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

Chunk 39 of 56
Word Count: 1491
Character Count: 10069

Document Content:

practicable after they are electronically filed with the SEC. The information contained in, or that can be accessed through, our website is not, and should not be, considered part of this prospectus. INDEX TO CONSOLIDATED FINANCIAL STATEMENTS Page Report of Independent Registered Public Accounting Firm (PCAOB ID: 6797) F-2 Consolidated Balance Sheets as of December 31, 2024 and 2023 F-3 Consolidated Statements of Operations for the years ended December 31, 2024 and 2023 F- 4 Consolidated Statements of Changes in Stockholders’ Deficit for the years ended December 31, 2024 and 2023 F- 5 Consolidated Statements of Cash Flows for the years ended December 31, 2024 and 2023 F- 6 Notes to Consolidated Financial Statements F- 7 Condensed Consolidated Balance Sheets as of March 31, 2025 (unaudited) and December 31, 2024 F-30 Unaudited Condensed Consolidated Statements of Operations for the three months ended March 31, 2025, and March 31, 2024 F-31

Unaudited Consolidated Statements of Changes in Stockholders’ Deficit for the three months ended March 31, 2025, and March 31, 2024	F-32

Unaudited Condensed Consolidated Statements of Cash Flows for the three months ended March 31, 2025, and March 31, 2024	F-33

Notes to Consolidated Financial Statements	F-34

Report
of Independent Registered Public Accounting Firm

Board
of Directors and Shareholders

Ambitious
Entertainment, Inc.

Opinion
on the Financial Statements

have audited the accompanying consolidated balance sheets of Ambitious Entertainment and Subsidiaries (the “Company”) as
of December 31, 2024 and 2023 and the related consolidated statements of operations and comprehensive loss, shareholders’ equity,
and cash flows, for the period ended December 31, 2024 and 2023, and the related notes (collectively referred to as the “consolidated
financial statements”). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial
position of the Company as of December 31, 2024 and 2023, and the results of its operations and its cash flows for each of the years
then ended, in conformity with accounting principles generally accepted in the United States of America.

Going
Concern

The
accompanying consolidated financial statements have been prepared on a going concern basis of accounting, which contemplates continuity
of operations, realization of assets and classification of liabilities and commitments in the normal course of business. The accompanying
consolidated financial statements do not reflect any adjustments relating to the recoverability and classification of recorded asset
amounts or the amounts and classifications of liabilities that might result if the Company is unable to continue as a going concern.

Basis
for Opinion

These
financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on these financial
statements based on our audit. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United
States) (“PCAOB”) and are required to be independent with respect to the Company in accordance with the U.S. federal securities
laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Company
is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits,
we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion
on the effectiveness of the Company’s internal control over financial reporting. Accordingly, we express no such opinion.

Our
audit included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or
fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding
the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant
estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audit provides
a reasonable basis for our opinion.

Critical
Audit Matters

Critical
audit matters are matters arising from the current period audit of the financial statements that were communicated or required to be
communicated to the audit committee and that (1) relate to accounts or disclosures that are material to the financial statements and
(2) involved our especially challenging, subjective, or complex judgements. We determined that there are no critical audit matters.

Bush & Associates CPA LLC

have served as the Company’s auditor since 2024.

Henderson,
Nevada

July

PCAOB
ID Number 6797

N. Gibson Road, Henderson, Nevada 89014 ● 702.703.5979 ● www.bushandassociatescpas.com

AMBITIOUS
ENTERTAINMENT, INC.

CONSOLIDATED
BALANCE SHEETS

December 31, December 31,

ASSETS

Current Assets

Cash $	3,621 $	76,888

Cash reserve 8,735 -

Accounts receivable 290,597 5,528,441

Tax credit receivable - 973,126

Other receivable 31,396 27,024

Subscription receivable 5,000 5,000

Prepaid expenses and other current assets 116,742 357,301

Investments 128,650 292,720

Deferred offering cost 250,000 250,000

Total Current Assets 834,741 7,510,500

TOTAL ASSETS $	834,741 $	7,510,500

LIABILITIES AND STOCKHOLDERS’ EQUITY

Current Liabilities

Accounts payable $	955,696 $	614,031

Accrued expenses 656,418 787,444

Due to related parties 633,332 894,789

Production financing 775,761 2,685,370

Short term production loans - 4,146,503

Convertible notes payable, net 2,021,771 1,681,010

Derivative liability 8,474,173 7,908,430

Total Current Liabilities 13,517,151 18,717,577

Production financing, non-current - 76,074

TOTAL LIABILITIES 13,517,151 18,793,651

Commitments and contingencies

Stockholders’ Equity

Preferred stock, $0.0001 par value; 1,000,000 shares authorized; 237,340 shares issued and outstanding as of December 31, 2024, and December 31, 2023 24 24

Common stock, $0.0001 par value; 150,000,000 shares authorized; 7,440,000 and 6,800,000 shares issued and outstanding, as of December 31, 2024, and December 31, 2023, respectively 744 680

Additional paid in capital 1,081,138 229,522

Accumulated deficit (13,815,668	) (11,513,455	)

Accumulated other comprehensive income (loss) 51,352 78

TOTAL STOCKHOLDERS’ DEFICIT (12,682,410	) (11,283,151	)

TOTAL LIABILITIES AND STOCKHOLDERS’ DEFICIT $	834,741 $	7,510,500

The accompanying
notes are an integral part of these audited consolidated financial statements

AMBITIOUS
ENTERTAINMENT, INC.

CONSOLIDATED
STATEMENTS OF OPERATIONS

Years ended

December 31,

Revenue $	9,289,445 $	7,028,441

Cost of revenues 11,232,576 2,629,827

Gross profit (1,943,131	) 4,398,614

Operating expenses

Selling, general and administrative 1,052,166 2,943,547

Selling, general and administrative - related parties - 173,393

Total operating expenses 1,052,166 3,116,940

Loss from operations (2,995,297	) 1,281,674

Other Income (Expenses):

Other income 23,099 15,491

Interest expense (921,653	) (1,364,645	)

Loss on impairment of investments (85,837	) -

Change in fair value of derivative liability (201,422	) (3,066,579	)

Gain on transfer of corporate and member interest 1,933,261 -

Total other income (expenses) 747,448 (4,415,733	)

Net Loss $	(2,247,849	) $	(3,134,059	)

Foreign exchange translation (10,302	) (28,041	)

Net Loss and comprehensive loss $	(2,258,151	) $	(3,162,100	)

Loss per share of common stock - basic and diluted $	(0.31	) $	(0.48	)

Weighted average number of shares of common stock outstanding - basic and diluted 7,162,027 6,516,438

The accompanying
notes are an integral part of these audited consolidated financial statements

AMBITIOUS
ENTERTAINMENT, INC.

CONSOLIDATED
STATEMENTS OF CHANGES IN SHAREHOLDERS’ DEFICIT

Accumulated

Additional Other

Preferred Stock Common Stock Paid in Accumulated Comprehensive

Shares Amount Shares Amount Capital Deficit Loss Total

Balance - December 31, 2022 237,340 $	24 6,300,000 $	630 $	224,572 $	(8,351,355	) $	- $	(8,126,129	)

Common stock issued for cash - - 500,000 50 4,950 - - 5,000

Other comprehensive income - - - - - - 78 78

Net loss - - - - - (3,162,100	) - (3,162,100	)

Balance - December 31, 2023 237,340 $	24 6,800,000 $	680 $	229,522 $	(11,513,455	) $	78 $	(11,283,151	)

Common stock issued for cash - - 640,000 64 1,215,936 - - 1,216,000

Adjustment related to issuance of convertible debt - - - - (364,320	) - - (364,320	)

Other comprehensive income - - - - - (44,062	) 51,274 7,212

Net loss - - - - - (2,258,151	) - (2,258,151	)

Balance - December 31, 2024 237,340 $	24 7,440,000 $	744 $	1,081,138 $	(13,815,668	) $	51,352 $	(12,682,410	)

The
accompanying notes are an integral part of these audited consolidated financial statements

AMBITIOUS
ENTERTAINMENT, INC.

CONSOLIDATED
STATEMENTS OF CASH FLOWS

Years ended

December 31,

CASH FLOWS FROM OPERATING ACTIVITIES

Net income (loss) $	(2,258,151	) $	(3,162,100	)

Adjustments to reconcile net loss to net cash provided by (used in) operating activities:

Amortization of debt discount and debt issuance costs 204,116 547,687

Initial recognition of derivative liability 364,321 -

Change in FV of derivative 201,422 3,066,579

Decrease in investments (non-cash) 99,070 103,500

Impairment loss 85,837 -

Changes in operating assets and liabilities:

Accounts receivable (2,866,973	) (5,507,441	)

Tax credit receivable (681,727	) (358,126	)

Other receivable (28,101	) (27,024	)

Prepaid expenses 123,610 (357,301	)

Content assets - 190,020

Deferred offering cost - (250,000	)

Accounts payable 219,850 525,931

Accrued expenses (952,191	) 574,547