Company: LSEB
Filing Date: 2025-07-15
Form Type: 10-K
Source: 0001199835-25-000233
Chunk: 34

Company: LSEB Creative Corp.
Filing Date: 2025-07-15
Form: 10-K
Item: Item 1
Chunk 34
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 business, financial condition and results of operations
may be adversely affected.

Upon
the successful launch of our website and commencement of sales, as our operations grow, the simultaneous management of development, production
and commercialization across our target markets will become increasingly complex and may result in less than optimal allocation of management
and other administrative resources, increase our operating expenses and harm our operating results.

Our
ability to effectively manage our operations, growth and various projects across our target markets will require us to make additional
investments in our infrastructure to continue to improve our operational, financial and management controls and our reporting systems
and procedures and to attract and retain sufficient numbers of talented employees, which we may be unable to do effectively. We may be
unable to successfully manage our expenses in the future, which may negatively impact our gross margins or operating margins in any particular
quarter.

We
may, in the future, issue additional common shares, which would reduce investors’ percent of ownership and may dilute our share
value.

Our
Articles of Incorporation authorize the issuance of 500,000,000 shares of common stock, par value $0.0001 per share, of which 16,376,300
shares are issued and outstanding as of March 31, 2025. The future issuance of common stock may result in substantial dilution in the
percentage of our common stock held by our then-existing shareholders. We may value any common stock issued in the future on an arbitrary
basis. The issuance of common stock for future services or acquisitions or other corporate actions may have the effect of diluting the
value of the shares held by our investors, and might have an adverse effect on any trading market for our common stock.

Our
common shares are subject to the “Penny Stock” rules of the SEC, and the trading market in our securities will likely be
limited, which makes transactions in our stock cumbersome and may reduce the value of an investment in our stock.

The
Securities and Exchange Commission has adopted Rule 15g-9 which establishes the definition of a “penny stock,” for the purposes
relevant to us, as any equity security that has a market price of less than $5.00 per share or with an exercise price of less than $5.00
per share, subject to certain exceptions. For any transaction involving a penny stock, unless exempt, the rules require:

    ●
    That
    a broker or dealer approve a person’s account for transactions in penny stocks; and