SEC Filing Document

Company: Ambitious Entertainment, Inc.
Ticker: 
CIK: 1900851
Filing Type: S-1
Document Type: S-1
Date Filed: 2026-05-15
Accession Number: 0001493152-26-023581
Exchange: 
SIC Code: 7812
SIC Description: Services-Motion Picture & Video Tape Production
URL: https://www.sec.gov/Archives/edgar/data/1900851/000149315226023581/forms-1.htm

Chunk 10 of 57
Word Count: 1500
Character Count: 9663

Document Content:

can, which could materially and adversely affect our ability to outbid in order to secure high-quality IP and talent and thereby negatively impact our business, results of operations, and financial condition. While we believe we have competitive advantages, including our ability to creatively finance and access emerging marketing power, we cannot assure you that these advantages will enable us to compete effectively against larger, well-established agencies or that we will be able to maintain or grow our share of desirable IP or talent. Our IP content creation business is dependent upon the success of six to eight film releases, two to three series, to theatrical, linear and digital media streaming sites in any one year and the unexpected commercial failure of any one of them could have a material adverse effect on our financial results and cash flows. Ninety percent of our revenue will be derived from IP content creation.

Our
IP content creation business is substantially dependent upon the success of the number of film releases and digital streaming site acquisitions
in any one year. The unexpected delay in release or commercial failure of just one of these films or digital streaming sites could have
an adverse impact on our results of operations and cash flows in both the year of release and in the future. Historically, feature films
and series that are successful in the domestic online and theatrical market are generally also successful in the international and ancillary
markets, although each movie and series is different, and there is no way to guarantee such results. The IP packaging model makes
Ambitious less dependent on future sales since our investment is paid back at the point of sale. If, however, our movies and series
fail to achieve domestic sales or box office success, their success in the international sales market, box office and ancillary
markets and our business, future fees and profit participation could be adversely affected. Further, we can make no assurances that the
historical correlation between sales results to streaming sites and studios and results from international sales and ancillary
sales will continue in the future. If our movies and series do not perform well in the domestic or international streaming or theatrical
markets and ancillary markets, or our digital media sales do not perform as anticipated, the failure of any one of these could have
a material adverse effect on our financial results and cash flows. Although our executive management team has demonstrated past
success in the production, packaging, distribution, and commercial performance of prior content projects, we cannot guarantee
that our future IP packages will be successfully sold, financed, distributed or commercially successful. Although there can
be no assurance that every IP we develop will sell into the market on terms that will be acceptable to us, we can continue to develop
the IP until it finds a home in the market.

Our
lack of diversification may make us vulnerable to oversupply in the market.

Most
of the major U.S. film studios and streaming sites are part of large diversified corporate groups with a variety of other operations,
including television networks and cable channels, and online streaming sites, which can provide both means of distributing their
products and stable sources of earnings that offset fluctuations in the financial performance of their motion picture and television
operations. The number of series and movies developed and packaged by competitors, particularly the major U.S. talent agencies, online
streaming sites and film studios, in any given period may create an oversupply of product in the market, and that may reduce our sales
and make it more difficult for our IP content to succeed.

Our
operating results depend on product costs, public tastes and promotion success.

expect to generate our future revenue from the development and production of television series, feature films, especially from franchises
that include prequels, sequels, animated versions and games. Our future revenues will depend upon the timing and the level of
market acceptance of our IP content, as well as upon the buyer’s cost to produce, distribute and promote the series and movies.
Our IP content creation business approach attempts to mitigate the costs of production and marketing the completed series or movie.
Our invested development funds are paid back at the point of sale to minimize risk. Although we participate in revenue
streams from the later production of a series and movie, this can depend primarily on the feature film’s acceptance by the public,
which cannot be predicted and does not necessarily bear a direct correlation to the production costs incurred. The commercial success
of a series and movie also depends upon promotion and marketing and certain other factors. Accordingly, our revenues are, and will continue
to be, extremely difficult to forecast.

One
or two of our contemplated projects may not be accepted by distributors and/or the marketplace and our business may fail as a direct
result of such lack of market acceptance.

The
ultimate profitability of any project we offer for sale into the market depends upon its ultimate appeal to a streaming site or studio
in relation to their cost of its production and distribution. The audience appeal of a given concept depends, among other things, on
unpredictable critical reviews and changing public tastes, and such appeal cannot be anticipated with certainty. If certain streaming
sites or studios do not like, are not willing to pay for, or otherwise do not approve of an individual movie or series we have developed,
it may be put on hiatus until we can shape it to meet the needs of a streaming site or studio. To mitigate these issues, our business
has multiple and varied IP projects designed for wide market appeal.

Our
future success depends on our ability to develop and package new series and movies to sell them to streaming sites, movie studios and
distribution channels. The inability to target IP for current market tastes can limit our growth prospects.

Our
business success is completely dependent on our ability to successfully develop movies and series for sale to streaming sites, movie
studios and distributors who then incur the production costs. Revenues derived from both packaging and later production fees paid
to the Company will represent vital funds necessary for our continued operations. The loss or damage of any of our business relationships
and/or revenues derived therefrom will limit our ability to sell our projects.

rely on relationships with online digital streaming platforms to distribute and monetize our content, and we do not currently
have long-term distribution agreements in place. Because we are dependent on successfully negotiating individual transactions, we
may be unable to secure distribution for our content on commercially acceptable terms, or at all.

do not currently have binding long-term distribution or revenue-sharing agreements with online digital streaming platforms. Our ability
to monetize our intellectual property depends on our management team’s industry relationships and our ability to negotiate individual
content sales or licensing arrangements on a project-by-project basis.

Historically,
our arrangements with streaming platforms have been negotiated separately for each project and typically provide for revenue sharing
based on distribution revenues after recoupment of agreed production and marketing costs. These arrangements do not obligate the platforms
to acquire or distribute any minimum number of our productions and generally do not provide guaranteed minimum revenues.

Because
we are dependent on successfully negotiating individual transactions, we may be unable to secure distribution for our content on commercially
acceptable terms, or at all. In addition, the streaming market is highly competitive and subject to changing content preferences and
economic pressures affecting platform programming budgets. If we are unable to enter into distribution arrangements with major streaming
platforms, our results of operations and cash flows would be materially adversely affected. Further, if a limited number of streaming
platforms account for a substantial portion of our revenues in any period, the loss of any such relationship could have a material adverse
effect on our business.

Because
of the speculative nature of our business, future operating results are difficult to predict and dependent on external factors.

The
film and television content business is extremely competitive and the commercial success of any project is often dependent on
factors beyond our control, including market acceptance and the quality of our content. Each motion picture or series is
a unique piece of art that depends on unpredictable audience reaction to determine commercial success. There can be no assurance that
our feature films or series will be favorably received by viewers.

anticipate that our revenues will likely be volatile, and we will likely experience significant quarter-to-quarter fluctuations in revenues
and net income or loss. Until we realize consistent revenue and cash flow from developing and selling our IP content, our quarter-to-quarter
comparisons of historical operating results will not be a good indication of future performance. It is possible that in some future quarter,
operating results may fall below expectations of investors and securities analysts, which could adversely impact the trading
price of our common stock.

Technological
advances may reduce demand for films.