SEC Filing Document

Company: Ambitious Entertainment, Inc.
Ticker: 
CIK: 1900851
Filing Type: DRS/A
Document Type: DRS/A
Date Filed: 2025-10-08
Accession Number: 0001493152-25-017387
Exchange: 
SIC Code: 7812
SIC Description: Services-Motion Picture & Video Tape Production
URL: https://www.sec.gov/Archives/edgar/data/1900851/000149315225017387/filename1.htm

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Document Content:

$ 229,522 $ (11,513,455 ) $ 78 $ (11,283,151 ) Common stock issued for services - - 210,000 21 398,980 - - 399,001 Capital contribution - - - - - - - - Issuance of convertible debt - - - - (145,729 ) - - (145,729 ) Other comprehensive loss - - - - - (49,565 ) (78 ) (49,643 ) Net loss - - - - - (469,473 ) - (469,473 ) Balance - June 30, 2024 237,340 $ 24 7,010,000 $ 701 $ 482,773 $ (12,032,493 ) $ - $ (11,548,995 ) The accompanying notes are an integral part of these unaudited consolidated financial statements Ambitious Entertainment, Inc. Unaudited Condensed Statements of Cash Flows For the Six Months Ended June 30, CASH FLOWS FROM OPERATING ACTIVITIES Net income (loss) $ 214,488 $ (474,899 ) Adjustments to reconcile net loss to net cash provided by (used in) operating activities:

Amortization of debt discount and debt issuance costs 5,209 160,179

Change in FV of derivative (1,885,518	) 142,972

Stock based compensation 1,847,749 399,000

Loss on impairment of investment 128,650 -

Non-cash (gain) loss on transfer of interest in subsidiaries (1,071,115	) 583,260

Changes in operating assets and liabilities:

Accounts receivable 105,060 (1,062,619	)

Tax credit receivable - 28,273

Other receivable - 3,295

Prepaid expenses 4,200 228,745

Accounts payable 61,174 (210,616	)

Accrued expenses 314,391 124,145

Net cash used in operating activities (275,712	) (78,265	)

CASH FLOWS FROM INVESTING ACTIVITIES

Investments - (561,787	)

Net cash used in investing activities - (561,787	)

CASH FLOWS FROM FINANCING ACTIVITIES

Proceeds from notes payable 25,000 -

Proceeds from production financing - 481,825

Advances from related parties 352,771 46,440

Repayments to related parties (115,396	) (64,000	)

Proceeds from issuance of common stock 2,500 -

Proceeds from issuance of convertible notes payable - 100,000

Net cash provided by financing activities 264,875 564,265

Net change in cash (10,837	) (75,787	)

Cash at beginning of period 12,356 76,888

Cash at end of period $	1,519 $	1,101

SUPPLEMENTAL CASH FLOW INFORMATION:

Cash paid for income taxes $	- $	-

Cash paid for interest $	- $	-

NON-CASH INVESTING AND FINANCING ACTIVITIES

Convertible notes issued recorded as accounts receivable $	100,000 $	-

Transfer of interest in subsidiaries (1,071,115	) 583,260

Initial derivative liabilities recognized as a debt discount $	10,000 $	5,000

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

AMBITIOUS
ENTERTAINMENT, INC.

NOTES
TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

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

The
Company has one wholly owned subsidiary, FATE USA, LLC (“FATE”) included in the consolidated financial statements for the
six months ended June 30, 2025. FATE was transferred out of the Company on January 1, 2025.

Going
Concern

The
Company’s unaudited condensed 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 unaudited condensed consolidated
financial statements, the Company had a net income of $163,059, an accumulated deficit of $13.6 million, and cash
used in operations of $275,712 for the six months ended June 30, 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, which raise substantial doubt about its ability to continue as a going concern. As of June
30, 2025, the Company has $2,126,980 in net convertible debt with a weighted average interest rate of 7% per annum. Of this
amount, $1,893,230 matures on June 1, 2026, and $233,750 matures between March and December 2026. The Company’s
monthly cash burn is approximately $87,500, comprised of $65,000 in labor, $7,000 in travel, $7,500 in legal expenses, $5,000 in audit
fees, and $3,000 in development expenses.

Management
recognizes the need to obtain additional resources to support operations in 2025 and beyond. To address these liquidity challenges, management
has developed the following plans:

1.	Near-Term
Capital Raise :

○	Management
plans to raise $1,000,000 within one month of filing its Form S-1. The funding is expected to be secured through convertible debt
with terms of 1-3 years and an interest rate of 7%. The Company is actively negotiating with 2-3 merchant banks to finalize this
raise.

○	The
$1,000,000 funding is projected to cover operating expenses until the Company lists its shares on the New York Stock Exchange.

2.	Post-Listing
Capital Raise :

○	Following
the listing on the New York Stock Exchange, the Company plans to raise $10,000,000. Management is in discussions with two brokerage
firms regarding this raise, which will provide additional capital to fund the Company’s operations and strategic initiatives.

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 CEO.

These
unaudited condensed 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 $1,000,000 funding and subsequent $10,000,000 raise, if successfully executed, will mitigate the substantial doubt
about the Company’s ability to continue as a going concern through the next 12 months.

NOTE
2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis
of Presentation and Principles of Consolidation

The
accompanying unaudited condensed 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 unaudited condensed consolidated financial statements include the accounts of the Company and its wholly owned subsidiary. All significant
intercompany accounts and transactions have been eliminated.

Use
of Estimates

The
preparation of unaudited condensed 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 unaudited condensed 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 unaudited condensed consolidated financial statements for the valuation of derivatives,
warrants, and other financial instruments.

Cash
and Cash Equivalents