SEC Filing Document

Company: Ambitious Entertainment, Inc.
Ticker: 
CIK: 1900851
Filing Type: DRS/A
Document Type: DRS/A
Date Filed: 2025-10-08
Accession Number: 0001493152-25-017387
Exchange: 
SIC Code: 7812
SIC Description: Services-Motion Picture & Video Tape Production
URL: https://www.sec.gov/Archives/edgar/data/1900851/000149315225017387/filename1.htm

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future cash flows. ● Other arrangements: None; the Company does not retain any continuing involvement, control, or obligations related to DMH beyond its minority interest. December 1, 2024 – GOR ● Carrying amount of assets derecognized: $2,278,857 ● Carrying amount of liabilities derecognized: $3,700,350 ● Net liabilities derecognized: ($1,421,493) ● Total consideration received: $10 (non-cash) ● Gain on deconsolidation: Included in total gain below ● Retained interest: None ● Other arrangements: Transferee assumed all obligations; Company retains no further responsibilities. Gain on Deconsolidation a result of the above transactions, the Company recognized a pre-tax gain of $1,933,261, which is included in the consolidated statement of operations under “Other Income (Expenses)” as “Gain on Transfer of Corporate and Member Interest.” Cash Flow Impact There was no impact to cash flows during the year ended December 31, 2024, as no cash consideration was received in any of the transactions. Related Party Disclosure

Press
Play Productions, LLC, the acquirer of AMFAD and CD, is a related party. The president of Press Play Productions is the son of
the Company’s Chief Executive Officer. The transfer included provisions whereby the transferee assumed all
contractual obligations and liabilities, and the Company retains no further responsibility for the operations or obligations
of the transferred subsidiaries.

Post-Transfer
Obligations

The
Company has no continuing involvement with the transferred entities. All obligations, debts, and contractual commitments were fully assumed
by the transferees as of the transfer dates.

NOTE
14 – INCOME TAX

The
income tax expense (benefit) consisted of the following for the years ended December 31, 2024, and 2023:

December 31, December 31,

Total current $	- -

Total deferred - -

Deferred
income taxes reflect the net tax effects of temporary differences between the carrying amount of assets and liabilities for financial
reporting purposes and the amounts used for income tax purposes.

Tax
Rate Reconciliation

The
following is a reconciliation of the expected statutory federal income tax provision at the statutory federal income tax rate of 21%
to the actual income tax benefit for the years ended December 31, 2024, and 2023:

Year ended

December 31,

Income tax expense (credit) at statutory rate $	(474,211	) $	(664,041	)

Change of valuation allowance 474,211 664,041

Income tax expense (credit) $	- $	-

Deferred
Tax Assets and Liabilities

Significant
components of the Company’s deferred tax assets and liabilities as of December 31, 2024, and 2023, were as follows:

December 31,

Operating loss carry forward $	4,848,574 $	4,374,363

Valuation allowance (4,848,574	) (4,374,363	)

Deferred tax asset $	- $	-

Net
Operating Loss (NOL) Carryforwards

of December 31, 2024, the Company has federal net operating loss carryforwards of approximately $6.6 million available to offset future
taxable income. These NOLs expire in 2038, and their use is subject to limitations under Section 382 of the Internal Revenue Code.

The
Company has established a full valuation allowance against its deferred tax assets, including those related to NOLs, due to the uncertainty
of realizing these assets. The determination to maintain a full valuation allowance is based on the lack of sufficient positive evidence
to overcome the negative evidence of cumulative losses in recent periods.

Additional
Information

During
the years ended December 31, 2024, and 2023, the Company recognized no amounts related to tax interest or penalties associated with uncertain
tax positions. The Company is subject to taxation in the United States and various state jurisdictions, with no years currently under
examination by any jurisdiction.

NOTE
15 - COMMITMENT

Leases
and Long-term Contracts

The
Company has not entered into any long-term leases, contracts or commitments. The Company leases an office on a month-to-month basis.
For the year ended December 31, 2024, and 2023, the Company incurred rent expense of $12,173 and $9,012, respectively.

NOTE
16 – SUBSEQUENT EVENTS

January 1, 2025, the Company executed an Instrument of Transfer of Limited Liability Company Interest, pursuant to which it sold, assigned,
conveyed, and transferred 100% of its ownership interest in FATE USA, LLC, to a third-party transferee for a total consideration of $10.
In Instrument of Transfer of Limited Liability Company Interest agreement, the transferee accepted all Company contractual obligations,
and the Company has no further responsibility or obligations related to FATE.

June 2025, the film rights to an investment carried on the Company’s balance sheet as of December 31, 2024, expired without the
associated project being released. Management is currently in negotiations to extend the film right and management is evaluating the
financial impact of this event, which will be reflected in the Company’s financial statements for the year ending December 31,
2025. This event does not affect the carrying value of the investment as of December 31, 2024, as no impairment indicators were identified
as of that date.

Ambitious
Entertainment, Inc.

Condensed
Consolidated Balance Sheets

June 30, December 31,

(unaudited) *

ASSETS

Current Assets

Cash $	1,519 $	3,621

Cash reserve - 8,735

Accounts receivable - 290,597

Other receivable - 31,396

Subscription receivable 5,000 5,000

Prepaid expenses and other current assets 800 116,742

Investments - 128,650

Deferred offering cost 250,000 250,000

Total Current Assets 257,319 834,741

TOTAL ASSETS $	257,319 $	834,741

LIABILITIES AND STOCKHOLDERS’ EQUITY

Current Liabilities

Accounts payable $	344,194 $	955,696

Accrued expenses 970,809 656,418

Due to related parties 740,222 633,332

Production financing - 775,761

Short-term production loans 25,000 -

Convertible notes payable, net 2,126,980 2,021,771

Derivative liability 6,880,110 8,474,173

Total Current Liabilities 11,217,799 13,517,151

TOTAL LIABILITIES 11,217,799 13,517,151

Commitments and contingencies

Stockholders’ Equity

Preferred stock, $0.0001 par value; 1,000,000 shares authorized; 237,340 shares issued and outstanding as of June 30,
2025, and December 31, 2024 24 24

Common stock, $0.0001 par value; 150,000,000 shares authorized; 8,437,500 and 7,440,000 shares issued and outstanding,
as of June 30, 2025, and December 31, 2024, respectively 844 744

Additional paid in capital 2,639,832 1,081,138

Accumulated deficit (13,601,180	) (13,815,668	)

Accumulated other comprehensive income - 51,352

TOTAL STOCKHOLDERS’ DEFICIT (10,960,480	) (12,682,410	)

TOTAL LIABILITIES AND STOCKHOLDERS’ DEFICIT $	257,319 $	834,741

Derived from audited information

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

Ambitious Entertainment, Inc.

Unaudited Condensed Consolidated Statements of Income and Comprehensive Income

For the Six Months Ended June 30,

Revenue $	25,000 $	2,159,477

Cost of revenues - 1,088,363

Gross profit 25,000 1,071,114

Operating expenses

Selling, general and administrative 2,507,742 152,839

Total operating expenses 2,507,742 152,839

Gain (loss) from operations (2,482,742	) 918,275

Other Income (Expenses):

Other income - 20,298

Interest expense (119,600	) (473,934	)

Loss on impairment of investment (128,650	) -

Change in fair value of derivative liability 1,885,519 (142,972	)

Gain (loss) on transfer of corporate and member interest 1,008,080 (791,140	)

Exchange gain (loss) 452 -

Total other income (expenses) 2,645,801 (1,387,748	)

Net Income (Loss) $	163,059 $	(469,473	)

Foreign exchange translation 51,429 (5,426	)

Net Income (Loss) and comprehensive income (loss) 214,488 (474,899	)

Net income (loss) per share

Basic net income (loss) per share of common stock $	0.02 $	(0.36	)

Diluted net income (loss) per share of common stock $	0.02 $	(0.36	)

Weighted average number of shares of common stock outstanding

Basic 7,924,594 1,290,317

Diluted 11,808,927 1,290,317

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

Ambitious
Entertainment, Inc.

Unaudited
Consolidated Statement of Stockholders’ Equity (Deficit)

Preferred Stock Common Stock Additional Paid in Accumulated Accumulated Other Comprehensive

Shares Amount Shares Amount Capital Deficit Loss Total

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

Common stock issued for cash - - 25,000 3 2,497 - - 2,500

Common stock issued for services - - 972,500 97 1,847,652 - - 1,847,749

Issuance of convertible debt - - - - (291,455	) - - (291,455	)

Other comprehensive loss - - - - - - (51,352	) (51,352	)

Net income - - - - - 214,488 - 214,488

Balance - June 30, 2025 237,340 $	24 8,437,500 $	844 $	2,639,832 $	(13,601,180	) $	- $	(10,960,480	)

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

Common stock issued for services - - 210,000 21 398,980 - - 399,001

Capital contribution - - - - - - - -

Issuance of convertible debt - - - - (145,729	) - - (145,729	)

Other comprehensive loss - - - - - (49,565	) (78	) (49,643	)

Net loss - - - - - (469,473	) - (469,473	)

Balance - June 30, 2024 237,340 $	24 7,010,000 $	701 $	482,773 $	(12,032,493	) $	- $	(11,548,995	)

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

Ambitious
Entertainment, Inc.

Unaudited
Condensed Statements of Cash Flows

For the Six Months Ended

June 30,

CASH FLOWS FROM OPERATING ACTIVITIES

Net income (loss) $	214,488 $	(474,899	)

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