Company: LSEB
Filing Date: 2025-07-15
Form Type: 10-K
Source: 0001199835-25-000233
Chunk: 28

Company: LSEB Creative Corp.
Filing Date: 2025-07-15
Form: 10-K
Item: Item 1
Chunk 28
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 supplies of fabrics or raw
materials, or we may be unable to locate any supplier or manufacturer with sufficient capacity to meet our requirements, to fill our
orders in a timely manner, or on terms that are acceptable to us. Identifying a suitable supplier is an involved process that requires
us to become satisfied with its quality control, responsiveness and service, financial stability, partnership, and labor and ethical
practices. Even if we are able to expand existing or find new manufacturing or fabric sources, we may encounter delays in production
and added costs as a result of the time it takes to train our suppliers and manufacturers in our methods, products, and quality control
standards. Delays related to supplier or manufacturer changes could also arise due to an increase in shipping times if new facilities
are located farther away from our markets or from other participants in our supply chain. Any delays, interruption or increased costs
in the supply of materials or manufacture of our products could have an adverse effect on our ability to meet consumer demand for our
products and result in lower net revenue and income from operations both in the short and long term.

We
will be dependent upon third parties for the manufacture and supply of substantially all our products.

We
will obtain substantially all our products from third-party suppliers. We do not expect to enter into long- term contracts with
our suppliers. Therefore, suppliers may not provide the products we need in the quantities we request. Because we will not control
the actual production of the products we intend to sell, we may be subject to delays caused by interruption in production based on conditions
outside of our control. In the event that any of our intended third-party suppliers were to become unable or unwilling to continue to
provide the products in required volumes, we would need to identify and obtain acceptable replacement sources on a timely basis. There
is no guarantee that we would be able to obtain such alternative sources of supply on a timely basis, if at all. An extended interruption
in the supply of any of our intended products, could have an adverse effect on our results of operations, which most likely would adversely
affect the value of our common stock.

23

Our
sales and profitability may decline as a result of increasing product costs and decreasing selling prices.

Our
business is subject to significant pressure on costs and pricing caused by many factors, including intense competition, constrained sourcing
capacity and related inflationary pressure, pressure from consumers to reduce the prices we charge for our products, and changes in consumer
demand. These