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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(128,000 ) Marketing and advertising - (7,747 ) Operating expenses (181,715 ) (465,093 ) Other income - 23,099 Interest expense (504,650 ) (953,163 ) Gain on transfer of corporate and member interest 1,008,070 1,933,261 Change in fair value of derivative liability 342,626 (201,422 ) Loss on issuance of convertible debt (362,912 ) (226,820 ) Loss on impairment of investment (128,650 ) (85,837 ) Exchange loss (7,333 ) - Net loss $ (1,812,498 ) $ (1,290,293 ) Revenue the years ended December 31, 2025, and 2024, the Company engaged in the development and production of IP-based movies and recognized revenue of $1,225,000 and $9,289,445, respectively. 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 years ended December 31, 2025, and 2024: Years Ended Years Ended December 31, December

Film Revenue %
of Total Revenue Revenue %
of Total Revenue

AMFAD $	- N/A $	396,257 4.27	%

VPER - N/A 1,048,780 11.29	%

FATE - N/A 4,851,181 52.22	%

GOR - N/A 2,278,787 24.53	%

Other 1,225,000 100.00% 704,000 7.58	%

Total $	1,225,000 $	9,289,445

Revenue
decreased to $1.2 million for the year ended December 31, 2025 from $9.3 million for the year ended December 31, 2024, representing a
decrease of $8.1 million, or approximately 87%.

The
decline was primarily attributable to a significant reduction in the number and scale of film projects in active production and distribution
during 2025 as compared to 2024. During 2024, the Company generated revenue from multiple film productions, including projects that reached
key revenue recognition milestones and distribution events. In contrast, during 2025, the Company’s activities were substantially
limited to a small number of licensing and fixed-fee production service arrangements.

Additionally,
2025 revenue was derived primarily from fixed-fee production service agreements structured to reimburse substantially all direct production
costs. As a result, both revenue and cost of revenue were significantly lower than the prior year, when the Company bore greater production
risk and incurred higher aggregate production expenditures.

Management
strategically limited new production commitments during 2025 while prioritizing capital markets initiatives, liquidity management, and
a repositioning of its production strategy. In 2025, the Company made a strategic decision to significantly slow its conventional film
production activities and pivot toward researching and developing its influencer-integrated movie model, including the development of
distinct, themed content slates. This shift in operational focus contributed directly to the reduction in revenue-generating projects
during the period and the corresponding decline in revenue as compared to 2024.

The
Company believes this transitional period is intended to reposition its production capabilities and align its future projects with its
influencer-driven model. The Company currently expects to begin launching a cohesive film slate reflecting this strategy in the second
quarter of 2026, alongside the debut of a new television slate. This model is designed to integrate influencer audience metrics and targeted
digital reach into traditional production frameworks and to explore additional monetization channels, including direct-to-fan engagement
models, platform-specific content extensions, proprietary merchandise initiatives, and ancillary distribution opportunities.

There
can be no assurance that this strategic repositioning will generate the anticipated results or that future revenues will increase as
a result of these initiatives.

For
the year ended December 31, 2025, the Company generated its revenue in connection with a production service agreement with one studio,
representing 100% of its revenue from the studio.
For the year ended December 31, 2024, Customer FATE accounted for 52% 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

Costs
of revenue for the years ended December 31, 2025, and 2024, totaled $1,225,000 and $10,330,076, respectively.

Cost
of revenue decreased to $1.2 million for
the year ended December 31, 2025 from $10.3 million for the year ended December 31, 2024. The decrease was directly correlated
with the reduced level of production activity during 2025. In 2024, the Company incurred substantial production
expenditures, including cost overruns and impairment charges. In 2025, costs were primarily associated with fixed-fee production
service arrangements, which were structured to approximate the related revenue recognized.

Gross
Profit Volatility Analysis

For
the year ended December 31, 2025, the Company recognized revenue of $1,225,000, which was fully offset by cost of revenue of $1,225,000,
resulting in zero gross profit for the period. This compares to a gross loss of $1.0 million for the year ended December 31, 2024.

For
the year ended December 31, 2025, the Company recognized revenue of $1,225,000, which was fully offset by cost of revenue of $1,225,000,
resulting in zero gross profit. The 2025 revenue was generated primarily under a licensing arrangement in conjunction with fixed-fee
production service agreements pursuant to which the Company agreed to produce films for a contractually fixed fee of approximately $600,000
per project. Because the production service fees were structured to reimburse substantially all direct production costs, the related
cost of revenue approximated the revenue recognized, resulting in no gross margin for the period.

This
compares to a gross loss of $1.0 million for the year ended December 31, 2024. The gross loss in 2024 was primarily driven by the following
factors:

1.	Film
Production Cost Overruns
Two
of the Company’s film productions incurred unexpected cost overruns totaling approximately
$1.8 million. These overruns were primarily attributable to increased labor costs and higher-than-anticipated
post-production expenses. In response, the Company has implemented enhanced budgetary controls
and monitoring processes to mitigate the risk of future cost overruns.

2.	Recognition
of Costs Related to Fully Recognized Revenue
During
2024, the Company recognized approximately $650,000 of cost of revenue related to an investment
in a film for which all associated revenue was fully recognized during the year. The timing
of these cost recognitions had a significant negative impact on gross profit.

3.	Impairment
of Third-Party Film Investment
The
Company recorded an impairment charge of $85,837 related to an investment in a third-party
film. This impairment reflects management’s assessment of the project’s future
recoverability and is consistent with the Company’s impairment policy.

4.	Labor
and Material Inflation
Inflationary
pressures within the entertainment industry during 2024, particularly related to labor and
production materials, further contributed to elevated production costs.

While an impairment of approximately $0.1 million was recognized during 2025, this represents a significant decrease compared to 2024,
when total production costs of approximately $10.3 million reflected an elevated risk profile associated with certain projects. Management
continues to address these risks through enhanced cost management practices and increased project-level oversight.

Operating
Expenses

Operating
expenses increased to $2,159,649 for the year ended December 31, 2025, from $738,780 for the year ended December 31, 2024, representing
an increase of $1,420,869, or approximately 192%.

The
increase was primarily attributable to:

●	Professional fees , increased
to $879,645 in 2025 from $137,940 in 2024, resulting in an increase of $741,705 or approximately
538%. The increase is primarily due to higher legal, accounting, audit, and advisory costs
incurred in connection with the Company’s preparation for a potential public offering
and related corporate matters.

●	Consulting expenses , increased
to $623,289 in 2025 from $128,000 in 2024, resulting in an increase of $495,289 or approximately
387%. The increase reflects the engagement of strategic, financial, and operational consultants
to support capital markets readiness and corporate development initiatives.

●	Share-based compensation
increased to $475,000 in 2025 from $0 in 2024, resulting to an increase of $475,000 or 100%.
The increase is due to equity awards granted for advisory services.

These
increases were partially offset by a decrease in marketing and advertising and other general and administrative expenses to $0 and $181,715
in 2025 from $7,747 and $465,093 in 2024, resulting in a decrease of $7,747 and $283,378 or approximately 100% and 61%, respectively.
The decrease is primarily reflecting reduced marketing and advertising efforts and administrative costs compared to the prior year.

Management
expects professional fees and consulting expenses to remain elevated in the near term as the Company continues to pursue capital markets
activities.

Other
Income

The
Company did not generate other income for the year ended December 31, 2025. Other income for the year ended December 31, 2024 totaled
$23,099 and primarily consisted of interest income and bond refunds.

Interest
Expense

Interest
expense for the years ended December 31, 2025, and 2024, totaled $504,650 and $953,163, respectively related to production loans and
convertible notes. The reduction of interest expense of $448,513 or 47% directly related to the reduction of film projects in 2025 compared
to 2024 due to decreased production financing needed.

Loss
on issuance of debt

The
Company recorded a loss on issuance of convertible debt of $362,912 and $226,820, resulting in an increase of $136,092 or approximately
60% for the years ended December 31, 2025, and 2024, respectively.

Gain
on transfer of corporate and member interest