SEC Filing Document

Company: Ambitious Entertainment, Inc.
Ticker: 
CIK: 1900851
Filing Type: DRS
Document Type: DRS
Date Filed: 2025-07-17
Accession Number: 0001493152-25-011282
Exchange: 
SIC Code: 7812
SIC Description: Services-Motion Picture & Video Tape Production
URL: https://www.sec.gov/Archives/edgar/data/1900851/000149315225011282/filename1.htm

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negative impact on the price of our common stock. Technological advances may reduce demand for films. The entertainment industry in general, and the motion picture industry in particular, are continuing to undergo significant changes, primarily due to technological developments. Because of this rapid growth of technology, we have developed a flexible business model that relies on development of IP for streaming sites as well as movie franchises for potential theatrical release. Shifting consumer tastes and the popularity and availability of other forms of entertainment, make it impossible to accurately predict the overall effect these factors will have on the potential revenue from and profitability of theatrical feature-length motion pictures. Streaming sites also purchase movie franchises so any failure of the theatrical release business would result in a shift to pitching movie packages to streaming sites. decline in the popularity of entertainment, film and leisure activities could adversely impact our business.

Because
our operations are affected by general economic conditions and consumer tastes, our future success is unpredictable. The demand for entertainment,
film, and series as well as leisure activities has historically tended to be highly sensitive to consumers’ disposable incomes,
and thus a decline in general economic conditions could reduce the level of consumers’ disposable income, in turn, having a material
adverse effect on our business, operating results and financial condition and the price of shares of our common stock.

Public
tastes are unpredictable and subject to change and may be affected by changes in the country’s political and social climate. A
change in public tastes could have a material adverse effect on our business, operating results and financial condition and the price
of shares of our common stock.

is possible that our IP projects may infringe on other copyrighted concepts. Litigation arising out of infringement or other commercial
disputes could cause us to incur expenses and impair our competitive advantage.

Although
we ensure we have legally secured all IP we develop with scrutinized agreements with the rights holder, we cannot be certain that our
projects will not be seen by some to infringe upon existing copyrights or other intellectual property rights held by third parties. We
cannot ensure that litigation will not arise from disputes involving these third parties. We may incur substantial expenses in defending
against prospective claims, regardless of their merit. Successful claims against us may result in substantial monetary liability, significantly
impact our results of operations in one or more quarters, or materially disrupt the conduct of our business. Our success depends in part
on our ability to obtain and enforce intellectual property protection for our projects, to preserve our trade secrets and to operate
without infringing the proprietary rights of third parties.

The
validity and breadth of claims covered in our copyrights involve complex legal and factual questions and, therefore, may be highly uncertain.
No assurances can be given that:

●	that
the scope of any future intellectual property protection will exclude competitors or provide
competitive advantages to us;

●	that
any copyrights will be held valid if subsequently challenged;

●	that
others will not claim rights in, or ownership of, the potential copyrights or other proprietary
rights we hold; or

●	that
our intellectual property will not infringe or be alleged to infringe on the proprietary
rights of others.

Furthermore,
there can be no assurance that others have not developed or will not legally or illegally develop similar projects. Also, whether or
not additional intellectual property protection is issued to the company, others may hold or receive intellectual protection covering
projects that were subsequently developed by the company. Although we will have legally secured the IP, no assurance can be given that
others will not, or have not independently developed or otherwise acquired substantially equivalent intellectual property.

Failure
to manage our growth effectively could cause our business to suffer and have an adverse effect on our financial condition and operating
results.

have experienced significant growth in a short period of time. To manage our growth effectively, we must continually evaluate and evolve
our organization by effectively managing our employees, operations, finances, technology and development and capital investments efficiently.
Our efficiency, productivity and the quality of our projects may be adversely impacted if we do not train our new personnel, particularly
our sales and support personnel, quickly and effectively, or if we fail to appropriately coordinate across our organization. Additionally,
our rapid growth may place a strain on our resources, infrastructure, and ability to maintain the quality of our platform. In future
periods, our revenue or profitability could decline or grow more slowly than we expect. Failure to manage our growth effectively could
cause our business to suffer and have an adverse effect on our financial condition and operating results.

may experience fluctuations in our operating results, which could make our future operating results difficult to predict or cause our
operating results to fall below analysts’ and investors’ expectations.

Our
operating results have fluctuated in the past and we expect our future operating results to fluctuate due to a variety of factors, many
of which are beyond our control. Fluctuations in our operating results could cause our performance to fall below the expectations of
analysts and investors, and adversely affect the price of our common stock. Because our business is changing and evolving rapidly, our
historical operating results may not be necessarily indicative of our future operating results. Factors that may cause our operating
results to fluctuate include the following:

●	Timing
and performance of film releases: Our revenues can vary significantly based on the timing,
number, and commercial success of our film releases. Delays in production, unexpected changes
in release schedules, or underperformance at the box office or on digital platforms may result
in material fluctuations in revenue and profitability.

●	Variability
in production and marketing costs: The costs associated with developing, producing, and
promoting films can be unpredictable and vary widely from project to project. Budget overruns,
changes in production scope, or increased marketing spend may adversely impact our margins
and operating results.

●	Shifts
in consumer preferences and distribution platforms: Rapid changes in viewer preferences,
audience fragmentation, or disruption in traditional distribution channels (such as the decline
of theatrical releases in favor of streaming) may impact the demand for our content and affect
our ability to monetize it effectively across different platforms.

Based
upon the factors above and others beyond our control, we have a limited ability to forecast our future revenue, costs and expenses, and
as a result, our operating results may, from time to time, fall below our estimates or the expectations of analysts and investors.

our costs increase, we may not be able to generate sufficient revenue to sustain profitability.

expect to expend resources to grow our business. We anticipate continued growth that could require further financial and other resources
to, among other things:

●	Develop,
produce, and market original film and television content across multiple formats and platforms;

●	Expand
our distribution channels, including direct-to-consumer and streaming platforms, both domestically
and internationally;

●	Attract
and retain top creative talent, production partners, and promotional collaborators, including
social media influencers and brand sponsors.

Investing
in the foregoing, however, may not yield anticipated returns. Consequently, as our costs increase, we may not be able to generate sufficient
revenue to sustain profitability.

Servicing
our debt will require a significant amount of cash, and we may not have sufficient cash flow from our business to pay our debt.

Our
ability to make scheduled payments of the principal of, to pay interest on or to refinance our indebtedness depends on our future performance,
which is subject to economic, financial, competitive and other factors beyond our control.

may not generate cash flow from operations in the future sufficient to service our debt and make necessary capital expenditures, especially
if the offering contemplated by this prospectus is unsuccessful. If we are unable to generate such cash flow, we may be required to adopt
one or more alternatives, such as selling assets, restructuring debt or obtaining additional equity capital on terms that may be onerous
or highly dilutive. Our ability to refinance our indebtedness will depend on the capital markets and our financial condition at such
time. We may not be able to engage in any of these activities or engage in these activities on desirable terms, which could result in
a default on our debt obligations.

could become involved in litigation matters that may be expensive and time consuming, and, if resolved adversely, could harm our business,
financial condition, or results of operations.

Although
we are not currently involved in any litigation matters, any such litigation to which we are a party may result in an onerous or unfavorable
judgment that may not be reversed upon appeal, or we may decide to settle lawsuits on similarly unfavorable terms. Any negative outcome
could result in payments of substantial monetary damages or fines, or changes to our products or business practices, and accordingly
our business, financial condition, or results of operations could be materially and adversely affected.