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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commissions and estimated offering expenses payable by us: Shares Purchased Total Consideration Weighted- Average Price Number Percent Amount Percent Per Share Existing stockholders % $ % $ New investors Total 100.0 % $ 100.0 % $ The number of shares that will be outstanding after this offering is based on [●] shares of common stock outstanding as of _________, 2025, but excludes: shares of our common stock reserved for future issuance under our equity compensation plans; shares of our common stock issuable upon the exercise of options outstanding as of _____, 2025 with a weighted average exercise price of $[●] per share; and shares of our common stock issuable upon the conversion of convertible notes outstanding as of _________, 2025 with a weighted average conversion price of $[●] per share. shares of our common stock issuance upon exercise by the underwriters of the over-allotment option. exercise of any Representative’s Warrants.

the extent that new options or other securities are issued under our equity incentive plan, or we issue additional shares of common stock
or preferred stock in the future, there will be further dilution to investors participating in this offering. In addition, we may choose
to raise additional capital because of market conditions or strategic considerations, even if we believe that we have sufficient funds
for our current or future operating plans. If we raise additional capital through the sale of equity or convertible debt securities,
the issuance of these securities could result in further dilution to our stockholders.

MANAGEMENT’S
DISCUSSION AND ANALYSIS

FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The
following discussion and analysis of our financial condition and results of operations for the years ended and should be read in conjunction
with our audited consolidated financial statements as of and for the fiscal years ended December 31, 2024 and 2023 and the related notes
thereto included elsewhere in this prospectus and our interim unaudited condensed consolidated financial statements as of and for the
three months ended March 31, 2025 and 2024 and the related notes thereto included elsewhere in this prospectus. The discussion and analysis
below are based on comparisons between our historical financial data for different periods and include certain forward-looking statements
about our business, operations and financial performance. These forward-looking statements are subject to risks, uncertainties, assumptions
and other factors described in “Risk Factors.” Our actual results may differ materially from those expressed in, or implied
by, those forward-looking statements. See “Special Note Regarding Forward-Looking Statements”.

Overview
and History

Ambitious
Entertainment, Inc., a Nevada corporation, was incorporated in September 2020 relating to the production and distribution of premium
digital content and original feature films. The Company was founded in order to pursue an innovative content development strategy aimed
at capitalizing on shifts in traditional media outlets and the rapid proliferation of video streaming services such as Netflix, Disney+,
Amazon Prime Video, Hulu and Max (formerly HBO Max) as well as all major movie studios.

Ambitious sources, finances, develops and produces IP-based series and movies in “partnership”
with the industry’s foremost creative artists, streaming sites, and studios. Ambitious is also built to harness the power of online
influencers, emerging technologies, and global financing through strategic partnerships with viral creators. By uniting A-list talent,
top-tier writers and directors, digital stars, and award-winning producers, we create TV and film content that sells fast, scales globally,
and monetizes early—often before traditional studios even react.

Components
of Our Results of Operations

Our
results of operations are primarily driven by the development, production, marketing, and distribution of film content. The following
summarizes the key components of our operating results:

Revenue

generate revenue primarily from development and production of IP-based movies.

Cost
of Revenue

Cost
of revenue includes expenses directly associated with the development, production, and delivery of our content. These include:

●	Film
production costs;

●	Talent
and crew payments;

●	Production
overhead and insurance.

Operating
Expenses

Operating
expenses primarily consist of:

●	Selling
and marketing expenses, including advertising, publicity, and promotional campaigns;

●	General
and administrative expenses, including labor costs, rent, legal and professional services,
and technology infrastructure;

●	Production
costs, including producers fees, director fees, and principal cast.

Other
Income (Expenses)

This
includes interest income, interest expense, changes in fair value of financial instruments, and other non-operating gains or losses.

Net
Loss

Net
loss reflects our total revenue less all costs and expenses. Our ability to achieve and sustain profitability depends on the commercial
success of our content, efficient cost management, and our ability to adapt to shifts in consumer behavior and distribution models.

Results
of Operations

Three
months ended March 31, 2025 compared to the three months ended March 31, 2024

The
following analysis on results of operations was based on the unaudited condensed consolidated financial statements, footnotes and related
information for the periods identified below.

The
following table presents our results of operations for the three months ended March 31, 2025 and March 31, 2024:

For the Three Months Ended

March 31, 2025 March 31, 2024

Total revenue $	- $	2,105,477

Cost of revenue - (1,088,363	)

Gross profit - 1,017,114

Operating expenses (1,524,511	) (41,224	)

Other income - 20,298

Interest expense (56,999	) (246,872	)

Gain (loss) on transfer of corporate and member interest 1,008,080 (891,140	)

Change in fair value of derivative liability 1,482,174 (29,888	)

Net loss $	907,867 $	(171,712	)

Revenue

the three months ended March 31, 2025, and 2024, the Company engaged in the development and production of IP-based movies and recognized
revenue of $0 and $2,105,477, 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 three months ended March 31, 2024 only as we did not generate
any revenues for the three months ended March 31, 2025:

Three Months Ended

March 31,

2024 % of Total

Film Revenue Revenue

AMFAD $	396,257 18.82	%

VPER 1,048,780 49.81	%

Other 650,000 30.87	%

Total $	2,105,477 100	%

The
Company did not generate revenue during the three months ended March 31, 2025, due to projects being scheduled later in the year. For
the three months ended March 31, 2024, film VPER accounted for 49.81 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 three months ended March 31, 2025, and 2024, totaled $0 and $1,088,363, respectively. The cost of revenue consisted
of expenses incurred related to film production.

Operating
Expenses

Operating
expenses consisted of selling, general, and administrative costs of $1,524,511 and $41,224 for the three months ended March 31, 2025,
and 2024, respectively.

Other
Income

Other
income for the three months ended March 31, 2025, and 2024, totaled $0 and $20,298, respectively which consisted of interest income and
bond refunds.

Interest
Expense

Interest
expense for the three months ended March 31, 2025, and 2024, totalled $56,999 and $246,872, respectively related to production loans
and convertible notes.

Gain
on Transfer of Corporate and Member Interest

For
the three months ended March 31, 2025, the Company recognized a gain on transfer of member interest of $1,008,080. For the three months
ended March 31, 2024, the Company recognized a loss on transfer of member interest of $891,140.

Change
in Fair Value of Derivative Liability

The
Company recorded a change in fair value derivative of $1,482,174 and $(29,888), respectively for the three months ended March 31, 2025,
and 2024.

Reconciliation
of Net Loss to EBITDA

Metric Amount

Net loss $	907,867

Additions:

Interest 56,999

Taxes -

Depreciation -

Amortization -

Stock-Based Compensation 902,500

Change in Fair Value of Derivative Liabilities (1,482,174	)

EBITDA (Non-GAAP) $	385,193

Fiscal
year ended December 31, 2024 compared to the fiscal year ended December 31, 2023

The
following analysis on results of operations was based primarily on the consolidated financial statements, footnotes and related information
for the period identified below and should be read in conjunction with the audited consolidated financial statements and the notes to
those statements for the years ended December 31, 2024, and 2023, which are included elsewhere in this annual report on Form 10-K. The
results discussed below are for the years ended December 31, 2024, and 2023.

The
following table presents our results of operations for the fiscal years ended December 31, 2024 and December 31, 2023:

For the Years Ended

December 31,

Total revenue $	9,289,445 $	7,028,441

Cost of revenue (11,232,576	) (2,629,827	)

Gross profit (1,943,131	) 4,398,614

Operating expenses (1,052,166	) (3,116,940	)

Other income 23,099 15,491

Interest expense (921,653	) (1,364,645	)

Gain on transfer of corporate and member interest 1,933,261 -

Change in fair value of derivative liability (201,422	) (3,066,579	)

Loss on impairment of investments (85,837	) -

Net loss $	(2,247,849	) $	(3,134,059	)

Revenue