Company: LSEB
Filing Date: 2025-07-15
Form Type: 10-K
Source: 0001199835-25-000233
Chunk: 93

Company: LSEB Creative Corp.
Filing Date: 2025-07-15
Form: 10-K
Item: Item 1A
Chunk 93
---
 to economic
cycles and any related fluctuation in consumer demand may have a material adverse effect on our financial condition.

22

Many
of our products may be considered discretionary items for consumers. Some of the factors that may influence consumer spending on discretionary
items include general economic conditions (particularly those in North America), high levels of unemployment, health pandemics (such
as the impact of the current COVID-19 coronavirus pandemic, including reduced store traffic and widespread temporary store closures),
higher consumer debt levels, reductions in net worth based on market declines and uncertainty, home foreclosures and reductions in home
values, fluctuating interest and foreign currency rates and credit availability, government austerity measures, fluctuating fuel and
other energy costs, fluctuating commodity prices, tax rates and general uncertainty regarding the overall future economic environment.
As global economic conditions continue to be volatile or economic uncertainty remains, trends in consumer discretionary spending also
remain unpredictable and subject to reductions due to credit constraints and uncertainties about the future. Unfavorable economic conditions
may lead consumers to delay or reduce purchases of our products. Consumer demand for our products may not reach our targets, or
may decline, when there is an economic downturn or economic uncertainty in our key markets, particularly in North America. Our sensitivity
to economic cycles and any related fluctuation in consumer demand may have a material adverse effect on our financial condition.

Our
reliance on suppliers to provide materials for and to produce our products could cause problems in our supply chain.

We
do not manufacture our products or the raw materials for them and rely instead on suppliers. Many of the specialty fabrics used in our
products are technically advanced textile products developed and manufactured by third parties and may be available, in the short-term,
from only one or a very limited number of sources. We work with a limited group of suppliers to provide the fabrics for our products.
We work with a group of approximately 2 vendors that manufacture our products. We have no long-term contracts with any of our suppliers
or manufacturing sources for the production and supply of our fabrics and garments, and we compete with other companies for fabrics,
raw materials, and production.

We
may experience, a significant disruption in the supply of fabrics or raw materials from current sources and we may be unable to locate
alternative materials suppliers of comparable quality at an acceptable price, or at all. In addition, if we experience significant increased
demand, or if we need to replace an existing supplier or manufacturer, we may be unable to locate additional supplies of fabrics or raw