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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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.

are currently funding our operations on a month-to-month basis prior to the receipt of the proceeds of this offering. 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.

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, 2024, and 2023.

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 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 and cash equivalents, 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 share-based payment awards exchanged for services at the estimated grant date fair value of the award.

Content
Assets

The
Company sources intellectual property (“IP”) to create and develop new films for sale to third parties. Content assets related
to original productions include the unamortized costs of both completed and in-process video content produced by the Company. Capitalized
costs include all direct production and financing costs, capitalized interest when applicable, and production overhead. Content assets
are monetized individually and therefore are reviewed at the individual level when an event or change in circumstance indicates a change
in the expected usefulness of the content, or the fair value may be less than the unamortized cost.

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 years ended December 31, 2024, and 2023. The Company
recognized a loss on impairment of investment of approximately $129 thousand for the six months ended June 30, 2025. There were not any
losses related to impairments during the six months ended June 30, 2024.

Revenue
Recognition

The
Company recognizes revenue when its customer obtains control of promised goods or services, in an amount that reflects the consideration
which the entity expects to receive in exchange for those goods or services. To determine revenue recognition for arrangements that are
within the scope of Accounting Standards Codification (ASC) Topic 606, Revenue from Contracts with Customers (Topic 606), the Company
performs the following five steps:

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 the entity will collect the consideration it is entitled to
in exchange for the goods or services it transfers to the customer. At contract inception, once the contract is determined to be within
the scope of Topic 606, the Company assesses the goods or services promised within each contract and determines those that are performance
obligations and assesses whether each promised good or service is distinct. The Company then recognizes as revenue the amount of the
transaction price that is allocated to the respective performance obligation when (or as) the performance obligation is satisfied.

Disaggregation
of Revenue

For
the years ended December 31, 2024, and December 31, 2023, 100% of the Company’s revenue was derived from production services. Revenue
related to production service agreements is recognized on a percentage-of-completion basis, as described below. The Company did not generate
revenue from feature films or other licensing activities during these periods.

For
the six months ended June 30, 2025, and 2024, 100% of the Company’s revenue was derived from production services.
Revenue related to production service agreements is recognized on a percentage-of-completion basis, as described below. The Company did
not generate revenue from feature films or other licensing activities during these periods.

Production
Services Revenue

For
production service agreements, revenue is recognized over time on a percentage-of-completion basis as the Company satisfies its performance
obligations. The percentage of completion is determined based on actual costs incurred relative to total estimated costs, and related
costs are expensed as incurred in proportion to the percentage of completion.

Contract
Balances

The
Company’s contract balances include the following:

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