SEC Filing Document

Company: Ambitious Entertainment, Inc.
Ticker: 
CIK: 1900851
Filing Type: DRS
Document Type: DRS
Date Filed: 2025-07-17
Accession Number: 0001493152-25-011282
Exchange: 
SIC Code: 7812
SIC Description: Services-Motion Picture & Video Tape Production
URL: https://www.sec.gov/Archives/edgar/data/1900851/000149315225011282/filename1.htm

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as a Gain on Transfer of Corporate and Member Interest. The results of operations of AMFAD, CD, and Viper were included in the consolidated financial statements through March 31, 2024.The results of operations of DMH were included in the consolidated financial statements through August 14, 2024.The results of operations of GOR were included in the consolidated financial statements through December 1, 2024. Financial Impact The following balances were removed from the consolidated balance sheet as of the respective transfer dates: March 31, 2024 (AMFAD, CD, and Viper): ● Total assets: $6,361,903 ● Total liabilities: $5,659,783 ● Net assets: $692,120 August 14, 2024 (DMH): ● Total assets: $887,535 ● Total liabilities: $2,290,423 ● Net liabilities: $1,402,888 December 1, 2024 (GOR): ● Total assets: $2,278,857 ● Total liabilities: $3,700,350 ● Net liabilities: $1,421,493 Cash Flow Statement Impact The transactions had no direct cash flow impact, as no cash was received. Post-Transfer Obligations

Under
the terms of the transfer agreements, the transferees assumed all contractual obligations and liabilities of the respective subsidiaries.
The Company retains no post-transfer obligations related to these entities.

NOTE
14 – INCOME TAX

The income tax expense (benefit) consisted of the following for the years ended December 31, 2024, and 2023:

December 31, December 31,

Total current $	- -

Total deferred - -

Deferred
income taxes reflect the net tax effects of temporary differences between the carrying amount of assets and liabilities for financial
reporting purposes and the amounts used for income tax purposes.

Tax
Rate Reconciliation

The
following is a reconciliation of the expected statutory federal income tax provision at the statutory federal income tax rate of 21%
to the actual income tax benefit for the years ended December 31, 2024, and 2023:

Year ended

December 31,

Income tax expense (credit) at statutory rate $	(474,211	) $	(664,041	)

Change of valuation allowance 474,211 664,041

Income tax expense (credit) $	- $	-

Deferred
Tax Assets and Liabilities

Significant
components of the Company’s deferred tax assets and liabilities as of December 31, 2024, and 2023, were as follows:

December 31,

Operating loss carry forward $	4,848,574 $	4,374,363

Valuation allowance (4,848,574	) (4,374,363	)

Deferred tax asset $	- $	-

Net
Operating Loss (NOL) Carryforwards

of December 31, 2024, the Company has federal net operating loss carryforwards of approximately $6.6 million available to offset future
taxable income. These NOLs expire in 2038, and their use is subject to limitations under Section 382 of the Internal Revenue Code.

The
Company has established a full valuation allowance against its deferred tax assets, including those related to NOLs, due to the uncertainty
of realizing these assets. The determination to maintain a full valuation allowance is based on the lack of sufficient positive evidence
to overcome the negative evidence of cumulative losses in recent periods.

Additional
Information

During
the years ended December 31, 2024, and 2023, the Company recognized no amounts related to tax interest or penalties associated with uncertain
tax positions. The Company is subject to taxation in the United States and various state jurisdictions, with no years currently under
examination by any jurisdiction.

NOTE
15 - COMMITMENT

Leases
and Long-term Contracts

The
Company has not entered into any long-term leases, contracts or commitments. The Company leases an office on a month-to-month basis.
For the year ended December 31, 2024, and 2023, the Company incurred rent expense of $12,173 and $9,012, respectively.

NOTE
16 – SUBSEQUENT EVENTS

January 1, 2025, the Company executed an Instrument of Transfer of Limited Liability Company Interest, pursuant to which it sold, assigned,
conveyed, and transferred 100% of its ownership interest in FATE USA, LLC, to a third-party transferee for a total consideration of $10.
In Instrument of Transfer of Limited Liability Company Interest agreement, the transferee accepted all Company contractual obligations,
and the Company has no further responsibility or obligations related to FATE.

June 2025, the film rights to an investment carried on the Company’s balance sheet as of December 31, 2024, expired without the
associated project being released. Management is currently in negotiations to extend the film right and management is evaluating the
financial impact of this event, which will be reflected in the Company’s financial statements for the year ending December 31,
2025. This event does not affect the carrying value of the investment as of December 31, 2024, as no impairment indicators were identified
as of that date.

Ambitious
Entertainment, Inc.

Condensed
Consolidated Balance Sheets

March 31, December 31,

(unaudited) *

ASSETS

Current Assets

Cash $	171 $	3,621

Cash reserve - 8,735

Accounts receivable 55,060 290,597

Other receivable - 31,396

Subscription receivable 5,000 5,000

Prepaid expenses and other
current assets 5,000 116,742

Investments 128,650 128,650

Deferred
offering cost 250,000 250,000

Total Current Assets 443,881 834,741

TOTAL
ASSETS $	443,881 $	834,741

LIABILITIES AND STOCKHOLDERS’
EQUITY

Current Liabilities

Accounts payable $	388,937 $	955,696

Accrued expenses 801,646 656,418

Due to related parties 740,222 633,332

Production financing - 775,761

Short term production loans 25,000 -

Convertible notes payable,
net 2,073,542 2,021,771

Derivative
liability 7,137,727 8,474,173

Total Current Liabilities 11,167,073 13,517,151

TOTAL
LIABILITIES 11,167,073 13,517,151

Commitments and contingencies

Stockholders’ Equity

Preferred stock, $0.0001 par value; 1,000,000 shares authorized; 237,340
shares issued and outstanding as of March 31, 2025, and December 31, 2024 24 24

Common stock, $0.0001 par value; 150,000,000 shares authorized; 8,070,000
and 7,440,000 shares issued and outstanding, as of March 31, 2025, and December 31, 2024, respectively 807 744

Additional paid in capital 2,132,347 1,081,138

Accumulated deficit (12,856,371	) (13,815,668	)

Accumulated other comprehensive
income - 51,352

TOTAL
STOCKHOLDERS’ DEFICIT (10,723,193	) (12,682,410	)

TOTAL
LIABILITIES AND STOCKHOLDERS’ DEFICIT $	443,881 $	834,741

Derived from audited information

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

Ambitious
Entertainment, Inc.

Unaudited
Condensed Consolidated Statements of Income and Comprehensive Income

For the Three
Months Ended March 31,

Revenue $	- $	2,105,477

Cost of revenues - 1,088,363

Gross profit - 1,017,114

Operating expenses

Selling,
general and administrative 1,524,511 41,224

Total
operating expenses 1,524,511 41,224

Loss from operations (1,524,511	) 975,890

Other Income (Expenses):

Other income - 20,298

Interest expense (56,999	) (246,872	)

Change in fair value of
derivative liability 1,482,174 (29,888	)

Gain (loss) on transfer
of corporate and member interest 1,008,080 (891,140	)

Exchange
gain (loss) (877	) -

Total
other income (expenses) 2,432,379 (1,147,602	)

Net
Income (Loss) $	907,867 $	(171,712	)

Foreign
exchange translation 51,429 (5,426	)

Net
Income (Loss) and comprehensive income (loss) 959,297 (177,137	)

Loss
per share of common stock - basic and diluted $	0.12 $	(0.14	)

Weighted
average number of shares of common stock outstanding - basic and diluted 7,573,889 1,244,888

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

Ambitious
Entertainment, Inc.

Unaudited
Consolidated Statement of Stockholders’ Equity (Deficit)

Accumulated

Additional Other

Preferred
Stock Common Stock Paid in Accumulated Comprehensive

Shares Amount Shares Amount Capital Deficit Loss Total

Balance - December

Common stock issued for
services - - 630,000 63 1,196,937 - - 1,197,000

Issuance of convertible
debt - - - - (145,728	) - - (145,728	)

Other comprehensive loss - - - - - - (51,352	) (51,352	)

Net
income - - - - - 959,297 - 959,297

Balance
- March 31, 2025 237,340 $	24 8,070,000 $	807 $	2,132,347 $	(12,856,371	) $	- $	(10,723,193	)

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

Common stock issued for
services - - 175,000 18 332,483 - - 332,501

Other comprehensive loss - - - - - 50,434 (78	) 50,356

Net
loss - - - - - (171,712	) - (171,712	)

Balance
- March 31, 2024 237,340 $	24 6,975,000 $	698 $	562,005 $	(11,634,732	) $	- $	(11,072,006	)

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

Ambitious
Entertainment, Inc.

Unaudited
Condensed Statements of Cash Flows

For the Three Months Ended

March

CASH FLOWS FROM OPERATING
ACTIVITIES

Net income
(loss) $	959,297 $	(177,137	)

Adjustments to reconcile
net loss to net cash provided by (used in) operating activities:

Amortization of debt discount
and debt issuance costs 1,771 79,621

Change in FV of derivative (1,482,174	) 29,888

Stock based compensation 1,197,000 332,501

Changes in operating assets
and liabilities:

Accounts receivable - (1,057,619	)

Tax credit receivable - 28,273

Other receivable - 3,295

Prepaid expenses - 228,745

Accounts payable 105,918 (207,807	)

Accrued
expenses 145,228 (22,358	)

Net cash provided (used
in) operating activities 927,040 (762,598	)

CASH FLOWS FROM INVESTING
ACTIVITIES

Investments - (450,950	)

Net
working capital changes from transfer of interest in subsidiaries (1,071,115	) 681,829

Net cash used in investing
activities (1,071,115	) 230,879

CASH FLOWS FROM FINANCING
ACTIVITIES

Proceeds from notes payable 25,000 -

Proceeds from production
financing - 481,825

Advances from related parties 130,591 -

Repayments to related parties (23,701	) (75,929	)

Proceeds
from issuance of convertible notes payable - 50,000