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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Incorporation for authorized capital stock to authorize the Company to issue 151,000,000 shares. The Company has authorized 150,000,000 shares of common stock with a par value of $0.0001 per share and 1,000,000 shares of Preferred Stock with a par value of $0.0001 per share. The Company shall have the authority to issue the shares of Preferred Stock in one or more series with such rights, preferences and designations as determined by the Board of Directors of the Company. Series A Preferred Stock The Company has designated 1,000,000 preferred shares, par value $0.0001, as Series A Preferred Stock. Holders of Series A Preferred Stock would have the right to vote with 1 vote per common share on any matters brought before the stockholders of the Company. The Series A Preferred Stockholders are not entitled to any dividends, mandatory conversion right, or liquidation preference, however, they do have a voluntary conversion right.

Series
A Preferred stock is redemption shares upon the occurrence of Liquidity event. The Company shall purchase all shares of Series A preferred
stock at a price of $3.00 per share.

Holders
of the Company’s Series A Preferred Stock shall have the right to convert at a ratio of 1 (one) share of the Company’s common
stock for 1 (one) share of the Company’s Series A Convertible Preferred Stock (subject to adjustments relating to stock splits,
distributions, mergers, consolidation, exchange of shares, recapitalization, reorganization, or other similar event).

During
the year ended December 31, 2020, the Company issued 205,473 shares of preferred series A stock for cash of $205,474.

During
the year ended December 31, 2021, the Company issued 31,867 shares of preferred series A stock for cash of $31,867.

of December 31, 2024, and 2023, the Company has 237,340 shares of Series A Convertible Preferred Stock issued and outstanding.

Preferred
Stock

Each
share of Preferred Stock entitles the holder to one vote, in person or proxy, on any matter on which an action of the stockholders of
the Company is sought.

Common
Stock

Each
share of Common Stock entitles the holder to one vote, in person or proxy, on any matter on which an action of the stockholders of the
Company is sought.

During
the year ended December 31, 2020, the Company issued 3,100,000 shares of commons stock for cash of $31,000. The Company also issued 1,700,000
common shares related to $17,000 of services rendered.

During
the year ended December 31, 2021, the Company issued 700,000 shares to affiliates for $7,000.

During
the year ended December 31, 2022, the Company issued 800,000
shares to an affiliate for $8,000.

During
the year ended December 31, 2023, the Company issued 500,000
shares to an affiliate for $5,000 which is recorded as a subscription receivable on the Company’s balance sheet.

During
the year ended December 31, 2024, the Company issued 640,000
shares of common stock for services rendered in connection with stock-based compensation expense of $1,216,000.

of December 31, 2024, and 2023, the Company had 7,440,000 and 6,800,000 shares of common stock issued and outstanding, respectively.

NOTE
12 - RELATED PARTY TRANSACTIONS

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).

of December 31, 2024, and 2023, the Company has a liability of $633,122 and $894,789 due to related parties, respectively.

Capital
Contributions

During
the year ended December 31, 2024, related parties made cash contributions of $2,055,275 to Guns of Redemption, a consolidated subsidiary
of the Company, to support ongoing operations. These contributions were non-interest bearing, had no stated maturity, and created no
repayment obligation. The contributions were recorded directly to the equity accounts of the subsidiary and were intended to be treated
as permanent additions to capital.

a result, these capital contributions are reflected within cash flows from financing activities in the consolidated statement of cash
flows. However, because the contributions were made at the subsidiary level and were subsequently included in the equity of the subsidiary
that was transferred as part of the disposition of ownership interest, they are not presented in the Company’s consolidated statements
of changes in shareholders’ deficit.

NOTE
13 – TRANSFER OF INTEREST

Nature
of the Transactions

During
the fiscal year ended December 31, 2024, the Company deconsolidated four wholly-owned subsidiaries and partially divested one subsidiary
as part of its strategic initiative to focus on the development of new film projects. The transactions were as follows:

1.	AMFAD
and CD :
On March 31, 2024, the Company transferred its 100% ownership interests in AMFAD and
CD to Press Play Productions, LLC, a related party, for total consideration of $20 .
These subsidiaries owned the film rights to All My Friends Are Dead and
Cold Deck .

2.	Viper :
On March 31, 2024, the Company transferred its 100% interest in Viper to an unrelated
third party for total consideration of $10. Viper owned the film rights to Viper .

3.	DMH
Production LLC (DMH) :
On August 14, 2024, the Company transferred 80% of its ownership interest in DMH Production
LLC equally to two unrelated third parties for total consideration of $10. The Company retained
a 20% ownership interest, which is now accounted for under the equity method. DMH
owned the film rights to Dead Man’s Hand .

4.	GOR :
On December 1, 2024, the Company transferred its 100% interest in GOR to an unrelated
third party for total consideration of $10. GOR owned the film rights to Guns of
Redemption .

Reason
for the Transfers

These
divestitures were part of the Company’s strategy to exit completed film projects once all anticipated revenue had been realized
and no further material benefit was expected. This approach allows the Company to reallocate resources to the development and production
of new film content.

For
each deconsolidated subsidiary, the following information is provided:

March
31, 2024 – AMFAD, CD, and Viper

●	Carrying
amount of assets derecognized: $6,361,903

●	Carrying
amount of liabilities derecognized: $5,659,783

●	Net
assets derecognized: $692,120

●	Total
consideration received: $30 (non-cash)

●	Gain
on deconsolidation: Included in the total gain below

●	Nature
of consideration: Non-cash; legal transfer of ownership

●	Retained
interest: None

●	Accounting
treatment of retained interest: N/A

●	Other
arrangements: Transferees assumed all contractual obligations and liabilities; Company retains
no ongoing responsibility.

August
14, 2024 – DMH Production LLC

●	Carrying
amount of assets derecognized: $887,535

●	Carrying
amount of liabilities derecognized: $2,290,423

●	Net
liabilities derecognized: ($1,402,888)

●	Total
consideration received: $10 (non-cash)

●	Gain
on deconsolidation: Included in total gain below

●	Retained
interest: 20%

●	Fair
value of retained interest: $0

●	Accounting
treatment of retained interest: No asset was recognized for the 20% retained interest, as
the fair value was determined to be immaterial based on the subsidiary’s negative net
asset position and lack of expected future cash flows.

●	Other
arrangements: None; the Company does not retain any continuing involvement, control, or obligations
related to DMH beyond its minority interest.

December
1, 2024 – GOR

●	Carrying
amount of assets derecognized: $2,278,857

●	Carrying
amount of liabilities derecognized: $3,700,350

●	Net
liabilities derecognized: ($1,421,493)

●	Total
consideration received: $10 (non-cash)

●	Gain
on deconsolidation: Included in total gain below

●	Retained
interest: None

●	Other
arrangements: Transferee assumed all obligations; Company retains no further responsibilities.

Gain
on Deconsolidation

a result of the above transactions, the Company recognized a pre-tax gain of $1,933,261, which is included in the consolidated statement
of operations under “Other Income (Expenses)” as “Gain on Transfer of Corporate and Member Interest.”

Cash
Flow Impact

There
was no impact to cash flows during the year ended December 31, 2024, as no cash consideration was received in any of the transactions.

Related
Party Disclosure