See "*Use of Proceeds*". We have not allocated specific amounts of net proceeds for any of these purposes and we cannot specify with certainty the particular uses of the net proceeds to us from this offering. Accordingly, we will have broad discretion in using these proceeds and might not be able to obtain a significant return, if any, on investment of these net proceeds. Investors in this offering will need to rely upon the judgment of our management with respect to the use of our proceeds. If we do not use the net proceeds that we receive in this offering effectively, our business, operating results and financial condition could be harmed.

***We do not anticipate that we will pay dividends on our common stock and, consequently, your ability to achieve a return on your investment will depend on appreciation in the price of our common stock.***

We have never declared or paid any dividends on our common stock. We intend to retain any earnings to finance the operation and expansion of our business, and we do not anticipate paying any cash dividends in the foreseeable future. In addition, in the future, we may enter into agreements that prohibit or restrict our ability to declare or pay dividends on our common stock. As a result, you may only receive a return on your investment in share of our common stock if the market price of our shares increases.

***Anti-takeover effects of certain provisions of Nevada state law may hinder a potential takeover of us.***

Though we are not currently subject to Nevada's control share law, in the future, we may become subject to it. A corporation is subject to Nevada's control share law if it has more than 200 stockholders, at least 100 of whom are stockholders of record and residents of Nevada, and it does business in Nevada or through an affiliated corporation. The law focuses on the acquisition of a "controlling interest", which means the ownership of outstanding voting shares sufficient, but for the control share law, to enable the acquiring person to exercise the following proportions of the voting power of the corporation in the election of directors: (i) one-fifth or more but less than one-third; (ii) one-third or more but less than a majority; or (iii) a majority or more. The ability to exercise such voting power may be direct or indirect, as well as individual or in association with others.

The effect of the control share law is that the acquiring person, and those acting in association with it, obtains only such voting rights in the control shares as are conferred by a resolution of the stockholders of the corporation, approved at a special or annual meeting of stockholders. The control share law contemplates that voting rights will be considered only once by the other stockholders. Thus, there is no authority to strip voting rights from the control shares of an acquiring person once those rights have been approved. If the stockholders do not grant voting rights to the control shares acquired by an acquiring person, those shares do not become permanent non-voting shares. The acquiring person is free to sell its shares to others. If the buyers of those shares themselves do not acquire a controlling interest, their shares do not become governed by the control share law.

If control shares are accorded full voting rights and the acquiring person has acquired control shares with a majority or more of the voting power, any stockholder of record, other than an acquiring person, who has not voted in favor of approval of voting rights, is entitled to demand fair value for the redemption of such stockholder's shares.

In addition to the control share law, Nevada has a business combination law, which prohibits certain business combinations between Nevada corporations and "interested stockholders" for two years after the "interested stockholder" first becomes an "interested stockholder", unless the corporation's board of directors approves the combination in advance or thereafter by both the board of directors and 60% of the disinterested stockholders. For purposes of Nevada law, an "interested stockholder" is any person who is (i) the beneficial owner, directly or indirectly, of 10% or more of the voting power of the outstanding voting shares of the corporation, or (ii) an affiliate or associate of the corporation and at any time within the two previous years was the beneficial owner, directly or indirectly, of 10% or more of the voting power of the then outstanding shares of the corporation. The definition of the term "business combination" is sufficiently broad to cover virtually any kind of transaction that would allow a potential acquiror to use the corporation's assets to finance the acquisition or otherwise to benefit its own interests rather than the interests of the corporation and its other stockholders. The effect of Nevada's business combination law is to potentially discourage parties interested in taking control of us from doing so if it cannot obtain the approval of our board of directors.

In May 2025, Nevada adopted amendments to its corporate law that may further complicate unsolicited takeover attempts. These amendments define a "controlling stockholder" as a person or group having voting power sufficient to elect a majority of the corporation's directors and impose a limited fiduciary duty on such stockholders not to exert undue influence over directors or officers that would cause a breach of fiduciary duty and confer a material, non-ratable benefit to the controller. The amendments also provide a statutory safe harbor whereby such conflict transactions are presumed valid if approved or recommended by a committee of disinterested directors. This presumption may only be rebutted under limited circumstances. These statutory protections may enhance the influence of our board of directors and significant stockholders and may deter potential acquirors who are unwilling or unable to comply with the procedural requirements under Nevada law.

***For as long as we are an emerging growth company, we will not be required to comply with certain requirements that apply to other public companies.***

We are an "emerging growth company" as defined in Section 2(a) of the Securities Act. For as long as we are an emerging growth company, unlike other public companies, we will not be required to, among other things: (i) provide an auditor's attestation report on management's assessment of the effectiveness of our system of internal control over financial reporting pursuant to Section 404(b) of the Sarbanes-Oxley Act, (ii) comply with any new requirements adopted by the Public Company Accounting Oversight Board requiring mandatory audit firm rotation or a supplement to the auditor's report in which the auditor would be required to provide additional information about the audit and the financial statements of the issuer, (iii) provide certain disclosures regarding executive compensation required of larger public companies, or (iv) hold nonbinding advisory votes on executive compensation and any golden parachute payments not previously approved. In addition, an emerging growth company can take advantage of the extended transition period provided in Section 7(a)(2)(B) of the Securities Act for adopting new or revised financial accounting standards. We intend to take advantage of the longer phase-in periods for the adoption of new or revised financial accounting standards until we are no longer an emerging growth company. If we were to subsequently elect instead to comply with these public company effective dates, such election would be irrevocable.

We will remain an emerging growth company for up to five full fiscal years, although we will lose that status sooner if we have more than $1.235 billion of revenues in a fiscal year, have more than $700 million in market value of our common stock held by non-affiliates (and have been a public company for at least 12 months and have filed one annual report on Form 10-K with the SEC), or issue more than $1.0 billion of non-convertible debt over a three-year period.

To the extent that we rely on any of the exemptions available to emerging growth companies, you will receive less information about our executive compensation and internal control over financial reporting than issuers that are not emerging growth companies. We cannot predict if investors will find our common stock less attractive because we will rely on these exemptions. If some investors find our common stock to be less attractive as a result, there may be a less active trading market for our common stock and our stock price may be more volatile.

***We are a "smaller reporting company" and, even if we no longer qualify as an emerging growth company, we may still be subject to reduced reporting requirements.***

Additionally, we are a "smaller reporting company" as defined in Item 10(f)(1) of Regulation S-K. Smaller reporting companies may take advantage of certain reduced disclosure obligations, including, among other things, providing only two years of audited financial statements. We will remain a smaller reporting company until the last day of any fiscal year for so long as either: (i) the market value of our shares of common stock held by non-affiliates does not equal or exceed $250 million as of the prior June 30th; or (ii) our annual revenues did not equal or exceed $100 million during such completed fiscal year. To the extent we take advantage of such reduced disclosure obligations, it may also make the comparison of our financial statements with other public companies difficult or impossible.

***Sales of a substantial number of shares of our common stock following this offering may adversely affect the market price of our common stock and the issuance of additional shares will dilute all other stockholders.***

Sales of a substantial number of shares of our common stock in the public market or otherwise following this offering, or the perception that such sales could occur, could adversely affect the market price of our common stock. After completion of this offering at an assumed offering price of $4.50 per share, the midpoint of the estimated initial public offering price range set forth on the cover of this prospectus, our existing stockholders will own approximately [●]% of our common stock, assuming there is no exercise of the underwriters' over-allotment option.

After completion of this offering at an assumed offering price of $4.50 per share, the midpoint of the estimated initial public offering price range set forth on the cover of this prospectus, there will be 19,268,456 shares of our common stock outstanding. In addition, our certificate of incorporation, as amended, permits the issuance of up to approximately additional shares of common stock after the completion of this offering. Thus, we have the ability to issue substantial amounts of common stock in the future, which would dilute the percentage ownership held by the investors who purchase shares of our common stock in this offering.

We and our officers, directors and certain stockholders have agreed, subject to customary exceptions, not to, without the prior written consent of the underwriters, during the period ending 180 days from the date of this offering, directly or indirectly, offer to sell, sell, pledge or otherwise transfer or dispose of any of shares of our common stock, enter into any swap or other derivatives transaction that transfers to another any of the economic benefits or risks of ownership of shares of our common stock, make any demand for or exercise any right or cause to be filed a registration statement, including any amendments thereto, with respect to the registration of any shares of common stock or securities convertible into or exercisable or exchangeable for shares of common stock or any other our securities or publicly disclose the intention to do any of the foregoing.

***There can be no assurance that we enter into anticipated agreements with actors, directors, or other creative talent, following completion of this offering.***

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We have engaged in preliminary discussions with certain actors, directors, and other creative talent regarding potential collaborations and other business relationships. However, these discussions are preliminary in nature, and we have not entered into binding agreements with respect to these matters. There can be no assurance that we will enter into definitive agreements with any of these individuals on favorable terms, or at all, including following the completion of this offering.

Our ability to enter into definitive agreements with such talent depends on numerous factors, many of which are beyond our control, including the availability and scheduling commitments of such individuals, the terms and conditions we are able to negotiate, and competition.

If we are unable to finalize agreements with some or all of the talent with whom we have had discussions, we may be unable to produce certain content that we have planned or announced, or we may be required to seek alternative talent on less favorable terms or with less market appeal. Any of these outcomes could have a material adverse effect on our business, financial condition, results of operations, and prospects.

**USE OF PROCEEDS**

We estimate that the net proceeds from our issuance and sale of shares of our common stock in this offering will be approximately $[●] million, after deducting underwriting discounts and commissions and estimated offering expenses payable by us, or $[●] million if the underwriters exercise their over-allotment option in full.

We currently expect to use the net proceeds of this offering for working capital, offering expenses, and other general corporate purposes, including the creation of a dedicated development fund to transform IP into television series or movies.

We may also use a portion of the proceeds from this offering to acquire or invest in additional intellectual property and to expand our development pipeline. We have not allocated specific amounts of net proceeds for any of these purposes.

The company intends to attract higher profile and more valuable IP as well as develop new and existing IP into franchises that would include sequels, spin-offs, prequels, animated versions, and video games by building on the company's current relationship with Netflix, which is poised to become a major player in online video games.

Each $1.00 increase or decrease in the assumed public offering price of $4.50 per share, the midpoint of the estimated initial public offering price range set forth on the cover of this prospectus, would increase or decrease the net proceeds to us from this offering by approximately $[●], assuming that the amount of shares of common stock offered by us, as set forth on the cover page of this prospectus, remains the same, and after deducting underwriting discounts and commissions payable by us. We may also increase or decrease the number of shares of common stock we are offering. An increase or decrease of [●] shares of common stock offered by us in this offering would increase or decrease the net proceeds to us by approximately $[●], assuming that the assumed price per share to the public remains the same, and after deducting underwriting discounts and commissions payable by us. We do not expect that a change by these amounts in the initial public offering price or the common stock offered by us would have a material effect on our uses of the proceeds from this offering, although it may accelerate the time at which we will need to seek additional capital.

Assuming the maximum amount of shares of common stock are sold by us, we expect that the net proceeds, together with our existing cash and cash equivalents, will enable us to fund our operating expenses and capital expenditure requirements for at least [●] months. In addition, we have granted to the underwriters an option to purchase up to an additional 533,333 shares of common stock, exercisable for 45 days from the date of this prospectus, solely to cover over-allotments, if any. We will use the proceeds from the sale of these additional shares for working capital and general corporate purposes.

The expected use of net proceeds represents our intentions based upon our current plans and business conditions, which could change in the future as our plans and business conditions evolve and change. The amounts and timing of our actual expenditures, specifically with respect to working capital, may vary significantly depending on numerous factors. As a result, our management will retain broad discretion over the allocation of such net proceeds.

In addition, we plan to invest these proceeds in short-term investments until needed for the uses described above.

The dedicated development funds invested by the company are recoupable with a 50% return at the time a project is developed and successfully greenlit for production by a streaming site or studio. The fund is designed to reinvest these funds as received on an expected cash flow timeline of up to 18 months per investment. The dedicated development funds over the 18 months cycle are designed to continue to be reinvested in new IP development, starting a new 18-month cycle utilizing the same funds.

**DIVIDEND POLICY**

We have not historically declared dividends on our common stock, and we do not currently intend to pay dividends on our common stock. The declaration, amount and payment of any future dividends on shares of our common stock, if any, will be at the sole discretion of our board of directors, out of funds legally available for dividends. We anticipate that we will retain our earnings, if any, for the growth and development of our business.

**CAPITALIZATION**

The following table sets forth our cash and cash equivalents and our capitalization as of December 31, 2025 as follows:

● on an actual basis, and

● on a pro forma basis after giving effect to 130,000 shares of Series A Preferred Stock issued in the Bridge Financing in April 2026.

● On a pro forma as adjusted basis after giving effect to the sale and issuance of shares of common stock pursuant to this public offering at an initial public offering price of $4.50 per share, the midpoint of the estimated initial public offering price range set forth on the cover page of this prospectus, after deducting the underwriting discounts and commissions and estimated offering expenses payable by us.

You should read the following table in conjunction with "Use of Proceeds", "Management's Discussion and Analysis of Financial Condition and Results of Operations" and our financial statements and related notes included elsewhere in this prospectus.

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| | | | |
|:---|:---|:---|:---|
|  | **Actual** | **Pro Forma** | **Pro Forma As Adjusted** |
| Cash | $1070 | $97070 | $|
| Total indebtedness | 4482724 | 4162724 |  |
| Stockholders' Equity: |  |  |  |
| Preferred stock, $0.0001 par value; 1,000,000 shares authorized; |  |  |  |
| 237,341 shares issued and outstanding on an actual basis and 367,341 shares issued and outstanding on a pro forma basis, 367,341 shares issued and outstanding on a pro forma as adjusted basis, as of December 31, 2025, respectively | 24 | 37 |  |
| Common stock, $0.0001 par value; 150,000,000 shares authorized; |  |  |  |
| 11,492,500 shares issued and outstanding on an actual basis and 11,492,500 shares issued and outstanding on a pro forma basis, 15,048,056 shares issued and outstanding on a pro forma as adjusted basis, as of December 31, 2025, respectively | 1149 | 1149 |  |
| Additional paid-in capital | 227068 | 227068 |  |
| Accumulated deficit | (14619181) | (14619181) |  |
| Total Stockholders' Equity | $(14390940) | $(14390926) | $|
| Total Capitalization | $(9908217) | $(10228203) | $|

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**DILUTION**

If you invest in our common stock, your interest will be diluted to the extent of the difference between the public offering price per share paid by purchasers of shares in this offering and the pro forma as adjusted net tangible book value per share of our common stock immediately after the completion of this offering.

Our historical net tangible book value (deficit) as of December 31, 2025 was $(14,640,940) or $(1.25) per share of common stock. Our historical net tangible book value (deficit) per share represents our total tangible assets less our total liabilities, divided by the shares of common stock outstanding as of December 31, 2025.

Our pro forma net tangible book value (deficit) as of December 31, 2025 was $(14,224,940) or $(1.20) per share of common stock. Our pro forma net tangible book value (deficit) represents pro forma total tangible assets less pro forma total liabilities and pro forma net tangible book value (deficit) per share represents pro forma net tangible book value divided by the total number of shares outstanding as of December 31, 2025, each after giving effect to the sale and issuance of 130,000 shares of preferred series A stock, pursuant to the Bridge Financing.

Our pro forma as adjusted net tangible book value as of December 31, 2025 was $[●] or $[●] per share of common stock. Our pro forma net tangible book value represents pro forma total tangible assets less pro forma total liabilities and pro forma net tangible book value per share represents pro forma net tangible book value divided by the total number of shares outstanding as of December 31, 2025, each after giving effect to the sale and issuance of 3,555,556 shares of common stock, pursuant to this public offering at an assumed initial public offering price of $4.50 per share of common stock, which is the midpoint of the estimated initial public offering price range set forth on the cover of this prospectus, after deducting underwriting discounts and commissions and estimated offering expenses payable by us. This amount represents an immediate increase in the historical net tangible book value of $[●] per share to existing stockholders and an immediate dilution of $[●] per share to new investors purchasing shares in this offering.

The following table illustrates this dilution on a per share basis to new investors:

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| | |
|:---|:---|
| Assumed public offering price per share | $4.50  |
| Historical net tangible book value per share as of December 31, 2025 | $(1.25) |
| Increase in pro forma net tangible book value (deficit) per share attributed to new investors purchasing shares from us in this offering | $1.21 |
| Pro forma net tangible book value (deficit) per share as of December 31, 2025 after giving effect to this offering | $0.01 |
| Increase in pro forma as adjusted net tangible book value (deficit) per share | $[●] |
| Pro forma as adjusted net tangible book value (deficit) per share as of December 31, 2025 | $[●] |
| Dilution per share to new investors in this offering | $[●] |

---

A $1.00 increase (decrease) in the assumed public offering price of $4.50 per share would increase (decrease) the pro forma as adjusted net tangible book value per share by approximately $[●], assuming the number of shares of common stock offered by us, as set forth on the cover page of this prospectus, remains the same, after deducting underwriting discounts and commissions.

The following table summarizes as of December 31, 2025, on the pro forma as adjusted basis described above, the number of shares of our common stock, the total consideration and the average price per share (i) paid to us by our existing stockholders, and (ii) to be paid by investors purchasing shares of our common stock in this offering at an assumed public offering price of $4.50 per share, before deducting underwriting discounts and commissions and estimated offering expenses payable by us:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Shares Purchased** | **Shares Purchased** | **Shares Purchased** | **Total Consideration** | **Total Consideration** | **Weighted Average Price** |
|  | **Amount ($)** | **Percent** | **Amount ($)** | **Percent** | **Per share ($)** |
| Existing stockholders | 11859841 | 77% | 655841 | 4% | 0.06 |
| New investors | 3555556 | 23% | 16000002 | 96% | 4.50 |
| Total | 15415397 | 100% | 16655843 | 100% | 1.08 |

---

Total consideration includes approximately $96,000 of cash proceeds and $320,000 related to non-cash consideration from the extinguishment of debt. Certain shares of common stock were issued for nominal consideration and are reflected as $0 for purposes of this table.

The number of shares that will be outstanding after this offering is based on 11,492,500 shares of common stock outstanding as of December 31, 2025, but excludes:

● 7,416,132 shares of our common stock issuable upon the exercise of warrants outstanding as of December 31, 2025 with a weighted average exercise price of $1.88 per share; and

● 1,042,176 shares of our common stock issuable upon the conversion of convertible notes outstanding as of December 31, 2025 with a weighted average conversion price of $2.25 per share.

● No exercise by the underwriters of the over-allotment option.

● No exercise of any Representative's Warrants.

To the extent that new options or other securities are issued under our equity incentive plan, or we issue additional shares of common stock or preferred stock in the future, there will be further dilution to investors participating in this offering. In addition, we may choose to raise additional capital because of market conditions or strategic considerations, even if we believe that we have sufficient funds for our current or future operating plans. If we raise additional capital through the sale of equity or convertible debt securities, the issuance of these securities could result in further dilution to our stockholders.

**MANAGEMENT'S DISCUSSION AND ANALYSIS**

**OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS**

*You should read the following discussion of our financial condition and results of operations in conjunction with our financial statements and related notes included elsewhere in this prospectus. This management's discussion and analysis, and other parts of this prospectus, contain forward-looking statements based upon current beliefs, plans, and expectations that involve risks, uncertainties, and assumptions. Our actual results and the timing of selected events could differ materially from those anticipated in these forward-looking statements due to several factors, including those set forth under "Risk Factors" and elsewhere in this prospectus. You should carefully read the "Risk Factors" section of this prospectus to understand the important factors that could cause actual results to differ materially from our forward-looking statements. Please also see the "Special Note Regarding Forward-Looking Statements" section in this prospectus.*

**Overview**

Incorporated in Nevada in September 2020, Ambitious Entertainment is a leading independent media entertainment company which sources, finances, develops and produces IP-based series and movies in "partnership" with the industry's foremost creative artists, streaming sites and studios. Collectively the Ambitious team have earned more than $4 billion in box office as well as accolades that include three Academy Awards: Best Picture Oscar 2010, Best Adapted Screenplay Oscar 2019 and Best Original Screenplay Oscar 2018. Ambitious markets its specialized IP development services to all major studios, streamers, and agencies, with the Ambitious Team meeting with heads all major studios, streaming sites, and key distributors monthly in Los Angeles, California. Leading executives in Hollywood actively seek out our producers review our current slate of projects and to bring Ambitious new projects to develop and package.

**Results of Operations**

The following analysis of results of operations is based primarily on the consolidated financial statements, footnotes and related information for the periods identified below and should be read in conjunction with the audited consolidated financial statements and the notes thereto for the years ended December 31, 2025 and 2024 included elsewhere in this registration statement. The results discussed below are for the years ended December 31, 2025 and 2024.

---

| | | |
|:---|:---|:---|
|  | **For the Years Ended** | **For the Years Ended** |
|  | **December 31,** | **December 31,** |
|  | **2025** | **2024** |
| Total revenue | $1225000 | $9289445 |
| Cost of revenue | (1225000) | (10330076) |
| Gross profit |  | (1040631) |
| Shared-based compensation | (475000) |  |
| Professional fees | (879645) | (137940) |
| Consulting | (623289) | (128000) |
| Marketing and advertising |  | (7747) |
| Operating expenses | (181715) | (465093) |
| Other income |  | 23099 |
| Interest expense | (504650) | (953163) |
| Gain on transfer of corporate and member interest | 1008070 | 1933261 |
| Change in fair value of derivative liability | 342626 | (201422) |
| Loss on issuance of convertible debt | (362912) | (226820) |
| Loss on impairment of investment | (128650) | (85837) |
| Exchange loss | (7333) | - |
| Net loss | $(1812498) | $(1290293) |

---

**Revenue**

In the years ended December 31, 2025, and 2024, the Company engaged in the development and production of IP-based movies and recognized revenue of $1,225,000 and $9,289,445, respectively.

*Revenue Concentration*

 

The Company's revenue is derived from production service contracts resulting in a concentration of revenue among a limited number of customers. The following table summarizes the revenue generated for the years ended December 31, 2025, and 2024:

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| | | | | |
|:---|:---|:---|:---|:---|
| | **Years Ended**<br>**December 31,**<br>**2025** | | **Years Ended**<br>**December 31,**<br>**2024** | |
| <br>**Film** | **Revenue** | <br>**% of Total Revenue** | **Revenue** |<br><br>**% of Total Revenue** |
| AMFAD | $- | N/A | $396257 | 4.27% |
| CD |  | N/A | 10440 | 0.11% |
| VPER |  | N/A | 1048780 | 11.29% |
| FATE |  | N/A | 4851181 | 52.22% |
| GOR |  | N/A | 2278787 | 24.53% |
| Other | 1225000 | 100.00% | 704000 | 7.58% |
| **Total** | $**1225000** |  | $**9289445** |  |

---

Revenue decreased to $1.2 million for the year ended December 31, 2025 from $9.3 million for the year ended December 31, 2024, representing a decrease of $8.1 million, or approximately 87%.

The decline was primarily attributable to a significant reduction in the number and scale of film projects in active production and distribution during 2025 as compared to 2024. During 2024, the Company generated revenue from multiple film productions, including projects that reached key revenue recognition milestones and distribution events. In contrast, during 2025, the Company's activities were substantially limited to a small number of licensing and fixed-fee production service arrangements.

Additionally, 2025 revenue was derived primarily from fixed-fee production service agreements structured to reimburse substantially all direct production costs. As a result, both revenue and cost of revenue were significantly lower than the prior year, when the Company bore greater production risk and incurred higher aggregate production expenditures.

Management strategically limited new production commitments during 2025 while prioritizing capital markets initiatives, liquidity management, and a repositioning of its production strategy. In 2025, the Company made a strategic decision to significantly slow its conventional film production activities and pivot toward researching and developing its influencer-integrated movie model, including the development of distinct, themed content slates. This shift in operational focus contributed directly to the reduction in revenue-generating projects during the period and the corresponding decline in revenue as compared to 2024.

The Company believes this transitional period is intended to reposition its production capabilities and align its future projects with its influencer-driven model. The Company currently expects to begin launching a cohesive film slate reflecting this strategy in the second quarter of 2026, alongside the debut of a new television slate. This model is designed to integrate influencer audience metrics and targeted digital reach into traditional production frameworks and to explore additional monetization channels, including direct-to-fan engagement models, platform-specific content extensions, proprietary merchandise initiatives, and ancillary distribution opportunities.

There can be no assurance that this strategic repositioning will generate the anticipated results or that future revenues will increase as a result of these initiatives.

For the year ended December 31, 2025, the Company generated its revenue in connection with a production service agreement with one studio, representing 100% of its revenue from the studio. For the year ended December 31, 2024, Customer FATE accounted for 52% of total revenue, representing the largest single customer. The reliance on a concentrated customer base poses risks to the Company's revenue stability, as the loss of or reduced activity from any significant customer could adversely impact financial results.

**Cost of Revenues**

Costs of revenue for the years ended December 31, 2025, and 2024, totaled $1,225,000 and $10,330,076, respectively.

Cost of revenue decreased to $1.2 million for the year ended December 31, 2025 from $10.3 million for the year ended December 31, 2024. The decrease was directly correlated with the reduced level of production activity during 2025. In 2024, the Company incurred substantial production expenditures, including cost overruns and impairment charges. In 2025, costs were primarily associated with fixed-fee production service arrangements, which were structured to approximate the related revenue recognized.

**Gross Profit Volatility Analysis**

For the year ended December 31, 2025, the Company recognized revenue of $1,225,000, which was fully offset by cost of revenue of $1,225,000, resulting in zero gross profit for the period. This compares to a gross loss of $1.0 million for the year ended December 31, 2024.

For the year ended December 31, 2025, the Company recognized revenue of $1,225,000, which was fully offset by cost of revenue of $1,225,000, resulting in zero gross profit. The 2025 revenue was generated primarily under a licensing arrangement in conjunction with fixed-fee production service agreements pursuant to which the Company agreed to produce films for a contractually fixed fee of approximately $600,000 per project. Because the production service fees were structured to reimburse substantially all direct production costs, the related cost of revenue approximated the revenue recognized, resulting in no gross margin for the period.

This compares to a gross loss of $1.0 million for the year ended December 31, 2024. The gross loss in 2024 was primarily driven by the following factors:

&nbsp;&nbsp;&nbsp;&nbsp;1. **Film Production Cost Overruns** Two
 of the Company's film productions incurred unexpected cost overruns totaling approximately
 $1.8 million. These overruns were primarily attributable to increased labor costs and higher-than-anticipated
 post-production expenses. In response, the Company has implemented enhanced budgetary controls
 and monitoring processes to mitigate the risk of future cost overruns.

&nbsp;&nbsp;&nbsp;&nbsp;2. **Recognition of Costs Related to Fully Recognized Revenue** During
 2024, the Company recognized approximately $650,000 of cost of revenue related to an investment
 in a film for which all associated revenue was fully recognized during the year. The timing
 of these cost recognitions had a significant negative impact on gross profit.

&nbsp;&nbsp;&nbsp;&nbsp;3. **Impairment of Third-Party Film Investment** The
 Company recorded an impairment charge of $85,837 related to an investment in a third-party
 film. This impairment reflects management's assessment of the project's future
 recoverability and is consistent with the Company's impairment policy.

&nbsp;&nbsp;&nbsp;&nbsp;4. **Labor and Material Inflation** Inflationary
 pressures within the entertainment industry during 2024, particularly related to labor and
 production materials, further contributed to elevated production costs.

While an impairment of approximately $0.1 million was recognized during 2025, this represents a significant decrease compared to 2024, when total production costs of approximately $10.3 million reflected an elevated risk profile associated with certain projects. Management continues to address these risks through enhanced cost management practices and increased project-level oversight.

**Operating Expenses**

Operating expenses increased to $2,159,649 for the year ended December 31, 2025, from $738,780 for the year ended December 31, 2024, representing an increase of $1,420,869, or approximately 192%.

The increase was primarily attributable to:

● **Professional fees**, increased to $879,645 in 2025 from $137,940 in 2024, resulting in an increase of $741,705 or approximately 538%. The increase is primarily due to higher legal, accounting, audit, and advisory costs incurred in connection with the Company's preparation for a potential public offering and related corporate matters.

● **Consulting expenses**, increased to $623,289 in 2025 from $128,000 in 2024, resulting in an increase of $495,289 or approximately 387%. The increase reflects the engagement of strategic, financial, and operational consultants to support capital markets readiness and corporate development initiatives.

● **Share-based compensation** increased to $475,000 in 2025 from $0 in 2024, resulting to an increase of $475,000 or 100%. The increase is due to equity awards granted for advisory services.

These increases were partially offset by a decrease in marketing and advertising and other general and administrative expenses to $0 and $181,715 in 2025 from $7,747 and $465,093 in 2024, resulting in a decrease of $7,747 and $283,378 or approximately 100% and 61%, respectively. The decrease is primarily reflecting reduced marketing and advertising efforts and administrative costs compared to the prior year.

Management expects professional fees and consulting expenses to remain elevated in the near term as the Company continues to pursue capital markets activities.

**Other Income**

The Company did not generate other income for the year ended December 31, 2025. Other income for the year ended December 31, 2024 totaled $23,099 and primarily consisted of interest income and bond refunds.

**Interest Expense**

Interest expense for the years ended December 31, 2025, and 2024, totaled $504,650 and $953,163, respectively related to production loans and convertible notes. The reduction of interest expense of $448,513 or 47% directly related to the reduction of film projects in 2025 compared to 2024 due to decreased production financing needed.

**Loss on issuance of debt**

The Company recorded a loss on issuance of convertible debt of $362,912 and $226,820, resulting in an increase of $136,092 or approximately 60% for the years ended December 31, 2025, and 2024, respectively.

**Gain on transfer of corporate and member interest**

For the year ended December 31, 2025, the Company recognized a gain of $1,008,070 on the transfer of corporate and member interests related to one subsidiary. For the year ended December 31, 2024, the Company recognized gains totaling $1,933,261 related to the transfer of corporate and member interests in four subsidiaries.

**Change in fair value of derivative liability**

The Company recorded a gain from changes in the fair value of derivative instruments of $342,626 for the year ended December 31, 2025, compared to a loss of $201,422 for the year ended December 31, 2024. This represents a favorable change of $544,048, or 270%, year over year. The fluctuation was primarily attributable to changes in key valuation assumptions, including the anticipated conversion price of the related debt instruments, discount rates, and expected volatility applied in the valuation model.

**Non-GAAP Financial Measure**

In addition to our financial results prepared in accordance with generally accepted accounting principles (GAAP), we use certain non-GAAP financial measures, including earnings before interest, taxes, depreciation, and amortization ("EBITDA"), to evaluate our operational performance and enhance comparability across periods. Adjusted EBITDA, defined as net income (loss) adjusted to exclude the impact of depreciation, amortization, change in fair value of derivative liabilities, and stock-based compensation, provides useful insight into the company's underlying business performance by excluding non-cash expenses and other items that management considers not indicative of our core operating results. This measure should be viewed as a supplement to, not a substitute for, our GAAP results. Below is a reconciliation of Net Loss, the most directly comparable GAAP measure, to Adjusted EBITDA for the periods presented.

**Reconciliation of Net Loss to Adjusted EBITDA:**

---

| | | |
|:---|:---|:---|
|  | **December 31,** | **December 31,** |
|  | **2025** | **2024** |
| Net loss per GAAP | $(1812498) | $(1290293) |
| Additions: |  |  |
| &nbsp;&nbsp;&nbsp;Interest | 504650 | 953163 |
| &nbsp;&nbsp;&nbsp;Taxes |  |  |
| &nbsp;&nbsp;&nbsp;Depreciation |  |  |
| &nbsp;&nbsp;&nbsp;Amortization |  |  |
| &nbsp;&nbsp;&nbsp;Stock-Based Compensation | 475000 |  |
| &nbsp;&nbsp;&nbsp;Change in Fair Value of Derivative Liabilities | (342626) | 201422 |
| Adjusted EBITDA (Non-GAAP) | $(1175474) | $(135708) |

---

**Liquidity and Capital Resources**

***Liquidity***

 ****

On December 31, 2025, we had negative working capital of $14,390,940, which included cash of $1,070. We reported a net loss of $1,761,069 and our net cash used in operating expenses totaled $1,068,619, our cash used in investing totaled $23,397, and our cash provided by financing activities totaled $1,132,172.

Our sources and uses of cash were as follows:

***Cash Flows from Operating Activities***

We experienced negative cash flows from operating activities for the year ended December 31, 2025, in the amount of $1,068,619. The net cash used in operating activities for the year ended December 31, 2025, primarily reflected a net loss of $1,761,069 adjusted for the add-back of non-cash items consisting of amortization of debt discount and debt issuance cost of $196,981, loss on issuance of convertible debt of $362,912, an increase in stock based compensation of $475,000, impairment loss of $128,650, offset by a change in fair value derivative of $342,625, a non-cash gain on the transfer of interest in subsidiaries of $1,008,070, and with changes in operating assets and liabilities consisting of an increase in accounts payable of $184,373, an increase in accrued expenses of $685,169, a decrease in accounts receivable of $5,060, and a decrease of prepaid expenses of $5,000.

We experienced negative cash flows from operating activities for the year ended December 31, 2024, in the amount of $4,714,924. The net cash used in operating activities for the year ended December 31, 2024, primarily reflected a net loss of $1,300,595 adjusted for the add-back of non-cash items consisting of amortization of debt discount and debt issuance cost of $273,877, loss on issuance of convertible debt of $226,820, a change in fair value derivative of $201,422, impairment loss of $85,837, offset by a non-cash gain on the transfer of interest in subsidiaries of $1,933,261, and with changes in operating assets and liabilities consisting of an increase in accounts payable of $463,551, an increase in accrued expenses of $690,138, an increase in accounts receivable of $2,866,923, an increase of tax credit receivable of $681,727, an increase in other receivable of $28,101, a decrease in subscription receivable of $5,000, a decrease in other receivable of $25,428, and a decrease of prepaid expenses of $123,610.

***Cash Flows from Investing Activities***

 

We experienced negative cash flows from investing activities of $23,397 for the year ended December 31, 2025 compared to negative cash flows from investing activities of $109,765 for the year ended December 31, 2024.

 

***Cash Flows from Financing Activities***

Net cash provided by financing activities was $1,132,172 for the year ended December 31, 2025. During the year, the Company received proceeds from the issuance of notes payable of $25,000, advances from related parties of $1,035,935, proceeds from the issuance of common stock of $2,500, and proceeds from the issuance of convertible debt of $200,000. These inflows were partially offset by repayments of advances from related parties totaling $131,263.

Net cash provided by financing activities was $5,155,441 for the year ended December 31, 2024. During the year, the Company received proceeds from production financing of $3,591,017, advances from related parties of $217,005, proceeds from short term production loans of $242,702, proceeds from the issuance of convertible debt of $125,000, and capital contributions of $2,146,778. These inflows were partially offset by repayments of production financing of $1,048,893, an adjustment of $4,951 related to the issuance of common stock, and repayments of advances from related parties of $101,572. The Company also paid debt issuance costs of $11,645.

***Non-Cash Transfers of Interest***

 ****

On January 1, 2025, the Company executed an Instrument of Transfer of Limited Liability Company Interest, pursuant to which it transferred its 100% ownership interest in FATE USA, LLC ("FATE") to an unrelated third-party transferee for total consideration of $10. FATE owned the film rights to *FATE* (See Note 14).

On March 31, 2024, the Company transferred its 100% interest in AMFAD and CD, to Press Play Productions, LLC, a related party for a total consideration of $20. The transferred subsidiaries owned the film rights to *All My Friends are Dead* and *Cold Deck* (See Note 14).

Additionally, on March 31, 2024, the Company transferred its 100% interest in Viper to an unrelated third party for total consideration of $10. The transferred subsidiary owned the film rights to *Viper* (See Note 14).

On August 14, 2024, the Company transferred 80% of its ownership interest in DMH Production LLC equally to two unrelated third parties for total consideration of $10. The Company retained a 20% ownership interest in DMH post-transaction. The transferred subsidiary owned the film rights to *Dead Man's Hand* (See Note 14).

Finally, on December 1, 2024, the Company transferred its 100% interest in GOR to an unrelated third party for total consideration of $10. The transferred subsidiary owned the film rights to *Guns of Redemption* (See Note 14).

The transfer agreements provided for nominal consideration of $10 per entity, which was non-cash in nature. The consideration amount was contractually stated and negotiated between the parties. Because the transferee is a related party, management evaluated the transaction under ASC 850 and concluded that the terms were consistent with the economic substance of the arrangement.

In determining that nominal consideration was appropriate, management considered that the subsidiaries had no significant ongoing operations, limited liquidity, and no probable future cash flows. The transferee assumed all known and contingent liabilities and contractual obligations. Based on these factors, management concluded that the consideration approximated fair value and that no retained interest existed.

As a result of these transfers, the Company will no longer recognize any future revenues or expenses associated with these specific film projects; however, because each project was individually structured and had no probable future cash flows at the time of transfer, management does not expect the transactions to have a material impact on future consolidated results of operations, margins, liquidity, or risk profile.

**Related Party Disclosure**

Press Play Productions, LLC, is a related party. The president of Press Play Productions is the son of the Company's Chief Executive Officer ("CEO"). The transfer of AMFAD and CD included provisions stipulating that the transferee assumes all contractual obligations and liabilities of the transferred subsidiaries, and the transferor retains no further responsibility for these obligations.

**Reason for the Transfer**

The transfers were part of the Company's strategy to divest film projects once all anticipated revenue had been realized and the Company determined that there would be no further significant benefit derived from retaining the films. This strategy aligns with the Company's focus on producing new film projects rather than managing completed ones.

**Accounting Treatment**

The transfers of interest were accounted for as deconsolidation of subsidiaries. As a result:

● For the year ended December 31, 2025, a pre-tax gain of $1,008,070 was recognized in the consolidated statement of operations under "Other Income (Expenses)" as a Gain on Transfer of Corporate and Member Interest.

● For the year ended December 31, 2024, a pre-tax gain of $1,933,261 was recognized in the consolidated statement of operations under "Other Income (Expenses)" as a Gain on Transfer of Corporate and Member Interest.

The results of operations of FATE were included in the consolidated financial statements January 1, 2025.

The results of operations of AMFAD, CD, and Viper were included in the consolidated financial statements through March 31, 2024. The results of operations of DMH were included in the consolidated financial statements through August 14, 2024. The results of operations of GOR were included in the consolidated financial statements through December 1, 2024.

**Financial Impact**

The following balances were removed from the consolidated balance sheet as of the respective transfer dates:

**January 1, 2025 (FATE):**

● Total assets: $440,228

● Total liabilities: $1,448,437

● Net liabilities: $1,008,149

**March 31, 2024 (AMFAD, CD, and Viper):**

● Total assets: $6,361,903

● Total liabilities: $5,659,783

● Net assets: $692,120

**August 14, 2024 (DMH):**

● Total assets: $887,535

● Total liabilities: $2,290,423

● Net liabilities: $1,402,888

**December 1, 2024 (GOR):**

● Total assets: $2,278,857

● Total liabilities: $3,700,350

● Net liabilities: $1,421,493

**Cash Flow Statement Impact**

The transactions had no direct cash flow impact, as no cash was received.

**Post-Transfer Obligations**

Under the terms of the transfer agreements, the transferees assumed all contractual obligations and liabilities of the respective subsidiaries. The Company retains no post-transfer obligations related to these entities.

**Related Party Notes Payable**

 

As of December 31, 2025, and December 31, 2024, the Company had related party notes payable of $1,538,004 and $633,332, respectively. All related-party notes are unsecured, bear interest at 10% per annum (calculated yearly, not in advance), and are repayable upon the Company obtaining third-party financing, at which time 25% of such financing proceeds will be applied to the outstanding balances until repaid in full or until their respective maturity dates.

The related-party borrowings consist of several notes issued to entities and individuals affiliated with the Company. The Company has an outstanding note with JC3 Production that was executed on December 31, 2023, with a principal amount of $25,000 and a maturity date of December 31, 2026; no advances or repayments have occurred since issuance. The Company also has a note with Roots Properties Inc. executed on December 31, 2022, with a principal balance of $211,490 and a maturity date of December 31, 2025, for which there have been no advances or repayments. In addition, the Company executed a second note with Roots Properties Inc. on December 31, 2023, providing for borrowings of up to $300,000 and maturing on December 31, 2026; as of December 31, 2025, the Company has received advances totaling $189,735 and has made repayments of $24,000 on this note.

The Company also issued a note to Kirk Shaw, the Chief Executive Officer, on December 31, 2023, with a principal amount of $255,088 and a maturity date of December 31, 2026; one repayment of $30,073 has been made on this obligation. On December 31, 2023, the Company entered into another note with Mr. Shaw permitting borrowings of up to $300,000, which was subsequently replaced by a new note executed on September 30, 2025, permitting borrowings of up to $900,000 and maturing on December 31, 2026. As of December 31, 2025, advances under this note totaled $1,014,005 and repayments totaled $159,834.

During the year ended December 31, 2024, the Company received $217,005 in advances from related parties, the Company made repayments of $101,572 and the Company transferred $376,890 of related party obligations as a result of corporate and membership transfer interest agreements.

During the year ended December 31, 2025, the Company received $1,035,935 in advances from related parties, the Company made repayments of $131,262.

**Capital Contributions**

 

During the year ended December 31, 2024, related parties made cash contributions of $2,146,778 to Guns of Redemption, a consolidated subsidiary of the Company, to support ongoing operations. These contributions were non-interest bearing, had no stated maturity, and created no repayment obligation. The contributions were recorded directly to the equity accounts of the subsidiary and were intended to be treated as permanent additions to capital.

As a result, these capital contributions are reflected within cash flows from financing activities in the consolidated statement of cash flows. However, because the contributions were made at the subsidiary level and were subsequently included in the equity of the subsidiary that was transferred as part of the disposition of ownership interest, they are not presented in the Company's consolidated statements of changes in shareholders' deficit.

**Availability of Additional Funds**

Based upon our cash and working capital deficiency, we require additional equity and/or debt financing to continue our operations. These conditions indicate that there is substantial doubt about our ability to continue as a going concern within one year after the date that the financial statements are issued.

We are currently funding our operations on a month-to-month basis. However, after the IPO, we plan to raise additional funds through additional financings.

**Critical Accounting Policies and Significant Accounting Estimates**

Our management's discussion and analysis of our financial condition and results of operations are based on our financial statements, which have been prepared in accordance with accounting principles generally accepted in the United States, or GAAP. The preparation of these financial statements requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities as of the date of the financial statements as well as the reported expenses during the reporting periods. The accounting estimates that require our most significant, difficult, and subjective judgments have an impact on revenue recognition, the determination of share-based compensation, and financial instruments. We evaluate our estimates and judgments on an ongoing basis. Actual results may differ materially from these estimates under different assumptions or conditions.

Our significant accounting policies are more fully described in our financial statements in Note 2 in our audited consolidated financial statements as of and for the years ended December 31, 2025, and 2024.

**Fair Value Measurements**

The Company follows accounting guidelines on fair value measurements for financial instruments measured on a recurring basis, as well as for certain assets and liabilities that are initially recorded at their estimated fair values. Fair value is defined as the exit price, or the amount that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants as of the measurement date. The Company uses the following three-level hierarchy that maximizes the use of observable inputs and minimizes the use of unobservable inputs to value its financial instruments:

● Level 1: Observable inputs such as unadjusted quoted prices in active markets for identical instruments.

● Level 2: Quoted prices for similar instruments that are directly or indirectly observable in the marketplace.

● Level 3: Significant unobservable inputs which are supported by little or no market activity and that are financial instruments whose values are determined using pricing models, discounted cash flow methodologies, or similar techniques, as well as instruments for which the determination of fair value requires a significant judgment or estimation.

Financial instruments measured at fair value are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. The Company's assessment of the significance of a particular input to the fair value measurement in its entirety requires the Company to make judgments and consider factors specific to the asset or liability. The use of different assumptions and/or estimation methodologies may have a material effect on estimated fair values. Accordingly, the fair value estimates disclosed, or initial amounts recorded, may not be indicative of the amount that the Company or holders of the instruments could realize in a current market exchange.

The carrying amounts of the Company's financial instruments including cash, prepaid expenses, accounts payable and accrued liabilities approximate fair value due to the short-term maturities of these instruments.

**Stock-based Compensation**

The Company accounts for stock-based compensation in accordance with ASC 718, which requires that the fair value of equity awards be estimated at the grant date. The determination of the fair value of our common stock for stock-based awards requires significant judgment, particularly because the Company is privately held and does not have a public market for its shares. Stock-based compensation expense is recognized over the requisite service period.

We believe the fair value of our common stock represents a reasonable estimate at the grant date; however, changes in the underlying assumptions, including the estimated value of our common stock, could materially affect the amount of stock-based compensation expense recognized in future periods.

**Content Assets**

The Company sources intellectual property ("IP") to create and develop original film and video content for sale or distribution to third parties. Content assets related to original productions consist of the unamortized costs of completed and in-process video content produced by the Company. Capitalized costs include direct production costs, production overhead, and financing costs, including capitalized interest when applicable.

Content assets are monetized individually and are reviewed for impairment on a title-by-title basis when events or changes in circumstances indicate that the carrying value may not be recoverable.

The Company did not capitalize any content assets during the years presented, and no amortization or impairment related to content assets was recorded during those periods. The Company expects to capitalize content assets in future periods as it begins production activities.

**Impairment of Long-lived Assets**

The Company reviews its long-lived assets whenever events or changes in circumstances indicate that the carrying amount of an asset might not be recoverable. An impairment loss would be recognized when projected undiscounted future cash flows are less than its carrying amount. The expected cash flows are based on assumptions regarding the Company's future business outlook. Actual results could differ from these assumptions. The Company did not record any impairment losses during the year ended December 31, 2025, and 2024.

**Revenue recognition**

The Company recognizes revenue in accordance with Accounting Standards Codification ("ASC") Topic 606, *Revenue from Contracts with Customers* ("ASC 606"). Revenue is recognized when control of the promised goods or services is transferred to customers in an amount that reflects the consideration to which the Company expects to be entitled in exchange for those goods or services.

To determine revenue recognition for arrangements within the scope of ASC 606, the Company applies the following five-step model:

(1) Identify the contract(s) with a customer;

(2) Identify the performance obligations in the contract;

(3) Determine the transaction price;

(4) Allocate the transaction price to the performance obligations in the contract; and

(5) Recognize revenue when (or as) the entity satisfies a performance obligation.

(4) Allocate the transaction price to the performance obligations in the contract; and

(5) Recognize revenue when (or as) the entity satisfies a performance obligation.

The Company applies the five-step model to contracts when it is probable that it will collect the consideration to which it is entitled in exchange for the goods or services transferred. At contract inception, the Company evaluates the promised goods or services in each contract to identify performance obligations and determines whether each promised good or service is distinct. Revenue is recognized in an amount equal to the transaction price allocated to the respective performance obligations when (or as) those performance obligations are satisfied.

**Disaggregation of Revenue**<br>

For the years ended December 31, 2025 and 2024, 100% of the Company's revenue was derived from production services. The Company did not generate revenue from feature films or licensing activities during these periods.

**Production Services Revenue**<br>

The Company generates revenue from production service agreements pursuant to which it provides production-related services to customers.

Revenue from production service agreements is recognized over time as the Company satisfies its performance obligations because the services are performed for the customer and the customer simultaneously receives and consumes the benefits of those services as they are provided.

Progress toward completion is measured using an input method based on costs incurred relative to total estimated costs (the "cost-to-cost" method), which the Company believes best depicts the transfer of control of services to the customer. Revenue is recognized based on the proportion of costs incurred to total estimated costs.

Costs associated with production service agreements are expensed as incurred. The determination of total estimated costs involves significant judgment and is reviewed on a periodic basis. Revisions to cost estimates are recorded in the period in which the facts that give rise to the revision become known.

**Contract Balances**<br>

The Company's contract balances include the following:

● **Deferred Revenue:** Represents payments received in advance of the performance obligations being satisfied.

● **Content Assets:** Capitalized costs related to feature film programming rights, which are deferred and recognized as revenue when the rights are transferred to the customer.

The Company had no deferred revenue or capitalized content assets as of December 31, 2025 and 2024. The above descriptions of contract balances, including content assets, are provided for informational purposes and relate to arrangements that may be entered into in future periods.

**Performance Obligations**<br>

The Company satisfies its performance obligations for production services over time, accounting for 100% of the Company's total revenue for the years ended December 31, 2025, and December 31, 2024. The satisfaction of performance obligations is measured using the percentage-of-completion method, as described above.

For the years presented, there were no material unsatisfied performance obligations as of the balance sheet date.

**Cost of Revenue**

Costs incurred to produce feature films are capitalized when incurred and expensed when the movie rights are transferred. For production service agreements, costs are recognized in proportion to the percentage of completion, consistent with the revenue recognition method.

The costs incurred to acquire feature film programming rights, including advances, are capitalized.

**Income Taxes**

Income taxes are accounted for using an asset and liability approach for financial accounting and reporting for income taxes and recognition and measurement of deferred assets are based upon the likelihood of realization of tax benefits in future years. Under this method, deferred taxes are provided for the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Valuation allowances are established when management determines that it is more likely than not that some portion or all of the net deferred tax asset, on a jurisdiction-by-jurisdiction basis, will not be realized. The financial effect of changes in tax laws or rates is accounted for in the period of enactment.

From time to time, the Company engages in transactions in which the tax consequences may be subject to uncertainty. Significant judgment is required in assessing and estimating the tax consequences of these transactions. In determining the Company's tax provision for financial reporting purposes, the Company establishes a reserve for uncertain tax positions unless such positions are determined to be more likely than not of being sustained upon examination, based on their technical merits. The Company's policy is to recognize interest and/or penalties related to income tax matters in income tax expense.

The Company has recognized a full valuation allowance of $5,118,649 against its deferred tax assets as of December 31, 2025, and $4,647,488 as of December 31, 2024. This valuation allowance reflects management's assessment that it is more likely than not that the deferred tax assets, including net operating loss carryforwards of approximately $7.4 million, will not be realized. The primary basis for this conclusion is the Company's cumulative losses in recent periods, which represent significant negative evidence under applicable accounting guidance.

Deferred tax assets and liabilities arise from temporary differences between the carrying values of assets and liabilities for financial reporting purposes and their respective tax bases. Despite the availability of significant net operating loss carryforwards that do not expire until 2039, the lack of sufficient taxable income in the foreseeable future to offset these carryforwards necessitated the valuation allowance.

Management continuously evaluates both positive and negative evidence in assessing the realizability of deferred tax assets. Positive evidence includes the potential for future profitability and the expected utilization of net operating losses, while negative evidence includes recent operating performance and industry-specific challenges. At this time, the weight of the negative evidence, particularly the cumulative losses incurred in recent years, supports the decision to maintain a full valuation allowance.

The Company will reassess the valuation allowance on a quarterly basis and adjust it if sufficient positive evidence becomes available to support the realizability of deferred tax assets.

**Segment Information**

The Company determines its operating segments in accordance with ASC 280, *Segment Reporting*, using the management approach. Operating segments are identified based on how the Company's chief operating decision maker ("CODM") organizes the business for purposes of making operating decisions, assessing performance, and allocating resources.

Management has determined that the Company operates as a single operating and reportable segment. The CODM evaluates financial performance and allocates resources on a consolidated basis and does not regularly review disaggregated financial information by individual film, service line, or geographic region.

Although the Company produced films in both the United States and Canada during 2025 and 2024, management concluded that these activities do not have materially different economic characteristics. Production activities across geographies generate comparable profit margins, are subject to similar cost structures (including production expenses and tax incentives), and serve the same customer base, primarily major studios and streaming platforms. While the geographic mix of productions varied between periods, these differences did not result in materially different risks or returns.

The Company utilizes centralized corporate and administrative functions, including executive oversight, financial management, and compliance, across all film productions. While individual productions may require localized personnel or project-specific equipment, these differences are operational in nature and do not materially affect the economic characteristics of the Company's activities.

Based on these factors, management concluded that the Company's film productions may be aggregated into a single reportable segment due to their similar economic characteristics, production processes, and customer base. Management also evaluated the quantitative thresholds for identifying additional reportable segments and determined that no individual film or group of films met the criteria for separate segment reporting. The Company will continue to reassess its segment reporting as its operations evolve.

**Derivative Financial Instruments**

The Company does not use derivative instruments to hedge exposures to cash flow, market or foreign currency risks. We evaluate all of our financial instruments to determine if such instruments are derivatives or contain features that qualify as embedded derivatives. For derivative financial instruments that are accounted for as liabilities, the derivative instrument is initially recorded at its fair value and is then re-valued at each reporting date, with changes in the fair value reported in the statements of operations. For our derivative financial instruments, the Company used a Black Scholes valuation model to value the derivative instruments at inception and on subsequent valuation dates. The classification of derivative instruments, including whether such instruments should be recorded as liabilities or as equity, is evaluated at the end of each reporting period. Derivative liabilities are classified in the balance sheet as current or non-current based on whether or not net-cash settlement or conversion of the instrument could be required within twelve (12) months of the balance sheet date.

**Sensitivity Analysis**

The fair value of derivative liabilities is sensitive to changes in key inputs:

● **Volatility**: A 5% increase (decrease) in volatility would increase (decrease) the fair value by nominal amount.

● **Risk-Free Rate**: A 50-basis point increase (decrease) in the risk-free interest rate would increase (decrease) the fair value by approximately $2,700.

The inputs used to calculate the derivative values are as follows:

---

| | | |
|:---|:---|:---|
|  | Years ended | Years ended |
|  | December 31, | December 31, |
|  | 2025 | 2024 |
| Stock price | $0.79 - 2.50 | $0.79 - 2.50 |
| Expected term | 0.16 – 5 | 0.26 - 3.17 |
| Expected average volatility | 50% | 66% |
| Expected dividend yield |  |  |
| Risk-free interest rate | 3.47 - 4.16% | 3.88 - 5.25% |

---

The following table summarizes the changes in the derivative liabilities during the year ended December 31, 2025, and 2024:

---

| | |
|:---|:---|
| **Fair Value Measurements Using Significant Unobservable Inputs (Level 3)** | |
| Balance – January 1, 2024 | $7908430 |
| Addition of new derivatives recognized as warrants | 277578 |
| Addition of new derivatives recognized as conversion feature | 86743 |
| Loss on change in fair value of the derivative | 201422 |
| Balance - December 31, 2024 | $8474173 |
| Addition of new derivatives recognized as warrants | 444126 |
| Addition of new derivatives recognized as conversion feature | 138785 |
| Gain on change in fair value of the derivative | (342625) |
| Balance - December 31, 2025 | $8714459 |

---

The aggregate loss on derivatives during the years ended December 31, 2025, and 2024 was as follows.

---

| | | |
|:---|:---|:---|
|  | Year ended<br>December 31,<br>2025 | Year ended<br>December 31,<br>2024 |
| Day 1 loss due to derivative liabilities | $582912 | 364321 |
| Change in fair value of the derivative | (342626) | 201422 |
|  | $240286 | $565743 |

---

**Earnings (Loss) Per Share**

The Company computes basic and diluted earnings (loss) per share in accordance with ASC 260, *Earnings per Share*. Basic earnings (loss) per share is computed by dividing net income (loss) by the weighted average number of common shares outstanding during the reporting period. Diluted earnings (loss) per share reflects the potential dilution that could occur if stock options and other commitments to issue common shares were exercised or equity awards vest resulting in the issuance of common shares that could share in the earnings (loss) of the Company.

**BUSINESS**

**Company Overview**

Ambitious Entertainment, Inc., incorporated in Nevada in September 2020, was founded to capitalize on the convergence of online influencers, emerging technologies, and global financing opportunities. Our team strategy focuses on developing film and television content designed for rapid sales, global scalability, and early monetization. We achieve this speed-to-market by forging strategic partnerships with viral creators (influencers) and combining them with what management considers to be established A-list talent, award-winning writers and directors, and top digital creators. We believe this approach allows our team to move decisively, often outpacing traditional studios in bringing compelling content to audiences worldwide. We believe we have identified significant opportunities emerging from the convergence of AI technology and new creator-driven platforms to capitalize on prevailing trends while bringing compelling content to audiences worldwide.

In 2024, as the legacy production services sector continued to contract, we identified major industry shifts driven by the rise of artificial intelligence and the increasing influence of digital creators as mainstream celebrities. Following this shift, we pivoted away from production services to focus on building proprietary content aligned with these trends. To strengthen market leadership and identity, we appointed veteran television executive Chris Philip (Executive Producer of *Sherlock & Daughter,* currently airing on The CW and HBO Max) as Chief Operating Officer, overseeing the Television Division.

We are actively developing and packaging projects with built-in social reach through collaborations with influencers. For example, we are currently developing a fully owned production, *Cancel Me*, a feature film that we intend to produce using AI technology through the whole production workflow and for marketing directly to the social media fanbase. To drive awareness and potential early monetization opportunities, the project is being developed with Adam Rose and is designed to leverage his online presence, which includes 2 million followers on Facebook, 6.8 million followers on TikTok, 6 million followers on YouTube, 8.1 million followers on Instagram, and 1.1 million followers on other platforms such as Twitter, Threads and LinkedIn as of December 31, 2025. Our strategy is to integrate development, packaging, marketing, and production into a more integrated AI driven ecosystem intended to maximize the value of our intellectual property beyond traditional film distribution, including social media marketing campaigns and ancillary online and physical products targeted to digital audiences.

In 2025, we further refined this transition by significantly slowing conventional film production activities and reallocating resources toward the development of our influencer-integrated content model, including the creation of distinct, themed film and television slates. This strategic shift contributed to reduced production volume during the year but was intended to reposition the Company around a cohesive, owner-driven slate strategy. We currently expect to begin launching our next film slate in the second quarter of 2026, alongside a new television slate, incorporating influencer-driven audience engagement, digital reach, and expanded monetization initiatives. There can be no assurance that this strategy will achieve its intended results.

As of December 31, 2025, our independent registered public accounting firm's report on our financial statements includes an explanatory paragraph regarding our ability to continue as a going concern. The auditor noted that we have incurred recurring net losses, have an accumulated deficit, and will need to raise additional capital to support our operations. These conditions and events raise substantial doubt about our ability to continue as a going concern. We plan to fund our operations through equity financings, debt arrangements, and strategic partnerships; however, there can be no assurance that such funding will be available on acceptable terms, or at all.

**Business Strategy**

AI is projected to become a significant driver of the company's revenue model such as international sales, versioning, and ancillary sales to fans. The company's AI strategy aims to generate initial revenue through the release of films and television series across various U.S. outlets (including theatrical, broadcasting, cable and streaming), followed by the distribution of completed titles to foreign markets. Additional revenue sources include AI driven electronic sell-through ("EST"), which is expected to become a significant driver of our revenue model, as well as international sales, versioning, and ancillary sales to fans.

In addition to our owned and controlled content slate, we, from time to time, retain participation rights in third-party film projects that we have supported through either production services or financial contributions. These participations provide us with potential future upside beyond fixed service fees.

Under the terms of these arrangements, we are entitled to receive a contractually defined percentage of revenues once the projects generate overages, meaning revenues in excess of agreed recoupment thresholds such as production costs, distribution expenses, or investor returns.

This structure enables us to benefit from potential long-term revenue streams tied to the financial success of these films, even though we do not own the underlying intellectual property. While the magnitude and timing of such revenue are inherently uncertain and contingent upon commercial performance, our management views these participations as an additional source of potential future earnings that complements our strategy of transitioning to a full owner-producer model.

We are actively transitioning to an owner-producer business model. Under this model, all current projects are fully owned by us, with intellectual property rights secured for production. As of the date of this filing, we have packaged four television series, four feature films, and two documentary series, all owned by us and scheduled for development and production beginning in 2026.

For example, our upcoming comedy feature, *Cancel Me*, illustrates our intended AI supported release and monetization strategy. The Company intends to release the U.S. theatrical film upon completion of the project subsequent to the initial public offering using AI to support marketing and distribution. The planned theatrical release will initially include approximately 300 theaters, expanding to approximately 1,000 theaters over several weeks. We view the theatrical release as a lucrative opportunity since it initially offers a strong upside and future marketing advantages. Following the theatrical run, *Cancel Me* is expected to be distributed via AI supported EST, which we anticipate will represent a primary source of revenue as we receive a majority of the proceeds. The film is then intended to be licensed to a major streaming platform.

Outside North America, we plan to market completed films to international distributors and pursue a long-term strategy of adapting our content for local markets as a franchise. In the case of *Cancel Me*, management intends to replicate the concept in the United Kingdom, India, and other territories.

We have also engaged WHTWRKS, a New York-based marketing firm, to secure approximately $500,000 in product integration commitments for *Cancel Me*, which will be received directly by us. In addition, we plan to leverage the fan base of the film's cast through a dedicated marketing campaign, which management anticipates implementing prior to the commencement of principal photography.

This business strategy illustrates how our owner-producer model integrates multiple revenue streams, including theatrical exhibition, EST, streaming licensing, international distribution, franchising, sponsorships, and ancillary fan-related sales.

In addition to our internal capabilities, we benefit from the relationships and industry experience of our Chief Operating Officer, Chief Executive Officer, and Board members, which collectively provide meaningful direct access to leading streaming platforms, studios, and distributors worldwide. Management believes this access represents a key competitive advantage as we transition to an owner-producer model.

We are actively exploring potential future opportunities to enhance fan engagement and the overall fan experience in connection with influencer-driven content. This includes preliminary discussions with various companies and executives regarding the potential use of digital assets to deliver unique fan experiences by offering exclusive content. These discussions are exploratory in nature and are limited to non-financial fan engagement concepts. They are intended solely to test ideas and assess fan response to marketing communications and engagement strategies, and do not involve financial transactions, investment opportunities, or participatory investment activities.

In the long term, we envision a potential model in which content could be financed and distributed directly to fans, bypassing traditional studios, EST, or streaming channels. This concept remains at a preliminary stage, and we have not yet determined whether or when such a model may be implemented.

● **Leadership Relationships:** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● *Kirk Shaw (Chief Executive Officer, Film)* has produced more than 250 feature films and brings long-standing relationships with U.S. and international distributors across both theatrical and digital markets.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● *Chris Philip (Chief Operating Officer, Television)* leverages extensive television industry experience and active relationships with major streamers. Through his prior role, Mr. Philip was directly involved in the development and launch of *Sherlock and Daughter*, currently airing on The CW and HBO Max.

● **Board-Level Access Support:** 

We have also strengthened our ability to access global buyers through our Board nominees. The involvement of Mr. Philip, Mr. Shaw, and the Board provides Ambitious with direct pathways to present content to all major streaming services. This network enhances our ability to secure distribution agreements for both current projects (*Cancel Me* and *Tehk City*) as well as future productions.

*The Ambitious Model Reduces Risk*

● Content marketing accelerator: Merges traditional and digital media.

● Maximizes efficiency: influencer promotion boosts reach without ad spend.

● Keeps costs low: Utilizes tax incentives and traditional pre-sales when advantageous.

● Innovative tech: Avoids outdated studio models with large upfront investments.

● Global content strategy: Unlocks multiple global revenue streams.

● Lean, high-margin model: Focused on profitability and scalability from day one.

*Key Growth Strategies*

● Strategic growth through commercial genre and prestige films.

● Expansion into projects in collaboration with influencers.

● Triple-path distribution: theatrical, streaming, and social-first marketing.

● Launching Halloween-themed horror films integrated with TikTok Shop merchandise.

● Collaborations with top horror influencers, as per management's assessment, and live shopping streams.

● Community-led development enabling fans to vote, invest, and participate in greenlighting.

● Launching a short-form content division producing monetized content for TikTok and YouTube.

● Turning casual viewers into subscribers and micro-investors.

● Strategic growth through commercial genre and prestige films.

***Artificial Intelligence Platform***

Looking to the very near future, we expect that technology, particularly Artificial Intelligence (AI), will be a cornerstone of our overall production strategy and operational efficiency. The emphasis on AI reflects our team's ongoing efforts to integrate new technology across development, production, and post-production workflows with the goal of improving efficiency, reducing costs, and enhancing creative decision-making. We believe AI allows a company to truly support a creator's vision by implementing production cost savings and offering new direct to consumer distribution options.

While development remains ongoing and implementation timelines may evolve, the team believes this initiative is positioned to strengthen our competitive position and support scalable growth across our owned and controlled content slate. We are starting with investment in AI-enabled production-management software that integrates best-in-class AI tools from script breakdown through production and delivery, aiming to reduce below-the-line costs by approximately 20%. This includes AI-supported pre-production software for rapid script analysis, virtual location scouting, and automated shot list generation to reduce planning time. During production, AI implements machine learning algorithms to monitor in real-time and forecast costs to optimize resource allocation. In post-production, AI will support our VFX and automation directly through new tools for rotoscoping, background rendering, and color grading to cut VFX costs while maintaining or surpassing prior creative quality.

We have dedicated two years of R&D into AI, actively defining significant opportunities targeting formal integration by Q3 2026. Our upcoming film *Cancel Me* already serves as a proof-of-concept, validating the AI-driven pre-production pipeline to reduce expenses and enhance creativity. These scalable savings are expected to translate to broader margins across all future productions. Once proven internally, the company's AI software becomes a marketable commodity for sale or as an ongoing subscription service to other producers and production companies. This creates an additional revenue stream.

 

*Influencers as Partners*

The evolving creator economy presents a particularly compelling opportunity for us. Audiences are increasingly engaging with content directly from personalities they trust, bypassing traditional gatekeepers. This shift is not just cultural; it's proving highly lucrative. A prime example is the film *Iron Lung*, produced for approximately $3 million based on a game made by a prominent online creator. According to NBC News and IMDB, *Iron Lung* has generated an impressive $46.5 million in revenue from self-distribution online, demonstrating the powerful economic model inherent in influencer-driven content. We intend to use the marketing power of these influencers to market direct to consumer and share significant profit with them. We are actively developing strategies that parallel and amplify this successful approach, building scalable media production and distribution models around authentic creator partnerships.

We bridge the gap between viral digital creators and mainstream media, offering influencers a clear path from social platforms into film, streaming, and television. While the past decade celebrated the rise of influencers, most lack experience in production and IP, which is where we step in as the creative and strategic partner they've been waiting for.

We empower influencers to co-create and co-own original IP, turning them into executive producers who not only star in content but also promote it to millions. With built-in reach, our projects skip traditional marketing cycles and massive ad budgets; our IP stories spread organically through trusted voices.

Unlike traditional series that spend millions on marketing to attract tens of thousands of viewers, our influencer partners achieve millions of views with just a phone, a wall, and a mic. Fans trust their favorite creators far more than conventional advertisements.

Our partner Adam Rose, for example, generates millions of views per post on Instagram, Facebook, and YouTube. Alongside Adam, we are working with a slate of top-tier influencers to co-develop culturally resonant stories that match their voice and audience, transforming every project into a launchpad with viral potential and built-in promotion.

 

*Cancel Me – Shooting September 2026 for a 2027 Theatrical Release*

Cancel Me is our upcoming social media influencer comedy developed with viral sensation Adam Rose, who brings his 24 million followers to the project. He is joined by six mega influencers with a combined reach of over 450 million impressions. Even before production begins, we anticipate the film will generate major buzz, brand interest, and fan engagement.

This film exemplifies our model of building high-potential IP that management believes can deliver outsized returns as a smart, culturally relevant comedy with wide audience appeal. We also plan to franchise the concept globally, adapting it into multiple languages using local influencers to extend reach and impact.

Designed as both a movie and a digital event, Cancel Me unlocks new revenue streams through sponsorships, merchandise, and viral campaigns. It is built to scale and monetize from day one, and that is just the beginning.

*Multiple New Revenue Streams*

In addition to traditional revenues from development, production, and distribution fees, viral-driven films like Cancel Me unlock powerful new monetization opportunities including merchandise, triple distribution (theatrical, streaming, digital), global franchising with local adaptations, social media-driven marketing, brand collaborations (e.g., coffee partnerships), IP-based products such as toys and collectibles, token-based transactions enabling direct fan purchases and micro-investments, fan engagement perks (early access, content participation, set visits), subscription models for behind-the-scenes access, and revenue sharing reinvested to fund new projects.

Each IP thus becomes a multi-lane highway for revenue: fast to market, global in reach, and built to scale. This is how we redefine the meaning of a "hit".

*Influencer-Driven Financing & Distribution Strategy*

We are launching a dedicated division to unlock new financing and distribution opportunities through partnerships with whom management considers to be top online influencers. These creators routinely reach audiences rivalling or exceeding those of the highest-rated U.S. TV programs while remaining an underutilized force in long-form content monetization.

For context, while the 2025 Super Bowl and Oscars attracted 127.7 million and 19.5 million viewers respectively, according to *Variety Magazine*, leading influencers engage comparable or larger audiences weekly.

We will allocate part of our capital to build long-term partnerships with major platforms like TikTok, Instagram, and X, aiming to co-develop branded content, secure distribution deals, and premiere original projects directly on these platforms. Additionally, we plan to franchise content globally by collaborating with influencers in different languages and regions.

***Multi-Platform Monetization Strategy (with Micro-Dramas)***

 ****

Our monetization approach is structured around sequential distribution windows designed to maximize revenue potential for each project, including traditional films and television series, as well as short-form, mobile-first content such as micro-dramas (also referred to as vertical dramas).

According to third-party industry research from Media Partners Asia (*The Micro-Drama Economy*), the global micro-drama market outside China generated approximately $1.4 billion in revenue in 2024 and is estimated to reach approximately $9.5 billion by 2030, representing a compound annual growth rate of approximately 28.4%. The report further indicates that the United States accounted for approximately $819 million of revenue in 2024 and may grow to approximately $3.8 billion by 2030.

We intend to develop and distribute micro-drama content as part of our multi-platform strategy, leveraging digital-first marketing, influencer collaboration, and pay-as-you-watch subscription models. Management believes this format allows for faster content release cycles, rapid audience engagement, and scalability across global markets.

**Recent Productions**

The projects discussed below demonstrate a range of strategically planned releases.

*All My Friends are Dead*

Ambitious' 2024 release *All My Friends are Dead* highlights the model for influencer-driven digital releases. It starts with compelling, timely creative in a marketable niche. In this case, it is a revenge-based slasher horror story where a group of college friends are hunted at a music festival after cyberbullying their peer. A prominent influencer is attached to amplify reach. Capitalizing on this influence and on the heels of its success at the 2024 Tribeca Film Festival, the film was released in select U.S. theaters and across major digital platforms within 2 months of the Tribeca Film Festival.

*Cancel Me - Production Starts 2026*

*Cancel Me* is an ambitious satirical comedy currently in development and intended to be financed and produced following the completion of our initial public offering. Designed for digitally native audiences, the film explores the absurdities of internet fame and cancel culture. The story follows an anxiety-ridden recluse who accidentally becomes a viral social media sensation. Thrust into a spotlight he never sought, he spirals as his every move is scrutinized by millions online. In an attempt to escape his newfound notoriety, he devises an outrageous plan to sabotage his own fame—only to discover that going viral for all the wrong reasons is still going viral. We intend to attach a major social media influencer to extend the film's reach and cultural relevance. If produced, *Cancel Me* is expected to appeal to both comedy audiences and viewers drawn to timely social commentary. Production, casting, festival strategy, and distribution timing have not yet been finalized and will depend on the Company's financing and production schedule following the IPO.

*Sundown Town – Production Starts 2026*

Written by Moses Lassiter, *Sundown Town* follows a Black Civil War veteran and his family as they journey west in search of freedom—but find themselves trapped in a town where the American dream rots in the shadows. Beneath its quiet facade, white townsfolk hide a monstrous secret: they are vampires who feast on Black blood. With the help of a Native American outcast who knows the land's darker history, the family must outwit the predators and reclaim their future. *Sundown Town* blends slow-burn tension with supernatural threat in a uniquely American horror tale.

*Operation Gladio: The Unholy Alliance Between the Vatican, the CIA, and the Mafia – Production Starts 2026*

Written by Nick Torokvei, *Operation Gladio* is set in the shadowy aftermath of World War II and follows a covert alliance between the CIA, the Vatican, and the Sicilian and American mafias as they wage a clandestine campaign to stop the spread of communism in Europe—by any means necessary. Against the fractured backdrop of postwar Italy and France, the story unfolds like a ticking time bomb: assassinations masked as accidents, secret armies hidden in plain sight, and democratic governments manipulated like puppets. A conspiracy thriller rooted in historical truth, *Operation Gladio* explores a world where the line between liberation and occupation is drawn in blood.

*Tehk City – Production Starts 2026*

Starring Snoop Dogg, Ice-T, Busta Rhymes, and Arabian Prince, *Tehk City* is an animated series set in a lawless experimental city sealed off from the outside world, where power is currency and survival is never guaranteed. As competing factions battle for control, a ruthless mayor tries to maintain order, but the rise of an experimental drug threatens to upend the fragile balance. *Tehk City* is a gritty, stylized crime saga where every alliance is a gamble—and the house always plays dirty.

*Austin Grant from Scotland Yard – Production Starts 2026*

*The Seed – Production Starts 2026*

*Bling – Production Starts 2026*

*Act of God - Production Starts 2027*

Following a catastrophic explosion on a Los Angeles metro train, a brilliant but tormented corporate lawyer, who is haunted by personal loss, makes the audacious argument the metro crash was an act of God to defend his company, NeoTrak. Meanwhile, a ruthless news executive fuels a terrorist narrative for ratings while a cunning mayor seizes the tragedy to bolster his political ambitions. Their clashing agendas ignite a high-stakes battle over the truth, where secrets unravel and motives collide in a city on edge. Down on the streets, a disgraced detective makes a chilling discovery about one of the people who died on the train.

*Women of Illusion – Production Starts 2026*

Hosted by Chris Angell, *Women of Illusion* is a documentary series that uncovers how cunning women throughout history, from Cold War spies to medieval power players, have used deception to reshape the course of events.

*TIC – Production Starts 2026*

Featuring Billy Eilish, Tim Howard, Lewis Capaldi, and Baylen Dupree, *TIC* is a documentary feature that offers an intimate, character-driven look into the lives of four individuals living with Tourette's Syndrome. Through raw honesty, vulnerability, and unexpected humor, the film explores the daily challenges, quiet triumphs, and complex beauty of navigating a condition that is still widely misunderstood. *TIC* reveals how Tourette's can be both a burden and a hidden gift.

*Guns of Redemption – Completed Production 2025*

*Guns of Redemption* is a gritty, high-stakes Western that explores the cost of escape from a violent past. The story follows a scarred and battle-weary gunslinger who has tried to walk away from a life defined by bloodshed. But when a brutal ambush leaves him near death, he's forced to strap on his guns one last time for a final mission of reckoning. Set against the unforgiving backdrop of the American frontier, *Guns of Redemption* is a story of survival, justice, and the thin line between vengeance and redemption. With a moody tone and cinematic intensity, the film brings classic Western grit into a modern narrative of inner conflict and ultimate sacrifice.

*Gunslingers – Completed Production 2025*

Directed and written by Brian Skiba, *Gunslingers* is a gritty, character-driven Western set in the lawless frontier town of Redemption. The story follows Keller, a reformed gunslinger, and Ben, a volatile genius, as they seek inner peace under the guidance of enigmatic spiritual leader Jericho. But as the men attempt to reconcile with their violent pasts, the fragile calm is shattered by vengeance, forcing them to choose between the peace they have found and the bloodshed they left behind. Starring Stephen Dorff, Heather Graham, and Nicolas Cage, *Gunslingers* explores themes of redemption, loyalty, and the high price of justice in a world where the past never stays buried.

In addition to the above, the Company has also completed and scheduled the release of *Viper* (expected April 2026).

**Why Investors Choose Ambitious**

We believe Ambitious Entertainment is driven by a world-class producing team and advisory board with a proven history of identifying and monetizing over a billion dollars in IP for industry leaders like CBC, NBC, and CW. Now united under one vision, this elite team is focused on creating the next generation of hit franchises with global appeal and lasting impact.

By pioneering cutting-edge technologies and innovative distribution models, Ambitious doesn't just aim to compete with the traditional studio system—we aim to redefine it. Our approach aims to unlock new revenue streams and expand market reach beyond conventional access.

We have secured IP and are on track to launch multiple series and films in 2026. With full funding, Ambitious is uniquely positioned to scale rapidly, driving exponential growth and delivering unmatched value through our expertise in IP acquisition, development, and monetization. This is why investors choose Ambitious—to be at the forefront of the future of entertainment. We have secured premium IP and are on track to launch multiple new series and films in 2026.

**Divisions Overview**

*Feature Film*

The Film division is central to our growth strategy, guided by a clear desire to establish a distinct and respected position in the market. We are encouraged by the successful models of companies like A24 and Neon, known for their consistent curation of high-quality, compelling stories. Our goal is to build a similar reputation for excellence, focusing on commercially viable films with strong artistic merit through a themed production slate. To achieve this efficiently and mitigate financial risk, we employ a strategic slate production process. This involves identifying groups of projects with complementary commercial appeal, packaging them together, and marketing these as cohesive similarly themed units. This method allows us to create a systematic pipeline of market-ready films, series, and documentaries, enabling resource allocation across multiple projects rather than relying on the uncertain outcome of individual productions. This approach significantly reduces per-project risk and accelerates our economy of scale.

Supporting this slate strategy, we are actively pursuing key partnerships. This includes developing relationships with established domestic distributors and specialized financing partners. These collaborations are designed to provide the necessary resources and creative freedom to produce films that embody the quality and distinctiveness associated with leading independent studios. Following this offering, we plan to initiate specific slate partnerships that combine distributor backing with dedicated funds, empowering us to consistently develop and produce these higher-caliber projects. Our production strategy also integrates our core competency in influencer engagement and emerging distribution channels. Currently, our development pipeline is robust, with ten films actively preparing for production and delivery in 2026. We have already premiered a recent theatrical release and currently have one feature film, *Cancel Me, greenlit for immediate production starting in 2026.*

 

*TV Division*

Cost-conscious productions, mitigating risk from global pre-sales and attaching influencers as marketing partners bringing their power to help negotiate better deals resulting in additional direct to consumer revenue.

The team will leverage deep industry experience to cultivate strong, ongoing relationships with major networks and streamers. This foundation allows us to quickly adapt original intellectual property (IP) for diverse audiences across online platforms and traditional broadcast in North America and worldwide. We are also strategically focused on developing scalable series franchises with inherent global appeal by actively targeting key international markets. This strong commitment to franchising IP ensures our content resonates across borders and for years to come. To achieve this vision, we have established a robust development pipeline featuring TV series designed for both domestic impact and international scalability, whether streamed or broadcast online. Already in the pipeline are series from creators/writers on Burn Notice, Dexter, Sopranos, Bosch, Designated Survivor. Chief Operating Officer Chris Philip has produced series for Amazon, HBO Max, CW, Netflix, NBC and SyFy.

*Docu-series Division*

We actively develop and sell premium documentary series that tap into cultural conversations, untold stories, and compelling characters. Partnering with experienced filmmakers and streaming platforms, we create story-driven nonfiction content with global appeal and multi-platform potential to inform, entertain, and impact. We have developed five documentary series, including Snowblind and the Murder Behind the Cotton Club Movie.

**Industry Overview**

**Global Growth Trends**

The global media and entertainment industry is undergoing rapid transformation and expansion. According to market analysts, the sector is projected to grow at a compound annual growth rate (CAGR) of 20.4% between 2024 and 2027. This growth is driven by:

● The proliferation of streaming platforms and mobile-first entertainment.

● Global demand for localized and original content.

● Expansion of internet access and connected devices, especially in emerging markets.

This dynamic growth underscores the long-term value of IP creation and content ownership, as streaming services have overtaken traditional Pay TV.

As highlighted below, recent media reports support continued market growth:

Global Streaming Market & Media Industry Projections

● The global video streaming market is projected to reach $184.3 billion by 2027, growing at a CAGR of 20.4% from 2020 to 2027. (Businesswire, <u>https://www.businesswire.com/news/home/20200515005420/en/Global-Video-Streaming-Market-Forecast-to-Reach-USD-184.3-Billion-by-2027-Registering-a-CAGR-of-20.4—ResearchAndMarkets.com</u>)

● The broader global entertainment & media (E&M) industry is expected to grow at a CAGR of 3.7%, reaching approximately $3.5 trillion by 2029. (TV Tech, <u>https://www.tvtechnology.com/news/study-global-m-and-e-industry-revenue-to-hit-usd3-5-trillion-by-2029</u>)

U.S. Streaming & Pay TV Adoption

● In 2021, for the first time, a higher share of U.S. households subscribed to streaming (69%) than to traditional pay TV (65%). (Tinuiti, <u>https://tinuiti.com/blog/ott-ads/streaming-video-statistics/</u>)

● As of 2025, approximately 83% of U.S. households have at least one streaming service, which aligns with the broader data showing high subscription video-on-demand (SVOD) penetration. (Exploding Topics, <u>https://explodingtopics.com/blog/video-streaming-stats</u>)

Content Spending Estimates:

Netflix (We have had three of our movies distributed on Netflix)

● Netflix plans to spend approximately $18 billion on content in 2025, up from $16.2 billion the prior year. (The Verge, <u>https://www.theverge.com/news/626102/netflix-18-billion-content-spending</u>)

Amazon (We have had three of our movies distributed on Amazon)

● In 2023, Amazon's content spending, which includes video and music, increased 14% to $18.9 billion. (Cord Cutters News, <u>https://cordcuttersnews.com/amazon-spent-almost-19-billion-on-content-in-2023</u>)

● For 2024, *The Information* reported that Amazon's total budget, which includes originals, licensed content, and live sports, was approximately $7 billion. (Reuters, <u>https://www.reuters.com/business/media-telecom/amazon-prime-video-shifts-focus-live-sports-boost-profits-information-reports-2025-01-24/</u>)

**Platform Estimated Spend in 2024**

● Netflix: $16 billion (Variety, 2024)

● Amazon: $7 billion (excludes MGM/live sports) (The Information via Reuters, 2024)

● Hulu: $3 billion (eMarketer, Insider Intelligence, 2024)

● HBO Max: $1 billion (Warner Bros. Discovery earnings call, Q1 2024)

In 2023, Amazon's total content spend, including Prime Video, MGM, Freevee, and live sports, was approximately $18.9 billion.<sup>3</sup> As of 2025, Netflix's content spending increased to approximately $18 billion.<sup>4</sup> The shift toward ad-supported content (AVOD) means platforms are more open to lower-cost, high-return content formats: short-form, docuseries, and lower-budget scripted fare.

Management's expectations are based in part on industry reports and the Company's analysis of market trends.

**Competition**

The film and television industry is intensely competitive and rapidly evolving, driven by technology, shifting viewer habits, and global demand.

Major studios like Disney, Universal, and Warner Bros. dominate with vast IP libraries, global marketing power, and established distribution. Streaming platforms have become central to content distribution, with Netflix leading and reporting over 260 million subscribers and an estimated content budget of approximately $18 billion in 2025<sup>5</sup>, Amazon Prime Video's content budget was estimated at over $7 billion for 2024<sup>6</sup>. Other major platforms include Disney+, Hulu, HBO Max, Apple TV, among others. These services are backed by advanced data analytics, personalization, and ecosystem control. The growth in ad-supported video-on-demand (AVOD) and free ad-supported streaming television (FAST) services has added further fragmentation and pricing pressure.

<sup>3</sup> The Wrap, "Amazon's 2023 Content Spend," available at https://www.thewrap.com/amazon-content-spend-2023.

<sup>4</sup>The Verge, "Netflix's plan to spend around $18 billion on content this year," https://www.theverge.com/news/626102/netflix-18-billion-content-spending.

<sup>5</sup>The Verge, "Netflix to Spend $18 Billion on Content in 2023," available at https://www.theverge.com/news/626102/netflix-18-billion-content-spending.

<sup>6</sup>Reuters, "Amazon Prime Video Shifts Focus to Live Sports to Boost Profits," available at https://www.reuters.com/business/media-telecom/amazon-prime-video-shifts-focus-live-sports-boost-profits-information-reports-2025-01-24/.

Most competitors are larger, better funded, and vertically integrated, with access to top talent and global reach. Independent companies like ours compete by focusing on:

● Original storytelling and unique IP

● Niche audiences and partnerships

● Agile production and creative financing

In today's landscape, success depends not just on content but on our ability to adapt, market smartly, and form strategic alliances across streaming and theatrical platforms.

The Company's strategic model includes attaching influencers as producers to select projects, enabling a direct-to-consumer promotional approach and reducing reliance on traditional advertising. This model capitalizes on the influencers' established audiences to drive early awareness, engagement, and monetization of content. According to a 2024 Nielsen Influence Marketing Report, approximately 92% of consumers trust influencer recommendations over traditional advertising, and influencer-led campaigns generate up to 11 times the return on investment compared to standard digital media buys. The Company believes this strategy provides a competitive advantage by creating organic demand, lowering customer acquisition costs, and enhancing the visibility and commercial success of its premium content.

**Our Competitive Advantage**

*Story to Screen IP Pipeline*

Our competitive advantage lies in knowing how to develop and package IP into scalable, high-demand content with viral market value.

Ambitious secures who we believe to be top-tier creative talent, including popular online influencers, to develop fully market-ready pitch packages—complete with scripts and director's visions—positioned for rapid sale and production. Some projects arrive with a showrunner attached, similar to how *Dexter* was developed. For others, Ambitious hand-selects the ideal showrunner and director to bring the concept and characters to life. Our team then crafts compelling pitch decks that showcase the creative vision and commercial potential.

These packages are actively pitched in one-on-one meetings with streamers and studios, aiming for direct sales or co-production deals. Upon sale, Ambitious recoups development costs and earns additional fees for production, distribution, and backend profits.

Most capital raised will be directed toward acquiring and developing multiple new IPs into high-value, pitch-ready packages. For high-return opportunities selected by the team and advisory board, Ambitious will fully produce and distribute these projects in-house to maximize profit.

*Team*

**Kirk Shaw – Chief Executive Officer**

With over 30 years of experience, Kirk has produced more than 270 feature films and TV series. He has served as CEO and board member of multiple public companies and remains a driving force in independent film and television. A key player behind *The Hurt Locker* and founder of Insight Studios—Canada's largest indie production house—Kirk brings global reach and hands-on leadership to every project.

**Chris Philip – Chief Operating Officer**

A seasoned global entertainment executive, Chris has produced acclaimed series including *Sherlock and Daughter* and *Departure*. A Golden Palm winner at the Beverly Hills Film Festival, he formerly served as VP of NBC Universal International, leading worldwide TV and film distribution. His career includes senior roles at Televisa USA, Power TV (London), Electus-Engine, and co-founding Engine Entertainment.

**George Furla – Executive Producer**

With a 30-year career and over 100 films produced, George is known for major films like Rambo, Lone Survivor, and Escape Plan.

**Recent Developments**

*Bridge Financing*

In April 2026, the Company entered into four Securities Purchase Agreements with accredited investors pursuant to which the Company agreed to sell an aggregate of thirteen (13) Units (the "Bridge Financing"). Each Unit is priced at $32,000 and consists of (i) 10,000 shares of the Company's Series A Convertible Preferred Stock, par value $0.0001 per share, and (ii) warrants to purchase 10,000 shares of the Company's common stock at an exercise price set forth in the warrant with a term of three years from the date of issuance.

The Company received $96,000 in cash from the sale of three (3) Units. In addition, an existing note holder, Roots Properties Inc., used $320,000 of outstanding principal under a note payable to purchase ten (10) Units, which was accounted for as a non-cash financing transaction and resulted in a corresponding reduction of the Company's indebtedness.

Three of the investors in the Bridge Financing are adult children of Kirk Shaw, the Company's Chief Executive Officer. In addition, Roots Properties Inc. is an entity for which Mr. Shaw serves as President. Accordingly, these transactions constitute related party transactions.

The securities issued in the Bridge Financing were offered and sold in reliance on the exemption from the registration requirements of the Securities Act of 1933, as amended, provided by Section 4(a)(2) thereof and Rule 506(b) of Regulation D promulgated thereunder, as transactions not involving a public offering. The investors have represented that they are accredited investors as defined in Rule 501 of Regulation D.

*A&G Entertainment Limited*

On January 5, 2026, we, together with Gamma Interactive Inc. ("Gamma Interactive"), formed A&G Entertainment Limited ("A&G"), a Hong Kong corporation. Gamma interactive is a production and technology company incorporated in Delaware in 2017 focused on next-generation content and software development across gaming, extended reality (XR), mobile and web applications and Web 3.0 technologies. We acquired 55% of the issued and outstanding shares of A&G and Gamma Interactive acquired the remaining 45%, each at a price of HK$1.00 per share. We believe that the formation of this company with Gamma Interactive will enhance our capabilities in immersive entertainment, interactive media production, and global business development opportunities.

**Intellectual Property**

As a general practice, we will rely upon patent, copyright, trademark, and trade secret laws to protect and maintain our proprietary rights for our products. There are no inherent factors or circumstances associated with this industry, or any of the products or services that we expect to be providing that would give rise to any patent, trademark, or license infringements or violations. We have not entered into any franchise agreements or other contracts that have created or could create obligations or concessions. Our web domain and IP address, as well as company information, will be protected by our domain host. We do not own, either legally or beneficially, any patents or trademarks.

Rights to motion pictures are granted legal protection under the copyright laws of the United States and most foreign countries, including Canada. These laws provide substantial civil and criminal penalties for unauthorized duplication and exhibition of motion pictures. Motion pictures, musical works, sound recordings, artwork, and still photography are separately subject to copyright under most copyright laws. We plan to take appropriate and reasonable measures to secure, protect, and maintain copyright protection for all our products under the laws of the applicable jurisdictions. Motion picture piracy is an industry-wide problem.

Under the copyright laws of Canada and the United States, copyright in a motion picture is automatically secured when the work is created and "fixed" in a copy. We intend to register our films for copyright with both the Canadian Copyright Office and the United States Copyright Office. Both offices will register claims to copyright and issue certificates of registration, but neither will "grant" or "issue" copyrights. Only the expression (camera work, dialogue, sounds, etc.) fixed in a motion picture can be protected under copyright. Copyright in both Canada and the United States does not cover the idea or concept behind the work, or any characters portrayed in the work. Registration with the appropriate office establishes a public record of the copyright claim.

Ordinarily, a number of individuals contribute authorship to a motion picture, including the writer, director, producer, camera operator, editor, and others. Under the laws of both the United States and Canada, these individuals are not always considered the "authors," however, because a motion picture is frequently a "work made for hire." In the case of a work made for hire, the employer, not the individuals who actually created the work, is considered the author for copyright purposes. We intend for all our films to be works made for hire in which we will be the authors and thereby own the copyright to our films.

Canada's copyright law is distinguished from that of the United States by recognizing the moral rights of authors. Moral rights refer to the rights of authors to have their names associated with their work, and the right to not have their work distorted, mutilated, or otherwise modified, or used in association with a product, service, cause, or institution in a way that is prejudicial to their honor or reputation. Moral rights cannot be sold or transferred, but they can be waived. We intend that all individuals who contribute to the creation of any of our motion pictures will be required to waive any such moral rights that they may have in the motion picture.

For copyright purposes, publication of a motion picture takes place when one or more copies are distributed to the public by sale, rental, lease, or lending. Publication also refers to an offering made to distribute copies to a group of persons (wholesalers, retailers, broadcasters, motion picture distributors, and the like), for purposes of further distribution or public performance. A work that is created (fixed in tangible form for the first time) on or after January 1, 1978, is automatically protected from the moment of its creation. The work is ordinarily given a term enduring for the author's life plus an additional 70 years after the author's death. For works made for hire, the duration of copyright will be 95 years from publication or 120 years from creation, whichever is shorter.

Although we plan to copyright all of our film properties and projects, there is no practical protection from films being copied by others without payment to us, especially overseas. We may lose an indeterminate amount of revenue due to motion picture piracy. Being a small company with limited resources, it will be difficult, if not impossible, to pursue remedies. Motion picture piracy is an international as well as a domestic problem. It is extensive in many parts of the world.

**Government Regulation**

The cost of producing and distributing filmed entertainment has increased substantially in recent years, in part due to the demands of creative talent as well as industry-wide collective bargaining agreements. Many screenplay writers, performers, directors, and technical personnel in the entertainment industry are members of guilds or unions that bargain collectively on an industry-wide basis. Actions by these guilds or unions can result in increased production costs and may occasionally disrupt production operations. If such actions impede our ability to operate or complete a motion picture, they may substantially harm our ability to earn revenue.

We have engaged both union and non-union talent and crew, depending on the project and jurisdiction of production.

● **Union Talent.** To date, we have utilized unionized actors primarily under agreements with the Screen Actors Guild–American Federation of Television and Radio Artists ("SAG-AFTRA") in the United States and the Union of British Columbia Performers ("UBCP") in Canada. For example, *All My Friends Are Dead* was produced with unionized actors under SAG-AFTRA/UBCP and was also covered under Directors Guild of America ("DGA") agreements for director services.

● **Union Crew.** Certain projects have engaged unionized crews. For instance, the production *Fate* was produced under agreements with the International Alliance of Theatrical Stage Employees ("IATSE") and the Directors Guild of Canada ("DGC").

● **Non-Union Crews.** Other productions have been staffed with non-union crews, depending on budget, location, and financing structure. These arrangements can provide cost flexibility while still maintaining professional production standards.

We evaluate union versus non-union engagement on a project-by-project basis, taking into account budget, location, financing, and distribution requirements. As we transition to an owner-producer model and scale larger productions, management anticipates increased reliance on unionized talent and crew in order to meet distributor, streamer, and guild compliance requirements.

We are also subject to state and federal workplace laws and disclosure obligations, including those enforced by the U.S. Occupational Safety and Health Administration and similar state organizations. Our operations will depend on compliance with collective bargaining agreements and applicable labor laws. Strikes or other work stoppages by members of these unions could delay or disrupt our activities, and the extent to which future collective bargaining agreements may affect our business is not currently known.

In addition, with regard to digital content developed for children, we are subject to a variety of laws and regulations, including the U.S. Children's Online Privacy Protection Act and the rules promulgated by the U.S. Federal Trade Commission thereunder ("COPPA"). COPPA imposes restrictions on what website operators can present to children under the age of 13 and what information can be collected from them.

Our business operations are based in the United States, and we intend to establish a physical office in Los Angeles, California, with an opening targeted after the offering. A preferred office location has been identified, and our management is in the process of finalizing lease arrangements. Establishing a permanent Los Angeles presence is expected to strengthen our direct accessibility to major studios, streaming platforms, financiers, and creative talent.

Although Chief Executive Officer Kirk Shaw maintains his family residence in Vancouver, British Columbia, all of our business operations are conducted in the United States. The Los Angeles office will serve as our primary corporate headquarters and hub for content development, production, and distribution activities.

We utilize available tax credits and incentives for each project it produces, whether the production occurs in Canada, the United States, or other jurisdictions. The calculation and structure of these benefits vary by jurisdiction, as each region has its own rules and programs designed to support film and television production.

A key element in maximizing these benefits is the engagement of "above-the-line" talent, including lead actors, directors, and key creative personnel. By securing recognized talent in lead roles, we often ensure eligibility for higher credit levels under both Canadian, U.S. state, and foreign tax incentive programs. Our management actively evaluates each production's creative team and location to optimize available credits while maintaining production quality.

These tax credit strategies contribute to cost efficiency, enhance project profitability, and support our ability to finance and produce content within budget while retaining ownership of intellectual property. For example, in connection with the upcoming feature film *Cancel Me*, our management has conducted preliminary research on three potential production locations—Colombia, Kentucky, and New Jersey—each offering different tax credit structures and incentives. As of April 1, 2026, no final decision has been made regarding the location of principal photography. We are analyzing tax credit benefits, labor rates, crew availability, and logistics in order to select the most advantageous jurisdiction.

A production location will be chosen prior to the commencement of principal photography, and we intend to apply the applicable tax credits to reduce net production costs, consistent with its overall owner-producer strategy.

**Employees** 

As of April 1, 2026, we had no employees. We utilize consultants in the ordinary course of our business in connection with the production of digital media projects or motion pictures.

**Legal Proceedings**

We are not a party to any legal proceedings that could have a material adverse effect on our business, financial condition, or operating results. Further, to the Company's knowledge, no such proceedings have been threatened against the Company. However, from time to time, we may be subject to various legal proceedings and claims that are routine and incidental to our business. Management believes that the final disposition of such matters will not have a material adverse effect on our business, financial position, results of operations, or cash flows.

**Properties**

We do not own any real property. However, we lease 150 square feet of office space located at 207 - 744 Hastings Street W, Vancouver, British Columbia V6C 1A5, on a month-to-month basis for a monthly rate of approximately CAD1,000. We believe that our facilities are adequate for our current needs and that suitable additional or substitute space would be available if needed.

**Corporate Information**

Our principal executive offices are located at 112 W 6th Avenue, Vancouver, British Columbia V5Y 1K6, Canada. Our telephone number is (604) 218-3374. The address of our website is www.ambitious.tv. The inclusion of our website address in this prospectus does not include or incorporate by reference the information on our website into this prospectus.

**MANAGEMENT**

**Executive Officers and Directors**

The following table sets forth information about our directors and executive officers.

---

| | | |
|:---|:---|:---|
| **Name** | **Age** | **Position(s)** |
| Kirk Shaw | 69 | Chief Executive Officer and Director |
| Chris Philip | 58 | Chief Operating Officer |
| Adam Berk | 48 | Independent Director Nominee |
| Lucy Chua (Chuyun Chen) | 42 | Independent Director Nominee |
| Patricio Rabuffetti | 67 | Independent Director Nominee |
| Owen May | 67 | Independent Director Nominee |
| Ben Silverman | 55 | Independent Director Nominee |

---

***Executive Officers and Directors***

**Kirk Shaw** 

Mr. Shaw combines over 30 years of experience in the film and television industry senior management following a career as a media entrepreneur and producer. Previously, he had been involved in three companies in the entertainment industry, holding positions including Chief Executive Officer, Executive Producer, and Founder.

From 2017 through 2021, Kirk Shaw was the Chief Executive Officer for Wonderfilm Media Corporation, a global content development and financing company. From 2010 to 2017, he was Chief Executive Officer for Odyssey Media Inc., a company involved in film and television production. From 2000 to 2010, he was Founder and Executive Producer of Insight Film Studios, a Canadian-based production company that focused on independent film and television projects.

Kirk Shaw is also currently a director of Roots Properties Inc. and Infinito Gold, Ltd.

He has a diploma in journalism from Douglas College.

**Chris Philip** 

Mr. Philip combines over 30 years of experience in the global entertainment industry senior management following a career in sales and finance. Previously, he had been involved in seven companies in the entertainment industry, holding positions including Sales Director, Finance Manager, Vice President, President, Executive Producer, and Co-Founder.

From 1989 through 1995, Mr. Philip was the Sales Director and Finance Manager for Alfred Haber Distribution, a distribution company. From 1995 to 1998, he was Vice President for Polygram TV International, a company involved in television production and distribution. From 1998 to 2007, he was Vice President of NBC Universal International, a global television and film distribution company.

From 2007 through 2010, he was Senior Executive at Power TV, a television company based in London. From 2010 through 2014, he was President of Engine Entertainment's subsidiaries, Sierra Engine and Electus Engine TV, a television production company. From 2014 through 2017, he held senior leadership positions at Televisa USA, a media company involved in television production. From February 2018 through January 2025, he was Executive Producer and Co-Founder of Starlings Television, a television production company.

Mr. Philip is also currently a director of Reachdirect, technology platform company operating in the creator economy, influencer marketing, and marketing technology sector. Mr. Philip also serves as a director of Engine Entertainment, LLC, a distribution company.

He has an undergraduate degree from Fairleigh Dickinson University.

**Adam Berk** 

Mr. Berk combines over 20 years of experience in capital markets senior management following a career as a technology and business entrepreneur. Previously, he had been involved in seven companies in the technology, cannabis, and consumer products industries, holding positions including Chief Executive Officer, President, and Founder.

From 2000 through 2005, Mr. Berk was Chief Executive Officer for Osmio (now Grubhub), a technology company that developed the first patented web-based online food ordering system. From 2010 through 2014, he was Co-Founder of HYD for Men, an artisanal men's grooming brand. From 2014 through 2020, he was Chief Executive Officer and Chairman of Stem Holdings, Inc. (OTCPK: STEM), a multi-state, vertically integrated cannabis company engaged in manufacturing, distribution, and branding of cannabis across Oregon, Nevada, California, Oklahoma, and Massachusetts. From 2020 through 2022, he was President of Irwin, a vitamin and nutraceutical company in the U.S., growing sales to over $130 million. From 2024 to present, he is Chief Executive Officer of One Bullion, the largest gold mining and exploration company in Botswana.

Mr. Berk is also currently a director of One Bullion, Ltd., a gold exploration company.

He has an undergraduate degree from the School of Hotel Administration at Cornell University and an MBA from the University of Miami.

**Lucy Chua (Chuyun Chen)**

Ms. Chua combines over 15 years of experience in finance and strategic management within the automotive and emerging technologies sectors senior management following a career in auditing and investment management. Previously, she had been involved in five companies in the finance and investment industry, holding positions including Chief Financial Officer, Controller, Chief Operations Officer, and board member.

From October 2022 through the present, Lucy Chua was Senior Executive Director for ShangZen M&A Consulting, a global consulting firm focused on cross-border M&A transactions in the automotive and green technology industries. From January 2020 to the present, she was Senior Vice President for Xencio Technology Shanghai Co. Limited, a company involved in AI-driven solutions for automotive supply chains and predictive maintenance. From November 2015 to August 2019, she was Senior Executive Director of NMC Capital, a cross-border investment firm active in the automotive, media, and consumer markets. From April 2013 to November 2015, she was Investment Director of Zhejiang Kunlun Holding, a diversified holding company focused on real estate and consumer market investments. From August 2006 to March 2013, she was Audit Manager of KPMG Shanghai, a global accounting and consulting firm that specialized in retail and consumer products audits and supply chain financial operations.

Lucy Chua currently serves as a director of Shanghai HeZhan Culture Development, Ltd., a Shanghai-based private company operating in the cultural and entertainment sector, and she also holds a directorship at Shanghai ShangZen Consulting Ltd., a firm focused on business consulting services.

She holds a Bachelor of Business Administration degree from Shanghai International Studies University and is a Certified Public Accountant in China (CICPA).

**Patricio Rabuffetti**

Mr. Rabuffetti combines over 35 years of experience in the entertainment industry senior management following a career in content production and studio leadership. Previously, he had been involved in four companies in the entertainment industry, holding positions including President, Founder, and Executive Producer.

From 1989 through the present, Patricio Rabuffetti has been President of Non-Stop Studios, a television and film production company, which became the main production arm for The Walt Disney Channel throughout Latin America in 1998 and subsequently launched Disney Channels across LATAM, including Mexico, Brazil, and Argentina, in 2000. From 2022 through the present, he has been Founder of the Screen Capital Fund, an investment fund focused on financing film and television series. From 2023 through the present, he has been Founder of Cocao & Cia, Grupo iZen, a content production company focused on the global Spanish-speaking market.

Patricio Rabuffetti is also currently a director of Non-Stop Studios, a television and film production company, and has served in this capacity within the last five years.

He has an undergraduate degree in Economics from Universidad Argentina de la Empresa.

**Owen May**

Mr. May combines over 30 years of experience in financial advisory, mergers and acquisitions, and strategic business development as a founder and executive in the financial services industry. He has served as the Chief Executive Officer and Founder of MD Global Partners LLC, a New York-based investment banking firm, since 2005. Under his leadership, MD Global Partners has developed into a leading financial services company specializing in capital raising, corporate restructuring, and mergers and acquisitions advisory for small-cap and middle-market companies. Mr. May has structured and closed numerous transactions across the United States, Europe, Israel, and China, with expertise spanning reverse mergers, business turnarounds, initial public offerings, and cross-border transactions. His relationships with institutional investors, private equity firms, and corporate clients have contributed to significant revenue growth and transaction activity for the firm.

Mr. May serves as a member of the board of directors and the audit committee of Sono Group N.V., a Nasdaq-listed company, and of the New York Society for the Prevention of Cruelty to Children (NYSPCC). He also serves as a director of Yorkville Acquisition Corp., a Nasdaq-listed company, where he serves on the audit committee and the compensation committee. Mr. May served on the board of directors of Curzon Energy Plc, a company listed on the London Stock Exchange, for five years, during which he served on the audit committee. He also serves as chairman of the finance and audit committees of Ten North Group, LLC, and sits on the advisory board of Syredix Bio. Mr. May is an Emeritus member of the Board of Visitors at the Fuqua School of Business, Duke University, and a member of the President's Council at the University of Miami. Mr. May holds an M.B.A. from Duke University's Fuqua School of Business and a bachelor's degree in biology from the University of Miami. He also holds FINRA Series 24, Series 7, Series 63, and Series 79 licenses.

Ben Silverman

Mr. Silverman combines over 35 years of experience in entertainment and media industry senior management. Previously, he had been involved in a number of companies in the television and film industry, holding positions including, Head of International Packaging Division for William Morris Agency, and Co-Chairman of NBC Entertainment and Universal Media Studios. From 2002 through 2007 he was the founder and CEO of Reveille Productions (a major production company). From 2009 to 2016, he was founder and president of Electus (a digital-first production and distribution company). From 2016 to present, he has been Chairman and Co-CEO of Propagate Content, a leading independent entertainment production and talent/creator management company (with subsidiaries including Artists First, Authentic Talent & Literary Management, Select Management Group, and Parker Management) that focuses on premium scripted, unscripted, and digital content production, as well as creator economy initiatives. He has an undergraduate degree from Tufts University.

**Family Relationships**

There are no family relationships among any of our executive officers or directors.

**Corporate Governance** 

We are committed to having sound corporate governance principles, which are essential to running our business efficiently and maintaining our integrity in the marketplace. We understand that corporate governance practices change and evolve over time, and we seek to adopt and use practices that we believe will be of value to our stockholders and will positively aid in the governance of the Company. To that end, we regularly review our corporate governance policies and practices and compare them to the practices of other peer institutions and public companies. We will continue to monitor emerging developments in corporate governance and enhance our policies and procedures when required or when our Board determines that it would benefit our Company and our stockholders.

In this section, we describe the roles and responsibilities of our board of directors and its committees and describe our corporate governance policies, procedures and related documents. The charters of the Audit, Nominating and Corporate Governance, and Compensation Committees of our Board of Directors, our Corporate Governance Guidelines and Code of Business Conduct and Ethics can be accessed electronically under the "Governance" link on the Investor Relations page of our website at www.ambitious.tv. The inclusion of our website address in this section does not include or incorporate by reference the information on our website into this prospectus.

**Board Composition** 

Our business and affairs are managed under the direction of our board of directors, which currently consists of [●] members. The number of directors is determined by our board of directors, subject to the provisions of our amended and restated certificate of incorporation and amended and restated bylaws. Our directors are elected annually for one-year terms.

**Director Independence**

Under Rule 303A of the NYSE Listed Company Manual, a director will qualify as an "independent director" only if, our board of directors affirmatively determines that the person does not have a relationship that would interfere with the exercise of independent judgment in carrying out the responsibilities of a director. In order to be considered independent for purposes of Rule 303A of the NYSE Listed Company Manual, a member of an audit committee of a listed company may not, other than in his or her capacity as a member of the audit committee, the board of directors, or any other board committee, accept, directly or indirectly, any consulting, advisory, or other compensatory fee from the listed company or any of its subsidiaries or otherwise be an affiliated person of the listed company or any of its subsidiaries.

Our board of directors has undertaken a review of the independence of each director. Based on information provided by each director concerning his background, employment and affiliations, our board of directors has determined that three of our five directors, do not have relationships that would interfere with the exercise of independent judgment in carrying out the responsibilities of a director and that each of these directors is "independent" as that term is defined under the listing standards of the NYSE American. In making such determination, our board of directors considered the relationships that each such non-employee director has with us and all other facts and circumstances that our board of directors deemed relevant in determining his independence, including the beneficial ownership of our capital stock by each non-employee director.

**Committees of Our Board of Directors**

Following this offering, the board of directors will have established an Audit Committee, a Compensation Committee, and a Nominating and Corporate Governance Committee. The board will have adopted written charters for each of these committees specifying the scope of responsibilities of each of these committees and the means by which they carry out their responsibilities. Copies of the charters will be available on our website upon the closing of this offering. Our board of directors may establish other committees from time to time as it deems necessary or appropriate.

The composition and responsibilities of each committee of our board of directors are described below. Members will serve on these committees until their resignation or until otherwise determined by our board of directors. Our board of directors may establish other committees as it deems necessary or appropriate from time to time.

Although each committee will be directly responsible for evaluating certain enumerated risks and overseeing the management of such risks, the entire board of directors will be generally responsible for and is regularly informed through committee reports about such risks and any corresponding remediation efforts designed to mitigate such risks. In addition, appropriate committees of the board of directors will receive reports from senior management within the organization in order to enable the board of directors to understand risk identification, risk management and risk mitigation strategies. When a committee receives such a report, the chairman of the relevant committee reports on the discussion to the full board of directors during the committee reports portion of the next board of directors meeting. This enables the board of directors and its committees to coordinate the risk oversight role.

Upon our listing on the NYSE American, each committee's charter will be available under the Corporate Governance section of our website at www.ambitious.tv*.* The reference to our website address does not constitute incorporation by reference of the information contained at or available through our website, and you should not consider it to be a part of this prospectus.

***Audit Committee***

After this offering, we expect the initial members of our Audit Committee to be [_____]. [___] will chair the Audit Committee. All members of our audit committee meet the requirements for financial literacy under the applicable rules and regulations of the SEC and the NYSE American. Our board has determined that [ ] is an audit committee financial expert as defined under the applicable rules of the SEC and has the requisite financial sophistication as defined under the applicable rules and regulations of the NYSE American. The Audit Committee's main function is to oversee our accounting and financial reporting processes, internal systems of control, independent registered public accounting firm relationships and the audits of our financial statements. The Audit Committee's responsibilities include, among other things:

● appointing, approving the compensation of and assessing the independence of our registered public accounting firm;

● overseeing the work of our independent registered public accounting firm, including the receipt and consideration of reports from such firm;

● reviewing and discussing with management and the independent registered public accounting firm our annual and quarterly financial statements and related disclosures;

● monitoring our internal control over financial reporting, disclosure controls and procedures and code of business conduct and ethics;

● overseeing our internal audit function;

● overseeing our risk assessment and risk management policies;

● establishing policies regarding hiring employees from the independent registered public accounting firm and procedures for the receipt and retention of accounting related complaints and concerns;

● meeting independently with our internal auditing staff, independent registered public accounting firm and management;

● reviewing and approving or ratifying any related person transactions, and

● preparing the Audit Committee report required by SEC rules.

All audit and non-audit services, other than *de minimis* non-audit services, to be provided to us by our independent registered public accounting firm must be approved in advance by our Audit Committee.

***Compensation Committee***

After this offering, we expect the initial members of our Compensation Committee to be [_____]. [____] will chair the Compensation Committee. The primary purpose of our Compensation Committee is to discharge the responsibilities of our board of directors in overseeing our compensation policies, plans and programs and to review and determine the compensation to be paid to our executive officers, directors and other senior management, as appropriate. Specific responsibilities of our Compensation Committee include, among other things:

● reviewing and recommending corporate goals and objectives relevant to the compensation of our chief executive officer and other executive officers;

● making recommendations to our board of directors with respect to, the compensation level of our executive officers;

● reviewing and recommending to our board of directors employment agreements and significant arrangements or transactions with executive officers;

● reviewing and recommending to our board of directors with respect to director compensation, and

● overseeing and administering our equity-based incentive plan or plans.

Each member of our Compensation Committee is a non-employee director, as defined in Rule 16b-3 promulgated under the Exchange Act. Each member of the committee will meet the requirements for independence under the listing standards of the NYSE American and SEC rules and regulations. In arriving at these determinations, our board of directors will examine all factors relevant to determining whether any compensation committee member has a relationship to us that is material to that member's ability to be independent from management in connection with carrying out such member's duties as a compensation committee member.

***Nominating and Corporate Governance Committee***

After this offering, we expect the initial members of our Nominating and Corporate Governance Committee to be [_____]. [___] will chair the Nominating and Corporate Governance Committee. This committee's responsibilities include, among other things:

● identifying and evaluating candidates, including the nomination of incumbent directors for reelection and nominees recommended by stockholders, to serve on our board of directors;

● considering and making recommendations to our board of directors regarding the composition and chairmanship of the committees of our board of directors;

● developing and recommending to our board of directors' corporate governance principles, codes of conduct and compliance mechanisms, and

● overseeing periodic evaluations of the board of directors' performance, including committees of the board of directors.

When evaluating director candidates, the Nominating and Corporate Governance Committee may consider several factors, including relevant experience, independence, commitment, compatibility with the Chief Executive Officer and the board of directors' culture, prominence and understanding of the Company's business, as well as any other factors the Nominating and Corporate Governance Committee deems relevant at the time. The Nominating and Corporate Governance Committee makes a recommendation to the full board of directors as to any person it believes should be nominated by our board of directors, and our board of directors determines the nominees after considering the recommendation and report of the Nominating and Corporate Governance Committee. Each member of the committee will meet the requirements for independence under the listing standards of the NYSE American and SEC rules and regulations.

**Risk Oversight** 

Our board of directors has responsibility for the oversight of the Company's risk management processes and, either as a whole or through its committees, regularly discusses with management our major risk exposures, their potential impact on our business and the steps we take to manage them. The risk oversight process includes receiving regular reports from board committees and members of senior management to enable our board to understand the company's risk identification, risk management and risk mitigation strategies with respect to areas of potential material risk, including operations, finance, legal, regulatory, strategic and reputational risk.

**Compensation Committee Interlocks and Insider Participation**

No member of our compensation committee will have been a current or former officer or employee. None of our executive officers served as a director or a member of a compensation committee (or other committee serving an equivalent function) of any other entity, one of whose executive officers served as a director or member of our compensation committee during the last completed fiscal year.

**Code of Business Conduct and Ethics**

We have adopted a written code of business conduct and ethics that applies to our directors, officers and employees, including our principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions. A current copy of the code is posted on the Corporate Governance section of our website, www.ambitious.tv. In addition, we post on our website all disclosures that are required by law or the listing standards of the NYSE American Market concerning any amendments to, or waivers from, any provision of the code. The reference to our website address does not constitute incorporation by reference of the information contained at or available through our website, and you should not consider it to be a part of this prospectus.

**Clawback Policy**

Our board of directors have adopted a clawback policy permitting the Company to seek the recoupment of incentive compensation received by any of the Company's current and former executive officers (as determined by the board in accordance with Section 10D of the Exchange Act and the NYSE American rules) and such other senior executives/employees who may from time to time be deemed subject to the Clawback Policy by the board.

**Involvement in Certain Legal Proceedings** 

To the best of our knowledge, none of our directors or executive officers has, during the past 10 years, been involved in any legal proceedings described in Item 401(f) of Regulation S-K that are material to an evaluation of the ability or integrity of any director, person nominated to become a director or executive officer of the Company.

**EXECUTIVE OFFICER AND DIRECTOR COMPENSATION**

**Summary Compensation Table**

The following table provides information regarding the compensation awarded to or earned during 2025 and 2024, as applicable, by the named executive officers during the periods presented:

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **Name and Principal Position** | **Fiscal Year** | **Salary (1)** | **Bonus** | **Stock Awards** | **Option and Warrant Awards** | **Total** |
| Kirk E. Shaw, Chief Executive Officer | 2025 | $360000 | $0 | $0 | $0 | $360000 |
|  | 2024 | $0 | $0 | $0 | $0 | $0 |
| Chris Philip, Chief Operating Officer | 2025 | $0 | $0 | $0 | $0 | $0 |
|  | 2024 | $0 | $0 | $0 | $0 | $0 |

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(1) The
 amount represents salary earned during fiscal year 2025 but not paid as of December 31, 2025.

**Employment Agreements**

We will be entering into employment agreements with our executives prior to the completion of the initial public offering.

 

**Director Compensation**

We have entered into agreements with four of our director nominees, effective upon the completion of the Offering.

Under these agreements, each non-employee director will receive compensation consisting of shares of the Company's common stock, par value $0.001 per share, for their service as a director. Beginning with the first full fiscal quarter following the offering, each director will be eligible to receive one-quarter of the total share award per fiscal quarter, subject to continued service. The shares relating to the first fiscal quarter will vest on the six-month anniversary of the offering date, and shares relating to subsequent fiscal quarters will vest in full upon grant. In the event of termination prior to full vesting, compensation will be pro-rated based on days served.

Each director's initial term will be one year or until the next annual meeting of stockholders, unless earlier terminated. The agreements may be terminated upon resignation or removal, or by the Company for cause, including felony conviction, willful misconduct, material breach (uncured for 30 days), or other disqualifying events.

The agreements include customary confidentiality provisions, which survive for one year following termination (and longer for trade secrets), and require compliance with the Company's Insider Trading Policy, Code of Business Conduct and Ethics, and Clawback Policy. Directors may accept other positions with Board approval, provided there is no conflict of interest.

We have also agreed to indemnify each director to the fullest extent permitted by applicable law and to maintain directors' and officers' liability insurance during their service. The agreements are governed by Nevada law.

**CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS**

**Policies and Procedures for Related Person Transactions**

Our board of directors has adopted written policies and procedures for the review of any transaction, arrangement or relationship in which we are a participant, the amount involved exceeds $120,000 and one of our executive officers, directors, director nominees or 5% stockholders, or their immediate family members, each of whom we refer to as a "related person," has a direct or indirect material interest.

If a related person proposes to enter into such a transaction, arrangement or relationship, which we refer to as a "related person transaction," the related person must report the proposed related person transaction to our Chief Financial Officer. The policy calls for the proposed related person transaction to be reviewed by our Audit Committee and, if deemed appropriate, approved by our Audit Committee. Whenever practicable, the reporting, review and approval will occur prior to entry into the transaction. If advance review and approval is not practicable, the Audit Committee will review and, in its discretion, may ratify the related person transaction. The policy also permits the chairman of the Audit Committee to review and, if deemed appropriate, approve proposed related person transactions that arise between Audit Committee meetings, subject to ratification by the Audit Committee at its next meeting. Any related person transactions that are ongoing in nature will be reviewed annually.

A related person transaction reviewed under the policy will be considered approved or ratified if it is authorized by the Audit Committee after full disclosure of the related person's interest in the transaction. As appropriate for the circumstances, the Audit Committee will review and consider:

● the related person's interest in the related person transaction;

● the approximate dollar value of the amount involved in the related person transaction;

● the approximate dollar value of the related person's interest in the transaction without regard to the amount of any profit or loss;

● whether the transaction was undertaken in the ordinary course of our business;

● whether the terms of the transaction are no less favorable to us than terms that could have been reached with an unrelated third party; and

● the purpose of, and the potential benefits to us of, the transaction.

The Audit Committee may approve or ratify the transaction only if it determines that, under all of the circumstances, the transaction is in our best interests. The Audit Committee may impose any conditions on the related person transaction that it deems appropriate.

In addition to the transactions that are excluded by the instructions to the SEC's related person transaction disclosure rule, our board of directors has determined that the following transactions do not create any material direct or indirect interest on behalf of related persons and, therefore, are not related person transactions for purposes of this policy:

● interests arising solely from the related person's position as an executive officer of another entity (whether or not the person is also a director of such entity) that is a participant in the transaction, where (i) the related person and all other related persons own in the aggregate less than a 10% equity interest in such entity, (ii) the related person and his or her immediate family members are not involved in the negotiation of the terms of the transaction and do not receive any special benefits as a result of the transaction, and (iii) the amount involved in the transaction is less than the greater of $200,000 or 5% of the annual gross revenues of the company receiving payment under the transaction; and

● a transaction that is specifically contemplated by provisions of our certificate of incorporation, as amended and restated, or bylaws.

**Related Party Transactions**

*Promissory Note*

During the year ended December 31, 2022, the Company issued a promissory note to Roots Properties Inc. (the "First Roots Promissory Note"), a related party where Kirk Shaw, our Chief Executive Officer, serves as the President. The promissory note has a principal balance of $211,290 and matures (i) when the Company gets a financing with 25% of any financing going towards loan repayment until it is all paid, or (ii) December 31, 2025. The First Roots Promissory Note will bear interest at the rate of 10% per annum. As of December 31, 2025, and December 31, 2024, the principal balance related to the First Roots Promissory Note was $211,290 and $211,290, respectively.

In December 2023, the Company issued another promissory note to Roots Properties Inc. (the "Second Roots Promissory Note"). Pursuant to the Second Roots Promissory Note, Roots Properties will, from time to time, loan funds to the Company to cover operating expenses and production costs. The Second Roots Promissory Note has the following terms: a principal balance of up to $300,000. The Second Roots Promissory Note will be repaid (i) when the Company gets financing, with 25% of any financing going towards loan repayment until it is fully paid, or (ii) by December 31, 2026. The Second Roots Promissory Note will bear interest at the rate of 10% per annum. During the year ended December 31, 2024, Roots Properties advanced the Company $69,235, and the Company made repayments of $49,000. During the year ended December 31, 2025, Roots Properties advanced the Company an additional $169,500, and the Company made repayments of $24,001. As of December 31, 2025, and December 31, 2024, the principal balance related to this Roots promissory note was $377,024 and $20,235, respectively.

In December 2023, the Company issued a promissory note to JC3 Productions ("JC3 Note"), where Kirk Shaw, our Chief Executive Officer, serves as President. The JC3 Note has the following principal balance of $25,000. The JC3 Note will be repaid when the Company gets financing, with 25% of any financing going towards loan repayment until it is fully paid, or (ii) by December 31, 2026. The JC3 Note will bear interest at the rate of 10% per annum. As of December 31, 2025, and December 31, 2024, the principal balance related to the JC3 promissory note was $25,000 and $25,000, respectively.

In December 2023, the Company issued a promissory note to Kirk Shaw (the "First Shaw Note"), our Chief Executive Officer. From time-to-time Mr. Shaw will loan funds to the Company to cover operating expenses and production costs. The First Shaw Note has a principal balance of up to $300,000 which was amended to up to $900,000 on September 30, 2025. The First Shaw Note will be repaid when the Company gets financing, with 25% of any financing going towards loan repayment until it is fully paid, or (ii) December 31, 2026. The First Shaw Note will bear interest at the rate of 10% per annum. During the year ended December 31, 2023, Mr. Shaw advanced the Company $56,594. During the year ended December 31, 2024, Mr. Shaw advanced the Company $147,570, and the Company made repayments of $52,572. During the year ended December 31, 2025, Mr. Shaw advanced the Company an additional $866,635, and the Company made repayments of $107,262. As of December 31, 2025, and December 31, 2024, the principal balance related to the First Shaw Note was $910,965 and $151,792, respectively.

On September 30, 2025, the Company and Mr. Shaw entered into an amendment to the First Shaw Note, pursuant to which the maximum aggregate principal amount available under the note was increased from $300,000 to $900,000. No other material terms of the note were modified.

In December 2023, the Company issued a promissory note to Kirk Shaw (the "Second Shaw Note"). The Second Shaw Note has a principal balance of $255,088. The Second Shaw Note will be repaid when the Company gets financing, with 25% of any financing going towards loan repayment until it is fully paid, or (ii) by December 31, 2026. The Second Shaw Note will bear interest at the rate of 10% per annum. During the year ended December 31, 2023, the Company made repayments of $30,073. As of December 31, 2025, and December 31, 2024, the principal balance related to the Second Shaw Note was $225,015 and $225,015, respectively.

*Transfers of Subsidiary Interests*

During the three months ended March 31, 2024, the Company transferred its 100% ownership interests in AMFAD and CD, each a wholly owned subsidiary, to Press Play Productions, LLC ("Press Play"), for total consideration of $20. At the time of the transfer, AMFAD and CD collectively owned the film rights to *All My Friends Are Dead* and *Cold Deck*. Press Play is solely owned and controlled by Christos Shaw, the son of Kirk Shaw.

*Preferred Stock – Series A*

During the year ended December 31, 2020, the Company issued 205,474 shares of Series A Preferred Stock, par value $0.0001 per share, for aggregate cash consideration of $205,474.

During the year ended December 31, 2021, the Company issued 31,867 shares of Series A Preferred Stock, par value $0.0001 per share, for aggregate cash consideration of $31,867.

The issuances were made in reliance upon the exemption from registration provided by Regulation S under the Securities Act of 1933, as amended. The shares were issued as restricted securities, and no underwriting discounts or commissions were paid in connection with the issuances.

The shares were issued to Roots Properties Inc., an entity controlled by the Chief Executive Officer and certain of his immediate family members. These transactions were approved by the Company's board of directors and constitute related party transactions.

In April 2026, the Company entered into four Securities Purchase Agreements with accredited investors pursuant to which the Company agreed to sell an aggregate of thirteen (13) Units (the "Bridge Financing"). Each Unit is priced at $32,000 and consists of (i) 10,000 shares of the Company's Series A Convertible Preferred Stock, par value $0.0001 per share, and (ii) warrants to purchase 10,000 shares of the Company's common stock at an exercise price set forth in the warrant with a term of three years from the date of issuance.

The Company received $96,000 in cash from the sale of three (3) Units. In addition, an existing note holder, Roots Properties Inc., used $320,000 of outstanding principal under a note payable to purchase ten (10) Units, which was accounted for as a non-cash financing transaction and resulted in a corresponding reduction of the Company's indebtedness.

Three of the investors in the Bridge Financing are adult children of Kirk Shaw, the Company's Chief Executive Officer. In addition, Roots Properties Inc. is an entity for which Mr. Shaw serves as President. Accordingly, these transactions constitute related party transactions.

The securities issued in the Bridge Financing were offered and sold in reliance on the exemption from the registration requirements of the Securities Act of 1933, as amended, provided by Section 4(a)(2) thereof and Rule 506(b) of Regulation D promulgated thereunder, as transactions not involving a public offering. The investors have represented that they are accredited investors as defined in Rule 501 of Regulation D.

 ****

*Related Parties*

The related parties to the above transactions are:

● **Kirk Shaw**, Chief Executive Officer of Ambitious Entertainment.

● **Roots Properties Inc.**, a company for which Kirk Shaw, the Company's Chief Executive Officer, serves as President.

● **Press Play Productions, LLC**, a limited liability company solely owned and controlled by Christos Shaw, Kirk Shaw's son.

**PRINCIPAL STOCKHOLDERS**

**Security Ownership of Management and Certain Beneficial Owners**

The following table sets forth the beneficial ownership of our common stock as of the date of this prospectus by:

● each stockholder known by us to beneficially own more than 5% of our outstanding common stock;

● each of our directors;

● each of our named executive officers; and

● all of our directors and executive officers as a group.

We have determined beneficial ownership in accordance with the rules of the SEC. These rules generally provide that a person is the beneficial owner of securities if such person has or shares the power to vote or direct the voting of securities, or to dispose or direct the disposition of securities. A security holder is also deemed to be, as of any date, the beneficial owner of all securities that such security holder has the right to acquire within 60 days after such date through (i) the exercise of any option or warrant, (ii) the conversion of a security, (iii) the power to revoke a trust, discretionary account or similar arrangement or (iv) the automatic termination of a trust, discretionary account or similar arrangement. Except as disclosed in the footnotes to this table and subject to applicable community property laws, we believe that each person identified in the table has sole voting and investment power over all of the shares shown opposite such person's name.

Unless otherwise noted, the address of each shareholder is Ambitious Entertainment, Inc., 744 Hastings Street West, Suite 207, Vancouver, British Columbia V6C 1A5, Canada.

The percentage of beneficial ownership is based on 16,080,241 shares of our common stock outstanding as of the date of this prospectus.

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| | | | | |
|:---|:---|:---|:---|:---|
| | **Shares of Common Stock Beneficially Owned Prior to the Offering** | **Shares of Common Stock Beneficially Owned Prior to the Offering** | **Shares of Common Stock Beneficially Owned After the Offering** | **Shares of Common Stock Beneficially Owned After the Offering** |
| <br>**Name of Beneficial Owner** | **Number of**<br>**Shares** |<br>**Percentage** | **Number of**<br>**Shares** |<br>**Percentage** |
| **Executive Officers and Directors** |  |  |  |  |
| Kirk E. Shaw(1)(2) | 517099 | 3.22% | 517099 | 2.63% |
| Chris Philip |  |  |  |  |
| Patricio Rabuffetti |  |  |  |  |
| Adam Berk | 250000 | 1.55% | 250000 | 1.27% |
| Lucy Chua |  |  |  |  |
| Owen May(3) | 372143 | 2.31% | 372143 | 1.90% |
| **All directors and executive officers as a group (6 persons)** | 1139242 | 7.08% | 1139242 | 5.80% |
| **Greater than 5% Shareholders** |  |  |  |  |
| OGGI Equity Srl.(4) | 1104079 | 6.87% | 1104079 | 5.62% |
| Larry St. Pierre(5) | 1999000 | 12.43% | 1999000 | 10.18% |
| Christos B. Shaw(6) | 1606416 | 9.99% | 1961616 | 9.99% |
| GPL Ventures, LLC(7) | 1606416 | 9.99% | 1961616 | 9.99% |

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(1) Consists of (a) 250,000 shares of common stock, (b) 100,000 shares of common stock issuable upon the conversion of Series A preferred stock held by Roots Properties Inc., (c) 21,645 shares of common stock issuable upon the exercise of Series B warrants held by Roots Properties Inc., (d) 21,645 shares of common stock issuable upon the exercise of Series C warrants held by Roots Properties Inc., (e) 100,000 shares of common stock issuable upon the exercise of the Bridge Financing warrants held by Roots Properties Inc., and (f) 23,809 shares of common stock issuable upon the conversion of debt held by Roots Properties Inc. Roots Properties Inc. is wholly owned by Kirk E. Shaw. Kirk E. Shaw has voting or investment control over the shares held by Roots Properties Inc. The business address of Roots Properties Inc. is 12 Water Street, Unit 604, Vancouver, BC V6B 1A5, Canada.

(2) Does not include (a) 677,776 shares of common stock held by the reporting person's adult daughter, Sophia B. Shaw, consisting of (i) 300,000 shares of common stock, (ii) 188,888 shares of common stock issuable upon the conversion of Series A preferred stock, (iii) 178,888 shares of common stock issuable upon the exercise of Bridge Financing Warrants, (iv) 10,000 shares of common stock issuable upon the exercise of Bridge Financing warrants, and (b) 326,000 shares of common stock held by the reporting person's adult son, Lukas B. Shaw, consisting of (i) 300,000 shares of common stock, (ii) 13,000 shares of common stock issuable upon the conversion of Series A preferred stock, (iii) 3,000 shares of common stock issuable upon the exercise of Bridge Financing Warrants, (iv) 10,000 shares of common stock issuable upon the exercise of Bridge Financing warrants. The reporting person disclaims beneficial ownership of such shares.

(3) Consists of (a) 350,000 shares of common stock, (b) 7,143 shares of common stock issuable upon the exercise of Series B warrants, (c) 7,143 shares of common stock issuable upon the exercise of Series C warrants, and (d) 7,857 shares of common stock issuable upon the conversion of debt, in each case held by May Davis Partners. Owen May has voting or investment control over the shares held by May Davis Partners. The address of May Davis Partners is 2 Park Avenue, 20<sup>th</sup> Floor, New York, NY 10016.

(4) Robert Simpson has voting or investment control over the shares held by OGGI Equity Srl. The business address of OGGI Equity Srl. is Via Dell' Annunciata, 23/4, 20121 Milano, Italy.

(5) Does not include (a) 42,857 shares of common stock issuable upon the exercise of Series B warrants or 42,857 shares of common stock issuable upon the exercise of Series C warrants (none of which are exercisable within 60 days of the date of this prospectus) and (b) 47,143 shares of common stock issuable upon the conversion of debt (none of which are convertible within 60 days of the date of this prospectus). Larry St. Pierre disclaims beneficial ownership of a total of 1,905,000 shares of common stock owned by his wife and his adult children. The address of Larry St. Pierre is 6 Antares, Unit 12, Ottawa, Ontario K2E 8A9, Canada.

(6) Consists of (a) 300,000 shares of common stock, (b) 13,000 shares of common stock issuable upon the conversion of Series A preferred stock, (c) 425,000 shares of common stock issuable upon the exercise of Series A warrants, (d) 10,000 shares of common stock issuable upon the exercise of the Bridge Financing warrants, (e) 3,000 shares of common stock issuable upon the exercise of Series A warrants, (f) 750,000 shares of common stock held by CSL Properties, Inc., (g) 52,453 shares of common stock issuable upon the conversion of Series A preferred stock, and (h) 52,453 shares of common stock issuable upon the exercise of Bridge Financing Warrants held by CSL Properties, Inc., an entity that is wholly owned by Christos B. Shaw, the son of Kirk Shaw, less 1,575,000 shares due to limitation upon exercise or conversion in excess of 9.99%. Christos B. Shaw has voting or investment control over the shares held by CSL Properties, Inc. The address of CSL Properties, Inc. is 133 Keefer Street, Unit 40, Vancouver, BC V6Z 1V8, Canada.

(7) Consists of (a) 500,000 shares of common stock, (b) 240,144 shares of common stock issuable upon the exercise of Series B warrants, (c) 240,144 shares of common stock issuable upon the exercise of Series C warrants, (d) 78,571 shares of common stock issuable upon conversion pursuant to the convertible promissory note dated March 1, 2021, (e) 157,143 shares of common stock issuable upon conversion pursuant to the convertible promissory note dated March 1, 2021, (f) 12,571 shares of common stock issuable upon conversion pursuant to the convertible promissory note dated April 7, 2022, (g) 15,873 shares of common stock issuable upon conversion pursuant to the convertible promissory note dated January 9, 2023 and (h) 362,000 shares of common stock issuable upon exercise of Series A warrants, less 1,638,000 shares due to limitation upon exercise or conversion in excess of 9.99%. The voting decisions with respect to the securities held by GPL Ventures, LLC are made by Cosmin Panait. The address of GPL Ventures, LLC is 1 Penn Plaza #6196, New York, NY 10119-0002.

**DESCRIPTION OF CAPITAL STOCK**

*The following is a description of our capital stock and the material provisions of our articles of incorporation, bylaws, and other agreements to which we and our stockholders are parties, in each case upon the closing of this offering.* 

**General**

The following description of our capital stock and provisions of our articles of incorporation and bylaws, each as amended and restated, are summaries and are qualified by reference to our articles of incorporation and bylaws, each as amended and restated, themselves. By becoming a stockholder in our Company, you will be deemed to have notice of and consented to these provisions of our articles of incorporation and bylaws, each as amended and restated.

**Authorized Capital Stock**

We are currently authorized to issue up to 151,000,000 shares of capital stock consisting of: 150,000,000 shares of common stock, par value $0.0001 per share and 1,000,000 shares of preferred stock, par value of $0.0001 per share, all of which have been designated as Series A preferred stock. As of the date of this prospectus, 15,712,900 shares of common stock were issued and outstanding and there were 367,341 shares of Series A preferred stock were issued and outstanding.

**Common Stock**

Holders of shares of our common stock are entitled to one vote for each share held on all matters submitted to a vote of stockholders and do not have cumulative voting rights. An election of directors by our stockholders shall be determined by a plurality of the votes cast by the stockholders entitled to vote in the election. Holders of common stock are entitled to receive proportionately any dividends as may be declared by our board of directors, subject to any preferential dividend rights of outstanding preferred stock. Our Board of Directors is not obligated to declare a dividend. It is not anticipated that dividends will be paid in the foreseeable future.

In the event of our liquidation or dissolution, the holders of common stock are entitled to receive proportionately all assets available for distribution to stockholders after the payment of all debts and other liabilities and subject to the prior rights of any outstanding preferred stock. Holders of common stock have no preemptive, subscription, redemption, or conversion rights. The rights, preferences, and privileges of holders of common stock are subject to and may be adversely affected by the rights of the holders of shares of any series of preferred stock that we may designate and issue in the future.

Holders of our common stock do not have preemptive rights to subscribe to additional shares if issued. There are no conversion, redemption, sinking fund, or similar provisions regarding the common stock. All outstanding shares of common stock are fully paid and non-assessable.

**Preferred Stock**

Under the terms of our articles of incorporation, as amended and restated, our board of directors is authorized to issue shares of preferred stock in one or more classes or series without stockholder approval. Our board of directors has the discretion to determine the rights, preferences, privileges, and restrictions, including voting rights, dividend rights, conversion rights, redemption privileges, and liquidation preferences, of each series of preferred stock.

Our board has authorized 1,000,000 shares of Series A convertible preferred stock ("Series A Preferred Stock") with a par value of $0.0001 per share.

 

*Ranking*

The Series A ranks senior to common stock and any junior securities, on parity with parity securities, and junior to any Senior Securities, in each case as to dividends or distributions of assets upon liquidation, dissolution, or winding up of the Corporation. The Series A preferred stock is non-participating.

*Dividends*

From the date of issuance until the earlier of the consummation of this offering and conversion of shares of the Series A preferred stock, each share of Series A preferred stock accrues cumulative dividends at a rate of 10% per annum, payable solely in-kind as additional shares of Series A preferred stock.

 

*Conversion*

Each share of Series A is convertible into one share of common stock at the option of the holder at any time at a conversion price of $3.20 per share (the "Conversion Price"), subject to equitable adjustment for stock splits, reverse stock splits, stock dividends, recapitalizations, or similar transactions. Unless approved by the stockholders of the Company, conversion of shares of Series A preferred stock is limited such that the aggregate number of shares of common stock issuable upon conversion cannot exceed 19.99% of number shares of common stock outstanding.

 

*Beneficial Ownership Limitation*

Conversion is subject to a 4.99% beneficial ownership limitation (which may be increased to 9.99% upon 61 days' written notice).

 

 

*IPO Leak-Out Conversion*

After the consummation of this offering, if the shares of common stock trades at or above $4.25 per share for at least 10 consecutive trading days, holders of shares of Series A preferred stock may convert up to 25% of their then-outstanding shares.

 

*Qualified IPO True-Up*

If, six months after this offering, the 10-day volume-weighted average price of shares of Common Stock ("VWAP") is less than the initial public offering price per share, the Company will adjust the conversion ratio on a one-time basis such that holders receive additional shares of Common Stock equal to the quotient obtained by dividing the initial public offering by the VWAP multiplied by the number of shares otherwise issuable.

 

*Price Protection*

Except for Exempt Issuances, if the Company issues securities at an price less than the Conversion Price, the Conversion Price shall be reduced to the lesser of the Floor Price or the new issuance price. "Floor Price" means 20% of the Minimum Price (as such term is defined by the rules and regulations of the Nasdaq Stock Market LLC, Rule 5635(d)(a)(A)) or such lower amount as permitted, from time to time, by the Principal Market, subject to adjustments for share splits, share dividends, share combinations, recapitalizations or other similar events.

 

*Liquidation Preference*

Upon a liquidation of the Company, holders of Series A preferred stock are entitled to receive, prior to distributions to junior securities but pari passu with any securities created specifically ranking on parity with the Series A preferred stock, an amount equal to the Conversion Price (the "Liquidation Preference"). After payment of the Liquidation Preference, holders receive no further distribution and remaining funds are distributed to holders of shares of common stock.

 

*Participation in Future Financings*

Holders of outstanding Series A preferred stock have the right, for a period of six months following the initial issuance of Series A preferred stock, to participate in up to an aggregate of 30% of any subsequent financing involving the issuance of shares of common stock or common stock equivalents for cash consideration in a transaction exempt from the registration requirements of the Securities Act, on the same terms, conditions, and price as other participants in such financing.

 

*Triggering Events*

Upon the occurrence of certain events, each holder may, at its option, convert all or any portion of its Series A preferred stock into Common Stock at a price which is the lesser of (i) the Conversion Price or (ii) subject to approval of the stockholders of the Company, 70% of the lowest closing price for the five trading days prior to the date of the conversion notice.

**Options**

As of the date of this prospectus, there were no outstanding stock options pursuant to our equity plan.

**Anti-Takeover Matters**

***Anti-Takeover Effects of Certain Provisions of Nevada Law***

We are subject to Section 78.438 of the Nevada Revised Statutes (NRS), an anti-takeover law. In general, Section 78.438 prohibits a Nevada corporation from engaging in any business combination with any interested stockholder for a period of two years following the date that the stockholder became an interested stockholder, unless prior to that date, the board of directors of the corporation approved either the business combination or the transaction that resulted in the stockholder becoming an interested stockholder, or if after the date that the stockholder becomes an interested stockholder the business combination is approved by the board of directors and by 60% of the voting power of all disinterested stockholders at either an annual or special meeting of the stockholders of the corporation. Section 78.439 provides that business combinations after the two-year period following the date that the stockholder becomes an interested stockholder may also be prohibited unless either approved by the corporation's directors before the stock acquisition, or by a majority of the disinterested stockholders or unless the price and terms of the transaction meet other criteria set forth in the statute.

Section 78.416 of the NRS defines "business combination" to include the following:

● any merger or consolidation involving the corporation and the interested stockholder or any other corporation which is an affiliate or associate of the interested stockholder;

● any sale, transfer, pledge or other disposition of the assets of the corporation involving the interested stockholder or any affiliate or associate of the interested stockholder if the assets transferred have a market value equal to 5% or more of all of the assets of the corporation or 5% or more of the value of the outstanding shares of the corporation or represent 10% or more of the earning power of the corporation;

○ subject to certain exceptions, any transaction that results in the issuance or transfer by the corporation of any stock of the corporation to an interested stockholder, with a market value of 5% or more of the value of the outstanding shares of the corporation;

○ the adoption of a plan of liquidation proposed by or under any arrangement with the interested stockholder or any affiliate or associate of the interested stockholder;

○ any transaction involving the corporation that has the effect of increasing the proportionate share of the stock of any class or series of voting shares of securities convertible into voting shares of the corporation beneficially owned by the interested stockholder or any affiliate or associate of the interested stockholder; or

○ the receipt by the interested stockholder or any affiliate or associate of the interested stockholder of the benefit, except proportionately as a stockholder of the corporation, of any loans, advances, guarantees, pledges or other financial benefits provided by or through the corporation.

In general, Section 78.423 of the NRS defines an interested stockholder as any entity or person beneficially owning, directly or indirectly, 10% or more of the outstanding voting stock of the corporation and any entity or person affiliated with or controlling or controlled by any of these entities or persons.

***Control Share Acquisitions***

Sections 78.378 through 78.3793 of the NRS limit the voting rights of certain acquired shares in a corporation. The provisions apply to any acquisition of outstanding voting securities of a Nevada corporation that has 200 or more stockholders, at least 100 of which are Nevada residents, and conducts business in Nevada (an "issuing corporation") resulting in ownership of one of the following categories of an issuing corporation's then outstanding voting securities: (i) twenty percent or more but less than thirty-three percent; (ii) thirty-three percent or more but less than fifty percent; or (iii) fifty percent or more. The securities acquired in such acquisition are denied voting rights unless a majority of the security holders approve the granting of such voting rights. Unless an issuing corporation's articles of incorporation or bylaws then in effect provide otherwise: (i) voting securities acquired are also redeemable in part or in whole by an issuing corporation at the average price paid for the securities within 30 days if the acquiring person has not given a timely information statement to an issuing corporation or if the stockholders vote not to grant voting rights to the acquiring person's securities, and (ii) if outstanding securities and the security holders grant voting rights to such acquiring person, then any security holder who voted against granting voting rights to the acquiring person may demand the purchase from an issuing corporation, for fair value, all or any portion of his securities. These provisions do not apply to acquisitions made pursuant to the laws of descent and distribution, the enforcement of a judgment, or the satisfaction of a security interest, or made in connection with certain mergers or reorganizations.

***Recent Amendment to Nevada Law***

On May 30, 2025, Nevada enacted Assembly Bill No. 239 ("AB239"), which introduced certain updates to Nevada corporate law that may further discourage unsolicited or hostile takeover attempts. Among other changes, AB239 codifies a definition of "controlling stockholder" as a stockholder having voting power sufficient to elect a majority of the corporation's directors, and imposes a limited fiduciary duty requiring such controlling stockholder to refrain from exerting undue influence over directors or officers in a manner that would induce a breach of fiduciary duty and result in a material, non-ratable benefit to the controlling stockholder. The statute also provides a statutory safe harbor that shields controlling stockholders from liability where the conflict transaction is approved or recommended by a committee of disinterested directors, subject to rebuttal only under narrow circumstances.

In addition, AB239 clarifies that the exercise or withholding of voting power by a controlling stockholder, standing alone, does not constitute a breach of fiduciary duty. These recent changes may enhance the ability of our board of directors and certain stockholders to resist hostile takeovers or changes in control not supported by our board, particularly where procedural protections are observed.

**Limitations of Director Liability and Indemnification of Directors and Officers**

Neither our amended and restated articles of incorporation, nor our amended and restated bylaws, prevent us from indemnifying our officers, directors and agents to the extent permitted under the NRS. Section 78.7502 of the NRS provides that a corporation may indemnify any director, officer, employee, or agent of a corporation against expenses, including fees, actually and reasonably incurred by him in connection with any defense to the extent that a director, officer, employee, or agent of a corporation has been successful on the merits or otherwise in defense of any action, suit or proceeding referred to in Sections 78.7502(1) or 78.7502(2) of the NRS, or in defense of any claim, issue, or matter therein.

Section 78.7502(1) of the NRS provides that a corporation may indemnify any person who was or is a party or is threatened to be made a party to any threatened, pending or completed action, suit or proceeding, whether civil, criminal, administrative or investigative, except an action by or in the right of the corporation, by reason of the fact that he is or was a director, officer, employee or agent of the corporation, or is or was serving at the request of the corporation as a director, officer, employee or agent of another corporation, partnership, joint venture, trust or other enterprise, against expenses, including attorneys' fees, judgments, fines and amounts paid in settlement actually and reasonably incurred by him in connection with the action, suit or proceeding if he: (a) is not liable pursuant to NRS 78.138; or (b) acted in good faith and in a manner which he reasonably believed to be in or not opposed to the best interests of the corporation, and, with respect to any criminal action or proceeding, had no reasonable cause to believe his conduct was unlawful.

Section 78.7502(2) of the NRS provides that a corporation may indemnify any person who was or is a party or is threatened to be made a party to any threatened, pending or completed action or suit by or in the right of the corporation to procure a judgment in its favor by reason of the fact that he is or was a director, officer, employee or agent of the corporation, or is or was serving at the request of the corporation as a director, officer, employee or agent of another corporation, partnership, joint venture, trust or other enterprise against expenses, including amounts paid in settlement and attorneys' fees actually and reasonably incurred by him in connection with the defense or settlement of the action or suit if he: (a) is not liable pursuant to NRS 78.138; or (b) acted in good faith and in a manner which he reasonably believed to be in or not opposed to the best interests of the corporation. Indemnification may not be made for any claim, issue or matter as to which such a person has been adjudged by a court of competent jurisdiction, after exhaustion of all appeals there from, to be liable to the corporation or for amounts paid in settlement to the corporation, unless and only to the extent that the court in which the action or suit was brought or other court of competent jurisdiction determines upon application that in view of all the circumstances of the case, the person is fairly and reasonably entitled to indemnity for such expenses as the court deems proper.

Section 78.747 of the NRS provides that except as otherwise provided by specific statute, no director or officer of a corporation is individually liable for a debt or liability of the corporation, unless the director or officer acts as the alter ego of the corporation. The court as a matter of law must determine the question of whether a director or officer acts as the alter ego of a corporation.

Our amended and restated bylaws provide that the Company shall, to the fullest extent permitted by the provisions of Section 78.751 of the Nevada Revised Statutes, indemnify any and all persons whom it shall have the power to indemnify under such section.

Insofar as indemnification for liabilities arising under the Securities Act may be permitted to directors, officers and controlling persons of the Company pursuant to the foregoing provisions, or otherwise, we have been advised that, in the opinion of the SEC, such indemnification is against public policy as expressed in such Act and is, therefore, unenforceable.

We will enter into agreements with our officers and directors to provide contractual indemnification in addition to the indemnification provided for in our amended and restated articles of incorporation and amended and restated bylaws.

We do not currently carry directors' and officers' insurance. However, we may in the future purchase a policy of directors' and officers' liability insurance that insures our officers and directors against the cost of defense, settlement, or payment of a judgment in some circumstances and insures us against our obligations to indemnify our officers and directors.

These provisions may discourage stockholders from bringing a lawsuit against our directors for breach of their fiduciary duty. These provisions also may have the effect of reducing the likelihood of derivative litigation against officers and directors, even though such an action, if successful, might otherwise benefit us and our stockholders. Furthermore, a stockholder's investment may be adversely affected to the extent we pay the costs of settlement and damage awards against officers and directors pursuant to these indemnification provisions.

We believe that these provisions and the indemnity agreements are necessary to attract and retain talented and experienced officers and directors.

At present, there is no pending litigation or proceeding involving any of our directors or officers where indemnification will be required or permitted. We are not aware of any threatened litigation or proceeding that might result in a claim for such indemnification.

**Transfer Agent and Registrar**

The transfer agent and registrar for our common stock is Olde Monmouth Stock Transfer Co. Inc. The transfer agent's address is 200 Memorial Parkway, Atlantic Highlands, New Jersey 07716, and its telephone number is (732) 872-2727.

**SHARES ELIGIBLE FOR FUTURE SALE**

Prior to this offering, there has been no public market for our shares. Future sales of our common stock in the public market, or the availability of such shares for sale in the public market, could adversely affect market prices prevailing from time to time. As described below, only a limited number of shares will be available for sale shortly after this offering due to contractual and legal restrictions on resale. Nevertheless, sales of our common stock in the public market after such restrictions lapse, or the perception that those sales may occur, could adversely affect the prevailing market price at such time and our ability to raise equity capital in the future.

Upon the completion of this offering, 19,268,456 shares of our common stock will be outstanding, assuming the automatic conversion of all convertible notes into an aggregate of shares of our common stock upon the closing of this offering, no exercise of the representative of the underwriter's option to purchase additional shares and no exercise of outstanding warrants or options. Of the outstanding shares, all of the shares sold in this offering will be freely tradable, except that any shares held by our affiliates, as that term is defined in Rule 144 under the Securities Act, may only be sold in compliance with the limitations described below. All remaining shares of common stock held by existing stockholders immediately prior to the completion of this offering will be "restricted securities" as such term is defined in Rule 144. These restricted securities were issued and sold by us, or will be issued and sold by us, in private transactions and are eligible for public sale only if registered under the Securities Act or if they qualify for an exemption from registration under the Securities Act, including the exemptions provided by Rule 144 or Rule 701, summarized below.

**Rule 144**

In general, under Rule 144, beginning 90 days after the date of this prospectus, any person who is not our affiliate and has not been our affiliate at any time during the preceding three months and has held their shares for at least six months, including the holding period of any prior owner other than one of our affiliates, may sell shares without restriction, subject to the availability of current public information about us. In addition, under Rule 144, any person who is not our affiliate and has not been our affiliate at any time during the preceding three months and has held their shares for at least one year, including the holding period of any prior owner other than one of our affiliates, would be entitled to sell an unlimited number of shares immediately upon the closing of this offering without regard to whether current public information about us is available.

Beginning 90 days after the date of this prospectus, a person who is our affiliate or who was our affiliate at any time during the preceding three months may sell any unrestricted securities, as well as restricted securities that the person has beneficially owned for at least six months, including the holding period of any prior owner other than one of our affiliates, under Rule 144. Affiliates selling restricted or unrestricted securities may sell a number of shares within any three-month period that does not exceed the greater of:

● 1% of the number of shares then outstanding, which will equal approximately shares immediately after this offering, assuming no exercise of the representative of the underwriter's option to purchase additional shares; or

● the average weekly trading volume in our common stock on the NYSE American during the four calendar weeks preceding the filing of a notice on Form 144 with respect to such sale.

Sales under Rule 144 by our affiliates are also subject to "manner of sale" provisions and notice requirements and to the availability of current public information about us.

**Regulation S**

Regulation S under the Securities Act provides that securities owned by any person may be sold without registration in the United States, provided that the sale is effected in an "offshore transaction" and no "directed selling efforts" are made in the United States (as these terms are defined in Regulation S) and subject to certain other conditions. In general, this means that our shares may be sold in some manner outside the United States without requiring registration in the United States.

**Rule 701**

In general, under Rule 701 of the Securities Act, any of our employees, consultants or advisors, other than our affiliates, who purchased shares from us in connection with a qualified compensatory stock plan or other written agreement is eligible to resell these shares 90 days after the date of this prospectus in reliance on Rule 144, but without compliance with the holding period requirements of Rule 144 and without regard to the volume of such sales or the availability of public information about us.

However, substantially all Rule 701 shares are subject to lock-up agreements as described below and under "Underwriting" included elsewhere in this prospectus and will become eligible for sale upon the expiration of the restrictions set forth in those agreements.

**Lock-Up Agreements**

In connection with this offering, we, our directors and officers and holders of more than 5% of our equity securities outstanding immediately prior to this offering, have agreed, subject to certain exceptions, not to offer, sell or transfer any shares of common stock or securities convertible into or exchangeable for our common stock for 180 days after the date of this prospectus without the prior written consent of the representative of the underwriters and certain other exceptions. The representative of the underwriters has advised us that they have no current intent or arrangement to release any of the shares subject to the lock-up agreements prior to the expiration of the lock-up period. See "Underwriting".

In addition to the restrictions contained in the lock-up agreements described above, we have entered into agreements with certain of our security holders, including our investors' rights agreement and agreements governing our equity awards, that contain market stand-off provisions imposing restrictions on the ability of such security holders to offer, sell or transfer our equity securities for a period of 180 days following the date of this prospectus.

**MATERIAL U.S. FEDERAL INCOME TAX CONSIDERATIONS FOR NON-U.S. HOLDERS**

The following discussion is a summary of the material U.S. federal income tax consequences to non-U.S. holders (as defined below) of the ownership and disposition of shares of our common stock issued pursuant to this offering but is not intended to be a complete analysis of all potential tax consequences. The effects of other U.S. federal tax laws, such as estate and gift tax laws, and any applicable state, local or non-U.S. tax laws are not discussed. This discussion is based on the U.S. Internal Revenue Code of 1986, as amended (the "Code"), final, temporary, and proposed Treasury Regulations, judicial decisions, and published rulings and administrative pronouncements of the U.S. Internal Revenue Service (the "IRS"), in each case as in effect as of the date of this prospectus. These authorities may change or be subject to differing interpretations, and any such change or differing interpretation may be applied retroactively in a manner that could adversely affect a non-U.S. holder of our common stock. We have not sought and will not seek any rulings from the IRS regarding the matters discussed below. There can be no assurance the IRS or a court will not take a position contrary to that discussed below regarding the tax consequences of the ownership and disposition of our common stock.

This discussion is limited to a non-U.S. holder that holds shares of our common stock as a "capital asset" within the meaning of Section 1221 of the Code (generally, property held for investment). This discussion does not address all U.S. federal income tax consequences relevant to a non-U.S. holder's particular circumstance, including the impact of the alternative minimum tax, the special tax accounting rules in Section 451(b) of the Code or the Medicare surtax on net investment income provided by Section 1411 of the Code. In addition, it does not address consequences relevant to Non-U.S. Holders subject to special rules, including, without limitation:

● U.S. expatriates and former citizens or long-term residents of the United States;

● persons holding shares of our common stock as part of a straddle, or other risk reduction strategy or as part of a conversion transaction or other integrated investment;

● banks, insurance companies, and other financial institutions;

● brokers, dealers, or certain electing traders in securities that use a mark-to-market method of tax accounting for their securities positions;

● "controlled foreign corporations", "passive foreign investment companies", as defined in Sections 957 and Section 1297 of the Code, respectively, and corporations that accumulate earnings to avoid U.S. federal income tax under Section 531 and 532 of the Code;

● partnerships or other entities or arrangements treated as partnerships for U.S. federal income tax purposes and other pass-through entities (and investors in such entities);

● tax-exempt organizations or governmental organizations;

● persons deemed to sell our common stock under the constructive sale provisions of the Code;

● tax-qualified retirement plans; and

● "qualified foreign pension funds" as defined in Section 897(l)(2) of the Code and entities all of the interests of which are held by qualified foreign pension funds.

If an entity treated as a partnership for U.S. federal income tax purposes holds shares of our common stock, the tax treatment of a partner in the partnership will depend on the status of the partner, the activities of the partnership, and certain determinations made at the partner level. Partnerships holding shares of our common stock and the partners in such partnerships should consult their tax advisors regarding the U.S. federal income tax consequences to them.

THIS DISCUSSION IS FOR INFORMATIONAL PURPOSES ONLY AND IS NOT TAX ADVICE. INVESTORS SHOULD CONSULT THEIR TAX ADVISORS WITH RESPECT TO THE APPLICATION OF THE U.S. FEDERAL INCOME TAX LAWS TO THEIR PARTICULAR SITUATIONS AS WELL AS ANY TAX CONSEQUENCES OF THE PURCHASE, OWNERSHIP, AND DISPOSITION OF SHARES OF OUR COMMON STOCK ARISING UNDER THE U.S. FEDERAL ESTATE OR GIFT TAX LAWS OR UNDER THE LAWS OF ANY STATE, LOCAL, OR NON-U.S. TAXING JURISDICTION OR UNDER ANY APPLICABLE INCOME TAX TREATY.

**Definition of a Non-U.S. Holder**

For purposes of this discussion, a "non-U.S. holder" is any beneficial owner of shares of our common stock that is an individual, corporation, estate or trust and is not a "U.S. person." A U.S. person is any person that, for U.S. federal income tax purposes, is or is treated as any of the following:

● an individual who is a citizen or resident of the United States;

● a corporation created or organized under the laws of the United States, any state thereof, or the District of Columbia;

● an estate, the income of which is subject to U.S. federal income tax regardless of its source; or

● a trust that (1) is subject to the primary supervision of a U.S. court and the control of one or more "United States persons" (within the meaning of Section 7701(a)(30) of the Code), or (2) has a valid election in effect to be treated as a United States person for U.S. federal income tax purposes.

**Distributions**

As described in the section entitled "Dividend Policy," we do not anticipate declaring or paying dividends to holders of shares of our common stock in the foreseeable future. However, if we do make distributions of cash or property on our common stock, such distributions will constitute dividends for U.S. federal income tax purposes to the extent paid from our current or accumulated earnings and profits, as determined under U.S. federal income tax principles. Amounts not treated as dividends for U.S. federal income tax purposes will constitute a non-taxable return of capital and first be applied against and reduce a Non-U.S. Holder's adjusted tax basis the shares of common stock, but not below zero, and any excess will be treated as capital gain and will be treated as described below under "— Sale or Other Taxable Disposition".

Subject to the discussion below on effectively connected income, dividends paid to a Non-U.S. Holder of shares of our common stock will be subject to U.S. federal income tax by way of withholding at a rate of 30% of the gross amount of the dividends (or such lower rate specified by an applicable income tax treaty, provided the Non-U.S. Holder furnishes a valid IRS Form W-8BEN or W-8BEN-E or other applicable documentation certifying qualification for the lower treaty rate of withholding). A Non-U.S. Holder that does not timely furnish the required documentation, but that qualifies for a reduced treaty rate, may obtain a refund of any excess amounts withheld by timely filing an appropriate claim for refund with the IRS. Non-U.S. Holders should consult their tax advisors regarding their entitlement to benefits under any applicable income tax treaty.

If dividends paid to a Non-U.S. Holder are effectively connected with the Non-U.S. Holder's conduct of a trade or business within the United States (and, if required by an applicable income tax treaty, the Non-U.S. Holder maintains a permanent establishment in the United States to which such dividends are attributable), the Non-U.S. Holder will be exempt from the withholding described above. To claim the exemption, the non-U.S. holder must furnish to the applicable withholding agent a valid IRS Form W-8ECI, certifying that the dividends are effectively connected with the Non-U.S. Holder's conduct of a trade or business within the United States.

Any such effectively connected dividends will be subject to U.S. federal income tax on a net income basis at the rates applicable to U.S. persons. A Non-U.S. Holder that is a corporation also may be subject to a branch profits tax at a rate of 30% (or such lower rate specified by an applicable income tax treaty) on such effectively connected dividends, as adjusted for certain items. Non-U.S. Holders should consult their tax advisors regarding any applicable tax treaties that may provide for different rules.

**Sales** **or Other Taxable Dispositions**

Subject to the discussion below under "— Information Reporting and Backup Withholding" and "— Additional Withholding Tax Under FATCA", a Non-U.S. Holder will not be subject to U.S. federal income tax on any gain realized upon the sale or other taxable disposition of our common stock unless:

● the gain is effectively connected with the Non-U.S. Holder's conduct of a trade or business within the United States (and, if required by an applicable income tax treaty, the non-U.S. holder maintains a permanent establishment in the United States to which such gain is attributable); or

● the non-U.S. holder is a nonresident alien individual present in the United States for 183 days or more during the taxable year of the disposition and certain other requirements are met.

Gain described in the first bullet point above generally will be subject to U.S. federal income tax on a net income basis at the rates applicable to U.S. persons. A non-U.S. Holder that is a corporation also may be subject to a branch profits tax at a rate of 30% (or such lower rate specified by an applicable income tax treaty) on such effectively connected gain, as adjusted for certain items.

Gain described in the second bullet point above will be subject to U.S. federal income tax at a rate of 30% (or such lower rate specified by an applicable income tax treaty), which may be offset by U.S. source capital losses of the non-U.S. Holder (even though the individual is not considered a resident of the United States), provided the Non-U.S. Holder has timely filed U.S. federal income tax returns with respect to such losses.

Non-U.S. Holders should consult their tax advisors regarding potentially applicable income tax treaties that may provide for different rules.

**Information Reporting and Backup Withholding**

Information returns are required to be filed with the IRS in connection with any dividends on our common stock paid to a non-U.S. holder regardless of whether withholding is required. Copies of the information returns reporting such interest, dividends, and withholding may also be made available to the tax authorities in the country in which a non-U.S. holder resides under the provisions of an applicable income tax treaty. Payments of dividends on our common stock will not be subject to backup withholding, provided the applicable withholding agent does not have actual knowledge or reason to know the beneficial owner is a United States person and the Non-U.S. Holder either certifies its non-U.S. status, such as by furnishing a valid IRS Form W-8BEN, W-8BEN-E or W-8ECI, or other applicable documentation, or otherwise establishes an exemption. Proceeds of the sale or other taxable disposition of our common stock within the United States or conducted through certain U.S.-related brokers generally will not be subject to backup withholding or information reporting, if the applicable withholding agent receives the certification described above and does not have actual knowledge or reason to know that such beneficial owner is a United States person, or otherwise establishes an exemption. Proceeds of a disposition of our common stock conducted through a non-U.S. office of a non-U.S. broker generally will not be subject to backup withholding or information reporting.

Backup withholding is not an additional tax. Any amounts withheld under the backup withholding rules may be allowed as a refund or a credit against a non-U.S. Holder's U.S. federal income tax liability, provided the required information is timely furnished to the IRS.

**Additional Withholding Tax Under FATCA**

Sections 1471 to 1474 of the Code (such sections commonly referred to as the Foreign Account Tax Compliance Act, or "FATCA") and the Treasury Regulations and administrative guidance thereunder impose a 30% withholding tax on certain types of payments made to a "foreign financial institution" or a "non-financial foreign entity" (each as defined in the Code), including, in some cases, when such foreign financial institution or non-financial foreign entity acts as an intermediary, unless (1) the foreign financial institution has entered into an agreement with the U.S. government to withhold on certain payments and to undertake certain diligence and reporting obligations regarding U.S. account holders (including certain account holders that are non-U.S. entities with U.S. owners), (2) the non-financial foreign entity either certifies it does not have any "substantial United States owners" (as defined in the Code) or furnishes identifying information regarding each substantial United States owner, or (3) the foreign financial institution or non-financial foreign entity otherwise qualifies for an exemption from these rules. Foreign financial institutions located in jurisdictions that have an intergovernmental agreement with the United States governing

Under the applicable Treasury Regulations and administrative guidance, withholding under FATCA generally applies to payments of dividends on our common stock. Under proposed regulations, FATCA withholding on payments of gross proceeds from the sale or other disposition of stock has been eliminated. These proposed regulations are subject to change.

Prospective investors should consult their tax advisors regarding the potential application of withholding under FATCA to their investment in our common stock.

**UNDERWRITING**

We have entered into an underwriting agreement with Revere Securities, LLC, as representative of the several underwriters named therein (the "Representative"), with respect to the shares of our common stock sold in this offering. Subject to the terms and conditions of the underwriting agreement, we have agreed to sell to the underwriters, and each underwriter named below has severally agreed to purchase from us, the number of shares of our common stock set forth opposite its name in the following table, at the initial public offering price less the underwriting discounts and commissions set forth on the cover page of this prospectus.

---

| | |
|:---|:---|
| **Name** | **Number of Shares** |
| Revere Securities, LLC | [●] |
| **Total** | 3555556 |

---

The underwriters are offering the shares subject to their acceptance of shares from us and subject to prior sale. The underwriting agreement provides that the obligations of the underwriters to pay for and accept delivery of the shares offered by this prospectus are subject to the approval of certain legal matters by their counsel and to certain other conditions contained in the underwriting agreement, such as the receipt by the underwriters of officers' certificates and legal opinions. The underwriters are obligated to take and pay for all of the shares offered by this prospectus if any such shares are taken. However, the underwriters are not required to take or pay for shares covered by the underwriters' over-allotment option described below. The underwriters reserve the right to withdraw, cancel or modify offers to the public and to reject orders in whole or in part.

We have agreed to indemnify the underwriters against certain liabilities, including liabilities under the Securities Act and liabilities arising from breaches of representations and warranties contained in the underwriting agreement, or to contribute to payments that the underwriters may be required to make in respect of those liabilities.

**Over-Allotment Option**

We have granted the underwriters an over-allotment option, exercisable for up to 45 days from the date of this prospectus, to purchase up to 533,333 additional shares of our common stock at the initial public offering price set forth on the cover page of this prospectus, less underwriting discounts and commission, solely to cover any over-allotments, if any. The option may be exercised in whole or in part, and may be exercised more than once, during the 45-day option period. To the extent that the option is exercised, each underwriter will become obligated, subject to certain conditions, to purchase the same percentage of the additional shares as the number listed next to the underwriter's name in the preceding table bears to the total number of shares listed next to the names of all underwriters in the preceding table. If this option is exercised in full, the total price to the public will be $18,400,001, total underwriting discounts and commissions will be $1,472,000 (assuming all investors and the total net proceeds, before expenses, to us will be $16,928,001.

**Underwriting Discounts, Commissions and Expenses**

We estimate that the total expenses of the offering payable by us, excluding underwriting discounts and commissions, will be approximately $[●]. Under the underwriting agreement, we will pay fees and commissions to the underwriters equal to (i) 8% per share. For the purpose of the table below, we assume all investors in this offering are introduced by the underwriters.

The underwriters propose initially to offer the shares to the public at the public offering price set forth on the cover page of this prospectus and to dealers at those prices less a concession not in excess of $[●] per share. If all of the shares offered by us are not sold at the public offering price, the underwriters may change the offering price and other selling terms by means of a supplement to this prospectus.

The following table shows the per share price and total underwriting discounts and commissions to be paid to the underwriters. These amounts are shown assuming both no exercise and full exercise of the underwriters' over-allotment.

---

| | | | |
|:---|:---|:---|:---|
|  | **Per Share** | **Total Without<br> Over-Allotment <br> Option** | **Total With Full<br> Over-Allotment <br> Option** |
| Initial public offering price (1) | $4.50 | $16000002 | $18400001 |
| Underwriting discounts and commissions (2) | $0.36 | $1280000 | $1472000 |
| Proceeds, before expenses, to us | $4.14 | $14720002 | $16928001 |

---

&nbsp;&nbsp;&nbsp;&nbsp;(1) Assuming
 an initial public offering price of $4.50, the midpoint of the estimated initial public offering price range set forth on the cover
 page of this prospectus.

(2) Represents
 an underwriting discount of 8% of the gross proceeds of the offering, assuming all investors in this offering are introduced
 by the underwriters.

We have agreed to pay the Representative up to $175,000 for out-of-pocket accountable expenses, including but not limited to, fees and expenses of legal counsel, settlement and clearing, and other out-of-pocket expenses, market data, roadshow expenses and cost of background checks; and, if applicable, the costs associated with the use of a third-party electronic road show service (such as net roadshow).

We have also agreed to pay, at the closing of the offering, a non-accountable expense allowance to the Representative equal to 1% of the gross proceeds received by us from the offering.

**Discretionary Accounts**

The underwriters do not intend to confirm sales of the securities offered hereby to any accounts over which they have discretionary authority.

**Representative's Warrants**

We have agreed to issue to the Representative or its designees at the closing of this offering warrants to purchase the number of common stock equal to 5% of the aggregate number of shares sold in this offering. The warrants will be exercisable at any time and from time to time, in whole or in part, during the three (3) year period commencing nine (9) months from the commencement of sales in this offering. The warrants will be exercisable at a per share price equal to 125% of the initial public offering price per share in the offering. In accordance with FINRA Rule 5110(e)(1), and except as otherwise permitted by FINRA rules, neither the Representative's Warrants nor any of our common stock issued upon exercise of the Representative's Warrants may be sold, transferred, assigned, pledged or hypothecated, or be the subject of any hedging, short sale, derivative, put or call transaction that would result in the effective economic disposition of such securities for a period of nine (9) months immediately following the commencement of sales of this offering. In addition, although the Representative's Warrants and the underlying common stock will be registered by the registration statement of which this prospectus forms a part, we have also agreed that the Representative's Warrants will provide for unlimited piggyback registration and demand registration right at our expense and an additional demand registration right at the holder's expense in compliance with FINRA Rule 5110(g)(8). We will bear all fees and expenses attendant to registering the common stock issuable upon exercise of the Representative's Warrants. The exercise price and number of common stock issuable upon exercise of the Representative's Warrants may be adjusted in certain circumstances, in accordance with FINRA Rule 5110(g)(8).

**Advisory Fee**

We have agreed to pay the Representative an advisory fee in connection with the offering in the amount of Twenty-Five Thousand dollars ($25,000), accrual upon public filing of this registration statement and payable within 30 business days.

**Right of First Refusal**

Until the date that is twelve (12) months after the closing date of this offering, if we or any of our subsidiaries decide (a) to finance or refinance any indebtedness using a manager or agent, the Representative (or any affiliate designated by the Representative) shall have the right to act as sole book-runner, sole manager, sole placement agent or sole agent with respect to such financing or refinancing; or (b) decides to raise funds by means of a public offering (including through an at-the-market facility) or a private placement or any other capital-raising financing of equity, equity-linked or debt securities using an underwriter or placement agent, the Representative (or any affiliate designated by the Representative) shall have the right to act as sole book-running manager, sole underwriter or sole placement agent for such financing. If the Representative or one of its affiliates decides to accept any such engagement, the agreement governing such engagement will contain, among other things, provisions for customary fees for transactions of similar size and nature, including indemnification, which are appropriate to such a transaction. Notwithstanding the foregoing, we may terminate the engagement for "cause," which shall include the material failure by the Representative to provide the underwriting services contemplated by the Engagement Letter, dated October 28, 2025, between us and the Representative (the "Engagement Letter"), as provided in FINRA Rule 5110(g)(5)(B), in which case no fee shall be payable to the Representative.

**Tail Fee**

The Representative shall be entitled to a cash fee equal to eight percent (8.0%) of the aggregate gross proceeds received by us from the sale of any securities with respect to any public or private offering or other financing or capital raising transaction of any kind ("Tail Financing") to the extent that such financing or capital is provided to us by investors whom the Representative had contacted during the term of the engagement or introduced to us during the term of engagement, if such Tail Financing is consummated at any time within the 12-month period following the expiration or termination of the Engagement Letter. Upon our request, the Representative shall provide us with a written list of those investors whom the Representative had contacted during the term of the engagement or introduced to us during the term of the engagement. If the Company exercises its right to terminate the Engagement Letter for cause pursuant to FINRA Rule 5110(g)(5)(B), no fee shall be payable to the Representative.

**Lock-Up Agreements**

Pursuant to "lock-up" agreements, our executive officers and directors, and certain of our stockholders, have agreed, without the prior written consent of the Representative not to directly or indirectly, offer to sell, sell, pledge or otherwise transfer or dispose of any of shares of (or enter into any transaction or device that is designed to, or could be expected to, result in the transfer or disposition by any person at any time in the future of) our common stock, enter into any swap or other derivatives transaction that transfers to another, in whole or in part, any of the economic benefits or risks of ownership of shares of our common stock, make any demand for or exercise any right or cause to be filed a registration statement, including any amendments thereto, with respect to the registration of any shares of common stock or securities convertible into or exercisable or exchangeable for common stock or any other securities of the Company or publicly disclose the intention to do any of the foregoing, subject to customary exceptions, for a period of 180 days from the date of this prospectus, in the case of our directors and officers, 180 days from the date of this prospectus, in the case of certain of our principal stockholders.

**No Sales of Similar Securities**

We have agreed with the underwriters that we will not, without the prior written consent of the Representative, for a period of 180 days after the date of this prospectus: (i) offer, pledge, sell, contract to sell, sell any option or contract to purchase, purchase any option or contract to sell, grant any option, right or warrant to purchase, lend, or otherwise transfer or dispose of, directly or indirectly, any classes of our stocks or any securities convertible into or exercisable or exchangeable for classes of our stocks, (ii) file or caused to be filed any registration statement with the SEC, relating to the offering of any classes of our stocks or any securities convertible into or exercisable or exchangeable for any classes of our stocks, (iii) complete any offering of debt securities, other than entering into a line of credit with a traditional bank, or (iv) enter into any swap or other arrangement that transfers to another, in whole or in part, any of the economic consequences of ownership of any classes of our stocks, whether any such transaction described in clause (i), (ii), (iii) or (iv) above is to be settled by delivery of any classes of our stocks or such other securities, in cash or otherwise.

**Electronic Offer, Sale and Distribution of Shares**

A prospectus in electronic format may be made available on the websites maintained by one or more underwriters or selling group members, if any, participating in the offering. The underwriters may agree to allocate a number of shares of securities to underwriters and selling group members for sale to their online brokerage account holders. Internet distributions will be allocated by the Representative to underwriters and selling group members that may make internet distributions on the same basis as other allocations. Other than the prospectus in electronic format, the information on the underwriters' websites and any information contained in any other website maintained by the underwriters is not part of this prospectus or the registration statement of which this prospectus forms a part.

**Listing**

We intend to apply to have shares of our common stock listed on the NYSE American under the symbol "____". No assurance can be given that such application will be approved. If the application is not approved, we will not proceed with this offering.

**Determination of the Initial Public Offering Price**

The public offering price will be determined by discussions between us and the Representative. In addition to prevailing market conditions, the factors to be considered in these discussions will include:

● an assessment of our management and the underwriters as to the price at which investors might be willing to participate in this offering;

● the history of, and prospects for, our company and the industry in which we compete;

● our past and present financial information;

● our past and present operations, and the prospects for, and timing of, our future revenues;

● the present state of our development; and

● the above factors in relation to market values and various valuation measures of other companies engaged in activities similar to ours.

An active trading market for the shares may not develop. It is also possible that after the offering, the shares will not trade in the public market at or above the public offering price.

**Stabilization**

● Stabilizing transactions permit bids to purchase securities so long as the stabilizing bids do not exceed a specified maximum, and are engaged in for the purpose of preventing or retarding a decline in the market price of the securities while the offering is in progress.

● Over-allotment transactions involve sales by the underwriters of securities in excess of the number of securities that underwriters are obligated to purchase. This creates a syndicate short position, which may be either a covered short position or a naked short position. In a covered short position, the number of securities over-allotted by the underwriters is not greater than the number of securities that they may purchase in the over-allotment option. In a naked short position, the number of securities involved is greater than the number of securities in the over-allotment option. The underwriters may close out any short position by exercising their over-allotment option and/or purchasing securities in the open market.

● Syndicate covering transactions involve purchases of securities in the open market after the distribution has been completed in order to cover syndicate short positions. In determining the source of securities to close out the short position, the underwriters will consider, among other things, the price of securities available for purchase in the open market as compared with the price at which they may purchase securities through exercise of the over-allotment option. If the underwriters sell more securities than could be covered by exercise of the over-allotment option and, therefore, have a naked short position, the position can be closed out only by buying securities in the open market. A naked short position is more likely to be created if the underwriters are concerned that, after pricing, there could be downward pressure on the price of the securities in the open market that could adversely affect investors who purchase in the offering.

● Penalty bids permit the underwriters to reclaim a selling concession from a syndicate member when the securities originally sold by that syndicate member are purchased in stabilizing or syndicate covering transactions to cover syndicate short positions.

These stabilizing transactions, syndicate covering transactions, and penalty bids may have the effect of raising or maintaining the market price of our securities or preventing or retarding a decline in the market price of our securities. As a result, the price of our securities in the open market may be higher than it would otherwise be in the absence of these transactions. Neither we nor the underwriters make any representation or prediction as to the effect that the transactions described above may have on the price of our securities. These transactions may be effected on the NYSE American, in the over-the-counter market, or otherwise, and, if commenced, may be discontinued at any time.

**Passive Market Making**

In connection with this offering, the underwriters and selling group members may also engage in passive market making transactions in shares of our common stock on the NYSE American in accordance with Regulation M under the Exchange Act, during a period before the commencement of offers or sales of the shares and extending through the completion of the distribution. A passive market maker must display its bid at a price not in excess of the highest independent bid of that security. However, if all independent bids are lowered below the passive market maker's bid, then that bid must be lowered when specified purchase limits are exceeded.

**Other Relationships**

The underwriters and certain of their affiliates are full service financial institutions engaged in various activities, which may include securities trading, commercial and investment banking, financial advisory, investment management, investment research, principal investment, hedging, financing, and brokerage activities. Some of the underwriters and certain of their affiliates may, in the future, engage in investment banking and other commercial dealings in the ordinary course of business with us and our affiliates, for which they may in the future receive customary fees, commissions, and expenses. In addition, in the ordinary course of their business activities, the underwriters and their affiliates may make or hold a broad array of investments and actively trade debt and equity securities (or related derivative securities) and financial instruments (including bank loans) for their own account and for the accounts of their customers. Such investments and securities activities may involve securities and/or instruments of ours or our affiliates. The underwriters and their affiliates may also make investment recommendations and/or publish or express independent research views in respect of such securities or financial instruments and may hold, or recommend to clients that they acquire, long and/or short positions in such securities and instruments.

**SELLING RESTRICTIONS**

*Other than in the United States, no action has been taken by us or the underwriters that would permit a public offering of the securities offered by this prospectus in any jurisdiction where action for that purpose is required. The securities offered by this prospectus may not be offered or sold, directly or indirectly, nor may this prospectus or any other offering material or advertisements in connection with the offer and sale of any such securities be distributed or published in any jurisdiction, except under circumstances that will result in compliance with the applicable rules and regulations of that jurisdiction. Persons into whose possession this prospectus comes are advised to inform themselves about and to observe any restrictions relating to the offering and the distribution of this prospectus. This prospectus does not constitute an offer to sell or a solicitation of an offer to buy any securities offered by this prospectus in any jurisdiction in which such an offer or a solicitation is unlawful.*

**Canada**

The securities may be sold in Canada only to purchasers purchasing, or deemed to be purchasing, as principal that are accredited investors, as defined in National Instrument 45-106 Prospectus Exemptions or subsection 73.3(1) of the Securities Act (Ontario), and are permitted clients, as defined in National Instrument 31-103 Registration Requirements, Exemptions and Ongoing Registrant Obligations. Any resale of the securities must be made in accordance with an exemption from, or in a transaction not subject to, the prospectus requirements of applicable securities laws.

Securities legislation in certain provinces or territories of Canada may provide a purchaser with remedies for rescission or damages if this prospectus (including any amendment thereto) contains a misrepresentation, provided that the remedies for rescission or damages are exercised by the purchaser within the time limit prescribed by the securities legislation of the purchaser's province or territory. The purchaser should refer to any applicable provisions of the securities legislation of the purchaser's province or territory for particulars of these rights or consult with a legal advisor.

Pursuant to section 3A.3 of National Instrument 33-105 Underwriting Conflicts (NI 33-105), the underwriters are not required to comply with the disclosure requirements of NI 33-105 regarding underwriter conflicts of interest in connection with this offering.

**European Economic Area**

In relation to each Member State of the European Economic Area which has implemented the Prospectus Directive (each, a "Relevant Member State") an offer to the public of any securities may not be made in that Relevant Member State, except that an offer to the public in that Relevant Member State of any securities may be made at any time under the following exemptions under the Prospectus Directive, if they have been implemented in that Relevant Member State:

● to any legal entity which is a qualified investor as defined in the Prospectus Directive;

● to fewer than 100 or, if the Relevant Member State has implemented the relevant provision of the 2010 PD Amending Directive, 150, natural or legal persons (other than qualified investors as defined in the Prospectus Directive), as permitted under the Prospectus Directive, subject to obtaining the prior consent of the representatives for any such offer; or

● in any other circumstances falling within Article 3(2) of the Prospectus Directive, provided that no such offer of securities shall result in a requirement for the publication by us or any underwriters of a prospectus pursuant to Article 3 of the Prospectus Directive.

For the purposes of this provision, the expression an "offer to the public" in relation to any securities in any Relevant Member State means the communication in any form and by any means of sufficient information on the terms of the offer and any securities to be offered so as to enable an investor to decide to purchase any securities, as the same may be varied in that Member State by any measure implementing the Prospectus Directive in that Member State, the expression "Prospectus Directive" means Directive 2003/71/EC (and amendments thereto, including the 2010 PD Amending Directive, to the extent implemented in the Relevant Member State), and includes any relevant implementing measure in the Relevant Member State, and the expression "2010 PD Amending Directive" means Directive 2010/73/EU.

**United Kingdom**

Neither the information in this document nor any other document relating to the offer has been delivered for approval to the Financial Services Authority in the United Kingdom and no prospectus (within the meaning of section 85 of the Financial Services and Markets Act 2000, as amended ("FSMA")) has been published or is intended to be published in respect of the securities. This document is issued on a confidential basis to "qualified investors" (within the meaning of section 86(7) of FSMA) in the United Kingdom, and the securities may not be offered or sold in the United Kingdom by means of this document, any accompanying letter or any other document, except in circumstances which do not require the publication of a prospectus pursuant to section 86(1) FSMA. This document should not be distributed, published or reproduced, in whole or in part, nor may its contents be disclosed by recipients to any other person in the United Kingdom.

Any invitation or inducement to engage in investment activity (within the meaning of section 21 of FSMA) received in connection with the issue or sale of the securities has only been communicated or caused to be communicated and will only be communicated or caused to be communicated in the United Kingdom in circumstances in which section 21(1) of FSMA does not apply to the Company.

In the United Kingdom, this document is being distributed only to, and is directed at, persons (i) who have professional experience in matters relating to investments falling within Article 19(5) (investment professionals) of the Financial Services and Markets Act 2000 (Financial Promotions) Order 2005 ("FPO"), (ii) who fall within the categories of persons referred to in Article 49(2)(a) to (d) (high net worth companies, unincorporated associations, etc.) of the FPO, or (iii) to whom it may otherwise be lawfully communicated (together "relevant persons"). The investments to which this document relates are available only to, and any invitation, offer, or agreement to purchase will be engaged in only with, relevant persons. Any person who is not a relevant person should not act or rely on this document or any of its contents.

**Switzerland**

The securities may not be publicly offered in Switzerland and will not be listed on the SIX Swiss Exchange ("SIX") or on any other stock exchange or regulated trading facility in Switzerland. This document has been prepared without regard to the disclosure standards for issuance prospectuses under art. 652a or art. 1156 of the Swiss Code of Obligations or the disclosure standards for listing prospectuses under art. 27 ff. of the SIX Listing Rules or the listing rules of any other stock exchange or regulated trading facility in Switzerland. Neither this document nor any other offering material relating to the securities may be publicly distributed or otherwise made publicly available in Switzerland.

Neither this document nor any other offering material relating to the securities have been or will be filed with or approved by any Swiss regulatory authority. In particular, this document will not be filed with, and the offer of securities will not be supervised by, the Swiss Financial Market Supervisory Authority (FINMA).

This document is personal to the recipient only and not for general circulation in Switzerland.

**Australia**

This prospectus is not a disclosure document under Chapter 6D of the Australian Corporations Act, has not been lodged with the Australian Securities and Investments Commission and does not purport to include the information required of a disclosure document under Chapter 6D of the Australian Corporations Act. Accordingly, (i) the offer of the securities under this prospectus is only made to persons to whom it is lawful to offer the securities without disclosure under Chapter 6D of the Australian Corporations Act under one or more exemptions set out in section 708 of the Australian Corporations Act, (ii) this prospectus is made available in Australia only to those persons as set forth in clause (i) above, and (iii) the offeree must be sent a notice stating in substance that by accepting this offer, the offeree represents that the offeree is such a person as set forth in clause (i) above, and, unless permitted under the Australian Corporations Act, agrees not to sell or offer for sale within Australia any of the securities sold to the offeree within 12 months after its transfer to the offeree under this prospectus.

**LEGAL MATTERS**

The validity of the shares of common stock offered hereby and certain other legal matters will be passed upon for us by Lucosky Brookman LLP. Loeb & Loeb LLP is acting as counsel to the underwriters.

**EXPERTS**

The consolidated financial statements of Ambitious Entertainment, Inc. as of and for the years ended December 31, 2025 and 2024 included in this prospectus have been audited by Bush & Associates CPA LLC, independent registered public accounting firm, as set forth in their report, which contains an explanatory paragraph as to the Company's ability to continue as a going concern, appearing elsewhere herein, and are included in reliance upon such report, given on the authority of such firm as experts in accounting and auditing.

**WHERE YOU CAN FIND MORE INFORMATION**

We have filed a registration statement, of which this prospectus is a part, on Form S-1 with the SEC relating to this offering. This prospectus does not contain all of the information in the registration statement and its exhibits filed with the registration statement. For further information pertaining to us and the shares of our common stock offered by this prospectus, you should refer to the registration statement and its exhibits. References to, and statements contained in this prospectus as to, any of our contracts, agreements or other documents are not necessarily complete, and you should refer to the exhibits filed as part of the registration statement for copies of the actual contracts, agreements or other documents.

You can read our SEC filings, including the registration statement, at the SEC's website at www.sec.gov.

We are subject to the information reporting requirements of the Exchange Act, and we will file periodic reports, proxy statements and other information with the SEC. These periodic reports, proxy statements and other information will be available for inspection and copying at the public reference room and website of the SEC referred to above. We also maintain a website at www.ambitious.tv, at which you may access these materials free of charge as soon as reasonably practicable after they are electronically filed with the SEC. The information contained in, or that can be accessed through, our website is not, and should not be, considered part of this prospectus.

**INDEX TO CONSOLIDATED FINANCIAL STATEMENTS**

**December 31, 2025 and 2024**

---

| | |
|:---|:---|
|  | **Page** |
| [Report of Independent Registered Public Accounting Firm](#f_001) | F-2 |
| [Consolidated Balance Sheets](#f_002) | F-4 |
| [Consolidated Statements of Operations](#f_003) | F-5 |
| [Consolidated Statements of Changes in Stockholders' Deficit](#f_004) | F-6 |
| [Consolidated Statements of Cash Flows](#f_005) | F-7 |
| [Notes to Consolidated Financial Statements](#f_006) | F-8 |

---

**Report of Independent Registered Public Accounting Firm**

Board of Directors and Shareholders

Ambitious Entertainment, Inc.

***Opinion on the Financial Statements***

We have audited the accompanying consolidated balance sheets of Ambitious Entertainment, Inc. as of December 31, 2025, and 2024, and the related consolidated statements of operations, changes in stockholders' deficit, and cash flows for the periods then ended, and the related notes (collectively referred to as the "financial statements"). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of Ambitious Entertainment, Inc. as of December 31, 2025, and 2024, and the results of its operations and its cash flows for the periods then ended, in conformity with the accounting principles generally accepted in the United States of America.

***Basis for Opinion***

 

These financial statements are the responsibility of the entity's management. Our responsibility is to express an opinion on these financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) ("PCAOB") and are required to be independent with respect to Ambitious Entertainment, Inc. in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. Ambitious Entertainment, Inc. is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control over financial reporting. Accordingly, we express no such opinion.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

***Substantial Doubt About the Company's Ability to Continue as a Going Concern***

The accompanying consolidated financial statements have been prepared assuming that the Company will continue as a going concern. As described in Note 1 to the consolidated financial statements, the Company has incurred recurring losses from operations and has a net capital deficiency as of December 31, 2025, that raise substantial doubt about its ability to continue as a going concern within one year after the date that the financial statements are issued. Management's plans concerning these matters are also described in Note 1. The financial statements do not include any adjustments that might result from the outcome of this uncertainty. Our opinion is not modified with respect to this matter.

 

***Critical Audit Matters***

The critical audit matters communicated below are matters arising from the current period audit of the financial statements that were communicated or required to be communicated to the audit committee and that: (1) relate to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the financial statements, taken as a whole, and we are not, by communicating the critical audit matters below, providing separate opinions on the critical audit matters or on the accounts or disclosures to which they relate.

**Valuation of Convertible Debt and Derivative Liabilities**

**Description of the Matter:**

As discussed in Notes 8 and 9 to the financial statements, the Company has issued convertible debt with embedded conversion features that are required to be bifurcated from the host debt and accounted for separately as derivative liabilities at fair value, in accordance with the applicable accounting guidance on embedded derivatives and convertible instruments. The fair value of the bifurcated embedded conversion options is estimated using Black-Scholes model that incorporate significant unobservable inputs, including the expected volatility of the Company's common stock, risk-free interest rates, expected terms, and assumptions about the likelihood and timing of conversion and other relevant contractual features (such as price-reset and anti-dilution provisions). Changes in the fair value of these bifurcated conversion options are recognized in the statement of operations.

We identified the valuation of bifurcated embedded conversion options and the related derivative liabilities as a critical audit matter because of the significant judgment required by management to (1) evaluate the terms of the convertible instruments and determine whether the conversion features must be bifurcated and accounted for separately as derivative liabilities, and (2) estimate the fair value of those bifurcated features. Auditing these matters required a high degree of auditor judgment due to the complexity of the instruments' terms, the use of complex valuation models, the sensitivity of the fair value measurements to changes in key inputs, and the potential effect of the resulting fair value changes on the Company's results of operations.

**How the Critical Audit Matter Was Addressed in the Audit**

Our audit procedures related to the valuation of the bifurcated embedded conversion options and related derivative liabilities included, among others:

● Evaluating the design and testing the operating effectiveness of certain internal controls over management's process for identifying, classifying, and measuring embedded conversion features at fair value.

● We obtained and read the relevant debt agreements to understand and evaluate the specific contractual terms, including conversion ratios, reset provisions, redemption features, and other contingent terms, and assessed whether management's identification of embedded features and its conclusions regarding bifurcation and classification as derivative liabilities were consistent with the applicable accounting guidance.

● We evaluated the valuation methodologies used by management and tested the reasonableness of significant assumptions, such as expected volatility, risk-free interest rates, expected terms, and assumptions about conversion behavior, by comparing them to observable market data, historical trading data, and publicly available information, as applicable.

● We also tested the completeness and accuracy of the data used in the valuation models and performed independent sensitivity analyses to assess the impact of changes in key assumptions on the fair value estimates.

● We evaluated the adequacy of the Company's related disclosures in the financial statements, including the description of the key terms of the instruments and the significant valuation assumptions used.

**Auditor's Evaluation:**

Based on the analysis above, we conclude that the Company's valuation of convertible debt and derivative liabilities meet the criteria for classification as a Critical Audit Matters. This determination is supported by the material nature of the accounts, the significant management and auditor judgment involved, and the complexity of the audit procedures required to obtain sufficient appropriate audit evidence.

/s/Bush & Associates CPA LLC

We have served as the Company's auditor since 2025

Las Vegas, Nevada

May 15, 2026

PCAOB ID Number 6797

**AMBITIOUS ENTERTAINMENT, INC.**

**CONSOLIDATED BALANCE SHEETS**

---

| | | |
|:---|:---|:---|
|  | **December 31,**<br>**2025** | **December 31,**<br>**2024** |
| **ASSETS** |  |  |
| Current Assets |  |  |
| &nbsp;&nbsp;&nbsp;Cash | $1070 | $3621 |
| &nbsp;&nbsp;&nbsp;Cash reserve |  | 8735 |
| &nbsp;&nbsp;&nbsp;Accounts receivable |  | 290597 |
| &nbsp;&nbsp;&nbsp;Other receivable |  | 31396 |
| &nbsp;&nbsp;&nbsp;Prepaid expenses and other current assets |  | 116742 |
| &nbsp;&nbsp;&nbsp;Investments | 11794 | 128650 |
| &nbsp;&nbsp;&nbsp;Deferred offering cost | 250000 | 250000 |
| Total Current Assets | 262864 | 829741 |
| &nbsp;&nbsp;&nbsp;**TOTAL ASSETS** | $**262864** | $**829741** |
| **LIABILITIES AND STOCKHOLDERS' EQUITY** |  |  |
| &nbsp;&nbsp;&nbsp;Current Liabilities |  |  |
| &nbsp;&nbsp;&nbsp;Accounts payable | $466992 | $955696 |
| &nbsp;&nbsp;&nbsp;Accrued expenses | 1816587 | 656418 |
| &nbsp;&nbsp;&nbsp;Due to related parties | 1538004 | 633332 |
| &nbsp;&nbsp;&nbsp;Production financing |  | 775761 |
| &nbsp;&nbsp;&nbsp;Short-term production loans | 25000 |  |
| &nbsp;&nbsp;&nbsp;Convertible notes payable, net | 2092762 | 1915781 |
| &nbsp;&nbsp;&nbsp;Derivative liability | 8714459 | 8474173 |
| Total Current Liabilities | 14653804 | 13411161 |
| &nbsp;&nbsp;&nbsp;TOTAL LIABILITIES | 14653804 | 13411161 |
| &nbsp;&nbsp;&nbsp;Commitments and contingencies |  |  |
| Stockholders' Equity |  |  |
| Preferred stock, $0.0001 par value; 1,000,000 shares authorized; 237,341 shares issued and outstanding as of December 31, 2025, and December 31, 2024 | 24 | 24 |
| Common stock, $0.0001 par value; 150,000,000 shares authorized; 11,492,500 and 7,440,000 shares issued and outstanding, as of December 31, 2025, and December 31, 2024, respectively | 1149 | 744 |
| Additional paid in capital | 227068 | 224572 |
| Accumulated deficit | (14619181) | (12858112) |
| Accumulated other comprehensive income | - | 51352 |
| **TOTAL STOCKHOLDERS' DEFICIT** | (14390940) | (12581420) |
| &nbsp;&nbsp;&nbsp;**TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT** | $**262864** | $**829741** |

---

***The accompanying notes are an integral part of these audited consolidated financial statements***

**AMBITIOUS ENTERTAINMENT, INC.**

**CONSOLIDATED STATEMENTS OF OPERATIONS**

---

| | | |
|:---|:---|:---|
|  | **Years Ended December 31,** | **Years Ended December 31,** |
|  | **2025** | **2024** |
| Revenue | $1225000 | $9289445 |
| Cost of revenues | 1225000 | 10330076 |
| Gross loss | - | (1040631) |
| Operating expenses |  |  |
| &nbsp;&nbsp;&nbsp;Shared-based compensation | 475000 |  |
| &nbsp;&nbsp;&nbsp;Professional fees | 879645 | 137940 |
| &nbsp;&nbsp;&nbsp;Consulting | 623289 | 128000 |
| &nbsp;&nbsp;&nbsp;Marketing and Advertising |  | 7747 |
| &nbsp;&nbsp;&nbsp;Other general and administrative | 181715 | 465093 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total operating expenses | 2159649 | 738780 |
| Loss from operations | (2159649) | (1779411) |
| Other Income (Expenses): |  |  |
| &nbsp;&nbsp;&nbsp;Other income |  | 23099 |
| &nbsp;&nbsp;&nbsp;Interest expense | (504650) | (953163) |
| &nbsp;&nbsp;&nbsp;Loss on issuance of debt | (362912) | (226820) |
| &nbsp;&nbsp;&nbsp;Loss on impairment of investment | (128650) | (85837) |
| &nbsp;&nbsp;&nbsp;Change in fair value of derivative liability | 342626 | (201422) |
| &nbsp;&nbsp;&nbsp;Gain on transfer of corporate and member interest | 1008070 | 1933261 |
| &nbsp;&nbsp;&nbsp;Exchange loss | (7333) | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total other income | 347151 | 489118 |
| **Net Loss** | $**(1812498)** | $**(1290293)** |
| &nbsp;&nbsp;&nbsp;Foreign exchange translation | 51429 | (10302) |
| **Net Loss and comprehensive loss** | $**(1761069)** | $**(1300595)** |
| **Loss per share of common stock - basic and diluted** | $**(0.20)** | $**(0.18)** |
| **Weighted average number of shares of common stock outstanding - basic and diluted** | **8847381** | **7162027** |

---

***The accompanying notes are an integral part of these audited consolidated financial statements***

**AMBITIOUS ENTERTAINMENT, INC.**

**CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' DEFICIT**

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Preferred Stock** | **Preferred Stock** | **Common Stock** | **Common Stock** | | | | |
|  | **Shares** | **Amount** | **Shares** | **Amount** | **Additional**<br>**Paid in**<br>**Capital** |<br>**Accumulated**<br>**Deficit** | **Accumulated<br> Other**<br>**Comprehensive**<br>**Loss** |<br>**Total** |
| **Balance - December 31, 2023** | 237340 | $&nbsp;&nbsp;&nbsp;&nbsp;24 | 6800000 | $680 | $229522 | $(11513455) | $78 | $(11283151) |
| &nbsp;&nbsp;&nbsp;Common stock issued for services |  |  | 640000 | 64 | (4950) |  |  | (4886) |
| &nbsp;&nbsp;&nbsp;Other comprehensive income |  |  |  |  |  | (44062) | 51274 | 7212 |
| &nbsp;&nbsp;&nbsp;Net loss | - | - | - | - | - | (1300595) | - | (1300595) |
| **Balance - December 31, 2024** | 237340 | $24 | 7440000 | $744 | $224572 | $(12858112) | $51352 | $(12581420) |
| &nbsp;&nbsp;&nbsp;Common stock issued for cash |  |  | 25000 | 3 | 2497 |  |  | 2500 |
| &nbsp;&nbsp;&nbsp;Common stock issued for services |  |  | 4027500 | 402 | (1) |  |  | 401 |
| &nbsp;&nbsp;&nbsp;Other comprehensive loss |  |  |  |  |  |  | (51352) | (51352) |
| &nbsp;&nbsp;&nbsp;Net loss | - | - | - | - | - | (1761069) | - | (1761069) |
| **Balance - December 31, 2025** | 237340 | $24 | 11492500 | $1149 | $227068 | $(14619181) | $- | $(14390940) |

---

***The accompanying notes are an integral part of these audited consolidated financial statements***

**AMBITIOUS ENTERTAINMENT, INC.**

**CONSOLIDATED STATEMENTS OF CASH FLOWS**

---

| | | |
|:---|:---|:---|
|  | **Years Ended December 31,** | **Years Ended December 31,** |
|  | **2025** | **2024** |
| **CASH FLOWS FROM OPERATING ACTIVITIES** |  |  |
| &nbsp;&nbsp;&nbsp;Net loss | $(1761069) | $(1300595) |
| &nbsp;&nbsp;&nbsp;Adjustments to reconcile net loss to net cash provided by (used in) operating activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amortization of debt discount and debt issuance costs | 196981 | 273877 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loss on issuance of convertible debt | 362912 | 226820 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Change in FV of derivative | (342625) | 201422 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Stock based compensation | 475000 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Impairment loss | 128650 | 85837 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Non-cash gain on transfer of interest in subsidiaries | (1008070) | (1933261) |
| &nbsp;&nbsp;&nbsp;Changes in operating assets and liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts receivable | 5060 | (2866923) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Tax credit receivable |  | (681727) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other receivable |  | (28101) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Subscription receivable |  | 5000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prepaid expenses | 5000 | 123610 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts payable | 184373 | 463551 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accrued expenses | 685169 | 690138 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other | - | 25428 |
| Net cash used in operating activities | (1068619) | (4714924) |
| **CASH FLOWS FROM INVESTING ACTIVITIES** |  |  |
| &nbsp;&nbsp;&nbsp;Net cash used in the transfer of interest | (11603) | (88928) |
| &nbsp;&nbsp;&nbsp;Investments | (11794) | (20837) |
| Net cash used in investing activities | (23397) | (109765) |
| **CASH FLOWS FROM FINANCING ACTIVITIES** |  |  |
| &nbsp;&nbsp;&nbsp;Proceeds from notes payable | 25000 |  |
| &nbsp;&nbsp;&nbsp;Proceeds from production financing |  | 3591017 |
| &nbsp;&nbsp;&nbsp;Repayments of production financing |  | (1048893) |
| &nbsp;&nbsp;&nbsp;Debt issuance costs / loan origination fees |  | (11645) |
| &nbsp;&nbsp;&nbsp;Proceeds from short term production loans |  | 242702 |
| &nbsp;&nbsp;&nbsp;Advances from related parties | 1035935 | 217005 |
| &nbsp;&nbsp;&nbsp;Repayments to related parties | (131263) | (101572) |
| &nbsp;&nbsp;&nbsp;Proceeds (adjustments) from issuance of common stock | 2500 | (4951) |
| &nbsp;&nbsp;&nbsp;Proceeds from issuance of convertible notes payable | 200000 | 125000 |
| &nbsp;&nbsp;&nbsp;Capital contributions | - | 2146778 |
| Net cash provided by financing activities | 1132172 | 5155441 |
| Effect of foreign exchange rates on cash and cash equivalents | (51442) | (395284) |
| Net change in cash | (11286) | (64532) |
| Cash at beginning of period | 12356 | 76888 |
| Cash at end of period | $1070 | $12356 |
| **SUPPLEMENTAL CASH FLOW INFORMATION:** |  |  |
| &nbsp;&nbsp;&nbsp;Cash paid for income taxes | $- | $- |
| &nbsp;&nbsp;&nbsp;Cash paid for interest | $- | $- |
| **NON CASH INVESTING AND FINANCING ACTIVITIES** |  |  |
| &nbsp;&nbsp;&nbsp;Transfer of interest in subsidiaries | (1008070) | (1933261) |
| &nbsp;&nbsp;&nbsp;Initial derivative liabilities recognized as a debt discount | $220000 | $137500 |

---

***The accompanying notes are an integral part of these audited consolidated financial statements***

 ****

 ****

**AMBITIOUS ENTERTAINMENT, INC.**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**December 31, 2025, and 2024**

**NOTE 1 - ORGANIZATION AND LIQUIDITY**

**Organization and Business Overview**

Ambitious Entertainment, Inc., ("Ambitious", "the Company", "We", "Us") a Nevada corporation, was incorporated in September 2020 to pursue an innovative media content development strategy that pursues opportunities generated from the rapid proliferation of video streaming services such as Netflix, Disney+, Amazon Prime Video, Hulu, and Max (formerly HBO Max) as well as all major movie studios. With offices in New York and Los Angeles, Ambitious is a leading independent media entertainment company which sources, finances, develops and produces IP-based series and movies in "partnership" with the industry's foremost creative artists, streaming sites, and studios. The Company acquires and controls its own movie or series IP which it then packages internally into a lucrative asset for sale directly to streaming sites and movie studios or, when strategically practical, the Company produces its IP in-house. The IP we secure are rights to books, scripts, life-rights, or other IP such as blogs, vlogs, and short videos.

The Company has six wholly owned subsidiaries including Dead Man's Hand Production, LLC, ("DMH"), 1421135 B.C. LTD ("Cold Deck Film, LLC" or "CD" or "Cold Deck"), AMFAD Productions CAD Inc. ("All My Friends Are Dead", "AMFAD"), Scorpion Productions, Inc. ("Scorpion", "Viper"), FATE USA, LLC ("FATE"), and Rage Movie, LLC ("Guns of Redemption" or "GOR" or "Rage") included in the consolidated financial statements for the year ended December 31, 2024. Five of the subsidiaries were transferred out of the Company during the year ended December 31, 2024.

The Company has one wholly owned subsidiary, FATE USA, LLC ("FATE"), included in the consolidated financial statements for the year ended December 31, 2025. The subsidiary was transferred out of the Company during the year ended December 31, 2025.

**Going Concern**

The Company's consolidated financial statements are prepared in accordance with Generally Accepted Accounting Principles ("GAAP") of the United States including the assumption of a going concern basis, which contemplates the realization of assets and liquidation of liabilities in the normal course of business. However, as shown in the accompanying consolidated financial statements, the Company had a net loss of $1.8 million, an accumulated deficit of $14.6 million, and cash used in operations of $1.1 million for the year ended December 31, 2025. The Company expects to continue to incur significant expenditures to develop its technology and is currently not reserving cash to repay convertible notes. As such, there is substantial doubt about the Company's ability to continue as a going concern.

The Company has incurred recurring losses and negative cash flows from operations, which raise substantial doubt about its ability to continue as a going concern. As of December 31, 2025, the Company has $2,092,762 in net convertible debt with a weighted average interest rate of 7% per annum. The convertible debt matures between May and December 2026. The Company's monthly cash burn is approximately $200,000, comprised of $100,000 in producer fees, $65,000 in labor, $7,000 in travel, $7,000 in legal expenses, $6,000 investor relations, $12,000 in audit fees, and $3,000 in development expenses.

Management recognizes that the Company will require additional capital to fund operations in 2026 and beyond. To address these liquidity needs, management has developed plans to raise additional capital both prior to and following a public listing.

The Company intends to raise capital through a Pre-IPO preferred equity offering of up to 100 Pre-IPO Preferred Units at a price of $32,000 per unit, for aggregate gross proceeds of up to $3.2 million. Each unit consists of shares of Pre-IPO preferred stock and warrants to purchase common stock. The preferred stock is convertible into common stock on a one-for-one basis, subject to customary adjustments, and carries a cumulative dividend of 10% per annum, payable in additional preferred shares. The warrants are exercisable at a fixed price per share and have a term of three years from issuance. The Company expects that the proceeds from this offering, if completed, will be used to fund operating expenses and support the Company's strategic objectives through its anticipated public listing.

Following the completion of its anticipated public listing, the Company plans to pursue an additional equity capital raise of up to $15.0 million. Management is currently in discussions with multiple brokerage firms regarding this post-listing financing, which is expected to provide additional capital to fund ongoing operations and support the Company's growth and strategic initiatives.

The completion, timing, and terms of the Company's planned financings are subject to market conditions, regulatory approvals, and the execution of definitive agreements. There can be no assurance that the Company will successfully complete either financing on the terms described, or at all.

In the absence of the successful execution of these plans, the Company does not have contingency plans other than the possibility of personal funding by the Co-President, who also serves as Interim Chief Executive Officer.

These consolidated financial statements do not include any adjustments related to the recoverability or classification of recorded asset amounts and the classification of liabilities that may be necessary if the Company is unable to continue as a going concern.

Management believes the planned pre-IPO capital raise of $3.2 million and the subsequent $15.0 million capital raise, if successfully executed, will mitigate the substantial doubt about the Company's ability to continue as a going concern through the end of 2026.

**NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES**

**Basis of Presentation and Principles of Consolidation**

The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America and pursuant to the rules and regulations of the Securities and Exchange Commission ("SEC"). The consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All significant intercompany accounts and transactions have been eliminated.

**Use of Estimates**

The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. The Company regularly evaluates estimates and assumptions. The Company bases its estimates and assumptions on current facts, historical experience, and various other factors that it believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities and the accrual of costs and expenses that are not readily apparent from other sources. The actual results experienced by the Company may differ materially and adversely from the Company's estimates. To the extent there are material differences between the estimates and the actual results, future results of operations will be affected. Significant estimates are contained in the accompanying consolidated financial statements for the valuation of derivatives, warrants, and other financial instruments.

**Cash and Cash Equivalents**

The Company considers all highly liquid investments with a maturity of three months or less at the time of purchase to be cash equivalents. Financial instruments that potentially subject the Company to a concentration of credit risk consist of cash and cash equivalents. The Company's cash is primarily maintained in checking accounts. These balances may, at times, exceed the U.S. Federal Deposit Insurance Corporation insurance limits. As of December 31, 2025, the Company had cash of $1,070. The Company has not experienced any losses on deposits of cash.

**Accounts Receivable**

Accounts receivable, net represent the amounts that the Company has an unconditional right to consideration, which are stated at the original amount less an allowance for doubtful accounts. The Company reviews the accounts receivable on a periodic basis and makes general and specific allowances when there is doubt as to the collectability of individual balances. The Company usually determines the adequacy of reserves for doubtful accounts based on individual account analysis and historical collection trends. The Company establishes a provision for doubtful accounts when there is objective evidence that the Company may not be able to collect amounts due. The allowance is based on management's best estimates of specific losses on individual exposures, as well as a provision on historical trends of collections. The provision is recorded against accounts receivables balances, with a corresponding charge recorded in the consolidated statements of operations. Delinquent account balances are written off against the allowance for doubtful accounts after management has determined that the likelihood of collection is remote. In circumstances in which the Company receives payment for accounts receivable that have previously been written off, the Company reverses the allowance and bad debt.

**Prepaid Expenses and Other Current Assets**

Prepaid expenses and other current assets consist of various payments that the Company has made in advance for deposits, and goods or services to be received in the future. Prepaid expenses include consulting, advertising, insurance, and service or other contracts requiring up-front payments.

**Deferred Offering Costs**

Deferred offering costs consist of legal, accounting, consulting, and other direct costs incurred in connection with the Company's proposed public offering. These costs are capitalized and presented as deferred offering costs within current assets. Upon consummation of the offering, such costs will be recorded as a reduction of additional paid-in capital. If the offering is abandoned, the deferred offering costs will be expensed in the period in which the offering is terminated.

**Fair Value Measurements**

The Company follows accounting guidelines on fair value measurements for financial instruments measured on a recurring basis, as well as for certain assets and liabilities that are initially recorded at their estimated fair values. Fair value is defined as the exit price, or the amount that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants as of the measurement date. The Company uses the following three-level hierarchy that maximizes the use of observable inputs and minimizes the use of unobservable inputs to value its financial instruments:

● Level 1: Observable inputs such as unadjusted quoted prices in active markets for identical instruments.

● Level 2: Quoted prices for similar instruments that are directly or indirectly observable in the marketplace.

● Level 3: Significant unobservable inputs which are supported by little or no market activity and that are financial instruments whose values are determined using pricing models, discounted cash flow methodologies, or similar techniques, as well as instruments for which the determination of fair value requires a significant judgment or estimation.

Financial instruments measured at fair value are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. The Company's assessment of the significance of a particular input to the fair value measurement in its entirety requires the Company to make judgments and consider factors specific to the asset or liability. The use of different assumptions and/or estimation methodologies may have a material effect on estimated fair values. Accordingly, the fair value estimates disclosed, or initial amounts recorded, may not be indicative of the amount that the Company or holders of the instruments could realize in a current market exchange.

The carrying amounts of the Company's financial instruments including cash, prepaid expenses, accounts payable and accrued liabilities approximate fair value due to the short-term maturities of these instruments.

Set out below are the Company's financial instruments that are required to be remeasured at fair value on a recurring basis and their fair value hierarchy as of December 31, 2025, and 2024:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **December 31, 2025** | **Level 1** | **Level 2** | **Level 3** | **Carrying Value** |
| **Liabilities** |  |  |  |  |
| Derivative Liability - Warrants | $&nbsp;&nbsp;&nbsp;&nbsp;- | $&nbsp;&nbsp;&nbsp;&nbsp;- | $6810870 | $6810870 |
| Derivative Liability – conversion feature | - | - | 1903589 | 1903589 |
| Total Liabilities | $- | $- | $8714459 | $8714459 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| **December 31, 2024** | **Level 1** | **Level 2** | **Level 3** | **Carrying Value** |
| **Liabilities** |  |  |  |  |
| Derivative Liability - Warrants | $&nbsp;&nbsp;&nbsp;&nbsp;- | $&nbsp;&nbsp;&nbsp;&nbsp;- | $6921846 | $6921846 |
| Derivative Liability – conversion feature | - | - | 1552327 | 1552327 |
| Total Liabilities | $- | $- | $8474173 | $8474173 |

---

**Stock-based Compensation**

The Company accounts for share-based payment awards in accordance with ASC 718, *Share-Based Compensation*. Share-based awards issued in exchange for services are measured at their estimated grant-date fair value. Determining the grant-date fair value of equity awards requires management to make judgments and assumptions regarding the valuation of the Company's common stock and the terms of the awards. Stock-based compensation expense is recognized over the requisite service period.We believe the fair value of our common stock represents a reasonable estimate at the grant date; however, changes in the underlying assumptions, including the estimated value of our common stock, could materially affect the amount of stock-based compensation expense recognized in future periods.

**Content Assets**

The Company sources intellectual property ("IP") to create and develop original film and video content for sale or distribution to third parties. Content assets related to original productions consist of the unamortized costs of completed and in-process video content produced by the Company. Capitalized costs include direct production costs, production overhead, and financing costs, including capitalized interest when applicable.

Content assets are monetized individually and are reviewed for impairment on a title-by-title basis when events or changes in circumstances indicate that the carrying value may not be recoverable.

The Company did not capitalize any content assets during the years presented, and no amortization or impairment related to content assets was recorded during those periods. The Company expects to capitalize content assets in future periods as it begins production activities.

**Impairment of Long-lived Assets**

The Company reviews its long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability is assessed by comparing the carrying value of the asset to the estimated undiscounted future cash flows expected to be generated by the asset. If the carrying amount exceeds the estimated undiscounted future cash flows, an impairment loss is recognized in an amount equal to the excess of the carrying value over the asset's fair value.

The Company's estimates of future cash flows are based on assumptions regarding the expected performance of the related film and the Company's future business outlook. Actual results may differ from those estimates.

During the year ended December 31, 2025, the Company recorded an impairment loss of $128,650 related to one film. During the year ended December 31, 2024, the Company recorded an impairment loss of $85,837 related to expired film rights for a project.

**Revenue recognition**

The Company recognizes revenue in accordance with Accounting Standards Codification ("ASC") Topic 606, *Revenue from Contracts with Customers* ("ASC 606"). Revenue is recognized when control of the promised goods or services is transferred to customers in an amount that reflects the consideration to which the Company expects to be entitled in exchange for those goods or services.

To determine revenue recognition for arrangements within the scope of ASC 606, the Company applies the following five-step model:

(1) Identify the contract(s) with a customer;

(2) Identify the performance obligations in the contract;

(3) Determine the transaction price;

(4) Allocate the transaction price to the performance obligations in the contract; and

(5) Recognize revenue when (or as) the entity satisfies a performance obligation.

The Company applies the five-step model to contracts when it is probable that it will collect the consideration to which it is entitled in exchange for the goods or services transferred. At contract inception, the Company evaluates the promised goods or services in each contract to identify performance obligations and determines whether each promised good or service is distinct. Revenue is recognized in an amount equal to the transaction price allocated to the respective performance obligations when (or as) those performance obligations are satisfied.

**Disaggregation of Revenue**

For the years ended December 31, 2025 and 2024, 100% of the Company's revenue was derived from production services. The Company did not generate revenue from feature films or licensing activities during these periods.

The Company's production service arrangements do not provide for significant rights of return, refunds, or warranties. Accordingly, no material provisions for returns, refunds, or warranty obligations were recorded during the years presented.

**Production Services Revenue**

The Company generates revenue from production service agreements pursuant to which it provides production-related services to customers.

Revenue from production service agreements is recognized over time as the Company satisfies its performance obligations because the services are performed for the customer and the customer simultaneously receives and consumes the benefits of those services as they are provided.

Progress toward completion is measured using an input method based on costs incurred relative to total estimated costs (the "cost-to-cost" method), which the Company believes best depicts the transfer of control of services to the customer. Revenue is recognized based on the proportion of costs incurred to total estimated costs.

Costs associated with production service agreements are expensed as incurred. The determination of total estimated costs involves significant judgment and is reviewed on a periodic basis. Revisions to cost estimates are recorded in the period in which the facts that give rise to the revision become known.

**Contract Balances**

The Company's contract balances consist of contract assets and contract liabilities arising from revenue recognized under contracts with customers.

● Contract assets represent revenue recognized in excess of amounts billed to customers when the Company's right to payment is conditional on factors other than the passage of time.

● Contract liabilities (deferred revenue) represent payments received in advance of satisfying the related performance obligations.

The Company did not have any contract assets or contract liabilities as of December 31, 2025 or 2024.

**Performance Obligations**

The Company satisfies its performance obligations for production services over time, accounting for 100% of the Company's total revenue for the years ended December 31, 2025, and December 31, 2024. The satisfaction of performance obligations is measured using the percentage-of-completion method, as described above.

For the years presented, there were no material unsatisfied performance obligations as of the balance sheet date.

**Cost of Revenue**

Costs incurred to produce feature films are capitalized when incurred and expensed when the movie rights are transferred. For production service agreements, costs are recognized in proportion to the percentage of completion, consistent with the revenue recognition method.

The costs incurred to acquire feature film programming rights, including advances, are capitalized.

**Income Taxes**

Income taxes are accounted for using an asset and liability approach for financial accounting and reporting for income taxes and recognition and measurement of deferred assets are based upon the likelihood of realization of tax benefits in future years. Under this method, deferred taxes are provided for the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Valuation allowances are established when management determines that it is more likely than not that some portion or all of the net deferred tax asset, on a jurisdiction-by-jurisdiction basis, will not be realized. The financial effect of changes in tax laws or rates is accounted for in the period of enactment.

From time to time, the Company engages in transactions in which the tax consequences may be subject to uncertainty. Significant judgment is required in assessing and estimating the tax consequences of these transactions. In determining the Company's tax provision for financial reporting purposes, the Company establishes a reserve for uncertain tax positions unless such positions are determined to be more likely than not of being sustained upon examination, based on their technical merits. The Company's policy is to recognize interest and/or penalties related to income tax matters in income tax expense.

**Foreign Currency Translation**

Monetary assets and liabilities denominated in currencies other than the functional currency are translated at exchange rates in effect at the balance sheet date. Resulting unrealized and realized gains and losses are included in the consolidated statements of operations.

Foreign company assets and liabilities in foreign currencies are translated into U.S. dollars at the exchange rate in effect at the balance sheet date. Foreign company revenue and expense items are translated at the average rate of exchange for the fiscal year. Gains or losses arising on the translation of the accounts of foreign companies are included in accumulated other comprehensive income or loss, a separate component of shareholders' equity.

**Convertible Debt and Convertible Preferred Stock**

The Company has adopted Accounting Standards Update ("ASU") 2020-06, simplifying the accounting for convertible instruments. ASU 2020-06 (i) reduced the number of accounting models for convertible instruments, by eliminating the models that require separation of cash conversion or beneficial conversion features from the host and (ii) revised derivative scope exception and (iii) provided targeted improvements for EPS. The adoption of ASU 2020-06 did not have a material impact on the Company's outstanding convertible debt instruments.

When the Company issues convertible debt or convertible preferred stock, it evaluates the balance sheet classification to determine whether the instrument should be classified either as debt or equity, and whether the conversion feature should be accounted for separately from the host instrument. A conversion feature of a convertible debt instrument or certain convertible preferred stock would be separated from the convertible instrument and classified as a derivative liability if the conversion feature, were it a standalone instrument, meets the definition of an "embedded derivative" in ASC 815, *Derivatives and Hedging*. Generally, characteristics that require derivative treatment include, among others, when the conversion feature is not indexed to the Company's equity, as defined in ASC 815-40, or when it must be settled either in cash or by issuing stock that is readily convertible to cash. When a conversion feature meets the definition of an embedded derivative, it would be separated from the host instrument and classified as a derivative liability carried on the consolidated balance sheet at fair value, with any changes in its fair value recognized currently in the consolidated statements of operations.

**Derivative Financial Instruments**

The Company does not use derivative instruments to hedge exposures to cash flow, market or foreign currency risks. We evaluate all of our financial instruments to determine if such instruments are derivatives or contain features that qualify as embedded derivatives. For derivative financial instruments that are accounted for as liabilities, the derivative instrument is initially recorded at its fair value and is then re-valued at each reporting date, with changes in the fair value reported in the statements of operations. For our derivative financial instruments, the Company used a Black Scholes valuation model to value the derivative instruments at inception and on subsequent valuation dates. The classification of derivative instruments, including whether such instruments should be recorded as liabilities or as equity, is evaluated at the end of each reporting period. Derivative liabilities are classified in the balance sheet as current or non-current based on whether or not net-cash settlement or conversion of the instrument could be required within twelve (12) months of the balance sheet date.

**Warrants**

The Company accounts for warrants as either equity-classified or liability-classified instruments based on an assessment of the warrant's specific terms and applicable authoritative guidance in FASB ASC 480, Distinguishing Liabilities from Equity ("ASC 480") and ASC 815, Derivatives and Hedging ("ASC 815"). The assessment considers whether the warrants are freestanding financial instruments pursuant to ASC 480, meet the definition of a liability pursuant to ASC 480, and whether the warrants meet all of the requirements for equity classification under ASC 815, including whether the warrants are indexed to the Company's own ordinary shares and whether the warrant holders could potentially require "net cash settlement" in a circumstance outside of the Company's control, among other conditions for equity classification. This assessment, which requires the use of professional judgment, is conducted at the time of warrant issuance and as of each subsequent quarterly period end date while the warrants are outstanding.

For issued or modified warrants that meet all of the criteria for equity classification, the warrants are required to be recorded as a component of additional paid-in capital at the time of issuance. For issued or modified warrants that do not meet all the criteria for equity classification, the warrants are required to be recorded at their initial fair value on the date of issuance, and each balance sheet date thereafter. Changes in the estimated fair value of the warrants are recognized as a non-cash gain or loss on the statements of operations. The fair value of the warrants was estimated using a Black-Scholes pricing model.

**Earnings (Loss) Per Share**

The Company computes basic and diluted earnings (loss) per share in accordance with ASC 260, *Earnings per Share*. Basic earnings (loss) per share is computed by dividing net income (loss) by the weighted average number of common shares outstanding during the reporting period. Diluted earnings (loss) per share reflects the potential dilution that could occur if stock options and other commitments to issue common shares were exercised or equity awards vest resulting in the issuance of common shares that could share in the earnings (loss) of the Company.

As a result of the net loss in the years ended December 31, 2025, and 2024, the dilutive effect of the warrants and convertible notes were considered anti-dilutive and, therefore, excluded from diluted net loss per share.

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | December 31, | December 31, | December 31, | December 31, |
|  | 2025 | 2025 | 2024 | 2024 |
|  |  | (Share) |  | (Share) |
| Warrant A |  | 4000000 |  | 4000000 |
| Warrant B |  | 1045566 |  | 945566 |
| Warrant C |  | 1045566 |  | 945566 |
| Convertible note | | 1,150,365 | | 1,040,365 |
|  | | 7,241,497 | | 6,931,497 |

---

**Advertising Costs**

The Company follows the policy of charging the cost of advertising to expense as incurred. Advertising expense was nil for the years ended December 31, 2025, and 2024.

**Related Parties and Transactions**

The Company identifies related parties, and accounts for, discloses related party transactions in accordance with ASC 850, "Related Party Disclosures" and other relevant ASC standards.

Parties, which can be an entity or individual, are considered to be related if they have the ability, directly or indirectly, to control the Company or exercise significant influence over the Company in making financial and operational decisions. Entities are also considered to be related if they are subject to common control or common significant influence.

Transactions involving related parties cannot be presumed to be carried out on an arm's-length basis, as the requisite conditions of competitive, free market dealings may not exist. Representations about transactions with related parties, if made, shall not imply that the related party transactions were consummated on terms equivalent to those that prevail in arm's-length transactions unless such representations can be substantiated.

**Segment Information**

The Company determines its operating segments in accordance with ASC 280, *Segment Reporting*, which requires the use of the management approach. Under this approach, operating segments are identified based on the manner in which the Company's chief operating decision maker ("CODM") organizes the Company for purposes of making operating decisions, assessing performance, and allocating resources.

Management has determined that the Company operates as a single operating and reportable segment. The CODM evaluates the Company's financial performance on a consolidated basis and does not regularly review or allocate resources based on disaggregated financial information by product, service line, or geographic region.

During the year ended December 31, 2025, the Company adopted ASU 2023-07, *Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures*. The adoption of ASU 2023-07 did not result in the identification of additional reportable segments. Because the Company operates as a single reportable segment and the CODM evaluates performance on a consolidated basis, the required segment disclosures under ASC 280 largely align with the consolidated financial statements.

**Tax credits and tax credit receivable**

The Company may be eligible to receive tax incentives and credits from U.S. state and local jurisdictions and foreign government agencies to encourage the production of film, episodic, and streaming content.

U.S. GAAP provides limited authoritative guidance on the recognition and measurement of government assistance received by for-profit entities. Accordingly, the Company accounts for production-related tax credits based on an assessment of the substance of the arrangement and by analogy to other applicable accounting guidance.

The Company has elected an accounting policy to treat refundable and transferable production tax credits that are directly linked to qualifying production expenditures as a reduction of the related capitalized content production costs when realization of the credit is considered probable and the amount can be reasonably estimated. Any tax credit receivable would be recognized at that time.

In accordance with ASC 832, *Government Assistance*, the Company discloses the nature of material government assistance arrangements, the accounting policies applied, and other relevant terms, when applicable.

For the years ended December 31, 2025, and 2024, the Company did not capitalize any content assets and did not record any tax credits or tax credit receivables.

**Recent Accounting Pronouncements**

Income Taxes – Improvements to Income Tax Disclosures

In December 2023, FASB issued ASU 2023-09, *Income Taxes (Topic 740): Improvements to Income Tax Disclosures*, which enhances the transparency and decision usefulness of income tax disclosures. The guidance requires disaggregated disclosure of income taxes paid by jurisdiction, standardizes categories within the effective tax rate reconciliation, and modifies other income tax-related disclosure requirements.

The standard is effective for the Company for fiscal years beginning after December 15, 2024, and will be adopted in the Company's annual financial statements for the year ending December 31, 2026. Early adoption is permitted. The Company is currently evaluating the impact of this standard on its consolidated financial statement disclosures.

The Company does not expect the adoption of any other recently issued accounting standards to have a material impact on its consolidated financial statements.

**NOTE 3 - ACCOUNTS RECEIVABLE**

As of December 31, 2025, and 2024, accounts receivable totaled $0 and $290,597, respectively. The amounts as of December 31, 2025, and 2024 represents funds due to the Company under the terms of the film production service agreements.

**NOTE 4 - PREPAID EXPENSES AND OTHER CURRENT ASSETS**

Prepaid expenses and other current assets are assets and payments previously made, that benefit future periods. The balance as of December 31, 2025, and 2024, respectively includes prepaid operating expenses and production related deposits.

Prepaid and other current assets comprised of the following:

---

| | | |
|:---|:---|:---|
|  | December 31,<br>2025 | December 31,<br>2024 |
| Prepaid expenses | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- | $7083 |
| Deposits | - | 109659 |
|  | $- | $116742 |

---

**NOTE 5 – DEFERRED OFFERING COSTS**

As of December 31, 2025 and 2024, the Company had deferred offering costs of $250,000 and $250,000, respectively, recorded as current assets on the accompanying consolidated balance sheets. These costs consist primarily of legal fees incurred in connection with the Company's proposed initial public offering. The deferred offering costs will be reclassified to additional paid-in capital upon completion of the offering.

**NOTE 6 - INVESTMENTS**

The Company invests in various film projects produced by other entities. These investments represent financial contributions to third-party film projects in exchange for participation rights in revenue generated by the completed films. The investments are classified as current assets on the balance sheet and are stated at cost, unless there is evidence of impairment.

As of December 31, 2025, the Company's investments in third-party film projects totaled $11,794, compared to $128,650 as of December 31, 2024. The decrease primarily reflects impairment charges of $128,650, offset by new investments of $11,794.

The Company holds a 0% equity ownership interest in the underlying project rights; rather, the investment entitles the Company to participate in revenue generated if the project successfully proceeds to production and distribution.

**Revenue Participation**

These investments provide the Company with participation rights in revenue streams generated from the exploitation of the films, including theatrical releases, streaming, and other distribution channels. The timing and amount of returns from these investments depend on the performance of the respective film projects and market conditions.

No revenue was recognized related to revenue participation for the years ended December 31, 2025 and 2024.

**Impairment Testing**

The Company evaluates its film investments for impairment whenever events or circumstances indicate that the carrying amount may not be recoverable. Impairment testing is conducted using a discounted cash flow (DCF) model, which incorporates significant assumptions about future revenue streams, market demand, and other economic factors. If the recoverable amount, calculated as the present value of expected future cash flows, is less than the carrying value, an impairment loss is recognized in the period of determination.

During the year ended December 31, 2025, and December 31, 2024, an impairment loss of $128,650, and $85,837, respectively was recognized related to the Company's investments in third-party films.

**Fair Value Hierarchy Classification**

Although the investments are carried at cost, the Company estimates their fair value for impairment testing purposes using unobservable inputs, including projections of future cash flows and discount rates reflective of project-specific risks. As such, these investments fall within Level 3 of the fair value hierarchy under Accounting Standards Codification (ASC) 820.

**Credit Risk**

The Company's investments in third-party film projects are subject to credit risk, as returns depend on the financial and operational performance of external producers and distributors. The Company actively monitors the creditworthiness of its partners and evaluates the recoverability of its investments based on current and anticipated market conditions. Management believes that any credit risks associated with these investments are appropriately reflected in their carrying amounts.

**NOTE 7 - ACCRUED EXPENSES**

Accrued expenses were as follows:

---

| | | |
|:---|:---|:---|
|  | December 31,<br>2025 | December 31,<br>2024 |
| Legal and other services | $514629 | $137128 |
| Stock payable | 475000 |  |
| Accrued interest | 826958 | 519290 |
|  | $1816587 | $656418 |

---

**NOTE 8 - PRODUCTION FINANCING**

The Company did not have any film related obligations as of December 31, 2025.

Film related obligations were as follows as of December 31, 2024:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  |  |  |  | December 31, |
| Production financing | Maturity | Default Interest | Collateral | 2024 |
| Note issued on May 22, 2024 | The Credit Facility shall be repayable on demand. Without limiting the generality of the foregoing, the Credit Facility shall be repaid to Lender not later than sixteen (16) months from the Closing Date (the "Maturity Date"). | Canadian Prime Rate plus 1.50% per annum | From Borrower, a first ranking General Security Agreement on all of Borrower's personal property, movable property, present and future, tangible and intangible, corporeal and incorporeal, including, without limitation, the income receivable from the worldwide sale, licensing commercialization or other exploitation of the Project in all distribution territories and media worldwide to be registered by Lender's counsel in all applicable jurisdictions | $775761 |
|  |  |  |  | $775761 |

---

**NOTE 9 – DEBT**

**Convertible Debt and Embedded Derivative Liabilities**

The Company adopted Accounting Standards Update (ASU) 2020-06, *Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging – Contracts in Entity's Own Equity (Subtopic 815-40)*, on January 1, 2022, using the modified retrospective method. This adoption was aimed at simplifying the accounting for convertible instruments and contracts in an entity's own equity.

As of December 31, 2025, the Company had convertible promissory notes with an aggregate outstanding principal balance of $2,092,762. The Company is not currently in default under the terms of these notes.

ASU 2020-06 introduced key changes to accounting guidance for convertible debt instruments, including the following:

&nbsp;&nbsp;&nbsp;&nbsp;1. Elimination
 of Beneficial Conversion Features (BCF): Under
 ASU 2020-06, the need to separately recognize a beneficial conversion feature (BCF) has been
 removed. In the case of the Company's convertible debt issued in 2021 through 2025,
 the conversion price is tied to 50% of the Initial Public Offering (IPO) offering price,
 which inherently introduces variability. Due to this variability, the conversion feature
 does not trigger the requirements for a BCF under the new standard.

&nbsp;&nbsp;&nbsp;&nbsp;2. Bifurcation
 of Embedded Derivatives: The
 Company evaluated whether the conversion feature met the criteria for bifurcation as an embedded
 derivative under ASC 815-40 (Derivatives and Hedging). The analysis determined that:

○ Indexation Criterion: The conversion price is variable and tied to 50% of the IPO offering price. This variability fails the "fixed-for-fixed" requirement, which would allow the feature to be considered indexed to the Company's equity.

○ Settlement Criterion: While settlement in equity is possible, the variability in conversion terms introduces exposure to equity market risk and does not qualify as "clearly and closely related" to the debt host.

○ Derivative Criterion: The conversion feature exposes the holder to equity market risk, resembling the characteristics of a derivative. Therefore, bifurcation is required under ASC 815.

As a result, the conversion feature was bifurcated from the host debt and classified as a derivative liability. The derivative liability related to the conversion feature was recorded at its fair value of $1.9M and $1.6M as of December 31, 2025, and 2024, respectively.

&nbsp;&nbsp;&nbsp;&nbsp;3. Single-Instrument
 Accounting (No Separation): While
 ASU 2020-06 encourages a single-instrument approach, the embedded conversion feature did
 not qualify for this treatment because it failed to meet the criteria for being indexed to
 the Company's equity and "clearly and closely related" to the debt host.

Valuation of Derivative Liability:

The derivative liability was valued using a Black-Scholes model with the following key assumptions as of December 31, 2025:

● Expected IPO offering price: $4.00.

● Expected volatility: 53%.

● Risk-free interest rate: 3.48%.

● Expected term of conversion feature: .16 – 5 years.

The derivative liability was valued using a Black-Scholes model with the following key assumptions as of December 31, 2024:

● Expected IPO offering price: $4.00.

● Expected volatility: 84%.

● Risk-free interest rate: 4.16%.

● Expected term of conversion feature: 1.16 – 4.94 years.

The Company continues to monitor changes in assumptions and market conditions that may impact the valuation of the derivative liability.

Key Accounting Impact:

The adoption of ASU 2020-06 did not have a material impact on the Company's financial statements at the time of implementation. However, for convertible instruments issued in the period of 2021 through 2025, the variability in the conversion price tied to IPO terms necessitated the bifurcation and recognition of the embedded conversion feature as a derivative liability under ASC 815-40.

*Convertible notes payable*

 

---

| | |
|:---|:---|
|  | **Convertible notes payable** |
| Balance as of December 31, 2023 | $1893229 |
| Issuance in 2024 | 137500 |
|  | 2030729 |
| Less: discount | (114948) |
| Balance as of December 31, 2024 | $1915781 |

---

---

| | |
|:---|:---|
|  | **Convertible notes payable** |
| Balance as of December 31, 2024 | $1915781 |
| Issuance in 2025 | 220000 |
|  | 2135781 |
| Less: discount | (43019) |
| Balance as of December 31, 2025 | $2092762 |

---

During the years ended December 31, 2025, and 2024, the Company recorded interest expense of $150,937 and $137,240 along with amortization of debt discount and original issue discount of $196,981 and $247,271, respectively. As of December 31, 2025, and 2024, the Company recorded accrued interest of $553,444 and $402,506, respectively.

During March 2021 to April 2022, the Company sold units at a price of $25,000 per unit (the "Units"), consisting of (i) a one-year, 7% senior secured convertible promissory note in the aggregate amount of $25,000 per Unit purchased (the "Convertible Notes") subject to an original issue discount of 10% (the "OID"), (ii) a five-year Series B warrant at an aggregate exercise price of $25,000 per Unit purchased, and (iii) a five-year Series C warrant at an aggregate exercise price of $25,000 per Unit purchased. Each Unit was immediately separable upon issuance. The Company received gross proceeds in the amount of $40,000 and $1,069,435, respectively, from the sale of Units, for the year ended December 31, 2022, and 2021.

The maturity date of convertible notes issued in 2022 and 2021 is one and two years from issuance date, respectively. As defined in the agreement, the conversion price is the 50% of offering price per share of common stock paid in Initial Public Offering ("IPO"). The Company determined our conversion feature for the convertible notes is not clearly and closely related to the host and accounted for it as a bifurcated derivative liability in accordance with ASC 815.

During the year ended December 31, 2023, the Company issued convertible debt with principal balances ranging from approximately $25,000 to $111,000. Each debt instrument had the following terms (i) a one-year, 7% senior secured convertible promissory note in the aggregate amount of $25,000 per Unit purchased (the "Convertible Notes") subject to an original issue discount of 10% (the "OID"), (ii) a five-year Series B warrant at an aggregate exercise price of $25,000 per Unit purchased, and (iii) a five-year Series C warrant at an aggregate exercise price of $25,000 per Unit purchased. Each Unit was immediately separable upon issuance. The Company received gross proceeds in the amount of $442,461 from the issuance of the convertible notes.

During the year ended December 31, 2023, the Company also converted a loan payable in the amount of $75,000 to a convertible note with a principal balance of $83,333, debt discount of $12,918, derivative liability of $500 and additional paid in capital of $4,085. The maturity date of convertible notes issued in 2023 is one year from issuance date. As defined in the agreement, the conversion price is the 50% of offering price per share of common stock paid in Initial Public Offering ("IPO"). The Company determined our conversion feature for the convertible notes is not clearly and closely related to the host and accounted for it as a bifurcated derivative liability in accordance with ASC 815.

During the year ended December 31, 2024, the Company issued five convertible debt instruments with principal balances of $25,000. Each debt instrument had the following terms (i) a two-year, 7% senior secured convertible promissory note in the aggregate amount of $25,000 per Unit purchased (the "Convertible Notes") subject to an original issue discount of 10% (the "OID"), (ii) a five-year Series B warrant at an aggregate exercise price of $25,000 per Unit purchased, and (iii) a five-year Series C warrant at an aggregate exercise price of $25,000 per Unit purchased. Each Unit was immediately separable upon issuance. The Company received gross proceeds in the amount of $125,000 from the issuance of the convertible notes.

During the year ended December 31, 2025, the Company issued seven convertible debt instruments with principal balances of $25,000. Each debt instrument had the following terms (i) a one year, 7% senior secured convertible promissory note in the aggregate amount of $25,000 per Unit purchased (the "Convertible Notes") subject to an original issue discount of 10% (the "OID"), (ii) a five-year Series B warrant at an aggregate exercise price of $25,000 per Unit purchased, and (iii) a five-year Series C warrant at an aggregate exercise price of $25,000 per Unit purchased. Each Unit was immediately separable upon issuance. The Company received gross proceeds in the amount of $200,000 from the issuance of the convertible notes.

**NOTE 10 - WARRANT**

*Series A Warrants*

 

During the year ended December 31, 2021, the Company issued 5,600,000 Series A warrants for $56,000. Subsequent to their issuance, these warrants were amended to prefunded warrants. As part of the amendment, the number of warrants was reduced to 4,000,000, and the exercise terms were revised. The Series A Warrants are five-year warrants that are immediately vested and exercisable at a nominal exercise price of $0.001 per share.

As of December 31, 2025, and 2024, the Company has 4,000,000 Series A warrants outstanding.

*Series B Warrants (Units)*

 

The Series B Warrants are five-year warrants that are immediately vested and exercisable at an exercise price equal to 110% of the Conversion Price of the Convertible Notes with an aggregate purchase price of $25,000 per Unit.

As of December 31, 2025, and 2024, the Company has 85 and 77 Series B warrants units outstanding, respectively.

*Series C Warrants (Units)*

 

The Series C Warrants are five-year warrants that are immediately vested and exercisable at an exercise price equal to 110% of the Conversion Price of the Convertible Notes with an aggregate purchase price of $25,000 per Unit.

As of December 31, 2025, and 2024, the Company has 85 and 77 Series C warrants units outstanding, respectively.

The Series A, B, and C Warrants have been accounted for as a derivative liability, in accordance with ASC 815. The derivative liability related to the Series A, B, and C was recorded at its fair value of $6.8M and $6.9M as of December 31, 2025, and 2024, respectively.

A summary of activity of the warrants during the year ended December 31, 2025, and 2024, are as follows:

---

| | | | |
|:---|:---|:---|:---|
|  | Warrants Outstanding | Warrants Outstanding | |
|  | Number of<br>Warrants | Weighted Average<br>Exercise Price | Weighted Average<br>Remaining life<br>(years) |
| Outstanding, December 31, 2023 | 5766132 | $2.06 | 2.42 |
| Granted | 125000 | 2.20 |  |
| Expired / cancelled |  |  |  |
| Exercised | - | - | - |
| Outstanding, December 31, 2024 | 5891132 | $2.06 | 1.48 |
| Granted | 200000 | 2.20 | 4.49 |
| Expired / cancelled |  |  |  |
| Exercised | - | - | - |
| Outstanding, December 31, 2025 | 6091132 | $2.07 | 0.62 |

---

The warrants are exercisable at a price equal to 110% of the conversion price of the related convertible notes. The convertible notes are convertible at 50% of the Company's initial public offering ("IPO") price. Although the IPO price has not yet been determined, the Company currently anticipates an IPO price of approximately $4.00 per share. Based on this assumption, the implied conversion price of the notes would be $2.00 per share and the related warrant exercise price would be $2.20 per share. As of December 31, 2025, the Company's estimated fair value of its common stock was $1.90 per share based on recent arm's-length transactions. Because the estimated fair value of the Company's common stock was below the warrant exercise price, the intrinsic value of the warrants as of December 31, 2025 was $0.

**NOTE 11 – DERIVATIVE LIABILITY**

***Fair Value Assumptions Used in Accounting for Derivative Liabilities***

ASC 815 requires the Company to assess the fair market value of derivative liabilities at the end of each reporting period and recognize any change in fair market value as other income or expense. The Company determined that our derivative liabilities are classified as Level 3 fair value measurements and used the Black-Scholes pricing model to calculate the fair value as of issuance and at December 31, 2025, and 2024.

The Black-Scholes model requires six basic data inputs: the exercise or strike price, time to expiration, the risk-free interest rate, the current stock price, the estimated volatility of the stock price in the future, and the dividend rate. Changes to these inputs could produce significantly higher or lower fair value measurements.

Key assumptions and methodologies used are as follows:

● **Stock Price**: Based on historical issuances.

● **Expected Volatility**: Estimated using historical stock price volatility of comparable companies, as our stock does not have sufficient historical trading activity.

● **Risk-Free Interest Rate**: Derived from U.S. Treasury rates for the applicable periods.

**Sensitivity Analysis**

The fair value of derivative liabilities is sensitive to changes in key inputs:

● **Volatility**: A 5% increase (decrease) in volatility would increase (decrease) the fair value by nominal amount.

● **Risk-Free Rate**: A 50-basis point increase (decrease) in the risk-free interest rate would increase (decrease) the fair value by approximately $2,700.

The inputs used to calculate the derivative values are as follows:

---

| | | |
|:---|:---|:---|
|  | Years ended | Years ended |
|  | December 31, | December 31, |
|  | 2025 | 2024 |
| Stock price | $0.79 - 2.50 | $0.79 - 2.50 |
| Expected term | 0.16 – 5 | 0.26 - 3.17 |
| Expected average volatility | 50% | 66% |
| Expected dividend yield |  |  |
| Risk-free interest rate | 3.47 - 4.16% | 3.88 - 5.25% |

---

The following table summarizes the changes in the derivative liabilities during the year ended December 31, 2025, and 2024:

---

| | |
|:---|:---|
| **Fair Value Measurements Using Significant Unobservable Inputs (Level 3)** | **Fair Value Measurements Using Significant Unobservable Inputs (Level 3)** |
| Balance – January 1, 2024 | $7908430 |
| Addition of new derivatives recognized as warrants | 277578 |
| Addition of new derivatives recognized as conversion feature | 86743 |
| Loss on change in fair value of the derivative | 201422 |
| Balance - December 31, 2024 | $8474173 |
| Addition of new derivatives recognized as warrants | 444126 |
| Addition of new derivatives recognized as conversion feature | 138785 |
| Loss on change in fair value of the derivative | (342625) |
| Balance - December 31, 2025 | $8714459 |

---

The aggregate loss on derivatives during the years ended December 31, 2025, and 2024 was as follows.

---

| | | |
|:---|:---|:---|
|  | Year ended<br>December 31,<br>2025 | Year ended<br>December 31,<br>2024 |
| Day 1 loss due to derivative liabilities | $582912 | 364321 |
| Change in fair value of the derivative | (342626) | 201422 |
|  | $240286 | $565743 |

---

**NOTE 12 – EQUITY**

***Authorized Capital Stock***

 ****

Effective October 2020, the Company filed a Certificate of Amendment to the Articles of Incorporation for authorized capital stock to authorize the Company to issue 151,000,000 shares. The Company has authorized 150,000,000 shares of common stock with a par value of $0.0001 per share and 1,000,000 shares of Preferred Stock with a par value of $0.0001 per share. The Company shall have the authority to issue the shares of Preferred Stock in one or more series with such rights, preferences and designations as determined by the Board of Directors of the Company.

***Series A Preferred Stock***

Effective October 2020, the Company filed a Certificate of Amendment to the Articles of Incorporation for authorized capital stock to authorize the Company to issue 151,000,000 shares. The Company has authorized 150,000,000 shares of common stock with a par value of $0.0001 per share and 1,000,000 shares of Preferred Stock with a par value of $0.0001 per share. The Company shall have the authority to issue the shares of Preferred Stock in one or more series with such rights, preferences and designations as determined by the Board of Directors of the Company.

***Series A Preferred Stock***

The Company has designated 1,000,000 preferred shares, par value $0.0001, as Series A Preferred Stock. Holders of Series A Preferred Stock would have the right to vote with 1 vote per common share on any matters brought before the stockholders of the Company.

The Series A Preferred Stockholders are not entitled to any dividends, mandatory conversion right, or liquidation preference, however, they do have a voluntary conversion right.

Series A Preferred stock is redemption shares upon the occurrence of Liquidity event. The Company shall purchase all shares of Series A preferred stock at a price of $3.00 per share.

Holders of the Company's Series A Preferred Stock shall have the right to convert at a ratio of 1 (one) share of the Company's common stock for 1 (one) share of the Company's Series A Convertible Preferred Stock (subject to adjustments relating to stock splits, distributions, mergers, consolidation, exchange of shares, recapitalization, reorganization, or other similar event).

During the year ended December 31, 2020, the Company issued 205,474 shares of preferred series A stock for cash of $205,474.

During the year ended December 31, 2021, the Company issued 31,867 shares of preferred series A stock for cash of $31,867.

As of December 31, 2025, and 2024, the Company has 237,341 shares of Series A Convertible Preferred Stock issued and outstanding.

***Preferred Stock***

 ****

Each share of Preferred Stock entitles the holder to one vote, in person or proxy, on any matter on which an action of the stockholders of the Company is sought.

***Common Stock***

Each share of Common Stock entitles the holder to one vote, in person or proxy, on any matter on which an action of the stockholders of the Company is sought.

During the year ended December 31, 2020, the Company issued 3,100,000 shares of commons stock for cash of $31,000. The Company also issued 1,700,000 common shares related to $17,000 of services rendered.

During the year ended December 31, 2021, the Company issued 700,000 shares to affiliates for $7,000.

During the year ended December 31, 2022, the Company issued 800,000 shares to an affiliate for $8,000.

During the year ended December 31, 2023, the Company issued 500,000 shares to an affiliate at a par value of $0.0001 per share.

During the year ended December 31, 2024, the Company issued 640,000 shares of common stock pursuant to subscription agreements at a par value of $0.0001 per share.

During the year ended December 31, 2025, the Company issued 25,000 shares of common stock for cash proceeds of $2,500. In addition, the Company issued 4,027,500 shares of common stock pursuant to subscription agreements at a par value of $0.0001 per share.

The aggregate par value of shares issued pursuant to subscription agreements during the years ended December 31, 2024 and 2025 was deemed immaterial. The Company did not collect such amounts and waived an immaterial subscription receivable due to administrative costs exceeding the amount due.

As of December 31, 2025, and 2024, the Company had 11,492,500 and 7,440,000 shares of common stock issued and outstanding, respectively.

**NOTE 13 - RELATED PARTY TRANSACTIONS**

*Related Party Notes Payable*

 

As of December 31, 2025, and December 31, 2024, the Company had related party notes payable of $1,538,004 and $633,332, respectively. All related-party notes are unsecured, bear interest at 10% per annum (calculated yearly, not in advance), and are repayable upon the Company obtaining third-party financing, at which time 25% of such financing proceeds will be applied to the outstanding balances until repaid in full or until their respective maturity dates.

The related-party borrowings consist of several notes issued to entities and individuals affiliated with the Company. The Company has an outstanding note with JC3 Production that was executed on December 31, 2023, with a principal amount of $25,000 and a maturity date of December 31, 2026; no advances or repayments have occurred since issuance. The Company also has a note with Roots Properties Inc. executed on December 31, 2022, with a principal balance of $211,490 and a maturity date of December 31, 2025, for which there have been no advances or repayments. In addition, the Company executed a second note with Roots Properties Inc. on December 31, 2023, providing for borrowings of up to $300,000 and maturing on December 31, 2026; as of December 31, 2025, the Company has received advances totaling $189,735 and has made repayments of $24,000 on this note.

The Company also issued a note to Kirk Shaw, the Co-President and Interim Chief Executive Officer, on December 31, 2023, with a principal amount of $255,088 and a maturity date of December 31, 2026; one repayment of $30,073 has been made on this obligation. On December 31, 2023, the Company entered into another note with Mr. Shaw permitting borrowings of up to $300,000, which was subsequently replaced by a new note executed on September 30, 2025, permitting borrowings of up to $900,000 and maturing on December 31, 2026. As of December 31, 2025, advances under this note totaled $1,014,005 and repayments totaled $159,834.

During the year ended December 31, 2024, the Company received $217,005 in advances from related parties, the Company made repayments of $101,572 and the Company transferred $376,890 of related party obligations as a result of corporate and membership transfer interest agreements (see Note 14).

During the year ended December 31, 2025, the Company received $1,035,935 in advances from related parties, the Company made repayments of $131,262.

*Capital Contributions*

 

During the year ended December 31, 2024, related parties made cash contributions of $2,146,778 to Guns of Redemption, a consolidated subsidiary of the Company, to support ongoing operations. These contributions were non-interest bearing, had no stated maturity, and created no repayment obligation. The contributions were recorded directly to the equity accounts of the subsidiary and were intended to be treated as permanent additions to capital.

As a result, these capital contributions are reflected within cash flows from financing activities in the consolidated statement of cash flows. However, because the contributions were made at the subsidiary level and were subsequently included in the equity of the subsidiary that was transferred as part of the disposition of ownership interest, they are not presented in the Company's consolidated statements of changes in shareholders' deficit.

**NOTE 14 – TRANSFER OF INTEREST**

**Nature of the Transactions**

During the year ended December 31, 2025, on January 1, 2025, the Company executed an Instrument of Transfer of Limited Liability Company Interest, pursuant to which it transferred its 100% ownership interest in FATE USA, LLC ("FATE") to an unrelated third-party transferee for total consideration of $10. FATE owned the film rights to *FATE*.

In accordance with the agreement, the transferee assumed all contractual obligations of FATE, and the Company retains no further responsibility or obligations related to the entity following the transfer.

During the year ended December 31, 2024, on March 31, 2024, the Company transferred its 100% ownership interests in AMFAD and CD to Press Play Productions, LLC, a related party, for total consideration of $20. These subsidiaries owned the film rights to *All My Friends Are Dead* and *Cold Deck,* respectively.

Also on March 31, 2024, the Company transferred its 100% ownership interest in Viper to an unrelated third party for total consideration of $10. Viper owned the film rights to *Viper*.

On August 14, 2024, the Company transferred 80% of its ownership interest in DMH Production LLC equally to two unrelated third parties for total consideration of $10. The Company retained a 20% ownership interest, which is now accounted for under the equity method. DMH owned the film rights to *Dead Man's Hand*.

On December 1, 2024, the Company transferred 100% of its ownership interest in GOR to an unrelated third party for total consideration of $10. GOR owned the film rights to *Guns of Redemption*.

January 1, 2025 – FATE USA, LLC

● Carrying amount of assets derecognized: $440,288

● Carrying amount of liabilities derecognized: $1,448,437

● Net liabilities derecognized: $(1,008,149)

● Total consideration received: $10 (non-cash)

● Gain on deconsolidation: $1,008,070

● Portion of gain from remeasurement of retained interest: N/A – No retained interest

● Description of any retained interest and accounting method: None

● Nature of consideration: Legal assignment of ownership; no cash received

● Other significant arrangements: Transferee assumed all obligations; Company retains no ongoing involvement or commitments

March 31, 2024 – AMFAD, CD, and Viper

● Carrying amount of assets derecognized: $6,351,903

● Carrying amount of liabilities derecognized: $5,659,783

● Net assets derecognized: $692,120

● Total consideration received: $30 (non-cash)

● Loss on deconsolidation: $(791,140)

● Portion of loss from remeasurement of retained interest: N/A – No retained interest

● Description of any retained interest and accounting method: None

● Nature of consideration: Legal transfer; no cash received

● Other significant arrangements:

○ AMFAD and CD were transferred to Press Play Productions, LLC, a related party.

○ The president of Press Play Productions is the son of the Company's CEO.

○ Transferee assumed all obligations and liabilities; the Company retains no further responsibility.

August 14, 2024 – DMH Production LLC

● Carrying amount of assets derecognized: $887,535

● Carrying amount of liabilities derecognized: $2,290,423

● Net liabilities derecognized: ($1,402,888)

● Total consideration received: $10 (non-cash)

● Gain on deconsolidation: $1,302,898

● Retained interest: 20%

● Fair value of retained interest: $0

● Accounting treatment of retained interest: No asset was recognized for the 20% retained interest, as the fair value was determined to be immaterial based on the subsidiary's negative net asset position and lack of expected future cash flows.

● Other arrangements: None; the Company does not retain any continuing involvement, control, or obligations related to DMH beyond its minority interest.

December 1, 2024 – GOR

● Carrying amount of assets derecognized: $2,278,857

● Carrying amount of liabilities derecognized: $3,700,350

● Net liabilities derecognized: ($1,421,493)

● Total consideration received: $10 (non-cash)

● Gain on deconsolidation: $1,421,503

● Retained interest: None

● Other arrangements: Transferee assumed all obligations; Company retains no further responsibilities.

The transfer agreements provided for nominal consideration of $10 per entity, which was non-cash in nature. The consideration amount was contractually stated and negotiated between the parties. Because one transferee was a related party, management evaluated the transaction under ASC 850 and concluded that the terms were consistent with the economic substance of the arrangement.

In determining that nominal consideration was appropriate, management considered that the subsidiaries had no significant ongoing operations, limited liquidity, and no probable future cash flows. Although some subsidiaries had net assets at the date of deconsolidation, those amounts primarily related to assets for which realization was uncertain. The remaining subsidiaries had net liabilities. The transferee assumed all known and contingent liabilities and contractual obligations. Based on these factors, management concluded that the consideration approximated fair value and that no retained interest existed.

**Reason for the Transfers**

The Company continues to implement a strategy focused on divesting completed film projects once all anticipated revenue has been realized and no further significant benefit is expected. These actions align with the Company's operational focus on producing and monetizing new film content.

**Accounting Treatment**

The transfers described above were accounted for as deconsolidation of subsidiaries under ASC 810. The following gains/losses were recognized in the consolidated statements of operations under "Other Income (Expenses)" as Gain (Loss) on Transfer of Corporate and Member Interest:

● Year Ended December 31, 2025: Pre-tax gain of $1,008,070

● Year Ended December 31, 2024: Pre-tax gain of $1,933,261

**Cash Flow Statement Impact**

There was no impact to cash flows during either period presented, as no cash consideration was received in connection with any of the transfers.

**Post-Transfer Obligations**

Under the terms of the respective transfer agreements, the transferees assumed all contractual obligations and liabilities associated with the subsidiaries. The Company retains no ongoing obligations or interests in the transferred entities as of the respective transfer dates.

**NOTE 14 – INCOME TAX**

The income tax expense (benefit) consisted of the following for the years ended December 31, 2025, and 2024:

---

| | | |
|:---|:---|:---|
|  | December 31,<br>2025 | December 31,<br>2024 |
| Total current | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- |  |
| Total deferred | - |  |
|  | $- |  |

---

Deferred income taxes reflect the net tax effects of temporary differences between the carrying amount of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes.

**Tax Rate Reconciliation**

The following is a reconciliation of the expected statutory federal income tax provision at the statutory federal income tax rate of 21% to the actual income tax benefit for the years ended December 31, 2025, and 2024:

---

| | | |
|:---|:---|:---|
|  | Year ended | Year ended |
|  | December 31, | December 31, |
|  | 2025 | 2024 |
| Income tax expense (credit) at statutory rate | $(270074) | $(273125) |
| Change of valuation allowance | 270074 | 273125 |
| Income tax expense (credit) | $- | $- |

---

**Deferred Tax Assets and Liabilities**

Significant components of the Company's deferred tax assets and liabilities as of December 31, 2025, and 2024, were as follows:

---

| | | |
|:---|:---|:---|
|  | December 31, | December 31, |
|  | 2025 | 2024 |
| Operating loss carry forward | $5118649 | $4647488 |
| Valuation allowance | (5118649) | (4647488) |
| Deferred tax asset | $- | $- |

---

**Net Operating Loss (NOL) Carryforwards**

As of December 31, 2025, the Company has federal net operating loss carryforwards of approximately $7.4 million available to offset future taxable income. These NOLs expire in 2039, and their use is subject to limitations under Section 382 of the Internal Revenue Code.

The Company has established a full valuation allowance against its deferred tax assets, including those related to NOLs, due to the uncertainty of realizing these assets. The determination to maintain a full valuation allowance is based on the lack of sufficient positive evidence to overcome the negative evidence of cumulative losses in recent periods.

**Additional Information**

During the years ended December 31, 2025, and 2024, the Company recognized no amounts related to tax interest or penalties associated with uncertain tax positions. The Company is subject to taxation in the United States and various state jurisdictions, with no years currently under examination by any jurisdiction.

**NOTE 15 - COMMITMENT**

*Leases and Long-term Contracts*

The Company has not entered into any long-term leases, contracts or commitments. The Company leases an office on a month-to-month basis. For the year ended December 31, 2025, and 2024, the Company incurred rent expense of $8,846 and $12,173, respectively.

**NOTE 16 – SUBSEQUENT EVENTS**

The Company has evaluated subsequent events from the balance sheet date through April 24, 2026, the date the financial statements were available to be issued.

In April 2026, the Company entered into four Securities Purchase Agreements with accredited investors pursuant to which the Company agreed to sell an aggregate of thirteen (13) Units (the "Bridge Financing"). Each Unit is priced at $32,000 and consists of (i) 10,000 shares of the Company's Series A Convertible Preferred Stock, par value $0.0001 per share, and (ii) warrants to purchase 10,000 shares of the Company's common stock at an exercise price set forth in the warrant with a term of three years from the date of issuance.

The Company received $96,000 in cash from the sale of three (3) Units. In addition, an existing note holder, Roots Properties Inc., used $320,000 of outstanding principal under a note payable to purchase ten (10) Units, which was accounted for as a non-cash financing transaction and resulted in a corresponding reduction of the Company's indebtedness.

No other material subsequent events were identified that required recognition or disclosure in the accompanying financial statements.

[●] **Shares**

**Common Stock**

**Ambitious Entertainment Inc.**

![](formdrsa_001.jpg)

**PROSPECTUS**

______________, 2026

**Revere Securities LLC**

Until __________, 2026 (25 days after the date of this prospectus), all dealers effecting transactions in these securities, whether or not participating in this offering, may be required to deliver a prospectus. This is in addition to a dealer's obligation to deliver a prospectus when acting as an underwriter and with respect to an unsold allotment or subscription.

**PART II**

**INFORMATION NOT REQUIRED IN PROSPECTUS**

**Item 13. Other Expenses of Issuance and Distribution**

The following table sets forth the costs and expenses, other than the underwriting discounts and commissions, payable by us in connection with the sale of the shares of common stock being registered hereby. All amounts are shown are estimates, except the SEC registration fee, the FINRA filing fee and the NYSE American listing fee.

---

| | |
|:---|:---|
| SEC registration fee | $[\*] |
| FINRA filing fee | [\*] |
| NYSE American listing fee | [\*] |
| Printing and engraving expenses | [\*] |
| Legal fees and expenses | [\*] |
| Accounting fees and expenses | [\*] |
| Transfer agent and registrar fees and expenses | [\*] |
| Miscellaneous expenses | [\*] |
| Total | $[\*] |

---

\* To be completed by amendment.

**Item 14. Indemnification of Directors and Officers**

Ambitious Entertainment Inc. is incorporated under the law of the State of Nevada. Neither our articles of incorporation nor bylaws prevent us from indemnifying our officers, directors and agents to the extent permitted under the Nevada Revised Statutes ("NRS"). Section 78.7502 of the NRS provides that a corporation shall indemnify any director, officer, employee or agent of a corporation against expenses, including attorneys' fees, actually and reasonably incurred by him in connection with any defense to the extent that a director, officer, employee or agent of a corporation has been successful on the merits or otherwise in defense of any action, suit or proceeding referred to in Section 78.7502(1) or 78.7502(2), or in defense of any claim, issue or matter therein.

Section 78.7502(1) of the NRS provides that a corporation may indemnify any person who was or is a party or is threatened to be made a party to any threatened, pending or completed action, suit or proceeding, whether civil, criminal, administrative or investigative, except an action by or in the right of the corporation, by reason of the fact that he is or was a director, officer, employee or agent of the corporation, or is or was serving at the request of the corporation as a director, officer, employee or agent of another corporation, partnership, joint venture, trust or other enterprise, against expenses, including attorneys' fees, judgments, fines and amounts paid in settlement actually and reasonably incurred by him in connection with the action, suit or proceeding if he: (a) is not liable pursuant to NRS 78.138; or (b) acted in good faith and in a manner which he reasonably believed to be in or not opposed to the best interests of the corporation, and, with respect to any criminal action or proceeding, had no reasonable cause to believe his conduct was unlawful.

Section 78.7502(2) of the NRS provides that a corporation may indemnify any person who was or is a party or is threatened to be made a party to any threatened, pending or completed action or suit by or in the right of the corporation to procure a judgment in its favor by reason of the fact that he is or was a director, officer, employee or agent of the corporation, or is or was serving at the request of the corporation as a director, officer, employee or agent of another corporation, partnership, joint venture, trust or other enterprise against expenses, including amounts paid in settlement and attorneys' fees actually and reasonably incurred by him in connection with the defense or settlement of the action or suit if he: (a) is not liable pursuant to NRS 78.138; or (b) acted in good faith and in a manner which he reasonably believed to be in or not opposed to the best interests of the corporation. Indemnification may not be made for any claim, issue or matter as to which such a person has been adjudged by a court of competent jurisdiction, after exhaustion of all appeals there from, to be liable to the corporation or for amounts paid in settlement to the corporation, unless and only to the extent that the court in which the action or suit was brought or other court of competent jurisdiction determines upon application that in view of all the circumstances of the case, the person is fairly and reasonably entitled to indemnity for such expenses as the court deems proper.

Section 78.747 of the NRS provides that except as otherwise provided by specific statute, no director or officer of a corporation is individually liable for a debt or liability of the corporation, unless the director or officer acts as the alter ego of the corporation. The court, as a matter of law, must determine the question of whether a director or officer acts as the alter ego of a corporation.

Insofar as indemnification for liabilities arising under the Securities Act may be permitted to directors, officers or persons controlling us pursuant to the foregoing provisions, we have been informed that, in the opinion of the SEC, such indemnification is against public policy as expressed in the Securities Act and is therefore unenforceable. In the event that a claim for indemnification against such liabilities (other than the payment by the registrant of expenses incurred or paid by a director, officer or controlling person of the registrant in the successful defense of any action, suit or proceeding) is asserted by such director, officer or controlling person in connection with the securities being registered, we will, unless in the opinion of our counsel the matter has been settled by controlling precedent, submit to a court of appropriate jurisdiction the question whether such indemnification by us is against public policy as expressed hereby in the Securities Act and we will be governed by the final adjudication of such issue.

Under our amended and restated articles of incorporation and amended and restated bylaws, we may indemnify an officer or director who is made a party to any proceeding, including a lawsuit, because of his position, if he acted in good faith and in a manner, he reasonably believed to be in our best interest. We may advance expenses incurred in defending a proceeding. To the extent that the officer or director is successful on the merits in a proceeding as to which he is to be indemnified, we must indemnify him against all expenses incurred, including attorney's fees. With respect to a derivative action, indemnity may be made only for expenses actually and reasonably incurred in defending the proceeding, and if the officer or director is judged liable, only by a court order. The indemnification is intended to be to the fullest extent permitted by the law of the State of Nevada.

**Item 15. Recent Sales of Unregistered Securities**

**Common Stock Issued to Pursuant to Regulation S**

During the year ended December 31, 2023, the Company issued 500,000 shares of common stock to an affiliate at a par value of $0.0001 per share.

During the year ended December 31, 2024, the Company issued 640,000 shares of common stock pursuant to subscription agreements at a par value of $0.0001 per share.

During the year ended December 31, 2025, the Company issued (i) 25,000 shares of common stock for aggregate cash proceeds of $2,500 and (ii) 4,027,500 shares of common stock pursuant to subscription agreements at a par value of $0.0001 per share.

The aggregate par value of shares issued pursuant to subscription agreements during the years ended December 31, 2024 and 2025 was deemed immaterial. The Company did not collect such amounts and waived the related subscription receivable as the administrative costs of collection exceeded the amount due.

**Convertible Promissory Notes**

During the period from January 1, 2023 through December 31, 2025, the Company issued convertible promissory notes to accredited investors in reliance upon the exemption from registration provided by Section 4(a)(2) of the Securities Act of 1933, as amended (the "Securities Act"), and Rule 506(b) of Regulation D promulgated thereunder.

The aggregate principal amount outstanding under all convertible promissory notes issued by the Company as of December 31, 2025 was $2,250,729, which includes notes originally issued during the period from March 2021 through December 2025. The convertible promissory notes are convertible into an aggregate of 1,150,365 shares of the Company's common stock upon the occurrence of certain events, including qualified financing, at conversion prices and on other terms set forth in the applicable note agreements.

**Warrants Issued in Connection with Convertible Promissory Notes**

In connection with the issuance of the convertible promissory notes described above, during the period from January 1, 2023, through December 31, 2025, the Company issued Series B warrants to purchase an aggregate of 1,045,566 shares of common stock and Series C warrants to purchase an aggregate of 1,045,566 shares of common stock. The Series B and Series C warrants were issued without separate consideration and are exercisable on the terms set forth in the applicable warrant agreements.

These issuances were made in reliance upon the exemption from registration provided by Section 4(a)(2) of the Securities Act.

**Series A Warrants**

During the period from January 1, 2023 through December 31, 2025, the Company issued Series A warrants to purchase an aggregate of 4,000,000 shares of the Company's common stock to accredited investors. The Series A warrants are exercisable on the terms set forth in the applicable warrant agreements and were issued in reliance upon Section 4(a)(2) of the Securities Act.

**Bridge Financing**

In April 2026, the Company entered into four Securities Purchase Agreements with accredited investors pursuant to which the Company agreed to sell an aggregate of thirteen (13) Units (the "Bridge Financing"). Each Unit is priced at $32,000 and consists of (i) 10,000 shares of the Company's Series A Convertible Preferred Stock, par value $0.0001 per share, and (ii) warrants to purchase 10,000 shares of the Company's common stock at an exercise price set forth in the warrant with a term of three years from the date of issuance.

The Company received $96,000 in cash from the sale of three (3) Units. In addition, an existing note holder, Roots Properties Inc., used $320,000 of outstanding principal under a note payable to purchase ten (10) Units, which was accounted for as a non-cash financing transaction and resulted in a corresponding reduction of the Company's indebtedness.

Three of the investors in the Bridge Financing are adult children of Kirk Shaw, the Company's Chief Executive Officer. In addition, Roots Properties Inc. is an entity for which Mr. Shaw serves as President. Accordingly, these transactions constitute related party transactions.

The securities issued in the Bridge Financing were offered and sold in reliance on the exemption from the registration requirements of the Securities Act of 1933, as amended, provided by Section 4(a)(2) thereof and Rule 506(b) of Regulation D promulgated thereunder, as transactions not involving a public offering. The investors have represented that they are accredited investors as defined in Rule 501 of Regulation D.

**Item 16. Exhibits and Financial Statement Schedules**

**INDEX TO EXHIBITS**

---

| | |
|:---|:---|
| **Exhibit No.** | **Description of Exhibit** |
| 1.1\* | Form of Underwriting Agreement |
| 3.1 | [Articles of Incorporation](ex3-1.htm) |
| 3.2 | [Certificate of Correction to the Articles of Incorporation](ex3-2.htm) |
| 3.3 | [Amended and Restated Bylaws](ex3-3.htm) |
| 3.4 | [Certificate of Designation of Series A Preferred Stock](ex3-4.htm) |
| 3.5 | [Certificate of Correction to the Certificate of Designation of Series A Preferred Stock](ex3-5.htm) |
| 4.1\* | Specimen Common Stock Certificate |
| 4.2\* | Form of Representative's Warrant |
| 4.3 | [Form of Warrant dated April 1, 2026](ex4-3.htm) |
| 5.1\* | Opinion of Lucosky Brookman LLP |
| 10.1 | [First Promissory Note dated December 31, 2022, issued by the Company to Roots Properties Inc.](ex10-1.htm) |
| 10.2 | [Second Promissory Note dated December 31, 2023, issued by the Company to Roots Properties Inc.](ex10-2.htm) |
| 10.3 | [Promissory Note dated December 31, 2023, issued by the Company to JC3 Productions](ex10-3.htm) |
| 10.4 | [First Promissory Note dated December 31, 2023, issued by the Company to Kirk Shaw](ex10-4.htm) |
| 10.5 | [Amendment to First Promissory Note dated September 30, 2025, issued by the Company to Kirk Shaw](ex10-5.htm) |
| 10.6 | [Second Promissory Note dated December 31, 2023, issued by the Company to Kirk Shaw](ex10-6.htm) |
| 10.7 | [Director's Agreement by and between the Company and Adam Berk dated January 16, 2026](ex10-7.htm) |
| 10.8 | [Director's Agreement by and between the Company and Chuyun Chen dated January 16, 2026](ex10-8.htm) |
| 10.9 | [Director's Agreement by and between the Company and Owen May dated January 16, 2026](ex10-9.htm) |
| 10.10 | [Director's Agreement by and between the Company and Patricio Rabuffetti dated January 16, 2026](ex10-10.htm) |
| 10.11 | [Form of Securities Purchase Agreement dated April 1, 2026](ex10-11.htm) |
| 10.12 | [Advisory Agreement by and between the Company and Robert Franke dated April 22, 2026](ex10-12.htm) |
| 10.13 | [Advisory Agreement by and between the Company and Ira Kurgan dated April 22, 2026](ex10-13.htm) |
| 10.14 | [Advisory Agreement by and between the Company and Henry Smith dated April 21, 2026](ex10-14.htm) |
| 14.1\* | Code of Business Conduct and Ethics |
| 21.1 | [List of Subsidiaries of Registrant](ex21-1.htm) |
| 23.1 | [Consent of Bush & Associates CPA LLC](ex23-1.htm) |
| 23.2\* | Consent of Lucosky Brookman LLP (included in Exhibit 5.1) |
| 24.1 | [Power of Attorney (included on the signature page hereto)](#p_001) |
| 99.1\* | Audit Committee Charter |
| 99.2\* | Compensation Committee Charter |
| 99.3\* | Nominating and Corporate Governance Committee Charter |
| 99.4\* | Insider Trading Policy |
| 99.5\* | Related Party Transactions Policy and Procedures |
| 99.6\* | Clawback Policy |
| 99.7 | [Consent of Adam Berk to be named as director nominee](ex99-7.htm) |
| 99.8 | [Consent of Chuyun Chen to be named as director nominee](ex99-8.htm) |
| 99.10 | [Consent of Patricio Rabuffeti to be named as director nominee](ex99-10.htm) |
| 99.11 | [Consent of Owen May to be named as director nominee](ex99-11.htm) |
| 99.12 | [Consent of Ben Silverman to be named as director nominee](ex99-12.htm) |
| 107 | [Filing Fee Table](ex107.htm) |

---

---

| | |
|:---|:---|
| \* | To be filed by amendment. |
| + | Indicates a management contract or compensatory plan or arrangement. |
| (b) | Financial statement schedules. |

---

None.

**Item 17. Undertakings**

The undersigned registrant hereby undertakes:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) To file, during any period in which offers or sales are being made, a post-effective amendment to this registration statement:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) To
 include any prospectus required by Section 10(a)(3) of the Securities Act of 1933, as amended.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) To
 reflect in the prospectus any facts or events arising after the effective date of the registration statement (or the most recent
 post-effective amendment thereof) which, individually or in the aggregate, represent a fundamental change in the information set
 forth in the registration statement. Notwithstanding the foregoing, any increase or decrease in volume of securities offered (if
 the total dollar value of securities offered would not exceed that which was registered) and any deviation from the low or high end
 of the estimated maximum offering range may be reflected in the form of prospectus filed with the Commission pursuant to Rule 424(b)
 if, in the aggregate, the changes in volume and price represent no more than 20% change in the maximum aggregate offering price set
 forth in the "Calculation of Registration Fee" table in the effective registration statement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) To
 include any material information with respect to the plan of distribution not previously disclosed in the registration statement
 or any material change to such information in the registration statement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) That, for the purpose of determining any liability under the Securities Act of 1933, each such post-effective amendment shall be deemed to be a new registration statement relating to the securities offered therein, and the offering of such securities at that time shall be deemed to be the initial bona fide offering thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) To remove from registration by means of a post-effective amendment any of the securities being registered which remain unsold at the termination of the offering.

The undersigned registrant hereby undertakes that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) For purposes of determining any liability under the Securities Act, the information omitted from the form of prospectus filed as part of this registration statement in reliance upon Rule 430A and contained in a form of prospectus filed by the Registrant pursuant to Rule 424(b)(1) or (4) or 497(h) under the Securities Act shall be deemed to be part of this registration statement as of the time it was declared effective.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) For the purpose of determining any liability under the Securities Act, each post-effective amendment that contains a form of prospectus shall be deemed to be a new registration statement relating to the securities offered therein, and the offering of such securities at that time shall be deemed to be the initial bona fide offering thereof.

Insofar as indemnification for liabilities arising under the Securities Act may be permitted to directors, officers and controlling persons of the Registrant pursuant to the foregoing provisions, or otherwise, the Registrant has been advised that in the opinion of the Securities and Exchange Commission such indemnification is against public policy as expressed in the Securities Act and is, therefore, unenforceable. In the event that a claim for indemnification against such liabilities (other than the payment by the Registrant of expenses incurred or paid by a director, officer or controlling person of the Registrant in the successful defense of any action, suit or proceeding) is asserted by such director, officer or controlling person in connection with the securities being registered, the Registrant will, unless in the opinion of its counsel the matter has been settled by controlling precedent, submit to a court of appropriate jurisdiction the question whether such indemnification by it is against public policy as expressed in the Securities Act and will be governed by the final adjudication of such issue.

**SIGNATURES**

Pursuant to the requirements of the Securities Act of 1933, we have duly caused this registration statement on Form S-1 to be signed on its behalf by the undersigned, thereunto duly authorized, in the City of New York, State of New York, on the 15<sup>th</sup> day of May, 2026.

---

| | |
|:---|:---|
| **AMBITIOUS ENTERTAINMENT, INC.** | **AMBITIOUS ENTERTAINMENT, INC.** |
| By: | */s/ Kirk E. Shaw* |
|  | Kirk E. Shaw |
|  | Chief Executive Officer |

---

**POWER OF ATTORNEY**

KNOW ALL PERSONS BY THESE PRESENTS, that each person whose individual signature appears below hereby authorizes and appoints Kirk E. Shaw, with full power of substitution and resubstitution and full power to act without the other, as his true and lawful attorney-in-fact and agent to act in his name, place and stead and to execute in the name and on behalf of each person, individually and in each capacity stated below, and to file any and all amendments to this registration statement on Form S-1, and to file the same, with all exhibits thereto, and other documents in connection therewith, with the SEC, granting unto said attorneys-in-fact and agents, and each of them, full power and authority to do and perform each and every act and thing, ratifying and confirming all that said attorneys-in-fact and agents or any of them or their or his substitute or substitutes may lawfully do or cause to be done by virtue thereof.

Pursuant to the requirements of the Securities Act, this registration statement has been signed by the following persons in the capacities and on the dates indicated.

---

| | | |
|:---|:---|:---|
| **Signature** | **Title** | **Date** |
| */s/ Kirk E. Shaw* | Chief Executive Officer | May 15, 2026 |
| Kirk E. Shaw | (Principal Executive Officer, Principal Financial Officer and Principal Accounting Officer) |  |

---

## Exhibit 3.1

**Exhibit 3.1**

![](ex3-1_001.jpg)

![](ex3-1_002.jpg)

![](ex3-1_003.jpg)

![](ex3-1_004.jpg)

## Exhibit 3.2

**Exhibit 3.2**

![](ex3-2_001.jpg)

![](ex3-2_002.jpg)

## Exhibit 3.3

**Exhibit 3.3**

**AMENDED AND RESTATED BYLAWS**

**of**

**AMBITIOUS ENTERTAINMENT, INC.**

(a Nevada corporation)

**TABLE OF CONTENTS**

---

| | |
|:---|:---|
| ARTICLE ONE: OFFICES | 1 |
| &nbsp;&nbsp;&nbsp;1.01 Registered Office and Registered Agent. | 1 |
| &nbsp;&nbsp;&nbsp;1.02 Other Offices. | 1 |
| ARTICLE TWO: STOCKHOLDERS | 1 |
| &nbsp;&nbsp;&nbsp;2.01 Place of Meetings. | 1 |
| &nbsp;&nbsp;&nbsp;2.02 Annual Meeting. | 1 |
| &nbsp;&nbsp;&nbsp;2.03 Special Meetings. | 1 |
| &nbsp;&nbsp;&nbsp;2.04 List of Stockholders. | 2 |
| &nbsp;&nbsp;&nbsp;2.05 Notice. | 2 |
| &nbsp;&nbsp;&nbsp;2.06 Quorum. | 2 |
| &nbsp;&nbsp;&nbsp;2.07 Required Vote. | 2 |
| &nbsp;&nbsp;&nbsp;2.08 Voting of Shares. | 2 |
| &nbsp;&nbsp;&nbsp;2.09 Proxies. | 3 |
| &nbsp;&nbsp;&nbsp;2.10 Presiding Officials at Meetings. | 3 |
| &nbsp;&nbsp;&nbsp;2.11 Election Inspectors. | 3 |
| &nbsp;&nbsp;&nbsp;2.12 Closing of Transfer Books; Record Date. | 3 |
| ARTICLE THREE: DIRECTORS | 4 |
| &nbsp;&nbsp;&nbsp;3.01 Management. | 4 |
| &nbsp;&nbsp;&nbsp;3.02 Number; Term of Office. | 4 |
| &nbsp;&nbsp;&nbsp;3.03 Removal. | 4 |
| &nbsp;&nbsp;&nbsp;3.04 Vacancies | 4 |
| &nbsp;&nbsp;&nbsp;3.05 First Meeting. | 4 |
| &nbsp;&nbsp;&nbsp;3.06 Regular Meetings. | 4 |
| &nbsp;&nbsp;&nbsp;3.07 Special Meetings. | 4 |
| &nbsp;&nbsp;&nbsp;3.08 Quorum; Required Vote. | 4 |
| &nbsp;&nbsp;&nbsp;3.09 Procedure; Minutes. | 4 |
| &nbsp;&nbsp;&nbsp;3.10 Presumption of Assent. | 5 |
| &nbsp;&nbsp;&nbsp;3.11 Interested Directors. | 5 |
| &nbsp;&nbsp;&nbsp;3.12 Compensation. | 5 |
| &nbsp;&nbsp;&nbsp;3.13 Chair of the Board. | 5 |
| &nbsp;&nbsp;&nbsp;3.14 Committees. | 5 |
| ARTICLE FOUR: GENERAL PROVISIONS RELATING TO MEETINGS | 6 |
| &nbsp;&nbsp;&nbsp;4.01 Notice. | 6 |
| &nbsp;&nbsp;&nbsp;4.02 Waiver of Notice. | 6 |
| &nbsp;&nbsp;&nbsp;4.03 Telephone and Similar Meetings. | 6 |
| &nbsp;&nbsp;&nbsp;4.04 Action by Written Consent. | 6 |

---

---

| | |
|:---|:---|
| ARTICLE FIVE: OFFICERS | 7.0 |
| &nbsp;&nbsp;&nbsp;5.01 In General. | 7.0 |
| &nbsp;&nbsp;&nbsp;5.02 Election. | 7.0 |
| &nbsp;&nbsp;&nbsp;5.03 Removal. | 7.0 |
| &nbsp;&nbsp;&nbsp;5.04 Vacancies. | 7.0 |
| &nbsp;&nbsp;&nbsp;5.05 Authority. | 7.0 |
| &nbsp;&nbsp;&nbsp;5.06 Compensation. | 7.0 |
| &nbsp;&nbsp;&nbsp;5.07 Employment and Other Contracts. | 7.0 |
| &nbsp;&nbsp;&nbsp;5.08 Chief Executive Officer. | 7.0 |
| &nbsp;&nbsp;&nbsp;5.09 President and Vice President(s). | 7.0 |
| &nbsp;&nbsp;&nbsp;5.10 Securities of Other Corporations. | 7.0 |
| &nbsp;&nbsp;&nbsp;5.11 Secretary. | 8.0 |
| &nbsp;&nbsp;&nbsp;5.12 Assistant Secretaries. | 8.0 |
| &nbsp;&nbsp;&nbsp;5.13 Treasurer. | 8.0 |
| &nbsp;&nbsp;&nbsp;5.14 Assistant Treasurers. | 8.0 |
| &nbsp;&nbsp;&nbsp;5.15 Bonding. | 8.0 |
| ARTICLE SIX: CERTIFICATES AND STOCKHOLDERS | 8.0 |
| &nbsp;&nbsp;&nbsp;6.01 Certificated and Uncertificated Shares. | 8.0 |
| &nbsp;&nbsp;&nbsp;6.02 Certificates for Certificated Shares. | 8.0 |
| &nbsp;&nbsp;&nbsp;6.03 Lost, Stolen, or Destroyed Certificates. | 9.0 |
| &nbsp;&nbsp;&nbsp;6.04 Transfer of Shares. | 9.0 |
| &nbsp;&nbsp;&nbsp;6.05 Registered stockholders. | 9.0 |
| &nbsp;&nbsp;&nbsp;6.06 Legends. | 9.0 |
| ARTICLE SEVEN: GENERAL PROVISIONS | 10.0 |
| &nbsp;&nbsp;&nbsp;7.01 Dividends. | 10.0 |
| &nbsp;&nbsp;&nbsp;7.02 Reserves. | 10.0 |
| &nbsp;&nbsp;&nbsp;7.03 Indemnification and Insurance. | 10.0 |
| &nbsp;&nbsp;&nbsp;7.04 Books and Records. | 10.0 |
| &nbsp;&nbsp;&nbsp;7.05 Fiscal Year. | 10.0 |
| &nbsp;&nbsp;&nbsp;7.06 Corporate Seal. | 10.0 |
| &nbsp;&nbsp;&nbsp;7.07 Checks. | 10.0 |
| &nbsp;&nbsp;&nbsp;7.08 Resignation. | 10.0 |
| &nbsp;&nbsp;&nbsp;7.09 Amendment. | 10.0 |
| &nbsp;&nbsp;&nbsp;7.10 Invalid Provisions. | 10.0 |
| &nbsp;&nbsp;&nbsp;7.11 Headings. | 10.0 |

---

**AMENDED AND RESTATED BYLAWS**

**of**

**AMBITIOUS ENTERTAINMENT, INC.**

(a Nevada corporation)

ARTICLE ONE

OFFICES

SECTION 1.01. <u>Registered Office and Registered Agent</u>. The registered office and registered agent and office of Ambitious Entertainment, Inc. (the "***Corporation***") in the State of Nevada shall be as designated in the Corporation's articles of incorporation (as amended or restated from time to time, the "***Articles of Incorporation***").

SECTION 1.02. <u>Other Offices</u>. The board of directors of the Corporation (the "***Board of Directors***") may at any time establish other offices at any place or places where the Corporation is qualified to do business. The Corporation's principal executive offices may be within or without the State of Nevada as determined from time to time by the Board of Directors. The Board of Directors may establish such other offices of the Corporation within or without the State of Nevada as it may from time to time determine.

ARTICLE TWO

STOCKHOLDERS

SECTION 2.01. <u>Place of Meetings</u>. All annual meetings of stockholders shall be held at such place, within or without the State of Nevada, or by means of remote communication, as may be designated by the Board of Directors and stated in the notice of the meeting or in a duly executed waiver of notice thereof. Special meetings of stockholders may be held at such place, within or without the State of Nevada, or by means of remote communication, as shall be stated in the notice of the meeting or in a duly executed waiver of notice thereof. If no place for a meeting is designated, it shall be held at the registered office of the Corporation.

SECTION 2.02. <u>Annual Meeting</u>. The annual meeting of the stockholders for the election of directors and for the transaction of such other business as may properly come before the meeting in accordance with these bylaws shall be held at such date, time, and place, if any, as shall be determined by the Board of Directors and stated in the notice of the meeting.

SECTION 2.03. <u>Special Meetings</u>. Only such business shall be transacted at a special meeting as may be stated or indicated in the notice of such meeting. Special meetings of the stockholders may be called by (a) the Chair of the Board, the Chief Executive Officer, or the Board of Directors; or (b) by the Secretary, following receipt of one or more written demands to call a special meeting of the stockholders in accordance with, and subject to, this Section 2.03 from stockholders of record who own, in the aggregate, at least sixty-six and two-thirds percent (66-2/3%) of the voting power of the outstanding shares of the Corporation then entitled to vote on the matter or matters to be brought before the proposed special meeting. Upon request in writing to the Chief Executive Officer, President, Vice President or Secretary by any person or persons entitled to call a meeting of stockholders, the officer shall promptly cause a written notice to be given to the stockholders entitled to vote that a meeting will be held on a date and at a time, fixed by the officer, not less than ten (10) days after the date of receipt of the request. If the notice is not given within seven (7) days after the date of receipt of the request, the person or persons calling the meeting may fix the date and time of the meeting and give the notice in the manner provided in these bylaws. If not otherwise stated in or fixed in accordance with these bylaws, the record date for determining stockholders entitled to call a special meeting is the date on which the first stockholder receives the notice of such meeting. Nothing contained in this section shall be construed as limiting, fixing, or affecting the time or date on which a meeting of stockholders called by action of the Board of Directors may be held.

SECTION 2.04. <u>List of Stockholders</u>. At least ten (10) days before each meeting of stockholders, a complete list of the stockholders entitled to vote at such meeting, arranged in alphabetical order, with the address and the number of voting shares registered in the name of each, will be prepared by the officer or agent having charge of the stock transfer books. Such list will be kept on file at the registered office of the Corporation for a period of ten (10) days prior to such meeting and will be subject to inspection by any stockholder at any time during usual business hours. Such list will be produced and kept open at the time and place of the meeting during the whole time thereof, and will be subject to the inspection of any stockholder who may be present. The original stock transfer book shall be prima facie evidence as to who are the stockholders entitled to examine such list or to vote at any such meeting of stockholders. However, failure to prepare and to make available such list in the manner provided in this section shall not affect the validity of any action taken at the meeting.

SECTION 2.05. <u>Notice</u>. Written or printed notice stating the place, day, and hour of each meeting of stockholders and, in case of a special meeting, the purpose or purposes for which the meeting is called, shall be delivered not less than ten (10) days or more than sixty (60) days before the date of the meeting. Notice must be delivered either personally or by mail, by or at the direction of the President, the Secretary, or the officer or person calling the meeting, to each stockholder of record entitled to vote at such meeting. If mailed, such notice will be deemed to be delivered when deposited in the United States mail, addressed to the stockholder at his or her address as it appears on the stock transfer books of the Corporation, with postage thereon prepaid. When a meeting of stockholders is adjourned for thirty (30) days or more, notice of the adjourned meeting shall be given as in the case of an original meeting. When a meeting is adjourned for less than thirty (30) days, it shall not be necessary to give any notice of the time and place of the adjourned meeting or of the business to be transacted thereat, other than by announcement at the meeting at which the adjournment is taken.

SECTION 2.06. <u>Quorum</u>. Unless otherwise required by law, the Articles of Incorporation or these bylaws, at each meeting of the stockholders, a majority in voting power of the then outstanding shares of the Corporation entitled to vote at the meeting, present in person or represented by proxy, shall constitute a quorum. If, however, such quorum shall not be present or represented at any meeting of the stockholders, the chair of the meeting or the stockholders entitled to vote at the meeting, present in person or represented by proxy, shall have power, by the affirmative vote of a majority in voting power thereof, to adjourn the meeting from time to time, until a quorum shall be present or represented. A quorum, once established, shall not be broken by the subsequent withdrawal of enough votes to leave less than a quorum. At any such adjourned meeting at which there is a quorum, any business may be transacted that might have been transacted at the meeting originally called.

SECTION 2.07. <u>Required Vote</u>. The vote of the holders of a majority of the shares entitled to vote at a meeting at which a quorum is present shall decide any question brought before such meeting, unless the question is one on which, by express provision of law, the Articles of Incorporation, or these bylaws, the vote of a greater number of shares is required, in which case such express provision shall govern and control the decision of such question.

SECTION 2.08. <u>Voting of Shares</u>. Each outstanding share, regardless of class, shall be entitled to one vote on each matter submitted to a vote at a meeting of stockholders, except to the extent that the voting rights of the shares of any class are limited or denied by the Nevada Revised Statutes (the "***NRS***"). At any election for directors, every stockholder entitled to vote in such election shall have the right to vote, in person or by proxy, the number of shares owned by such stockholder for as many persons as there are director positions to be filled with respect to which the stockholder has the right to vote, and stockholders are expressly prohibited from cumulating their votes in any election for directors of the Corporation. Treasury shares, shares owned by another corporation that is owned or controlled by the Corporation, and shares held by the Corporation in a fiduciary capacity shall not be shares entitled to vote or to be counted in determining the total number of outstanding shares of the Corporation. Shares held by an administrator, executor, guardian, or conservator may be voted by him or her, either in person or by proxy, without transfer of such shares into his or her name so long as such shares form a part of the estate and are in the possession of the estate being served by him or her. Shares standing in the name of a trustee may be voted by him or her, either in person or by proxy, only after the shares have been transferred into his or her name as trustee. Shares standing in the name of a receiver may be voted by such receiver, and shares held by or under the control of a receiver may be voted by such receiver without transfer of such shares into his or her name if authority to do so is contained in the court order by which such receiver was appointed. Shares standing in the name of another domestic or foreign corporation of any type or kind may be voted by such officer, agent, or proxy as the bylaws of such corporation may provide or, in the absence of such provision, as the board of directors of such corporation may by resolution determine. A stockholder whose shares are pledged shall be entitled to vote such shares until they have been transferred into the name of the pledgee, and thereafter the pledgee shall be entitled to vote such shares.

SECTION 2.09. <u>Proxies</u>. Each stockholder entitled to vote at a meeting of stockholders may authorize another person or persons to act for such stockholder by proxy, but no such proxy shall be voted or acted upon after eleven (11) months from its date, unless the proxy provides for a longer period. Such authorization may be a document executed by the stockholder or his or her authorized officer, director, employee, or agent. To the extent permitted by law, a stockholder may authorize another person or persons to act for him or her as proxy by transmitting or authorizing the transmission of an electronic transmission to the person who will be the holder of the proxy or to a proxy solicitation firm, proxy support service organization, or like agent duly authorized by the person who will be the holder of the proxy to receive such transmission, provided that the electronic transmission either sets forth or is submitted with information from which it can be determined that the electronic transmission was authorized by the stockholder. A copy, facsimile transmission, or other reliable reproduction (including any electronic transmission) of the proxy authorized by this Section 2.09 may be substituted for or used in lieu of the original document for any and all purposes for which the original document could be used, provided that such copy, facsimile transmission, or other reproduction shall be a complete reproduction of the entire original document. A proxy shall be irrevocable if it states that it is irrevocable and if, and only as long as, it is coupled with an interest sufficient in law to support an irrevocable power. A stockholder may revoke any proxy that is not irrevocable by attending the meeting and voting in person or by delivering to the Secretary a revocation of the proxy or a new proxy bearing a later date.

SECTION 2.10. <u>Presiding Officials at Meetings</u>. At every meeting of the stockholders, the chair of the Board of Directors or, in his or her absence, the Chief Executive Officer or President or, in his or her absence, a person appointed at the meeting, shall preside, and the Secretary shall prepare minutes.

SECTION 2.11. <u>Election Inspectors</u>. In advance of any meeting of stockholders, the Board of Directors may appoint any persons, other than nominees for office, as inspectors of election to act at such meeting or any adjournment thereof. If inspectors of election are not so appointed, the chairman of any such meeting may, and on the request of any stockholder or the stockholder's proxy shall, appoint inspectors of election at the meeting. The number of inspectors shall be either one or three. If appointed at a meeting on the request of one or more stockholders or proxies, the majority of shares present shall determine whether one or three inspectors are to be appointed. In case any person appointed as inspector fails to appear or fails or refuses to act, the vacancy may be filled by appointment by the Board of Directors in advance of the meeting, or at the meeting by the person acting as chairman. The inspectors of election shall (a) ascertain the number of shares outstanding and the voting power of each; (b) determine the shares represented at the meeting and the validity of proxies and ballots; (c) count all votes and ballots; (d) determine and retain for a reasonable period a record of the disposition of any challenges made to any determination by the inspectors; and (e) certify their determination of the number of shares represented at the meeting and their count of all votes and ballots. The inspectors of election shall perform their duties impartially, in good faith, to the best of their ability and as expeditiously as is practical. If there are three inspectors of election, the decision, act or certificate of a majority is effective in all respects as the decision, act or certificate of all. On request of the chairman of the meeting or of any stockholder or his or her proxy, the inspectors shall make a report in writing of any challenge or question, or matter determined by them and execute a certificate of any fact found by them. Any report or certificate made by them is *prima facie* evidence of the facts stated therein.

SECTION 2.12. <u>Closing of Transfer Books; Record Date</u>. For the purpose of determining stockholders entitled to notice of, or to vote at, any meeting of stockholders or any reconvening thereof, or entitled to receive payment of any dividend, or in order to make a determination of stockholders for any other proper purpose, the Board of Directors may provide that the stock transfer books of the Corporation shall be closed for a stated period but not to exceed in any event sixty (60) days. If the stock transfer books are closed for the purpose of determining stockholders entitled to notice of, or to vote at, a meeting of stockholders, such books shall be closed for at least ten (10) days immediately preceding such meeting. In lieu of closing the stock transfer books, the Board of Directors may fix in advance a date as the record date for any such determination of stockholders, such date in any case to be not more than sixty (60) days and, in case of a meeting of stockholders, not less than ten (10) days prior to the date on which the particular action requiring such determination of stockholders is to be taken. If the stock transfer books are not closed and if no record date is fixed for the determination of stockholders entitled to notice of, or to vote at, a meeting of stockholders or entitled to receive payment of a dividend, the date on which the notice of the meeting is to be mailed or the date on which the resolution of the Board of Directors declaring such dividend is adopted, as the case may be, shall be the record date for such determination of stockholders.

ARTICLE THREE

DIRECTORS

SECTION 3.01. <u>Management</u>. The business and affairs of the Corporation shall be managed by or under the direction of the Board of Directors, who may exercise all powers of the Corporation and do all lawful acts and things as are not by law, the Articles of Incorporation, or these bylaws directed or required to be exercised or done by the stockholders.

SECTION 3.02. <u>Number; Term of Office</u>. The Board of Directors shall consist of at least three (3) and not more than seven (7) directors, provided that the minimum and maximum number of directors may be increased or decreased from time to time by an amendment to these bylaws or by resolutions adopted by the Board of Directors. No reduction of the authorized number of directors shall have the effect of removing any director before that director's term of office expires. Each director shall hold office until a successor is duly elected and qualified or until the director's earlier death, resignation, disqualification, or removal.

SECTION 3.03. <u>Removal</u>. Except as prohibited by applicable law or the Articles of Incorporation, the stockholders holding a majority of the shares then entitled to vote at an election of directors may remove any director from office with or without cause.

SECTION 3.04. <u>Vacancies</u>. Any vacancy occurring in the Board of Directors by death, resignation, removal, or otherwise may be filled by an affirmative vote of at least a majority of the remaining directors though less than a quorum of the Board of Directors. A director elected to fill a vacancy will be elected for the unexpired term of his or her predecessor in office. A directorship to be filled by reason of an increase in the number of directors may be filled by the Board of Directors for a term of office only until the next election of one or more directors by the stockholders.

SECTION 3.05. <u>First Meeting</u>. Each newly elected Board of Directors may hold its first meeting, if a quorum is present, for the purpose of organization and the transaction of business immediately after and at the same place as the annual meeting of stockholders, and no notice of such meeting shall be necessary.

SECTION 3.06. <u>Regular Meetings</u>. Regular meetings of the Board of Directors may be held without notice at such times and places, within or without the State of Nevada, as may be designated from time to time by resolution of the Board of Directors and communicated to all directors. Regular meetings of the Board of Directors may be held when and if needed, and no more than one regular meeting of the Board of Directors shall be required in any calendar year.

SECTION 3.07. <u>Special Meetings</u>. A special meeting of the Board of Directors shall be held whenever called by any director at such time and place, within or without the State of Nevada, as such director shall designate in the notice of such special meeting. The director calling any special meeting shall cause oral or written notice of such special meeting to be given to each director at least twenty-four (24) hours before such special meeting. Neither the business to be transacted at, nor the purpose of, any special meeting of the Board of Directors need be specified in the notice or waiver of notice of any special meeting.

SECTION 3.08. <u>Quorum; Required Vote</u>. At all meetings of the Board of Directors, a majority of the directors fixed in the manner provided in these bylaws shall constitute a quorum for the transaction of business, unless a greater affirmative vote is required under the Article of Incorporation, these bylaws or applicable law. If a quorum is not present at a meeting, a majority of the directors present may adjourn the meeting from time to time, without notice other than an announcement at the meeting, until a quorum is present. The vote of a majority of the directors present at a meeting at which a quorum is in attendance shall be the act of the Board of Directors, unless the vote of a different number is required by law, the Articles of Incorporation or these bylaws.

SECTION 3.09. <u>Procedure; Minutes</u>. At meetings of the Board of Directors, business shall be transacted in such order as the Board of Directors may determine from time to time. The Board of Directors shall appoint at each meeting a person to preside at the meeting and a person to act as secretary of the meeting. The secretary of the meeting shall prepare minutes of the meeting that shall be delivered to the Secretary of the Corporation for placement in the minute books of the Corporation.

SECTION 3.10. <u>Presumption of Assent</u>. A director of the Corporation who is present at any meeting of the Board of Directors at which action on any matter is taken shall be presumed to have assented to the action unless his or her dissent shall be entered in the minutes of the meeting or unless he or she shall file his or her written dissent to such action with the person acting as secretary of the meeting before the adjournment thereof, or shall forward any dissent by certified or registered mail to the Secretary of the Corporation immediately after the adjournment of the meeting. Such right to dissent shall not apply to a director who voted in favor of such action.

SECTION 3.11. <u>Interested Directors</u>. No contract or transaction between the Corporation and one or more of its directors or officers, or between the Corporation and any other corporation, partnership, association or other organization in which one or more of the Corporation's directors or officers are directors or officers or have a financial interest, will be void or voidable solely for this reason, solely because the director or officer is present at or participates in the meeting of the Board of Directors or committee thereof that authorizes the contract or transaction, or solely because his, her, or their votes are counted for such purpose, if: (i) the material facts as to his or her relationship or interest and as to the contract or transaction are disclosed or are known to the Board of Directors or the committee, and the Board of Directors or committee in good faith authorizes the contract or transaction by the affirmative vote of a majority of the disinterested directors, even though the disinterested directors be less than a quorum; (ii) the material facts as to his or her relationship or interest and as to the contract or transaction are disclosed or are known to the stockholders entitled to vote thereon, and the contract or transaction is specifically approved in good faith by vote of the stockholders; or (iii) the contract or transaction is fair as to the Corporation as of the time it is authorized, approved or ratified by the Board of Directors, a committee thereof or the stockholders. Interested directors may be counted in determining the presence of a quorum at a meeting of the Board of Directors or of a committee that authorizes the contract or transaction.

SECTION 3.12. <u>Compensation</u>. Directors, in their capacity as directors, may receive, by resolution of the Board of Directors, a stated salary or a fixed sum and reimbursement for expenses, if any, for attending meetings of the Board of Directors. No director shall be precluded from serving the Corporation in any other capacity or receiving compensation therefor.

SECTION 3.13. <u>Chair of the Board</u>. The Board of Directors may, in its discretion, choose a Chair of the Board from among the directors on the Board of Directors who will preside at all meetings of the stockholders and of the Board of Directors and will be an *ex officio* member of all committees of the Board of Directors, subject to meeting any applicable legal and regulatory requirement for such membership. During the absence or disability of the Chief Executive Officer, the Chair will exercise the powers and perform the duties of the Chief Executive Officer. The Chair will have such other powers and will perform such other duties as shall be designated by the Board of Directors. The Chair shall serve until a successor is chosen and qualified, but may be removed at any time by the affirmative vote of a majority of the Board of Directors.

SECTION 3.14. <u>Committees</u>. The Board of Directors may designate one or more committees, each committee to consist of one or more of the directors of the Corporation and such composition to be compliance with the requirements of applicable law or of any securities exchange on which the Corporations securities may be listed. So long as any securities of the Corporation are listed on a national securities exchange, it will have such committees as may be required by the requirements of such securities exchange and the composition of such committees shall comply with the requirements of such securities exchange. Such committees shall adopt charters as required by applicable law and the requirements of any national securities exchange on which any securities of the Corporation may be from time to time listed. The Board of Directors may designate one or more directors as alternate members of any committee, who may replace any absent or disqualified member at any meeting of the committee. If a member of a committee shall be absent from any meeting, or disqualified from voting, the remaining member or members present at the meeting and not disqualified from voting, whether or not such member or members constitute a quorum, may unanimously appoint another member of the Board of Directors to act at the meeting in the place of any such absent or disqualified member. Any such committee, to the extent permitted by applicable law, shall have and may exercise all the powers and authority of the Board of Directors in the management of the business and affairs of the Corporation and may authorize the seal of the Corporation to be affixed to all papers that may require it to the extent so authorized by the Board of Directors. Unless the Board of Directors provides otherwise, at all meetings of such committee, a majority of the then authorized members of the committee shall constitute a quorum for the transaction of business, and the vote of a majority of the members of the committee present at any meeting at which there is a quorum shall be the act of the committee. Each committee shall keep regular minutes of its meetings. Unless the Board of Directors provides otherwise, each committee designated by the Board of Directors may make, alter and repeal rules and procedures for the conduct of its business. In the absence of such rules and procedures each committee shall conduct its business in the same manner as the Board of Directors conducts its business pursuant to this Article III.

ARTICLE FOUR

GENERAL PROVISIONS RELATING TO MEETINGS

SECTION 4.01. <u>Notice</u>. Whenever by law, the Articles of Incorporation, or these bylaws notice require that notice be given to any stockholder, director, or committee member and no provision is made as to how such notice shall be given, it shall be construed to mean that notice may be given, in writing, either (i) in person, receipt acknowledged; (ii) by certified mail, return receipt requested; or (iii) via overnight national courier, receipt acknowledged. Any notice required or permitted to be given hereunder (other than personal notice) shall be addressed to such stockholder, director, or committee member at his or her address as it appears on the books on the Corporation or, in the case of a stockholder, on the stock transfer records of the Corporation or at such other place as such stockholder, director, or committee member is known to be at the time notice is mailed or transmitted. Any notice required or permitted to be given by mail shall be deemed to be delivered and given at the time when such notice is deposited in the United States mail, postage prepaid. Any notice required or permitted to be given by telegram, telex, cable, telecopy or facsimile transmission, or similar means, shall be deemed to be delivered and given at the time transmitted.

SECTION 4.02. <u>Waiver of Notice</u>. Whenever by law, the Articles of Incorporation or these bylaws any notice is required to be given to any stockholder, director, or committee member of the Corporation, a waiver thereof in writing signed by the person or persons entitled to such notice, whether before or after the time notice should have been given, shall be equivalent to the giving of such notice. Attendance of a director at a meeting shall constitute a waiver of notice of such meeting, except where a director attends a meeting for the express purpose of objecting to the transaction of any business on the ground that the meeting is not lawfully called or convened.

SECTION 4.03. <u>Telephone and Similar Meetings</u>. Meetings of the Board of Directors or of any committee of the Board of Directors may be held by means of telephone conference or other communications equipment by means of which all persons participating in the meeting can hear each other and be heard. Participation by a director in a meeting pursuant to this Section 4.03 shall constitute presence in person at such meeting.

SECTION 4.04. <u>Action by Written Consent</u>. Any action that may be taken, or is required by law, the Articles of Incorporation, or these bylaws to be taken, at a meeting of stockholders, directors, or committee members may be taken without a meeting, without prior notice, and without a vote, if a consent in writing setting forth the action so taken shall be (a) in the case of stockholders, signed and bear the date of signature by stockholders having not less than the minimum number of votes that would be necessary to take such action at a meeting at which the holders of all shares entitled to vote on the action were present and voted with respect to the subject matter thereof; or (b) in the case of directors or committee members, signed by all directors or committee members, as the case may be, entitled to vote with respect to the subject matter thereof. Any such consent shall have the same force and effect as a vote of such stockholders, directors, or committee members, as the case may be, and may be stated as such in any document filed with the Secretary of State of State of Nevada or in any certificate or other document delivered to any person. The consent may be in one or more counterparts, and the signed consent shall be placed in the minute book of the Corporation.

ARTICLE FIVE

OFFICERS

SECTION 5.01. <u>In General</u>. The officers of the Corporation will be elected by the Board of Directors and shall consist of a President and a Secretary. The Board of Directors may also elect Vice Presidents, Assistant Vice Presidents, a Treasurer, Assistant Secretaries and Assistant Treasurers, and such other officers and agents as the Board of Directors may deem desirable. Any two or more offices may be held by the same person. No officer or agent need be a stockholder, a director, a resident of the State of Nevada, or a citizen of the United States.

SECTION 5.02. <u>Election; Term</u>. The Board of Directors, at its first meeting after each annual meeting of stockholders, shall elect a President, a Secretary, and such other officers as they deem appropriate. The Board of Directors then, or from time to time, may also elect or appoint one or more other officers as it shall deem advisable. Each officer shall hold office for the term for which he or she is elected or appointed and until his or her successor has been elected or appointed and qualified. Unless otherwise provided in the resolution of the Board of Directors electing or appointing an officer, his or her term of office shall extend to and expire at the meeting of the Board of Directors following the next annual meeting of stockholders or, if earlier, at his or her death, resignation, or removal.

SECTION 5.03. <u>Removal</u>. Any officer elected or appointed by the Board of Directors may be removed by a majority of the Board of Directors if, in the judgment of a majority of the Board of Directors, the best interests of the Corporation will be served thereby, but such removal shall be without prejudice to the contract rights, if any, of the person so removed. Election or appointment of an officer shall not of itself create contract rights.

SECTION 5.04. <u>Vacancies</u>. Any vacancy occurring in any office of the Corporation may be filled by the Board of Directors. Such person(s) appointed by the Board of Directors to fill a vacancy shall hold such position until the next annual meeting.

SECTION 5.05. <u>Authority</u>. Officers shall have such authority and perform such duties in the management of the Corporation as are set forth in these bylaws and as conferred to them under applicable law, or, to the extent not inconsistent with these bylaws or applicable law, as specifically designated in the resolution of the Board of Directors creating such position and appointing or electing such person.

SECTION 5.06. Compensation. The compensation, if any, of officers shall be fixed, increased, or decreased from time to time by the Board of Directors; provided, however, that the Board of Directors may, by resolution, delegate to any one or more officers of the Corporation the authority to fix such compensation.

SECTION 5.07. <u>Employment and Other Contracts</u>. The Board of Directors may authorize any officer or officers of the Corporation to enter into any contract or execute and deliver any instrument in the name or on behalf of the Corporation, and such authority may be general or confined to specific instances. The Board of Directors may, when it believes the interest of the Corporation will best be served thereby, authorize executive employment contracts on such terms and conditions as the Board of Directors deems appropriate.

SECTION 5.08. <u>Chief Executive Officer</u>. The Chief Executive Officer shall, subject to the provisions of these bylaws and the control of the Board of Directors, have general supervision, direction, and control over the business of the Corporation and over its officers. The Chief Executive Officer shall perform all duties incident to the office of the Chief Executive Officer, and any other duties as may be from time to time assigned to the Chief Executive Officer by the Board of Directors.

SECTION 5.09. <u>President and Vice President(s)</u>. Each President and Vice President will have the usual and customary powers and perform the usual and customary duties incident to the offices of President and Vice President, and will have such other powers and perform such other duties as the Board of Directors or any committee thereof may from time to time prescribe or as the President may from time to time delegate to him or her. In the absence or disability of the President, a Vice President designated by the Board of Directors, or in the absence of such designation the Vice Presidents in the order of their seniority in office, will exercise the powers and perform the duties of the President until such time that a President shall have been appointed by the Board of Directors.

SECTION 5.10. <u>Securities of Other Corporations</u>. The Chief Executive Officer, or, in his or her absence, the President or any Executive Vice President, shall have the power and authority to transfer, endorse for transfer, vote, consent, or take any other action with respect to any securities of another issuer that may be held or owned by the Corporation and to make, execute, and deliver any waiver, proxy, or consent with respect to any such securities.

SECTION 5.11. <u>Secretary</u>. The Secretary shall attend all sessions of the Board of Directors and all meetings of the stockholders and record all votes and the minutes of all proceedings in a book to be kept for that purpose, and shall perform like duties for committees of the Board of Directors when required. He or she shall give, or cause to be given, notice of all meetings of the stockholders and meetings of the Board of Directors, and shall perform such other duties as may be prescribed by the Board of Directors, the Chair of the Board, or the Chief Executive Officer. The Secretary shall keep in safe custody the seal of the Corporation and have authority to affix the seal to all documents requiring it and attest to the same.

SECTION 5.12. <u>Assistant Secretaries</u>. The Assistant Secretaries shall perform such duties as may be from time to time delegated to them by the Secretary. The Assistant Secretaries in the order of their seniority in office, unless otherwise determined by the Board of Directors, will, in the absence or disability of the Secretary, exercise the powers and perform the duties of the Secretary. They will have such other powers and perform such other duties as the Board of Directors may from time to time prescribe or as the President may from time-to-time delegate to them.

SECTION 5.13. <u>Treasurer</u>. Treasurer shall have the custody of the Corporation's funds and securities, except as otherwise provided by the Board of Directors, and shall keep full and accurate accounts of receipts and disbursements in records belonging to the Corporation. The Treasurer shall deposit all moneys and other valuable effects in the name and to the credit of the Corporation in such depositories as may be designated by the Board of Directors. The treasurer shall disburse the funds of the Corporation as may be ordered by the Board of Directors and in compliance with the Corporation's policies and procedures, including its internal control policies and any authorization or approval requirements established by the Board of Directors or management, taking proper vouchers for such disbursements. The Treasurer shall render to the Chief Executive Officer and the President and the directors, at the regular meetings of the Board of Directors, or whenever they may require it, an account of all his or her transactions as Treasurer and of the financial condition of the Corporation.

SECTION 5.14. <u>Assistant Treasurers</u>. The Assistant Treasurers shall perform such duties as may be from time to time delegated to them by the Treasurer. The Assistant Treasurers in the order of their seniority in office, unless otherwise determined by the Board of Directors, will, in the absence or disability of the Treasurer, exercise the powers and perform the duties of the Treasurer. They will have such other powers and perform such other duties as the Board of Directors may from time to time prescribe or as the President may from time to time delegate to them.

SECTION 5.15. <u>Bonding</u>. The Corporation may secure a bond to protect the Corporation from loss in the event of defalcation by any of the officers, which bond may be in such form and amount and with such surety as the Board of Directors may deem appropriate.

ARTICLE SIX

CERTIFICATES AND STOCKHOLDERS

SECTION 6.01. <u>Certificated and Uncertificated Shares</u>. The shares of the Corporation may be either certificated shares or uncertificated shares. As used herein, the term "certificated shares" means shares represented by instruments in bearer or registered form, and the term "uncertificated shares" means shares not represented by such instruments and the transfers of which are registered upon books maintained for that purpose by or on behalf of the Corporation.

SECTION 6.02. <u>Certificates for Certificated Shares</u>. The certificates for certificated shares of capital stock of the Corporation shall be in such form as shall be approved by the Board of Directors in conformity with law. The certificates shall be consecutively numbered, shall be entered as they are issued in the books of the Corporation or in the records of the Corporation's designated transfer agent, if any, and shall state the stockholder's name, the number of shares, and such other matters as may be required by law. The certificates shall be signed by the President or any Vice President and also by the Secretary, an Assistant Secretary, or any other officer, and may be sealed with the seal of the Corporation or a facsimile thereof. If any certificate is countersigned by a transfer agent or registered by a registrar, either of which is other than the Corporation itself or an employee of the Corporation, the signatures of the foregoing officers may be a facsimile.

SECTION 6.03. <u>Lost, Stolen, or Destroyed Certificates</u>. The Corporation shall issue a new certificate in place of any certificate for certificated shares previously issued if the registered owner of the certificate satisfies the following requirements:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) *Claim*.
 The registered owner makes proof in affidavit form that a previously issued certificate for certificated shares has been lost, destroyed,
 or stolen;

(b) *Timely Request*. The registered owner requests the issuance of a new certificate before the Corporation has notice that the certificate
 has been acquired by a purchaser for value in good faith and without notice of an adverse claim;

(c) *Bond*.
 The registered owner gives a bond in such form, and with such surety or sureties, with fixed or open penalty, as the Board of Directors
 may direct, in its discretion, to indemnify the Corporation (and its transfer agent and registrar, if any) against any claim that
 may be made on account of the alleged loss, destruction, or theft of the certificate, and

(d) *Other Requirements*. The registered owner satisfies any other reasonable requirements imposed by the Board of Directors.

When a certificate has been lost, destroyed, or stolen and the stockholder of record fails to notify the Corporation within a reasonable time after he or she has notice of it, if the Corporation registers a transfer of the shares represented by the certificate before receiving such notification, the stockholder of record is precluded from making any claim against the Corporation for the transfer or for a new certificate.

SECTION 6.04. <u>Transfer of Shares</u>. With respect to certificated shares, upon surrender to the Corporation or the transfer agent of the Corporation of a certificate representing shares duly endorsed or accompanied by proper evidence of succession, assignment, or authority to transfer, the Corporation or its agent shall issue a new certificate to the person entitled thereto, cancel the old certificate, and record the transaction upon its books. With respect to uncertificated shares, upon delivery to the Corporation of proper evidence of succession, assignment, or authority to transfer, the Corporation or its agent shall record the transaction upon its books. When a transfer of shares is requested and there is reasonable doubt as to the right of the person seeking the transfer, the Corporation or its transfer agent, before recording the transfer of the shares on its books or issuing any certificate therefor, may require from the person seeking the transfer reasonable proof of such person's right to the transfer. If there remains a reasonable doubt of the right to the transfer, the Corporation may refuse a transfer unless the person gives adequate security or a bond of indemnity executed by a corporate surety or by two individual sureties satisfactory to the Corporation as to form, amount and responsibility of sureties. The bond shall be conditioned to protect the Corporation, its officers, transfer agents and registrars, or any of them, against any loss, damage, expense or other liability to the owner of the shares by reason of the recordation of the transfer or the issuance of a new certificate for shares.

SECTION 6.05. <u>Registered stockholders</u>. The Corporation shall be entitled to treat the stockholder of record as the stockholder in fact of any shares and, accordingly, shall not be bound to recognize any equitable or other claim to or interest in such shares on the part of any other person, whether or not it shall have actual or other notice thereof, except as otherwise provided by law.

SECTION. 6.06. <u>Legends</u>. If the Corporation is authorized to issue shares of more than one class, each certificate representing shares issued by the Corporation (a) shall conspicuously set forth on the face or back of the certificate a full statement of (i) all of the designations, preferences, limitations, and relative rights of the shares of each class authorized to be issued; and (ii) if the Corporation is authorized to issue shares of any preferred or special class in series, the variations in the relative rights and preferences of the shares of each such series to the extent they have been fixed and determined and the authority of the Board of Directors to fix and determine the relative rights and preferences of subsequent series; or (b) shall conspicuously state on the face or back of the certificate that (i) such a statement is set forth in the certificate of designation related thereto on file in the office of the Secretary of State of the State of Nevada; and (ii) the Corporation will furnish a copy of such statements to the record holder of the certificate without charge upon written request to the Corporation at its principal place of business or registered office.

If the Corporation issues any shares that are not registered under the Securities Act of 1933, as amended, the transfer of any such shares shall be restricted in accordance with an appropriate legend.

In the event any restriction on the transfer, or registration of the transfer, of shares shall be imposed or agreed to by the Corporation, each certificate representing shares so restricted (a) shall conspicuously set forth a full or summary statement of the restriction on the face of the certificate; (b) shall set forth such statement on the back of the certificate and conspicuously refer to the same on the face of the certificate; or (c) shall conspicuously state on the face or back of the certificate that such a restriction exists pursuant to a specified document and (i) that the Corporation will furnish to the record holder of the certificate without charge upon written request to the Corporation at its principal place of business or registered office a copy of the specified document; or (ii) if such document is one required or permitted by law to be and has been filed, that such specified document is on file in the office of the Secretary of State of the State of Nevada and contains a full statement of such restriction.

ARTICLE SEVEN

GENERAL PROVISIONS

SECTION 7.01. <u>Dividends</u>. Subject to any restrictions of law or in the Articles of Incorporation, dividends may be declared by the Board of Directors at any meeting and may be paid in cash, in property, or in shares of capital stock of the Corporation. Such declaration and payment shall be at the discretion of the Board of Directors.

SECTION 7.02. <u>Reserves</u>. The Board of Directors may create out of funds of the Corporation legally available therefor such reserve or reserves as the Board of Directors from time to time, in its discretion, considers proper to provide for contingencies, to equalize dividends, or to repair or maintain any property of the Corporation, or for such other purpose as the Board of Directors shall consider beneficial to the Corporation. The Board of Directors may modify or abolish any such reserve in the same manner.

SECTION 7.03. <u>Indemnification and Insurance</u>. The Corporation will indemnify its directors, officers, and other persons referenced in the Articles of Incorporation to the fullest extent permitted by the NRS and may, if and to the extent authorized by the Board of Directors, so indemnify any other person whom it has the power to indemnify against liability, reasonable expenses, or any other matters whatsoever. The Corporation may, at the discretion of the Board of Directors, purchase and maintain insurance on behalf of the Corporation and any person whom it has the power to indemnify under the NRS, the Articles of Incorporation, these bylaws, or otherwise.

SECTION 7.04. <u>Books and Records</u>. The Corporation shall keep correct and complete books and records of account, shall keep minutes of the proceedings of its stockholders, Board of Directors, and any committee thereof, and shall keep at its registered office or principal place of business, or at the office of its transfer agent or registrar, a record of its stockholders, giving the names and addresses of all stockholders and the number and class of shares held by each stockholder.

SECTION 7.05. <u>Fiscal Year</u>. The fiscal year of the Corporation shall be fixed by resolution of the Board of Directors and may be changed by the Board of Directors. Absent such a resolution of the Board of Directors to the contrary, the fiscal year of the Corporation shall be the calendar year ending on December 31.

SECTION 7.06. <u>Corporate Seal.</u> The seal of the Corporation shall be in such form as shall be approved by the Board of Directors. The seal may be used by causing it or a facsimile thereof to be impressed or affixed or reproduced or otherwise, as may be prescribed by law or custom or by the Board of Directors.

SECTION 7.07. <u>Checks, Notes, Drafts, Etc</u>. All checks, notes, drafts, or other orders for the payment of money of the Corporation shall be signed, endorsed, or accepted in the name of the Corporation by such officer, officers, person, or persons as from time to time may be designated by the Board of Directors or by an officer or officers authorized by the Board of Directors to make such designation.

SECTION 7.08. <u>Resignation</u>. A director, committee member or officer may resign by so stating at any meeting of the Board of Directors or by giving written notice to the Board of Directors, the President, or the Secretary. Such resignation shall take effect at the time specified therein, or immediately if no time is specified. Unless it specifies otherwise, a resignation is effective without being accepted.

SECTION 7.09. <u>Amendment</u>. These bylaws may be adopted, amended, or repealed by the stockholders entitled to vote; provided, however, that the Corporation may, in its Articles of Incorporation, confer the power to adopt, amend, or repeal these bylaws upon the Board of Directors; and, provided further, that any proposal by a stockholder to amend these bylaws will be subject to the provisions of these bylaws except as otherwise required by law. The fact that such power has been so conferred upon the Board of Directors will not divest the stockholders of the power, nor limit their power to adopt, amend, or repeal bylaws.

SECTION 7.10. <u>Invalid Provisions</u>. If any part of these bylaws shall be held invalid or inoperative for any reason, the remaining parts, so far as possible and reasonable, shall remain valid and operative.

SECTION 7.11. <u>Headings</u>. The headings used in these bylaws are for convenience only and do not constitute matter to be construed in the interpretation of these bylaws.

## Exhibit 3.4

**Exhibit 3.4**

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## Exhibit 3.5

**Exhibit 3.5**

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## Exhibit 4.3

**Exhibit 4.3**

NEITHER THIS SECURITY NOR THE SECURITIES FOR WHICH THIS SECURITY IS EXERCISABLE HAVE BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES ACT"), AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS AS EVIDENCED BY A LEGAL OPINION OF COUNSEL TO THE TRANSFEROR TO SUCH EFFECT, THE SUBSTANCE OF WHICH SHALL BE REASONABLY ACCEPTABLE TO THE COMPANY. THIS SECURITY AND THE SECURITIES ISSUABLE UPON EXERCISE OF THIS SECURITY MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN SECURED BY SUCH SECURITIES.

**COMMON STOCK PURCHASE WARRANT**

**AMBITIOUS ENTERTAINMENT INC.**

Warrant Shares: Issue Date: April [_], 2026

THIS COMMON STOCK PURCHASE WARRANT (this "<u>Warrant</u>") certifies that, for value received, [ ] or its assigns (the "<u>Holder</u>") is entitled, upon the terms and subject to the limitations on exercise and the conditions hereinafter set forth, at any time on or after the Issue Date (the "<u>Exercise Date</u>") and on or prior to 5:00 p.m. (New York, New York time) on April 1, 2029 (the "<u>Termination Date</u>") but not thereafter, to subscribe for and purchase from Ambitious Entertainment Inc., a Nevada corporation (the "<u>Company</u>"), up to [ ] shares (as subject to adjustment hereunder, the "<u>Warrant Shares</u>") of the Company's Common Stock (as defined below). The purchase price of one share of Common Stock under this Warrant shall be equal to the Exercise Price, as defined in Section 2(b).

<u>Section 1</u>. <u>Definitions</u>. In addition to the terms defined elsewhere in this Warrant, the following terms have the meanings indicated in this Section 1 or in that certain Securities Purchase Agreement (the "<u>Purchase Agreement</u>"), dated as of April 1, 2026, among the Company and the purchasers signatory thereto:

"<u>Adjustment Period</u>" has the meaning set forth in Section 3(b).

"<u>Affiliate</u>" means any Person that, directly or indirectly through one or more intermediaries, controls or is controlled by or is under common control with a Person, as such terms are used in and construed under Rule 405 under the Securities Act.

"<u>Alternate Consideration</u>" has the meaning set forth in Section 3(e).

"<u>Applicable Price</u>" has the meaning set forth in Section 3(b).

"<u>Base Share Price</u>" has the meaning set forth in Section 3(b).

"<u>Board of Directors</u>" means the board of directors of the Company.

"<u>Business Day</u>" means any day except any Saturday, any Sunday, any day which is a federal legal holiday in the United States or other day on which banking institutions in the State of New York are authorized or required by law or other governmental action to close.

"<u>Commission</u>" means the United States Securities and Exchange Commission.

"<u>Common Stock</u>" means the common stock of the Company, par value $0.0001 per share, and any other class of securities into which such securities may hereafter be reclassified or changed.

"<u>Common Stock Equivalents</u>" means any securities of the Company or the Subsidiaries which would entitle the holder thereof to acquire at any time Common Stock, including, without limitation, any debt, preferred stock, right, option, warrant or other instrument that is at any time convertible into or exercisable or exchangeable for, or otherwise entitles the holder thereof to receive, Common Stock.

"<u>Convertible Securities</u>" has the meaning set forth in Section 3(b)(1).

"<u>Convertible Securities Shares</u>" has the meaning set forth in Section 3(b)(1).

"<u>Dilutive Issuance</u>" has the meaning set forth in Section 3(b).

"<u>Distribution</u>" has the meaning set forth in Section 3(d).

"<u>Exchange Act</u>" means the Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated thereunder.

"<u>Floor Price</u>" means a price equal to $1.00, which shall be appropriately adjusted for any stock dividend, stock split, stock combination, reclassification or similar event or transaction.

"<u>Fundamental Transaction</u>" has the meaning set forth in Section 3(e).

"<u>Nasdaq Minimum Price</u>" means the lower of: (i) the Nasdaq Official Closing Price (as reflected on Nasdaq.com) immediately preceding the execution of the Purchase Agreement, or (ii) the average Nasdaq Official Closing Price of the Common Stock (as reflected on Nasdaq.com) for the five trading days immediately preceding the signing of the Purchase Agreement.

"<u>New Exercise Price</u>" has the meaning set forth in Section 3(b).

"<u>New Issuance Price</u>" has the meaning set forth in Section 3(b).

"<u>Person</u>" means an individual or corporation, partnership, trust, incorporated or unincorporated association, joint venture, limited liability company, joint stock company, government (or an agency or subdivision thereof) or other entity of any kind.

"<u>Primary Security</u>" has the meaning set forth in Section 3(b)(4).

"<u>Purchase Rights</u>" has the meaning set forth in Section 3(c).

"<u>Rule 144</u>" means Rule 144 promulgated by the Commission pursuant to the Securities Act, as such Rule may be amended or interpreted from time to time, or any similar rule or regulation hereafter adopted by the Commission having substantially the same purpose and effect as such Rule.

"<u>Securities Act</u>" means the Securities Act of 1933, as amended, and the rules and regulations promulgated thereunder.

"<u>Subsidiary</u>" means any subsidiary of the Company required to be listed pursuant to Item 601(b)(21) of Regulation S-K.

"<u>Successor Entity</u>" has the meaning set forth in Section 3(e).

"<u>Trading Day</u>" means a day on which the principal Trading Market is open for trading.

"<u>Trading Market</u>" means any of the following markets or exchanges on which the Common Stock is listed or quoted for trading on the date in question: the NYSE American, The Nasdaq Capital Market, The Nasdaq Global Market, The Nasdaq Global Select Market, the New York Stock Exchange, OTCQB or OTCQX (or any successors to any of the foregoing).

"<u>Transfer Agent</u>" means Pacific Stock Transfer Company, the current transfer agent of the Company, and any successor transfer agent of the Company.

"<u>Unit</u>" has the meaning set forth in Section 3(b)(4).

"<u>Valuation Event</u>" has the meaning set forth in Section 3(b)(4).

<u>Section 2</u>. <u>Exercise</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) <u>Exercise of Warrant</u>. Exercise of the purchase rights represented by this Warrant may be made, in whole or in part, at any time or times on or after the Exercise Date and on or before the Termination Date by delivery to the Company of a duly executed PDF copy submitted by e-mail (or e-mail attachment) of the Notice of Exercise in the form annexed hereto as Exhibit A (the "<u>Notice of Exercise</u>"). Within the earlier of (i) first (1st) Trading Days and (ii) the number of Trading Days comprising the Standard Settlement Period (as defined in Section 2(d)(i) herein) following the date of exercise as aforesaid, the Holder shall deliver the aggregate Exercise Price for the Warrant Shares specified in the applicable Notice of Exercise by wire transfer or cashier's check drawn on a United States bank unless the cashless exercise procedure specified in Section 2(c) below is specified in the applicable Notice of Exercise. No ink-original Notice of Exercise shall be required, nor shall any medallion guarantee (or other type of guarantee or notarization) of any Notice of Exercise be required. Notwithstanding anything herein to the contrary, the Holder shall not be required to physically surrender this Warrant to the Company until the Holder has purchased all of the Warrant Shares available hereunder and the Warrant has been exercised in full, in which case, the Holder shall surrender this Warrant to the Company for cancellation within three (3) Trading Days of the date on which the final Notice of Exercise is delivered to the Company. Partial exercises of this Warrant resulting in purchases of a portion of the total number of Warrant Shares available hereunder shall have the effect of lowering the outstanding number of Warrant Shares purchasable hereunder in an amount equal to the applicable number of Warrant Shares purchased. The Holder and the Company shall maintain records showing the number of Warrant Shares purchased and the date of such purchases. The Company shall deliver any objection to any Notice of Exercise within one (1) Trading Day of receipt of such notice. **The Holder and any assignee, by acceptance of this Warrant, acknowledge and agree that, by reason of the provisions of this paragraph, following the purchase of a portion of the Warrant Shares hereunder, the number of Warrant Shares available for purchase hereunder at any given time may be less than the amount stated on the face hereof.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) <u>Exercise Price</u>. The exercise price per share of Common Stock under this Warrant shall be $4.50, subject to adjustment hereunder (the "<u>Exercise Price</u>").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c) <u>Cashless Exercise</u>. If at any time after the Exercise Date, there is no effective registration statement registering, as required pursuant to the terms and conditions of any registration rights agreement, if applicable, or the prospectus contained therein is not available for the resale of the Warrant Shares by the Holder, then this Warrant may also be exercised, in whole or in part, at such time by means of a "cashless exercise" in which the Holder shall be entitled to receive a number of Warrant Shares equal to the quotient obtained by dividing [(A-B) (X)] by (A), where:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) = as applicable: (i) the VWAP
 on the Trading Day immediately preceding the date of the applicable Notice of Exercise if such Notice of Exercise is (1) both executed
 and delivered pursuant to Section 2(a) hereof on a day that is not a Trading Day or (2) both executed and delivered pursuant to Section
 2(a) hereof on a Trading Day prior to the opening of "regular trading hours" (as defined in Rule 600(b) of Regulation NMS
 promulgated under the federal securities laws) on such Trading Day, (ii) at the option of the Holder, either (y) the VWAP on the Trading
 Day immediately preceding the date of the applicable Notice of Exercise or (z) the Bid Price of the Common Stock on the principal Trading
 Market as reported by Bloomberg L.P. (" <u>Bloomberg</u> ") as of the time of the Holder's execution of the applicable
 Notice of Exercise if such Notice of Exercise is executed during "regular trading hours" on a Trading Day and is delivered
 within two (2) hours thereafter (including until two (2) hours after the close of "regular trading hours" on a Trading
 Day) pursuant to Section 2(a) hereof or (iii) the VWAP on the date of the applicable Notice of Exercise if the date of such Notice
 of Exercise is a Trading Day and such Notice of Exercise is both executed and delivered pursuant to Section 2(a) hereof after the close
 of "regular trading hours" on such Trading Day;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) the Exercise Price of this
 Warrant, as adjusted hereunder; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(X) = the number of Warrant Shares
 that would be issuable upon exercise of this Warrant in accordance with the terms of this Warrant if such exercise were by means of
 a cash exercise rather than a cashless exercise.

"<u>VWAP</u>" means, for any date, the price determined by the first of the following clauses that applies: (a) if the Common Stock is then listed or quoted on a Trading Market, the daily volume weighted average price of the Common Stock for such date (or the nearest preceding date) on the Trading Market on which the Common Stock is then listed or quoted as reported by Bloomberg L.P. (based on a Trading Day from 9:30 a.m. (New York, New York time) to 4:02 p.m. (New York, New York time)), (b) if OTCQB or OTCQX is not a Trading Market, the volume weighted average price of the Common Stock for such date (or the nearest preceding date) on OTCQB or OTCQX as applicable, (c) if the Common Stock is not then listed or quoted for trading on OTCQB or OTCQX and if prices for the Common Stock are then reported on The Pink Open Market (or a similar organization or agency succeeding to its functions of reporting prices), the most recent bid price per share of the Common Stock so reported, or (d) in all other cases, the fair market value of a share of Common Stock as determined by an independent appraiser selected in good faith by the Holders of a majority in interest of the Securities then outstanding and reasonably acceptable to the Company, the fees and expenses of which shall be paid by the Company.

If Warrant Shares are issued in such a cashless exercise, the parties hereto acknowledge and agree that in accordance with Section 3(a)(9) of the Securities Act, the Warrant Shares shall take on the characteristics of the Warrants being exercised, and the holding period of the Warrant Shares being issued may be tacked on to the holding period of this Warrant. Assuming (i) the Holder is not an Affiliate of the Company, and (ii) either (A) all of the applicable conditions of Rule 144 promulgated under the Securities Act with respect to Holder and the Warrant Shares are met in the case of such a cashless exercise or (B) the sale of the Warrant Shares is covered by an effective registration statement and the prospectus is current, the Company agrees that the Company will cause the removal of the legend from such Warrant Shares (including by delivering an opinion of the Company's counsel to the Company's transfer agent at its own expense to ensure the foregoing), and the Company agrees that the Holder is under no obligation to sell the Warrant Shares issuable upon the exercise of the Warrant prior to removing the legend. The Company agrees not to take any position contrary to this Section 2(c).

Notwithstanding anything herein to the contrary, in the event that, on the Termination Date, there is no effective registration statement registering the sale of, or no current prospectus available for the issuance of, the Warrant Shares to the Holder, this Warrant shall be automatically exercised via cashless exercise pursuant to this Section 2(c) on such Termination Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d) <u>Mechanics of Exercise</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. <u>Delivery of Warrant Shares Upon Exercise</u>. The Company shall cause the Warrant Shares purchased hereunder to be transmitted by the Transfer Agent to the Holder by crediting the account of the Holder's or its designee's balance account with The Depository Trust Company through its Deposit or Withdrawal at Custodian system ("<u>DWAC</u>") if the Company is then a participant in such system and either (A) there is an effective registration statement permitting the issuance of the Warrant Shares to or resale of the Warrant Shares by the Holder or (B) the Warrant Shares are eligible for resale by the Holder without volume or manner-of-sale limitations pursuant to Rule 144 (assuming cashless exercise of the Warrants), and otherwise by physical delivery of a certificate or book-entry statement, registered in the Company's share register in the name of the Holder or its designee, for the number of Warrant Shares to which the Holder is entitled pursuant to such exercise to the address specified by the Holder in the Notice of Exercise by the date that is the earliest of (i) two (2) Trading Days after the delivery to the Company of the Notice of Exercise, (ii) one (1) Trading Day after delivery of the aggregate Exercise Price to the Company and (iii) the number of Trading Days comprising the Standard Settlement Period after the delivery to the Company of the Notice of Exercise (such date, the "<u>Warrant Share Delivery Date</u>"). Upon delivery of the Notice of Exercise, the Holder shall be deemed for all corporate purposes to have become the holder of record of the Warrant Shares with respect to which this Warrant has been exercised, irrespective of the date of delivery of the Warrant Shares, provided that payment of the aggregate Exercise Price (other than in the case of a cashless exercise) is received by the Warrant Share Delivery Date. Notwithstanding anything herein to the contrary, upon delivery of the Notice of Exercise, the Holder shall be deemed for purposes of Regulation SHO under the Exchange Act to have become the holder of the Warrant Shares irrespective of the date of delivery of the Warrant Shares. If the Company fails for any reason to deliver to the Holder the Warrant Shares subject to a Notice of Exercise by the Warrant Share Delivery Date, the Company shall pay to the Holder, in cash, as liquidated damages and not as a penalty, for each $1,000 of Warrant Shares subject to such exercise (based on the VWAP of the Common Stock on the date of the applicable Notice of Exercise), $10 per Trading Day (increasing to $20 per Trading Day on the third Trading Day after the Warrant Share Delivery Date) for each Trading Day after such Warrant Share Delivery Date until such Warrant Shares are delivered or Holder rescinds such exercise. The Company agrees to maintain a transfer agent that is a participant in the FAST program so long as this Warrant remains outstanding and exercisable. As used herein, "<u>Standard Settlement Period</u>" means the standard settlement period, expressed in a number of Trading Days, on the Company's primary Trading Market with respect to the Common Stock as in effect on the date of delivery of the Notice of Exercise.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii. <u>Delivery of New Warrants Upon Exercise</u>. If this Warrant shall have been exercised in part, the Company shall, at the request of a Holder and upon surrender of this Warrant certificate, at the time of delivery of the Warrant Shares, deliver to the Holder a new Warrant evidencing the rights of the Holder to purchase the unpurchased Warrant Shares called for by this Warrant, which new Warrant shall in all other respects be identical with this Warrant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iii. <u>Rescission Rights</u>. If the Company fails to cause the Transfer Agent to transmit to the Holder the Warrant Shares pursuant to Section 2(d)(i) by the Warrant Share Delivery Date, then the Holder will have the right to rescind such exercise; provided, however, that the Holder shall be required to return any Warrant Shares subject to any such rescinded exercise notice concurrently with the return to Holder of the aggregate Exercise Price paid to the Company for such Warrant Shares and the restoration of Holder's right to acquire such Warrant Shares pursuant to this Warrant (including, issuance of a replacement warrant certificate evidencing such restored right).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iv. <u>Compensation for Buy-In on Failure to Timely Deliver Warrant Shares Upon Exercise</u>. In addition to any other rights available to the Holder, if the Company fails to cause the Transfer Agent to transmit to the Holder the Warrant Shares in accordance with the provisions of Section 2(d)(i) above pursuant to an exercise on or before the Warrant Share Delivery Date, and if after such date the Holder is required by its broker to purchase (in an open market transaction or otherwise) or the Holder's brokerage firm otherwise purchases, shares of Common Stock to deliver in satisfaction of a sale by the Holder of the Warrant Shares which the Holder anticipated receiving upon such exercise (a "<u>Buy-In</u>"), then the Company shall (A) pay in cash to the Holder the amount, if any, by which (x) the Holder's total purchase price (including brokerage commissions, if any) for the shares of Common Stock so purchased exceeds (y) the amount obtained by multiplying (1) the number of Warrant Shares that the Company was required to deliver to the Holder in connection with the exercise at issue times (2) the price at which the sell order giving rise to such purchase obligation was executed, and (B) at the option of the Holder, either reinstate the portion of the Warrant and equivalent number of Warrant Shares for which such exercise was not honored and return any amount received by the Company in respect of the Exercise Price for those Warrant Shares (in which case such exercise shall be deemed rescinded) or deliver to the Holder the number of shares of Common Stock that would have been issued had the Company timely complied with its exercise and delivery obligations hereunder. For example, if the Holder purchases Common Stock having a total purchase price of $11,000 to cover a Buy-In with respect to an attempted exercise of shares of Common Stock with an aggregate sale price giving rise to such purchase obligation of $10,000, under clause (A) of the immediately preceding sentence the Company shall be required to pay the Holder $1,000. The Holder shall provide the Company written notice indicating the amounts payable to the Holder in respect of the Buy-In and, upon request of the Company, evidence of the amount of such loss. Nothing herein shall limit a Holder's right to pursue any other remedies available to it hereunder, at law or in equity including, without limitation, a decree of specific performance and/or injunctive relief with respect to the Company's failure to timely deliver shares of Common Stock upon exercise of the Warrant as required pursuant to the terms hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;v. <u>No Fractional Shares or Scrip</u>. No fractional shares or scrip representing fractional shares shall be issued upon the exercise of this Warrant. As to any fraction of a share which the Holder would otherwise be entitled to purchase upon such exercise, the Company shall, at its election, either pay a cash adjustment in respect of such final fraction in an amount equal to such fraction multiplied by the Exercise Price or round up to the next whole share.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;vi. <u>Charges, Taxes and Expenses</u>. Issuance of Warrant Shares shall be made without charge to the Holder for any issue or transfer tax or other incidental expense in respect of the issuance of such Warrant Shares, all of which taxes and expenses shall be paid by the Company, and such Warrant Shares shall be issued in the name of the Holder or in such name or names as may be directed by the Holder; <u>provided</u>, <u>however</u>, that in the event that Warrant Shares are to be issued in a name other than the name of the Holder, this Warrant when surrendered for exercise shall be accompanied by the Assignment Form attached hereto, duly executed by the Holder and the Company may require, as a condition thereto, the payment of a sum sufficient to reimburse it for any transfer tax incidental thereto. The Company shall pay all Transfer Agent fees required for same-day processing of any Notice of Exercise and all fees to the Depository Trust Company (or another established clearing corporation performing similar functions) required for same-day electronic delivery of the Warrant Shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;vii. <u>Closing of Books</u>. The Company will not close its stockholder books or records in any manner which prevents the timely exercise of this Warrant, pursuant to the terms hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e) <u>Holder's Exercise Limitations</u>. The Company shall not effect any exercise of this Warrant, and a Holder shall not have the right to exercise any portion of this Warrant, pursuant to Section 2 or otherwise, to the extent that after giving effect to such issuance after exercise as set forth on the applicable Notice of Exercise, the Holder (together with the Holder's Affiliates, and any other Persons acting as a group together with the Holder or any of the Holder's Affiliates (such Persons, "<u>Attribution Parties</u>")), would beneficially own in excess of the Beneficial Ownership Limitation (as defined below). For purposes of the foregoing sentence, the number of shares of Common Stock beneficially owned by the Holder and its Affiliates and Attribution Parties shall include the number of shares of Common Stock issuable upon exercise of this Warrant with respect to which such determination is being made, but shall exclude the number of shares of Common Stock which would be issuable upon (i) exercise of the remaining, nonexercised portion of this Warrant beneficially owned by the Holder or any of its Affiliates or Attribution Parties and (ii) exercise or conversion of the unexercised or nonconverted portion of any other securities of the Company (including, without limitation, any other Common Stock Equivalents) subject to a limitation on conversion or exercise analogous to the limitation contained herein beneficially owned by the Holder or any of its Affiliates or Attribution Parties. Except as set forth in the preceding sentence, for purposes of this Section 2(e), beneficial ownership shall be calculated in accordance with Section 13(d) of the Exchange Act and the rules and regulations promulgated thereunder, it being acknowledged by the Holder that the Company is not representing to the Holder that such calculation is in compliance with Section 13(d) of the Exchange Act and the Holder is solely responsible for any schedules required to be filed in accordance therewith. To the extent that the limitation contained in this Section 2(e) applies, the determination of whether this Warrant is exercisable (in relation to other securities owned by the Holder together with any Affiliates and Attribution Parties) and of which portion of this Warrant is exercisable shall be in the sole discretion of the Holder, and the submission of a Notice of Exercise shall be deemed to be the Holder's determination of whether this Warrant is exercisable (in relation to other securities owned by the Holder together with any Affiliates and Attribution Parties) and of which portion of this Warrant is exercisable, in each case subject to the Beneficial Ownership Limitation, and the Company shall have no obligation to verify or confirm the accuracy of such determination. In addition, a determination as to any group status as contemplated above shall be determined in accordance with Section 13(d) of the Exchange Act and the rules and regulations promulgated thereunder. For purposes of this Section 2(e), in determining the number of outstanding shares of Common Stock, a Holder may rely on the number of outstanding shares of Common Stock as reflected in (A) the Company's most recent periodic or annual report filed with the Commission, as the case may be, (B) a more recent public announcement by the Company or (C) a more recent written notice by the Company or the Transfer Agent setting forth the number of shares of Common Stock outstanding. Upon the written or oral request of a Holder, the Company shall within one (1) Trading Day confirm orally and in writing to the Holder the number of shares of Common Stock then outstanding. In any case, the number of outstanding shares of Common Stock shall be determined after giving effect to the conversion or exercise of securities of the Company, including this Warrant, by the Holder or its Affiliates or Attribution Parties since the date as of which such number of outstanding shares of Common Stock was reported. The "<u>Beneficial Ownership Limitation</u>" shall be 4.99% of the number of shares of the Common Stock outstanding immediately after giving effect to the issuance of shares of Common Stock issuable upon exercise of this Warrant. The limitations contained in this paragraph shall apply to a successor holder of this Warrant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;f) <u>Issuance Limitation</u>. The limitations contained in this paragraph shall apply to a successor holder of this Warrant. Notwithstanding the foregoing and for avoidance of doubt, to comply with the rules of The Nasdaq Stock Market LLC, the Company shall not effect any exercise of this Warrant, and a Holder shall not have the right to exercise any portion of this Warrant, to the to the extent that after giving effect to such issuance after exercise as set forth on the applicable Notice of Exercise such Holder or any of its affiliates would beneficially own in excess of 19.99% of the Common Stock or such lesser percentage required by The Nasdaq Stock Market LLC without first obtaining stockholder approval in accordance with the listing rules of The Nasdaq Stock Market LLC.

<u>Section 3</u>. <u>Certain Adjustments</u>. Notwithstanding anything to the contrary in this Warrant, the adjustment provisions of this Warrant are subject to the Nasdaq Minimum Price.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) <u>Stock Dividends and Splits</u>. If the Company, at any time while this Warrant is outstanding: (i) pays a stock dividend or otherwise makes a distribution or distributions on shares of its Common Stock or any other equity or equity equivalent securities payable in shares of Common Stock (which, for avoidance of doubt, shall not include any shares of Common Stock issued by the Company upon exercise of this Warrant), (ii) subdivides outstanding shares of Common Stock into a larger number of shares, (iii) combines (including by way of reverse stock split) outstanding shares of Common Stock into a smaller number of shares, or (iv) issues by reclassification of shares of the Common Stock any shares of capital stock of the Company, then in each case the Exercise Price shall be multiplied by a fraction of which the numerator shall be the number of shares of Common Stock (excluding treasury shares, if any) outstanding immediately before such event and of which the denominator shall be the number of shares of Common Stock outstanding immediately after such event, and the number of shares issuable upon exercise of this Warrant shall be proportionately adjusted such that the aggregate Exercise Price of this Warrant shall remain unchanged. Any adjustment made pursuant to this Section 3(a) shall become effective immediately after the record date for the determination of stockholders entitled to receive such dividend or distribution and shall become effective immediately after the effective date in the case of a subdivision, combination or re-classification.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) <u>Subsequent Equity Sales</u>. If, at any time while this Warrant is outstanding (such period, the "<u>Adjustment Period</u>"), the Company issues, sells, enters into an agreement to sell, or grants any option to purchase, or sells, enters into an agreement to sell, or grants any right to reprice, or otherwise disposes of or issues (or announces any offer, sale, grant, or any option to purchase or other disposition), or, in accordance with this Section 3(b), is deemed to have issued or sold, any shares of Common Stock or Common Stock Equivalents for a consideration per share (the "<u>New Issuance Price</u>") less than a price equal to the Exercise Price in effect immediately prior to such issue or sale or deemed issuance or sale (such Exercise Price then in effect is referred to as the "<u>Applicable Price</u>") (the foregoing, a "<u>Dilutive Issuance</u>"), then simultaneously with the consummation (or, if earlier, the announcement) of such Dilutive Issuance, the Exercise Price then in effect shall be reduced to an amount (the "<u>New Exercise Price</u>") equal to the lower of (A) the New Issuance Price and (B) the lowest VWAP during the five (5) consecutive Trading Days immediately following the Dilutive Issuance (such lower price, the "<u>Base Share Price</u>"); provided that the Base Share Price shall not be less than the Floor Price. If the Company enters into a Variable Rate Transaction (as defined in the Purchase Agreement); *provided, that*, with respect to a Variable Rate Transaction that is an equity line of credit or an "at-the-market offering", this Section 3(b) shall apply to any issuances of Common Stock or Common Stock Equivalents thereunder rather than the entry into the agreement with respect thereto), the Company shall be deemed to have issued shares of Common Stock or Common Stock Equivalents at the lowest possible price, conversion price, or exercise price at which such securities may be issued, converted, or exercised. For the avoidance of doubt, in the event the Exercise Price has been adjusted pursuant to this Section 3(b) and the Dilutive Issuance that triggered such adjustment does not occur, is not consummated, is unwound, or is canceled after the facts for any reason whatsoever, in no event shall the Exercise Price be readjusted to the Exercise Price that would have been in effect if such Dilutive Issuance had not occurred or been consummated. For all purposes of the foregoing, the following shall be applicable:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) <u>Issuance of Options</u>. If, during the Adjustment Period, the Company in any manner grants or sells any Options and the lowest price per share for which one share of Common Stock is issuable upon the exercise of any such Option or upon conversion, exercise, or exchange of any convertible securities ("<u>Convertible Securities</u>") issuable upon exercise of any such Option (such shares of Common Stock issuable upon such exercise of any Option or upon conversion, exercise, or exchange of any Convertible Securities, the "<u>Convertible Securities Shares</u>") is less than the Applicable Price, then such shares of Common Stock shall be deemed to be outstanding and to have been issued and sold by the Company at the time of the granting or sale of such Option for such price per share. For purposes of this Section 3(i)(1), the "lowest price per share for which one share of Common Stock is issuable upon the exercise of any such Option or upon conversion, exercise, or exchange of any Convertible Securities issuable upon exercise of any such Option" shall be equal to (A) the sum of (1) the lowest amount of consideration (if any) received or receivable by the Company with respect to any one Convertible Securities Share upon the granting or sale of such Option, upon exercise of such Option and upon conversion, exercise, or exchange of any Convertible Security issuable upon exercise of such Option and (2) the lowest exercise price set forth in such Option for which one Convertible Securities Share is issuable upon the exercise of any such Option or upon conversion, exercise, or exchange of any Convertible Securities issuable upon exercise of any such Option, minus (B) the sum of all amounts paid or payable to the holder of such Option (or any other Person), with respect to any one Convertible Securities Share, upon the granting or sale of such Option, upon exercise of such Option and upon conversion, exercise, or exchange of any Convertible Security issuable upon exercise of such Option plus the value of any other consideration received or receivable by, or benefit conferred on, the holder of such Option (or any other Person), with respect to any one Convertible Securities Share. Except as contemplated below, no further adjustment of the Exercise Price shall be made upon the actual issuance of such Convertible Securities Share or of such Convertible Securities upon the exercise of such Options or upon the actual issuance of such Convertible Securities Share upon conversion, exercise, or exchange of such Convertible Securities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) <u>Issuance of Convertible Securities</u>. If, during the Adjustment Period, the Company in any manner issues or sells any Convertible Securities and the lowest price per share for which one Convertible Securities Share is issuable upon the conversion, exercise, or exchange thereof is less than the Applicable Price, then such Convertible Securities Share shall be deemed to be outstanding and to have been issued and sold by the Company at the time of the issuance or sale of such Convertible Securities for such price per share. For the purposes of this Section 3(b)(2), the "lowest price per share for which one Convertible Securities Share is issuable upon the conversion, exercise or exchange thereof" shall be equal to (A) the sum of (1) the lowest amount of consideration (if any) received or receivable by the Company with respect to one Convertible Securities Share upon the issuance or sale of the Convertible Security and upon conversion, exercise, or exchange of such Convertible Security and (2) the lowest conversion price set forth in such Convertible Security for which one Convertible Securities Share is issuable upon conversion, exercise, or exchange thereof, minus (B) the sum of all amounts paid or payable to the holder of such Convertible Security (or any other Person), with respect to any one Convertible Securities Share, upon the issuance or sale of such Convertible Security plus the value of any other consideration received or receivable by, or benefit conferred on, the holder of such Convertible Security (or any other Person), with respect to any one Convertible Securities Share. Except as contemplated below, no further adjustment of the Exercise Price shall be made upon the actual issuance of such Convertible Securities Share upon conversion, exercise, or exchange of such Convertible Securities, and if any such issue or sale of such Convertible Securities is made upon exercise of any Options for which adjustment of the Exercise Price has been or is to be made pursuant to other provisions of this Section 3(b)(2), except as contemplated below, no further adjustment of the Exercise Price shall be made by reason of such issue or sale.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) <u>Change in Option Price or Rate of Conversion</u>. If, during the Adjustment Period, the purchase or exercise price provided for in any Options, the additional consideration, if any, payable upon the issue, conversion, exercise, or exchange of any Convertible Securities, or the rate at which any Convertible Securities are convertible into or exercisable or exchangeable for shares of Common Stock increases or decreases at any time (other than proportional changes in conversion or exercise prices, as applicable, in connection with an event referred to in Section 3(a), the Exercise Price in effect at the time of such increase or decrease shall be adjusted to the Exercise Price which would have been in effect at such time had such Options or Convertible Securities provided for such increased or decreased purchase price, additional consideration or increased or decreased conversion rate, as the case may be, at the time initially granted, issued, or sold. For purposes of this Section 3(i)(3), if the terms of any Option or Convertible Security that was outstanding as of the date of issuance of this Warrant are increased or decreased in the manner described in the immediately preceding sentence, then such Option or Convertible Security and the Convertible Securities Share deemed issuable upon exercise, conversion, or exchange thereof shall be deemed to have been issued as of the date of such increase or decrease. No adjustment pursuant to this Section 3(i)(3) shall be made if such adjustment would result in an increase of the Exercise Price then in effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) <u>Calculation of Consideration Received</u>. If any Option or Convertible Security is issued in connection with the issuance or sale or deemed issuance or sale of any other securities of the Company (the "<u>Primary Security</u>," and such Option or Convertible Security, the "Secondary Securities" and together with the Primary Security, each a "<u>Unit</u>"), together comprising one integrated transaction, the aggregate consideration per share with respect to such Primary Security shall be deemed to be the lowest of (x) the purchase price of such Unit, (y) if such Primary Security is an Option and/or Convertible Security, the lowest price per share for which one share of Common Stock is at any time issuable upon the exercise or conversion of the Primary Security in accordance with Section 3(i)(1) or 3(i)(2) above and (z) the lowest VWAP of the shares of Common Stock on any Trading Day during the five (5) consecutive Trading Days immediately following the consummation (or, if applicable, the announcement) of such Dilutive Issuance (for the avoidance of doubt, if such public announcement, if applicable, is released prior to the opening of the Principal Market on a Trading Day, such Trading Day shall be the first Trading Day in such five (5) Trading Day period and if this Warrant is exercised on any given Exercise Date during any such period, the Holder may elect to earlier end such period (including, solely with respect to such portion of this Warrant exercised on such applicable Exercise Date)). If any shares of Common Stock, Options, or Convertible Securities are issued or sold or deemed to have been issued or sold for cash, the consideration received therefor will be deemed to be the net amount of cash received by the Company therefor. If any shares of Common Stock, Options, or Convertible Securities are issued or sold for a consideration other than cash, the amount of such consideration received by the Company will be the fair value of such consideration, except where such consideration consists of publicly traded securities, in which case the amount of consideration received by the Company for such securities will be the arithmetic average of the VWAPs of such security for each of the five (5) Trading Days immediately preceding the date of receipt. If any shares of Common Stock, Options, or Convertible Securities are issued to the owners of the non-surviving entity in connection with any merger in which the Company is the surviving entity, the amount of consideration therefor will be deemed to be the fair market value of such portion of the net assets and business of the non-surviving entity as is attributable to such shares of Common Stock, Options or Convertible Securities (as the case may be). The fair market value of any consideration other than cash or publicly traded securities will be determined jointly by the Company and the Holder. If such parties are unable to reach agreement within ten (10) days after the occurrence of an event requiring valuation (the "<u>Valuation Event</u>"), the fair market value of such consideration will be determined within five (5) Trading Days after the tenth (10th) day following such Valuation Event by an independent, reputable appraiser jointly selected by the Company and the Holder. The determination of such appraiser shall be final and binding upon all parties absent manifest error and the fees and expenses of such appraiser shall be borne by the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5) <u>Record Date</u>. If, during the Adjustment Period, the Company takes a record of stockholders for the purpose of entitling them (A) to receive a dividend or other distribution payable in shares of Common Stock, Options, or in Convertible Securities or (B) to subscribe for or purchase shares of Common Stock, Options, or Convertible Securities, then such record date will be deemed to be the date of the issue or sale of shares of Common Stock deemed to have been issued or sold upon the declaration of such dividend or the making of such other distribution or the date of the granting of such right of subscription or purchase (as the case may be).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c) <u>Subsequent Rights Offerings</u>. In addition to any adjustments pursuant to Section 3(a) above, if at any time the Company grants, issues or sells any Common Stock Equivalents or rights to purchase stock, warrants, securities or other property pro rata to the record holders of any class of shares of Common Stock (the "<u>Purchase Rights</u>"), then the Holder will be entitled to acquire, upon the terms applicable to such Purchase Rights, the aggregate Purchase Rights which the Holder could have acquired if the Holder had held the number of shares of Common Stock acquirable upon complete exercise of this Warrant (without regard to any limitations on exercise hereof, including without limitation, the Beneficial Ownership Limitation) immediately before the date on which a record is taken for the grant, issuance or sale of such Purchase Rights, or, if no such record is taken, the date as of which the record holders of shares of Common Stock are to be determined for the grant, issue or sale of such Purchase Rights (<u>provided</u>, <u>however</u>, that to the extent that the Holder's right to participate in any such Purchase Right would result in the Holder exceeding the Beneficial Ownership Limitation, then the Holder shall not be entitled to participate in such Purchase Right to such extent (or beneficial ownership of such shares of Common Stock as a result of such Purchase Right to such extent) and such Purchase Right to such extent shall be held in abeyance for the Holder until such time, if ever, as its right thereto would not result in the Holder exceeding the Beneficial Ownership Limitation).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d) <u>Pro Rata Distributions</u>. During such time as this Warrant is outstanding, if the Company shall declare or make any dividend or other distribution of its assets (or rights to acquire its assets) to holders of shares of Common Stock, by way of return of capital or otherwise (including, without limitation, any distribution of cash, stock or other securities, property or options by way of a dividend, spin off, reclassification, corporate rearrangement, scheme of arrangement or other similar transaction) (a "<u>Distribution</u>"), at any time after the issuance of this Warrant, then, in each such case, the Holder shall be entitled to participate in such Distribution to the same extent that the Holder would have participated therein if the Holder had held the number of shares of Common Stock acquirable upon complete exercise of this Warrant (without regard to any limitations on exercise hereof, including without limitation, the Beneficial Ownership Limitation) immediately before the date of which a record is taken for such Distribution, or, if no such record is taken, the date as of which the record holders of shares of Common Stock are to be determined for the participation in such Distribution (<u>provided</u>, <u>however</u>, that to the extent that the Holder's right to participate in any such Distribution would result in the Holder exceeding the Beneficial Ownership Limitation, then the Holder shall not be entitled to participate in such Distribution to such extent (or in the beneficial ownership of any shares of Common Stock as a result of such Distribution to such extent) and the portion of such Distribution shall be held in abeyance for the benefit of the Holder until such time, if ever, as its right thereto would not result in the Holder exceeding the Beneficial Ownership Limitation). To the extent that this Warrant has not been partially or completely exercised at the time of such Distribution, such portion of the Distribution shall be held in abeyance for the benefit of the Holder until the Holder has exercised this Warrant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e) <u>Fundamental Transaction</u>. If, at any time while the Warrants are outstanding:

1) the Company, directly or indirectly, in one or more related transactions effects any merger or consolidation of the Company with or into another person;

2) the Company, directly or indirectly, effects any sale, lease, license, assignment, transfer, conveyance or other disposition of all or substantially all of its assets in one or a series of related transactions;

3) any direct or indirect purchase offer, tender offer or exchange offer (whether by the Company or another person) is completed pursuant to which holders of shares of Common Stock are permitted to sell, tender or exchange their shares for other securities, cash or property and has been accepted by the holders of 50% or more of the Company's shares of Common Stock or 50% or more of the total voting power of the Company's shares of Common Stock;

4) the Company, directly or indirectly, in one or more related transactions effects any reclassification, reorganization or recapitalization of shares of Common Stock or any compulsory share exchange pursuant to which the shares of Common Stock are effectively converted into or exchanged for other securities, cash or property; or

5) the Company, directly or indirectly, in one or more related transactions consummates a stock or share purchase agreement or other business combination (including, without limitation, a reorganization, recapitalization, spin-off or scheme of arrangement) with another person or group of persons whereby such other person or group acquires 50% or more of the Company's shares of Common Stock or 50% or more of the total voting power of the Company's shares of Common Stock (each a "<u>Fundamental Transaction</u>");

then, upon any subsequent exercise of a Warrant, the Holder shall have the right to receive, for each share of Common Stock that would have been issuable upon such exercise immediately prior to the occurrence of such Fundamental Transaction, at the option of the Holder, the number of shares of capital stock of the successor or acquiring corporation or of the Company, if it is the surviving corporation, or depositary shares representing those shares, and any additional consideration (the "<u>Alternate Consideration</u>") receivable as a result of such Fundamental Transaction by a holder of the number of shares of Common Stock for which this Warrant is exercisable immediately prior to such Fundamental Transaction (without regard to any limitations on exercise hereof, including without limitation, the Beneficial Ownership Limitation). For purposes of any such exercise, the determination of the Exercise Price shall be appropriately adjusted to apply to such Alternate Consideration based on the amount of Alternate Consideration issuable in respect of one share of Common Stock in such Fundamental Transaction and the Company shall apportion the Exercise Price among the Alternate Consideration in a reasonable manner reflecting the relative value of any different components of the Alternate Consideration. If holders of Common Stock are given any choice as to the securities, cash or property to be received in a Fundamental Transaction, then the Holder shall be given the same choice as to the Alternate Consideration it receives upon any exercise of this Warrant following such Fundamental Transaction.

The Company shall cause any successor entity in a Fundamental Transaction in which the Company is not the survivor (the "<u>Successor Entity</u>"), to assume in writing all of the obligations of the Company under this Warrant in accordance with the provisions of this Section 3(e) pursuant to written agreements in form reasonably satisfactory to the Holder and approved by the Holder (without unreasonable delay) prior to such Fundamental Transaction and shall, at the option of the Holder, deliver to such Holder in exchange for this Warrant a security of the Successor Entity evidenced by a written instrument substantially similar in form and substance to this Warrant that is exercisable for a corresponding number of shares of capital stock of such Successor Entity (or its parent entity) equivalent to the shares of Common Stock acquirable and receivable upon exercise of this Warrant (without regard to any limitations on the exercise of this Warrant) prior to such Fundamental Transaction and with an exercise price which applies the exercise price hereunder to such shares of capital stock (but taking into account the relative value of the shares of Common Stock prior to such Fundamental Transaction and the value of such shares of capital stock, such number of shares of capital stock and such exercise price being for the purpose of protecting the economic value this Warrant had immediately prior to the consummation of such Fundamental Transaction). Upon the occurrence of any such Fundamental Transaction, the Successor Entity shall be added to the term "Company" under this Warrant (so that from and after the date of such Fundamental Transaction, the provisions of this Warrant referring to the "Company" shall refer instead to each of the Company and the Successor Entity or Successor Entities, jointly and severally with the Company), and may exercise every right and power of the Company prior thereto and the Successor Entity or Successor Entities shall assume all of the obligations of the Company prior thereto under this Warrant with the same effect as if the Company and such Successor Entity or Successor Entities, jointly and severally, had been named as the Company herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;f) <u>Calculations</u>. All calculations under this Section 3 shall be made to the nearest cent or the nearest 1/100th of a share, as the case may be. For purposes of this Section 3, the number of shares of Common Stock deemed to be issued and outstanding as of a given date shall be the sum of the number of shares of Common Stock (excluding treasury shares, if any) issued and outstanding. For the avoidance of doubt, the Holder shall be entitled to the benefits of the provisions of this Section 3(e) regardless of (i) whether the Company has sufficient authorized shares of Common Stock for the issuance of Warrant Shares and/or (ii) whether a Fundamental Transaction occurs prior to the Exercise Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;g) Notice
 to Holder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. Adjustment to Exercise Price. Whenever the Exercise Price is adjusted pursuant to any provision of this Section 3, the Company shall promptly deliver to the Holder by email a notice setting forth the Exercise Price after such adjustment and any resulting adjustment to the number of Warrant Shares and setting forth a brief statement of the facts requiring such adjustment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii. <u>Notice to Allow Exercise by Holder</u>. If (A) the Company shall declare a dividend (or any other distribution in whatever form) on the Common Stock, (B) the Company shall declare a special nonrecurring cash dividend on or a redemption of the Common Stock, (C) the Company shall authorize the granting to all holders of the Common Stock rights or warrants to subscribe for or purchase any shares of capital stock of any class or of any rights, (D) the approval of any stockholders of the Company shall be required in connection with any reclassification of the Common Stock, any consolidation or merger to which the Company is a party, any sale or transfer of all or substantially all of the assets of the Company, or any compulsory share exchange whereby the Common Stock is converted into other securities, cash or property, or (E) the Company shall authorize the voluntary or involuntary dissolution, liquidation or winding up of the affairs of the Company, then, in each case, the Company shall cause to be delivered by email to the Holder at its last email address as it shall appear upon the Warrant Register of the Company, at least 20 calendar days prior to the applicable record or effective date hereinafter specified, a notice stating (x) the date on which a record is to be taken for the purpose of such dividend, distribution, redemption, rights or warrants, or if a record is not to be taken, the date as of which the holders of the Common Stock of record to be entitled to such dividend, distributions, redemption, rights or warrants are to be determined or (y) the date on which such reclassification, consolidation, merger, sale, transfer or share exchange is expected to become effective or close, and the date as of which it is expected that holders of the Common Stock of record shall be entitled to exchange their shares of the Common Stock for securities, cash or other property deliverable upon such reclassification, consolidation, merger, sale, transfer or share exchange; provided that the failure to deliver such notice or any defect therein or in the delivery thereof shall not affect the validity of the corporate action required to be specified in such notice. To the extent that any notice provided in this Warrant constitutes, or contains, material, non-public information regarding the Company or any of the Subsidiaries, the Company shall simultaneously file such notice with the Commission pursuant to a Current Report on Form 8-K. The Holder shall remain entitled to exercise this Warrant during the period commencing on the date of such notice to the

effective date of the event triggering such notice except as may otherwise be expressly set forth herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;h) <u>Voluntary Adjustment by Company</u>. Subject to the rules and regulations of the Trading Market, the Company may at any time during the term of this Warrant, reduce the then current Exercise Price to any amount and for any period of time deemed appropriate by the board of directors of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i) <u>Shareholder Approval</u>. If required, the Company shall hold a special meeting of shareholders (which may also be at the annual meeting of shareholders) at the earliest practicable date after the date hereof, but in no event later than forty-five (45) after the applicable date for the purpose of obtaining shareholder approval with the recommendation of the Board of Directors that such proposal be approved, and the Company shall solicit proxies from its shareholders in connection therewith in the same manner as all other management proposals in such proxy statement and all management-appointed proxyholders shall vote their proxies in favor of such proposal. The Company shall use its reasonable best efforts to obtain such shareholder approval, and officers, directors and shareholders shall cast their proxies in favor of such proposal. If the Company does not obtain shareholder approval at the first meeting, the Company shall call a meeting every three (3) months thereafter to seek shareholder approval until the earlier of the date shareholder approval is obtained or the Warrants are no longer outstanding. Notwithstanding the foregoing, the Company may, in lieu of holding a special meeting of shareholders as aforesaid, obtain the written consent of a majority of its shareholders covering the shareholder approval so long as prior to forty-five (45) days after the applicable date such written consents are obtained and in accordance with Exchange Act Rule 14c-2 at least twenty (20) days shall have transpired from the date on which a written information statement containing the information specified in Schedule 14C detailing such shareholder approval shall have been filed with the Commission and delivered to shareholders of the Company.

<u>Section 4</u>. <u>Transfer of Warrant</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) <u>Transferability</u>. Subject to compliance with any applicable securities laws and the conditions set forth in Section 4(d) hereof and to the provisions of the Purchase Agreement, this Warrant and all rights hereunder (including, without limitation, any registration rights) are transferable, in whole or in part, upon surrender of this Warrant at the principal office of the Company or its designated agent, together with a written assignment of this Warrant substantially in the form attached hereto duly executed by the Holder or its agent or attorney and funds sufficient to pay any transfer taxes payable upon the making of such transfer. Upon such surrender and, if required, such payment, the Company shall execute and deliver a new Warrant or Warrants in the name of the assignee or assignees, as applicable, and in the denomination or denominations specified in such instrument of assignment, and shall issue to the assignor a new Warrant evidencing the portion of this Warrant not so assigned, and this Warrant shall promptly be cancelled. Notwithstanding anything herein to the contrary, the Holder shall not be required to physically surrender this Warrant to the Company unless the Holder has assigned this Warrant in full, in which case, the Holder shall surrender this Warrant to the Company within three (3) Trading Days of the date on which the Holder delivers an assignment form to the Company assigning this Warrant in full. The Warrant, if properly assigned in accordance herewith, may be exercised by a new holder for the purchase of Warrant Shares without having a new Warrant issued.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) <u>New Warrants</u>. This Warrant may be divided or combined with other Warrants upon presentation hereof at the aforesaid office of the Company, together with a written notice specifying the names and denominations in which new Warrants are to be issued, signed by the Holder or its agent or attorney. Subject to compliance with Section 4(a), as to any transfer which may be involved in such division or combination, the Company shall execute and deliver a new Warrant or Warrants in exchange for the Warrant or Warrants to be divided or combined in accordance with such notice. All Warrants issued on transfers or exchanges shall be dated the Issue Date of this Warrant and shall be identical with this Warrant except as to the number of Warrant Shares issuable pursuant thereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c) <u>Warrant Register</u>. The Company shall register this Warrant, upon records to be maintained by the Company for that purpose (the "<u>Warrant Register</u>"), in the name of the record Holder hereof from time to time. The Company may deem and treat the registered Holder of this Warrant as the absolute owner hereof for the purpose of any exercise hereof or any distribution to the Holder, and for all other purposes, absent actual notice to the contrary.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d) <u>Transfer Restrictions</u>. If, at the time of the surrender of this Warrant in connection with any transfer of this Warrant, the transfer of this Warrant shall not be either (i) registered pursuant to an effective registration statement under the Securities Act and under applicable state securities or blue sky laws or (ii) eligible for resale without volume or manner-of-sale restrictions or current public information requirements pursuant to Rule 144, the Company may require, as a condition of allowing such transfer, that the Holder or transferee of this Warrant, as the case may be, comply with the provisions of Section 5.7 of the Purchase Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e) <u>Representation by the Holder</u>. The Holder, by the acceptance hereof, represents and warrants that it is acquiring this Warrant and, upon any exercise hereof, will acquire the Warrant Shares issuable upon such exercise, for its own account and not with a view to or for distributing or reselling such Warrant Shares or any part thereof in violation of the Securities Act or any applicable state securities law, except pursuant to sales registered or exempted under the Securities Act.

<u>Section 5</u>. <u>Miscellaneous</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) <u>No Rights as Stockholder Until Exercise; No Settlement in Cash</u>. This Warrant does not entitle the Holder to any voting rights, dividends or other rights as a stockholder of the Company prior to the exercise hereof as set forth in Section 2(d)(i), except as expressly set forth in Section 3. Without limiting the rights of a Holder to receive Warrant Shares on a "cashless exercise," and to receive the cash payments contemplated pursuant to Sections 2(d)(i) and 2(d)(iv), in no event will the Company be required to net cash settle an exercise of this Warrant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) <u>Loss, Theft, Destruction or Mutilation of Warrant</u>. The Company covenants that upon receipt by the Company of evidence reasonably satisfactory to it of the loss, theft, destruction or mutilation of this Warrant or any stock certificate relating to the Warrant Shares, and in case of loss, theft or destruction, of indemnity or security reasonably satisfactory to it (which, in the case of the Warrant, shall not include the posting of any bond), and upon surrender and cancellation of such Warrant or stock certificate, if mutilated, the Company will make and deliver a new Warrant or stock certificate of like tenor and dated as of such cancellation, in lieu of such Warrant or stock certificate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c) <u>Saturdays, Sundays, Holidays, etc</u>. If the last or appointed day for the taking of any action or the expiration of any right required or granted herein shall not be a Trading Day, then, such action may be taken or such right may be exercised on the next succeeding Trading Day.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d) <u>Authorized Shares</u>.

Except and to the extent as waived or consented to by the Holder, the Company shall not by any action, including, without limitation, amending its articles of incorporation or through any reorganization, transfer of assets, consolidation, merger, dissolution, issue or sale of securities or any other voluntary action, avoid or seek to avoid the observance or performance of any of the terms of this Warrant, but will at all times in good faith assist in the carrying out of all such terms and in the taking of all such actions as may be necessary or appropriate to protect the rights of Holder as set forth in this Warrant against impairment. Without limiting the generality of the foregoing, the Company will (i) not increase the par value of any Warrant Shares above the amount payable therefor upon such exercise immediately prior to such increase in par value, (ii) take all such action as may be necessary or appropriate in order that the Company may validly and legally issue fully paid and nonassessable Warrant Shares upon the exercise of this Warrant and (iii) use commercially reasonable efforts to obtain all such authorizations, exemptions or consents from any public regulatory body having jurisdiction thereof, as may be, necessary to enable the Company to perform its obligations under this Warrant.

Before taking any action which would result in an adjustment in the number of Warrant Shares for which this Warrant is exercisable or in the Exercise Price, the Company shall obtain all such authorizations or exemptions thereof, or consents thereto, as may be necessary from any public regulatory body or bodies having jurisdiction thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e) <u>Jurisdiction</u>. All questions concerning the construction, validity, enforcement and interpretation of this Warrant shall be determined in accordance with the provisions of the Purchase Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;f) <u>Restrictions</u>. The Holder acknowledges that the Warrant Shares acquired upon the exercise of this Warrant, if not registered, and the Holder does not utilize cashless exercise, will have restrictions upon resale imposed by state and federal securities laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;g) <u>Non-waiver and Expenses</u>. No course of dealing or any delay or failure to exercise any right hereunder on the part of Holder shall operate as a waiver of such right or otherwise prejudice the Holder's rights, powers or remedies, notwithstanding the fact that the right to exercise this Warrant terminates on the Termination Date. No provision of this Warrant shall be construed as a waiver by the Holder of any rights which the Holder may have under the federal securities laws and the rules and regulations of the Commission thereunder. Without limiting any other provision of this Warrant or the Purchase Agreement, if the Company willfully and knowingly fails to comply with any provision of this Warrant, which results in any material damages to the Holder, the Company shall pay to the Holder such amounts as shall be sufficient to cover any costs and expenses including, but not limited to, reasonable attorneys' fees, including those of appellate proceedings, incurred by the Holder in collecting any amounts due pursuant hereto or in otherwise enforcing any of its rights, powers or remedies hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;h) <u>Notices</u>. Any notice, request or other document required or permitted to be given or delivered to the Holder by the Company shall be delivered in accordance with the notice provisions of the Purchase Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i) <u>Limitation of Liability</u>. No provision hereof, in the absence of any affirmative action by the Holder to exercise this Warrant to purchase Warrant Shares, and no enumeration herein of the rights or privileges of the Holder, shall give rise to any liability of the Holder for the purchase price of any Common Stock or as a stockholder of the Company, whether such liability is asserted by the Company or by creditors of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;j) <u>Remedies</u>. The Holder, in addition to being entitled to exercise all rights granted by law, including recovery of damages, will be entitled to specific performance of its rights under this Warrant. The Company agrees that monetary damages would not be adequate compensation for any loss incurred by reason of a breach by it of the provisions of this Warrant and hereby agrees to waive and not to assert the defense in any action for specific performance that a remedy at law would be adequate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;k) <u>Successors and Assigns</u>. Subject to applicable securities laws, this Warrant and the rights and obligations evidenced hereby shall inure to the benefit of and be binding upon the successors and permitted assigns of the Company and the successors and permitted assigns of Holder. The provisions of this Warrant are intended to be for the benefit of any Holder from time to time of this Warrant and shall be enforceable by the Holder or holder of Warrant Shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;l) <u>Amendment</u>. This Warrant may be modified or amended or the provisions hereof waived with the written consent of the Company, on the one hand, and the Holder of this Warrant, on the other hand.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;m) <u>Severability</u>. Wherever possible, each provision of this Warrant shall be interpreted in such manner as to be effective and valid under applicable law, but if any provision of this Warrant shall be prohibited by or invalid under applicable law, such provision shall be ineffective to the extent of such prohibition or invalidity, without invalidating the remainder of such provisions or the remaining provisions of this Warrant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;n) <u>Headings</u>. The headings used in this Warrant are for the convenience of reference only and shall not, for any purpose, be deemed a part of this Warrant.

*(Signature Page Follows)*

 

 

[SIGNATURE PAGE TO COMMON STOCK PURCHASE WARRANT]

IN WITNESS WHEREOF, the Company has caused this Warrant to be executed by its officer thereunto duly authorized as of the date first above indicated.

---

| | |
|:---|:---|
| AMBITIOUS ENTERTAINMENT INC. | AMBITIOUS ENTERTAINMENT INC. |
| By: |  |
| Name: | Kirk Shaw |
| Title: | Chief Executive Officer |

---

**EXHIBIT A**

**NOTICE OF EXERCISE**

TO: **AMBITIOUS ENTERTAINMENT INC.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) The undersigned hereby elects to purchase Warrant Shares of the Company pursuant to the terms of the attached Warrant dated April 1, 2029 (only if exercised in full), and tenders herewith payment of the exercise price in full, together with all applicable transfer taxes, if any.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Payment
 shall take the form of (check applicable box):

[_] in lawful money of the United States, payable to the Company; or

[_] if permitted the cancellation of such number of Warrant Shares as is necessary, in accordance with the formula set forth in subsection 2(c), to exercise this Warrant with respect to the maximum number of Warrant Shares purchasable pursuant to the cashless exercise procedure set forth in subsection 2(c).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) Please
 issue said Warrant Shares in the name of the undersigned or in such other name as is specified
 below:

The Warrant Shares shall be delivered to the following DWAC Account Number:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) <u>Accredited Investor</u>. The undersigned is an "accredited investor" as defined in Regulation D promulgated under the Securities Act of 1933, as amended.

[SIGNATURE OF HOLDER]

Name of Investing Entity:

*Signature of Authorized Signatory of Investing Entity*:

Name of Authorized Signatory:

Title of Authorized Signatory:

Date:

**EXHIBIT B**

**ASSIGNMENT FORM**

*(To assign the foregoing Warrant, execute this form and supply required information. Do not use this form to exercise the Warrant to purchase shares.)*

 

FOR VALUE RECEIVED, the foregoing Warrant and all rights evidenced thereby are hereby assigned to

---

| | |
|:---|:---|
| Name: | |
|  | (Please Print) |
| Address: | |
|  | (Please Print) |
| Phone Number: | |
| <br> Email Address: | |
| <br> Dated:______________________ , __________ |  |
| Holder's Signature: |  |
| <br> Holder's Address: |  |

---

## Exhibit 10.1

**Exhibit 10.1**

**PROMISSORY<br> NOTE **(this** "**Note**"**)**

Date: December 31st, 2022

---

| | |
|:---|:---|
| **Borrower:** | AMBITIOUS ENTERTAINMENT INC. of VANCOUVER, BC (the "Borrower") |
| **Lender:** | ROOTS PROPERTIES INC of, VANCOUVER, BC, (the "Lender") |
| **Principal** **Amount:** | $211,489.87 USD |

---

1. FOR
 VALUE RECEIVED, The Borrower promises to pay to the Lender at such address as may be provided
 in writing to the Borrower, the principal sum of **$211,489.87USD**,
 with interest payable on the unpaid principal at the rate of 10.00 percent per annum, calculated
 yearly not in advance, beginning on January 1<sup>st</sup>,2023.

2. This
 Note will be repaid as following: when
 the company gets does a financing with 25% of any financing going towards loan repayment
 until it is all paid, or December 31<sup>st</sup>, 2025, in full.

3. All
 costs, expenses and expenditures including, and without limitation, the complete legal costs
 incurred by the Lender in enforcing this Note as a result of any default by the Borrower,
 will be added to the principal then outstanding and will immediately be paid by the Borrower.
 In the case of the Borrower's default and the acceleration of the amount due by the
 Lender all amounts outstanding under this Note will bear interest at the rate of 10.00 percent
 per annum from the date of demand until paid.

4. If
 any term, covenant, condition or provision of this Note is held by a court of competent jurisdiction
 to be invalid, void or unenforceable, it is the parties' intent that such provision
 be reduced in scope by the court only to the extent deemed necessary by that court to render
 the provision reasonable and enforceable and the remainder of the provisions of this Note
 will in no way be affected, impaired or invalidated as a result.

5. This
Note will be construed in accordance with and governed by the laws of British Columbia.

Page 1 of 2

<u>*Promissory Note*</u> <br> Page 2 of 2

6. This Note will enure to
 the benefit of and be binding upon the respective heirs, executors, administrators, successors and assigns of the Borrower and the
 Lender. The Borrower waives presentment for payment, notice of non-payment, protest and notice of protest.

Ambitious Entertainment Inc.

---

| | |
|:---|:---|
| By: | */s/ Kirk Shaw* |
| Name: | Kirk Shaw |
| Its: | President |

---

Roots Properties Inc.

---

| | |
|:---|:---|
| By: | */s/ Kirk Shaw* |
| Name: | Kirk Shaw |
| Its: | President |

---

## Exhibit 10.2

**Exhibit 10.2**

**PROMISSORY NOTE II**

Date: December 31, 2023

---

| | |
|:---|:---|
| **Borrower:** | Ambitious Entertainment Inc of, Vancouver, British Columbia (the "Borrower") |
| **Lender:** | ROOTS PROPERTIES INC of, VANCOUVER, BC, (the "Lender") |

---

**Principal Amount:** up to $300,000 USD From time-to-time Lender will loan funds to borrower on an as needed basis to cover operating expenses and other productions costs. The interest will be calculated annually based on the balance as of December 31<sup>st</sup>, 2023, December 31, 2024, December 31, 2025, and December 31, 2026.

&nbsp;&nbsp;&nbsp;&nbsp;1. FOR VALUE RECEIVED, The Borrower promises to pay to the Lender at such address as may be provided in writing to the Borrower, the principal sum of the note as of the calendar year end in USD. Interest payable will be calculated on the unpaid principal amount at the rate of 10% per annum, calculated yearly not in advance, beginning on December 31, 2023.

2. This
 Note will be repaid as following: when the company obtains financing through a third party. Once funding is received, 25% of any
 financing will be applied to the loan repayment until it is paid in full, or December 31st, 2026, in full.

3. All
 costs and expenses without limitation, including legal costs incurred by the Lender in enforcing this Note as a result of any default
 by the Borrower, will be added to the principal outstanding balance and will immediately be due to the Lender. In the case of the
 Borrower's default and the acceleration of the amount due by the Lender all amounts outstanding under this Note will bear interest
 at the rate of 10% per annum from the date of demand until paid.

4. If
 any term, covenant, condition or provision of this Note is held by a court of competent jurisdiction to be invalid, void or unenforceable,
 it is the parties' intent that such provision be reduced in scope by the court only to the extent deemed necessary by that
 court to render the provision reasonable and enforceable and the remainder of the provisions of this Note will in no way be affected,
 impaired or invalidated as a result.

5. This
 Note will be construed in accordance with and governed by the laws of British Columbia .

6. This
 Note will ensure to the benefit of and be binding upon the respective heirs, executors, administrators, successors and assigns of
 the Borrower and the Lender. The Borrower waives presentment for payment, notice of non-payment, protest and notice of protest.

7. In
 the event the Company changes its business structure of the Corporation, the Borrower and the Lender agree to convert this Promissory
 Note into a Convertible Promissory Note within 10 days.

Kirk Shaw

 

---

| | |
|:---|:---|
| By: | */s/ Kirk Shaw* |
| Name: | Kirk Shaw |

---

Ambitious Entertainment Inc.

---

| | |
|:---|:---|
| By: | */s/ Kirk Shaw* |
| Name: | Kirk Shaw |
| Title: | CEO |

---

## Exhibit 10.3

**Exhibit 10.3**

**PROMISSORY NOTE II**

Date: December 31, 2023

---

| | |
|:---|:---|
| **Borrower:** | Ambitious Entertainment Inc of, Vancouver, British Columbia (the "Borrower") |
| **Lender:** | JC3 Production (the "Lender") |
| **Principal Amount:** | $25,000 USD |

---

FOR VALUE RECEIVED, The Borrower promises to pay to the Lender at such address as may be provided in writing to the Borrower, the principal sum of $25,000 USD with interest payable at the rate of 10% per annum, calculated yearly not in advance, beginning on December 31, 2023.

&nbsp;&nbsp;&nbsp;&nbsp;1. This
 Note will be repaid as following: when the company obtains financing through a third party. Once funding is received, 25% of any
 financing will be applied to the loan repayment until it is paid in full, or December 31st, 2026, in full.

2. All
 costs and expenses without limitation, including legal costs incurred by the Lender in enforcing this Note as a result of any default
 by the Borrower, will be added to the principal outstanding balance and will immediately be due to the Lender. In the case of the
 Borrower's default and the acceleration of the amount due by the Lender all amounts outstanding under this Note will bear interest
 at the rate of 10% per annum from the date of demand until paid.

3. If
 any term, covenant, condition or provision of this Note is held by a court of competent jurisdiction to be invalid, void or unenforceable,
 it is the parties' intent that such provision be reduced in scope by the court only to the extent deemed necessary by that
 court to render the provision reasonable and enforceable and the remainder of the provisions of this Note will in no way be affected,
 impaired or invalidated as a result.

4. This
 Note will be construed in accordance with and governed by the laws of British Columbia.

5. This
 Note will ensure to the benefit of and be binding upon the respective heirs, executors, administrators, successors and assigns of
 the Borrower and the Lender. The Borrower waives presentment for payment, notice of non-payment, protest and notice of protest.

6. In
 the event the Company changes its business structure of the Corporation, the Borrower and
 the Lender agree to convert this Promissory Note into a Convertible Promissory Note within
 10 days.

JC3 Production

---

| | |
|:---|:---|
| By: | */s/ Kirk Shaw* |
| Name: | Kirk Shaw |
| Title: | President |

---

Ambitious Entertainment Inc.

---

| | |
|:---|:---|
| By: | */s/ Kirk Shaw* |
| Name: | Kirk Shaw |
| Title: | CEO |

---

## Exhibit 10.4

**Exhibit 10.4**

**PROMISSORY NOTE**

(this "Note")

Date: December 31st,2023

---

| | |
|:---|:---|
| **Borrower:** | Ambitious Entertainment Inc of, Vancouver,British Columbia (the "Borrower") |
| **Lender:** | Kirk Shaw. of, Vancouver, British Columbia (the "Lender") |
| **Principal Amount:** | $255,087.67 USD |

---

1. FOR
 VALUE RECEIVED, The Borrower promises to pay to the Lender at such address as may be provided in writing to the Borrower, the principal
 sum of $255,087.67 USD with interest payable on the unpaid principal at the rate of 10 . 00
 percent per annum, calculated yearly not in advance, beginning on January 1st, 2024.

**2.** This
 Note will be repaid as following: when the company gets does a financing with 25% of any financing going towards loan repayment until
 it is all paid, or December 31st, 2026 in full.

3. All
 costs, expenses and expenditures including, and without limitation, the complete legal costs incurred by the Lender in enforcing
 this Note as a result of any default by the Borrower, will be added to the principal then outstanding and will immediately be paid
 by the Borrower. In the case of the Borrower's default and the acceleration of the amount due by the Lender all amounts outstanding
 under this Note will bear interest at the rate of 10.00 percent per annum from the date of demand until paid.

4. If
 any term, covenant, condition or provision of this Note is held by a court of competent jurisdiction to be invalid, void or unenforceable,
 it is the parties' intent that such provision be reduced in scope by the court only to the extent deemed necessary by that
 court to render the provision reasonable and enforceable and the remainder of the provisions of this Note will in no way be affected,
 impaired or invalidated as a result.

5. This
 Note will be construed in accordance with and governed by the laws of British Columbia.

Page 1 of 2

<u>*Promissory Note*</u> <br> Page 2 of 2

6. This
 Note will ensure to the benefit of and be binding upon the respective heirs, executors, administrators,
 successors and assigns of the Borrower and the Lender. The Borrower waives presentment for
 payment, notice of non-payment, protest and notice of protest.

7. In
 the event the Company changes its business structure to a Corporation, it agrees to exchange
 this Promissory Note for a Convertible Promissory Note within 10 days.

Kirk Shaw

---

| | |
|:---|:---|
| By: | */s/ Kirk Shaw* |
| Name: | Kirk Shaw |
| Its: | President |

---

Ambitious Entertainment Inc.

---

| | |
|:---|:---|
| By: | */s/ Kirk Shaw* |
| Name: | Kirk Shaw |
| Its: | President |

---

## Exhibit 10.5

**Exhibit 10.5**

**PROMISSORY NOTE III**

Date: September 30, 2025

---

| | |
|:---|:---|
| **Borrower:** | Ambitious Entertainment Inc of, Vancouver, British Columbia (the "Borrower") |
| **Lender:** | Kirk Shaw. of, Vancouver, British Columbia (the "Lender") |

---

**Principal Amount:** up to $900,000 USD From time-to-time Lender will loan funds to borrower on an as needed basis to cover operating expenses and other productions costs. The interest will be calculated annually based on the balance as of December 31<sup>st</sup>, 2023, December 31, 2024, December 31, 2025, and December 31, 2026.

&nbsp;&nbsp;&nbsp;&nbsp;1. FOR
 VALUE RECEIVED, The Borrower promises to pay to the Lender at such address as may be provided in writing to the Borrower, the principal
 sum of the note as of the calendar year end in USD. Interest payable will be calculated on the unpaid principal amount at the rate
 of 10% per annum, calculated yearly not in advance, beginning on December 31, 2023.

2. This
 Note will be repaid as following: when the company obtains financing through a third party. Once funding is received, 25% of any
 financing will be applied to the loan repayment until it is paid in full, or December 31st, 2026, in full.

3. All
 costs and expenses without limitation, including legal costs incurred by the Lender in enforcing this Note as a result of any default
 by the Borrower, will be added to the principal outstanding balance and will immediately be due to the Lender. In the case of the
 Borrower's default and the acceleration of the amount due by the Lender all amounts outstanding under this Note will bear interest
 at the rate of 10% per annum from the date of demand until paid.

4. If
 any term, covenant, condition or provision of this Note is held by a court of competent jurisdiction to be invalid, void or unenforceable,
 it is the parties' intent that such provision be reduced in scope by the court only to the extent deemed necessary by that
 court to render the provision reasonable and enforceable and the remainder of the provisions of this Note will in no way be affected,
 impaired or invalidated as a result.

5. This
 Note will be construed in accordance with and governed by the laws of British Columbia.

6. This
 Note will ensure to the benefit of and be binding upon the respective heirs, executors, administrators, successors and assigns of
 the Borrower and the Lender. The Borrower waives presentment for payment, notice of non-payment, protest and notice of protest.

7. In
 the event the Company changes its business structure of the Corporation, the Borrower and the Lender agree to convert this Promissory
 Note into a Convertible Promissory Note within 10 days.

Kirk Shaw

---

| | |
|:---|:---|
| By: | */s/ Kirk Shaw* |
| Name: | Kirk Shaw |

---

Ambitious Entertainment Inc.

---

| | |
|:---|:---|
| By: | */s/ Kirk Shaw* |
| Name: | Kirk Shaw |
| Title: | CEO |

---

## Exhibit 10.6

**Exhibit 10.6**

**PROMISSORY NOTE II**

Date: December 31, 2023

---

| | |
|:---|:---|
| **Borrower:** | Ambitious Entertainment Inc of, Vancouver, British Columbia (the "Borrower") |
| **Lender:** | Kirk Shaw. of, Vancouver, British Columbia (the "Lender") |

---

**Principal Amount:** up to $300,000 USD From time-to-time Lender will loan funds to borrower on an as needed basis to cover operating expenses and other productions costs. The interest will be calculated annually based on the balance as of December 31<sup>st</sup>, 2023, December 31, 2024, December 31, 2025, and December 31, 2026.

&nbsp;&nbsp;&nbsp;&nbsp;1. FOR
 VALUE RECEIVED, The Borrower promises to pay to the Lender at such address as may be provided in writing to the Borrower, the principal
 sum of the note as of the calendar year end in USD. Interest payable will be calculated on the unpaid principal amount at the rate
 of 10% per annum, calculated yearly not in advance, beginning on December 31, 2023.

2. This
 Note will be repaid as following: when the company obtains financing through a third party. Once funding is received, 25% of any
 financing will be applied to the loan repayment until it is paid in full, or December 31st, 2026, in full.

3. All
 costs and expenses without limitation, including legal costs incurred by the Lender in enforcing this Note as a result of any default
 by the Borrower, will be added to the principal outstanding balance and will immediately be due to the Lender. In the case of the
 Borrower's default and the acceleration of the amount due by the Lender all amounts outstanding under this Note will bear interest
 at the rate of 10% per annum from the date of demand until paid.

4. If
 any term, covenant, condition or provision of this Note is held by a court of competent jurisdiction to be invalid, void or unenforceable,
 it is the parties' intent that such provision be reduced in scope by the court only to the extent deemed necessary by that
 court to render the provision reasonable and enforceable and the remainder of the provisions of this Note will in no way be affected,
 impaired or invalidated as a result.

5. This
 Note will be construed in accordance with and governed by the laws of British Columbia.

6. This
 Note will ensure to the benefit of and be binding upon the respective heirs, executors, administrators, successors and assigns of
 the Borrower and the Lender. The Borrower waives presentment for payment, notice of non-payment, protest and notice of protest.

7. In
 the event the Company changes its business structure of the Corporation, the Borrower and the Lender agree to convert this Promissory
 Note into a Convertible Promissory Note within 10 days.

Kirk Shaw

---

| | |
|:---|:---|
| By: | */s/ Kirk Shaw* |
| Name: | Kirk Shaw |

---

Ambitious Entertainment Inc.

---

| | |
|:---|:---|
| By: | */s/ Kirk Shaw* |
| Name: | Kirk Shaw |
| Title: | CEO |

---

## Exhibit 10.7

**Exhibit 10.7** 

**BOARD MEMBER AGREEMENT**

BOARD MEMBER AGREEMENT (this "<u>Agreement</u>") made as of January 16, 2026, by and between Ambitious Entertainment, Inc., a company incorporated under the law of the State of Nevada (the "<u>Company</u>" or "<u>we</u>" and its correlatives), and Adam Berk, a natural person resident in the State of Florida ("<u>Director</u>" or "<u>you</u>" and its correlatives).

WHEREAS, the Company wishes for Director to join its board of directors (the "<u>Board of Directors</u>") and Director wishes to join the Board of Directors and to provide such services to the Company to fulfil the obligations of a director in accordance with the Company's articles of incorporation, its bylaws, the provisions of the Nevada Revised Statutes and this Agreement.

WHEREAS, the appointment of Director as a director of the Company has been approved by the Board of Directors;

NOW THEREFORE, in consideration of the premises and for the good and valuable considerations the parties hereby agree as follows:

SECTION 1. <u>Services</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) You are hereby appointed as a director of the Company upon the terms and subject to the conditions of this Agreement. You are expected to attend all meetings of the Board of Directors, meetings of any committees of the Board of Directors on which you may serve from time to time and meetings of shareholders of the Company (as requested). In addition, you will be expected to devote appropriate preparation time ahead of each meeting. Meetings may be held by remote communication or at a specific location as the Board of Directors may from time to time decide.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) By accepting this appointment, you confirm that you are able to allocate sufficient time to meet the requirements and expectations of this position.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) You will undertake such travel as may reasonably be necessary for the performance of your duties, including travelling overseas for meetings of the Board of Directors and site visits if required.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) You shall discharge your general duties as a director pursuant to the Company's articles of incorporation, bylaws and applicable law, including all applicable laws, statutes, regulations and codes relating to the prevention of fraud, bribery, corruption, racketeering, money laundering or terrorism.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) The performance of individual directors and the Board of Directors and its committees is evaluated annually. If, in the interim, there are any matters which cause you concern about your position, you should discuss them with the Chairman of the Board of Directors as soon as is appropriate.

SECTION 2. <u>Director Fees; Reimbursement of Expenses</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Compensation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) In
 consideration for the performance of your duties as a director of the Company as set forth
 herein, the Company shall pay to you compensation of 250,000 shares of the Company's
 common stock, par value $0.001 per share (the "Common Stock"), for the Term of
 this Agreement (the " <u>Compensation</u> "). Notwithstanding anything to the contrary
 herein, this Agreement shall become effective only upon the consummation of the Company's
 initial public offering (the "IPO"). No Compensation shall accrue prior to the
 completion of the IPO.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Beginning with the first full fiscal quarter following the IPO, you shall be eligible to
 receive 62,500 shares of Common Stock per fiscal quarter during the Term, until a total of
 250,000 shares of Common Stock have been granted. The shares of Common Stock shall be issued at the end of each applicable fiscal quarter. The shares
 of Common Stock issued for the first fiscal quarter following the IPO shall vest on the six
 (6) month anniversary of the IPO date. All shares of Common Stock issued for subsequent fiscal
 quarters shall vest in full upon issuance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) In
 the event this Agreement is terminated prior to the six (6) month anniversary of the IPO,
 you shall earn such number of shares of Common Stock pro-rated for the number of days you
 served as Director between the IPO date and the termination date, as compared to the total
 number of days in the six (6) month period. All remaining unearned shares of Common Stock
 thereafter shall be forfeited.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) In
 the event this Agreement is terminated on or after the six (6) month anniversary date of
 the IPO but prior to the Term of this Agreement, you shall earn such number of shares of
 Common Stock pro-rated for the number of days you served as Director during the applicable
 fiscal quarter prior to termination, divided by the total number of days in such fiscal quarter.
 All remaining unearned shares of Common Stock thereafter shall be forfeited.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) You
 acknowledge that the shares of Common Stock issued as Compensation are "restricted
 securities" under the federal securities laws and will bear appropriate legends. The
 shares of Common Stock issued as Compensation may not be offered, sold or otherwise transferred
 absent an effective registration statement or the availability of exemptions from the registration
 requirements under federal securities laws and from any qualification or registration requirement
 under the securities laws of any applicable state or foreign jurisdictions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Company shall bear all costs and expenses associated with the issuance of the shares of Common Stock to Director. Director acknowledges sole responsibility for Director's personal tax obligations arising from the Compensation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The Company agrees to reimburse you for out-of-pocket expenses incurred by you in connection with your service provided that such expenses are against original and valid receipts and pre-approved by the Company in writing; provided that such approval shall not be unreasonably withheld ("<u>Expenses</u>"). An itemized invoice must be submitted to the Company within fifteen (15) days following the end of each calendar month for Expenses incurred during such month in order to be eligible for reimbursement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) For the avoidance of any doubt the aforementioned Compensation reimbursement of Expenses constitute the full and final consideration for your appointment, and no additional consideration of any kind is payable to you for your services as a director.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) In addition to any right pursuant to applicable law, occasions may arise when you consider that you need professional advice in furtherance of your duties as a director. Circumstances may occur when it will be appropriate for you to seek such advice from independent advisors at the Company's expense, to the extent provided under applicable law and subject to the prior written approval of a majority of the independent directors of the Company.

SECTION 3. <u>Term and Termination</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The term of your appointment shall be for one Year or until the next Annual Meeting of Stockholders unless terminated earlier as provided herein unless the Board of Directors decides otherwise. For the purposes of this Agreement, a "<u>Year</u>" of service is deemed to run from January 1 of a year through December 31 of such year.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) This appointment shall terminate immediately and without claim for compensation on the occurrence of any of the following events:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) if
 you resign as a director of the Company for any reason;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) if
 you are removed and not re-appointed as a director of the Company at a meeting of shareholders
 of the Company duly called for the purpose of the election or appointment of directors in
 accordance with the requirements of the law of the State of Nevada and the articles of association
 and by laws of the Company, and. for so long as any securities of the Company are listed
 on one or more securities exchanges, the requirements of such securities exchanges;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) if
 you have been declared bankrupt or made an arrangement or composition with or for the benefit
 of your creditors; and/or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) if
 you have been disqualified from acting as a director (including, but not limited to, an event
 in which you are declared insane or become of unsound mind or become physically incapable
 of performing your functions as a director for a period of at least 60 days);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) upon
 your death;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) if
 an order of a court having jurisdiction over the Company requires you to resign;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) your
 conviction of, or plea of guilty or nolo contendere to, a felony;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii) your
 willful misconduct that causes material harm to the Company, or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ix) your
 material breach of this Agreement that remains uncured for thirty (30) days after written
 notice thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Any termination of your appointment under this Agreement shall be without payment of damages or compensation (except that you shall be entitled to any accrued Compensation or Expenses properly incurred prior to the date of such termination pursuant to Section 2 of this Agreement).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) On termination of your appointment under this Agreement, you shall return all property belonging to the Company, any of its subsidiaries or any of its affiliated entities, together with all documents, papers, disks and information, howsoever stored, relating to any of them and used by you in connection with your position with the Company.

SECTION 4. <u>Non-Competition</u>. Subject to the proper performance of your obligations to the Company under this Agreement, the articles of incorporation of the Company, its bylaws any applicable law, the Company agrees that Director will be free to accept other appointments and directorships provided that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Prior
 written approval is obtained from the Board of Directors;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Such
 other appointments and/or directorships do not in any way conflict with the interests of
 the Company, its subsidiaries or its affiliated entities and do not restrict the Director
 from devoting the necessary time and attention properly to services to be performed under
 this Agreement; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) In
 the event that you become aware of any potential conflicts of interest, these must be disclosed
 to the Chairman of the Board of Directors as soon as they become apparent.

SECTION 5. <u>Confidential Information</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) You agree to maintain in strict confidentiality all trade, business, technical or other information regarding the Company, its subsidiaries, its affiliated entities and their business affairs including, without limitation, all marketing, sales, technical and business know-how, intellectual property, trade secrets, identity and requirements of customers and prospective customers, the Company's methods of doing business and any and all other information relating to the operation of the Company (collectively, "<u>Confidential Information</u>"). You shall at no time disclose any Confidential Information to any person, firm, or entity, for any purpose unless such disclosure is required in order to fulfill your responsibilities as director. You further undertake that you shall not use such Confidential Information for personal gain.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) "<u>Confidential Information</u>" shall not include information that (i) is or becomes part of the public domain other than as a result of disclosure by you, (ii) becomes available to you on a non-confidential basis from a source other than the Company, provided that the source is not bound with respect to that information by a confidentiality agreement with the Company, its subsidiaries or its affiliated entities or is otherwise prohibited from transmitting that information by a contractual legal or fiduciary obligation, or (iii) can be proven by you to have been in your possession prior to disclosure of the information by the Company. In the even that you are requested or required (by oral questions, interrogators, requests for information or documents, subpoena, civil investigative demand or other process) to disclose any Confidential Information, it is agreed that you, to the extent practicable under the circumstances, will provide the Company with prompt notice of any such request or requirement so that the Company may seek an appropriate protective order or waive compliance with this Section 5(b). If a protective order or the receipt of a waiver hereunder has not been obtained, you may disclose only that portion of the Confidential Information which you are legally compelled to disclose.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The obligations of confidentiality under this Section 5 shall survive for a period of one (1) years following the termination of this Agreement, except with respect to trade secrets, which shall remain subject to confidentiality for so long as they remain trade secrets under applicable law.

SECTION 6. <u>Company Policies</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Insider Trading Policy</u>. You understand that the Company has adopted an Insider Trading Policy to, among other things, ensure that trading of the Company's securities by directors, officers and employees of the Company remains in compliance with applicable securities and other laws and regulations. Pursuant to this policy, no officer, director or employee may engage in transactions in shares of our Common Stock during a "quiet period", which will normally commence on the last day of an interim or annual financial period and end on the trading day following the issuance of a press release or other document disclosing the results for the period. If you have information concerning our financial results at any time as a consequence of being a member of any of the committees of the Board of Directors, you may not engage in transactions in our securities until the information is publicly disclosed. You recognize that some or all of the Confidential Information may be relevant to the price or value of the Company's securities, and you will not use any such Confidential Information in any way that breaches insider trading provisions of any applicable securities laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Code of Business Conduct and Ethics</u>. You understand that the Company has adopted a Code of Business Conduct and Ethics to deter wrongdoing and to promote, among other things, honest and ethical conduct and to ensure to the greatest possible extent that the Company's business is conducted in a consistently legal and ethical manner.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Clawback Policy</u>. You understand that the Company has adopted a Policy for Recoupment of Incentive Compensation (the "<u>Clawback Policy</u>") relating to annual or short-term incentive compensation, performance-based restricted stock, other performance-based compensation, and such other compensation as may be designated by resolution of the Board as being subject to the terms of the Clawback Policy and that all such compensation or remuneration shall be subject to such policy, a copy of which you hereby acknowledge receipt, and whose terms are hereby incorporated by reference, as such policy may be amended from time to time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Compliance</u>. You shall procure that you comply at all times with the Company's Insider Trading Policy, the Company's the Code of Business Conduct and Ethics and such other policies as the Board of Directors of the Company may adopt from time to time, each as in effect from time to time.

SECTION 7. <u>Indemnification</u>. The Company will indemnify and defend Director and hold Director harmless against any liability incurred in the performance of Director's service on the Board of Directors pursuant to this Agreement to the fullest extent authorized in Company's articles of incorporation, as amended, bylaws, as amended, applicable law and as provided in any indemnification agreements the Company may enter into with the Director. The Company has or will in a timely manner purchase Director's and Officer's liability insurance, and Director shall be entitled to the protection of any insurance policies the Company maintains for the benefit of its directors and officers against all costs, charges and expenses in connection with any action, suite or proceeding to which the Director may be made a party by reason of affiliation with the Company, its subsidiaries, or affiliates or the performance by Director of the services as a director of the Company pursuant to this Agreement.

SECTION 8. <u>Insurance</u>. The Company will procure and maintain, upon such terms and in such amounts as the Company shall from time to time determine, directors' and officers' liability insurance as soon as possible after the date of this Agreement and will use commercial reasonable effort to maintain such coverage for the full term of your appointment. Such insurance and tail coverage shall be maintained at levels at least as favorable as those provided to any other director or officer of the Company.

SECTION 9. <u>Representations on Authority of Parties/Signatories</u>. Each party represents and warrants to the other that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) he
 or it has legal capacity to execute and deliver this Agreement, and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) has
 duly executed and delivered this Agreement and that this Agreement constitutes the legal,
 valid and binding obligation of such party, enforceable against such party in accordance
 with its terms.

SECTION 10. <u>Entire Agreement</u>. This Agreement constitutes the entire agreement between you and the Company and supersedes all previous agreements, promises, representations and undertakings between both parties, whether written or oral, relating to its subject matter.

SECTION 11. <u>Waivers</u>. The failure of any party at any time to require performance of any provision or to resort to any remedy provided under this Agreement shall in no way affect the right of that party to require performance or to resort to a remedy at any time thereafter, nor shall the waiver by any party of a breach be deemed to be a waiver of any subsequent breach. A waiver shall not be effective unless it is in writing and signed by the party against whom the waiver is being enforced.

SECTION 12. <u>Amendments</u>. This Agreement may be amended or modified only by a written instrument signed by the Director and by a duly authorized representative of the Company.

SECTION 13. <u>Governing Law; Jurisdiction</u>. This Agreement shall be governed by and construed in accordance with the law of the State of Nevada. You irrevocably agree that the courts of the State of Nevada shall have exclusive jurisdiction in relation to any claim, dispute or difference concerning this Agreement, your appointment, and any matter arising therefrom and you irrevocably waive any right that you may have to object to an action being brought in those courts, or to claim that the action has been brought in an inconvenient forum, or that those courts do not have jurisdiction.

SECTION 14. <u>Arbitration</u>. Notwithstanding the foregoing, either you or the Company may elect to resolve any claims and disputes arising under or relating to this Agreement by binding arbitration in the State of Nevada or another location mutually agreeable to you and the Company. The arbitration shall be conducted on a confidential basis pursuant to the Commercial Arbitration Rules of the American Arbitration Association. The seat of arbitration shall be the State of Nevada. The arbitration shall be conducted before a single arbitrator, experienced in the corporate law matters and mutually agreed to by you and the Company. An award of arbitration may be confirmed in a court of competent jurisdiction. Any decision or award as a result of any such arbitration proceeding shall be in writing and shall provide an explanation for all conclusions of law and fact and shall include the assessment of costs, expenses, and reasonable attorneys' fees.

SECTION 15. <u>Notices</u>. Any notice or other communications to be given by one party to the other party under or in connection with this Agreement shall be in writing and signed by or on behalf of the party giving it. Notices to the parties shall be sent to the applicable party as follows:

If to the Company:

Ambitious Entertainment, Inc.

112 W 6th Avenue

Vancouver, British Columbia V5Y 1K6

Canada

Attention: Kirk E. Shaw, Co-President and Interim Chief Executive Officer

E-mail: <u>kirk@ambitious.tv</u>

If to Director:

Adam Berk

9370 Grand Estates Way

Boca Raton, FL 33496, USA

E-mail: <u>alb9370@gmail.com</u>

Any notice or request shall be deemed to have been delivered: (a) on the delivery date if delivered personally to the party to whom the same is directed (where such day does not fall on a business day, delivery shall be deemed to be on the first business day following); (b) on the delivery date if delivered by email with an original delivered by another means within seventy-two (72) hours thereafter (where such day does not fall on a business day, delivery shall be deemed to be on the first business day following); or (c) one (1) business day after deposit with a reputable commercial overnight carrier.

 

*[Signature Page Follows]*

IN WITNESS WHEREOF, each of the parties have executed or caused to be executed on its behalf by a duly authorized person as of the date first above written.

---

| | |
|:---|:---|
| **AMBITIOUS ENTERTAINMENT, INC.** | **AMBITIOUS ENTERTAINMENT, INC.** |
| By: | */s/ Kirk E. Shaw* |
|  | Kirk E. Shaw |
|  | Co-President and Interim Chief Executive Officer |
| ***/s/ Adam Berk*** | ***/s/ Adam Berk*** |
| **Adam Berk** | **Adam Berk** |

---

## Exhibit 10.8

**Exhibit 10.8** 

**BOARD MEMBER AGREEMENT**

BOARD MEMBER AGREEMENT (this "<u>Agreement</u>") made as of January 16, 2026, by and between Ambitious Entertainment, Inc., a company incorporated under the law of the State of Nevada (the "<u>Company</u>" or "<u>we</u>" and its correlatives), and Chuyun Chen, a natural person resident in the State of California ("<u>Director</u>" or "<u>you</u>" and its correlatives).

WHEREAS, the Company wishes for Director to join its board of directors (the "<u>Board of Directors</u>") and Director wishes to join the Board of Directors and to provide such services to the Company to fulfil the obligations of a director in accordance with the Company's articles of incorporation, its bylaws, the provisions of the Nevada Revised Statutes and this Agreement.

WHEREAS, the appointment of Director as a director of the Company has been approved by the Board of Directors;

NOW THEREFORE, in consideration of the premises and for the good and valuable considerations the parties hereby agree as follows:

SECTION 1. <u>Services</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) You are hereby appointed as a director of the Company upon the terms and subject to the conditions of this Agreement. You are expected to attend all meetings of the Board of Directors, meetings of any committees of the Board of Directors on which you may serve from time to time and meetings of shareholders of the Company (as requested). In addition, you will be expected to devote appropriate preparation time ahead of each meeting. Meetings may be held by remote communication or at a specific location as the Board of Directors may from time to time decide.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) By accepting this appointment, you confirm that you are able to allocate sufficient time to meet the requirements and expectations of this position.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) You will undertake such travel as may reasonably be necessary for the performance of your duties, including travelling overseas for meetings of the Board of Directors and site visits if required.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) You shall discharge your general duties as a director pursuant to the Company's articles of incorporation, bylaws and applicable law, including all applicable laws, statutes, regulations and codes relating to the prevention of fraud, bribery, corruption, racketeering, money laundering or terrorism.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) The performance of individual directors and the Board of Directors and its committees is evaluated annually. If, in the interim, there are any matters which cause you concern about your position, you should discuss them with the Chairman of the Board of Directors as soon as is appropriate.

SECTION 2. <u>Director Fees; Reimbursement of Expenses</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Compensation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) In
 consideration for the performance of your duties as a director of the Company as set forth
 herein, the Company shall pay to you compensation of 250,000 shares of the Company's
 common stock, par value $0.001 per share (the "Common Stock"), for the Term of
 this Agreement (the " <u>Compensation</u> "). Notwithstanding anything to the contrary
 herein, this Agreement shall become effective only upon the consummation of the Company's
 initial public offering (the "IPO"). No Compensation shall accrue prior to the
 completion of the IPO.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Beginning with the first full fiscal quarter following the IPO, you shall be eligible to
 receive 62,500 shares of Common Stock per fiscal quarter during the Term, until a total of
 250,000 shares of Common Stock have been granted. The shares of Common Stock shall be issued at the end of each applicable fiscal quarter. The shares
 of Common Stock issued for the first fiscal quarter following the IPO shall vest on the six
 (6) month anniversary of the IPO date. All shares of Common Stock issued for subsequent fiscal
 quarters shall vest in full upon issuance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) In
 the event this Agreement is terminated prior to the six (6) month anniversary of the IPO,
 you shall earn such number of shares of Common Stock pro-rated for the number of days you
 served as Director between the IPO date and the termination date, as compared to the total
 number of days in the six (6) month period. All remaining unearned shares of Common Stock
 thereafter shall be forfeited.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) In
 the event this Agreement is terminated on or after the six (6) month anniversary date of
 the IPO but prior to the Term of this Agreement, you shall earn such number of shares of
 Common Stock pro-rated for the number of days you served as Director during the applicable
 fiscal quarter prior to termination, divided by the total number of days in such fiscal quarter.
 All remaining unearned shares of Common Stock thereafter shall be forfeited.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) You
 acknowledge that the shares of Common Stock issued as Compensation are "restricted
 securities" under the federal securities laws and will bear appropriate legends. The
 shares of Common Stock issued as Compensation may not be offered, sold or otherwise transferred
 absent an effective registration statement or the availability of exemptions from the registration
 requirements under federal securities laws and from any qualification or registration requirement
 under the securities laws of any applicable state or foreign jurisdictions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Company shall bear all costs and expenses associated with the issuance of the shares of Common Stock to Director. Director acknowledges sole responsibility for Director's personal tax obligations arising from the Compensation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The Company agrees to reimburse you for out-of-pocket expenses incurred by you in connection with your service provided that such expenses are against original and valid receipts and pre-approved by the Company in writing; provided that such approval shall not be unreasonably withheld ("<u>Expenses</u>"). An itemized invoice must be submitted to the Company within fifteen (15) days following the end of each calendar month for Expenses incurred during such month in order to be eligible for reimbursement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) For the avoidance of any doubt the aforementioned Compensation reimbursement of Expenses constitute the full and final consideration for your appointment, and no additional consideration of any kind is payable to you for your services as a director.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) In addition to any right pursuant to applicable law, occasions may arise when you consider that you need professional advice in furtherance of your duties as a director. Circumstances may occur when it will be appropriate for you to seek such advice from independent advisors at the Company's expense, to the extent provided under applicable law and subject to the prior written approval of a majority of the independent directors of the Company.

SECTION 3. <u>Term and Termination</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The term of your appointment shall be for one Year or until the next Annual Meeting of Stockholders unless terminated earlier as provided herein unless the Board of Directors decides otherwise. For the purposes of this Agreement, a "<u>Year</u>" of service is deemed to run from January 1 of a year through December 31 of such year.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) This appointment shall terminate immediately and without claim for compensation on the occurrence of any of the following events:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) if
 you resign as a director of the Company for any reason;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) if
 you are removed and not re-appointed as a director of the Company at a meeting of shareholders
 of the Company duly called for the purpose of the election or appointment of directors in
 accordance with the requirements of the law of the State of Nevada and the articles of association
 and by laws of the Company, and. for so long as any securities of the Company are listed
 on one or more securities exchanges, the requirements of such securities exchanges;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) if
 you have been declared bankrupt or made an arrangement or composition with or for the benefit
 of your creditors; and/or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) if
 you have been disqualified from acting as a director (including, but not limited to, an event
 in which you are declared insane or become of unsound mind or become physically incapable
 of performing your functions as a director for a period of at least 60 days);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) upon
 your death;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) if
 an order of a court having jurisdiction over the Company requires you to resign;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) your
 conviction of, or plea of guilty or nolo contendere to, a felony;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii) your
 willful misconduct that causes material harm to the Company, or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ix) your
 material breach of this Agreement that remains uncured for thirty (30) days after written
 notice thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Any termination of your appointment under this Agreement shall be without payment of damages or compensation (except that you shall be entitled to any accrued Compensation or Expenses properly incurred prior to the date of such termination pursuant to Section 2 of this Agreement).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) On termination of your appointment under this Agreement, you shall return all property belonging to the Company, any of its subsidiaries or any of its affiliated entities, together with all documents, papers, disks and information, howsoever stored, relating to any of them and used by you in connection with your position with the Company.

SECTION 4. <u>Non-Competition</u>. Subject to the proper performance of your obligations to the Company under this Agreement, the articles of incorporation of the Company, its bylaws any applicable law, the Company agrees that Director will be free to accept other appointments and directorships provided that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Prior
 written approval is obtained from the Board of Directors;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Such
 other appointments and/or directorships do not in any way conflict with the interests of
 the Company, its subsidiaries or its affiliated entities and do not restrict the Director
 from devoting the necessary time and attention properly to services to be performed under
 this Agreement; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) In
 the event that you become aware of any potential conflicts of interest, these must be disclosed
 to the Chairman of the Board of Directors as soon as they become apparent.

SECTION 5. <u>Confidential Information</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) You agree to maintain in strict confidentiality all trade, business, technical or other information regarding the Company, its subsidiaries, its affiliated entities and their business affairs including, without limitation, all marketing, sales, technical and business know-how, intellectual property, trade secrets, identity and requirements of customers and prospective customers, the Company's methods of doing business and any and all other information relating to the operation of the Company (collectively, "<u>Confidential Information</u>"). You shall at no time disclose any Confidential Information to any person, firm, or entity, for any purpose unless such disclosure is required in order to fulfill your responsibilities as director. You further undertake that you shall not use such Confidential Information for personal gain.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) "<u>Confidential Information</u>" shall not include information that (i) is or becomes part of the public domain other than as a result of disclosure by you, (ii) becomes available to you on a non-confidential basis from a source other than the Company, provided that the source is not bound with respect to that information by a confidentiality agreement with the Company, its subsidiaries or its affiliated entities or is otherwise prohibited from transmitting that information by a contractual legal or fiduciary obligation, or (iii) can be proven by you to have been in your possession prior to disclosure of the information by the Company. In the even that you are requested or required (by oral questions, interrogators, requests for information or documents, subpoena, civil investigative demand or other process) to disclose any Confidential Information, it is agreed that you, to the extent practicable under the circumstances, will provide the Company with prompt notice of any such request or requirement so that the Company may seek an appropriate protective order or waive compliance with this Section 5(b). If a protective order or the receipt of a waiver hereunder has not been obtained, you may disclose only that portion of the Confidential Information which you are legally compelled to disclose.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The obligations of confidentiality under this Section 5 shall survive for a period of one (1) years following the termination of this Agreement, except with respect to trade secrets, which shall remain subject to confidentiality for so long as they remain trade secrets under applicable law.

SECTION 6. <u>Company Policies</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Insider Trading Policy</u>. You understand that the Company has adopted an Insider Trading Policy to, among other things, ensure that trading of the Company's securities by directors, officers and employees of the Company remains in compliance with applicable securities and other laws and regulations. Pursuant to this policy, no officer, director or employee may engage in transactions in shares of our Common Stock during a "quiet period", which will normally commence on the last day of an interim or annual financial period and end on the trading day following the issuance of a press release or other document disclosing the results for the period. If you have information concerning our financial results at any time as a consequence of being a member of any of the committees of the Board of Directors, you may not engage in transactions in our securities until the information is publicly disclosed. You recognize that some or all of the Confidential Information may be relevant to the price or value of the Company's securities, and you will not use any such Confidential Information in any way that breaches insider trading provisions of any applicable securities laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Code of Business Conduct and Ethics</u>. You understand that the Company has adopted a Code of Business Conduct and Ethics to deter wrongdoing and to promote, among other things, honest and ethical conduct and to ensure to the greatest possible extent that the Company's business is conducted in a consistently legal and ethical manner.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Clawback Policy</u>. You understand that the Company has adopted a Policy for Recoupment of Incentive Compensation (the "<u>Clawback Policy</u>") relating to annual or short-term incentive compensation, performance-based restricted stock, other performance-based compensation, and such other compensation as may be designated by resolution of the Board as being subject to the terms of the Clawback Policy and that all such compensation or remuneration shall be subject to such policy, a copy of which you hereby acknowledge receipt, and whose terms are hereby incorporated by reference, as such policy may be amended from time to time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Compliance</u>. You shall procure that you comply at all times with the Company's Insider Trading Policy, the Company's the Code of Business Conduct and Ethics and such other policies as the Board of Directors of the Company may adopt from time to time, each as in effect from time to time.

SECTION 7. <u>Indemnification</u>. The Company will indemnify and defend Director and hold Director harmless against any liability incurred in the performance of Director's service on the Board of Directors pursuant to this Agreement to the fullest extent authorized in Company's articles of incorporation, as amended, bylaws, as amended, applicable law and as provided in any indemnification agreements the Company may enter into with the Director. The Company has or will in a timely manner purchase Director's and Officer's liability insurance, and Director shall be entitled to the protection of any insurance policies the Company maintains for the benefit of its directors and officers against all costs, charges and expenses in connection with any action, suite or proceeding to which the Director may be made a party by reason of affiliation with the Company, its subsidiaries, or affiliates or the performance by Director of the services as a director of the Company pursuant to this Agreement.

SECTION 8. <u>Insurance</u>. The Company will procure and maintain, upon such terms and in such amounts as the Company shall from time to time determine, directors' and officers' liability insurance as soon as possible after the date of this Agreement and will use commercial reasonable effort to maintain such coverage for the full term of your appointment. Such insurance and tail coverage shall be maintained at levels at least as favorable as those provided to any other director or officer of the Company.

SECTION 9. <u>Representations on Authority of Parties/Signatories</u>. Each party represents and warrants to the other that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) he
 or it has legal capacity to execute and deliver this Agreement, and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) has
 duly executed and delivered this Agreement and that this Agreement constitutes the legal,
 valid and binding obligation of such party, enforceable against such party in accordance
 with its terms.

SECTION 10. <u>Entire Agreement</u>. This Agreement constitutes the entire agreement between you and the Company and supersedes all previous agreements, promises, representations and undertakings between both parties, whether written or oral, relating to its subject matter.

SECTION 11. <u>Waivers</u>. The failure of any party at any time to require performance of any provision or to resort to any remedy provided under this Agreement shall in no way affect the right of that party to require performance or to resort to a remedy at any time thereafter, nor shall the waiver by any party of a breach be deemed to be a waiver of any subsequent breach. A waiver shall not be effective unless it is in writing and signed by the party against whom the waiver is being enforced.

SECTION 12. <u>Amendments</u>. This Agreement may be amended or modified only by a written instrument signed by the Director and by a duly authorized representative of the Company.

SECTION 13. <u>Governing Law; Jurisdiction</u>. This Agreement shall be governed by and construed in accordance with the law of the State of Nevada. You irrevocably agree that the courts of the State of Nevada shall have exclusive jurisdiction in relation to any claim, dispute or difference concerning this Agreement, your appointment, and any matter arising therefrom and you irrevocably waive any right that you may have to object to an action being brought in those courts, or to claim that the action has been brought in an inconvenient forum, or that those courts do not have jurisdiction.

SECTION 14. <u>Arbitration</u>. Notwithstanding the foregoing, either you or the Company may elect to resolve any claims and disputes arising under or relating to this Agreement by binding arbitration in the State of Nevada or another location mutually agreeable to you and the Company. The arbitration shall be conducted on a confidential basis pursuant to the Commercial Arbitration Rules of the American Arbitration Association. The seat of arbitration shall be the State of Nevada. The arbitration shall be conducted before a single arbitrator, experienced in the corporate law matters and mutually agreed to by you and the Company. An award of arbitration may be confirmed in a court of competent jurisdiction. Any decision or award as a result of any such arbitration proceeding shall be in writing and shall provide an explanation for all conclusions of law and fact and shall include the assessment of costs, expenses, and reasonable attorneys' fees.

SECTION 15. <u>Notices</u>. Any notice or other communications to be given by one party to the other party under or in connection with this Agreement shall be in writing and signed by or on behalf of the party giving it. Notices to the parties shall be sent to the applicable party as follows:

If to the Company:

Ambitious Entertainment, Inc.

112 W 6th Avenue

Vancouver, British Columbia V5Y 1K6

Canada

Attention: Kirk E. Shaw, Co-President and Interim Chief Executive Officer

E-mail: <u>kirk@ambitious.tv</u>

If to Director:

Chuyun Chen

340 San Tropez Ct

Laguna beach, 92651, CA

E-mail: <u>2642839189@qq.com</u>

Any notice or request shall be deemed to have been delivered: (a) on the delivery date if delivered personally to the party to whom the same is directed (where such day does not fall on a business day, delivery shall be deemed to be on the first business day following); (b) on the delivery date if delivered by email with an original delivered by another means within seventy-two (72) hours thereafter (where such day does not fall on a business day, delivery shall be deemed to be on the first business day following); or (c) one (1) business day after deposit with a reputable commercial overnight carrier.

 

*[Signature Page Follows]*

IN WITNESS WHEREOF, each of the parties have executed or caused to be executed on its behalf by a duly authorized person as of the date first above written.

---

| | |
|:---|:---|
| **AMBITIOUS ENTERTAINMENT, INC.** | **AMBITIOUS ENTERTAINMENT, INC.** |
| By: | */s/ Kirk E. Shaw* |
|  | Kirk E. Shaw |
|  | Co-President and Interim Chief Executive Officer |
| ***/s/ Chuyun Chen*** | ***/s/ Chuyun Chen*** |
| **Chuyun Chen** | **Chuyun Chen** |

---

## Exhibit 10.9

**Exhibit 10.9** 

**BOARD MEMBER AGREEMENT**

BOARD MEMBER AGREEMENT (this "<u>Agreement</u>") made as of January 16, 2026, by and between Ambitious Entertainment, Inc., a company incorporated under the law of the State of Nevada (the "<u>Company</u>" or "<u>we</u>" and its correlatives), and Owen May, a natural person resident in the State of New York ("<u>Director</u>" or "<u>you</u>" and its correlatives).

WHEREAS, the Company wishes for Director to join its board of directors (the "<u>Board of Directors</u>") and Director wishes to join the Board of Directors and to provide such services to the Company to fulfil the obligations of a director in accordance with the Company's articles of incorporation, its bylaws, the provisions of the Nevada Revised Statutes and this Agreement.

WHEREAS, the appointment of Director as a director of the Company has been approved by the Board of Directors;

NOW THEREFORE, in consideration of the premises and for the good and valuable considerations the parties hereby agree as follows:

SECTION 1. <u>Services</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) You are hereby appointed as a director of the Company upon the terms and subject to the conditions of this Agreement. You are expected to attend all meetings of the Board of Directors, meetings of any committees of the Board of Directors on which you may serve from time to time and meetings of shareholders of the Company (as requested). In addition, you will be expected to devote appropriate preparation time ahead of each meeting. Meetings may be held by remote communication or at a specific location as the Board of Directors may from time to time decide.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) By accepting this appointment, you confirm that you are able to allocate sufficient time to meet the requirements and expectations of this position.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) You will undertake such travel as may reasonably be necessary for the performance of your duties, including travelling overseas for meetings of the Board of Directors and site visits if required.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) You shall discharge your general duties as a director pursuant to the Company's articles of incorporation, bylaws and applicable law, including all applicable laws, statutes, regulations and codes relating to the prevention of fraud, bribery, corruption, racketeering, money laundering or terrorism.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) The performance of individual directors and the Board of Directors and its committees is evaluated annually. If, in the interim, there are any matters which cause you concern about your position, you should discuss them with the Chairman of the Board of Directors as soon as is appropriate.

SECTION 2. <u>Director Fees; Reimbursement of Expenses</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Compensation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) In
 consideration for the performance of your duties as a director of the Company as set forth
 herein, the Company shall pay to you compensation of 250,000 shares of the Company's
 common stock, par value $0.001 per share (the "Common Stock"), for the Term of
 this Agreement (the " <u>Compensation</u> "). Notwithstanding anything to the contrary
 herein, this Agreement shall become effective only upon the consummation of the Company's
 initial public offering (the "IPO"). No Compensation shall accrue prior to the
 completion of the IPO.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Beginning with the first full fiscal quarter following the IPO, you shall be eligible to
 receive 62,500 shares of Common Stock per fiscal quarter during the Term, until a total of
 250,000 shares of Common Stock have been granted. The shares of Common Stock shall be issued at the end of each applicable fiscal quarter. The shares
 of Common Stock issued for the first fiscal quarter following the IPO shall vest on the six
 (6) month anniversary of the IPO date. All shares of Common Stock issued for subsequent fiscal
 quarters shall vest in full upon issuance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) In
 the event this Agreement is terminated prior to the six (6) month anniversary of the IPO,
 you shall earn such number of shares of Common Stock pro-rated for the number of days you
 served as Director between the IPO date and the termination date, as compared to the total
 number of days in the six (6) month period. All remaining unearned shares of Common Stock
 thereafter shall be forfeited.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) In
 the event this Agreement is terminated on or after the six (6) month anniversary date of
 the IPO but prior to the Term of this Agreement, you shall earn such number of shares of
 Common Stock pro-rated for the number of days you served as Director during the applicable
 fiscal quarter prior to termination, divided by the total number of days in such fiscal quarter.
 All remaining unearned shares of Common Stock thereafter shall be forfeited.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) You
 acknowledge that the shares of Common Stock issued as Compensation are "restricted
 securities" under the federal securities laws and will bear appropriate legends. The
 shares of Common Stock issued as Compensation may not be offered, sold or otherwise transferred
 absent an effective registration statement or the availability of exemptions from the registration
 requirements under federal securities laws and from any qualification or registration requirement
 under the securities laws of any applicable state or foreign jurisdictions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Company shall bear all costs and expenses associated with the issuance of the shares of Common Stock to Director. Director acknowledges sole responsibility for Director's personal tax obligations arising from the Compensation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The Company agrees to reimburse you for out-of-pocket expenses incurred by you in connection with your service provided that such expenses are against original and valid receipts and pre-approved by the Company in writing; provided that such approval shall not be unreasonably withheld ("<u>Expenses</u>"). An itemized invoice must be submitted to the Company within fifteen (15) days following the end of each calendar month for Expenses incurred during such month in order to be eligible for reimbursement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) For the avoidance of any doubt the aforementioned Compensation reimbursement of Expenses constitute the full and final consideration for your appointment, and no additional consideration of any kind is payable to you for your services as a director.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) In addition to any right pursuant to applicable law, occasions may arise when you consider that you need professional advice in furtherance of your duties as a director. Circumstances may occur when it will be appropriate for you to seek such advice from independent advisors at the Company's expense, to the extent provided under applicable law and subject to the prior written approval of a majority of the independent directors of the Company.

SECTION 3. <u>Term and Termination</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The term of your appointment shall be for one Year or until the next Annual Meeting of Stockholders unless terminated earlier as provided herein unless the Board of Directors decides otherwise. For the purposes of this Agreement, a "<u>Year</u>" of service is deemed to run from January 1 of a year through December 31 of such year.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) This appointment shall terminate immediately and without claim for compensation on the occurrence of any of the following events:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) if
 you resign as a director of the Company for any reason;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) if
 you are removed and not re-appointed as a director of the Company at a meeting of shareholders
 of the Company duly called for the purpose of the election or appointment of directors in
 accordance with the requirements of the law of the State of Nevada and the articles of association
 and by laws of the Company, and. for so long as any securities of the Company are listed
 on one or more securities exchanges, the requirements of such securities exchanges;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) if
 you have been declared bankrupt or made an arrangement or composition with or for the benefit
 of your creditors; and/or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) if
 you have been disqualified from acting as a director (including, but not limited to, an event
 in which you are declared insane or become of unsound mind or become physically incapable
 of performing your functions as a director for a period of at least 60 days);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) upon
 your death;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) if
 an order of a court having jurisdiction over the Company requires you to resign;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) your
 conviction of, or plea of guilty or nolo contendere to, a felony;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii) your
 willful misconduct that causes material harm to the Company, or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ix) your
 material breach of this Agreement that remains uncured for thirty (30) days after written
 notice thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Any termination of your appointment under this Agreement shall be without payment of damages or compensation (except that you shall be entitled to any accrued Compensation or Expenses properly incurred prior to the date of such termination pursuant to Section 2 of this Agreement).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) On termination of your appointment under this Agreement, you shall return all property belonging to the Company, any of its subsidiaries or any of its affiliated entities, together with all documents, papers, disks and information, howsoever stored, relating to any of them and used by you in connection with your position with the Company.

SECTION 4. <u>Non-Competition</u>. Subject to the proper performance of your obligations to the Company under this Agreement, the articles of incorporation of the Company, its bylaws any applicable law, the Company agrees that Director will be free to accept other appointments and directorships provided that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Prior
 written approval is obtained from the Board of Directors;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Such
 other appointments and/or directorships do not in any way conflict with the interests of
 the Company, its subsidiaries or its affiliated entities and do not restrict the Director
 from devoting the necessary time and attention properly to services to be performed under
 this Agreement; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) In
 the event that you become aware of any potential conflicts of interest, these must be disclosed
 to the Chairman of the Board of Directors as soon as they become apparent.

SECTION 5. <u>Confidential Information</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) You agree to maintain in strict confidentiality all trade, business, technical or other information regarding the Company, its subsidiaries, its affiliated entities and their business affairs including, without limitation, all marketing, sales, technical and business know-how, intellectual property, trade secrets, identity and requirements of customers and prospective customers, the Company's methods of doing business and any and all other information relating to the operation of the Company (collectively, "<u>Confidential Information</u>"). You shall at no time disclose any Confidential Information to any person, firm, or entity, for any purpose unless such disclosure is required in order to fulfill your responsibilities as director. You further undertake that you shall not use such Confidential Information for personal gain.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) "<u>Confidential Information</u>" shall not include information that (i) is or becomes part of the public domain other than as a result of disclosure by you, (ii) becomes available to you on a non-confidential basis from a source other than the Company, provided that the source is not bound with respect to that information by a confidentiality agreement with the Company, its subsidiaries or its affiliated entities or is otherwise prohibited from transmitting that information by a contractual legal or fiduciary obligation, or (iii) can be proven by you to have been in your possession prior to disclosure of the information by the Company. In the even that you are requested or required (by oral questions, interrogators, requests for information or documents, subpoena, civil investigative demand or other process) to disclose any Confidential Information, it is agreed that you, to the extent practicable under the circumstances, will provide the Company with prompt notice of any such request or requirement so that the Company may seek an appropriate protective order or waive compliance with this Section 5(b). If a protective order or the receipt of a waiver hereunder has not been obtained, you may disclose only that portion of the Confidential Information which you are legally compelled to disclose.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The obligations of confidentiality under this Section 5 shall survive for a period of one (1) years following the termination of this Agreement, except with respect to trade secrets, which shall remain subject to confidentiality for so long as they remain trade secrets under applicable law.

SECTION 6. <u>Company Policies</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Insider Trading Policy</u>. You understand that the Company has adopted an Insider Trading Policy to, among other things, ensure that trading of the Company's securities by directors, officers and employees of the Company remains in compliance with applicable securities and other laws and regulations. Pursuant to this policy, no officer, director or employee may engage in transactions in shares of our Common Stock during a "quiet period", which will normally commence on the last day of an interim or annual financial period and end on the trading day following the issuance of a press release or other document disclosing the results for the period. If you have information concerning our financial results at any time as a consequence of being a member of any of the committees of the Board of Directors, you may not engage in transactions in our securities until the information is publicly disclosed. You recognize that some or all of the Confidential Information may be relevant to the price or value of the Company's securities, and you will not use any such Confidential Information in any way that breaches insider trading provisions of any applicable securities laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Code of Business Conduct and Ethics</u>. You understand that the Company has adopted a Code of Business Conduct and Ethics to deter wrongdoing and to promote, among other things, honest and ethical conduct and to ensure to the greatest possible extent that the Company's business is conducted in a consistently legal and ethical manner.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Clawback Policy</u>. You understand that the Company has adopted a Policy for Recoupment of Incentive Compensation (the "<u>Clawback Policy</u>") relating to annual or short-term incentive compensation, performance-based restricted stock, other performance-based compensation, and such other compensation as may be designated by resolution of the Board as being subject to the terms of the Clawback Policy and that all such compensation or remuneration shall be subject to such policy, a copy of which you hereby acknowledge receipt, and whose terms are hereby incorporated by reference, as such policy may be amended from time to time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Compliance</u>. You shall procure that you comply at all times with the Company's Insider Trading Policy, the Company's the Code of Business Conduct and Ethics and such other policies as the Board of Directors of the Company may adopt from time to time, each as in effect from time to time.

SECTION 7. <u>Indemnification</u>. The Company will indemnify and defend Director and hold Director harmless against any liability incurred in the performance of Director's service on the Board of Directors pursuant to this Agreement to the fullest extent authorized in Company's articles of incorporation, as amended, bylaws, as amended, applicable law and as provided in any indemnification agreements the Company may enter into with the Director. The Company has or will in a timely manner purchase Director's and Officer's liability insurance, and Director shall be entitled to the protection of any insurance policies the Company maintains for the benefit of its directors and officers against all costs, charges and expenses in connection with any action, suite or proceeding to which the Director may be made a party by reason of affiliation with the Company, its subsidiaries, or affiliates or the performance by Director of the services as a director of the Company pursuant to this Agreement.

SECTION 8. <u>Insurance</u>. The Company will procure and maintain, upon such terms and in such amounts as the Company shall from time to time determine, directors' and officers' liability insurance as soon as possible after the date of this Agreement and will use commercial reasonable effort to maintain such coverage for the full term of your appointment. Such insurance and tail coverage shall be maintained at levels at least as favorable as those provided to any other director or officer of the Company.

SECTION 9. <u>Representations on Authority of Parties/Signatories</u>. Each party represents and warrants to the other that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) he
 or it has legal capacity to execute and deliver this Agreement, and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) has
 duly executed and delivered this Agreement and that this Agreement constitutes the legal,
 valid and binding obligation of such party, enforceable against such party in accordance
 with its terms.

SECTION 10. <u>Entire Agreement</u>. This Agreement constitutes the entire agreement between you and the Company and supersedes all previous agreements, promises, representations and undertakings between both parties, whether written or oral, relating to its subject matter.

SECTION 11. <u>Waivers</u>. The failure of any party at any time to require performance of any provision or to resort to any remedy provided under this Agreement shall in no way affect the right of that party to require performance or to resort to a remedy at any time thereafter, nor shall the waiver by any party of a breach be deemed to be a waiver of any subsequent breach. A waiver shall not be effective unless it is in writing and signed by the party against whom the waiver is being enforced.

SECTION 12. <u>Amendments</u>. This Agreement may be amended or modified only by a written instrument signed by the Director and by a duly authorized representative of the Company.

SECTION 13. <u>Governing Law; Jurisdiction</u>. This Agreement shall be governed by and construed in accordance with the law of the State of Nevada. You irrevocably agree that the courts of the State of Nevada shall have exclusive jurisdiction in relation to any claim, dispute or difference concerning this Agreement, your appointment, and any matter arising therefrom and you irrevocably waive any right that you may have to object to an action being brought in those courts, or to claim that the action has been brought in an inconvenient forum, or that those courts do not have jurisdiction.

SECTION 14. <u>Arbitration</u>. Notwithstanding the foregoing, either you or the Company may elect to resolve any claims and disputes arising under or relating to this Agreement by binding arbitration in the State of Nevada or another location mutually agreeable to you and the Company. The arbitration shall be conducted on a confidential basis pursuant to the Commercial Arbitration Rules of the American Arbitration Association. The seat of arbitration shall be the State of Nevada. The arbitration shall be conducted before a single arbitrator, experienced in the corporate law matters and mutually agreed to by you and the Company. An award of arbitration may be confirmed in a court of competent jurisdiction. Any decision or award as a result of any such arbitration proceeding shall be in writing and shall provide an explanation for all conclusions of law and fact and shall include the assessment of costs, expenses, and reasonable attorneys' fees.

SECTION 15. <u>Notices</u>. Any notice or other communications to be given by one party to the other party under or in connection with this Agreement shall be in writing and signed by or on behalf of the party giving it. Notices to the parties shall be sent to the applicable party as follows:

If to the Company:

Ambitious Entertainment, Inc.

112 W 6th Avenue

Vancouver, British Columbia V5Y 1K6

Canada

Attention: Kirk E. Shaw, Co-President and Interim Chief Executive Officer

E-mail: <u>kirk@ambitious.tv</u>

If to Director:

Owen May

329 East 63st suite 3J

New York, NY 10065

E-mail: <u>yamnweo@gmail.com</u>

Any notice or request shall be deemed to have been delivered: (a) on the delivery date if delivered personally to the party to whom the same is directed (where such day does not fall on a business day, delivery shall be deemed to be on the first business day following); (b) on the delivery date if delivered by email with an original delivered by another means within seventy-two (72) hours thereafter (where such day does not fall on a business day, delivery shall be deemed to be on the first business day following); or (c) one (1) business day after deposit with a reputable commercial overnight carrier.

 

*[Signature Page Follows]*

IN WITNESS WHEREOF, each of the parties have executed or caused to be executed on its behalf by a duly authorized person as of the date first above written.

---

| | |
|:---|:---|
| **AMBITIOUS ENTERTAINMENT, INC.** | **AMBITIOUS ENTERTAINMENT, INC.** |
| By: | */s/ Kirk E. Shaw* |
|  | Kirk E. Shaw |
|  | Co-President and Interim Chief Executive Officer |
| ***/s/ Owen May*** | ***/s/ Owen May*** |
| **Owen May** | **Owen May** |

---

## Exhibit 10.10

**Exhibit 10.10** 

**BOARD MEMBER AGREEMENT**

BOARD MEMBER AGREEMENT (this "<u>Agreement</u>") made as of January 16, 2026, by and between Ambitious Entertainment, Inc., a company incorporated under the law of the State of Nevada (the "<u>Company</u>" or "<u>we</u>" and its correlatives), and Patricio Rabuffetti, a natural person with residence in Madrid, Spain ("<u>Director</u>" or "<u>you</u>" and its correlatives).

WHEREAS, the Company wishes for Director to join its board of directors (the "<u>Board of Directors</u>") and Director wishes to join the Board of Directors and to provide such services to the Company to fulfil the obligations of a director in accordance with the Company's articles of incorporation, its bylaws, the provisions of the Nevada Revised Statutes and this Agreement.

WHEREAS, the appointment of Director as a director of the Company has been approved by the Board of Directors;

NOW THEREFORE, in consideration of the premises and for the good and valuable considerations the parties hereby agree as follows:

SECTION 1. <u>Services</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) You are hereby appointed as a director of the Company upon the terms and subject to the conditions of this Agreement. You are expected to attend all meetings of the Board of Directors, meetings of any committees of the Board of Directors on which you may serve from time to time and meetings of shareholders of the Company (as requested). In addition, you will be expected to devote appropriate preparation time ahead of each meeting. Meetings may be held by remote communication or at a specific location as the Board of Directors may from time to time decide.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) By accepting this appointment, you confirm that you are able to allocate sufficient time to meet the requirements and expectations of this position.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) You will undertake such travel as may reasonably be necessary for the performance of your duties, including travelling overseas for meetings of the Board of Directors and site visits if required.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) You shall discharge your general duties as a director pursuant to the Company's articles of incorporation, bylaws and applicable law, including all applicable laws, statutes, regulations and codes relating to the prevention of fraud, bribery, corruption, racketeering, money laundering or terrorism.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) The performance of individual directors and the Board of Directors and its committees is evaluated annually. If, in the interim, there are any matters which cause you concern about your position, you should discuss them with the Chairman of the Board of Directors as soon as is appropriate.

SECTION 2. <u>Director Fees; Reimbursement of Expenses</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Compensation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) In
 consideration for the performance of your duties as a director of the Company as set forth
 herein, the Company shall pay to you compensation of 100,000 shares of the Company's
 common stock, par value $0.001 per share (the "Common Stock"), for the Term of
 this Agreement (the " <u>Compensation</u> "). Notwithstanding anything to the contrary
 herein, this Agreement shall become effective only upon the consummation of the Company's
 initial public offering (the "IPO"). No Compensation shall accrue prior to the
 completion of the IPO.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Beginning with the first full fiscal quarter following the IPO, you shall be eligible to
 receive 25,000 shares of Common Stock per fiscal quarter during the Term, until a total of
 100,000 shares of Common Stock have been granted. The shares of Common Stock shall be issued at the end of each applicable fiscal quarter. The shares
 of Common Stock issued for the first fiscal quarter following the IPO shall vest on the six
 (6) month anniversary of the IPO date. All shares of Common Stock issued for subsequent fiscal
 quarters shall vest in full upon issuance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) In
 the event this Agreement is terminated prior to the six (6) month anniversary of the IPO,
 you shall earn such number of shares of Common Stock pro-rated for the number of days you
 served as Director between the IPO date and the termination date, as compared to the total
 number of days in the six (6) month period. All remaining unearned shares of Common Stock
 thereafter shall be forfeited.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) In
 the event this Agreement is terminated on or after the six (6) month anniversary date of
 the IPO but prior to the Term of this Agreement, you shall earn such number of shares of
 Common Stock pro-rated for the number of days you served as Director during the applicable
 fiscal quarter prior to termination, divided by the total number of days in such fiscal quarter.
 All remaining unearned shares of Common Stock thereafter shall be forfeited.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) You
 acknowledge that the shares of Common Stock issued as Compensation are "restricted
 securities" under the federal securities laws and will bear appropriate legends. The
 shares of Common Stock issued as Compensation may not be offered, sold or otherwise transferred
 absent an effective registration statement or the availability of exemptions from the registration
 requirements under federal securities laws and from any qualification or registration requirement
 under the securities laws of any applicable state or foreign jurisdictions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Company shall bear all costs and expenses associated with the issuance of the shares of Common Stock to Director. Director acknowledges sole responsibility for Director's personal tax obligations arising from the Compensation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The Company agrees to reimburse you for out-of-pocket expenses incurred by you in connection with your service provided that such expenses are against original and valid receipts and pre-approved by the Company in writing; provided that such approval shall not be unreasonably withheld ("<u>Expenses</u>"). An itemized invoice must be submitted to the Company within fifteen (15) days following the end of each calendar month for Expenses incurred during such month in order to be eligible for reimbursement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) For the avoidance of any doubt the aforementioned Compensation reimbursement of Expenses constitute the full and final consideration for your appointment, and no additional consideration of any kind is payable to you for your services as a director.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) In addition to any right pursuant to applicable law, occasions may arise when you consider that you need professional advice in furtherance of your duties as a director. Circumstances may occur when it will be appropriate for you to seek such advice from independent advisors at the Company's expense, to the extent provided under applicable law and subject to the prior written approval of a majority of the independent directors of the Company.

SECTION 3. <u>Term and Termination</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The term of your appointment shall be for one Year or until the next Annual Meeting of Stockholders unless terminated earlier as provided herein unless the Board of Directors decides otherwise. For the purposes of this Agreement, a "<u>Year</u>" of service is deemed to run from January 1 of a year through December 31 of such year.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) This appointment shall terminate immediately and without claim for compensation on the occurrence of any of the following events:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) if
 you resign as a director of the Company for any reason;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) if
 you are removed and not re-appointed as a director of the Company at a meeting of shareholders
 of the Company duly called for the purpose of the election or appointment of directors in
 accordance with the requirements of the law of the State of Nevada and the articles of association
 and by laws of the Company, and. for so long as any securities of the Company are listed
 on one or more securities exchanges, the requirements of such securities exchanges;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) if
 you have been declared bankrupt or made an arrangement or composition with or for the benefit
 of your creditors; and/or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) if
 you have been disqualified from acting as a director (including, but not limited to, an event
 in which you are declared insane or become of unsound mind or become physically incapable
 of performing your functions as a director for a period of at least 60 days);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) upon
 your death;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) if
 an order of a court having jurisdiction over the Company requires you to resign;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) your
 conviction of, or plea of guilty or nolo contendere to, a felony;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii) your
 willful misconduct that causes material harm to the Company, or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ix) your
 material breach of this Agreement that remains uncured for thirty (30) days after written
 notice thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Any termination of your appointment under this Agreement shall be without payment of damages or compensation (except that you shall be entitled to any accrued Compensation or Expenses properly incurred prior to the date of such termination pursuant to Section 2 of this Agreement).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) On termination of your appointment under this Agreement, you shall return all property belonging to the Company, any of its subsidiaries or any of its affiliated entities, together with all documents, papers, disks and information, howsoever stored, relating to any of them and used by you in connection with your position with the Company.

SECTION 4. <u>Non-Competition</u>. Subject to the proper performance of your obligations to the Company under this Agreement, the articles of incorporation of the Company, its bylaws any applicable law, the Company agrees that Director will be free to accept other appointments and directorships provided that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Prior
 written approval is obtained from the Board of Directors;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Such
 other appointments and/or directorships do not in any way conflict with the interests of
 the Company, its subsidiaries or its affiliated entities and do not restrict the Director
 from devoting the necessary time and attention properly to services to be performed under
 this Agreement; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) In
 the event that you become aware of any potential conflicts of interest, these must be disclosed
 to the Chairman of the Board of Directors as soon as they become apparent.

SECTION 5. <u>Confidential Information</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) You agree to maintain in strict confidentiality all trade, business, technical or other information regarding the Company, its subsidiaries, its affiliated entities and their business affairs including, without limitation, all marketing, sales, technical and business know-how, intellectual property, trade secrets, identity and requirements of customers and prospective customers, the Company's methods of doing business and any and all other information relating to the operation of the Company (collectively, "<u>Confidential Information</u>"). You shall at no time disclose any Confidential Information to any person, firm, or entity, for any purpose unless such disclosure is required in order to fulfill your responsibilities as director. You further undertake that you shall not use such Confidential Information for personal gain.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) "<u>Confidential Information</u>" shall not include information that (i) is or becomes part of the public domain other than as a result of disclosure by you, (ii) becomes available to you on a non-confidential basis from a source other than the Company, provided that the source is not bound with respect to that information by a confidentiality agreement with the Company, its subsidiaries or its affiliated entities or is otherwise prohibited from transmitting that information by a contractual legal or fiduciary obligation, or (iii) can be proven by you to have been in your possession prior to disclosure of the information by the Company. In the even that you are requested or required (by oral questions, interrogators, requests for information or documents, subpoena, civil investigative demand or other process) to disclose any Confidential Information, it is agreed that you, to the extent practicable under the circumstances, will provide the Company with prompt notice of any such request or requirement so that the Company may seek an appropriate protective order or waive compliance with this Section 5(b). If a protective order or the receipt of a waiver hereunder has not been obtained, you may disclose only that portion of the Confidential Information which you are legally compelled to disclose.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The obligations of confidentiality under this Section 5 shall survive for a period of one (1) years following the termination of this Agreement, except with respect to trade secrets, which shall remain subject to confidentiality for so long as they remain trade secrets under applicable law.

SECTION 6. <u>Company Policies</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Insider Trading Policy</u>. You understand that the Company has adopted an Insider Trading Policy to, among other things, ensure that trading of the Company's securities by directors, officers and employees of the Company remains in compliance with applicable securities and other laws and regulations. Pursuant to this policy, no officer, director or employee may engage in transactions in shares of our Common Stock during a "quiet period", which will normally commence on the last day of an interim or annual financial period and end on the trading day following the issuance of a press release or other document disclosing the results for the period. If you have information concerning our financial results at any time as a consequence of being a member of any of the committees of the Board of Directors, you may not engage in transactions in our securities until the information is publicly disclosed. You recognize that some or all of the Confidential Information may be relevant to the price or value of the Company's securities, and you will not use any such Confidential Information in any way that breaches insider trading provisions of any applicable securities laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Code of Business Conduct and Ethics</u>. You understand that the Company has adopted a Code of Business Conduct and Ethics to deter wrongdoing and to promote, among other things, honest and ethical conduct and to ensure to the greatest possible extent that the Company's business is conducted in a consistently legal and ethical manner.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Clawback Policy</u>. You understand that the Company has adopted a Policy for Recoupment of Incentive Compensation (the "<u>Clawback Policy</u>") relating to annual or short-term incentive compensation, performance-based restricted stock, other performance-based compensation, and such other compensation as may be designated by resolution of the Board as being subject to the terms of the Clawback Policy and that all such compensation or remuneration shall be subject to such policy, a copy of which you hereby acknowledge receipt, and whose terms are hereby incorporated by reference, as such policy may be amended from time to time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Compliance</u>. You shall procure that you comply at all times with the Company's Insider Trading Policy, the Company's the Code of Business Conduct and Ethics and such other policies as the Board of Directors of the Company may adopt from time to time, each as in effect from time to time.

SECTION 7. <u>Indemnification</u>. The Company will indemnify and defend Director and hold Director harmless against any liability incurred in the performance of Director's service on the Board of Directors pursuant to this Agreement to the fullest extent authorized in Company's articles of incorporation, as amended, bylaws, as amended, applicable law and as provided in any indemnification agreements the Company may enter into with the Director. The Company has or will in a timely manner purchase Director's and Officer's liability insurance, and Director shall be entitled to the protection of any insurance policies the Company maintains for the benefit of its directors and officers against all costs, charges and expenses in connection with any action, suite or proceeding to which the Director may be made a party by reason of affiliation with the Company, its subsidiaries, or affiliates or the performance by Director of the services as a director of the Company pursuant to this Agreement.

SECTION 8. <u>Insurance</u>. The Company will procure and maintain, upon such terms and in such amounts as the Company shall from time to time determine, directors' and officers' liability insurance as soon as possible after the date of this Agreement and will use commercial reasonable effort to maintain such coverage for the full term of your appointment. Such insurance and tail coverage shall be maintained at levels at least as favorable as those provided to any other director or officer of the Company.

SECTION 9. <u>Representations on Authority of Parties/Signatories</u>. Each party represents and warrants to the other that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) he
 or it has legal capacity to execute and deliver this Agreement, and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) has
 duly executed and delivered this Agreement and that this Agreement constitutes the legal,
 valid and binding obligation of such party, enforceable against such party in accordance
 with its terms.

SECTION 10. <u>Entire Agreement</u>. This Agreement constitutes the entire agreement between you and the Company and supersedes all previous agreements, promises, representations and undertakings between both parties, whether written or oral, relating to its subject matter.

SECTION 11. <u>Waivers</u>. The failure of any party at any time to require performance of any provision or to resort to any remedy provided under this Agreement shall in no way affect the right of that party to require performance or to resort to a remedy at any time thereafter, nor shall the waiver by any party of a breach be deemed to be a waiver of any subsequent breach. A waiver shall not be effective unless it is in writing and signed by the party against whom the waiver is being enforced.

SECTION 12. <u>Amendments</u>. This Agreement may be amended or modified only by a written instrument signed by the Director and by a duly authorized representative of the Company.

SECTION 13. <u>Governing Law; Jurisdiction</u>. This Agreement shall be governed by and construed in accordance with the law of the State of Nevada. You irrevocably agree that the courts of the State of Nevada shall have exclusive jurisdiction in relation to any claim, dispute or difference concerning this Agreement, your appointment, and any matter arising therefrom and you irrevocably waive any right that you may have to object to an action being brought in those courts, or to claim that the action has been brought in an inconvenient forum, or that those courts do not have jurisdiction.

SECTION 14. <u>Arbitration</u>. Notwithstanding the foregoing, either you or the Company may elect to resolve any claims and disputes arising under or relating to this Agreement by binding arbitration in the State of Nevada or another location mutually agreeable to you and the Company. The arbitration shall be conducted on a confidential basis pursuant to the Commercial Arbitration Rules of the American Arbitration Association. The seat of arbitration shall be the State of Nevada. The arbitration shall be conducted before a single arbitrator, experienced in the corporate law matters and mutually agreed to by you and the Company. An award of arbitration may be confirmed in a court of competent jurisdiction. Any decision or award as a result of any such arbitration proceeding shall be in writing and shall provide an explanation for all conclusions of law and fact and shall include the assessment of costs, expenses, and reasonable attorneys' fees.

SECTION 15. <u>Notices</u>. Any notice or other communications to be given by one party to the other party under or in connection with this Agreement shall be in writing and signed by or on behalf of the party giving it. Notices to the parties shall be sent to the applicable party as follows:

If to the Company:

Ambitious Entertainment, Inc.

112 W 6th Avenue

Vancouver, British Columbia V5Y 1K6

Canada

Attention: Kirk E. Shaw, Co-President and Interim Chief Executive Officer

E-mail: <u>kirk@ambitious.tv</u>

If to Director:

Patricio Rabuffetti

Calle Marques de Cubas 25, P 3 Derecha

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(28014) Madrid

Spain

E-mail: <u>patricio@nonstoptv.com</u>

Any notice or request shall be deemed to have been delivered: (a) on the delivery date if delivered personally to the party to whom the same is directed (where such day does not fall on a business day, delivery shall be deemed to be on the first business day following); (b) on the delivery date if delivered by email with an original delivered by another means within seventy-two (72) hours thereafter (where such day does not fall on a business day, delivery shall be deemed to be on the first business day following); or (c) one (1) business day after deposit with a reputable commercial overnight carrier.

 

*[Signature Page Follows]*

IN WITNESS WHEREOF, each of the parties have executed or caused to be executed on its behalf by a duly authorized person as of the date first above written.

---

| | |
|:---|:---|
| **AMBITIOUS ENTERTAINMENT, INC.** | **AMBITIOUS ENTERTAINMENT, INC.** |
| By: | */s/ Kirk E. Shaw* |
|  | Kirk E. Shaw |
|  | Co-President and Interim Chief Executive Officer |
| ***/s/ Patricio Rabuffetti*** | ***/s/ Patricio Rabuffetti*** |
| **Patricio Rabuffetti** | **Patricio Rabuffetti** |

---

## Exhibit 10.11

**Exhibit 10.11**

**SECURITIES PURCHASE AGREEMENT**

This Securities Purchase Agreement (this "**Agreement**") is entered into and made effective as of April 1, 2026, by and among Ambitious Entertainment, Inc., a Nevada corporation (the "**Company**"), each purchaser identified on the signature pages hereto (each, including its successors and assigns, a "**Purchaser**" and collectively the "**Purchasers**").

**<u>RECITALS</u>**

WHEREAS, subject to the terms and conditions set forth in this Agreement and pursuant to an exemption from the registration requirements of Section 5 of the Securities Act contained in Section 4(a)(2) thereof and/or Rule 506(b) of Regulation D thereunder, the Company desires to issue and sell to each Purchaser, and each Purchaser, severally and not jointly, desires to purchase from the Company, securities of the Company as more fully described in this Agreement;

WHEREAS, the Company has authorized a new series of convertible preferred stock of the Company designated as Series A Convertible Preferred Stock, par value $0.0001 per share (together with any convertible preferred shares issued in replacement thereof in accordance with the terms thereof, the "**Series A Preferred Stock**"), the terms of which are set forth in the Certificate of Designations, Preferences and Rights of the Series A Convertible Preferred Stock of the Company filed with the Secretary of State of the State of Nevada (the "**Series A COD**");

WHEREAS, the Company desires to sell up to 69 units (each, a "**Unit**" and collectively, the "**Units**"), with each unit consisting of (i) 10,000 shares of its Series A Preferred Stock; and (ii) 100,000 warrants to purchase 100,000 shares of its Common Stock, par value $0.0001 per share (the "**Common Stock**") (each a "**Warrant**" and collectively, the "**Warrants**"), with each Warrant exercisable for up to 100,000 shares of Common Stock (each such share, a "**Warrant Share**" and collectively, the "**Warrant Shares**") at the exercise price set forth in such Warrant for a term of three (3) years from the date of issuance, substantially in the form attached hereto as <u>Exhibit "A</u>", at a purchase price of US$32,000 per Unit (the "**Purchase Price**"), upon the terms and subject to the conditions contained in this Agreement; and

WHEREAS, each Purchaser desires to purchase, and the Company desires to sell, upon the terms and conditions set forth herein, such number of Units as specified below such Purchaser's name on the signature page of this Agreement.

**<u>AGREEMENT</u>**

NOW, THEREFORE, IN CONSIDERATION of the mutual covenants contained in this Agreement, and for other good and valuable consideration the receipt and adequacy of which are hereby acknowledged, the Company and each Purchaser agree as follows:

ARTICLE 1.

DEFINITIONS

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1. Definitions. For the purposes of this Agreement, the following words and phrases have the meanings set forth in this <u>Section 1.1</u>:

"**Acquiring Person**" shall have the meaning ascribed to such term in <u>Section 4.5</u>.

"**Action**" shall have the meaning ascribed to such term in <u>Section 3.1(j)</u>.

"**Affiliate**" means any Person that, directly or indirectly through one or more intermediaries, controls or is controlled by or is under common control with a Person as such terms are used in and construed under Rule 405 under the Securities Act.

"**Agreement**" shall have the meaning ascribed to such term in the preamble.

"**BHCA**" shall have the meaning ascribed to such term in <u>Section 3.1(pp)</u>.

"**Board of Directors**" or "**Board**" means the board of directors of the Company.

"**Charter**" means the Certificate of Incorporation of the Company.

"**Closing**" shall have the meaning ascribed to such term in <u>Section 2.2</u>.

"**Closing Date**" means, as to each Purchaser, the date on which all of the Transaction Documents have been executed and delivered by the applicable parties thereto and all conditions precedent to (i) such Purchasers' obligations to pay the Subscription Amount and (ii) the Company's obligations to issue and deliver the Securities have been satisfied or waived, which date shall be no later than the second (2nd) Business Day following the date hereof, unless otherwise agreed by the Company and such Purchasers.

"**Closing Price**" means, for any security on any Trading Day, (i) the official closing price for such security on the Principal Market, as reported by Bloomberg or, if not available, as reported by OTC Markets Group Inc. (or any successor), or (ii) if no such trade price is available for that Trading Day, the fair market value of such security as determined in good faith by the Board of Directors of the Company.

"**Common Stock**" means the common stock of the Company, par value $0.0001 per share, and any other class of securities into which such securities may hereafter be reclassified or changed.

"**Common Stock Equivalents**" means any securities of the Company or its Subsidiaries which would entitle the holder thereof to acquire Common Stock at any time, including, without limitation, any debt, preferred stock, right, option, warrant or other instrument that is at any time convertible into or exercisable or exchangeable for, or otherwise entitles the holder thereof to receive, Common Stock.

"**Company**" shall have the meaning ascribed to such term in the preamble. "**Consent**" shall have the meaning ascribed to such term in <u>Section 4.6</u>.

"**Conversion Shares**" means the shares of Common Stock issuable upon conversion of the Series A Shares.

"**Disqualification Event**" shall have the meaning ascribed to such term in <u>Section 3.1(ll)</u>.

"**DTC**" shall have the meaning ascribed to such term in <u>Section 3.1(w)</u>.

"**Effective Date**" shall have the meaning ascribed to such term in <u>Section 4.1(c)</u>.

"**Environmental Laws**" shall have the meaning ascribed to such term in <u>Section 3.1(m)</u>.

"**Evaluation Date**" shall have the meaning ascribed to such term in <u>Section 3.1(s)</u>.

"**Exchange Act**" means the Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated thereunder.

"**Exempt Issuance**" means (a) equity securities issued by reason of a dividend, stock split, split-up or other distribution on Common Stock, (b) Common Stock or rights, warrants or options to purchase Common Stock issued to employees or directors of, or consultants or advisors to, the Company or any of its Subsidiaries pursuant to a plan, agreement or arrangement approved by the Board of Directors, (c) Common Stock or rights, warrants or options to purchase Common Stock issued to a seller of stock or assets to the Company or any of its subsidiaries as acquisition consideration pursuant to the acquisition of another corporation by the Company by merger, purchase of substantially all of the assets or other reorganization or to a joint venture agreement, (d) Common Stock or rights, warrants or options to purchase Common Stock issued to banks, equipment lessors or other financial institutions, or to real property lessors, pursuant to a debt financing, equipment leasing or real property leasing transaction resulting in aggregate proceeds, in a single or multiple transactions, not to exceed $1,000,000.00, or (e) securities issued or issuable pursuant to this Agreement or any other Transaction Document, including, without limitation, (i) the issuance of Series A Preferred Stock, (ii) the issuance of Conversion Shares upon conversion of shares of Series A Preferred Stock, and (iii) the issuance of Warrant Shares upon the exercise of the Warrants, in each case in accordance with the terms of the applicable Transaction Documents, as in effect on the date hereof, provided, that, in the case of clauses (d) and (e), such securities shall not constitute an Exempt Issuance if the terms of such securities have been amended to increase the number of shares issuable thereunder, decrease the applicable exercise, exchange or conversion price, or extend the term thereof.

"**FCPA**" means the Foreign Corrupt Practices Act of 1977, as amended.

"**Federal Reserve**" shall have the meaning ascribed to such term in <u>Section 3.1(pp)</u>.

"**GAAP**" shall have the meaning ascribed to such term in <u>Section 3.1(h)</u>.

"**Hazardous Materials**" shall have the meaning ascribed to such term in <u>Section 3.1(m)</u>.

"**Indebtedness**" shall have the meaning ascribed to such term in <u>Section 3.1(aa)</u>.

"**Intellectual Property**" means all of the following in any jurisdiction throughout the world: (a) all inventions (whether patentable or unpatentable and whether or not reduced to practice), all improvements thereto, and all U.S. and foreign patents, patent applications, and patent disclosures, together with all reissuances, continuations, continuations-in-part, revisions, extensions, and reexaminations thereof, (b) all trademarks, service marks, brand names, certification marks, trade dress, logos, trade names, domain names, assumed names and corporate names, together with all colorable imitations thereof, and including all goodwill associated therewith, and all applications, registrations, and renewals in connection therewith, (c) all copyrights, and all applications, registrations, and renewals in connection therewith, (d) all trade secrets under applicable state laws and the common law and know-how (including formulas, techniques, technical data, designs, drawings, specifications, customer and supplier lists, pricing and cost information, and business and marketing plans and proposals), (e) all computer software (including source code, object code, diagrams, data and related documentation), and (f) all copies and tangible embodiments of the foregoing (in whatever form or medium).

"**Issuer Covered Person**" and "**Issuer Covered Persons**" shall have the meanings ascribed to such terms in <u>Section 3.1(ll)</u>.

"**Laws**" means any U.S. federal, state, local, foreign or other laws, rules regulations, guidelines, orders, injunctions, building and other codes, ordinances, permits, licenses, authorizations, judgements, decrees of federal, state, local, foreign or other authorities, and all orders, writs, decrees and consents of any governmental or political subdivision or agency thereof, or any court of similar tribunal established by any such governmental or political subdivision or agency thereof.

"**Legend Removal Date**" shall have the meaning ascribed to such term in <u>Section 4.1(c)</u>.

"**Liens**" means a lien, charge, pledge, security interest, encumbrance, right of first refusal, preemptive right or other restriction.

"**Material Adverse Effect**" shall have the meaning assigned to such term in <u>Section 3.1(b)</u>.

"**Material Permits**" shall have the meaning ascribed to such term in <u>Section 3.1(n)</u>.

"**Money Laundering Laws**" shall have the meaning ascribed to such term in <u>Section 3.1(qq)</u>.

"**National Securities Exchange**" means any United States national securities exchange on which the securities of the Company are listed for trading, including, but not limited to, The Nasdaq Stock Market LLC, the NYSE American LLC, or the New York Stock Exchange LLC.

"**OFAC**" shall have the meaning ascribed to such term in <u>Section 3.1(nn)</u>.

"**Person**" means an individual or corporation, partnership, trust, incorporated or unincorporated association, joint venture, limited liability company, joint stock company, government (or an agency or subdivision thereof) or other entity of any kind.

"**Principal Market**" means primary market on which the Company's Common Stock is then listed or quoted for trading, including, without limitation, The New York Stock Exchange, the NYSE American, the Nasdaq Global Select Market, the Nasdaq Global Market, the Nasdaq Capital Market, OTCPink, OTCQB, or OTCQX and any successor markets thereto.

"**Proceeding**" means an action, claim, suit, investigation or proceeding (including, without limitation, an informal investigation or partial proceeding, such as a deposition), whether pending or to the Company's knowledge, threatened in writing against or affecting the Company, any Subsidiary or any of their respective properties before any court, arbitrator, governmental or administrative agency or regulatory authority.

"**Purchaser**" and "**Purchasers**" shall have the meanings ascribed thereto in the preamble.

"**Purchaser Party**" shall have the meaning ascribed to such term in <u>Section 4.8</u>.

"**Purchase Price**" shall have the meaning ascribed to such term in the recitals.

"**Regulation FD**" means Regulation FD promulgated by the SEC pursuant to the Exchange Act, as such Regulation may be amended or interpreted from time to time, or any similar rule or regulation hereafter adopted by the SEC having substantially the same purpose and effect as such Regulation.

"**Required Approvals**" shall have the meaning ascribed to such term in <u>Section 3.1(e)</u>.

"**Rule 144**" means Rule 144 promulgated by the SEC pursuant to the Securities Act, as such Rule may be amended or interpreted from time to time, or any similar rule or regulation hereafter adopted by the SEC (or similar United States law) having substantially the same purpose and effect as such Rule.

"**Series A Shares**" means as to each Purchaser, the shares of Series A Preferred Stock issued to such Purchaser pursuant to this Agreement.

"**SEC**" means the United States Securities and Exchange Commission.

"**Securities**" shall have the meaning ascribed to such term in <u>Section 2.1(b)</u>.

"**Securities Act**" means the Securities Act of 1933, and the rules and regulations promulgated thereunder.

"**Series A COD**" shall have the meaning ascribed to such term in the recitals.

"**Series A Preferred Stock**" shall have the meaning ascribed to such term in the recitals.

"**Short Sales**" means all "short sales" as defined in Rule 200 of Regulation SHO under the Exchange Act (but shall not be deemed to include the location and/or reservation of borrowable shares of Common Stock).

"**Subscription Amount**" means, as to each Purchaser, the aggregate amount to be paid for the Units purchased hereunder as specified below such Purchaser's name on the signature page of this Agreement and next to the heading.

"**Subsidiary**" means with respect to any entity at any date, any direct or indirect corporation, limited or general partnership, limited liability company, trust, estate, association, joint venture or other business entity of which (a) more than 50% of (i) the outstanding capital stock having (in the absence of contingencies) ordinary voting power to elect a majority of the board of directors or other managing body of such entity, (ii) in the case of a partnership or limited liability company, the interest in the capital or profits of such partnership or limited liability company or (iii) in the case of a trust, estate, association, joint venture or other entity, the beneficial interest in such trust, estate, association or other entity business is, at the time of determination, owned or controlled directly or indirectly through one or more intermediaries, by such entity, or (b) is under the actual control of the Company.

"**Trading Day**" means a day on which the Principal Market is open for trading.

"**Transaction Documents**" means this Agreement, the Series A COD, all schedules and exhibits thereto and hereto and any other documents or agreements executed in connection with the transactions contemplated hereunder.

"**Transfer Agent**" means Pacific Stock Transfer Company.

"**VWAP**" means, for any date, the price determined by the first of the following clauses that applies:(a) if the Common Stock is then listed or quoted on a Principal Market, the daily volume weighted average price of the Common Stock for such date (or the nearest preceding date) on the Principal Market on which the Common Stock is then listed or quoted as reported by Bloomberg L.P. (based on a Trading Day from 9:30 a.m. (New York City time) to 4:02 p.m. (New York City time)) (or a similar organization or agency succeeding to its functions of reporting prices), (b) if no volume weighted average price of the Common Stock can be ascertained from the Principal Market, the average closing price of the Common Stock during the ten (10) Trading Days preceding such date, or (c) in all other cases, the fair market value of a share of Common Stock as determined by the Board of Directors.

"**Warrant**" shall have the meaning ascribed to such term in the Recitals.

"**Warrant Shares**" shall have the meaning ascribed to such term in the Recitals.

"**Unit Offering**" shall mean the offering and sale of Units by the Company during the fiscal years ended December 31, 2023 and December 31, 2024, pursuant to which the Company issued units, each consisting of: (i) a senior secured convertible promissory note in the principal amount of $25,000 per unit, bearing interest at a rate of 7% per annum, with a term of one year for units issued during fiscal year 2023 and two years for Units issued during fiscal year 2024; (ii) a five-year Series B warrant to purchase shares of Common Stock at an aggregate exercise price of $25,000 per Unit (each, a "**Series B Warrant**"); and (iii) a five-year Series C warrant to purchase shares of Common Stock at an aggregate exercise price of $25,000 per Unit (each, a "**Series C Warrant**," and together with the Series B Warrants, the "**Unit Offering Warrants**").

ARTICLE 2.

PURCHASE AND SALE

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1. **Sale and Purchase of the Securities**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Subject to the terms and conditions of this Agreement, each Purchaser agrees to purchase, and the Company agrees to sell and issue to such Purchaser, at the Closing (as defined below) the number of Units set forth opposite such Purchaser's name on the signature page hereto. The aggregate number of Units to be sold to all Purchasers at the Closing shall be up to 69 Units, for an aggregate purchase price payable by all Purchasers not to exceed $2,208,000. There is no minimum number of Units or minimum aggregate Subscription Amount required as a condition to any Closing, and the Company may consummate the transactions contemplated hereby with one or more Purchasers from time to time (including in one or more Closings) without waiting for the sale of all Units. The Series A Shares and the shares of Common Stock issued or issuable upon conversion thereof, the Warrants, and the Warrant Shares are referred to herein collectively as the "**Securities**."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2. <u>Closing</u>. The purchase and sale of the Securities shall take place remotely via the exchange of documents and signatures, 12:00 p.m., on April __, 2026 (provided that, with respect to any Purchaser, the Closing may occur on a different date agreed in writing between the Company and such Purchaser, and the Company may conduct one or more subsequent closings with other Purchasers without any minimum aggregate subscription condition**),** or at such other time and place as the Company and the Purchasers mutually agree upon, orally or in writing (which time and place are designated as the "**Closing**").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.3. <u>Deliveries</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) On or prior to the Closing, the Company shall deliver or cause to be delivered to each Purchaser the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) This Agreement, duly executed by the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) The Warrants, duly executed by the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) The Series A Shares, issued in book-entry form, duly credited to each Purchaser's account at the Company's transfer agent, free and clear of all liens and encumbrances, other than applicable securities law restrictions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) On or prior to the Closing, each Purchaser shall deliver or cause to be delivered the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) To the Company, this Agreement, duly executed by such Purchaser;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) To the Company, such Purchaser's Subscription Amount, by wire transfer of immediately available funds in accordance with the wire instructions provided by the Company (which funds shall be wired directly to the Company, and not to any escrow or holdback account, and shall be available for immediate use by the Company upon receipt) and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) To the Company, such other information, certificates, or documents reasonably requested to consummate the transactions contemplated by this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.4. <u>Closing Conditions</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The obligations of the Company hereunder in connection with each applicable Closing are subject to the following conditions being met:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the accuracy in all material respects (or, to the extent representations or warranties are qualified by materiality or Material Adverse Effect, in all respects) on the applicable Closing Date of the representations and warranties of each Purchaser contained herein (unless as of a specific date therein in which case they shall be accurate as of such date);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) all obligations, covenants and agreements of each Purchaser required to be performed at or prior to the Closing Date shall have been performed in all material respects; and<br>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) the delivery by each Purchaser of the items set forth in <u>Section 2.3(b)</u> of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The respective obligations of the Purchasers hereunder in connection with the Closing are subject to the following conditions being met:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the accuracy in all respects (or, to the extent representations or warranties are qualified by materiality or Material Adverse Effect, in all respects) when made and on the Closing Date of the representations and warranties of the Company contained herein (unless as of a specific date therein in which case they shall be accurate as of such date);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) all obligations, covenants and agreements of the Company required to be performed at or prior to the Closing Date shall have been performed;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Solely with respect to the Closing, the delivery by the Company of the items set forth in <u>Section 2.3(a)</u> of this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) there shall have been no Material Adverse Effect with respect to the Company since the date hereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) from the date hereof to the Closing Date trading in the Common Stock shall not have been suspended by the SEC or the Company's Principal Market, and, at any time prior to the Closing Date, trading in securities generally as reported by Bloomberg L.P. shall not have been suspended or limited, or minimum prices shall not have been established on securities whose trades are reported by such service, or on any Principal Market, nor shall a banking moratorium have been declared either by the United States or New York State authorities nor shall there have occurred any material outbreak or escalation of hostilities or other national or international calamity of such magnitude in its effect on, or any material adverse change in, any financial market which, in each case, in the reasonable judgment of such Purchaser, makes it impracticable or inadvisable to purchase the Securities at the Closing.

ARTICLE 3.

REPRESENTATIONS AND WARRANTIES

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1. <u>Representations and Warranties of the Company</u>. The Company hereby represents and warrants to each Purchaser that the following representations in this Section 3.1 are true and complete as of the date of the Closing, except as otherwise indicated.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Subsidiaries</u>. The Company owns, directly or indirectly, all of the capital stock or other equity interests of each Subsidiary free and clear of any Liens, and all of the issued and outstanding shares of capital stock of each Subsidiary are validly issued and are fully paid, non-assessable and free of preemptive and similar rights to subscribe for or purchase securities. If the Company has no subsidiaries, all other references to the Subsidiaries or any of them in the Transaction Documents shall be disregarded.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Organization and Qualification</u>. The Company and each of the Subsidiaries is an entity duly incorporated or otherwise organized, validly existing and in good standing under the laws of the jurisdiction of its incorporation or organization, with the requisite power and authority to own and use its properties and assets and to carry on its business as currently conducted. Neither the Company nor any Subsidiary is in violation nor default of any of the provisions of its respective Charter, bylaws or other organizational or charter documents. Each of the Company and the Subsidiaries is duly qualified to conduct business and is in good standing as a foreign corporation or other entity in each jurisdiction in which the nature of the business conducted or property owned by it makes such qualification necessary, except where the failure to be so qualified or in good standing, as the case may be, could not have or reasonably be expected to result in: (i) a material adverse effect on the legality, validity or enforceability of any Transaction Document, (ii) a material adverse effect on the results of operations, assets, business, prospects or condition (financial or otherwise) of the Company and the Subsidiaries, taken as a whole, or (iii) a material adverse effect on the Company's ability to perform in any material respect on a timely basis its obligations under any Transaction Document (any of (i), (ii) or (iii), a "**Material Adverse Effect**") and no Proceeding has been instituted in any such jurisdiction revoking, limiting or curtailing or seeking to revoke, limit or curtail such power and authority or qualification.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Authorization; Enforcement</u>. The Company has the requisite power and authority to enter into and to consummate the transactions contemplated by this Agreement and each of the other Transaction Documents and otherwise to carry out its obligations hereunder and thereunder. The execution and delivery of this Agreement and each of the other Transaction Documents by the Company and the consummation by it of the transactions contemplated hereby and thereby have been duly authorized by all necessary action on the part of the Company and no further action is required by the Company, the Board of Directors or the Company's stockholders in connection herewith or therewith other than in connection with the Required Approvals. Subject to obtaining the Required Approvals, this Agreement and each other Transaction Document to which it is a party has been (or upon delivery will have been) duly executed by the Company and, when delivered in accordance with the terms hereof and thereof, will constitute the valid and binding obligation of the Company enforceable against the Company in accordance with its terms, except (i) as limited by general equitable principles and applicable bankruptcy, insolvency, reorganization, moratorium and other laws of general application affecting enforcement of creditors 'rights generally, (ii) as limited by laws relating to the availability of specific performance, injunctive relief or other equitable remedies and (iii) insofar as indemnification and contribution provisions may be limited by applicable law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>No Conflicts</u>. The execution, delivery and performance by the Company of this Agreement and the other Transaction Documents to which it is a party, the issuance and sale of the Securities and the consummation by it of the transactions contemplated hereby and thereby do not and will not (i) subject to the Required Approvals, conflict with or violate any provision of the Company's or any Subsidiary's Charter, bylaws or other organizational or charter documents, or (ii) constitute a default (or an event that with notice or lapse of time or both would become a default) under, result in the creation of any Lien upon any of the properties or assets of the Company or any Subsidiary, or give to others any rights of termination, amendment, acceleration or cancellation (with or without notice, lapse of time or both) of, any agreement, credit facility, debt or other instrument (evidencing a Company or Subsidiary debt or otherwise) or other understanding to which the Company or any Subsidiary is a party or by which any property or asset of the Company or any Subsidiary is bound or affected, or (iii) subject to the Required Approvals, conflict with or result in a violation of any law, rule, regulation, order, judgment, injunction, decree or other restriction of any court or governmental authority to which the Company or a Subsidiary is subject (including federal and state securities laws and regulations), or by which any property or asset of the Company or a Subsidiary is bound or affected; except in the case of each of clauses (ii) and (iii), such as could not have or reasonably be expected to result in a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Filings, Consents and Approvals</u>. The Company is not required to obtain any consent, waiver, authorization or order of, give any notice to, or make any filing or registration with, any court or other federal, state, local or other governmental authority or other Person in connection with the execution, delivery and performance by the Company of the Transaction Documents, other than: (i) application(s) to each applicable Principal Market for the listing of the Conversion Shares for trading thereon in the time and manner required thereby, (ii) the majority of holders of securities in the Unit Offering, or (iii) such filings as are required to be made under applicable state or federal securities laws (collectively, the "**Required Approvals**").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Issuance of the Securities</u>. The Securities are duly authorized and, when issued and paid for in accordance with the applicable Transaction Documents, will be duly and validly issued, fully paid and nonassessable, free and clear of all Liens imposed by the Company. The Conversion Shares, when issued upon conversion of the Series A Shares in accordance with the terms of the Series A COD will be validly issued, fully paid and nonassessable, free and clear of all Liens imposed by the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>Capitalization</u>. The capitalization of the Company as of the date hereof consists of (i) [●] shares of Common Stock authorized, of which [●] shares are issued and outstanding, and (ii) [●] shares of Series A Convertible Preferred Stock authorized, of which [●] shares are issued and outstanding. The number of shares of Common Stock owned beneficially, and of record, by Affiliates of the Company as of the date hereof is [●] shares. No Person has any right of first refusal, preemptive right, right of participation, or any similar right to participate in the transactions contemplated by the Transaction Documents. Except for the Unit Offering Warrants, there are no outstanding warrants, scrip rights to subscribe to, calls or commitments of any character whatsoever relating to, or securities, rights or obligations convertible into or exercisable or exchangeable for, or giving any Person any right to subscribe for or acquire, any shares of Common Stock or the capital stock of any Subsidiary, or contracts, commitments, understandings or arrangements by which the Company or any Subsidiary is or may become bound to issue additional shares of Common Stock or Common Stock Equivalents or capital stock of any Subsidiary. The issuance and sale of the Securities will not obligate the Company or any Subsidiary to issue shares of Common Stock or other securities to any Person (other than the Purchasers) and will not result in a right of any holder of Company securities to adjust the exercise, conversion, exchange or reset price under any of such securities. There are no outstanding securities or instruments of the Company or any Subsidiary that contain any redemption or similar provisions, and there are no contracts, commitments, understandings or arrangements by which the Company or any Subsidiary is or may become bound to redeem a security of the Company or such Subsidiary. The Company does not have any stock appreciation rights or "phantom stock" plans or agreements or any similar plan or agreement. All of the outstanding shares of capital stock of the Company are duly authorized, validly issued, fully paid and nonassessable, have been issued in compliance with all federal and state securities laws, and none of such outstanding shares was issued in violation of any preemptive rights or similar rights to subscribe for or purchase securities. Except for required approvals, no further approval or authorization of any stockholder, the Board of Directors or others is required for the issuance and sale of the Securities. There are no stockholders agreements, voting agreements or other similar agreements with respect to the Company's capital stock to which the Company is a party or, to the knowledge of the Company, between or among any of the Company's stockholders.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) <u>Reserved.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Material Changes; Undisclosed Events, Liabilities or Developments</u>. There has been no event, occurrence or development that has had or that could reasonably be expected to result in a Material Adverse Effect, (i) the Company has not incurred any liabilities (contingent or otherwise) other than (A) trade payables and accrued expenses incurred in the ordinary course of business consistent with past practice, and (B) liabilities not required to be reflected in the Company's financial statements pursuant to GAAP (ii) the Company has not altered its method of accounting, (iv) the Company has not declared or made any dividend or distribution of cash or other property to its stockholders or purchased, redeemed or made any agreements to purchase or redeem any shares of its capital stock and (v) the Company has not issued any equity securities to any officer, director or Affiliate, except pursuant to existing Company equity incentive plans. The Company does not have pending before the SEC any request for confidential treatment of information. Except for the issuance of the Securities contemplated by this Agreement, no event, liability, fact, circumstance, occurrence or development has occurred or exists or is reasonably expected to occur or exist with respect to the Company or its Subsidiaries or their respective businesses, prospects, properties, operations, assets or financial condition that would be required to be disclosed by the Company under applicable securities laws at the time this representation is made or deemed made that has not been publicly disclosed at least one Trading Day prior to the date that this representation is made.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) <u>Litigation</u>. To the knowledge of the Company, there is no action, suit, notice of violation, proceeding, investigation, inquiry or other similar proceeding of any federal or state governmental authority pending, or threatened against Company, any Subsidiary or any of their respective properties before or by any court, arbitrator, governmental or administrative agency or regulatory authority (federal, state, county, local or foreign) (collectively, an "**Action**") which (i) adversely affects or challenges the legality, validity or enforceability of any of the Transaction Documents or the issuance of the Securities or (ii) could, if there were an unfavorable decision, have or reasonably be expected to result in a Material Adverse Effect. Neither the Company nor any Subsidiary, nor any director or officer thereof, is or has been the subject of any Action involving a claim of violation of or liability under federal or state securities laws or a claim of breach of fiduciary duty. There has not been, and to the knowledge of the Company, there is not pending or contemplated, any investigation by the SEC involving the Company or any current or former director or officer of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) <u>Labor Relations</u>. No labor dispute exists or, to the knowledge of the Company, is imminent with respect to any of the employees of the Company, which could reasonably be expected to result in a Material Adverse Effect. None of the Company's or its Subsidiaries ' employees is a member of a union that relates to such employee's relationship with the Company or such Subsidiary, and neither the Company nor any of its Subsidiaries is a party to a collective bargaining agreement, and the Company and its Subsidiaries believe that their relationships with their employees are good. To the knowledge of the Company, no effort is underway to unionize or organize the employees of the Company or any Subsidiary. To the knowledge of the Company, no executive officer of the Company or any Subsidiary, is, or is now expected to be, in violation of any material term of any employment contract, confidentiality, disclosure or proprietary information agreement or non-competition agreement, or any other contract or agreement or any restrictive covenant in favor of any third party, and the continued employment of each such executive officer does not subject the Company or any of its Subsidiaries to any liability with respect to any of the foregoing matters. The Company and its Subsidiaries are in compliance with all applicable U.S. federal, state, local and foreign laws and regulations relating to employment and employment practices, terms and conditions of employment and wages and hours, except where the failure to be in compliance could not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect. There is no workmen's compensation liability matter, employment-related charge, complaint, grievance, investigation, inquiry or obligation of any kind pending, or to the Company's knowledge, threatened, relating to an alleged violation or breach by the Company or its Subsidiaries of any law, regulation or contract that could, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect. The Company has no reason to believe that any individual may commence an Action or file a claim with any governmental authority against the Company alleging sexual harassment or any type of discrimination or violation of any Laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) <u>Compliance</u>. Neither the Company nor any Subsidiary: (i) is in default under or in violation of (and no event has occurred that has not been waived that, with notice or lapse of time or both, would result in a default by the Company or any Subsidiary under), nor has the Company or any Subsidiary received notice of a claim that it is in default under or that it is in violation of, any indenture, loan or credit agreement or any other agreement or instrument to which it is a party or by which it or any of its properties is bound (whether or not such default or violation has been waived), (ii) is in violation of any judgment, decree or order of any court, arbitrator or other governmental authority or (iii) is or has been in violation of any statute, rule, ordinance or regulation of any governmental authority, including without limitation all foreign, federal, state and local laws and regulations relating to taxes, healthcare laws, anti-kickback laws, securities, environmental protection, occupational health and safety, product quality and safety, transportation, and employment and labor matters, except in each case as could not have or reasonably be expected to result in a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) <u>Environmental Laws</u>. The Company and its Subsidiaries (i) are in compliance with all federal, state, local and foreign laws relating to pollution or protection of human health or the environment (including ambient air, surface water, groundwater, land surface or subsurface strata), including laws relating to emissions, discharges, releases or threatened releases of chemicals, pollutants, contaminants, or toxic or hazardous substances or wastes (collectively, "**Hazardous Materials**") into the environment, or otherwise relating to the manufacture, processing, distribution, use, treatment, storage, disposal, transport or handling of Hazardous Materials, as well as all authorizations, codes, decrees, demands, or demand letters, injunctions, judgments, licenses, notices or notice letters, orders, permits, plans or regulations, issued, entered, promulgated or approved thereunder ("**Environmental Laws**"); (ii) have received all permits licenses or other approvals required of them under applicable Environmental Laws to conduct their respective businesses; and (iii) are in compliance with all terms and conditions of any such permit, license or approval except in each case of clause (i), (ii) and (iii), the failure to so comply could be reasonably expected to have, individually or in the aggregate, a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) <u>Regulatory Permits</u>. The Company and the Subsidiaries possess all certificates, authorizations and permits issued by the appropriate federal, state, local or foreign regulatory authorities necessary to conduct their respective businesses s, except where the failure to possess such permits could not reasonably be expected to result in a Material Adverse Effect ("**Material Permits**"), and neither the Company nor any Subsidiary has received any notice of proceedings relating to the revocation or modification of any Material Permit.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) <u>Title to Assets</u>. The Company and the Subsidiaries have good and marketable title in fee simple to all real property owned by them and good and marketable title in all personal property owned by them that is material to the business of the Company and the Subsidiaries, in each case free and clear of all Liens, except for (i) Liens as do not materially affect the value of such property and do not materially interfere with the use made and proposed to be made of such property by the Company and the Subsidiaries, and do not materially affect the value of such property, (ii) Liens for the payment of federal, state or other taxes, for which appropriate reserves have been made therefor in accordance with GAAP and, the payment of which is neither delinquent nor subject to penalties; or (iii) Liens which will be released at or prior to Closing in connection with the transactions contemplated by the Transaction Documents. Any real property and facilities held under lease by the Company and the Subsidiaries are held by them under valid, subsisting and enforceable leases with which the Company and the Subsidiaries are in compliance, except where the failure to so comply would not be reasonably expected to have, individually or in the aggregate, a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p) <u>Intellectual Property</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The Company owns or possesses or has the right to use pursuant to a valid and enforceable written license, sublicense, agreement, or permission all Intellectual Property necessary for the operation of the business of the Company as presently conducted, except in each case as could not have or reasonably be expected to result in a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) The Company has no knowledge that the Intellectual Property interferes with, infringe upon, misappropriate, or otherwise come into conflict with, any Intellectual Property rights of third parties, and the Company has no knowledge that facts exist which indicate a likelihood of the foregoing. The Company has not received any charge, complaint, claim, demand, or notice alleging any such interference, infringement, misappropriation, or conflict (including any claim that the Company must license or refrain from using any Intellectual Property rights of any third party). To the knowledge of the Company, all rights to its Intellectual Property are enforceable and no third party has interfered with, infringed upon, misappropriated, or otherwise come into conflict with, any Intellectual Property rights of the Company, except in each case as could not have or reasonably be expected to result in a Material Adverse Effect. The Company and its Subsidiaries have taken reasonable security measures to protect the secrecy, confidentiality and value of all of their intellectual properties, except where failure to do so could not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) None of, and neither the Company nor any Subsidiary has received a notice (written or otherwise) that any of, the Intellectual Property Rights have expired, terminated or been abandoned, or is expected to expire or terminate or be abandoned, within two (2) years from the date of this Agreement, except where such expiration, termination or abandonment would not reasonably be expected to, individually or in the aggregate, have a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q) <u>Insurance</u>. The Company and the Subsidiaries are insured by insurers of recognized financial responsibility against such losses and risks and in such amounts as are prudent and customary in the businesses in which the Company and the Subsidiaries are engaged. Neither the Company nor any Subsidiary has any reason to believe that it will not be able to renew its existing insurance coverage as and when such coverage expires or to obtain similar coverage from similar insurers as may be necessary to continue its business without a significant increase in cost.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(r) <u>Transactions With Affiliates and Employees</u>. None of the officers, directors or Affiliates of the Company or any Subsidiary and, to the knowledge of the Company, none of the employees of the Company or any Subsidiary is presently a party to any transaction with the Company or any Subsidiary (other than for services as employees, officers and directors), including any contract, agreement or other arrangement providing for the furnishing of services to or by, providing for rental of real or personal property to or from, providing for the borrowing of money from or lending of money to or otherwise requiring payments to or from any officer, director, Affiliate or such employee or, to the knowledge of the Company, any entity in which any officer, director, or any such employee has a substantial interest or is an officer, director, trustee, stockholder, member or partner, in each case in excess of $120,000 other than for (i) payment of salary or consulting fees for services rendered, (ii) reimbursement for expenses incurred on behalf of the Company and (iii) other employee benefits, including stock award agreements under any equity incentive plan of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(s) <u>Reserved.</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(t) <u>Certain Fees</u>. No brokerage or finder's fees or commissions are or will be payable by the Company or any Subsidiary to any broker, financial advisor or consultant, finder, placement agent, investment banker, bank or other Person with respect to the transactions contemplated by the Transaction Documents. The Purchasers shall have no obligation with respect to any fees or with respect to any claims made by or on behalf of other Persons for fees of a type contemplated in this <u>Section 3.1(t)</u> that may be due in connection with the transactions contemplated by the Transaction Documents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(u) <u>Investment Company</u>. The Company is not, and is not an Affiliate of, and immediately after receipt of payment for the Securities, will not be or be an Affiliate of, an "investment company" within the meaning of the Investment Company Act of 1940, as amended. The Company shall conduct its business in a manner so that it will not become an "investment company" subject to registration under the Investment Company Act of 1940, as amended.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) <u>Registration Rights</u>. Other than as required pursuant to this Agreement, no Person has any right to cause the Company or any Subsidiary to effect the registration under the Securities Act of any securities of the Company or any Subsidiary. The Company shall not file any other resale registration statement prior to filing the registration statement required hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(w) <u>Reserved</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x) <u>Application of Takeover Protections</u>. The Company and the Board of Directors have taken all necessary action, if any, in order to render inapplicable any control share acquisition, business combination, poison pill (including any distribution under a rights agreement) or other similar anti-takeover provision under the Company's Charter (or similar charter documents) or the Laws of its state of incorporation that is or could become applicable to the Purchasers as a result of the Purchasers and the Company fulfilling their obligations or exercising their rights under the Transaction Documents, including without limitation as a result of the Company's issuance of the Securities and the Purchasers 'ownership of the Securities, the Series A Shares and the Conversion Shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(y) <u>Disclosure</u>. Except with respect to the material terms and conditions of the transactions contemplated by the Transaction Documents, the Company confirms that neither it nor any other Person acting on its behalf has provided any of the Purchasers or their agents or counsel with any information that it believes constitutes or might constitute material, non-public information. The Company understands and confirms that the Purchasers will rely on the foregoing representation in effecting transactions in securities of the Company. All of the disclosure furnished by or on behalf of the Company to the Purchasers regarding the Company and its Subsidiaries, their respective businesses and the transactions contemplated hereby, is true and correct and does not contain any untrue statement of a material fact or omit to state any material fact necessary in order to make the statements made therein, in light of the circumstances under which they were made, not misleading. The press releases disseminated by the Company during the 12 months preceding the date of this Agreement do not contain any untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary in order to make the statements therein, in light of the circumstances under which they were made and when made, not misleading. The Company acknowledges and agrees that no Purchaser makes or has made any representations or warranties with respect to the transactions contemplated hereby other than those specifically set forth in <u>Section 3.2</u> hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(z) <u>No Integrated Offering</u>. Assuming the accuracy of the Purchasers 'representations and warranties set forth in <u>Section 3.2</u>, neither the Company, nor any of its Affiliates, nor any Person acting on its or their behalf has, directly or indirectly, made any offers or sales of any security or solicited any offers to buy any security, under circumstances that would cause this offering of the Securities to be integrated with prior offerings by the Company for purposes of any applicable stockholder approval provisions of any Principal Market on which any of the securities of the Company are listed or designated.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(aa) <u>Indebtedness</u>. Based on the consolidated financial condition of the Company as of the Closing Date, after giving effect to the receipt by the Company of the proceeds from the sale of the Securities hereunder (i) the fair saleable value of the Company's assets exceeds the amount that will be required to be paid on or in respect of the Company's existing debts and other liabilities (including known contingent liabilities) as they mature, (ii) the Company's assets do not constitute unreasonably small capital to carry on its business as now conducted and as proposed to be conducted including its capital needs taking into account the particular capital requirements of the business conducted by the Company, consolidated and projected capital requirements and capital availability thereof, and (iii) the current cash flow of the Company, together with the proceeds the Company would receive, were it to liquidate all of its assets, after taking into account all anticipated uses of the cash, would be sufficient to pay all amounts on or in respect of its liabilities when such amounts are required to be paid. The Company does not intend to incur debts beyond its ability to pay such debts as they mature (taking into account the timing and amounts of cash to be payable on or in respect of its debt). The Company has no knowledge of any facts or circumstances which lead it to believe that it will file for reorganization or liquidation under the bankruptcy or reorganization laws of any jurisdiction within one year from the Closing Date. As of the date hereof, except for the Unit Offering and as otherwise disclosed to the Purchasers, there is no outstanding secured or unsecured Indebtedness of the Company or any Subsidiary, or for which the Company or any Subsidiary has commitments. For the purposes of this Agreement, "Indebtedness" means (x) any liabilities for borrowed money or amounts owed in excess of $100,000 (other than trade accounts payable incurred in the ordinary course of business), (y) all guaranties, endorsements and other contingent obligations in respect of indebtedness of others, whether or not the same are or should be reflected in the Company's consolidated balance sheet (or the notes thereto), except guaranties by endorsement of negotiable instruments for deposit or collection or similar transactions in the ordinary course of business; and (z) the present value of any lease payments in excess of $200,000 due under leases required to be capitalized in accordance with GAAP. Neither the Company nor any Subsidiary is in default with respect to any Indebtedness.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(bb) <u>Tax Status</u>. Except for matters that would not, individually or in the aggregate, have or reasonably be expected to result in a Material Adverse Effect, the Company and its Subsidiaries each (i) has made or filed all United States federal, state and local income and all foreign income and franchise tax returns, reports and declarations required by any jurisdiction to which it is subject, (ii) has paid all taxes and other governmental assessments and charges that are material in amount, shown or determined to be due on such returns, reports and declarations and(iii) has set aside on its books provision reasonably adequate for the payment of all material taxes for periods subsequent to the periods to which such returns, reports or declarations apply. There are no unpaid taxes in any material amount claimed to be due by the taxing authority of any jurisdiction, and the officers of the Company or of any Subsidiary know of no basis for any such claim.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(cc) <u>Foreign Corrupt Practices</u>. Neither the Company nor any Subsidiary, nor to the knowledge of the Company or any Subsidiary, any agent or other person acting on behalf of the Company or any Subsidiary, has (i) directly or indirectly, used any funds for unlawful contributions, gifts, entertainment or other unlawful expenses related to foreign or domestic political activity, (ii) made any unlawful payment to foreign or domestic government officials or employees or to any foreign or domestic political parties or campaigns from corporate funds, (iii) failed to disclose fully any contribution made by the Company or any Subsidiary (or made by any person acting on its behalf of which the Company is aware) which is in violation of Law, or (iv) violated any provision of FCPA.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(dd) <u>Reserved.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ee) <u>Acknowledgment Regarding Purchasers' Purchase of Securities</u>. The Company acknowledges and agrees that each of the Purchasers is acting solely in the capacity of an arm's length purchaser with respect to the Transaction Documents and the transactions contemplated thereby. The Company further acknowledges that no Purchaser is acting as a financial advisor or fiduciary of the Company (or in any similar capacity) with respect to the Transaction Documents and the transactions contemplated thereby and any advice given by any Purchaser or any of their respective representatives or agents in connection with the Transaction Documents and the transactions contemplated thereby is merely incidental to the Purchasers 'purchase of the Securities. The Company further represents to each Purchaser that the Company's decision to enter into this Agreement and the other Transaction Documents has been based solely on the independent evaluation of the transactions contemplated hereby by the Company and its representatives.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ff) <u>Reserved.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(gg) <u>Regulation M Compliance</u>. The Company has not, and to its knowledge no one acting on its behalf has, (i) taken, directly or indirectly, any action designed to cause or to result in the stabilization or manipulation of the price of the Common Stock to facilitate the sale of the Securities, (ii) sold, bid for, purchased, or, paid any compensation for soliciting purchases of, any of the Securities, or (iii) paid or agreed to pay to any Person any compensation for soliciting another to purchase any other securities of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(hh) <u>Stock Option Plans</u>. Each stock option or equity grant was granted by the Company under the Company's equity incentive plan (i) in accordance with the terms of the Company's equity incentive plan and (ii) any option granted had an exercise price at least equal to the fair market value of the Common Stock on the date such stock option would be considered granted under GAAP and applicable law. No stock option granted under the Company's stock option plan has been backdated. The Company has not knowingly granted, and there is no and has been no Company policy or practice to knowingly grant, stock options prior to, or otherwise knowingly coordinate the grant of stock options with, the release or other public announcement of material information regarding the Company or its Subsidiaries or their financial results or prospects.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) <u>Cybersecurity</u>. Except as would not reasonably be expected to result in a Material Adverse Effect, (i) there has been no material security breach of or relating to any of the Company's or its Subsidiaries' information technology and computer systems, networks, hardware, software, data (including the data of its respective customers, employees, suppliers, vendors and any third party data maintained by or on behalf of it), equipment or technology (collectively, "<u>IT Systems and Data</u>"), (ii) the Company and the Subsidiaries have not been notified of, and has no knowledge of any event or condition that would reasonably be expected to result in, any material security breach to its IT Systems and Data, (iii) the Company and its Subsidiaries are presently in compliance with all applicable laws or statutes and all judgments, orders, rules and regulations of any court or arbitrator or governmental or regulatory authority, internal policies and contractual obligations relating to the privacy and security of IT Systems and Data and to the protection of such IT Systems and Data from unauthorized use, access, misappropriation or modification, except as would not, individually or in the aggregate, have a Material Adverse Effect, (iv) the Company and its Subsidiaries have implemented and maintained commercially reasonable safeguards to maintain and protect their material confidential information and the integrity, continuous operation, redundancy and security of all IT Systems and Data, and (v) the Company and its Subsidiaries have implemented commercially reasonable backup and disaster recovery technology.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(jj) <u>Private Placement</u>. Assuming the accuracy of each Purchaser's representations and warranties set forth in <u>Section 3.2</u>, no registration under the Securities Act is required for the offer and sale of the Securities by the Company to the Purchasers as contemplated hereby.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(kk) <u>No General Solicitation</u>. Neither the Company nor any person acting on behalf of the Company has offered or sold any of the Securities by any form of general solicitation or general advertising. The Company has offered the Securities for sale only to the Purchasers and certain other "accredited investors" within the meaning of Rule 501 under the Securities Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ll) <u>No Disqualification Events</u>. With respect to the Securities to be offered and sold hereunder in reliance on Rule 506(b) under the Securities Act, none of the Company, any of its predecessors, any affiliated issuer, any director, executive officer, other officer of the Company participating in the offering hereunder, any beneficial owner of 20% or more of the Company's outstanding voting equity securities, calculated on the basis of voting power, nor any promoter (as that term is defined in Rule 405 under the Securities Act) connected with the Company in any capacity at the time of sale, nor any Person, including a placement agent, who will receive a commission or fees for soliciting purchasers (each, an "**Issuer Covered Person**" and, together, "**Issuer Covered Persons**") is subject to any of the "Bad Actor" disqualifications described in Rule 506(d)(1)(i) to (viii) under the Securities Act (a "**Disqualification Event**"), except for a Disqualification Event covered by Rule 506(d)(2) or (d)(3). The Company has exercised reasonable care to determine whether any Issuer Covered Person is subject to a Disqualification Event. The Company has complied, to the extent applicable, with its disclosure obligations under Rule 506(e), and has furnished to the Purchasers a copy of any disclosures provided thereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(mm) <u>Notice of Disqualification Events</u>. The Company will notify the Purchasers in writing, prior to the Closing Date of (i) any Disqualification Event relating to any Issuer Covered Person and (ii) any event that would, with the passage of time, reasonably be expected to become a Disqualification Event relating to any Issuer Covered Person, in each case of which it is aware.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(nn) <u>Office of Foreign Assets Control</u>. Neither the Company nor any Subsidiary nor, to the Company's knowledge, any director, officer, agent, employee or affiliate of the Company or any Subsidiary is currently subject to any U.S. sanctions administered by the Office of Foreign Assets Control of the U.S. Treasury Department ("**OFAC**").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(oo) <u>U.S. Real Property Holding Corporation</u>. The Company is not and has never been a U.S. real property holding corporation within the meaning of Section 897 of the Internal Revenue Code of 1986, as amended, and the Company shall so certify upon Purchaser's request.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(pp) <u>Bank Holding Company Act</u>. Neither the Company nor any of its Subsidiaries or Affiliates is subject to the Bank Holding Company Act of 1956, as amended (the "**BHCA**") and to regulation by the Board of Governors of the Federal Reserve System (the "**Federal Reserve**"). Neither the Company nor any of its Subsidiaries or Affiliates owns or controls, directly or indirectly, 5% or more of the outstanding shares of any class of voting securities or twenty-five percent or more of the total equity of a bank or any entity that is subject to the BHCA and to regulation by the Federal Reserve. Neither the Company nor any of its Subsidiaries or Affiliates exercises a controlling influence over the management or policies of a bank or any entity that is subject to the BHCA and to regulation by the Federal Reserve.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(qq) <u>Money Laundering</u>. The operations of the Company and its Subsidiaries are and have been conducted at all times in compliance with applicable financial record-keeping and reporting requirements of the Currency and Foreign Transactions Reporting Act of 1970, as amended, applicable money laundering statutes and applicable rules and regulations thereunder (collectively, the "**Money Laundering Laws**"), and no Action by or before any court or governmental agency, authority or body or any arbitrator involving the Company or any Subsidiary with respect to the Money Laundering Laws is pending or, to the knowledge of the Company or any Subsidiary, threatened.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(rr) Shell Company Status. The Company is not, and has not been for a period of at least one year from the date hereof, an issuer identified in Rule 144(i)(1) of the Securities Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.2. <u>Representations and Warranties of the Purchasers</u>. Each Purchaser, for itself and for no other Purchaser, hereby represents and warrants to the Company as follows which representations and warranties shall be true and correct as of the date hereof and as of the Closing Date:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Organization; Authority</u>. Such Purchaser is either an individual or an entity duly incorporated or formed, validly existing and in good standing under the laws of the jurisdiction of its incorporation or formation with full right, corporate, partnership, limited liability company or similar power and authority to enter into and to consummate the transactions contemplated by this Agreement and otherwise to carry out its obligations hereunder and thereunder. The execution and delivery of this Agreement and performance by such Purchaser of the transactions contemplated by this Agreement have been duly authorized by all necessary corporate, partnership, limited liability company or similar action, as applicable, on the part of such Purchaser. Each Transaction Document to which it is a party has been duly executed by such Purchaser, and when delivered by such Purchaser in accordance with the terms hereof, will constitute the valid and legally binding obligation of such Purchaser, enforceable against it in accordance with its terms, except: (i) as limited by general equitable principles and applicable bankruptcy, insolvency, reorganization, moratorium and other laws of general application affecting enforcement of creditors 'rights generally, (ii) as limited by laws relating to the availability of specific performance, injunctive relief or other equitable remedies and (iii) insofar as indemnification and contribution provisions may be limited by applicable law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Understandings or Arrangements</u>. Such Purchaser is acquiring the Securities as principal for its own account and has no direct or indirect arrangement or understandings with any other persons to distribute or regarding the distribution of such Securities (this representation and warranty not limiting such Purchaser's right to sell the Securities in compliance with applicable federal and state securities laws). Such Purchaser is acquiring the Securities hereunder in the ordinary course of its business. Such Purchaser understands that the Securities are "restricted securities" and have not been registered under the Securities Act or any applicable state securities law and is acquiring such Securities as principal for its own account and not with a view to or for distributing or reselling such Securities or any part thereof in violation of the Securities Act or any applicable state securities law, has no present intention of distributing any of such Securities in violation of the Securities Act or any applicable state securities law and has no direct or indirect arrangement or understandings with any other persons to distribute or regarding the distribution of such Securities in violation of the Securities Act or any applicable state securities law (this representation and warranty not limiting such Purchaser's right to sell such Securities in compliance with applicable federal and state securities laws).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Purchaser Status</u>. At the time such Purchaser was offered the Securities, it was, and as of the date hereof it is, an "accredited investor" within the meaning of Rule 501 under Regulation D promulgated under the Securities Act or a "qualified institutional buyer" as defined in Rule 144A(a) promulgated under the Securities Act. No Purchaser is subject to any Disqualification Event, except for a Disqualification Event covered by Rule 506(d)(2) or (d)(3).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Experience of Such Purchaser</u>. Such Purchaser, either alone or together with its representatives, has such knowledge, sophistication and experience in business and financial matters so as to be capable of evaluating the merits and risks of the prospective investment in the Securities, and has so evaluated the merits and risks of such investment. Such Purchaser is able to bear the economic risk of an investment in the Securities and, at the present time, is able to afford a complete loss of such investment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Access to Information</u>. Such Purchaser acknowledges that it has had the opportunity to review the Transaction Documents (including all exhibits and schedules thereto), (i) the opportunity to ask such questions as it has deemed necessary of, and to receive answers from, representatives of the Company concerning the terms and conditions of the offering of the Securities and the merits and risks of investing in the Securities; (ii) access to information about the Company and its financial condition, results of operations, business, properties, management and prospects sufficient to enable it to evaluate its investment; and (iii) the opportunity to obtain such additional information that the Company possesses or can acquire without unreasonable effort or expense that is necessary to make an informed investment decision with respect to the investment. Such Purchaser acknowledges and agrees that neither the Company nor their Affiliates or anyone else has provided such Purchaser with any information or advice with respect to the Securities nor is such information or advice necessary or desired. Neither the Company nor any of its Affiliates has acted as a financial advisor or fiduciary to such Purchaser in connection with the issuance of the Securities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Certain Transactions and Confidentiality</u>. Other than consummating the transactions contemplated hereunder, such Purchaser has not, nor has any Person acting on behalf of or pursuant to any understanding with such Purchaser, directly or indirectly executed any purchases or sales, including Short Sales, of the securities of the Company during the period commencing as of the time that such Purchaser first received a term sheet (written or oral) from the Company or any other Person representing the Company setting forth the material terms of the transactions contemplated hereunder and ending immediately prior to the execution hereof. Notwithstanding the foregoing, in the case of a Purchaser that is a multi-managed investment vehicle whereby separate portfolio managers manage separate portions of such Purchaser's assets and the portfolio managers have no direct knowledge of the investment decisions made by the portfolio managers managing other portions of such Purchaser's assets, the representation set forth above shall only apply with respect to the portion of assets managed by the portfolio manager that made the investment decision to purchase the Securities covered by this Agreement. Other than to other Persons party to this Agreement or to such Purchaser's representatives, including, without limitation, its officers, directors, partners, legal and other advisors, employees, agents and Affiliates, such Purchaser has maintained the confidentiality of all disclosures made to it in connection with this transaction (including the existence and terms of this transaction). Notwithstanding the foregoing, for avoidance of doubt, nothing contained herein shall constitute a representation or warranty, or preclude any actions, with respect to the identification of the availability of, or securing of, available shares to borrow in order to effect Short Sales or similar transactions in the future.

The Company acknowledges and agrees that the representations contained in this <u>Section 3.2</u> shall not modify, amend or affect such Purchaser's right to rely on the Company's representations and warranties contained in this Agreement or any representations and warranties contained in any other Transaction Document or any other document or instrument executed and/or delivered in connection with this Agreement or the consummation of the transaction contemplated hereby.

ARTICLE 4.

OTHER AGREEMENTS OF THE PARTIES

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.1. <u>Removal of Legends</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Series A Shares and the Conversion Shares may only be disposed of in compliance with state and federal securities laws. In connection with any transfer of the Series A Shares or the Conversion Shares other than pursuant to an effective registration statement or Rule 144, to the Company or to an Affiliate of a Purchaser or in connection with a pledge as contemplated in <u>Section 4.1(b)</u>, the Company may require the transferor to provide to the Company an opinion of counsel selected by the transferor and reasonably acceptable to the Company at the cost of the Company, the form and substance of which opinion shall be reasonably satisfactory to the Company, to the effect that such transfer does not require registration of such transferred Series A Shares or Conversion Shares under the Securities Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Each Purchaser agrees to the imprinting, so long as is required by this <u>Section 4.1</u>, of a legend on any of the Series A Shares or Conversion Shares in substantially the following form:

NEITHER THIS SECURITY NOR THE SECURITIES INTO WHICH THIS SECURITY IS CONVERTIBLE HAVE BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES ACT"), AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS. THIS SECURITY AND THE SECURITIES ISSUABLE UPON CONVERSION OF THIS SECURITY MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT WITH A REGISTERED BROKER-DEALER OR OTHER LOAN WITH A FINANCIAL INSTITUTION THAT IS AN "ACCREDITED INVESTOR" AS DEFINED IN RULE 501(a) UNDER THE SECURITIES ACT OR OTHER LOAN SECURED BY SUCH SECURITIES.

The Company acknowledges and agrees that a Purchaser may from time to time pledge pursuant to a bona fide margin agreement with a registered broker-dealer or grant a security interest in some or all of the Series A Shares or the Conversion Shares to a financial institution that is an "accredited investor" as defined in Rule 501(a) under the Securities Act and who agrees to be bound by the provisions of this Agreement and, if required under the terms of such arrangement, such Purchaser may transfer pledged or secured Series A Shares or the Conversion Shares to the pledgees or secured parties. Such a pledge or transfer would not be subject to approval of the Company and no legal opinion of legal counsel of the pledgee, secured party or pledgor shall be required in connection therewith. Further, no notice shall be required of such pledge. At the appropriate Purchaser's expense, the Company will execute and deliver such reasonable documentation as a pledgee or secured party of Series A Shares, or the Conversion Shares may reasonably request in connection with a pledge or transfer of the Series A Shares or the Conversion Shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Certificates evidencing the Series A Shares and the Conversion Shares (or the Transfer Agent's records if held in book entry form) shall not contain any legend (including the legend set forth in <u>Section 4.1(b)</u> hereof): (i) while a registration statement covering the resale of such securities is effective under the Securities Act (the "**Effective Date**"), (ii) following any sale of such Series A Shares or Conversion Shares pursuant to Rule 144, (iii) if such Series A Shares or Conversion Shares are eligible for sale under Rule 144, without the requirement for the Company to be in compliance with the current public information required under Rule 144 as to such Series A Shares or Conversion Shares and without volume or manner-of-sale restrictions or (iv) if such legend is not required under applicable requirements of the Securities Act (including Sections 4(a)(1) and 4(a)(7) judicial interpretations and pronouncements issued by the staff of the SEC). The Company shall, at its expense, cause its counsel to issue a legal opinion to the Transfer Agent promptly after the Effective Date if required by the Transfer Agent to effect the removal of the legend hereunder. If any Series A Shares are converted at a time when there is an effective registration statement to cover the resale of the Conversion Shares, or if such Conversion Shares may be sold under Rule 144 and the Company is then in compliance with the current public information required under Rule 144, or if the Conversion Shares may be sold under Rule 144 without the requirement for the Company to be in compliance with the current public information required under Rule 144 as to such Conversion Shares and without volume or manner-of-sale restrictions or if such legend is not otherwise required under applicable requirements of the Securities Act (including Sections 4(a)(1) and 4(a)(7), judicial interpretations and pronouncements issued by the staff of the SEC) then such Conversion Shares shall be issued or reissued free of all legends. The Company agrees that following the effective date of any registration statement or at such time as such legend is no longer required under this Section 4.1(c), it will, no later than two Trading Days following the delivery by a Purchaser to the Company or the Transfer Agent of a certificate representing restricted Series A Shares or Conversion Shares, as applicable, issued with a restrictive legend (such second Trading Day, the "**Legend Removal Date**"), deliver or cause to be delivered to such Purchaser a certificate representing such Series A Shares or Conversion Shares that is free from all restrictive and other legends. The Company may not make any notation on its records or give instructions to the Transfer Agent that enlarge the restrictions on transfer set forth in this <u>Section 4.1</u>. Certificates for Series A Shares or Conversion Shares subject to legend removal hereunder shall be transmitted by the Transfer Agent to the Purchaser by crediting the account of the Purchaser's prime broker with the Depository Trust Company system as directed by such Purchaser. The Company shall be responsible for any delays caused by its Transfer Agent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) In addition to such Purchaser's other available remedies, (i) the Company shall pay to a Purchaser, in cash, as partial liquidated damages and not as a penalty, for each $1,000 of the Stated Value of the Series A Shares (as defined in the Series A COD) being converted, $10 per Trading Day for each Trading Day after the Legend Removal Date (increasing to $20 per Trading Day after the fifth Trading Day) until such certificate is delivered without a legend. Nothing herein shall limit such Purchaser's right to pursue actual damages for the Company's failure to deliver certificates representing any Securities as required by the Transaction Documents, and such Purchaser shall have the right to pursue all remedies available to it at law or in equity including, without limitation, a decree of specific performance and/or injunctive relief, and (ii) if after the Legend Removal Date such Purchaser purchases (in an open market transaction or otherwise) shares of Common Stock to deliver in satisfaction of a sale by such Purchaser of all or any portion of the number of shares of Common Stock, or a sale of a number of shares of Common Stock equal to all or any portion of the number of shares of Common Stock that such Purchaser anticipated receiving from the Company without any restrictive legend, then, the Company shall pay to such Purchaser, in cash, an amount equal to the excess of such Purchaser's total purchase price (including brokerage commissions and other out-of-pocket expenses, if any) for the shares of Common Stock so purchased (including brokerage commissions and other out-of-pocket expenses, if any) over the product of (A) such number of Conversion Shares that the Company was required to deliver to such Purchaser by the Legend Removal Date multiplied by (B) the highest closing sale price of the Common Stock on any Trading Day during the period commencing on the date of the delivery by such Purchaser to the Company of the applicable Conversion Shares and ending on the date of such delivery and payment under this <u>Section 4.1(d)</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) In the event a Purchaser shall request delivery of unlegended shares as described in this <u>Section 4.1</u> and the Company is required to deliver such unlegended shares, (i) it shall pay all fees and expenses associated with or required by the legend removal and/or transfer including but not limited to legal fees, Transfer Agent fees and overnight delivery charges and taxes, if any, imposed by any applicable government upon the issuance of Common Stock; and (ii) the Company may not refuse to deliver unlegended shares based on any claim that such Purchaser or anyone associated or affiliated with such Purchaser has not complied with Purchaser's obligations under the Transaction Documents, or for any other reason, unless, an injunction or temporary restraining order from a court, on notice, restraining and or enjoining delivery of such unlegended shares shall have been sought and obtained by the Company and the Company has posted a surety bond for the benefit of such Purchaser in the amount of the greater of (i) 150% of the amount of the aggregate purchase price of the Conversion Shares (based on the amount of the Stated Value of the Series A Shares (as defined in the Series A COD) which was converted), or (ii) the highest VWAP during the five (5) Trading Days before the issue date of the injunction multiplied by the number of unlegended shares to be subject to the injunction, which bond shall remain in effect until the completion of the litigation of the dispute and the proceeds of which shall be payable to such Purchaser to the extent Purchaser obtains judgment in Purchaser's favor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) The Company shall (A) pay the reasonable legal fees of the Purchaser's choice (provided such counsel is reasonably acceptable to the Company) (in an amount not to exceed $500 per legal opinion, and not more often than once per week per Purchaser) in connection with the conversion of the Series A Shares, and (B) cause its attorneys to promptly provide any opinion or reliance opinion to the Transfer Agent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.2. <u>Reserved.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.3. <u>Integration</u>. The Company shall not sell, offer for sale or solicit offers to buy or otherwise negotiate in respect of any security (as defined in Section 2(a)(1) of the Securities Act) that would be integrated with the offer or sale of the Securities for purposes of the rules and regulations of any Principal Market such that it would require stockholder approval prior to the closing of such other transaction unless stockholder approval is obtained before the closing of such subsequent transaction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.4. <u>Reserved</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.5. <u>Stockholder Rights Plan</u>. No claim will be made or enforced by the Company or, with the consent of the Company, any other Person, that any Purchaser is an "**Acquiring Person**" (as such term is used in any control share acquisition, business combination, poison pill (including any distribution under a rights agreement) or similar anti-takeover plan or arrangement) under any such plan or arrangement in effect or hereafter adopted by the Company, or that any Purchaser could be deemed to trigger the provisions of any such plan or arrangement, by virtue of receiving Securities under the Transaction Documents or under any other agreement between the Company and any Purchaser.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.6. <u>Reserved</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.7. <u>Use of Proceeds</u>. The Company shall use the net proceeds received from the sale of the Securities at the Closing Date for general corporate purposes and general working capital requirements, including the payment of transaction-related fees and expenses.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.8. <u>Indemnification of the Purchasers</u>. Subject to the provisions of this <u>Section 4.8</u>, the Company will indemnify and hold the Purchaser and its directors, officers, stockholders, members, partners, employees and agents (and any other Persons with a functionally equivalent role of a Person holding such titles notwithstanding a lack of such title or any other title), each Person who controls such Purchaser (within the meaning of Section 15 of the Securities Act and Section 20 of the Exchange Act), and the directors, officers, stockholders, agents, members, partners or employees (and any other Persons with a functionally equivalent role of a Person holding such titles notwithstanding a lack of such title or any other title) of such controlling persons (each, a "**Purchaser Party**") harmless from any and all losses, liabilities, obligations, claims, contingencies, damages, costs and expenses, including all judgments, amounts paid in settlements, court costs and reasonable attorneys 'fees and costs of investigation (including local counsel, if retained) that any such Purchaser Party may suffer or incur as a result of or relating to (a) any breach of any of the representations, warranties, covenants or agreements made by the Company in this Agreement or in the other Transaction Documents or (b) any action instituted against the Purchaser Parties in any capacity, or any of them or their respective Affiliates, by any stockholder of the Company who is not an Affiliate of such Purchaser Party, with respect to any of the transactions contemplated by the Transaction Documents (unless such action is based upon a breach of such Purchaser Party's representations, warranties or covenants under the Transaction Documents or any agreements or understandings such Purchaser Party may have with any such stockholder or any conduct by such Purchaser Party which constitutes willful misconduct or gross negligence). If any action shall be brought against any Purchaser Party in respect of which indemnity may be sought pursuant to this Agreement, such Purchaser Party shall promptly notify the Company in writing, and the Company shall have the right to assume the defense thereof with counsel of its own choosing reasonably acceptable to the Purchaser Party. Any Purchaser Party shall have the right to employ separate counsel in any such action and participate in the defense thereof, but the fees and expenses of such counsel shall be at the expense of such Purchaser Party except to the extent that (i) the employment thereof has been specifically authorized by the Company in writing, (ii) the Company has failed after a reasonable period of time to assume such defense and to employ counsel or (iii) in such action there is, in the reasonable opinion of counsel to the Purchaser Party, a material conflict on any material issue between the position of the Company and the position of such Purchaser Party, in which case the Company shall be responsible for the reasonable fees and expenses of no more than one such separate counsel for such Purchaser (in addition to local counsel, if retained). The Company will not be liable to any Purchaser Party under this Agreement (y) for any settlement by a Purchaser Party effected without the Company's prior written consent, which shall not be unreasonably withheld or delayed; or (z) to the extent, but only to the extent that a loss, claim, damage or liability is attributable to any Purchaser Party's breach of any of the representations, warranties, covenants or agreements made by such Purchaser Party in this Agreement or in the other Transaction Documents. The Purchaser Parties shall have the right to settle any action against any of them by the payment of money provided that they cannot agree to any equitable relief and the Company, its officers, directors and Affiliates receive unconditional releases in customary form. The indemnification required by this <u>Section 4.8</u> shall be made by periodic payments of the amount thereof during the course of the investigation or defense, as and when bills are received or are incurred. The indemnity agreements contained herein shall be in addition to any cause of action or similar right of any Purchaser Party against the Company or others and any liabilities the Company may be subject to pursuant to law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.9. <u>Reserved.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.10. <u>Reserved.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.11. <u>Equal Treatment of Purchasers</u>. No consideration (including any modification of any Transaction Document) shall be offered or paid to any Person to amend or consent to a waiver or modification of any provision of the Transaction Documents unless the same consideration is also offered to all of the parties to the Transaction Documents. For clarification purposes, this provision constitutes a separate right granted to each Purchaser by the Company and negotiated separately by each Purchaser, and is intended for the Company to treat the Purchasers as a class and shall not in any way be construed as the Purchasers acting in concert or as a group with respect to the purchase, disposition or voting of Securities or otherwise.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.12. <u>Certain Transactions and Confidentiality</u>. Each Purchaser, severally and not jointly with the other Purchasers, covenants that neither it nor any Affiliate acting on its behalf or pursuant to any understanding with it will execute any purchases or sales, including Short Sales of any of the Company's securities during the period commencing with the execution of this Agreement and ending at such time that the transactions contemplated by this Agreement are first publicly announced pursuant to the initial press release issued by the Company. Each Purchaser, severally and not jointly with the other Purchasers, covenants that until such time as the transactions contemplated by this Agreement are publicly disclosed by the Company pursuant to the initial press release issued by the Company, such Purchaser will maintain the confidentiality of the existence and terms of this transaction. Notwithstanding the foregoing and notwithstanding anything contained in this Agreement to the contrary, the Company expressly acknowledges and agrees that (i) no Purchaser makes any representation, warranty or covenant hereby that it will not engage in effecting transactions in any securities of the Company after the time that the transactions contemplated by this Agreement are first publicly announced pursuant to the initial press release issued by the Company, (ii) no Purchaser shall be restricted or prohibited from effecting any transactions in any securities of the Company in accordance with applicable securities laws from and after the time that the transactions contemplated by this Agreement are first publicly announced pursuant to the initial press release issued by the Company, and (iii) no Purchaser shall have any duty of confidentiality or duty not to trade in the securities of the Company to the Company or its Subsidiaries after the issuance of the initial press release issued by the Company. Notwithstanding the foregoing, in the case of a Purchaser that is a multi-managed investment vehicle whereby separate portfolio managers manage separate portions of such Purchaser's assets and the portfolio managers have no direct knowledge of the investment decisions made by the portfolio managers managing other portions of such Purchaser's assets, the covenant set forth above shall only apply with respect to the portion of assets managed by the portfolio manager that made the investment decision to purchase the Securities covered by this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.13. <u>Conversion Procedures</u>. The form of Notice of Conversion for Series A Shares attached hereto as <u>Exhibit B</u> sets forth the totality of the procedures required of the Purchasers in order to convert the Series A Shares. No additional legal opinion, other information or instructions shall be required of the Purchasers to convert their Series A Shares. Without limiting the preceding sentences, no ink-original Conversion Notice shall be required, nor shall any medallion guarantee (or other type of guarantee or notarization) of any Conversion Notice form be required in order to convert the Series A Shares. The Company shall honor conversions of the Series A Shares and shall deliver Conversion Shares in accordance with the terms, conditions and time periods set forth in the Transaction Documents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.14. <u>Reserved</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.15. <u>Maintenance of Property</u>. The Company shall keep all of its property, which is necessary or useful to the conduct of its business, in good working order and condition, ordinary wear and tear excepted.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.16. <u>Preservation of Corporate Existence</u>. The Company shall preserve and maintain its corporate existence, rights, privileges and franchises in the jurisdiction of its incorporation, and qualify and remain qualified, as a foreign corporation in each jurisdiction in which such qualification is necessary in view of its business or operations and where the failure to qualify or remain qualified might reasonably have a Material Adverse Effect upon the financial condition, business or operations of the Company taken as a whole.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.17. <u>Reserved.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.18. <u>Form D; Blue Sky Filings</u>. The Company shall take such actions as it reasonably determines are necessary to qualify the Securities for sale to the Purchasers, or to secure an exemption from such qualification, under applicable state securities or "Blue Sky" laws of the jurisdictions in which offers and sales of the Securities are made, and shall furnish evidence of such actions promptly upon request of any Purchaser. The Company shall file, or cause to be filed, a Form D with the SEC with respect to the Securities as required under Regulation D promulgated under the Securities Act, and shall provide a copy of such filing to the Purchasers upon request.

ARTICLE 5.

MISCELLANEOUS

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1. <u>Termination</u>. This Agreement may be terminated by any Purchaser, as to such Purchaser's obligations hereunder only and without any effect whatsoever on the obligations between the Company and the other Purchasers, by written notice to the other parties, if the Closing has not been consummated on or before the date is sixty (60) days after the date hereof; <u>provided</u>, <u>however</u>, that no such termination will affect the right of any party to sue for any breach by any other party (or parties).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.2. <u>Fees and Expenses</u>. Each party shall pay the fees and expenses of its advisers, counsel, accountants and other experts, if any, and all other expenses incurred by such party incident to the negotiation, preparation, execution, delivery and performance of this Agreement. The Company shall pay all Transfer Agent fees (including, without limitation, any fees required for same-day processing of any instruction letter delivered by the Company and any exercise notice delivered by a Purchaser), stamp taxes and other taxes and duties levied in connection with the delivery of any Securities to the Purchasers. Upon the Closing, out of the proceeds of this transaction the Company shall pay counsel for the placement agent no fees (and no amount shall be withheld from the Subscription Amounts received from the Purchasers on a pro rata basis).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.3. <u>Entire Agreement</u>. The Transaction Documents, together with the exhibits and schedules thereto, contain the entire understanding of the parties with respect to the subject matter hereof and thereof and supersede all prior agreements and understandings, oral or written, with respect to such matters, which the parties acknowledge have been merged into such documents, exhibits and schedules.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.4. <u>Notices</u>. Any and all notices or other communications or deliveries required or permitted to be provided hereunder shall be in writing and shall be deemed given and effective on the earliest of: (a) the date of transmission, if such notice or communication is delivered via facsimile or email attachment at the facsimile number or email address as set forth on the signature pages attached hereto at or prior to 5:30 p.m. (New York City time) on a Trading Day, (b) the next Trading Day after the date of transmission, if such notice or communication is delivered via facsimile or email attachment at the facsimile number or email address as set forth on the signature pages attached hereto on a day that is not a Trading Day or later than 5:30 p.m. (New York City time) on any Trading Day, (c) the second Trading Day following the date of mailing, if sent by U.S. nationally recognized overnight courier service or (d) upon actual receipt by the party to whom such notice is required to be given. The address for such notices and communications shall be as set forth on the signature pages attached hereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.5. <u>Amendments; Waivers</u>. Except as provided in the last sentence of this <u>Section 5.5</u>, no provision of this Agreement may be waived, modified, supplemented or amended except in a written instrument signed, in the case of an amendment, by the Company and the Purchaser's which hold at least 50.1% in interest in the Securities at the time of such amendment or waiver or, in the case of a waiver, by the party against whom enforcement of any such waived provision is sought; <u>provided</u>, that if any amendment, modification or waiver disproportionately and adversely impacts a Purchaser (or group of Purchasers), the consent of such disproportionately impacted Purchaser (or group of Purchasers) shall also be required. No waiver of any default with respect to any provision, condition or requirement of this Agreement shall be deemed to be a continuing waiver in the future or a waiver of any subsequent default or a waiver of any other provision, condition or requirement hereof, nor shall any delay or omission of any party to exercise any right hereunder in any manner impair the exercise of any such right. Any proposed amendment or waiver that disproportionately, materially and adversely affects the rights and obligations of any Purchaser relative to the comparable rights and obligations of the other Purchasers shall require the prior written consent of such adversely affected Purchaser. Any amendment effected in accordance with accordance with this <u>Section 5.5</u> shall be binding upon each Purchaser and holder of Securities and the Company. In order to amend the definition of Exempt Issuance, the written consent of the Company and each Purchaser must be obtained.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.6. <u>Headings</u>. The headings herein are for convenience only, do not constitute a part of this Agreement and shall not be deemed to limit or affect any of the provisions hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.7. <u>Successors and Assigns</u>. This Agreement shall be binding upon and inure to the benefit of the parties and their successors and permitted assigns. The Company may not assign this Agreement or any rights or obligations hereunder without the prior written consent of each Purchaser (other than by merger). Any Purchaser may assign any or all of its rights under this Agreement to any Person to whom such Purchaser assigns or transfers any Securities, provided that such transferee agrees in writing to be bound, with respect to the transferred Securities, by the provisions of the Transaction Documents that apply to the Purchasers.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.8. <u>No Third-Party Beneficiaries</u>. This Agreement is intended for the benefit of the parties hereto and their respective successors and permitted assigns and is not for the benefit of, nor may any provision hereof be enforced by, any other Person, except as otherwise set forth in <u>Section 4.8</u> and this <u>Section 5.8</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.9. <u>Governing Law; Exclusive Jurisdiction; Attorneys' Fees</u>. All questions concerning the construction, validity, enforcement and interpretation of the Transaction Documents shall be governed by and construed and enforced in accordance with the internal laws of the State of Delaware, without regard to the principles of conflicts of law thereof. Each party agrees that all Actions concerning the interpretations, enforcement and defense of the transactions contemplated by this Agreement and any other Transaction Document (whether brought against a party hereto or its respective affiliates, directors, officers, stockholders, partners, members, employees or agents) shall be commenced exclusively in the state and federal courts in New York County, New York. Each party hereby irrevocably submits to the exclusive jurisdiction of the state and federal courts sitting in New York County, New York for the adjudication of any dispute hereunder or in connection herewith or with any transaction contemplated hereby or discussed herein (including with respect to the enforcement of any of the Transaction Documents), and hereby irrevocably waives, and agrees not to assert in any Action, any claim that it is not personally subject to the jurisdiction of any such court, that such Action is improper or is an inconvenient venue for such Action. Each party hereby irrevocably waives personal service of process and consents to process being served in any such Action by mailing a copy thereof via registered or certified mail or overnight delivery (with evidence of delivery) to such party at the address in effect for notices to it under this Agreement and agrees that such service shall constitute good and sufficient service of process and notice thereof. Nothing contained herein shall be deemed to limit in any way any right to serve process in any other manner permitted by law. If any party shall commence an Action to enforce any provisions of the Transaction Documents, then, in addition to the obligations of the Company elsewhere in this Agreement, the prevailing party in such Action shall be reimbursed by the non-prevailing party for its reasonable attorneys 'fees and other costs and expenses incurred with the investigation, preparation and prosecution of such Action.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.10. <u>Survival</u>. The representations and warranties contained herein shall survive the Closing and the delivery of the Securities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.11. <u>Execution</u>. This Agreement may be executed in two or more counterparts, all of which when taken together shall be considered one and the same agreement and shall become effective when counterparts have been signed by each party and delivered to each other party, it being understood that the parties need not sign the same counterpart. In the event that any signature is delivered by facsimile transmission or by e-mail delivery of a ".pdf" format data file, such signature shall create a valid and binding obligation of the party executing (or on whose behalf such signature is executed) with the same force and effect as if such facsimile or ".pdf" signature page were an original thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.12. <u>Severability</u>. If any term, provision, covenant or restriction of this Agreement is held by a court of competent jurisdiction to be invalid, illegal, void or unenforceable, the remainder of the terms, provisions, covenants and restrictions set forth herein shall remain in full force and effect and shall in no way be affected, impaired or invalidated, and the parties hereto shall use their commercially reasonable efforts to find and employ an alternative means to achieve the same or substantially the same result as that contemplated by such term, provision, covenant or restriction. It is hereby stipulated and declared to be the intention of the parties that they would have executed the remaining terms, provisions, covenants and restrictions without including any of such that may be hereafter declared invalid, illegal, void or unenforceable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.13. <u>Rescission and Withdrawal Right</u>. Notwithstanding anything to the contrary contained in (and without limiting any similar provisions of) any of the other Transaction Documents, whenever any Purchaser exercises a right, election, demand or option under a Transaction Document and the Company does not timely perform its related obligations within the periods therein provided, then such Purchaser may rescind or withdraw, in its sole discretion from time to time upon written notice to the Company, any relevant notice, demand or election in whole or in part without prejudice to its future actions and rights.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.14. <u>Replacement of Securities</u>. If any certificate or instrument evidencing any Securities is mutilated, lost, stolen or destroyed, the Company shall issue or cause to be issued in exchange and substitution for and upon cancellation thereof (in the case of mutilation), or in lieu of and substitution therefor, a new certificate or instrument, but only upon receipt of evidence reasonably satisfactory to the Company of such loss, theft or destruction without requiring the posting of any bond.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.15. <u>Remedies</u>. In addition to being entitled to exercise all rights provided herein or granted by law, including recovery of damages, each of the Purchasers and the Company will be entitled to specific performance under the Transaction Documents. The parties agree that monetary damages may not be adequate compensation for any loss incurred by reason of any breach of obligations contained in the Transaction Documents and hereby agree to waive and not to assert in any Action for specific performance of any such obligation the defense that a remedy at law would be adequate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.16. <u>Payment Set Aside</u>. To the extent the Company makes a payment or payments to any Purchaser pursuant to any Transaction Document or a Purchaser enforces or exercises its rights thereunder, and such payment or payments or the proceeds of such enforcement or exercise or any part thereof are subsequently invalidated, declared to be fraudulent or preferential, set aside, recovered from, disgorged by or are required to be refunded, repaid or otherwise restored to the Company, a trustee, receiver or any other Person under any law (including, without limitation, any bankruptcy law, state or federal law, common law or equitable cause of action), then to the extent of any such restoration the obligation or part thereof originally intended to be satisfied shall be revived and continued in full force and effect as if such payment had not been made or such enforcement or setoff had not occurred.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.17. <u>Independent Nature of Purchasers' Obligations and Rights</u>. The obligations of each Purchaser under any Transaction Document are several and not joint with the obligations of any other Purchaser, and no Purchaser shall be responsible in any way for the performance or non-performance of the obligations of any other Purchaser under any Transaction Document. Nothing contained herein or in any other Transaction Document, and no action taken by any Purchaser pursuant hereto or thereto shall be deemed to constitute the Purchasers as a partnership, an association, a joint venture or any other kind of entity, or create a presumption that the Purchasers are in any way acting in concert or as a group with respect to such obligations or the transactions contemplated by the Transaction Documents. Each Purchaser shall be entitled to independently protect and enforce its rights including, without limitation, the rights arising out of this Agreement or out of the other Transaction Documents, and it shall not be necessary for any other Purchaser to be joined as an additional party in any Proceeding for such purpose. Each Purchaser has been represented by its own separate legal counsel in its review and negotiation of the Transaction Documents. The Company has elected to provide all Purchasers with the same terms and Transaction Documents for the convenience of the Company and not because it was required or requested to do so by any of the Purchasers. It is expressly understood and agreed that each provision contained in this Agreement and in each other Transaction Document is between the Company and a Purchaser, solely, and not between the Company and the Purchasers collectively and not between and among the Purchasers.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.18. <u>Liquidated Damages</u>. The Company's obligations to pay any partial liquidated damages or other amounts owing under the Transaction Documents is a continuing obligation of the Company, and shall not terminate until all unpaid partial liquidated damages and other amounts have been paid notwithstanding the fact that the instrument or security pursuant to which such partial liquidated damages or other amounts are due and payable shall have been canceled.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.19. <u>Saturdays, Sundays, Holidays, etc.</u> If the last or appointed day for the taking of any action or the expiration of any right required or granted herein shall not be a Trading Day, then such action may be taken or such right may be exercised on the next succeeding Trading Day.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.20. <u>Construction</u>. The parties agree that each of them and/or their respective counsel have reviewed and had an opportunity to revise the Transaction Documents and, therefore, the normal rule of construction to the effect that any ambiguities are to be resolved against the drafting party shall not be employed in the interpretation of the Transaction Documents or any amendments thereto. In addition, each and every reference to share prices and shares of Common Stock in any Transaction Document shall be subject to adjustment for reverse and forward stock splits, stock dividends, stock combinations and other similar transactions of the Common Stock that occur after the date of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.21. **<u>WAIVER OF JURY TRIAL</u>. IN ANY ACTION, SUIT, OR PROCEEDING IN ANY JURISDICTION BROUGHT BY ANY PARTY AGAINST ANY OTHER PARTY, THE PARTIES EACH KNOWINGLY AND INTENTIONALLY, TO THE GREATEST EXTENT PERMITTED BY APPLICABLE LAW, HEREBY ABSOLUTELY, UNCONDITIONALLY, IRREVOCABLY AND EXPRESSLY WAIVE FOREVER TRIAL BY JURY.**

In addition, the parties hereto agree that any action, proceeding or claim arising out of or relating in any way to this Agreement or the other Transaction Documents shall be resolved through final and binding arbitration in accordance with the Commercial Arbitration Rules of the American Arbitration Association.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.22. <u>Non-Circumvention</u>. The Company hereby covenants and agrees that the Company will not, by amendment of its Charter, including any Certificates of Designation, or Bylaws or through any reorganization, transfer of assets, consolidation, merger, scheme of arrangement, dissolution, issue or sale of securities, or any other voluntary action, avoid or seek to avoid the observance or performance of any of the terms of this Agreement, and will at all times in good faith carry out all of the provision of this Agreement and take all action as may be required to protect the rights of all holders of the Securities. Without limiting the generality of the foregoing or any other provision of this Agreement or the other Transaction Documents, the Company (a) shall not increase the par value of any shares of Common Stock receivable upon conversion of the Series A Shares above the conversion price of the Series A Shares then in effect and (b) shall take all such action as may be necessary or appropriate in order that the Company may validly and legally issue fully paid and nonassessable Conversion Shares upon the conversion of the Series A Shares. Notwithstanding anything herein to the contrary, if after six months from the Closing, a holder is not permitted to convert the Series A Shares, in full, for any reason, the Company shall use its best efforts to promptly remedy such failure, including, without limitation, obtaining such consent or approvals as necessary to permit such conversion.

*(Signature Pages Follow)*

 

IN WITNESS WHEREOF, the parties hereto have caused this Securities Purchase Agreement to be duly executed by their respective authorized signatories as of the date first indicated above.

---

| | | |
|:---|:---|:---|
| **AMBITIOUS ENTERTAINMENT INC.** | **AMBITIOUS ENTERTAINMENT INC.** |  |
|  |  | <u>Address for Notice:</u> |
| By: |  |  |
| Name: |  |  |
| <br> Title: | Chief Executive Officer |  |

---

With a copy to (which shall not constitute notice):

Lucosky Brookman LLP

101 Wood Avenue South, 5th floor

Iselin, NJ 08830

Tel No.: (732) 395-4400

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK

SIGNATURE PAGE FOR PURCHASER FOLLOWS]

IN WITNESS WHEREOF, the parties hereto have caused this Securities Purchase Agreement to be duly executed by their respective authorized signatories as of the date first indicated above.

---

| |
|:---|
| Name of Purchaser: |
| Signature of Authorized Signatory of Purchaser: |
| *<br> Name of Authorized Signatory:* |
| Title of Authorized Signatory: |
| Email Address of Authorized Signatory: |
| Facsimile Number of Authorized Signatory: |
| Address for Notice to Purchaser: |
| Address for Delivery of Securities to Purchaser (if not same as address for notice): |
| Subscription Amount: |
| Series A Shares: |
| EIN Number: |

---

**<u>EXHIBIT A</u>**

**Form of Warrant**

(*see attached*)

**<u>Exhibit B</u>**

**Form of Notice of Conversion for Series A Shares**

(*see attached*)

## Exhibit 10.12

**Exhibit 10.12**

**ADVISORY BOARD AGREEMENT**

This ADVISORY BOARD AGREEMENT (this "<u>Agreement</u>") dated as of April 22, 2026 is by and between Ambitious Entertainment, Inc., a Nevada corporation (the "<u>Company</u>"), and Robert Franke, a natural person and a resident of the Federal Republic of Germany (the "<u>Advisor</u>").

**RECITALS:**

**WHEREAS**, the Company desires to retain the Advisor for its advisory board (the "<u>Advisory Board</u>"); and

**WHEREAS**, the Advisor is willing to serve on the Advisory Board upon the terms and conditions herein set forth.

**NOW, THEREFORE**, in consideration of the premises and mutual covenants herein set forth and for other good and valuable consideration, the receipt of which is hereby acknowledged, the Company and the Advisor hereby agree as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. <u>Retention</u>. The Company hereby retains the Advisor to serve on the Advisory Board until removed by the Board or until the Advisor resigns.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. <u>Duties</u>. The Advisor shall serve as a member of the Company's Advisory Board. The Advisory Board will have 1 meeting per month for strategizing on the following year's initiatives. The Advisor shall use commercially reasonable efforts to attend all meetings of the Advisory Board. In addition, the Advisor shall perform any and all related duties and shall have any and all powers as may be prescribed by resolution of the Advisory Board, and shall be reasonably available to confer and consult with and advise the officers and directors of the Company at such times that may reasonably be required by the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. <u>Compensation</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Advisor shall be entitled to compensation as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) In
 consideration for the performance by the Advisor of the services hereunder, the Company shall
 pay the Advisor compensation of 75,000 shares of the Company's common stock, par value
 $0.0001 per share (the " <u>Common Stock</u> "), for the Term (as defined in Section
 7 hereof) (the " <u>Compensation</u> "). Notwithstanding anything to the contrary
 herein, this Agreement shall become effective on the closing date (the " <u>Effective Date</u> ") of the Company's initial public offering (the " <u>Offering</u> ").
 No Compensation shall accrue prior to such time.

(ii) Beginning
 with the first fiscal quarter following consummation of the Offering, the Advisor shall receive
 18,750 shares of Common Stock per fiscal quarter during the Term, until a total of 75,000
 shares of Common Stock have been granted. The shares of Common Stock shall be issued within five (5) business days of the end of each applicable fiscal quarter.

(iii) If
 this Agreement is terminated effective on a date other than the end of the fiscal quarter,
 the Advisor shall receive such number of shares equal to the product of (x) 18,750 and (y)
 a fraction the numerator of which is the number of days the Advisor has served on the Advisory
 Board since the end of the previous fiscal quarter and the denominator of which is the number
 of days in the current fiscal quarter.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Company shall bear all costs and expenses associated with the issuance of the shares of Common Stock to the Advisor. The Advisor acknowledges sole responsibility for the Advisor's personal tax obligations, including without limitation any payroll or self-employment taxes and income taxes, whether federal state, local or foreign, arising from the performance of the duties hereunder and receipt of Compensation as provided herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) For the avoidance of any doubt the Compensation constitutes the full and final consideration payable to the Advisor hereunder, and no additional consideration of any kind is payable to the Advisor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The Advisor represents that (i) he does not maintain a "fixed base" in the United States regularly available to the Advisor for the purposes of performing the services hereunder within the meaning of Article 14 of the United States-Germany Tax Treaty or (ii) the compensation payable hereunder will not be attributable to any such fixed base. The Advisor agrees to advise the Company as soon as practicable upon any change in the foregoing. The Advisor acknowledges that the Company may withhold from any amounts payable to the Advisor under this Agreement such federal, state or local income, payroll, employment or other taxes as are or may be required to be withheld pursuant to any applicable law or regulation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) The Advisor acknowledges that the shares of Common Stock issued as Compensation are "restricted securities" as defined in Rule 144 under the Securities Act of 1933, as amended, and will therefore bear a legend, as set forth in Exhibit A. The shares of Common Stock issued as Compensation may not be offered, sold or otherwise transferred absent an effective registration statement or the availability of exemptions from the registration requirements under federal securities laws and from any qualification or registration requirements under the securities laws of any applicable state or foreign jurisdictions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. <u>Expenses</u>. The Advisor shall submit to the Company reasonably detailed receipts with respect thereto which substantiate the Advisor's expenses, including expenses relating to attendance at meetings of the Advisory Board and to any other services performed by the Advisor hereunder. The Company shall reimburse the Advisor for all documented expenses reasonably related to the performance of the Advisor's duties hereunder; however, any individual expense exceeding $1,000 must be pre-approved by the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. <u>Permissions</u>. The Advisor hereby grants permission to the Company to reasonably utilize the Advisor's name, likeness, and biographical information in Company documents, including for commercial purposes; subject to the Advisor's final approval of such use in the sole discretion of the Advisor. For the avoidance of doubt, the Advisor may withhold or condition its approval to each and every specific use of the Advisor's name, likeness or biographical information, in its sole and absolute discretion.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. <u>Confidentiality</u>. (a) The Advisor shall not disclose or otherwise provide any Confidential Information (as defined below) to third parties without the prior written consent of the Company; provided, however, that the Advisor may disclosure such information to its own tax or legal advisors to the extent necessary for such advisors to perform their duties to the Advisor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Advisor agrees and undertakes that he will not disclose, copy or use Confidential Information except for the performance of his duties hereunder. Unless otherwise provided in this Agreement, the Advisor shall not acquire any rights or license of any kind under any patent, copyright, trademark, trade secret, or other intellectual property right in or to any Confidential Information.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The Advisor shall hold all Confidential Information in strict confidence and shall safeguard the Confidential Information with a reasonable degree of care.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) For purposes of this Agreement, "<u>Confidential Information</u>" shall mean all information in any and all medium disclosed by the Company to the Advisor including, without limitation, (i) internal affairs or proprietary business operations of the Company or its affiliates or (ii) any trade secrets, new project developments or programming. "Confidential Information" shall also include information disclosed by the Company which relates to marketing and business plans, forecasts, projections and analyses and financial information.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) For the purposes of this Agreement, Confidential Information shall not include any information which:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) is
 already known to the Advisor or is publicly available at the time of disclosure;

(ii) becomes
 publicly known or available after disclosure through no act of the Advisor in breach of this
 Agreement;

(iii) is
 disclosed to the Advisor by a third party who is not in breach of an obligation of confidentiality;

(iv) was
 or is independently developed by the Advisor without use of any Confidential Information;
 or

(v) is
 required to be disclosed by applicable law or regulation; provided however, that if the Advisor
 receives a subpoena or similar document requiring it to disclose Confidential Information,
 the Advisor shall, to the extent reasonably practicable, notify the Company so that the Company
 can take appropriate action to suppress the disclosure of Confidential Information or else
 insure that Confidential Information is disclosed under confidentiality provisions only.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. <u>Term and Termination</u>. This Agreement will be for a term of one (1) year, beginning on the Effective Date (the "<u>Term</u>"). Notwithstanding the foregoing, either party may terminate this Agreement at any time for any reason or for no reason upon ten (10) business days' prior written notice. Upon such termination, the Advisor shall be entitled to receive any amounts accrued under Sections 3 and 4 for the period prior to such termination.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. <u>Governing Law; Jurisdiction</u>. This Agreement shall be governed by and construed in accordance with the law of the State of Nevada. The Advisor irrevocably agrees that the courts of the State of Nevada shall have exclusive jurisdiction in relation to any claim, dispute or difference concerning this Agreement, the Advisor's appointment, and any matter arising therefrom and the Advisor irrevocably waive any right that the Advisor may have to object to an action being brought in those courts, or to claim that the action has been brought in an inconvenient forum, or that those courts do not have jurisdiction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. <u>Arbitration</u>. Notwithstanding the foregoing, either the Advisor or the Company may elect to resolve any claims and disputes arising under or relating to this Agreement by binding arbitration in the State of Nevada or another location mutually agreeable to the Advisor and the Company. The arbitration shall be conducted on a confidential basis pursuant to the Commercial Arbitration Rules of the American Arbitration Association. The seat of arbitration shall be Las Vegas, State of Nevada. The arbitration shall be conducted before a single arbitrator, experienced in corporate law matters and mutually agreed to by the Advisor and the Company. An award of arbitration may be confirmed in a court of competent jurisdiction. Any decision or award as a result of any such arbitration proceeding shall be in writing and shall provide an explanation for all conclusions of law and fact and shall include the assessment of costs, expenses, and reasonable attorneys' fees.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10. <u>Entire Agreement; Amendment and Waiver; Survival</u>. This Agreement constitutes the entire agreement between the parties hereto with respect to the Advisor's engagement and supersedes all prior verbal and written agreements and understandings related thereto. This Agreement may be amended only by a written agreement executed by all of the parties hereto. Waiver of or failure to exercise any rights provided by this Agreement and in any respect shall not be deemed a waiver of any further or future rights. The provisions of this Agreement shall survive the termination of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11. <u>Assignment</u>. Any assignment of this Agreement without the express written consent of all parties hereto, which consent shall not be unreasonably conditioned, withheld or delayed, shall be void.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12. <u>Notices</u>. Any notice, request, instruction, or other document required by the terms of this Agreement, or deemed by any of the parties hereto to be desirable, to be given to any other party hereto shall be in writing and shall be given by personal delivery, overnight delivery, mailed by registered or certified mail, postage prepaid, with return receipt requested, or sent by electronic mail (with receipt confirmed) to the addresses or email address of the parties as follows:

If to the Company:

Ambitious Entertainment, Inc.

112 W 6th Avenue

Vancouver, British Columbia V5Y 1K6

Canada

Attention: Kirk E. Shaw

E-mail:

If to the Advisor:

Robert Franke

E-mail:

The persons and addresses set forth above may be changed from time to time by a notice sent as aforesaid. If notice is given by personal delivery or overnight delivery in accordance with the provisions of this Section, such notice shall be conclusively deemed given at the time of such delivery provided a receipt is obtained from the recipient. If notice is given by mail in accordance with the provisions of this Section, such notice shall be conclusively deemed given upon receipt and delivery or refusal. If notice is given by electronic mail transmission in accordance with the provisions of this Section, such notice shall be conclusively deemed given at the time of delivery if between the hours of 9:00 a.m. and 5:00 p.m. Pacific time on a business day and if not during such times on a business day, at 9:00 a.m. on the next business day following delivery, provided a delivery confirmation is obtained by the sender.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13. <u>Severability</u>. If any provision hereof is held to be illegal, invalid, or unenforceable during the term hereof, such provision shall be fully severable. This Agreement shall be construed and enforced as if such illegal, invalid, or unenforceable provision had never comprised a part hereof, and the remaining provisions hereof shall remain in full force and effect and shall not be affected by the illegal, invalid, or unenforceable provision or by its severance wherefrom.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14. <u>Indemnification</u>. The Company shall indemnify, defend, protect and forever hold harmless the Advisor (the "<u>Indemnified Party</u>") from and against any and all losses, claims, actions, damages, and liabilities, joint or several, to which such Indemnified Party may become subject under any applicable statute, law, ordinance, regulation, rule, code, order, constitution, treaty, common law, judgment, or decree, made by any third party or otherwise, relating to or arising out of the services or other matters referred to in or contemplated by this Agreement or the engagement of such Indemnified Party pursuant to, and the performance by such Indemnified Party of, the services or other matters referred to or contemplated by this Agreement, and the Company will reimburse any Indemnified Party for all costs and expenses (including, without limitation, attorneys' fees and expenses) as they are incurred in connection with the investigation of, preparation for, or defense of any pending or threatened claim, or any action or proceeding arising therefrom, whether or not such Indemnified Party is a party thereto. The reimbursement and indemnity obligations of the Company, under this Section 14 shall survive the termination of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15. <u>Nature of Relationship</u>. The Advisor shall perform the services as an independent contractor, and nothing contained in this Agreement shall be construed to create or imply a joint venture, partnership, principal-agent, or employment relationship between the parties. The Advisor, as an independent contractor, shall have the sole and complete direction of the manner of performance of the services and the method and manner of obtaining the Company's desired results, subject to the Company's reasonable general satisfaction as to the manner of performance and conduct of the Advisor and the other provisions of this Agreement.

*[Signature Page Follows]*

IN WITNESS WHEREOF, each of the parties have executed or caused to be executed on its behalf by a duly authorized person as of the date first above written.

---

| | |
|:---|:---|
| **AMBITIOUS ENTERTAINMENT, INC.** | **AMBITIOUS ENTERTAINMENT, INC.** |
| By: | */s/ Kirk E. Shaw* |
|  | Kirk E. Shaw |
|  | Chief Executive Officer |

---

---

| |
|:---|
| ***/s/ Robert Franke*** |
| **Robert Franke** |

---

*[Signature Page to Advisory Agreement dated April 22, 2026 between*

*Ambitious Entertainment, Inc. and Robert Franke]*

Exhibit A

Restrictive Legend

THE SHARES (OR OTHER SECURITIES) REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR REGISTERED OR QUALIFIED UNDER ANY APPLICABLE SECURITIES LWS OF ANY STATE OR POLITICAL SUBDIVISION OF THE UNITED STATES AND MAY NOT BE SOLD, PLEDGED OR OTHERWISE TRANSFERRED IN THE ABSENCE OF SUCH REGISTRATION OR QUALIFICATION OR AN OPINION OF COUNSEL SATISFSCTORY TO THE COMPANY AND ITS COUNSEL, THAT AN EXEMPTIONS FROM SUCH REGISTRATION OR QUALIFICATIONS ARE AVAILABLE.

## Exhibit 10.13

**Exhibit 10.13**

**ADVISORY BOARD AGREEMENT**

This ADVISORY BOARD AGREEMENT (this "<u>Agreement</u>") dated as of April 22, 2026 is by and between Ambitious Entertainment, Inc., a Nevada corporation (the "<u>Company</u>"), and Ira Kurgan, a natural person resident in the State of California (the "<u>Advisor</u>").

**RECITALS:**

**WHEREAS**, the Company desires to retain the Advisor for its advisory board (the "<u>Advisory Board</u>"); and

**WHEREAS**, the Advisor is willing to serve on the Advisory Board upon the terms and conditions herein set forth.

**NOW, THEREFORE**, in consideration of the premises and mutual covenants herein set forth and for other good and valuable consideration, the receipt of which is hereby acknowledged, the Company and the Advisor hereby agree as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. <u>Retention</u>. The Company hereby retains the Advisor to serve on the Advisory Board until removed by the Board or until the Advisor resigns.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. <u>Duties</u>. The Advisor shall serve as a member of the Company's Advisory Board. The Advisory Board will have 1 meeting per month for strategizing on the following year's initiatives. The Advisor shall use commercially reasonable efforts to attend all meetings of the Advisory Board. In addition, the Advisor shall perform any and all related duties and shall have any and all powers as may be prescribed by resolution of the Advisory Board, and shall be reasonably available to confer and consult with and advise the officers and directors of the Company at such times that may reasonably be required by the Company. For the avoidance of doubt, Advisor shall not be deemed a member of the Company's board of directors or an officer of the Company, shall have no voting or other decision-making authority with respect to the management or operations of the Company, and shall owe no fiduciary duties to the Company, its shareholders or affiliates beyond those expressly set forth in this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. <u>Compensation</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Advisor shall be entitled to compensation as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) In
 consideration for the performance of the Advisor's functions and duties as an advisor
 of the Company, the Company shall pay the Advisor compensation of 150,000 shares of the Company's
 common stock, par value $0.001 per share (the " <u>Common Stock</u> "), for the
 Term (as defined in Section 7 hereof) (the " <u>Compensation</u> "). Notwithstanding
 anything to the contrary herein, this Agreement shall become effective on the closing date
 (the "Effective Date") of the Company's initial public offering (the " <u>Offering</u> ").
 No Compensation shall accrue prior to such time.

(ii) Beginning
 with the first full fiscal quarter following consummation of the Offering, the Advisor shall
 receive 37,500 shares of Common Stock per fiscal quarter during the Term, until a total of
 150,000 shares of Common Stock have been granted. The shares of Common Stock shall be issued at the end of each applicable fiscal quarter. The shares
 of Common Stock issued for the first fiscal quarter following the Offering shall vest on
 the six (6) month anniversary of the consummation of the Offering. All shares of Common Stock
 issued for subsequent fiscal quarters shall vest in full upon issuance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) The
 Advisor acknowledges that the shares of Common Stock issued as Compensation are "restricted
 securities" as defined in Rule 144 under the Securities Act of 1933, as amended, and
 will therefore bear a legend, as set forth in <u>Exhibit A</u>. The shares of Common Stock
 issued as Compensation may not be offered, sold or otherwise transferred absent an effective
 registration statement or the availability of exemptions from the registration requirements
 under federal securities laws and from any qualification or registration requirements under
 the securities laws of any applicable state or foreign jurisdictions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Company shall bear all costs and expenses associated with the issuance of the shares of Common Stock to the Advisor. The Advisor acknowledges sole responsibility for the Advisor's personal tax obligations, including without limitation any payroll or self-employment taxes and income taxes, whether federal state, local or foreign, arising from the performance of the duties hereunder and receipt of Compensation as provided herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) For the avoidance of any doubt the Compensation constitutes the full and final consideration payable to the Advisor hereunder, and no additional consideration of any kind is payable to the Advisor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. <u>Expenses</u>. The Advisor shall submit to the Company reasonably detailed receipts with respect thereto which substantiate the Advisor's expenses, including expenses relating to attendance at meetings of the Advisory Board and the Company shall reimburse the Advisor for all documented expenses reasonably related to the performance of the Advisor's duties hereunder; however, any individual expense exceeding $1,000 must be pre-approved by the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. <u>Permissions</u>. The Advisor hereby grants permission to the Company to reasonably utilize the Advisor's name, likeness, and biographical information in Company documents, including for commercial purposes; subject to the Advisor's final approval of such use in the sole discretion of the Advisor. For the avoidance of doubt, the Advisor may withhold or condition its approval to each and every specific use of the Advisor's name, likeness or biographical information, in its sole and absolute discretion.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. <u>Confidentiality</u>. (a) The Advisor shall not disclose or otherwise provide any Confidential Information (as defined below) to third parties without the prior written consent of the Company; provided, however, that the Advisor may disclosure such information to its own tax or legal advisors to the extent necessary for such advisors to perform their duties to the Advisor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Advisor agrees and undertakes that he will not disclose, copy or use Confidential Information except for the performance of his duties hereunder. Unless otherwise provided in this Agreement, the Advisor shall not acquire any rights or license of any kind under any patent, copyright, trademark, trade secret, or other intellectual property right in or to any Confidential Information.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The Advisor shall hold all Confidential Information in strict confidence and shall safeguard the Confidential Information with a reasonable degree of care.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) For purposes of this Agreement, "<u>Confidential Information</u>" shall mean all information in any and all medium disclosed by the Company to the Advisor including, without limitation, (i) internal affairs or proprietary business operations of the Company or its affiliates or (ii) any trade secrets, new project developments or programming. "Confidential Information" shall also include information disclosed by the Company which relates to marketing and business plans, forecasts, projections and analyses and financial information.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) For the purposes of this Agreement, Confidential Information shall not include any information which:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) is
 already known to the Advisor or is publicly available at the time of disclosure;

(ii) becomes
 publicly known or available after disclosure through no act of the Advisor in breach of this
 Agreement;

(iii) is
 disclosed to the Advisor by a third party who is not in breach of an obligation of confidentiality;

(iv) was
 or is independently developed by the Advisor without use of any Confidential Information;
 or

(v) is
 required to be disclosed by applicable law or regulation; provided however, that if the Advisor
 receives a subpoena or similar document requiring it to disclose Confidential Information,
 the Advisor shall, to the extent reasonably practicable, notify the Company so that the Company
 can take appropriate action to suppress the disclosure of Confidential Information or else
 insure that Confidential Information is disclosed under confidentiality provisions only.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. <u>Term and Termination</u>. This Agreement will be for an initial term of one (1) year, beginning on the Effective Date, and then will renew automatically from year to year (the "<u>Term</u>"). Notwithstanding the foregoing, either party may terminate this Agreement at any time for any reason or for no reason upon ten (10) business days' prior written notice. Upon such termination, the Advisor shall be entitled to receive any amount accrued under Sections 3 and 4 for the period prior to such termination. If the Company terminates this Agreement without Cause, then, in addition to any amounts accrued under Sections 3 and 4, Advisor shall be deemed to have earned, and the Company shall issue, the number of shares of Common Stock that would have vested through the end of the then-current fiscal quarter. If the Company terminates this Agreement for Cause, then, the Advisor shall earn such number of shares of Common Stock pro-rated for the number of days he served on the Advisory Board during the applicable fiscal quarter prior to termination, divided by the total number of days in such fiscal quarter.

"<u>Termination for Cause</u>" means, at the Company's option, immediately upon notice to the Advisor, upon the occurrence of any of the following events:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. the
 Advisor's conviction of, or guilty plea or a plan of *nolo contendere* or "no
 contest" or confession of a felony (other than traffic violations) or other criminal
 act involving moral turpitude or any other criminal act which adversely affects the business
 or reputation of Company or its subsidiaries (regardless of whether against the Company or
 its subsidiaries or affiliates);

ii. a
 material failure of the Advisor to perform his duties after ten (10) days written notice
 given by an executive officer of the Company to the Advisor, which notice shall identify
 the Advisor's failure in sufficient detail and grant to the Advisor an opportunity
 to cure such failure within such ten (10) day period;

iii. a
 material breach by the Advisor of any of his obligations under the Agreement;

iv. any
 material act of dishonesty or other misconduct by the Advisor against the Company or any
 of its subsidiaries or affiliates; or

v. a
 material violation by the Advisor of any of the policies or procedures of the Company or
 any of its subsidiaries or affiliates as such may in effect from time to time; provided,
 however, that if such violation is curable, then the Advisor will be given ten (10) days'
 written notice and the opportunity to cure such violation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. <u>Governing Law; Jurisdiction</u>. This Agreement shall be governed by and construed in accordance with the law of the State of Nevada. The Advisor irrevocably agrees that the courts of the State of Nevada shall have exclusive jurisdiction in relation to any claim, dispute or difference concerning this Agreement, the Advisor's appointment, and any matter arising therefrom and the Advisor irrevocably waive any right that the Advisor may have to object to an action being brought in those courts, or to claim that the action has been brought in an inconvenient forum, or that those courts do not have jurisdiction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. <u>Arbitration</u>. Notwithstanding the foregoing, either the Advisor or the Company may elect to resolve any claims and disputes arising under or relating to this Agreement by binding arbitration in the State of Nevada or another location mutually agreeable to the Advisor and the Company. The arbitration shall be conducted on a confidential basis pursuant to the Commercial Arbitration Rules of the American Arbitration Association. The seat of arbitration shall be Las Vegas, State of Nevada. The arbitration shall be conducted before a single arbitrator, experienced in corporate law matters and mutually agreed to by the Advisor and the Company. An award of arbitration may be confirmed in a court of competent jurisdiction. Any decision or award as a result of any such arbitration proceeding shall be in writing and shall provide an explanation for all conclusions of law and fact and shall include the assessment of costs, expenses, and reasonable attorneys' fees. Any arbitration pursuant to this Section may, at Advisor's election, be conducted by video conference or other remote means to the fullest extent permitted by the Commercial Arbitration Rules of the American Arbitration Association, and the arbitrator shall award the prevailing party its reasonable attorneys' fees and costs.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10. <u>Entire Agreement; Amendment and Waiver; Survival</u>. This Agreement constitutes the entire agreement between the parties hereto with respect to the Advisor's engagement and supersedes all prior verbal and written agreements and understandings related thereto. This Agreement may be amended only by a written agreement executed by all of the parties hereto. Waiver of or failure to exercise any rights provided by this Agreement and in any respect shall not be deemed a waiver of any further or future rights. The provisions of this Agreement shall survive the termination of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11. <u>Assignment</u>. Any assignment of this Agreement without the express written consent of all parties hereto, which consent shall not be unreasonably conditioned, withheld or delayed, shall be void.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12. <u>Notices</u>. Any notice, request, instruction, or other document required by the terms of this Agreement, or deemed by any of the parties hereto to be desirable, to be given to any other party hereto shall be in writing and shall be given by personal delivery, overnight delivery, mailed by registered or certified mail, postage prepaid, with return receipt requested, or sent by electronic mail (with receipt confirmed) to the addresses or email address of the parties as follows:

If to the Company:

Ambitious Entertainment, Inc.

112 W 6th Avenue

Vancouver, British Columbia V5Y 1K6

Canada

Attention: Kirk E. Shaw, Co-President and Interim Chief Executive Officer

E-mail:

If to the Advisor:

Ira Kurgan

E-mail:

The persons and addresses set forth above may be changed from time to time by a notice sent as aforesaid. If notice is given by personal delivery or overnight delivery in accordance with the provisions of this Section, such notice shall be conclusively deemed given at the time of such delivery provided a receipt is obtained from the recipient. If notice is given by mail in accordance with the provisions of this Section, such notice shall be conclusively deemed given upon receipt and delivery or refusal. If notice is given by electronic mail transmission in accordance with the provisions of this Section, such notice shall be conclusively deemed given at the time of delivery if between the hours of 9:00 a.m. and 5:00 p.m. Pacific time on a business day and if not during such times on a business day, at 9:00 a.m. on the next business day following delivery, provided a delivery confirmation is obtained by the sender.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13. <u>Severability</u>. If any provision hereof is held to be illegal, invalid, or unenforceable during the term hereof, such provision shall be fully severable. This Agreement shall be construed and enforced as if such illegal, invalid, or unenforceable provision had never comprised a part hereof, and the remaining provisions hereof shall remain in full force and effect and shall not be affected by the illegal, invalid, or unenforceable provision or by its severance wherefrom.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14. <u>Indemnification</u>. The Company shall indemnify, defend, protect and forever hold harmless the Advisor (the "<u>Indemnified Party</u>") from and against any and all losses, claims, actions, damages, and liabilities, joint or several, to which such Indemnified Party may become subject under any applicable statute, law, ordinance, regulation, rule, code, order, constitution, treaty, common law, judgment, or decree, made by any third party or otherwise, relating to or arising out of the services or other matters referred to in or contemplated by this Agreement or the engagement of such Indemnified Party pursuant to, and the performance by such Indemnified Party of, the services or other matters referred to or contemplated by this Agreement, and the Company will reimburse any Indemnified Party for all costs and expenses, including, without limitation, attorneys' fees and expenses, as they are incurred in connection with the investigation of, preparation for, or defense of any pending or threatened claim, or any action or proceeding arising therefrom, whether or not such Indemnified Party is a party thereto. Notwithstanding the foregoing, such indemnification shall apply to the fullest extent permitted by law and shall include, without limitation, any losses, claims, actions, damages, and liabilities, joint or several, arising from Advisor's good faith performance of duties under this Agreement, except to the extent resulting from Advisor's gross negligence or willful misconduct. The Company shall advance expenses, including attorneys' fees, incurred by Advisor in connection with any claim covered by this Section 14, upon receipt of Advisor's written undertaking to repay such advances if it is ultimately determined by a final, non-appealable judgment of a court of competent jurisdiction that Advisor is not entitled to indemnification under this Section 14. This indemnification shall survive termination of this Agreement and shall be in addition to any rights to indemnification the Advisor may have under applicable law, the Company's governing documents, or otherwise. To the maximum extent permitted by applicable law, in no event shall the Advisor's aggregate liability to the Company or any of its affiliates arising out of or relating to this Agreement or the services performed under this Agreement exceed the aggregate amount of Compensation actually paid to the Advisor hereunder; provided that this limitation shall not apply to any damages finally determined by a court of competent jurisdiction to have resulted from the Advisor's gross negligence or willful misconduct.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15. <u>Nature of Relationship</u>. The Advisor shall perform the services as an independent contractor, and nothing contained in this Agreement shall be construed to create or imply a joint venture, partnership, principal-agent, or employment relationship between the parties. The Advisor, as an independent contractor, shall have the sole and complete direction of the manner of performance of the services and the method and manner of obtaining the Company's desired results, subject to the Company's reasonable general satisfaction as to the manner of performance and conduct of the Advisor and the other provisions of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16. <u>No Employment Payments or Benefits</u>. Notwithstanding any other provision in this Agreement, if a competent government authority should assert that Company is responsible for making any source deductions or other payments on monies or other compensation paid to the Advisor, then Company shall be required to start making such source deductions, which amounts equal to any source deduction or retroactive assessment, together with any costs, penalties and expenses (including legal fees and costs) shall be the sole responsibility of and shall be solely incurred by Company related to such assertions or deductions, from any amounts then payable by Company to the Advisor under this Agreement. The Company hereby agrees to indemnify the Advisor for any such amounts that are not recovered by Company, within fourteen (14) days after it receives a written demand for these amounts from the Advisor.

*[Signature Page Follows]*

IN WITNESS WHEREOF, each of the parties have executed or caused to be executed on its behalf by a duly authorized person as of the date first above written.

---

| | |
|:---|:---|
| **AMBITIOUS ENTERTAINMENT, INC.** | **AMBITIOUS ENTERTAINMENT, INC.** |
| By: | */s/ Kirk E. Shaw* |
|  | Kirk E. Shaw |
|  | Co-President and Interim Chief Executive Officer |

---

---

| |
|:---|
| ***/s/ Ira Kurgan*** |
| **Ira Kurgan** |

---

*[Signature Page to Advisory Agreement dated April 22, 2026 between*

*Ambitious Entertainment, Inc. and Ira Kurgan]*

Exhibit A

Restrictive Legend

THE SHARES (OR OTHER SECURITIES) REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR REGISTERED OR QUALIFIED UNDER ANY APPLICABLE SECURITIES LWS OF ANY STATE OR POLITICAL SUBDIVISION OF THE UNITED STATES AND MAY NOT BE SOLD, PLEDGED OR OTHERWISE TRANSFERRED IN THE ABSENCE OF SUCH REGISTRATION OR QUALIFICATION OR AN OPINION OF COUNSEL SATISFSCTORY TO THE COMPANY AND ITS COUNSEL, THAT AN EXEMPTIONS FROM SUCH REGISTRATION OR QUALIFICATIONS ARE AVAILABLE.

## Exhibit 10.14

**Exhibit 10.14**

**ADVISORY BOARD AGREEMENT**

This ADVISORY BOARD AGREEMENT (this "<u>Agreement</u>") dated as of April 21, 2026 is by and between Ambitious Entertainment, Inc., a Nevada corporation (the "<u>Company</u>"), and Henry Smith, a natural person with residence in Colorado (the "<u>Advisor</u>").

**RECITALS:**

**WHEREAS**, the Company desires to retain the Advisor for its advisory board (the "<u>Advisory Board</u>"); and

**WHEREAS**, the Advisor is willing to serve on the Advisory Board upon the terms and conditions herein set forth.

**NOW, THEREFORE**, in consideration of the premises and mutual covenants herein set forth and for other good and valuable consideration, the receipt of which is hereby acknowledged, the Company and the Advisor hereby agree as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. <u>Retention</u>. The Company hereby retains the Advisor to serve on the Advisory Board until removed by the Board or until the Advisor resigns.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. <u>Duties</u>. The Advisor shall serve as a member of the Company's Advisory Board. The Advisory Board will have 1 meeting per month for strategizing on the following year's initiatives. The Advisor shall use commercially reasonable efforts to attend all meetings of the Advisory Board. In addition, the Advisor shall perform any and all related duties and shall have any and all powers as may be prescribed by resolution of the Advisory Board, and shall be reasonably available to confer and consult with and advise the officers and directors of the Company at such times that may reasonably be required by the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. <u>Compensation</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Advisor shall be entitled to compensation as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) In
 consideration for the performance by the Advisor of the services hereunder, the Company shall
 pay the Advisor compensation of 75,000 shares of the Company's common stock, par value
 $0.0001 per share (the " <u>Common Stock</u> "), for the Term (as defined in Section
 7 hereof) (the " <u>Compensation</u> "). Notwithstanding anything to the contrary
 herein, this Agreement shall become effective on the closing date (the " <u>Effective Date</u> ") of the Company's initial public offering (the " <u>Offering</u> ").
 No Compensation shall accrue prior to such time.

(ii) Beginning
 with the first fiscal quarter following consummation of the Offering, the Advisor shall receive
 18,750 shares of Common Stock per fiscal quarter during the Term, until a total of 75,000
 shares of Common Stock have been granted. The shares of Common Stock shall be issued within five (5) business days of the end of each applicable fiscal quarter.

(iii) If
 this Agreement is terminated effective on a date other than the end of the fiscal quarter,
 the Advisor shall receive such number of shares equal to the product of (x) 18,750 and (y)
 a fraction the numerator of which is the number of days the Advisor has served on the Advisory
 Board since the end of the previous fiscal quarter and the denominator of which is the number
 of days in the current fiscal quarter.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Company shall bear all costs and expenses associated with the issuance of the shares of Common Stock to the Advisor. The Advisor acknowledges sole responsibility for the Advisor's personal tax obligations, including without limitation any payroll or self-employment taxes and income taxes, whether federal state, local or foreign, arising from the performance of the duties hereunder and receipt of Compensation as provided herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) For the avoidance of any doubt the Compensation constitutes the full and final consideration payable to the Advisor hereunder, and no additional consideration of any kind is payable to the Advisor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The Advisor acknowledges that the Company may withhold from any amounts payable to the Advisor under this Agreement such federal, state or local income, payroll, employment or other taxes as are required to be withheld pursuant to any applicable law or regulation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) The Advisor acknowledges that the shares of Common Stock issued as Compensation are "restricted securities" as defined in Rule 144 under the Securities Act of 1933, as amended, and will therefore bear a legend, as set forth in Exhibit A. The shares of Common Stock issued as Compensation may not be offered, sold or otherwise transferred absent an effective registration statement or the availability of exemptions from the registration requirements under federal securities laws and from any qualification or registration requirements under the securities laws of any applicable state or foreign jurisdictions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. <u>Expenses</u>. The Advisor shall submit to the Company reasonably detailed receipts with respect thereto which substantiate the Advisor's expenses, including expenses relating to attendance at meetings of the Advisory Board and to any other services performed by the Advisor hereunder. The Company shall reimburse the Advisor for all documented expenses reasonably related to the performance of the Advisor's duties hereunder; however, any individual expense exceeding $1,000 must be pre-approved by the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. <u>Permissions</u>. The Advisor hereby grants permission to the Company to reasonably utilize the Advisor's name, likeness, and biographical information in Company documents, including for commercial purposes; subject to the Advisor's final approval of such use in the sole discretion of the Advisor. For the avoidance of doubt, the Advisor may withhold or condition its approval to each and every specific use of the Advisor's name, likeness or biographical information, in its sole and absolute discretion.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. <u>Confidentiality</u>. (a) The Advisor shall not disclose or otherwise provide any Confidential Information (as defined below) to third parties without the prior written consent of the Company; provided, however, that the Advisor may disclosure such information to its own tax or legal advisors to the extent necessary for such advisors to perform their duties to the Advisor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Advisor agrees and undertakes that he will not disclose, copy or use Confidential Information except for the performance of his duties hereunder. Unless otherwise provided in this Agreement, the Advisor shall not acquire any rights or license of any kind under any patent, copyright, trademark, trade secret, or other intellectual property right in or to any Confidential Information.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The Advisor shall hold all Confidential Information in strict confidence and shall safeguard the Confidential Information with a reasonable degree of care.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) For purposes of this Agreement, "<u>Confidential Information</u>" shall mean all information in any and all medium disclosed by the Company to the Advisor including, without limitation, (i) internal affairs or proprietary business operations of the Company or its affiliates or (ii) any trade secrets, new project developments or programming. "Confidential Information" shall also include information disclosed by the Company which relates to marketing and business plans, forecasts, projections and analyses and financial information.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) For the purposes of this Agreement, Confidential Information shall not include any information which:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) is
 already known to the Advisor or is publicly available at the time of disclosure;

(ii) becomes
 publicly known or available after disclosure through no act of the Advisor in breach of this
 Agreement;

(iii) is
 disclosed to the Advisor by a third party who is not in breach of an obligation of confidentiality;

(iv) was
 or is independently developed by the Advisor without use of any Confidential Information;
 or

(v) is
 required to be disclosed by applicable law or regulation; provided however, that if the Advisor
 receives a subpoena or similar document requiring it to disclose Confidential Information,
 the Advisor shall, to the extent reasonably practicable, notify the Company so that the Company
 can take appropriate action to suppress the disclosure of Confidential Information or else
 insure that Confidential Information is disclosed under confidentiality provisions only.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. <u>Term and Termination</u>. This Agreement will be for a term of one (1) year, beginning on the Effective Date (the "<u>Term</u>"). Notwithstanding the foregoing, either party may terminate this Agreement at any time for any reason or for no reason upon ten (10) business days' prior written notice. Upon such termination, the Advisor shall be entitled to receive any amounts accrued under Sections 3 and 4 for the period prior to such termination.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. <u>Governing Law; Jurisdiction</u>. This Agreement shall be governed by and construed in accordance with the law of the State of Nevada. The Advisor irrevocably agrees that the courts of the State of Nevada shall have exclusive jurisdiction in relation to any claim, dispute or difference concerning this Agreement, the Advisor's appointment, and any matter arising therefrom and the Advisor irrevocably waive any right that the Advisor may have to object to an action being brought in those courts, or to claim that the action has been brought in an inconvenient forum, or that those courts do not have jurisdiction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. <u>Arbitration</u>. Notwithstanding the foregoing, either the Advisor or the Company may elect to resolve any claims and disputes arising under or relating to this Agreement by binding arbitration in the State of Nevada or another location mutually agreeable to the Advisor and the Company. The arbitration shall be conducted on a confidential basis pursuant to the Commercial Arbitration Rules of the American Arbitration Association. The seat of arbitration shall be Las Vegas, State of Nevada. The arbitration shall be conducted before a single arbitrator, experienced in corporate law matters and mutually agreed to by the Advisor and the Company. An award of arbitration may be confirmed in a court of competent jurisdiction. Any decision or award as a result of any such arbitration proceeding shall be in writing and shall provide an explanation for all conclusions of law and fact and shall include the assessment of costs, expenses, and reasonable attorneys' fees.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10. <u>Entire Agreement; Amendment and Waiver; Survival</u>. This Agreement constitutes the entire agreement between the parties hereto with respect to the Advisor's engagement and supersedes all prior verbal and written agreements and understandings related thereto. This Agreement may be amended only by a written agreement executed by all of the parties hereto. Waiver of or failure to exercise any rights provided by this Agreement and in any respect shall not be deemed a waiver of any further or future rights. The provisions of this Agreement shall survive the termination of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11. <u>Assignment</u>. Any assignment of this Agreement without the express written consent of all parties hereto, which consent shall not be unreasonably conditioned, withheld or delayed, shall be void.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12. <u>Notices</u>. Any notice, request, instruction, or other document required by the terms of this Agreement, or deemed by any of the parties hereto to be desirable, to be given to any other party hereto shall be in writing and shall be given by personal delivery, overnight delivery, mailed by registered or certified mail, postage prepaid, with return receipt requested, or sent by electronic mail (with receipt confirmed) to the addresses or email address of the parties as follows:

If to the Company:

Ambitious Entertainment, Inc.

112 W 6th Avenue

Vancouver, British Columbia V5Y 1K6

Canada

Attention: Kirk E. Shaw

E-mail:

If to the Advisor:

Henry Smith

E-mail:

The persons and addresses set forth above may be changed from time to time by a notice sent as aforesaid. If notice is given by personal delivery or overnight delivery in accordance with the provisions of this Section, such notice shall be conclusively deemed given at the time of such delivery provided a receipt is obtained from the recipient. If notice is given by mail in accordance with the provisions of this Section, such notice shall be conclusively deemed given upon receipt and delivery or refusal. If notice is given by electronic mail transmission in accordance with the provisions of this Section, such notice shall be conclusively deemed given at the time of delivery if between the hours of 9:00 a.m. and 5:00 p.m. Pacific time on a business day and if not during such times on a business day, at 9:00 a.m. on the next business day following delivery, provided a delivery confirmation is obtained by the sender.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13. <u>Severability</u>. If any provision hereof is held to be illegal, invalid, or unenforceable during the term hereof, such provision shall be fully severable. This Agreement shall be construed and enforced as if such illegal, invalid, or unenforceable provision had never comprised a part hereof, and the remaining provisions hereof shall remain in full force and effect and shall not be affected by the illegal, invalid, or unenforceable provision or by its severance wherefrom.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14. <u>Indemnification</u>. The Company shall indemnify, defend, protect and forever hold harmless the Advisor (the "<u>Indemnified Party</u>") from and against any and all losses, claims, actions, damages, and liabilities, joint or several, to which such Indemnified Party may become subject under any applicable statute, law, ordinance, regulation, rule, code, order, constitution, treaty, common law, judgment, or decree, made by any third party or otherwise, relating to or arising out of the services or other matters referred to in or contemplated by this Agreement or the engagement of such Indemnified Party pursuant to, and the performance by such Indemnified Party of, the services or other matters referred to or contemplated by this Agreement, and the Company will reimburse any Indemnified Party for all costs and expenses (including, without limitation, attorneys' fees and expenses) as they are incurred in connection with the investigation of, preparation for, or defense of any pending or threatened claim, or any action or proceeding arising therefrom, whether or not such Indemnified Party is a party thereto. The reimbursement and indemnity obligations of the Company, under this Section 14 shall survive the termination of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15. <u>Nature of Relationship</u>. The Advisor shall perform the services as an independent contractor, and nothing contained in this Agreement shall be construed to create or imply a joint venture, partnership, principal-agent, or employment relationship between the parties. The Advisor, as an independent contractor, shall have the sole and complete direction of the manner of performance of the services and the method and manner of obtaining the Company's desired results, subject to the Company's reasonable general satisfaction as to the manner of performance and conduct of the Advisor and the other provisions of this Agreement.

*[Signature Page Follows]*

IN WITNESS WHEREOF, each of the parties have executed or caused to be executed on its behalf by a duly authorized person as of the date first above written.

---

| | |
|:---|:---|
| **AMBITIOUS ENTERTAINMENT, INC.** | **AMBITIOUS ENTERTAINMENT, INC.** |
| By: | */s/ Kirk E. Shaw* |
|  | Kirk E. Shaw |
|  | Chief Executive Officer |

---

---

| |
|:---|
| ***/s/ Henry Smith*** |
| **Henry Smith** |

---

*[Signature Page to Advisory Agreement dated April 21, 2026 between*

*Ambitious Entertainment, Inc. and Henry Smith]*

Exhibit A

Restrictive Legend

THE SHARES (OR OTHER SECURITIES) REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR REGISTERED OR QUALIFIED UNDER ANY APPLICABLE SECURITIES LWS OF ANY STATE OR POLITICAL SUBDIVISION OF THE UNITED STATES AND MAY NOT BE SOLD, PLEDGED OR OTHERWISE TRANSFERRED IN THE ABSENCE OF SUCH REGISTRATION OR QUALIFICATION OR AN OPINION OF COUNSEL SATISFSCTORY TO THE COMPANY AND ITS COUNSEL, THAT AN EXEMPTIONS FROM SUCH REGISTRATION OR QUALIFICATIONS ARE AVAILABLE.

## Exhibit 21.1

**Exhibit 21.1**

**List of Subsidiaries of Ambitious Entertainment, Inc.**

---

| | |
|:---|:---|
| **Name of Subsidiaries** | **Jurisdiction of Incorporation** |
| A&G Entertainment Limited | Hong Kong |

---

## Exhibit 23.1

**Exhibit 23.1**

![](ex23-1_001.jpg)

***Consent of Independent Registered Public Accounting Firm***

To Whom It May Concern:

We hereby consent to the incorporation by reference into the Registration Statements of Ambitious Entertainment, Inc. on Form S-1 of our Report of Independent Registered Public Accounting Firm, dated May 15, 2026, on the consolidated balance sheet of Ambitious Entertainment, Inc. as of December 31, 2025, and 2024 and the related statements of operations, changes in stockholder's deficit and cash flows for the years then ended.

We also consent to the reference to us under the caption "Experts" in the Prospectus.

![](ex23-1_002.jpg)

Bush & Associates CPA LLC

Las Vegas, NV

May 15, 2026

## Exhibit 99.7

**Exhibit 99.7**

**CONSENT OF DIRECTOR NOMINEE**

In connection with the filing by Ambitious Entertainment, Inc. (the "<u>Company</u>") of a registration statement on Form S-1 and all subsequent amendments and post-effective amendments or supplements thereto (the "<u>Registration Statement</u>"), with the U.S. Securities and Exchange Commission under the Securities Act of 1933, as amended (the "<u>Securities Act</u>"), in connection with the initial public offering of shares of common stock of the Company, I hereby consent, pursuant to Rule 438 of the Securities Act, to being named as a nominee to the board of directors of the Company in the Registration Statement. I also consent to the filing of this consent as an exhibit to the Registration Statement and any amendments thereto.

Dated: May 15, 2026

---

| |
|:---|
| */s/ Adam Berk* |
| Name: Adam Berk |

---

## Exhibit 99.8

**Exhibit 99.8**

**CONSENT OF DIRECTOR NOMINEE**

In connection with the filing by Ambitious Entertainment, Inc. (the "<u>Company</u>") of a registration statement on Form S-1 and all subsequent amendments and post-effective amendments or supplements thereto (the "<u>Registration Statement</u>"), with the U.S. Securities and Exchange Commission under the Securities Act of 1933, as amended (the "<u>Securities Act</u>"), in connection with the initial public offering of shares of common stock of the Company, I hereby consent, pursuant to Rule 438 of the Securities Act, to being named as a nominee to the board of directors of the Company in the Registration Statement. I also consent to the filing of this consent as an exhibit to the Registration Statement and any amendments thereto.

Dated: May 15, 2026

---

| |
|:---|
| */s/ Chuyun Chen* |
| Name: Chuyun Chen |

---

## Exhibit 99.10

**Exhibit 99.10**

**CONSENT OF DIRECTOR NOMINEE**

In connection with the filing by Ambitious Entertainment, Inc. (the "<u>Company</u>") of a registration statement on Form S-1 and all subsequent amendments and post-effective amendments or supplements thereto (the "<u>Registration Statement</u>"), with the U.S. Securities and Exchange Commission under the Securities Act of 1933, as amended (the "<u>Securities Act</u>"), in connection with the initial public offering of shares of common stock of the Company, I hereby consent, pursuant to Rule 438 of the Securities Act, to being named as a nominee to the board of directors of the Company in the Registration Statement. I also consent to the filing of this consent as an exhibit to the Registration Statement and any amendments thereto.

Dated: May 15, 2026

---

| |
|:---|
| */s/ Patricio Rabuffetti* |
| Name: Patricio Rabuffetti |

---

## Exhibit 99.11

**Exhibit 99.11**

**CONSENT OF DIRECTOR NOMINEE**

In connection with the filing by Ambitious Entertainment, Inc. (the "<u>Company</u>") of a registration statement on Form S-1 and all subsequent amendments and post-effective amendments or supplements thereto (the "<u>Registration Statement</u>"), with the U.S. Securities and Exchange Commission under the Securities Act of 1933, as amended (the "<u>Securities Act</u>"), in connection with the initial public offering of shares of common stock of the Company, I hereby consent, pursuant to Rule 438 of the Securities Act, to being named as a nominee to the board of directors of the Company in the Registration Statement. I also consent to the filing of this consent as an exhibit to the Registration Statement and any amendments thereto.

Dated: May 15, 2026

---

| |
|:---|
| */s/ Owen May* |
| Name: Owen May |

---

## Exhibit 99.12

**Exhibit 99.12**

**CONSENT OF DIRECTOR NOMINEE**

In connection with the filing by Ambitious Entertainment, Inc. (the "<u>Company</u>") of a registration statement on Form S-1 and all subsequent amendments and post-effective amendments or supplements thereto (the "<u>Registration Statement</u>"), with the U.S. Securities and Exchange Commission under the Securities Act of 1933, as amended (the "<u>Securities Act</u>"), in connection with the initial public offering of shares of common stock of the Company, I hereby consent, pursuant to Rule 438 of the Securities Act, to being named as a nominee to the board of directors of the Company in the Registration Statement. I also consent to the filing of this consent as an exhibit to the Registration Statement and any amendments thereto.

Dated: May 15, 2026

---

| |
|:---|
| */s/ Ben Silverman* |
| Name: Ben Silverman |

---

## Ex-Filing

?xml version='1.0' encoding='ASCII'? EX-FILING FEES

---

| |
|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Calculation of Filing Fee Tables**  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **S-1**  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Ambitious Entertainment, Inc.**  |

---

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Security Type**  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Security Class Title**  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Fee Calculation or Carry Forward Rule**  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Amount Registered**  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Proposed Maximum Offering Price Per Unit**  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Maximum Aggregate Offering Price**  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Fee Rate**  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Amount of Registration Fee**  |
| **Newly Registered Securities** | **Newly Registered Securities** | **Newly Registered Securities** | **Newly Registered Securities** | **Newly Registered Securities** | **Newly Registered Securities** | **Newly Registered Securities** | **Newly Registered Securities** | **Newly Registered Securities** | **Newly Registered Securities** |
| Fees to be Paid | 1 | Equity | Common Stock, par value $0.0001 per share | Other | 3555556 | $4.50 | $16000002.00 | 0.0001381 | $2209.60 |
| Fees to be Paid | 2 | Equity | Common Stock, par value $0.0001 per share (Over-Allotment Option) | Other | 533333 | $4.50 | $2399998.50 | 0.0001381 | $331.44 |
| Fees to be Paid | 3 | Equity | Representative's Warrants | Other |  |  | $0.00 | 0.0001381 | $0.00 |
| Fees to be Paid | 4 | Equity | Common Stock issuable upon the exercise of Representative's Warrants | Other | 204445 | $4.50 | $920002.50 | 0.0001381 | $127.05 |
| Fees Previously Paid |  |  |  |  |  |  |  |  |  |
| **Carry Forward Securities** | **Carry Forward Securities** | **Carry Forward Securities** | **Carry Forward Securities** | **Carry Forward Securities** | **Carry Forward Securities** | **Carry Forward Securities** | **Carry Forward Securities** | **Carry Forward Securities** | **Carry Forward Securities** |
| Carry Forward Securities |  |  |  |  |  |  |  |  |  |
|  |  |  | Total Offering Amounts: | Total Offering Amounts: | Total Offering Amounts: |  | $19320003.00  |  | $2668.09  |
|  |  |  | Total Fees Previously Paid:  | Total Fees Previously Paid:  | Total Fees Previously Paid:  |  |  |  | $0.00  |
|  |  |  | Total Fee Offsets:  | Total Fee Offsets:  | Total Fee Offsets:  |  |  |  | $0.00  |
|  |  |  | Net Fee Due:  | Net Fee Due:  | Net Fee Due:  |  |  |  | $2668.09  |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Offering Note** <br>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <sup>1</sup> (1) Pursuant to Rule 416(a) promulgated under the Securities Act of 1933, as amended, the ("Securities Act"), we are also registering an indeterminate number of shares of common stock as may from time to time become issuable by reason of stock splits, stock dividends, or similar transactions. Estimated solely for the purpose of computing the amount of the registration fee pursuant to Rules 457(o) under the Securities Act. The proposed maximum offering price per share is $4.50, the midpoint of the estimated price range of $4.00 to $5.00 per share set forth on the cover page of this registration statement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <sup>2</sup> (2) This offering includes up to 533,333 shares of Common Stock to cover the underwriter's option to purchase securities to cover over-allotments, if any.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <sup>3</sup> (3) No fee required pursuant to Rule 457(g) under the Securities Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <sup>4</sup> (4) Estimated solely for the purpose of calculating the registration fee pursuant to Rule 457(g) under the Securities Act. The Representative's Warrants are exercisable at a per share price equal to 125% of the initial public offering price per share in the offering. The exercise price is calculated as 125% x $4.50 = $5.625 per share.

---

| |
|:---|
| |
| **Rules 457(b) and 0-11(a)(2)** |
| Fee Offset Claims |
| Fee Offset Sources |
| **Rule 457(p)** |
| Fee Offset Claims |
| Fee Offset Sources |

---