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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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.

Reason
for the Transfer

The
transfers were part of the Company’s strategy to divest film projects once all anticipated revenue had been realized and the Company
determined that there would be no further significant benefit derived from retaining the films. This strategy aligns with the Company’s
focus on producing new film projects rather than managing completed ones.

Accounting
Treatment

The
transfers of interest were accounted for as deconsolidation of subsidiaries. As a result:

●	For
the year ended December 31, 2025, a
pre-tax gain of $1,008,070 was recognized in the consolidated statement of operations
under “Other Income (Expenses)” as a Gain on Transfer of Corporate and Member
Interest.

●	For
the year ended December 31, 2024, a
pre-tax gain of $1,933,261 was recognized in the consolidated statement of operations under
“Other Income (Expenses)” as a Gain on Transfer of Corporate and Member Interest.

The
results of operations of FATE were included in the consolidated financial statements January 1, 2025.

The
results of operations of AMFAD, CD, and Viper were included in the consolidated financial statements through March 31, 2024. The
results of operations of DMH were included in the consolidated financial statements through August 14, 2024. The results of
operations of GOR were included in the consolidated financial statements through December 1, 2024.

Financial
Impact

The
following balances were removed from the consolidated balance sheet as of the respective transfer dates:

January
1, 2025 (FATE):

●	Total
assets: $440,228

●	Total
liabilities: $1,448,437

●	Net
liabilities: $1,008,149

March
31, 2024 (AMFAD, CD, and Viper):

●	Total
assets: $6,361,903

●	Total
liabilities: $5,659,783

●	Net
assets: $692,120

August
14, 2024 (DMH):

●	Total
assets: $887,535

●	Total
liabilities: $2,290,423

●	Net
liabilities: $1,402,888

December
1, 2024 (GOR):

●	Total
assets: $2,278,857

●	Total
liabilities: $3,700,350

●	Net
liabilities: $1,421,493

Cash
Flow Statement Impact

The
transactions had no direct cash flow impact, as no cash was received.

Post-Transfer
Obligations

Under
the terms of the transfer agreements, the transferees assumed all contractual obligations and liabilities of the respective subsidiaries.
The Company retains no post-transfer obligations related to these entities.

Related
Party Notes Payable

of December 31, 2025, and December 31, 2024, the Company had related party notes payable of $1,538,004 and $633,332, respectively. All
related-party notes are unsecured, bear interest at 10% per annum (calculated yearly, not in advance), and are repayable upon the Company
obtaining third-party financing, at which time 25% of such financing proceeds will be applied to the outstanding balances until repaid
in full or until their respective maturity dates.

The
related-party borrowings consist of several notes issued to entities and individuals affiliated with the Company. The Company has an
outstanding note with JC3 Production that was executed on December 31, 2023, with a principal amount of $25,000 and a maturity date of
December 31, 2026; no advances or repayments have occurred since issuance. The Company also has a note with Roots Properties Inc. executed
on December 31, 2022, with a principal balance of $211,490 and a maturity date of December 31, 2025, for which there have been no advances
or repayments. In addition, the Company executed a second note with Roots Properties Inc. on December 31, 2023, providing for borrowings
of up to $300,000 and maturing on December 31, 2026; as of December 31, 2025, the Company has received advances totaling $189,735 and
has made repayments of $24,000 on this note.

The
Company also issued a note to Kirk Shaw, the Chief Executive Officer, on December 31, 2023, with a principal amount of $255,088 and a
maturity date of December 31, 2026; one repayment of $30,073 has been made on this obligation. On December 31, 2023, the Company entered
into another note with Mr. Shaw permitting borrowings of up to $300,000, which was subsequently replaced by a new note executed on September
30, 2025, permitting borrowings of up to $900,000 and maturing on December 31, 2026. As of December 31, 2025, advances under this note
totaled $1,014,005 and repayments totaled $159,834.

During
the year ended December 31, 2024, the Company received $217,005 in advances from related parties, the Company made repayments of $101,572
and the Company transferred $376,890 of related party obligations as a result of corporate and membership transfer interest agreements.

During
the year ended December 31, 2025, the Company received $1,035,935 in advances from related parties, the Company made repayments of $131,262.

Capital
Contributions

During
the year ended December 31, 2024, related parties made cash contributions of $2,146,778 to Guns of Redemption, a consolidated subsidiary
of the Company, to support ongoing operations. These contributions were non-interest bearing, had no stated maturity, and created no
repayment obligation. The contributions were recorded directly to the equity accounts of the subsidiary and were intended to be treated
as permanent additions to capital.

a result, these capital contributions are reflected within cash flows from financing activities in the consolidated statement of cash
flows. However, because the contributions were made at the subsidiary level and were subsequently included in the equity of the subsidiary
that was transferred as part of the disposition of ownership interest, they are not presented in the Company’s consolidated statements
of changes in shareholders’ deficit.

Availability
of Additional Funds

Based
upon our cash and working capital deficiency, we require additional equity and/or debt financing to continue our operations. These conditions
indicate that there is substantial doubt about our ability to continue as a going concern within one year after the date that
the financial statements are issued.

are currently funding our operations on a month-to-month basis. However, after the IPO, we plan to raise additional funds
through additional financings.

Critical
Accounting Policies and Significant Accounting Estimates

Our
management’s discussion and analysis of our financial condition and results of operations are based on our financial statements,
which have been prepared in accordance with accounting principles generally accepted in the United States, or GAAP. The preparation of
these financial statements requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and
the disclosure of contingent assets and liabilities as of the date of the financial statements as well as the reported expenses during
the reporting periods. The accounting estimates that require our most significant, difficult, and subjective judgments have an impact
on revenue recognition, the determination of share-based compensation, and financial instruments. We evaluate our estimates and judgments
on an ongoing basis. Actual results may differ materially from these estimates under different assumptions or conditions.

Our
significant accounting policies are more fully described in our financial statements in Note 2 in our audited consolidated financial
statements as of and for the years ended December 31, 2025, and 2024.

Fair
Value Measurements

The
Company follows accounting guidelines on fair value measurements for financial instruments measured on a recurring basis, as well as
for certain assets and liabilities that are initially recorded at their estimated fair values. Fair value is defined as the exit price,
or the amount that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants
as of the measurement date. The Company uses the following three-level hierarchy that maximizes the use of observable inputs and minimizes
the use of unobservable inputs to value its financial instruments:

●	Level
1: Observable inputs such as unadjusted quoted prices in active markets for identical instruments.

●	Level
2: Quoted prices for similar instruments that are directly or indirectly observable in the marketplace.

●	Level
3: Significant unobservable inputs which are supported by little or no market activity and that are financial instruments whose values
are determined using pricing models, discounted cash flow methodologies, or similar techniques, as well as instruments for which
the determination of fair value requires a significant judgment or estimation.