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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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

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.

Sale
or Other Taxable Disposition

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);

●	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

Information
returns are required to be filed with the IRS in connection with any dividends on our common stock paid to a non-U.S. holder regardless
of whether withholding is required. Copies of the information returns reporting such interest, dividends, and withholding may also be
made available to the tax authorities in the country in which a non-U.S. holder resides under the provisions of an applicable income
tax treaty. Payments of dividends on our common stock will not be subject to backup withholding, provided the applicable withholding
agent does not have actual knowledge or reason to know the beneficial owner is a United States person and the Non-U.S. Holder either
certifies its non-U.S. status, such as by furnishing a valid IRS Form W-8BEN, W-8BEN-E or W-8ECI, or other applicable documentation,
or otherwise establishes an exemption. Proceeds of the sale or other taxable disposition of our common stock within the United States
or conducted through certain U.S.-related brokers generally will not be subject to backup withholding or information reporting, if the
applicable withholding agent receives the certification described above and does not have actual knowledge or reason to know that such
beneficial owner is a United States person, or otherwise establishes an exemption. Proceeds of a disposition of our common stock conducted
through a non-U.S. office of a non-U.S. broker generally will not be subject to backup withholding or information reporting.

Backup
withholding is not an additional tax. Any amounts withheld under the backup withholding rules may be allowed as a refund or a credit
against a non-U.S. Holder’s U.S. federal income tax liability, provided the required information is timely furnished to the IRS.

Additional
Withholding Tax Under FATCA

Sections
1471 to 1474 of the Code (such sections commonly referred to as the Foreign Account Tax Compliance Act, or “FATCA”) and the
Treasury Regulations and administrative guidance thereunder impose a 30% withholding tax on certain types of payments made to a “foreign
financial institution” or a “non-financial foreign entity” (each as defined in the Code), including, in some cases,
when such foreign financial institution or non-financial foreign entity acts as an intermediary, unless (1) the foreign financial institution
has entered into an agreement with the U.S. government to withhold on certain payments and to undertake certain diligence and reporting
obligations regarding U.S. account holders (including certain account holders that are non-U.S. entities with U.S. owners), (2) the non-financial
foreign entity either certifies it does not have any “substantial United States owners” (as defined in the Code) or furnishes
identifying information regarding each substantial United States owner, or (3) the foreign financial institution or non-financial foreign
entity otherwise qualifies for an exemption from these rules. Foreign financial institutions located in jurisdictions that have an intergovernmental
agreement with the United States governing

FATCA
may be subject to different rules.

Under
the applicable Treasury Regulations and administrative guidance, withholding under FATCA generally applies to payments of dividends on
our common stock. Under proposed regulations, FATCA withholding on payments of gross proceeds from the sale or other disposition of stock
has been eliminated. These proposed regulations are subject to change.

Prospective
investors should consult their tax advisors regarding the potential application of withholding under FATCA to their investment in our
common stock.

UNDERWRITING