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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after the date of this prospectus, a person who is our affiliate or who was our affiliate at any time during the preceding three months may sell any unrestricted securities, as well as restricted securities that the person has beneficially owned for at least six months, including the holding period of any prior owner other than one of our affiliates, under Rule 144. Affiliates selling restricted or unrestricted securities may sell a number of shares within any three-month period that does not exceed the greater of: of the number of shares then outstanding, which will equal approximately shares immediately after this offering, assuming no exercise of the representative of the underwriter’s option to purchase additional shares; or ● the average weekly trading volume in our common stock on the NYSE American during the four calendar weeks preceding the filing of a notice on Form 144 with respect to such sale.

Sales
under Rule 144 by our affiliates are also subject to manner of sale provisions and notice requirements and to the availability of current
public information about us.

Regulation

Regulation
S under the Securities Act provides that securities owned by any person may be sold without registration in the United States, provided
that the sale is effected in an “offshore transaction” and no “directed selling efforts” are made in the United
States (as these terms are defined in Regulation S) and subject to certain other conditions. In general, this means that our shares may
be sold in some manner outside the United States without requiring registration in the United States.

Rule

general, under Rule 701 of the Securities Act, any of our employees, consultants or advisors, other than our affiliates, who purchased
shares from us in connection with a qualified compensatory stock plan or other written agreement is eligible to resell these shares 90
days after the date of this prospectus in reliance on Rule 144, but without compliance with the holding period requirements of Rule 144
and without regard to the volume of such sales or the availability of public information about us.

However,
substantially all Rule 701 shares are subject to lock-up agreements as described below and under “Underwriting” included
elsewhere in this prospectus and will become eligible for sale upon the expiration of the restrictions set forth in those agreements.

Lock-Up
Agreements

connection with this offering, we, our directors and officers and holders of more than 5% of our equity securities outstanding immediately
prior to this offering, have agreed, subject to certain exceptions, not to offer, sell or transfer any shares of common stock or securities
convertible into or exchangeable for our common stock for 180 days after the date of this prospectus without the prior written consent
of the representative of the underwriters and certain other exceptions. The representative of the underwriters has advised us that
they have no current intent or arrangement to release any of the shares subject to the lock-up agreements prior to the expiration of
the lock-up period. See “Underwriting”.

addition to the restrictions contained in the lock-up agreements described above, we have entered into agreements with certain of our
security holders, including our investors’ rights agreement and agreements governing our equity awards, that contain market stand-off
provisions imposing restrictions on the ability of such security holders to offer, sell or transfer our equity securities for a period
of [●] days following the date of this prospectus.

MATERIAL
U.S. FEDERAL INCOME TAX CONSIDERATIONS FOR NON-U.S. HOLDERS

The
following discussion is a summary of the material U.S. federal income tax consequences to non-U.S. holders (as defined below) of the
ownership and disposition of shares of our common stock issued pursuant to this offering but is not intended to be a complete analysis
of all potential tax consequences. The effects of other U.S. federal tax laws, such as estate and gift tax laws, and any applicable state,
local or non-U.S. tax laws are not discussed. This discussion is based on the U.S. Internal Revenue Code of 1986, as amended (the “Code”),
final, temporary, and proposed Treasury Regulations, judicial decisions, and published rulings and administrative pronouncements of the
U.S. Internal Revenue Service (the “IRS”), in each case as in effect as of the date of this prospectus. These authorities
may change or be subject to differing interpretations, and any such change or differing interpretation may be applied retroactively in
a manner that could adversely affect a non-U.S. holder of our common stock. We have not sought and will not seek any rulings from the
IRS regarding the matters discussed below. There can be no assurance the IRS or a court will not take a position contrary to that discussed
below regarding the tax consequences of the ownership and disposition of our common stock.

This
discussion is limited to a non-U.S. holder that holds shares of our common stock as a “capital asset” within the meaning
of Section 1221 of the Code (generally, property held for investment). This discussion does not address all U.S. federal income tax consequences
relevant to a non-U.S. holder’s particular circumstance, including the impact of the alternative minimum tax, the special 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;

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