Company: LSEB
Filing Date: 2025-07-15
Form Type: 10-K
Source: 0001199835-25-000233
Chunk: 30

Company: LSEB Creative Corp.
Filing Date: 2025-07-15
Form: 10-K
Item: Item 1
Chunk 30
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 demand for our products.

To
ensure adequate inventory supply, we must forecast inventory needs and place orders with our manufacturers based on our estimates of
future demand for particular products. Our ability to accurately forecast demand for our products could be affected by many factors,
including an increase or decrease in guest demand for our products or for products of our competitors, our failure to accurately forecast
guest acceptance of new products, product introductions by competitors, unanticipated changes in general market conditions, and weakening
of economic conditions or consumer confidence in future economic conditions. If we fail to accurately forecast guest demand, we may experience
excess inventory levels or a shortage of products available for sale or for delivery to guests.

Our
fabrics and manufacturing technology generally are not patented and can be imitated by our competitors.

The
intellectual property rights in the technology, fabrics, and processes used to manufacture our products generally are owned or controlled
by our suppliers and are generally not unique to us. Our ability to obtain intellectual property protection for our products is therefore
limited and we do not generally own patents or hold exclusive intellectual property rights in the technology, fabrics or processes underlying
our products. As a result, our current and future competitors are able to manufacture and sell products with performance characteristics,
fabrics and styling similar to our products. Because many of our competitors have significantly greater financial, distribution, marketing,
and other resources than we do, they may be able to manufacture and sell products based on our fabrics and manufacturing technology at
lower prices than we can. If our competitors do sell similar products to ours at lower prices, our net revenue and profitability could
suffer.

24

Our
business is affected by seasonality.

Our
business is affected by the general seasonal trends common to the retail swimwear industry. This seasonality may adversely affect our
business and cause our results of operations to fluctuate, and, as a result, we believe that comparisons of our operating results between
different quarters within a single fiscal year are not necessarily meaningful and that results of operations in any period should not
be considered indicative of the results to be expected for any future period. In addition, the Company plans to sell worldwide alleviating
some of the seasonality risk.

Our
revenues will depend on our relationships with capable sales personnel as well as customers, suppliers and manufacturers of the products
that we distribute.

Our
operating results will depend on our ability to maintain satisfactory relationships with qualified sales personnel as well as customers,
suppliers and manufacturers. If we fail to