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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Form 10-Q contains, contains forward-looking statements regarding our business, financial condition, results of operations and prospects. The Securities and Exchange Commission (the “SEC”) encourages companies to disclose forward-looking information so that investors can better understand a company’s future prospects and make informed investment decisions. This Interim Report on Form 10-Q and other written and oral statements that we make from time to time contain such forward-looking statements that set out anticipated results based on management’s plans and assumptions regarding future events or performance. We have tried, wherever possible, to identify such statements by using words such as “anticipate,” “estimate,” “expect,” “project,” “intend,” “plan,” “believe,” “will” and similar expressions in connection with any discussion of future operating or financial performance. In particular, these include statements relating to future actions, future performance or results of current and anticipated sales efforts, expenses, the outcome of contingencies, such as legal proceedings, and financial results.

Any
or all of our forward-looking statements in this report may turn out to be inaccurate. They can be affected by inaccurate assumptions
we might make or by known or unknown risks or uncertainties. Consequently, no forward-looking statement can be guaranteed. Actual future
results may vary materially as a result of various factors, including, without limitation, the risks outlined under “Risk Factors”
detailed in the Company’s Form 10 and S-1 registration statements and matters described in this Form 10-Q generally. In light of
these risks and uncertainties, there can be no assurance that the forward-looking statements contained in this filing will in fact occur.
You should not place undue reliance on these forward-looking statements. The forward-looking statements speak only as of the date on
which they are made, and, except to the extent required by federal securities laws, we undertake no obligation to publicly update any
forward-looking statements, whether as the result of new information, future events, or otherwise. We intend that all forward-looking
statements be subject to the safe harbor provisions of the PSLRA.

The
following discussion should be read in conjunction with our unaudited condensed financial statements and the related notes that appear
elsewhere in this interim report on Form 10-Q.

Overview
and History

Incorporated
in Nevada in September 2020, Ambitious Entertainment
is a leading independent media entertainment company that 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 has earned more than $4 billion in the 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 of all major studios,
streaming sites, and key distributors monthly in Los Angeles, California. Leading executives in Hollywood actively seek
out our producers to review our current slate of projects and to bring Ambitious new projects to develop and package.

For
the six months ended June 30, 2025, and June 30, 2024, the unaudited interim financial statements have been prepared by management in
accordance with the condensing rules of the United States Securities and Exchange Commission.

Results
of Operations

The
following analysis on results of operations was based primarily on the unaudited condensed consolidated financial statements,
footnotes and related information for the period identified below and should be read in conjunction with the unaudited condensed consolidated
financial statements and the notes to those statements for the six months ended June 30, 2025, and 2024, which are included elsewhere
in this interim report on Form 10-Q. The results discussed below are for the six months ended June 30, 2025, and 2024.

For the Six Months Ended

June 30, 2025 June 30, 2024

Total revenue $	25,000 $	2,159,477

Cost of revenue - (1,088,363	)

Gross profit 25,000 1,071,114

Operating expenses (2,507,742	) (152,839	)

Other income - 20,298

Interest expense (119,600	) (473,934	)

Gain (loss) on transfer of corporate and member interest 1,008,080 (791,140	)

Change in fair value of derivative liability 1,885,519 (142,972	)

Loss on impairment of investment (128,650	) -

Exchange gain 452 -

Net income (loss) $	163,059 $	(469,473	)

Revenue

For
the six months ended June 30, 2025, we recorded $25,000 in revenue, compared to approximately $2.2 million for the same period in 2024.
The decrease in revenue in 2025 was primarily due to the Company’s strategic decision to pause film production activities during
the first and second quarters of 2025 to focus on completing financial audits for 2023 and 2024 and preparing for new film projects scheduled
to commence later in 2025. In contrast, the revenue in 2024 was driven by the development and production of IP-based films.

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 six months ended June 30, 2025, and

Six Months Ended Six Months Ended

June 30, June 30,

Film Revenue % of Total Revenue Revenue % of Total Revenue

AMFAD $	- N/A $	396,257 18.35	%

VPER - N/A 1,048,780 48.57	%

Other 25,000 100.00	% 704,000 32.60	%

Total $	25,000 $	2,159,477 100	%

The
Company generated $25,000 in revenue during the six months ended June 30, 2025, related to producer fees
paid resulting from surplus tax credits. For the six months ended June 30, 2024, the film VPER accounted for
48.57% 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

Cost
of revenue was $0 for the six months ended June 30, 2025, compared to approximately $1.1 million for the same
period in 2024. The lack of cost of revenue in 2025 corresponds directly to the absence of film production activities,
as no direct costs such as production crew, equipment, or location expenses were incurred. In 2024, the cost of revenue was attributable
to expenses associated with active film projects, including talent fees, production costs, and post-production expenses.

Operating
Expenses

Operating
expenses rose substantially to approximately $2.5 million for the six months ended June 30, 2025, compared to approximately $153 thousand
for the same period in 2024. The increase was primarily attributable to approximately $1.8 million in share-based compensation related
to consulting services in 2025, incurred to attract and retain key consultants supporting the Company’s strategic planning and
pre-production activities. In the comparable 2024 period, share-based compensation totaled approximately $67 thousand.

Executive-related
costs also contributed to the increase, including CEO fees of $180 thousand and CFO accounting services of approximately $103 thousand
in 2025, compared to $0 and approximately $16 thousand, respectively, in 2024. These expenses reflect the engagement of executive leadership
to oversee completion of the 2023 and 2024 audits and the preparation of the S-1 registration statement.

Additional
increases in 2025 included audit fees of approximately $47 thousand, legal fees of approximately $23 thousand, and consulting expenses
of approximately $260 thousand, versus approximately $8 thousand in legal fees, $17 thousand in consulting expenses, and no audit fees
in 2024. These increases primarily reflect the Company’s emphasis on audit completion and regulatory compliance.

Other
operating expenses included a reduction in office rent to approximately $4 thousand in 2025 from approximately $8 thousand in 2024, consistent
with reduced leased office space as production activities were paused. The Company also recorded approximately $5 thousand in bad debt
expense in 2025, with no comparable expense in 2024. Minor items such as bank charges, professional fees, and accounting fees remained
relatively consistent or increased modestly due to the administrative demands of 2025.

Other
Income

other income was recorded for the six months ended June 30, 2025, compared to approximately $20 thousand for the same period in 2024.
The other income in 2024 primarily consisted of miscellaneous non-operating income comprised of reimbursements related to prior projects.
The absence of such income in 2025 reflects the Company’s focus on audit and pre-production activities, which did not generate
similar miscellaneous income.

Interest
Expense

Interest
expense decreased to approximately $120 thousand for the six months ended June 30, 2025, from approximately $474
thousand for the same period in 2024. The reduction in interest expense was primarily due to the production financing related to
project in 2024 that the Company did not incur in the comparable period in 2025.

Gain
on Transfer of Corporate and Member Interest