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 39 of 57
Word Count: 1306
Character Count: 8111

Document Content:

tax accounting rules in Section 451(b) of the Code or the Medicare surtax on net investment income provided by Section 1411 of the Code. In addition, it does not address consequences relevant to Non-U.S. Holders subject to special rules, including, without limitation: expatriates and former citizens or long-term residents of the United States; ● persons holding shares of our common stock as part of a straddle, or other risk reduction strategy or as part of a conversion transaction or other integrated investment; ● banks, insurance companies, and other financial institutions; ● brokers, dealers, or certain electing traders in securities that use a mark-to-market method of tax accounting for their securities positions; ● “controlled foreign corporations”, “passive foreign investment companies”, as defined in Sections 957 and Section 1297 of the Code, respectively, and corporations that accumulate earnings to avoid U.S. federal income tax under Section 531 and 532 of the Code;

●	partnerships
or other entities or arrangements treated as partnerships for U.S. federal income tax purposes and other pass-through entities (and
investors in such entities);

●	tax-exempt
organizations or governmental organizations;

●	persons
deemed to sell our common stock under the constructive sale provisions of the Code;

●	tax-qualified
retirement plans; and

●	“qualified
foreign pension funds” as defined in Section 897(l)(2) of the Code and entities all of the interests of which are held by qualified
foreign pension funds.

an entity treated as a partnership for U.S. federal income tax purposes holds shares of our common stock, the tax treatment of a partner
in the partnership will depend on the status of the partner, the activities of the partnership, and certain determinations made at the
partner level. Partnerships holding shares of our common stock and the partners in such partnerships should consult their tax advisors
regarding the U.S. federal income tax consequences to them.

THIS
DISCUSSION IS FOR INFORMATIONAL PURPOSES ONLY AND IS NOT TAX ADVICE. INVESTORS SHOULD CONSULT THEIR TAX ADVISORS WITH RESPECT TO THE
APPLICATION OF THE U.S. FEDERAL INCOME TAX LAWS TO THEIR PARTICULAR SITUATIONS AS WELL AS ANY TAX CONSEQUENCES OF THE PURCHASE, OWNERSHIP,
AND DISPOSITION OF SHARES OF OUR COMMON STOCK ARISING UNDER THE U.S. FEDERAL ESTATE OR GIFT TAX LAWS OR UNDER THE LAWS OF ANY STATE,
LOCAL, OR NON-U.S. TAXING JURISDICTION OR UNDER ANY APPLICABLE INCOME TAX TREATY.

Definition
of a Non-U.S. Holder

For
purposes of this discussion, a “non-U.S. holder” is any beneficial owner of shares of our common stock that is an individual,
corporation, estate or trust and is not a “U.S. person.” A U.S. person is any person that, for U.S. federal income tax purposes,
is or is treated as any of the following:

individual who is a citizen or resident of the United States;

corporation created or organized under the laws of the United States, any state thereof, or the District of Columbia;

estate, the income of which is subject to U.S. federal income tax regardless of its source; or

trust that (1) is subject to the primary supervision of a U.S. court and the control of one or more “United States persons”
(within the meaning of Section 7701(a)(30) of the Code), or (2) has a valid election in effect to be treated as a United States person
for U.S. federal income tax purposes.

Distributions

described in the section entitled “Dividend Policy,” we do not anticipate declaring or paying dividends to holders of shares
of our common stock in the foreseeable future. However, if we do make distributions of cash or property on our common stock, such distributions
will constitute dividends for U.S. federal income tax purposes to the extent paid from our current or accumulated earnings and profits,
as determined under U.S. federal income tax principles. Amounts not treated as dividends for U.S. federal income tax purposes will constitute
a non-taxable return of capital and first be applied against and reduce a Non-U.S. Holder’s adjusted tax basis the shares of common
stock, but not below zero, and any excess will be treated as capital gain and will be treated as described below under “—
Sale or Other Taxable Disposition”.

Subject
to the discussion below on effectively connected income, dividends paid to a Non-U.S. Holder of shares of our common stock will be subject
to U.S. federal income tax by way of withholding at a rate of 30% of the gross amount of the dividends (or such lower rate specified
by an applicable income tax treaty, provided the Non-U.S. Holder furnishes a valid IRS Form W-8BEN or W-8BEN-E or other applicable documentation
certifying qualification for the lower treaty rate of withholding). A Non-U.S. Holder that does not timely furnish the required documentation,
but that qualifies for a reduced treaty rate, may obtain a refund of any excess amounts withheld by timely filing an appropriate claim
for refund with the IRS. Non-U.S. Holders should consult their tax advisors regarding their entitlement to benefits under any applicable
income tax treaty.

dividends paid to a Non-U.S. Holder are effectively connected with the Non-U.S. Holder’s conduct of a trade or business within
the United States (and, if required by an applicable income tax treaty, the Non-U.S. Holder maintains a permanent establishment in the
United States to which such dividends are attributable), the Non-U.S. Holder will be exempt from the withholding described above. To
claim the exemption, the non-U.S. holder must furnish to the applicable withholding agent a valid IRS Form W-8ECI, certifying that the
dividends are effectively connected with the Non-U.S. Holder’s conduct of a trade or business within the United States.

Any
such effectively connected dividends will be subject to U.S. federal income tax on a net income basis at the rates applicable to U.S.
persons. A Non-U.S. Holder that is a corporation also may be subject to a branch profits tax at a rate of 30% (or such lower rate specified
by an applicable income tax treaty) on such effectively connected dividends, as adjusted for certain items. Non-U.S. Holders should consult
their tax advisors regarding any applicable tax treaties that may provide for different rules.

Sales
or Other Taxable Dispositions

Subject
to the discussion below under “— Information Reporting and Backup Withholding” and “— Additional Withholding
Tax Under FATCA”, a Non-U.S. Holder will not be subject to U.S. federal income tax on any gain realized upon the sale or other
taxable disposition of our common stock unless:

●	the
gain is effectively connected with the Non-U.S. Holder’s conduct of a trade or business within the United States (and, if required
by an applicable income tax treaty, the non-U.S. holder maintains a permanent establishment in the United States to which such gain
is attributable); or

●	the
non-U.S. holder is a nonresident alien individual present in the United States for 183 days or more during the taxable year of the
disposition and certain other requirements are met.

Gain
described in the first bullet point above generally will be subject to U.S. federal income tax on a net income basis at the rates applicable
to U.S. persons. A non-U.S. Holder that is a corporation also may be subject to a branch profits tax at a rate of 30% (or such lower
rate specified by an applicable income tax treaty) on such effectively connected gain, as adjusted for certain items.

Gain
described in the second bullet point above will be subject to U.S. federal income tax at a rate of 30% (or such lower rate specified
by an applicable income tax treaty), which may be offset by U.S. source capital losses of the non-U.S. Holder (even though the individual
is not considered a resident of the United States), provided the Non-U.S. Holder has timely filed U.S. federal income tax returns with
respect to such losses.

Non-U.S.
Holders should consult their tax advisors regarding potentially applicable income tax treaties that may provide for different rules.

Information
Reporting and Backup Withholding