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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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

Net cash used in operating activities (5,488,917	) (4,653,728	)

CASH FLOWS FROM INVESTING ACTIVITIES

Investments (20,837	) (396,220	)

Net working capital changes from transfer of interest in subsidiaries (503,132	) -

Net cash used in investing activities (523,969	) (396,220	)

CASH FLOWS FROM FINANCING ACTIVITIES

Proceeds from production financing 3,151,977 76,074

Repayments of production financing (358,300	) (178,079	)

Proceeds from short term production loans - 4,146,503

Advances from related parties 217,005 774,152

Repayments to related parties (101,572	) (171,529	)

Proceeds from issuance of common stock 1,216,001 -

Repayments of convertible notes payable (239,321	) -

Proceeds from issuance of convertible notes payable - 450,000

Capital Contributions 2,055,275 -

Net cash provided by financing activities 5,941,065 5,097,121

Effect of foreign exchange rates on cash and cash equivalents 7,289 78

Net change in cash (64,532	) 47,251

Cash at beginning of period 76,888 29,637

Cash at end of period $	12,356 $	76,888

SUPPLEMENTAL CASH FLOW INFORMATION:

Cash paid for income taxes $	- $	-

Cash paid for interest $	- $	-

NON CASH INVESTING AND FINANCING ACTIVITIES

Convertible note issued for settlement of due to related party $	- $	75,000

Transfer of interest in subsidiaries resulting in a receivable $	40 $	-

Initial derivative liabilities recognized as a debt discount $	12,500 $	53,056

Issuance of common stock for subscription receivable $	- $	-

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

AMBITIOUS
ENTERTAINMENT, INC.

NOTES
TO CONSOLIDATED FINANCIAL STATEMENTS

December
31, 2024, and 2023

NOTE
1 - ORGANIZATION AND LIQUIDITY

Organization
and Business Overview

Ambitious
Entertainment, Inc., (“Ambitious”, “the Company”, “We”, “Us”) a Nevada corporation, was
incorporated in September 2020 to pursue an innovative media content development strategy that pursues opportunities generated from the
rapid proliferation of video streaming services such as Netflix, Disney+, Amazon Prime Video, Hulu, and Max (formerly HBO Max) as well
as all major movie studios. Ambitious is a leading independent media entertainment company
which sources, finances, develops and produces IP-based series and movies in “partnership” with the industry’s foremost
creative artists, streaming sites, and studios. The Company acquires and controls its own movie or series IP which it then packages internally
into a lucrative asset for sale directly to streaming sites and movie studios or, when strategically practical, the Company produces
its IP in-house. The IP we secure are rights to books, scripts, life-rights, or other IP such as blogs, vlogs, and short videos.

The
Company has four wholly owned subsidiaries including Dead Man’s Hand Production, LLC, (“DMH”), 1421135 B.C. LTD (“Cold
Deck Film, LLC” or “CD” or “Cold Deck”), AMFAD Productions CAD Inc. (“All My Friends Are Dead”,
“AMFAD”), and Scorpion Productions, Inc. (“Scorpion”, “Viper”) included in the consolidated financial
statements for the year ended December 31, 2023.

The
Company has six wholly owned subsidiaries including Dead Man’s Hand Production, LLC, (“DMH”), 1421135 B.C. LTD (“Cold
Deck Film, LLC” or “CD” or “Cold Deck”), AMFAD Productions CAD Inc. (“All My Friends Are Dead”,
“AMFAD”), Scorpion Productions, Inc. (“Scorpion”, “Viper”), FATE USA, LLC (“FATE”), and
Rage Movie, LLC (“Guns of Redemption” or “GOR” or “Rage”) included in the consolidated financial
statements for the year ended December 31, 2024. Five of the subsidiaries were transferred out of the Company during the year ended December

Going
Concern

The
Company’s consolidated financial statements are prepared in accordance with Generally Accepted Accounting Principles (“GAAP”)
of the United States including the assumption of a going concern basis, which contemplates the realization of assets and liquidation
of liabilities in the normal course of business. However, as shown in the accompanying consolidated financial statements, the Company
had a net loss of $2.2 million, an accumulated deficit of $13.8 million, and cash used in operations of $5.5 million for the year ended
December 31, 2024. The Company expects to continue to incur significant expenditures to develop its technology and is currently not reserving
cash to repay convertible notes. As such, there is substantial doubt about the Company’s ability to continue as a going concern.

The
Company has incurred recurring losses and negative cash flows from operations, which raise substantial doubt about its ability to continue
as a going concern. As of December 31, 2024, the Company has $2,021,771 in net convertible debt with a weighted average interest rate
of 7% per annum. Of this amount, $1,893,229 matures on June 1, 2025, and $128,542 matures between May and December 2026. The Company’s
monthly cash burn is approximately $87,500, comprised of $65,000 in labor, $7,000 in travel, $7,500 in legal expenses, $5,000 in audit
fees, and $3,000 in development expenses.

Management
recognizes the need to obtain additional resources to support operations in 2025 and beyond. To address these liquidity challenges, management
has developed the following plans:

1.	Near-Term
Capital Raise :

○	Management
plans to raise $1,000,000 within one month of filing its Form S-1. The funding is expected
to be secured through convertible debt with terms of 1-3 years and an interest rate of 7%.
The Company is actively negotiating with 2-3 merchant banks to finalize this raise.

○	The
$1,000,000 funding is projected to cover operating expenses until the Company lists its shares
on the New York Stock Exchange.

2.	Post-Listing
Capital Raise :

○	Following
the listing on the New York Stock Exchange, the Company plans to raise $10,000,000. Management
is in discussions with two brokerage firms regarding this raise, which will provide additional
capital to fund the Company’s operations and strategic initiatives.

the absence of the successful execution of these plans, the Company does not have contingency plans other than the possibility of personal
funding by the CEO.

These
consolidated financial statements do not include any adjustments related to the recoverability or classification of recorded asset amounts
and the classification of liabilities that may be necessary if the Company is unable to continue as a going concern.

Management
believes the planned $1,000,000 funding and subsequent $10,000,000 raise, if successfully executed, will mitigate the substantial doubt
about the Company’s ability to continue as a going concern through the end of 2025.

NOTE
2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis
of Presentation and Principles of Consolidation

The
accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the
United States of America and pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). The
consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All significant intercompany
accounts and transactions have been eliminated.

Use
of Estimates

The
preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect
the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial
statements and the reported amounts of revenues and expenses during the reporting period. The Company regularly evaluates estimates and
assumptions. The Company bases its estimates and assumptions on current facts, historical experience, and various other factors that
it believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values
of assets and liabilities and the accrual of costs and expenses that are not readily apparent from other sources. The actual results
experienced by the Company may differ materially and adversely from the Company’s estimates. To the extent there are material differences
between the estimates and the actual results, future results of operations will be affected. Significant estimates are contained in the
accompanying consolidated financial statements for the valuation of derivatives, warrants, and other financial instruments.

Cash
and Cash Equivalents