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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remain elevated in the near term as the Company continues to pursue capital markets activities. Other Income The Company did not generate other income for the year ended December 31, 2025. Other income for the year ended December 31, 2024 totaled $23,099 and primarily consisted of interest income and bond refunds. Interest Expense Interest expense for the years ended December 31, 2025, and 2024, totaled $504,650 and $953,163, respectively related to production loans and convertible notes. The reduction of interest expense of $448,513 or 47% directly related to the reduction of film projects in 2025 compared to 2024 due to decreased production financing needed. Loss on issuance of debt The Company recorded a loss on issuance of convertible debt of $362,912 and $226,820, resulting in an increase of $136,092 or approximately 60% for the years ended December 31, 2025, and 2024, respectively. Gain on transfer of corporate and member interest

For
the year ended December 31, 2025, the Company recognized a gain of $1,008,070 on the transfer of corporate and member interests related
to one subsidiary. For the year ended December 31, 2024, the Company recognized gains totaling $1,933,261 related to the transfer of
corporate and member interests in four subsidiaries.

Change
in fair value of derivative liability

The
Company recorded a gain from changes in the fair value of derivative instruments of $342,626 for the year ended December 31, 2025, compared
to a loss of $201,422 for the year ended December 31, 2024. This represents a favorable change of $544,048, or 270%, year over year.
The fluctuation was primarily attributable to changes in key valuation assumptions, including the anticipated conversion price of the
related debt instruments, discount rates, and expected volatility applied in the valuation model.

Non-GAAP
Financial Measure

addition to our financial results prepared in accordance with generally accepted accounting principles (GAAP), we use certain
non-GAAP financial measures, including earnings before interest, taxes, depreciation, and amortization (“EBITDA”), to
evaluate our operational performance and enhance comparability across periods. Adjusted EBITDA, defined as net income (loss)
adjusted to exclude the impact of depreciation, amortization, change in fair value of derivative liabilities, and stock-based
compensation, provides useful insight into the company’s underlying business performance by excluding non-cash expenses and
other items that management considers not indicative of our core operating results. This measure should be viewed as a supplement
to, not a substitute for, our GAAP results. Below is a reconciliation of Net Loss, the most directly comparable GAAP measure, to
Adjusted EBITDA for the periods presented.

Reconciliation
of Net Loss to Adjusted EBITDA:

December

Net loss per GAAP $	(1,812,498	) $	(1,290,293	)

Additions:

Interest 504,650 953,163

Taxes - -

Depreciation - -

Amortization - -

Stock-Based Compensation 475,000 -

Change
in Fair Value of Derivative Liabilities (342,626	) 201,422

Adjusted EBITDA (Non-GAAP) $	(1,175,474	) $	(135,708	)

Liquidity
and Capital Resources

Liquidity

December 31, 2025, we had negative working capital of $14,390,940, which included cash of $1,070. We reported a net loss of $1,761,069
and our net cash used in operating expenses totaled $1,068,619, our cash used in investing totaled $23,397, and our cash provided by
financing activities totaled $1,132,172.

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, 2025, in the amount of $1,068,619. The net
cash used in operating activities for the year ended December 31, 2025, primarily reflected a net loss of $1,761,069 adjusted for
the add-back of non-cash items consisting of amortization of debt discount and debt issuance cost of $196,981, loss on issuance of
convertible debt of $362,912, an increase in stock based compensation of $475,000, impairment loss of $128,650, offset by a change
in fair value derivative of $342,625, a non-cash gain on the transfer of interest in subsidiaries of $1,008,070, and with changes in
operating assets and liabilities consisting of an increase in accounts payable of $184,373, an increase in accrued expenses of
$685,169, a decrease in accounts receivable of $5,060, and a decrease of prepaid expenses of $5,000.

experienced negative cash flows from operating activities for the year ended December 31, 2024, in the amount of $4,714,924. The net
cash used in operating activities for the year ended December 31, 2024, primarily reflected a net loss of $1,300,595 adjusted for
the add-back of non-cash items consisting of amortization of debt discount and debt issuance cost of $273,877, loss on issuance of
convertible debt of $226,820, a change in fair value derivative of $201,422, impairment loss of $85,837, offset by a non-cash gain
on the transfer of interest in subsidiaries of $1,933,261, and with changes in operating assets and liabilities consisting of an
increase in accounts payable of $463,551, an increase in accrued expenses of $690,138, an increase in accounts receivable of
$2,866,923, an increase of tax credit receivable of $681,727, an increase in other receivable of $28,101, a decrease in subscription
receivable of $5,000, a decrease in other receivable of $25,428, and a decrease of prepaid expenses of $123,610.

Cash
Flows from Investing Activities

experienced negative cash flows from investing activities of $23,397 for the year ended December 31, 2025 compared to negative cash flows
from investing activities of $109,765 for the year ended December 31, 2024.

Cash
Flows from Financing Activities

Net
cash provided by financing activities was $1,132,172 for the year ended December 31, 2025. During the year, the Company received proceeds
from the issuance of notes payable of $25,000, advances from related parties of $1,035,935, proceeds from the issuance of common stock
of $2,500, and proceeds from the issuance of convertible debt of $200,000. These inflows were partially offset by repayments of advances
from related parties totaling $131,263.

Net
cash provided by financing activities was $5,155,441 for the year ended December 31, 2024. During the year, the Company received proceeds
from production financing of $3,591,017, advances from related parties of $217,005, proceeds from short term production loans of $242,702,
proceeds from the issuance of convertible debt of $125,000, and capital contributions of $2,146,778. These inflows were partially offset
by repayments of production financing of $1,048,893, an adjustment of $4,951 related to the issuance of common stock, and repayments
of advances from related parties of $101,572. The Company also paid debt issuance costs of $11,645.

Non-Cash
Transfers of Interest

January 1, 2025, the Company executed an Instrument of Transfer of Limited Liability Company Interest, pursuant to which it transferred
its 100% ownership interest in FATE USA, LLC (“FATE”) to an unrelated third-party transferee for total consideration of $10.
FATE owned the film rights to FATE (See Note 14).

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 14).

Additionally,
on March 31, 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 14).

August 14, 2024, the Company transferred 80% of its ownership interest in DMH Production LLC equally to two unrelated third parties for
total consideration of $10. The Company retained a 20% ownership interest in DMH post-transaction. The transferred subsidiary owned the
film rights to Dead Man’s Hand (See Note 14).

Finally,
on December 1, 2024, the Company transferred its 100% interest in GOR to an unrelated third party for total consideration of $10. The
transferred subsidiary owned the film rights to Guns of Redemption (See Note 14).

The
transfer agreements provided for nominal consideration of $10 per entity, which was non-cash in nature. The consideration amount was
contractually stated and negotiated between the parties. Because the transferee is a related party, management evaluated the transaction
under ASC 850 and concluded that the terms were consistent with the economic substance of the arrangement.

determining that nominal consideration was appropriate, management considered that the subsidiaries had no significant ongoing operations,
limited liquidity, and no probable future cash flows. The transferee assumed all known and contingent liabilities and contractual obligations.
Based on these factors, management concluded that the consideration approximated fair value and that no retained interest existed.

a result of these transfers, the Company will no longer recognize any future revenues or expenses associated with these specific film
projects; however, because each project was individually structured and had no probable future cash flows at the time of transfer, management
does not expect the transactions to have a material impact on future consolidated results of operations, margins, liquidity, or risk
profile.

Related
Party Disclosure

Press
Play Productions, LLC, is a related party. The president of Press Play Productions is the son of the Company’s Chief Executive
Officer (“CEO”). The transfer of AMFAD and CD included provisions stipulating that the transferee assumes all contractual
obligations and liabilities of the transferred subsidiaries, and the transferor retains no further responsibility for these obligations.