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

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our audit provides a reasonable basis for our opinion. Critical Audit Matters Critical audit matters are matters arising from the current period audit of the financial statements that were communicated or required to be communicated to the audit committee and that (1) relate to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective, or complex judgements. We determined that there are no critical audit matters. Bush & Associates CPA LLC have served as the Company’s auditor since 2024. Henderson, Nevada July PCAOB ID Number 6797 N. Gibson Road, Henderson, Nevada 89014 ● 702.703.5979 ● www.bushandassociatescpas.com AMBITIOUS ENTERTAINMENT, INC. CONSOLIDATED BALANCE SHEETS December 31, December 31, ASSETS Current Assets Cash $ 3,621 $ 76,888 Cash reserve 8,735 - Accounts receivable 290,597 5,528,441 Tax credit receivable - 973,126 Other receivable 31,396 27,024 Subscription receivable 5,000 5,000 Prepaid expenses and other current assets 116,742 357,301

Investments 128,650 292,720

Deferred offering cost 250,000 250,000

Total Current Assets 834,741 7,510,500

TOTAL ASSETS $	834,741 $	7,510,500

LIABILITIES AND STOCKHOLDERS’ EQUITY

Current Liabilities

Accounts payable $	955,696 $	614,031

Accrued expenses 656,418 787,444

Due to related parties 633,332 894,789

Production financing 775,761 2,685,370

Short term production loans - 4,146,503

Convertible notes payable, net 2,021,771 1,681,010

Derivative liability 8,474,173 7,908,430

Total Current Liabilities 13,517,151 18,717,577

Production financing, non-current - 76,074

TOTAL LIABILITIES 13,517,151 18,793,651

Commitments and contingencies

Stockholders’ Equity

Preferred stock, $0.0001 par value; 1,000,000 shares authorized; 237,340 shares issued and outstanding as of December 31, 2024, and December 31, 2023 24 24

Common stock, $0.0001 par value; 150,000,000 shares authorized; 7,440,000 and 6,800,000 shares issued and outstanding, as of December 31, 2024, and December 31, 2023, respectively 744 680

Additional paid in capital 1,081,138 229,522

Accumulated deficit (13,815,668	) (11,513,455	)

Accumulated other comprehensive income (loss) 51,352 78

TOTAL STOCKHOLDERS’ DEFICIT (12,682,410	) (11,283,151	)

TOTAL LIABILITIES AND STOCKHOLDERS’ DEFICIT $	834,741 $	7,510,500

The
accompanying notes are an integral part of these audited consolidated financial statements

AMBITIOUS
ENTERTAINMENT, INC.

CONSOLIDATED
STATEMENTS OF OPERATIONS

Years ended

December 31,

Revenue $	9,289,445 $	7,028,441

Cost of revenues 11,232,576 2,629,827

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

Operating expenses

Selling, general and administrative 1,052,166 2,943,547

Selling, general and administrative - related parties - 173,393

Total operating expenses 1,052,166 3,116,940

Loss from operations (2,995,297	) 1,281,674

Other Income (Expenses):

Other income 23,099 15,491

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

Loss on impairment of investments (85,837	) -

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

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

Total other income (expenses) 747,448 (4,415,733	)

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

Foreign exchange translation (10,302	) (28,041	)

Net Loss and comprehensive loss $	(2,258,151	) $	(3,162,100	)

Loss per share of common stock - basic and diluted $	(0.31	) $	(0.48	)

Weighted average number of shares of common stock outstanding - basic and diluted 7,162,027 6,516,438

The
accompanying notes are an integral part of these audited consolidated financial statements

AMBITIOUS
ENTERTAINMENT, INC.

CONSOLIDATED
STATEMENTS OF CHANGES IN SHAREHOLDERS’ DEFICIT

Accumulated

Additional Other

Preferred Stock Common Stock Paid in Accumulated Comprehensive

Shares Amount Shares Amount Capital Deficit Loss Total

Balance - December 31, 2022 237,340 $	24 6,300,000 $	630 $	224,572 $	(8,351,355	) $	- $	(8,126,129	)

Common stock issued for cash - - 500,000 50 4,950 - - 5,000

Other comprehensive income - - - - - - 78 78

Net loss - - - - - (3,162,100	) - (3,162,100	)

Balance - December 31, 2023 237,340 $	24 6,800,000 $	680 $	229,522 $	(11,513,455	) $	78 $	(11,283,151	)

Common stock issued for cash - - 640,000 64 1,215,936 - - 1,216,000

Adjustment related to issuance of convertible debt - - - - (364,320	) - - (364,320	)

Other comprehensive income - - - - - (44,062	) 51,274 7,212

Net loss - - - - - (2,258,151	) - (2,258,151	)

Balance - December 31, 2024 237,340 $	24 7,440,000 $	744 $	1,081,138 $	(13,815,668	) $	51,352 $	(12,682,410	)

The
accompanying notes are an integral part of these audited consolidated financial statements

AMBITIOUS
ENTERTAINMENT, INC.

CONSOLIDATED
STATEMENTS OF CASH FLOWS

Years ended

December 31,

CASH FLOWS FROM OPERATING ACTIVITIES

Net loss $	(2,258,151	) $	(3,162,100	)

Adjustments to reconcile net loss to net cash used in operating activities:

Amortization of debt discount and issuance costs 215,761 496,894

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

Modification of debt - 8,333

Decrease in investments (non-cash) 99,070 103,500

Impairment loss 85,837 -

Stock-based compensation 1,216,001 -

Non-cash gain on transfer of interest in subsidiaries (503,132	) -

Changes in operating assets and liabilities:

Accounts receivable (2,866,973	) (5,457,441	)

Tax credit receivable (681,727	) (358,126	)

Other receivable (28,101	) (27,024	)

Prepaid expenses 123,610 (357,301	)

Content assets - 190,020

Deferred offering cost - (250,000	)

Accounts payable 219,850 525,931

Accrued expenses (952,191	) 574,547

Net cash used in operating activities (5,128,724	) (4,646,188	)

CASH FLOWS FROM INVESTING ACTIVITIES

Investments (20,837	) (396,220	)

Net cash used in investing activities (20,837	) (396,220	)

CASH FLOWS FROM FINANCING ACTIVITIES

Proceeds from production financing 3,151,977 76,074

Repayments of production financing (358,300	) (178,079	)

Proceeds from short-term production loans - 4,146,503

Debt issuance costs / loan origination fees (11,645	) -

Advances from related parties 217,005 774,152

Repayments to related parties (101,572	) (171,529	)

Proceeds from issuance of common stock - -

Proceeds from issuance of convertible notes payable 125,000 442,460

Capital Contributions 2,055,275 -

Net cash provided by financing activities 5,077,740 5,089,581

Effect of foreign exchange rates on cash and cash equivalents 7,289 78

Net change in cash (64,532	) 47,251

Cash at beginning of period 76,888 29,637

Cash at end of period $	12,356 $	76,888

SUPPLEMENTAL CASH FLOW INFORMATION:

Cash paid for income taxes $	- $	-

Cash paid for interest $	- $	-

NON CASH INVESTING AND FINANCING ACTIVITIES

Convertible note issued for settlement of due to related party $	- $	83,333

Transfer of interest in subsidiaries $	(503,132	) $	-

Initial derivative liabilities recognized as a debt discount $	12,500 $	53,056

Issuance of common stock for subscription receivable $	- $	-

The
accompanying notes are an integral part of these audited consolidated financial statements

AMBITIOUS
ENTERTAINMENT, INC.

NOTES
TO CONSOLIDATED FINANCIAL STATEMENTS

December
31, 2024, and 2023

NOTE
1 - ORGANIZATION AND LIQUIDITY

Organization
and Business Overview

Ambitious
Entertainment, Inc., (“Ambitious”, “the Company”, “We”, “Us”) a Nevada corporation, was
incorporated in September 2020 to pursue an innovative media content development strategy that pursues opportunities generated from 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 is a leading independent media entertainment company which sources, finances, develops and produces
IP-based series and movies in “partnership” with the industry’s foremost creative artists, streaming sites, and studios.
The Company acquires and controls its own movie or series IP which it then packages internally into a lucrative asset for sale directly
to streaming sites and movie studios or, when strategically practical, the Company produces its IP in-house. The IP we secure are rights
to books, scripts, life-rights, or other IP such as blogs, vlogs, and short videos.

The
Company has four wholly owned subsidiaries including Dead Man’s Hand Production, LLC, (“DMH”), 1421135 B.C. LTD (“Cold
Deck Film, LLC” or “CD” or “Cold Deck”), AMFAD Productions CAD Inc. (“All My Friends Are Dead”,
“AMFAD”), and Scorpion Productions, Inc. (“Scorpion”, “Viper”) included in the consolidated financial
statements for the year ended December 31, 2023.

The
Company has six wholly owned subsidiaries including Dead Man’s Hand Production, LLC, (“DMH”), 1421135 B.C. LTD (“Cold
Deck Film, LLC” or “CD” or “Cold Deck”), AMFAD Productions CAD Inc. (“All My Friends Are Dead”,
“AMFAD”), Scorpion Productions, Inc. (“Scorpion”, “Viper”), FATE USA, LLC (“FATE”), and
Rage Movie, LLC (“Guns of Redemption” or “GOR” or “Rage”) included in the consolidated financial
statements for the year ended December 31, 2024. Five of the subsidiaries were transferred out of the Company during the year ended December

Going
Concern

The
Company’s consolidated financial statements are prepared in accordance with Generally Accepted Accounting Principles (“GAAP”)
of the United States including the assumption of a going concern basis, which contemplates the realization of assets and liquidation
of liabilities in the normal course of business. However, as shown in the accompanying consolidated financial statements, the Company
had a net loss of $2.2 million, an accumulated deficit of $13.8 million, and cash used in operations of $5.5 million for the year ended
December 31, 2024. The Company expects to continue to incur significant expenditures to develop its technology and is currently not reserving
cash to repay convertible notes. As such, there is substantial doubt about the Company’s ability to continue as a going concern.