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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parties, proceeds from issuance of convertible notes payable, and capital contributions of $3,151,977, 217,005, $125,000, and $2,055,275, respectively. We remitted payments for production financing, advances from related parties, and debt issuance costs of $358,300, $101,572, and $11,645, respectively. experienced positive cash flows from financing activities for the year ended December 31, 2023, in the amount of $5,089,581. We received proceeds from production financing, short term production loans, advances from related parties, and issuance of convertible notes payable of $76,074, $4,146,503, 774,152, and 442,460, respectively. We remitted payments for production financing and advances from related parties of $178,079 and $171,529, respectively. Non-Cash Transfers of Interest 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 13).

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 13).

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 13).

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 13).

Recent
Financing

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, 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.

Related
Party Disclosure

Press
Play Productions, LLC, is a related party. The president of Press Play Productions is the son of the Company’s 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 (See Note 13).

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 (See Note 13).

Accounting
Treatment

For
the six months ended June 30, 2025 and June 30, 2024

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

pre-tax gain of $1,008,080 was recognized in the unaudited consolidated statement of operations under “Other Income (Expenses)”
as a Gain (loss) on Transfer of Corporate and Member Interest for the six months ended June 30, 2025.

pre-tax loss of $791,140 was recognized in the unaudited consolidated statement of operations under “Other Income (Expenses)”
as a Gain (loss) on Transfer of Corporate and Member Interest for the six months ended June 30, 2024.

The
results of operations of FATE were included in the unaudited consolidated financial statements through June 30, 2025 (See
Note 13).

The
results of operations of AMFAD, CD, and Viper were included in the unaudited consolidated financial statements through June 30,
2024 (See Note 13).

For
the fiscal year ended December 31, 2024 and December 31, 2023

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

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 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 (See Note 13).

Financial
Impact

The
following balances were removed from the consolidated balance sheet as of the respective transfer dates (See Note 13):

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: $1,008,080

●	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.

Cash
Flow Statement Impact

The
transactions had no direct cash flow impact, as no cash was received (See Note 13).

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 (See Note 13).

Promissory
Note

During
the year ended December 31, 2022, the Company issued promissory notes to our related parties, totaling $334,072. The promissory notes
mature (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, and bear interest at the rate of 10% per annum.

The
promissory notes are recorded on the Company’s balance sheet under Due to related parties.

Transactions

Prior
to the year ended December 31, 2023, the Company had a liability of $367,167 from related party advances. During the year ended December
31, 2023, the Company received related party advancements totaling $774,151 and made repayments of $171,529 to related parties. Additionally,
the Company reclassified a related party loan of $75,000 to convertible debt. As of December 31, 2023, the net increase in related party
obligations amounted to $527,622, which is recorded under due to related parties on the balance sheet. The reclassification of the related
party loan to convertible debt is a non-cash transaction and has been disclosed accordingly in the financial statements.

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 13).

During
the six months ended June 30, 2025, the Company received approximately $353 thousand in advances from related parties,
and the Company made repayments of approximately $115 thousand.

During
the six months ended June 30, 2024, the Company received approximately $46 thousand in advances from related parties,
and the Company made repayments of approximately $64 thousand

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 from the date of these financial
statements.