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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agencies such as CAA or WME the majority of whom have greater resources than we currently have. an IP development company, we both compete with and work with major U.S. and international talent agencies which have significantly greater resources than we do. Most of the major U.S. agencies have more resources with which to compete for IP, ideas, storylines, and scripts created by their own contracted individuals such as actors, directors and other personnel required for development and packaging. Although they usually don’t have development budgets, this may have an adverse effect on our business, results of operations and financial condition. Our IP content creation business is dependent upon the success of a limited number of film releases 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.

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 point of sale. If, however, our movies and series fail to achieve
domestic sale 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 sale 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 a material adverse effect on our financial
results and cash flows. Although we have demonstrated past success and will continue to develop our IP packages until it sells. 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 oversupplies 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, animation version 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 mitigates the costs of production and marketing the completed series or movie. Our invested development
funds are paid back at point of sale to minimize risk. Although we participate in revenues 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 productions fees paid to
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 third party relationships with online digital streaming platforms, and we may be unable to secure such relationships.

anticipate entering into sales agreements containing revenue sharing provisions with online digital streaming platforms and movie studios
that purchase and produce our IP content. Pursuant to these revenue share provisions, we will earn a portion of revenues as fees once
our movies and series are produced and distributed online. Although we already have relationships in place, such as with Netflix, failure
to secure such relationships with online digital streaming platforms could have a material adverse effect on our results of operations.

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 commercial success of any project is often dependent on factors beyond
our control, including market acceptance and quality of our services. 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 buyers in the market.

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 have negative impact on the price of
our common stock.

Technological
advances may reduce demand for films.

The
entertainment industry in general, and the motion picture industry in particular, are continuing to undergo significant changes, primarily
due to technological developments. Because of this rapid growth of technology, we have developed a flexible business model that relies
on development of IP for streaming sites as well as movie franchises for potential theatrical release. Shifting consumer tastes and the
popularity and availability of other forms of entertainment, make it impossible to accurately predict the overall effect these factors
will have on the potential revenue from and profitability of theatrical feature-length motion pictures. Streaming sites also purchase
movie franchises so any failure of the theatrical release business would result in a shift to pitching movie packages to streaming sites.

decline in the popularity of entertainment, film and leisure activities could adversely impact our business.