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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2024, and 2023, totaled $921,653 and $1,364,645, respectively, related to production loans and convertible notes. Gain on Transfer of Corporate and Member Interest For the year ended December 31, 2024, the Company recognized a gain on transfer of corporate and member interest related to four subsidiaries totaling $1,933,261. Change in Fair Value of Derivative Liability The Company recorded a change in fair value derivative of $201,422 and $3,066,579, respectively for the years ended December 31, 2024, and Reconciliation of Net Loss to Adjusted EBITDA For the Years ended December 31, Net loss per GAAP $ (2,247,849 ) $ (3,134,059 ) Additions: Interest 921,653 1,364,645 Taxes - - Depreciation - - Amortization - - Stock-Based Compensation 1,216,000 - Change in Fair Value of Derivative Liabilities 201,422 3,066,579 Adjusted EBITDA (Non-GAAP) $ 91,226 $ 1,297,165 Liquidity and Capital Resources Liquidity For the six months ended June 30, 2025 and June 30, 2024

June 30, 2025, we had a negative working capital of $10,960,480, which included cash of $1,519. We reported a net income of $163,059,
and our net cash used in operating activities for the six months ended June 30, 2025, totaled $275,712. There were no cash flows from
investing activities during the six months ended June 30, 2025, and our cash provided by financing activities for the six months ended
June 30, 2025, totaled $264,875.

Our
sources and uses of cash were as follows:

Cash
Flows from Operating Activities

experienced negative cash flows from operating activities of approximately $275 thousand for the six months ended June 30, 2025. Net
cash used in operating activities primarily reflected net income and comprehensive income of $214,488, adjusted for non-cash items and
changes in working capital. Significant non-cash adjustments included amortization of debt discount and issuance costs of approximately
$5,200, stock-based compensation of approximately $1.85 million, a loss on impairment of investment of approximately $129 thousand, a
decrease related to the change in fair value of derivatives of approximately $1.89 million, and a gain on the transfer of interest in
subsidiaries of approximately $1.1 million. Changes in operating assets and liabilities included an increase in accounts payable of approximately
$61 thousand, an increase in accrued expenses of approximately $314 thousand, a decrease in accounts receivable of approximately $105
thousand, and a decrease in prepaid expenses of approximately $4,200.

experienced negative cash flows from operating activities of approximately $78 thousand for the six months ended June 30, 2024. Net cash
used in operating activities primarily reflected net loss and comprehensive loss of 474,899, adjusted for non-cash items and changes
in working capital. Significant non-cash adjustments included amortization of debt discount and issuance costs of approximately $160
thousand, an increase related to the change in fair value of derivatives of approximately $143 thousand, stock-based compensation of
approximately $399 thousand, and a loss on the transfer of interest in subsidiaries of approximately $583 thousand. Changes in operating
assets and liabilities included an increase in accounts receivable of approximately $1.1 million, a decrease in accounts payable of approximately
$211 thousand, an increase in accrued expenses of approximately $124 thousand, a decrease in other receivables of approximately $3,300,
a decrease in tax credit receivable of approximately $28 thousand, and a decrease in prepaid expenses of approximately $229 thousand.

Cash
Flows from Investing Activities

For
the six months ended June 30, 2025, there were no inflows or outflows of cash related to investing activities. We experienced negative
cash flows from investing activities of approximately $562 thousand for the six months ended June 30, 2024, related to investments in
film projects.

Cash
Flows from Financing Activities

experienced positive cash flows from financing activities for the six months ended June 30, 2025, in the amount of approximately $265
thousand. We received proceeds notes payable, advances from related parties, and issuance of common stock of $25,000, approximately $353
thousand, and $2,500, respectively. We remitted payments to related ted parties of approximately $115 thousand.

experienced positive cash flows from financing activities for the six months ended June 30, 2024, in the amount of approximately $564
thousand. We received proceeds from production financing, advances from related parties, and issuance of convertible notes payable of
approximately $482 thousand, approximately $46 thousand, and $100 thousand, respectively. We remitted payments to related parties of
approximately $64 thousand.

Non-Cash
Transfers of Interest

During
the six months ended June 30, 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. The transferred subsidiary
owned the film rights to FATE.

During
the six months ended June 30, 2024, the Company transferred its 100% interest in AMFAD and CD, to Press Play Productions,
LLC, a related party for a total consideration of $20. The transferred subsidiaries owned the film rights to All My Friends are Dead
and Cold Deck (See Note 13).

Additionally,
during the six months ended June 30, 2024, the Company transferred its 100% interest in Viper to an unrelated third party
for total consideration of $10. The transferred subsidiary owned the film rights to Viper (See Note 13).

For
the fiscal year ended December 31, 2024 and December 31, 2023

December 31, 2024, we had negative working capital of $12,682,410, which included cash of $12,356, inclusive of reserved cash
of $8,735. We reported a net loss of $2,247,849 and our net cash used in operating activities totaled $5,128,724 our cash
used in investing totaled $20,837, and out cash provided by financing activities totaled $5,077,740.

Our
sources and uses of cash were as follows:

Cash
Flows from Operating Activities

experienced negative cash flows from operating activities for the year ended December 31, 2024, in the amount of $5,128,724. The
net cash used in operating activities for the year ended December 31, 2024, primarily reflected a net loss of $2,258,151 adjusted for
the add-back of non-cash items consisting of amortization of debt discount and debt issuance cost of $215,761, a change in fair
value derivative of $201,422, decrease in investments (non-cash) of $99,070, impairment loss of $85,837, stock-based compensation
of $1,216,001, gain on transfer of interest in subsidiaries of $503,132 offset with a change operating assets and liabilities consisting
of an increase in accounts payable of $219,850, a decrease in accrued expenses of $952,191, a decrease in accounts receivable of $2,866,973,
a decrease of tax credit receivable of $681,727, an increase in other receivable of $28,101, and a decrease of prepaid expenses of $123,610.

experienced negative cash flows from operating activities for the year ended December 31, 2023, in the amount of $4,646,188. The
net cash used in operating activities for the year ended December 31, 2023, primarily reflected a net loss of $3,162,100 adjusted for
the add-back of non-cash items consisting of amortization of debt discount and debt issuance cost of $496,894, a change in fair
value derivative of $3,066,579, decrease in investments (non-cash) of $103,500, modification of debt of $8,333 offset with a change
operating assets and liabilities consisting of an increase in accounts payable of $525,931, an increase in accrued expenses of $574,547,
an increase in accounts receivable of $5,457,441, an increase of tax credit receivable of $358,126, an increase in other receivable
of $27,024, an increase of prepaid expenses of $357,301, a decrease in content assets of $190,020, and an increase in deferred offering
costs of $250,000.

Cash
Flows from Investing Activities

experienced negative cash flows from investing activities of $20,837. The net cash used in investing activities included investments
of $20,837 for the year ended December 31, 2024, compared to negative cash flows from investing activities of $396,220 for the year ended
December 31, 2023, relating to investments.

Cash
Flows from Financing Activities

experienced positive cash flows from financing activities for the year ended December 31, 2024, in the amount of $5,077,740. We
received proceeds from production financing, advances from related parties, proceeds from issuance of convertible notes payable,
and capital contributions of $3,151,977, 217,005, $125,000, and $2,055,275, respectively. We remitted payments for production
financing, advances from related parties, and debt issuance costs of $358,300, $101,572, and $11,645, respectively.

experienced positive cash flows from financing activities for the year ended December 31, 2023, in the amount of $5,089,581. We
received proceeds from production financing, short term production loans, advances from related parties, and issuance of convertible
notes payable of $76,074, $4,146,503, 774,152, and 442,460, respectively. We remitted payments for production financing and advances
from related parties of $178,079 and $171,529, respectively.

Non-Cash
Transfers of Interest

March 31, 2024, the Company transferred its 100% interest in AMFAD and CD, to Press Play Productions, LLC, a related party for a total
consideration of $20. The transferred subsidiaries owned the film rights to All My Friends are Dead and Cold Deck (See
Note 13).