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

Chunk 15 of 57
Word Count: 1417
Character Count: 8653

Document Content:

proxy statements in compliance with our obligations under the federal securities laws; ● establish new internal policies, such as those relating to insider trading; and ● involve and retain to a greater degree outside counsel and accountants to support the above activities. addition, we expect that being a public company subject to these rules and regulations may make it more difficult and more expensive for us to obtain director and officer liability insurance, and we may be required to accept reduced policy limits and coverage or incur substantially higher costs to obtain the same or similar coverage. As a result, it may be more difficult for us to attract and retain qualified individuals to serve on our board of directors or as executive officers. We are currently evaluating these rules, and we cannot predict or estimate the amount of additional costs we may incur or the timing of such costs.

Our
internal control over financial reporting may not be effective and our independent registered public accounting firm may not be able
to certify as to their effectiveness in the future, which could have a significant and adverse effect on our business, financial condition,
results of operations and reputation.

After
the completion of this offering, we will be subject to a requirement, pursuant to Section 404 of the Sarbanes-Oxley Act, to conduct an
annual review and evaluation of our internal control over financial reporting and furnish a report by management on, among other things,
our assessment of the effectiveness of our internal control over financial reporting each fiscal year beginning with the year following
our first annual report required to be filed with the SEC. However, because we are an emerging growth company, our independent registered
public accounting firm is not required to formally attest to the effectiveness of our internal control over financial reporting pursuant
to Section 404 until the earlier of the fifth year following our first annual report required to be filed with the SEC or the date on
which we are no longer an emerging growth company. Ensuring that we have adequate internal control over financial reporting in place
so that we can produce accurate financial statements on a timely basis is a costly and time-consuming effort that must be evaluated frequently.
Establishing and maintaining these internal controls will be costly and may divert management’s attention from our business.

When
evaluating our internal control over financial reporting, we may identify material weaknesses that we may not be able to remediate in
time to meet the applicable deadline imposed upon us for compliance with the requirements of Section 404 of the Sarbanes-Oxley Act. In
addition, if we fail to achieve and maintain the adequacy of our internal control over financial reporting, as such standards are modified,
supplemented or amended from time to time, we may not be able to ensure that we can conclude, on an ongoing basis, that we have effective
internal control over financial reporting in accordance with Section 404 of the Sarbanes-Oxley Act. We cannot be certain as to the timing
of completion of our evaluation, testing and any remediation actions or the impact of the same on our operations. If we do not adequately
implement or comply with the requirements of Section 404 of the Sarbanes-Oxley Act, we may be subject to sanctions or investigation by
regulatory authorities, such as the SEC, or suffer other adverse regulatory consequences, including penalties for violation of the NYSE
American rules. As a result, there could be a negative reaction in the financial markets due to a loss of confidence in the reliability
of our financial statements. A loss of confidence in the reliability of our financial statements also could occur if we or our independent
registered public accounting firm were to report one or more material weaknesses in our internal control over financial reporting. In
addition, we may be required to incur costs in improving our internal control system, including the costs of hiring of additional personnel.
Any such action could negatively affect our business, financial condition, results of operations and cash flows and could also lead to
a decline in the price of our common stock.

Management
will have broad discretion over the use of our proceeds from this offering.

The
principal purposes of this offering include increasing our capitalization and financial flexibility, creating a public market for our
stock, thereby enabling access to the public equity markets by our employees and stockholders, obtaining additional capital and increasing
our visibility in the marketplace. Although we have not yet determined with certainty how we will allocate the net proceeds of this offering,
we expect to use the net proceeds from this offering for working capital and other general corporate purposes. We may also use
a portion of the proceeds from this offering to acquire or invest in additional intellectual property and to expand our development
pipeline. See “Use of Proceeds”. We have not allocated specific amounts of net proceeds for any of these purposes
and we cannot specify with certainty the particular uses of the net proceeds to us from this offering. Accordingly, we will have broad
discretion in using these proceeds and might not be able to obtain a significant return, if any, on investment of these net proceeds.
Investors in this offering will need to rely upon the judgment of our management with respect to the use of our proceeds. If we do not
use the net proceeds that we receive in this offering effectively, our business, operating results and financial condition could be harmed.

do not anticipate that we will pay dividends on our common stock and, consequently, your ability to achieve a return on your investment
will depend on appreciation in the price of our common stock.

have never declared or paid any dividends on our common stock. We intend to retain any earnings to finance the operation and expansion
of our business, and we do not anticipate paying any cash dividends in the foreseeable future. In addition, in the future, we
may enter into agreements that prohibit or restrict our ability to declare or pay dividends on our common stock. As a result, you may
only receive a return on your investment in share of our common stock if the market price of our shares increases.

Anti-takeover
effects of certain provisions of Nevada state law may hinder a potential takeover of us.

Though
we are not currently subject to Nevada’s control share law, in the future, we may become subject to it. A corporation is subject
to Nevada’s control share law if it has more than 200 stockholders, at least 100 of whom are stockholders of record and residents
of Nevada, and it does business in Nevada or through an affiliated corporation. The law focuses on the acquisition of a “controlling
interest”, which means the ownership of outstanding voting shares sufficient, but for the control share law, to enable the acquiring
person to exercise the following proportions of the voting power of the corporation in the election of directors: (i) one-fifth or more
but less than one-third; (ii) one-third or more but less than a majority; or (iii) a majority or more. The ability to exercise such voting
power may be direct or indirect, as well as individual or in association with others.

The
effect of the control share law is that the acquiring person, and those acting in association with it, obtains only such voting rights
in the control shares as are conferred by a resolution of the stockholders of the corporation, approved at a special or annual meeting
of stockholders. The control share law contemplates that voting rights will be considered only once by the other stockholders. Thus,
there is no authority to strip voting rights from the control shares of an acquiring person once those rights have been approved. If
the stockholders do not grant voting rights to the control shares acquired by an acquiring person, those shares do not become permanent
non-voting shares. The acquiring person is free to sell its shares to others. If the buyers of those shares themselves do not acquire
a controlling interest, their shares do not become governed by the control share law.

control shares are accorded full voting rights and the acquiring person has acquired control shares with a majority or more of the voting
power, any stockholder of record, other than an acquiring person, who has not voted in favor of approval of voting rights, is
entitled to demand fair value for the redemption of such stockholder’s shares.