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

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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, 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 stock-based compensation in accordance with ASC 718, which requires that the fair value of equity awards be estimated
at the grant date. The determination of the fair value of our common stock for stock-based awards requires significant judgment, particularly
because the Company is privately held and does not have a public market for its shares. Stock-based compensation expense is recognized
over the requisite service period.

believe the fair value of our common stock represents a reasonable estimate at the grant date; however, changes in the underlying assumptions,
including the estimated value of our common stock, could materially affect the amount of stock-based compensation expense recognized
in future periods.

Content
Assets

The
Company sources intellectual property (“IP”) to create and develop original film and video content for sale or
distribution to third parties. Content assets related to original productions consist of the unamortized costs of completed
and in-process video content produced by the Company. Capitalized costs include direct production costs, production overhead,
and financing costs, including capitalized interest when applicable.

Content
assets are monetized individually and are reviewed for impairment on a title-by-title basis when events or changes in circumstances
indicate that the carrying value may not be recoverable.

The
Company did not capitalize any content assets during the years presented, and no amortization or impairment related to content assets
was recorded during those periods. The Company expects to capitalize content assets in future periods as it begins production activities.

Impairment
of Long-lived Assets

The
Company reviews its long-lived assets whenever events or changes in circumstances indicate that the carrying amount of an asset might
not be recoverable. An impairment loss would be recognized when projected undiscounted future cash flows are less than its carrying amount.
The expected cash flows are based on assumptions regarding the Company’s future business outlook. Actual results could differ from
these assumptions. The Company did not record any impairment losses during the year ended December 31, 2025, and 2024.

Revenue
recognition

The
Company recognizes revenue in accordance with Accounting Standards Codification (“ASC”) Topic 606, Revenue from Contracts
with Customers (“ASC 606”). Revenue is recognized when control of the promised goods or services is transferred
to customers in an amount that reflects the consideration to which the Company expects to be entitled in exchange
for those goods or services.

determine revenue recognition for arrangements within the scope of ASC 606, the Company applies the following five-step model:

Identify the contract(s) with a customer;

Identify the performance obligations in the contract;

Determine the transaction price;

Allocate the transaction price to the performance obligations in the contract; and

Recognize revenue when (or as) the entity satisfies a performance obligation.

Allocate the transaction price to the performance obligations in the contract; and

Recognize revenue when (or as) the entity satisfies a performance obligation.

The
Company applies the five-step model to contracts when it is probable that it will collect the consideration to which it is entitled in
exchange for the goods or services transferred. At contract inception, the Company evaluates the promised goods or services in each contract
to identify performance obligations and determines whether each promised good or service is distinct. Revenue is recognized in an amount
equal to the transaction price allocated to the respective performance obligations when (or as) those performance obligations are satisfied.

Disaggregation
of Revenue

For
the years ended December 31, 2025 and 2024, 100% of the Company’s revenue was derived from production services. The
Company did not generate revenue from feature films or licensing activities during these periods.

Production
Services Revenue

The
Company generates revenue from production service
agreements pursuant to which it provides production-related services to customers.

Revenue
from production service agreements is recognized
over time as the Company satisfies its performance obligations because the services are performed for the customer and the customer
simultaneously receives and consumes the benefits of those services as they are provided.

Progress
toward completion is measured using an input
method based on costs incurred relative to total estimated costs (the “cost-to-cost” method), which the Company believes
best depicts the transfer of control of services to the customer. Revenue is recognized based on the proportion of costs incurred
to total estimated costs.

Costs
associated with production service agreements are
expensed as incurred. The determination of total estimated costs involves significant judgment and is reviewed on a periodic basis.
Revisions to cost estimates are recorded in the period in which the facts that give rise to the revision become known.

Contract
Balances

The
Company’s contract balances include the following:

●	Deferred
Revenue: Represents payments received in advance of the performance obligations being
satisfied.

●	Content
Assets: Capitalized costs related to feature film programming rights, which are deferred
and recognized as revenue when the rights are transferred to the customer.

The
Company had no deferred revenue or capitalized content assets as of December 31, 2025 and 2024. The above descriptions of contract balances,
including content assets, are provided for informational purposes and relate to arrangements that may be entered into in future periods.

Performance
Obligations

The
Company satisfies its performance obligations for production services over time, accounting for 100% of the Company’s total revenue
for the years ended December 31, 2025, and December 31, 2024. The satisfaction of performance obligations is measured using
the percentage-of-completion method, as described above.

For
the years presented, there were no material unsatisfied performance obligations as of the balance sheet date.

Cost
of Revenue

Costs
incurred to produce feature films are capitalized when incurred and expensed when the movie rights are transferred. For production
service agreements, costs are recognized in proportion to the percentage of completion, consistent with the revenue recognition method.

The
costs incurred to acquire feature film programming rights, including advances, are capitalized.

Income
Taxes

Income
taxes are accounted for using an asset and liability approach for financial accounting and reporting for income taxes and recognition
and measurement of deferred assets are based upon the likelihood of realization of tax benefits in future years. Under this method, deferred
taxes are provided for the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial
reporting purposes and the amounts used for income tax purposes. Valuation allowances are established when management determines that
it is more likely than not that some portion or all of the net deferred tax asset, on a jurisdiction-by-jurisdiction basis, will not
be realized. The financial effect of changes in tax laws or rates is accounted for in the period of enactment.

From
time to time, the Company engages in transactions in which the tax consequences may be subject to uncertainty. Significant judgment is
required in assessing and estimating the tax consequences of these transactions. In determining the Company’s tax provision for
financial reporting purposes, the Company establishes a reserve for uncertain tax positions unless such positions are determined to be
more likely than not of being sustained upon examination, based on their technical merits. The Company’s policy is to recognize
interest and/or penalties related to income tax matters in income tax expense.