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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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:

●	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 a 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, prepaid expenses, accounts payable and accrued liabilities
approximate fair value due to the short-term maturities of these instruments.

Set
out below are the Company’s financial instruments that are required to be remeasured at fair value on a recurring basis and their
fair value hierarchy as of December 31, 2025, and 2024:

December 31, 2025 Level 1 Level 2 Level 3 Carrying Value

Liabilities

Derivative Liability - Warrants $	- $	- $	6,810,870 $	6,810,870

Derivative Liability – conversion feature - - 1,903,589 1,903,589

Total Liabilities $	- $	- $	8,714,459 $	8,714,459

December 31, 2024 Level 1 Level 2 Level 3 Carrying Value

Liabilities

Derivative Liability - Warrants $	- $	- $	6,921,846 $	6,921,846

Derivative Liability – conversion feature - - 1,552,327 1,552,327

Total Liabilities $	- $	- $	8,474,173 $	8,474,173

Stock-based
Compensation

The
Company accounts for share-based payment awards in accordance with ASC 718, Share-Based Compensation. Share-based awards issued
in exchange for services are measured at their estimated grant-date fair value. Determining the grant-date fair value of equity awards
requires management to make judgments and assumptions regarding the valuation of the Company’s common stock and the terms of the
awards. Stock-based compensation expense is recognized over the requisite service period.We believe the fair value of our common stock
represents a reasonable estimate at the grant date; however, changes in the underlying assumptions, including the estimated value of
our common stock, could materially affect the amount of stock-based compensation expense recognized in future periods.

Content
Assets

The
Company sources intellectual property (“IP”) to create and develop original film and video content for sale or distribution
to third parties. Content assets related to original productions consist of the unamortized costs of completed and in-process video content
produced by the Company. Capitalized costs include direct production costs, production overhead, and financing costs, including capitalized
interest when applicable.

Content
assets are monetized individually and are reviewed for impairment on a title-by-title basis when events or changes in circumstances indicate
that the carrying value may not be recoverable.

The
Company did not capitalize any content assets during the years presented, and no amortization or impairment related to content assets
was recorded during those periods. The Company expects to capitalize content assets in future periods as it begins production activities.

Impairment
of Long-lived Assets

The
Company reviews its long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of
an asset may not be recoverable. Recoverability is assessed by comparing the carrying value of the asset to the estimated undiscounted
future cash flows expected to be generated by the asset. If the carrying amount exceeds the estimated undiscounted future cash flows,
an impairment loss is recognized in an amount equal to the excess of the carrying value over the asset’s fair value.

The
Company’s estimates of future cash flows are based on assumptions regarding the expected performance of the related film and the
Company’s future business outlook. Actual results may differ from those estimates.

During
the year ended December 31, 2025, the Company recorded an impairment loss of $128,650 related to one film. During the year ended December
31, 2024, the Company recorded an impairment loss of $85,837 related to expired film rights for a project.

Revenue
recognition

The
Company recognizes revenue in accordance with Accounting Standards Codification (“ASC”) Topic 606, Revenue from Contracts
with Customers (“ASC 606”). Revenue is recognized when control of the promised goods or services is transferred to customers
in an amount that reflects the consideration to which the Company expects to be entitled in exchange for those goods or services.

determine revenue recognition for arrangements within the scope of ASC 606, the Company applies the following five-step model:

Identify the contract(s) with a customer;

Identify the performance obligations in the contract;

Determine the transaction price;

Allocate the transaction price to the performance obligations in the contract; and

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 it will collect the consideration to which it is entitled in
exchange for the goods or services transferred. At contract inception, the Company evaluates the promised goods or services in each contract
to identify performance obligations and determines whether each promised good or service is distinct. Revenue is recognized in an amount
equal to the transaction price allocated to the respective performance obligations when (or as) those performance obligations are satisfied.

Disaggregation
of Revenue

For
the years ended December 31, 2025 and 2024, 100% of the Company’s revenue was derived from production services. The Company did
not generate revenue from feature films or licensing activities during these periods.

The
Company’s production service arrangements do not provide for significant rights of return, refunds, or warranties. Accordingly,
no material provisions for returns, refunds, or warranty obligations were recorded during the years presented.

Production
Services Revenue

The
Company generates revenue from production service agreements pursuant to which it provides production-related services to customers.

Revenue
from production service agreements is recognized over time as the Company satisfies its performance obligations because the services
are performed for the customer and the customer simultaneously receives and consumes the benefits of those services as they are provided.

Progress
toward completion is measured using an input method based on costs incurred relative to total estimated costs (the “cost-to-cost”
method), which the Company believes best depicts the transfer of control of services to the customer. Revenue is recognized based on
the proportion of costs incurred to total estimated costs.

Costs
associated with production service agreements are expensed as incurred. The determination of total estimated costs involves significant
judgment and is reviewed on a periodic basis. Revisions to cost estimates are recorded in the period in which the facts that give rise
to the revision become known.

Contract
Balances

The
Company’s contract balances consist of contract assets and contract liabilities arising from revenue recognized under contracts
with customers.

●	Contract
assets represent revenue recognized in excess of amounts billed to customers when the Company’s
right to payment is conditional on factors other than the passage of time.

●	Contract
liabilities (deferred revenue) represent payments received in advance of satisfying the related
performance obligations.

The
Company did not have any contract assets or contract liabilities as of December 31, 2025 or 2024.

Performance
Obligations

The
Company satisfies its performance obligations for production services over time, accounting for 100% of the Company’s total revenue
for the years ended December 31, 2025, and December 31, 2024. The satisfaction of performance obligations is measured using the percentage-of-completion
method, as described above.

For
the years presented, there were no material unsatisfied performance obligations as of the balance sheet date.

Cost
of Revenue