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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on Transfer of Corporate and Member Interest for the three months ended March 31, 2024, The results of operations of FATE was included in the unaudited consolidated financial statements through March 31, 2025 (See Note 13). The results of operations of AMFAD, CD, and Viper were included in the unaudited consolidated financial statements through March 31, 2024 (See Note 13). For the fiscal year ended December 31, 2024 and December 31, 2023 The transfers of interest were accounted for as deconsolidation of a subsidiaries. As a result: pre-tax gain of $1,933,261 was recognized in the consolidated statement of operations under “Other Income (Expenses)” as a Gain on Transfer of Corporate and Member Interest. The results of operations of AMFAD, CD, and Viper were included in the consolidated financial statements through March 31, 2024. The results of operations of DMH were included in the consolidated financial statements through August 14, 2024.

The
results of operations of GOR were included in the consolidated financial statements through December 1, 2024 (See Note 13).

Financial
Impact

The
following balances were removed from the consolidated balance sheet as of the respective transfer dates (See Note 13):

March
31, 2024 (AMFAD, CD, and Viper):

●	Total
assets: $6,361,903

●	Total
liabilities: $5,659,783

●	Net
assets: $692,120

August
14, 2024 (DMH):

●	Total
assets: $887,535

●	Total
liabilities: $2,290,423

●	Net
liabilities: $1,402,888

December
1, 2024 (GOR):

●	Total
assets: $2,278,857

●	Total
liabilities: $3,700,350

●	Net
liabilities: $1,421,493

January
1, 2025 (FATE):

●	Total
assets: $440,288

●	Total
liabilities: $1,448,437

●	Net
liabilities: $1,008,149

March
31, 2024 (AMFAD, CD, and Viper):

●	Total
assets: $6,361,903

●	Total
liabilities: $5,659,783

●	Net
assets: $692,120

Cash
Flow Statement Impact

The
transactions had no direct cash flow impact, as no cash was received (See Note 13).

Post-Transfer
Obligations

Under
the terms of the transfer agreements, the transferees assumed all contractual obligations and liabilities of the respective subsidiaries.
The Company retains no post-transfer obligations related to these entities (See Note 13).

Promissory
Note

During
the year ended December 31, 2022, the Company issued promissory notes to our related parties, totaling $334,072. The promissory notes
mature (i) when the Company gets a financing with 25% of any financing going towards loan repayment until it is all paid or (ii) December
31, 2025, and bear interest at the rate of 10% per annum.

The
promissory notes are recorded on the Company’s balance sheet under Due to related parties.

Transactions

Prior
to the year ended December 31, 2023, the Company had a liability of $367,167 from related party advances. During the year ended December
31, 2023, the Company received related party advancements totaling $774,151 and made repayments of $171,529 to related parties. Additionally,
the Company reclassified a related party loan of $75,000 to convertible debt. As of December 31, 2023, the net increase in related party
obligations amounted to $527,622, which is recorded under due to related parties on the balance sheet. The reclassification of the related
party loan to convertible debt is a non-cash transaction and has been disclosed accordingly in the financial 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 three months ended March 31, 2025, the Company received $130,591 in advances from related parties, the Company made repayments of

During
the three months ended March 31, 2024, the Company received $130,591 in advances from related parties, the Company made repayments of

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 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 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