SEC Filing Document

Company: Ambitious Entertainment, Inc.
Ticker: 
CIK: 1900851
Filing Type: S-1
Document Type: S-1
Date Filed: 2026-05-15
Accession Number: 0001493152-26-023581
Exchange: 
SIC Code: 7812
SIC Description: Services-Motion Picture & Video Tape Production
URL: https://www.sec.gov/Archives/edgar/data/1900851/000149315226023581/forms-1.htm

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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 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.

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

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: