Company: LSEB
Filing Date: 2025-07-15
Form Type: 10-K
Source: 0001199835-25-000233
Chunk: 103

Company: LSEB Creative Corp.
Filing Date: 2025-07-15
Form: 10-K
Item: Item 1A
Chunk 103
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 subject to sanctions by the SEC.

We
are exposed to potential risks from legislation requiring companies to evaluate internal controls under Section 404a of the Sarbanes-Oxley
Act of 2002. As a smaller reporting company and emerging growth company, we will not be required to provide a report on the effectiveness
of our internal controls over financial reporting until our second annual report, and we will be exempt from the auditor attestation
requirements concerning any such report so long as we are an emerging growth company or a smaller reporting company. We have not yet
evaluated whether our internal control procedures are effective and therefore there is a greater likelihood of undiscovered errors in
our internal controls or reported financial statements as compared to issuers that have conducted such evaluations. If we are not able
to meet the requirements of Section 404a in a timely manner or with adequate compliance, we might be subject to sanctions or investigation
by regulatory authorities, such as the SEC.

There
has been no independent valuation of the stock, which means that the stock may be worth less than the purchase price.

The
per share purchase price has been determined by us without independent valuation of the shares. We established the offering price based
on management’s estimate of the value of the shares. This valuation is highly speculative and arbitrary.

There
is no relation to the market value, book value, or any other established criteria. We did not obtain an independent appraisal opinion
on the valuation of the shares. The shares may have a value significantly less than the offering price and the shares may never obtain
a value equal to or greater than the offering price.

FINRA
sales practice requirements may also limit a stockholder’s ability to buy and sell our stock.

In
addition to the “penny stock” rules described above, FINRA has adopted rules that require that in recommending an investment
to a customer, a broker-dealer must have reasonable grounds for believing that the investment is suitable for that customer. Prior to
recommending speculative low-priced securities to their non-institutional customers, broker-dealers must make reasonable efforts to obtain
information about the customer’s financial status, tax status, investment objectives and other information. Under interpretations
of these rules, FINRA believes that there is a high probability that speculative low-priced securities will not be suitable for at least
some customers. The FINRA requirements make it more difficult for broker-dealers to recommend that their customers buy our common stock,
which may limit your ability to buy and sell our stock