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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notes were considered anti-dilutive and, therefore, excluded from diluted net loss per share. December 31, December 31, (Share) (Share) Warrant A 4,000,000 4,000,000 Warrant B 1,045,566 945,566 Warrant C 1,045,566 945,566 Convertible note 1,150,365 1,040,365 Advertising Costs The Company follows the policy of charging the cost of advertising to expense as incurred. Advertising expense was nil for the years ended December 31, 2025, and 2024. Related Parties and Transactions The Company identifies related parties, and accounts for, discloses related party transactions in accordance with ASC 850, “Related Party Disclosures” and other relevant ASC standards. Parties, which can be an entity or individual, are considered to be related if they have the ability, directly or indirectly, to control the Company or exercise significant influence over the Company in making financial and operational decisions. Entities are also considered to be related if they are subject to common control or common significant influence.

Transactions
involving related parties cannot be presumed to be carried out on an arm’s-length basis, as the requisite conditions of competitive,
free market dealings may not exist. Representations about transactions with related parties, if made, shall not imply that the related
party transactions were consummated on terms equivalent to those that prevail in arm’s-length transactions unless such representations
can be substantiated.

Segment
Information

The
Company determines its operating segments in accordance with ASC 280, Segment Reporting, which requires the use of the management
approach. Under this approach, operating segments are identified based on the manner in which the Company’s chief operating decision
maker (“CODM”) organizes the Company for purposes of making operating decisions, assessing performance, and allocating resources.

Management
has determined that the Company operates as a single operating and reportable segment. The CODM evaluates the Company’s financial
performance on a consolidated basis and does not regularly review or allocate resources based on disaggregated financial information
by product, service line, or geographic region.

During
the year ended December 31, 2025, the Company adopted ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment
Disclosures. The adoption of ASU 2023-07 did not result in the identification of additional reportable segments. Because the Company
operates as a single reportable segment and the CODM evaluates performance on a consolidated basis, the required segment disclosures
under ASC 280 largely align with the consolidated financial statements.

Tax
credits and tax credit receivable

The
Company may be eligible to receive tax incentives and credits from U.S. state and local jurisdictions and foreign government agencies
to encourage the production of film, episodic, and streaming content.

GAAP provides limited authoritative guidance on the recognition and measurement of government assistance received by for-profit entities.
Accordingly, the Company accounts for production-related tax credits based on an assessment of the substance of the arrangement and by
analogy to other applicable accounting guidance.

The
Company has elected an accounting policy to treat refundable and transferable production tax credits that are directly linked to qualifying
production expenditures as a reduction of the related capitalized content production costs when realization of the credit is considered
probable and the amount can be reasonably estimated. Any tax credit receivable would be recognized at that time.

accordance with ASC 832, Government Assistance, the Company discloses the nature of material government assistance arrangements,
the accounting policies applied, and other relevant terms, when applicable.

For
the years ended December 31, 2025, and 2024, the Company did not capitalize any content assets and did not record any tax credits or
tax credit receivables.

Recent
Accounting Pronouncements

Income
Taxes – Improvements to Income Tax Disclosures

December 2023, FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which enhances the transparency
and decision usefulness of income tax disclosures. The guidance requires disaggregated disclosure of income taxes paid by jurisdiction,
standardizes categories within the effective tax rate reconciliation, and modifies other income tax-related disclosure requirements.

The
standard is effective for the Company for fiscal years beginning after December 15, 2024, and will be adopted in the Company’s
annual financial statements for the year ending December 31, 2026. Early adoption is permitted. The Company is currently evaluating the
impact of this standard on its consolidated financial statement disclosures.

The
Company does not expect the adoption of any other recently issued accounting standards to have a material impact on its consolidated
financial statements.

NOTE
3 - ACCOUNTS RECEIVABLE

of December 31, 2025, and 2024, accounts receivable totaled $0 and $290,597, respectively. The amounts as of December 31, 2025, and 2024
represents funds due to the Company under the terms of the film production service agreements.

NOTE
4 - PREPAID EXPENSES AND OTHER CURRENT ASSETS

Prepaid
expenses and other current assets are assets and payments previously made, that benefit future periods. The balance as of December 31,
2025, and 2024, respectively includes prepaid operating expenses and production related deposits.

Prepaid
and other current assets comprised of the following:

December 31, December 31,

Prepaid expenses $	- $	7,083

Deposits - 109,659

NOTE
5 – DEFERRED OFFERING COSTS

of December 31, 2025 and 2024, the Company had deferred offering costs of $250,000 and $250,000, respectively, recorded as current assets
on the accompanying consolidated balance sheets. These costs consist primarily of legal fees incurred in connection with the Company’s
proposed initial public offering. The deferred offering costs will be reclassified to additional paid-in capital upon completion of the
offering.

NOTE
6 - INVESTMENTS

The
Company invests in various film projects produced by other entities. These investments represent financial contributions to third-party
film projects in exchange for participation rights in revenue generated by the completed films. The investments are classified as current
assets on the balance sheet and are stated at cost, unless there is evidence of impairment.

of December 31, 2025, the Company’s investments in third-party film projects totaled $11,794, compared to $128,650 as of December
31, 2024. The decrease primarily reflects impairment charges of $128,650, offset by new investments of $11,794.

The
Company holds a 0% equity ownership interest in the underlying project rights; rather, the investment entitles the Company to participate
in revenue generated if the project successfully proceeds to production and distribution.

Revenue
Participation

These
investments provide the Company with participation rights in revenue streams generated from the exploitation of the films, including
theatrical releases, streaming, and other distribution channels. The timing and amount of returns from these investments depend on the
performance of the respective film projects and market conditions.

revenue was recognized related to revenue participation for the years ended December 31, 2025 and 2024.

Impairment
Testing

The
Company evaluates its film investments for impairment whenever events or circumstances indicate that the carrying amount may not be recoverable.
Impairment testing is conducted using a discounted cash flow (DCF) model, which incorporates significant assumptions about future revenue
streams, market demand, and other economic factors. If the recoverable amount, calculated as the present value of expected future cash
flows, is less than the carrying value, an impairment loss is recognized in the period of determination.

During
the year ended December 31, 2025, and December 31, 2024, an impairment loss of $128,650, and $85,837, respectively was recognized related
to the Company’s investments in third-party films.

Fair
Value Hierarchy Classification

Although
the investments are carried at cost, the Company estimates their fair value for impairment testing purposes using unobservable inputs,
including projections of future cash flows and discount rates reflective of project-specific risks. As such, these investments fall within
Level 3 of the fair value hierarchy under Accounting Standards Codification (ASC) 820.

Credit
Risk

The
Company’s investments in third-party film projects are subject to credit risk, as returns depend on the financial and operational
performance of external producers and distributors. The Company actively monitors the creditworthiness of its partners and evaluates
the recoverability of its investments based on current and anticipated market conditions. Management believes that any credit risks associated
with these investments are appropriately reflected in their carrying amounts.

NOTE
7 - ACCRUED EXPENSES

Accrued
expenses were as follows:

December 31, December 31,

Legal and other services $	514,629 $	137,128

Stock payable 475,000 -

Accrued interest 826,958 519,290

NOTE
8 - PRODUCTION FINANCING

The
Company did not have any film related obligations as of December 31, 2025.

Film
related obligations were as follows as of December 31, 2024:

December 31,

Production financing Maturity Default Interest Collateral 2024

Note issued on May 22, 2024 The Credit Facility shall be repayable on demand. Without limiting
the generality of the foregoing, the Credit Facility shall be repaid to Lender not later than sixteen (16) months from the Closing
Date (the “Maturity Date”). Canadian Prime Rate plus 1.50% per annum From Borrower, a first ranking General Security Agreement on all
of Borrower’s personal property, movable property, present and future, tangible and intangible, corporeal and incorporeal,
including, without limitation, the income receivable from the worldwide sale, licensing commercialization or other exploitation of
the Project in all distribution territories and media worldwide to be registered by Lender’s counsel in all applicable jurisdictions $	775,761

NOTE
9 – DEBT

Convertible
Debt and Embedded Derivative Liabilities