SEC Filing Document

Company: Ambitious Entertainment, Inc.
Ticker: 
CIK: 1900851
Filing Type: DRS/A
Document Type: DRS/A
Date Filed: 2025-10-08
Accession Number: 0001493152-25-017387
Exchange: 
SIC Code: 7812
SIC Description: Services-Motion Picture & Video Tape Production
URL: https://www.sec.gov/Archives/edgar/data/1900851/000149315225017387/filename1.htm

Chunk 14 of 63
Word Count: 1444
Character Count: 9020

Document Content:

proceeds. If we do not use the net proceeds that we receive in this offering effectively, our business, operating results and financial condition could be harmed. do not anticipate that we will pay dividends on our common stock and, consequently, your ability to achieve a return on your investment will depend on appreciation in the price of our common stock. have never declared or paid any dividends on our common stock. We intend to retain any earnings to finance the operation and expansion of our business, and we do not anticipate paying any cash dividends in the foreseeable future. In addition, in the future we may enter into agreements that prohibit or restrict our ability to declare or pay dividends on our common stock. As a result, you may only receive a return on your investment in share of our common stock if the market price of our shares increases.

Anti-takeover
effects of certain provisions of Nevada state law may hinder a potential takeover of us.

Though
we are not currently subject to Nevada’s control share law, in the future, we may become subject to it. A corporation is subject
to Nevada’s control share law if it has more than 200 stockholders, at least 100 of whom are stockholders of record and residents
of Nevada, and it does business in Nevada or through an affiliated corporation. The law focuses on the acquisition of a “controlling
interest”, which means the ownership of outstanding voting shares sufficient, but for the control share law, to enable the acquiring
person to exercise the following proportions of the voting power of the corporation in the election of directors: (i) one-fifth or more
but less than one-third; (ii) one-third or more but less than a majority; or (iii) a majority or more. The ability to exercise such voting
power may be direct or indirect, as well as individual or in association with others.

The
effect of the control share law is that the acquiring person, and those acting in association with it, obtains only such voting rights
in the control shares as are conferred by a resolution of the stockholders of the corporation, approved at a special or annual meeting
of stockholders. The control share law contemplates that voting rights will be considered only once by the other stockholders. Thus,
there is no authority to strip voting rights from the control shares of an acquiring person once those rights have been approved. If
the stockholders do not grant voting rights to the control shares acquired by an acquiring person, those shares do not become permanent
non-voting shares. The acquiring person is free to sell its shares to others. If the buyers of those shares themselves do not acquire
a controlling interest, their shares do not become governed by the control share law.

control shares are accorded full voting rights and the acquiring person has acquired control shares with a majority or more of the voting
power, any stockholder of record, other than an acquiring person, who has not voted in favor of approval of voting rights is entitled
to demand fair value for the redemption of such stockholder’s shares.

addition to the control share law, Nevada has a business combination law, which prohibits certain business combinations between Nevada
corporations and “interested stockholders” for two years after the “interested stockholder” first becomes an
“interested stockholder”, unless the corporation’s board of directors approves the combination in advance or thereafter
by both the board of directors and 60% of the disinterested stockholders. For purposes of Nevada law, an “interested stockholder”
is any person who is (i) the beneficial owner, directly or indirectly, of 10% or more of the voting power of the outstanding voting shares
of the corporation, or (ii) an affiliate or associate of the corporation and at any time within the two previous years was the beneficial
owner, directly or indirectly, of 10% or more of the voting power of the then outstanding shares of the corporation. The definition of
the term “business combination” is sufficiently broad to cover virtually any kind of transaction that would allow a potential
acquiror to use the corporation’s assets to finance the acquisition or otherwise to benefit its own interests rather than the interests
of the corporation and its other stockholders. The effect of Nevada’s business combination law is to potentially discourage parties
interested in taking control of us from doing so if it cannot obtain the approval of our board of directors.

May 2025, Nevada adopted amendments to its corporate law that may further complicate unsolicited takeover attempts. These amendments
define a “controlling stockholder” as a person or group having voting power sufficient to elect a majority of the corporation’s
directors and impose a limited fiduciary duty on such stockholders not to exert undue influence over directors or officers that would
cause a breach of fiduciary duty and confer a material, non-ratable benefit to the controller. The amendments also provide a statutory
safe harbour whereby such conflict transactions are presumed valid if approved or recommended by a committee of disinterested directors.
This presumption may only be rebutted under limited circumstances. These statutory protections may enhance the influence of our board
of directors and significant stockholders and may deter potential acquirors who are unwilling or unable to comply with the procedural
requirements under Nevada law.

Our
officers, directors and principal stockholders currently own a substantial number of shares of our common stock and have, and following
the offering will continue to have, the power to significantly influence the vote on all matters submitted to a vote of our stockholders.

of ____, 2025, our Co-President and Interim Chief Executive Officer, Mr. Kirk Shaw, beneficially owned [●] shares of our common
stock, representing [●]% of our issued and outstanding shares of our common stock. Upon completion of this offering, Mr. Shaw will
hold approximately [●]% (or [●]% if the underwriters’ overallotment option is exercised in full) of our issued and
outstanding common stock. As a result, Mr. Shaw will have the ability to control matters affecting our stockholders, including the
election of directors, the acquisition or disposition of assets, and the future issuance of shares of our common stock. After the
offering and listing of our shares of common stock on the NYSE American, we will be a “controlled company” within the meaning
of the NYSE American listing rules. This concentration of voting power and control could have a significant effect in delaying, deferring
or preventing an action that might otherwise be beneficial to our other stockholders and be disadvantageous to our stockholders with
interests different from those individuals. Therefore, you should not invest in reliance on your ability to have any control over our
company.

For
as long as we are an emerging growth company, we will not be required to comply with certain requirements that apply to other public
companies.

are an “emerging growth company” as defined in Section 2(a) of the Securities Act. For as long as we are an emerging growth
company, unlike other public companies, we will not be required to, among other things: (i) provide an auditor’s attestation report
on management’s assessment of the effectiveness of our system of internal control over financial reporting pursuant to Section
404(b) of the Sarbanes-Oxley Act, (ii) comply with any new requirements adopted by the Public Company Accounting Oversight Board requiring
mandatory audit firm rotation or a supplement to the auditor’s report in which the auditor would be required to provide additional
information about the audit and the financial statements of the issuer, (iii) provide certain disclosures regarding executive compensation
required of larger public companies, or (iv) hold nonbinding advisory votes on executive compensation and any golden parachute payments
not previously approved. In addition, an emerging growth company can take advantage of the extended transition period provided in Section
7(a)(2)(B) of the Securities Act for adopting new or revised financial accounting standards. We intend to take advantage of the longer
phase-in periods for the adoption of new or revised financial accounting standards until we are no longer an emerging growth company.
If we were to subsequently elect instead to comply with these public company effective dates, such election would be irrevocable.

will remain an emerging growth company for up to five full fiscal years, although we will lose that status sooner if we have more than
$1.235 billion of revenues in a fiscal year, have more than $700 million in market value of our common stock held by non-affiliates (and
have been a public company for at least 12 months and have filed one annual report on Form 10-K with the SEC), or issue more than $1.0
billion of non-convertible debt over a three-year period.